Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 03, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35346 | ||
Entity Registrant Name | APTIV PLC | ||
Entity Incorporation, State or Country Code | Y9 | ||
Entity Tax Identification Number | 98-1029562 | ||
Entity Address, Address Line One | 5 Hanover Quay | ||
Entity Address, Address Line Two | Grand Canal Dock | ||
Entity Address, City or Town | Dublin | ||
Entity Address, Postal Zip Code | D02 VY79 | ||
Entity Address, Country | IE | ||
City Area Code | 353 | ||
Country Region | 1 | ||
Local Phone Number | 259-7013 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 24,055,205,443 | ||
Entity Common Stock, Shares Outstanding | 270,949,579 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement related to the 2023 Annual General Meeting of Shareholders to be filed subsequently are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001521332 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Amendment Flag | false | ||
Senior Notes, 2.396% due 2025 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 2.396% Senior Notes due 2025 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Euro-Denominated Senior Notes, 1.500% Due 2025 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.500% Senior Notes due 2025 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Euro-denominated Senior Notes, 1.600% Due 2028 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 1.600% Senior Notes due 2028 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Senior Notes, 4.350% Due 2029 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.350% Senior Notes due 2029 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Senior Notes, 3.250% due 2032 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.250% Senior Notes due 2032 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Senior Notes, 4.400% Due 2046 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.400% Senior Notes due 2046 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Senior Notes, 5.400% Due 2049 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.400% Senior Notes due 2049 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Senior Notes, 3.100% Due 2051 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 3.100% Senior Notes due 2051 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Senior Notes, 4.150% due 2052 | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 4.150% Senior Notes due 2052 | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Ordinary Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Ordinary Shares. $0.01 par value per share | ||
Trading Symbol | APTV | ||
Security Exchange Name | NYSE | ||
Preferred Shares | |||
Document Information [Line Items] | |||
Title of 12(b) Security | 5.50% Mandatory Convertible Preferred Shares, Series A, $0.01 par value per share | ||
Trading Symbol | APTV PRA | ||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | Detroit, Michigan |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 17,489 | $ 15,618 | $ 13,066 |
Operating expenses: | |||
Cost of sales | 14,854 | 13,182 | 11,126 |
Selling, general and administrative | 1,138 | 1,075 | 976 |
Amortization | 149 | 148 | 144 |
Restructuring | 85 | 24 | 136 |
Gain on autonomous driving joint venture, net | 0 | 0 | (1,434) |
Total operating expenses | 16,226 | 14,429 | 10,948 |
Operating income | 1,263 | 1,189 | 2,118 |
Interest expense | (219) | (150) | (164) |
Other expense, net | (54) | (129) | 0 |
Income before income taxes and equity loss | 990 | 910 | 1,954 |
Income tax expense | (121) | (101) | (49) |
Income before equity loss | 869 | 809 | 1,905 |
Equity loss, net of tax | (279) | (200) | (83) |
Net income | 590 | 609 | 1,822 |
Net (loss) income attributable to noncontrolling interest | (3) | 19 | 18 |
Net loss attributable to redeemable noncontrolling interest | (1) | 0 | 0 |
Net income attributable to Aptiv | 594 | 590 | 1,804 |
MCPS dividends | (63) | (63) | (35) |
Net income attributable to ordinary shareholders | $ 531 | $ 527 | $ 1,769 |
Basic net income per share: | |||
Basic | $ 1.96 | $ 1.95 | $ 6.72 |
Weighted average ordinary shares outstanding, basic | 270,900 | 270,460 | 263,430 |
Diluted net income per share: | |||
Diluted net income per share attributable to ordinary shareholders | $ 1.96 | $ 1.94 | $ 6.66 |
Weighted average number of diluted shares outstanding | 271,180 | 271,220 | 270,700 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 590 | $ 609 | $ 1,822 |
Other comprehensive (loss) income: | |||
Currency translation adjustments | (198) | (143) | 154 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | 24 | (57) | 27 |
Employee benefit plans adjustment, net of tax | 59 | 73 | (5) |
Other comprehensive (loss) income | (115) | (127) | 176 |
Comprehensive income | 475 | 482 | 1,998 |
Comprehensive (loss) income attributable to noncontrolling interest | (1) | 19 | 20 |
Comprehensive income attributable to redeemable noncontrolling interest | 475 | 463 | 1,978 |
Comprehensive income attributable to Aptiv | $ 1 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,531 | $ 3,139 |
Accounts receivable, net of allowance for doubtful accounts | 3,433 | 2,784 |
Inventories | 2,340 | 2,014 |
Other current assets | 480 | 499 |
Total current assets | 7,784 | 8,436 |
Long-term assets: | ||
Property, net | 3,495 | 3,294 |
Operating lease right-of-use assets | 451 | 383 |
Investment in affiliates | 1,723 | 1,797 |
Intangible assets, net | 2,585 | 964 |
Goodwill | 5,106 | 2,511 |
Other long-term assets | 740 | 622 |
Total long-term assets | 14,100 | 9,571 |
Total assets | 21,884 | 18,007 |
Current liabilities: | ||
Short-term debt | 31 | 8 |
Accounts payable | 3,150 | 2,953 |
Accrued liabilities | 1,684 | 1,246 |
Total current liabilities | 4,865 | 4,207 |
Long-term liabilities: | ||
Long-term debt | 6,460 | 4,059 |
Pension benefit obligations | 354 | 440 |
Long-term operating lease liabilities | 361 | 304 |
Other long-term liabilities | 750 | 436 |
Total long-term liabilities | 7,925 | 5,239 |
Total liabilities | 12,790 | 9,446 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 96 | 0 |
Shareholders' equity: | ||
Preferred shares | 0 | 0 |
Ordinary shares | 3 | 3 |
Additional paid-in-capital | 3,989 | 3,939 |
Retained earnings | 5,608 | 5,077 |
Accumulated other comprehensive loss | (791) | (672) |
Total Aptiv shareholders’ equity | 8,809 | 8,347 |
Noncontrolling interest | 189 | 214 |
Total shareholders’ equity | 8,998 | 8,561 |
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ 21,884 | $ 18,007 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 12, 2020 |
Statement of Financial Position [Abstract] | |||
Allowance for Doubtful Accounts Receivable | $ 52 | $ 37 | |
Preferred shares, par value per share (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 50,000,000 | 50,000,000 | |
Preferred shares, issued | 11,500,000 | 11,500,000 | 11,500,000 |
Preferred shares, outstanding | 11,500,000 | 11,500,000 | |
Ordinary Shares, Par or Stated Value Per Share (USD per share) | $ 0.01 | $ 0.01 | |
Ordinary shares, authorized | 1,200,000,000 | 1,200,000,000 | |
Common Stock, Shares, Issued | 270,949,579 | 270,514,140 | 15,100,000 |
Ordinary shares, outstanding | 270,949,579 | 270,514,140 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 590 | $ 609 | $ 1,822 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 613 | 625 | 620 |
Amortization | 149 | 148 | 144 |
Amortization of deferred debt issuance costs | 9 | 8 | 9 |
Restructuring expense, net of cash paid | 18 | (56) | (15) |
Deferred income taxes | (144) | (60) | (52) |
Pension and other postretirement benefit expenses | 30 | 39 | 38 |
Loss from equity method investments, net of dividends received | 284 | 206 | 92 |
Loss on modification of debt | 0 | 1 | 4 |
Loss on extinguishment of debt | 0 | 126 | 0 |
Loss on sale of assets | 1 | 0 | 3 |
Share-based compensation | 86 | 87 | 60 |
Gain on autonomous driving joint venture, net | 0 | 0 | (1,434) |
Other charges related to Ukraine/Russia conflict | 54 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (497) | 37 | (243) |
Inventories | (258) | (710) | (8) |
Other assets | 66 | 61 | 78 |
Accounts payable | 137 | 265 | 186 |
Accrued and other long-term liabilities | 142 | (110) | 173 |
Other, net | 7 | (26) | (31) |
Pension contributions | (24) | (28) | (33) |
Net cash provided by operating activities | 1,263 | 1,222 | 1,413 |
Cash flows from investing activities: | |||
Capital expenditures | (844) | (611) | (584) |
Proceeds from sale of property | 4 | 9 | 10 |
Cost of business acquisitions and other transactions, net of cash acquired | (4,310) | (130) | (49) |
Proceeds from sale of technology investments | 3 | 22 | 0 |
Cost of technology investments | (42) | (2) | (2) |
Settlement of derivatives | 7 | (17) | (1) |
Net cash used in investing activities | (5,182) | (729) | (626) |
Cash flows from financing activities: | |||
Net repayments under other short-term debt agreements | (1) | (22) | (372) |
Net repayments under other long-term debt agreements | (4) | (8) | (39) |
Repayment of senior notes | 0 | (1,473) | 0 |
Proceeds from issuance of senior notes, net of issuance costs | 2,472 | 1,450 | 0 |
Fees related to modification of debt agreements | 0 | (6) | (18) |
Proceeds from the public offering of ordinary shares, net of issuance costs | 0 | 0 | 1,115 |
Proceeds from the public offering of preferred shares, net of issuance costs | 0 | 0 | 1,115 |
Contingent consideration payments | 0 | (24) | 0 |
Dividend payments of consolidated affiliates to minority shareholders | (9) | 0 | (10) |
Repurchase of ordinary shares | 0 | 0 | (57) |
Distribution of mandatory convertible preferred share cash dividends | (63) | (63) | (32) |
Distribution of ordinary share cash dividends | 0 | 0 | (56) |
Taxes withheld and paid on employees’ restricted share awards | (36) | (45) | (33) |
Net cash provided by (used in) financing activities | 2,359 | (191) | 1,613 |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (24) | (16) | 24 |
(Decrease) increase in cash, cash equivalents and restricted cash | (1,584) | 286 | 2,424 |
Cash, cash equivalents and restricted cash at beginning of the year | 3,139 | 2,853 | 429 |
Cash, cash equivalents and restricted cash at end of the year | 1,555 | 3,139 | 2,853 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | |||
Cash, cash equivalents and restricted cash | 1,531 | 3,139 | 2,853 |
Cash classified as assets held for sale | 24 | 0 | 0 |
Total cash, cash equivalents and restricted cash | $ 1,555 | $ 3,139 | $ 2,853 |
Consolidated Statement Of Share
Consolidated Statement Of Shareholders' Equity - USD ($) $ in Millions | Total | Ordinary Shares | Preferred Shares | Redeemable Noncontrolling Interest | Ordinary Shares | Preferred Shares | Additional Paid in Capital | Additional Paid in Capital Ordinary Shares | Additional Paid in Capital Preferred Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Total Aptiv Shareholders’ Equity | Total Aptiv Shareholders’ Equity Ordinary Shares | Total Aptiv Shareholders’ Equity Preferred Shares | Noncontrolling Interest |
Redeemable noncontrolling interest | $ 0 | ||||||||||||||
Balance at Dec. 31, 2019 | $ 4,011 | $ 3 | $ 0 | $ 1,645 | $ 2,890 | $ (719) | $ 3,819 | $ 192 | |||||||
Balance, shares at Dec. 31, 2019 | 255,000,000 | 0 | |||||||||||||
Net income | 1,804 | 1,804 | 1,804 | ||||||||||||
Net income (loss) attributable to noncontrolling interest | 174 | 174 | 174 | ||||||||||||
Net (loss) income attributable to noncontrolling interest | 18 | 18 | |||||||||||||
Other comprehensive income attributable to noncontrolling interest | 2 | 2 | |||||||||||||
Dividends on ordinary shares | (56) | 1 | (57) | (56) | |||||||||||
Dividend payments of consolidated affiliates to minority shareholders | (17) | (17) | |||||||||||||
Mandatory convertible preferred share cumulative dividends | (35) | 35 | 35 | ||||||||||||
Taxes withheld on employees’ restricted share award vestings | $ (33) | (33) | (33) | ||||||||||||
Repurchase of ordinary shares, shares | (1,059,075) | (1,000,000) | |||||||||||||
Repurchase of ordinary shares | $ (57) | (6) | (51) | (57) | |||||||||||
Issuance of ordinary shares, shares | 15,000,000 | 12,000,000 | |||||||||||||
Issuance of shares | $ 1,115 | $ 1,115 | $ 1,115 | $ 1,115 | $ 1,115 | $ 1,115 | |||||||||
Share-based compensation, share | 1,000,000 | ||||||||||||||
Share-based compensation | 60 | 60 | 60 | ||||||||||||
Adjustment for recently adopted accounting pronouncements | (1) | (1) | (1) | ||||||||||||
Balance, shares at Dec. 31, 2020 | 270,000,000 | 12,000,000 | |||||||||||||
Balance at Dec. 31, 2020 | 8,100 | $ 3 | $ 0 | 3,897 | 4,550 | (545) | 7,905 | 195 | |||||||
Redeemable noncontrolling interest | 0 | ||||||||||||||
Net income | 590 | 590 | 590 | ||||||||||||
Net income (loss) attributable to noncontrolling interest | (127) | (127) | (127) | ||||||||||||
Net (loss) income attributable to noncontrolling interest | 19 | 19 | |||||||||||||
Mandatory convertible preferred share cumulative dividends | (63) | (63) | 63 | 63 | |||||||||||
Taxes withheld on employees’ restricted share award vestings | (45) | (45) | (45) | ||||||||||||
Share-based compensation, share | 1,000,000 | ||||||||||||||
Share-based compensation | 87 | 87 | 87 | ||||||||||||
Balance, shares at Dec. 31, 2021 | 271,000,000 | 12,000,000 | |||||||||||||
Balance at Dec. 31, 2021 | 8,561 | $ 3 | $ 0 | 3,939 | 5,077 | (672) | 8,347 | 214 | |||||||
Redeemable noncontrolling interest | 0 | 0 | |||||||||||||
Net income | 594 | 594 | 594 | ||||||||||||
Net income (loss) attributable to noncontrolling interest | (119) | (119) | (119) | ||||||||||||
Net (loss) income attributable to noncontrolling interest | (3) | (1) | (3) | ||||||||||||
Other comprehensive income attributable to noncontrolling interest | 2 | 2 | 2 | ||||||||||||
Dividend payments of consolidated affiliates to minority shareholders | (24) | (24) | |||||||||||||
Mandatory convertible preferred share cumulative dividends | (63) | $ (63) | 63 | 63 | |||||||||||
Taxes withheld on employees’ restricted share award vestings | (36) | (36) | (36) | ||||||||||||
Share-based compensation, share | 0 | ||||||||||||||
Share-based compensation | 86 | 86 | 86 | ||||||||||||
Acquired redeemable noncontrolling interest | 95 | ||||||||||||||
Balance, shares at Dec. 31, 2022 | 271,000,000 | 12,000,000 | |||||||||||||
Balance at Dec. 31, 2022 | 8,998 | $ 3 | $ 0 | $ 3,989 | $ 5,608 | $ (791) | $ 8,809 | $ 189 | |||||||
Redeemable noncontrolling interest | $ 96 | $ 96 |
General
General | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL General and basis of presentation —“Aptiv,” the “Company,” “we,” “us” and “our” refer to Aptiv PLC (formerly known as Delphi Automotive PLC), a public limited company formed under the laws of Jersey on May 19, 2011, which completed an initial public offering on November 22, 2011, and its consolidated subsidiaries. The Company’s ordinary shares are publicly traded on the New York Stock Exchange under the symbol “APTV.” The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Nature of operations —Aptiv is a leading global technology and mobility architecture company primarily serving the automotive sector. We deliver end-to-end mobility solutions enabling our customers' transition to more electrified, software-defined vehicles. We design and manufacture vehicle components and provide electrical, electronic and active safety technology solutions to the global automotive and commercial vehicle markets. Aptiv is one of the largest vehicle technology suppliers and our customers include the 25 largest automotive original equipment manufacturers (“OEMs”) in the world. Aptiv operates 131 major manufacturing facilities and 11 major technical centers utilizing a regional service model that enables the Company to efficiently and effectively serve its global customers from best cost countries. Aptiv has a presence in 48 countries and has approximately 22,000 scientists, engineers and technicians focused on developing market relevant product solutions for its customers. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Consolidation —The consolidated financial statements include the accounts of Aptiv and the subsidiaries in which Aptiv holds a controlling financial or management interest and variable interest entities of which Aptiv has determined that it is the primary beneficiary. Aptiv’s share of the earnings or losses of non-controlled affiliates, over which Aptiv exercises significant influence (generally a 20% to 50% ownership interest), is included in the consolidated operating results using the equity method of accounting. When Aptiv does not have the ability to exercise significant influence (generally when ownership interest is less than 20%), investments in non-consolidated affiliates without readily determinable fair value are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer, while investments in publicly traded equity securities are measured at fair value based on quoted prices for identical assets on active market exchanges as of each reporting date. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss is recorded, which is measured as the difference between carrying value and estimated fair value. Estimated fair value is generally determined using an income approach based on discounted cash flows or negotiated transaction values. Intercompany transactions and balances between consolidated Aptiv businesses have been eliminated. During the years ended December 31, 2022, 2021 and 2020, Aptiv received dividends of $5 million, $6 million and $9 million, respectively, from one of its equity method investments. The dividends were recognized as a reduction to the investment and represented a return on investment in cash flows from operating activities. Aptiv's equity investments without readily determinable fair value totaled $67 million and $30 million as of December 31, 2022 and 2021, respectively, and are classified within other long-term assets in the consolidated balance sheets. Aptiv's investments in publicly traded equity securities totaled $17 million and $66 million as of December 31, 2022 and 2021, respectively, and are classified within other long-term assets in the consolidated balance sheet. Refer to Note 5. Investments in Affiliates for further information regarding Aptiv's equity investments. In 2022, the Company acquired 85% of the equity interests of Intercable Automotive Solutions (“Intercable Automotive”). Concurrent with the acquisition, the Company entered into an agreement with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 15% of Intercable Automotive for cash at a contractually defined value beginning in 2026. As a result of this redemption feature, the Company recorded the redeemable noncontrolling interest at its acquisition-date fair value to temporary equity in the consolidated balance sheet. The redeemable noncontrolling interest is adjusted each reporting period for the income (loss) attributable to the noncontrolling interest, and for any measurement period adjustments necessary to record the redeemable noncontrolling interest at the higher of its redemption value, assuming it was redeemable at the reporting date, or its carrying value. Any measurement period adjustments are recorded to retained earnings, with a corresponding increase or reduction to net income attributable to Aptiv. Refer to Note 20. Acquisitions and Divestitures for further information regarding this acquisition and the redeemable noncontrolling interest. Use of estimates —Preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect amounts reported therein. Generally, matters subject to estimation and judgment include amounts related to accounts receivable realization, inventory obsolescence, asset impairments, useful lives of intangible and fixed assets, deferred tax asset valuation allowances, income taxes, pension benefit plan assumptions, accruals related to litigation, warranty costs, environmental remediation costs, contingent consideration arrangements, redeemable noncontrolling interest, worker’s compensation accruals and healthcare accruals. Due to the inherent uncertainty involved in making estimates, including the duration and severity of the impacts of the ongoing global supply chain disruptions and the conflict between Ukraine and Russia, actual results reported in future periods may be based upon amounts that differ from those estimates. Revenue recognition —Revenue is measured based on consideration specified in a contract with a customer. Customer contracts for production parts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. Customer contracts for software licenses are generally represented by a sales contract or purchase order. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue from software licenses is generally recognized at a point in time upon delivery while revenue from post delivery support and maintenance for software contracts are recognized over time on a ratable basis over the contract term. From time to time, Aptiv enters into pricing agreements with its customers that provide for price reductions, some of which are conditional upon achieving certain joint cost saving targets. In these instances, revenue is recognized based on the agreed-upon price at the time of shipment. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. In addition, from time to time, Aptiv makes payments to customers in conjunction with ongoing business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, or upfront fees, meet the criteria to be considered a cost to obtain a contract as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. Aptiv collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with a revenue-producing transaction between the Company and the Company’s customers. These taxes may include, but are not limited to, sales, use, value-added, and some excise taxes. Aptiv reports the collection of these taxes on a net basis (excluded from revenues). Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in cost of sales. Refer to Note 24. Revenue for further information. Net income per share —Basic net income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock and if-converted methods. The if-converted method is used to determine if the impact of conversion of the 5.50% Mandatory Convertible Preferred Shares, Series A, $0.01 par value per share (the “MCPS”) into ordinary shares is more dilutive than the MCPS dividends to net income per share. If so, the MCPS are assumed to have been converted at the later of the beginning of the period or the time of issuance, and the resulting ordinary shares are included in the denominator and the MCPS dividends are added back to the numerator. Unless otherwise noted, share and per share amounts included in these notes are on a diluted basis. Refer to Note 15. Shareholders’ Equity and Net Income Per Share for additional information including the calculation of basic and diluted net income per share. Research and development —Costs are incurred in connection with research and development programs that are expected to contribute to future earnings. Such costs are charged against income as incurred. Total research and development expenses, including engineering, net of customer reimbursements, were approximately $1,120 million, $1,030 million and $1,024 million for the years ended December 31, 2022, 2021 and 2020, respectively. Cash and cash equivalents —Cash and cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less, for which the book value approximates fair value. Accounts receivable —Aptiv enters into agreements to sell certain of its accounts receivable, primarily in Europe. Sales of receivables are accounted for in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 860, Transfers and Servicing (“ASC 860”). Agreements which result in true sales of the transferred receivables, as defined in ASC 860, which occur when receivables are transferred without recourse to the Company, are excluded from amounts reported in the consolidated balance sheets. Cash proceeds received from such sales are included in operating cash flows. Agreements that allow Aptiv to maintain effective control over the transferred receivables and which do not qualify as a sale, as defined in ASC 860, are accounted for as secured borrowings and recorded in the consolidated balance sheets within accounts receivable, net and short-term debt. The expenses associated with receivables factoring are recorded in the consolidated statements of operations within interest expense. The Company exchanges certain amounts of accounts receivable, primarily in the Asia Pacific region, for bank notes with original maturities greater than three months. The collection of such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. Bank notes held by the Company with original maturities of three months or less are classified as cash and cash equivalents within the consolidated balance sheets, and those with original maturities of greater than three months are classified as notes receivable within other current assets. The Company may hold such bank notes until maturity, exchange them with suppliers to settle liabilities, or sell them to third-party financial institutions in exchange for cash. Credit losses —Aptiv is exposed to credit losses primarily through the sale of vehicle components and services. Aptiv assesses the creditworthiness of a counterparty by conducting ongoing credit reviews, which considers the Company’s expected billing exposure and timing for payment, as well as the counterparty’s established credit rating. When a credit rating is not available, the Company’s assessment is based on an analysis of the counterparty’s financial statements. Aptiv also considers contract terms and conditions, country and political risk, and business strategy in its evaluation. Based on the outcome of this review, the Company establishes a credit limit for each counterparty. The Company continues to monitor its ongoing credit exposure through active review of counterparty balances against contract terms and due dates, which includes timely account reconciliation, payment confirmation and dispute resolution. The Company may also employ collection agencies and legal counsel to pursue recovery of defaulted receivables, if necessary. Aptiv primarily utilizes historical loss and recovery data, combined with information on current economic conditions and reasonable and supportable forecasts to develop the estimate of the allowance for doubtful accounts in accordance with ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”). As of December 31, 2022 and December 31, 2021, the Company reported $3,433 million and $2,784 million, respectively, of accounts receivable, net of the allowances, which includes the allowance for doubtful accounts of $52 million and $37 million, respectively. The provision for doubtful accounts was $27 million, $22 million, and $39 million for the years ended December 31, 2022, 2021 and 2020, respectively. Other changes in the allowance were not material for the year ended December 31, 2022. Inventories —As of December 31, 2022 and 2021, inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value, including direct material costs and direct and indirect manufacturing costs. Refer to Note 3. Inventories for additional information. Obsolete inventory is identified based on analysis of inventory for known obsolescence issues, and, generally, the market value of inventory on hand in excess of one year’s supply is fully-reserved. From time to time, payments may be received from suppliers. These payments from suppliers are recognized as a reduction of the cost of the material acquired during the period to which the payments relate. In some instances, supplier rebates are received in conjunction with or concurrent with the negotiation of future purchase agreements and these amounts are amortized over the prospective agreement period. Property —Major improvements that materially extend the useful life of property are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred. Depreciation is determined based on a straight-line method over the estimated useful lives of groups of property. Leasehold improvements under finance leases are depreciated over the period of the lease or the life of the property, whichever is shorter. Refer to Note 6. Property, Net and Note 25. Leases for additional information. Pre-production costs related to long-term supply agreements —The Company incurs pre-production engineering, development and tooling costs related to products produced for its customers under long-term supply agreements. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. As of December 31, 2022 and 2021, $250 million and $286 million of such contractually reimbursable costs were capitalized, respectively. These amounts are recorded within other current and other long-term assets in the consolidated balance sheets, as further detailed in Note 4. Assets. Special tools represent Aptiv-owned tools, dies, jigs and other items used in the manufacture of customer components that will be sold under long-term supply arrangements, the costs of which are capitalized within property, plant and equipment if the Company has title to the assets. Special tools also include capitalized unreimbursed pre-production tooling costs related to customer-owned tools for which the customer has provided Aptiv a non-cancellable right to use the tool. Aptiv-owned special tool balances are depreciated over the expected life of the special tool or the life of the related vehicle program, whichever is shorter. The unreimbursed costs incurred related to customer-owned special tools that are not subject to reimbursement are capitalized and depreciated over the expected life of the special tool or the life of the related vehicle program, whichever is shorter. At December 31, 2022 and 2021, the special tools balance, net of accumulated depreciation, was $437 million and $405 million, respectively, included within property, net in the consolidated balance sheets. As of December 31, 2022 and 2021, the Aptiv-owned special tools balance was $350 million and $303 million, respectively, and the customer-owned special tools balance was $87 million and $102 million, respectively. Valuation of long-lived assets —The carrying value of long-lived assets held for use, including definite-lived intangible assets, is periodically evaluated when events or circumstances warrant such a review. The carrying value of a long-lived asset held for use is considered impaired when the anticipated separately identifiable undiscounted cash flows from the asset are less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset. Impairment losses on long-lived assets held for sale are recognized if the carrying value of the asset is in excess of the asset’s estimated fair value, reduced for the cost to dispose of the asset. Fair value of long-lived assets is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved (an income approach), and in certain situations Aptiv’s review of appraisals (a market approach). Refer to Note 6. Property, Net and Note 7. Intangible Assets and Goodwill for additional information. Leases —The Company accounts for leases in accordance with FASB ASC Topic 842, Leases . The Company determines whether an arrangement is a lease at inception. For leases where the Company is the lessee, a lease liability and a right-of-use asset is recognized for all leases, with the exception of short-term leases with terms of twelve months or less. The lease liability represents the lessee’s obligation to make lease payments arising from a lease, and is measured as the present value of the lease payments. As the rate implicit in the lease is usually not known at lease commencement, the Company uses its incremental borrowing rate to discount the lease obligation. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and is measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the Company’s initial direct costs. The Company applies the short-term lease exception, which results in a single lease cost being allocated over the lease term, generally on a straight-line basis, for leases with a term of twelve months or less. These leases are not presented in the consolidated balance sheets. Additionally, the Company applies the practical expedient to not separate lease components from non-lease components and instead accounts for both as a single lease component for all asset classes. Refer to Note 25. Leases for additional information. Assets and liabilities held for sale —The Company considers assets to be held for sale when management, having the appropriate authority, approves and commits to a formal plan to actively market the assets for sale at a price reasonable in relation to their estimated fair value, the assets are available for immediate sale in their present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the assets is probable and expected to be completed within one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, the Company records the assets at the lower of their carrying value or their estimated fair value, less cost to sell, and ceases to record depreciation expense on the assets. Assets and liabilities of a discontinued operation are reclassified as held for sale for all comparative periods presented in the consolidated balance sheets. For assets that meet the held for sale criteria but do not meet the definition of a discontinued operation, the Company reclassifies the assets and liabilities in the period in which the held for sale criteria are met, but does not reclassify prior period amounts. Intangible assets —The Company amortizes definite-lived intangible assets over their estimated useful lives. The Company has definite-lived intangible assets related to patents and developed technology, customer relationships and trade names. Indefinite-lived in-process research and development intangible assets are not amortized, but are tested for impairment annually, or more frequently when indicators of potential impairment exist, until the completion or abandonment of the associated research and development efforts. Upon completion of the projects, the assets will be amortized over the expected economic life of the asset, which will be determined on that date. Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense. The Company also has intangible assets related to acquired trade names that are classified as indefinite-lived when there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. These indefinite-lived trade name assets are tested for impairment annually, or more frequently when indicators of potential impairment exist. Costs to renew or extend the term of acquired intangible assets are recognized as expense as incurred. No intangible asset impairment charges were recorded during the years ended December 31, 2022, 2021 and 2020. Refer to Note 7. Intangible Assets and Goodwill for additional information. Goodwill —Goodwill is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations. The Company tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment exist. The Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company tests for goodwill impairment at the reporting unit level. Our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The impairment test involves first qualitatively assessing goodwill for impairment. If the qualitative assessment is not met the Company then performs a quantitative assessment by comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the estimated fair value exceeds carrying value, then we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its estimated fair value, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the amount of goodwill allocated to the reporting unit. Refer to Note 20. Acquisitions and Divestitures, for further information on the goodwill attributable to the Company’s acquisitions. Goodwill impairment —In the fourth quarter of 2022, 2021 and 2020, the Company completed a qualitative goodwill impairment assessment, and after evaluating the results, events and circumstances of the Company, we concluded that sufficient evidence existed to assert qualitatively that it was more likely than not that the estimated fair value of each reporting unit remained in excess of its carrying values. Therefore, a quantitative impairment assessment was not necessary. No goodwill impairments were recorded in 2022, 2021 or 2020. Refer to Note 7. Intangible Assets and Goodwill for additional information. Warranty and product recalls —Expected warranty costs for products sold are recognized at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of our warranty accrual at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Refer to Note 9. Warranty Obligations for additional information. Income taxes —Deferred tax assets and liabilities reflect temporary differences between the amount of assets and liabilities for financial and tax reporting purposes. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines it is more likely than not that the deferred tax assets will not be realized in the future, the valuation allowance adjustment to the deferred tax assets will be charged to earnings in the period in which the Company makes such a determination. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. As it relates to changes in accumulated other comprehensive income (loss), the Company’s policy is to release tax effects from accumulated other comprehensive income (loss) when the underlying components affect earnings. Refer to Note 14. Income Taxes for additional information. Foreign currency translation —Assets and liabilities of non-U.S. subsidiaries that use a currency other than U.S. dollars as their functional currency are translated to U.S. dollars at end-of-period currency exchange rates. The consolidated statements of operations of non-U.S. subsidiaries are translated to U.S. dollars at average-period currency exchange rates. The effect of translation for non-U.S. subsidiaries is generally reported in other comprehensive income (“OCI”). The accumulated foreign currency translation adjustment related to an investment in a foreign subsidiary is reclassified to net income upon sale or upon complete or substantially complete liquidation of the respective entity. The effect of remeasurement of assets and liabilities of non-U.S. subsidiaries that use the U.S. dollar as their functional currency is primarily included in cost of sales. Also included in cost of sales are gains and losses arising from transactions denominated in a currency other than the functional currency of a particular entity. Net foreign currency transaction losses of $30 million were included in the consolidated statements of operations for the year ended December 31, 2022. There were no net foreign currency transaction gains or losses for the year ended December 31, 2021. Net foreign currency transaction losses of $20 million were included in the consolidated statements of operations for the year ended December 31, 2020. Restructuring —Aptiv continually evaluates alternatives to align the business with the changing needs of its customers and to lower operating costs. This includes the realignment of its existing manufacturing capacity, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements or statutory requirements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination. Contract termination costs and certain early termination lease costs are recorded when contracts are terminated. All other exit costs are expensed as incurred. Refer to Note 10. Restructuring for additional information. Customer concentrations —As reflected in the table below, net sales to General Motors (“GM”), Stellantis N.V. (“Stellantis”), Ford Motor Company (“Ford”) and Volkswagen Group (“VW”), Aptiv’s four largest customers, totaled approximately 34%, 35% and 38% of our total net sales for the years ended December 31, 2022, 2021 and 2020, respectively. Both of Aptiv’s operating segments recognized net sales to these customers during each period presented. Percentage of Total Net Sales Accounts Receivable Year Ended December 31, December 31, December 31, 2022 2021 2020 (in millions) GM 9 % 8 % 9 % $ 231 $ 208 Stellantis (1) 9 % 11 % 12 % 325 317 Ford 8 % 7 % 7 % 250 220 VW 8 % 9 % 10 % 186 163 (1) On January 16, 2021, Fiat Chrysler Automobiles N.V. (“FCA”) and Peugeot Citroën (“PSA”) merged to form Stellantis. Net sales to FCA and PSA before the date of the merger are included in net sales to Stellantis in the table above for the years ended December 31, 2021 and 2020. Derivative financial instruments —All derivative instruments are required to be reported on the balance sheet at fair value unless the transactions qualify and are designated as normal purchases or sales. Changes in fair value are reported currently through earnings unless they meet hedge accounting criteria. Exposure to fluctuations in currency exchange rates, interest rates and certain commodity prices are managed by entering into a variety of forward and option contracts and swaps with various counterparties. Such financial exposures are managed in accordance with the policies and procedures of Aptiv. Aptiv does not enter into derivative transactions for speculative or trading purposes. As part of the hedging program approval process, Aptiv identifies the specific financial risk which the derivative transaction will minimize, the appropriate hedging instrument to be used to reduce the risk and the correlation between the financial risk and the hedging instrument. Purchase orders, sales contracts, letters of intent, capital planning forecasts and historical data are used as the basis for determining the anticipated values of the transactions to be hedged. Aptiv does not enter into derivative transactions that do not have a high correlation with the underlying financial risk. Hedge positions, as well as the correlation between the transaction risks and the hedging instruments, are reviewed on an ongoing basis. Foreign exchange forward contracts are accounted for as hedges of firm or forecasted foreign currency commitments or foreign currency exposure of the net investment in certain foreign operations to the extent they are designated and assessed as highly effective. All foreign exchange contracts are marked to market on a current basis. Commodity swaps are accounted for as hedges of firm or anticipated commodity purchase contracts to the extent they are designated and assessed as effective. All other commodity derivative contracts that are not designated as hedges are either marked to market on a current basis or are exempted from mark to market accounting as normal purchases. At December 31, 2022 and 2021, the Company’s exposure to movements in interest rates was not hedged with derivative instruments. Refer to Note 17. Derivatives and Hedging Activities and Note 18. Fair Value of Financial Instruments for additional information. Extended disability benefits —Costs associated with extended disability benefits provided to inactive employees are accrued throughout the duration of their active employment. Workforce demographic data and historical experience are utilized to develop projections of time frames and related expense for post-employment benefits. Workers’ compensation benefits —Workers’ compensation benefit accruals are actuarially determined and are subject to the existing workers’ compensation laws that vary by location. Accruals for workers’ compensation benefits represent the discounted future cash expenditures expected during the period between the incidents necessitating the employees to be idled and the time when such employees return to work, are eligible for retirement or otherwise terminate their employment. Share-based compensation —The Company’s share-based compensation arrangement |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value, including direct material costs and direct and indirect manufacturing costs. A summary of inventories is shown below: December 31, December 31, (in millions) Productive material $ 1,570 $ 1,311 Work-in-process 164 172 Finished goods 606 531 Total $ 2,340 $ 2,014 |
Assets
Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Assets | ASSETS Other current assets consisted of the following: December 31, December 31, (in millions) Value added tax receivable $ 167 $ 178 Prepaid insurance and other expenses 75 63 Reimbursable engineering costs 90 110 Notes receivable 8 16 Income and other taxes receivable 40 54 Deposits to vendors 7 6 Derivative financial instruments (Note 17) 44 38 Capitalized upfront fees (Note 24) 17 34 Contract assets (Note 24) 24 — Other 8 — Total $ 480 $ 499 Other long-term assets consisted of the following: December 31, December 31, (in millions) Deferred income taxes, net (Note 14) $ 259 $ 159 Unamortized Revolving Credit Facility debt issuance costs 8 11 Income and other taxes receivable 30 28 Reimbursable engineering costs 160 176 Value added tax receivable 2 20 Equity investments (Note 5) 84 96 Derivative financial instruments (Note 17) 14 3 Capitalized upfront fees (Note 24) 61 58 Contract assets (Note 24) 43 — Other 79 71 Total $ 740 $ 622 |
Investments in Affiliates
Investments in Affiliates | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliates | INVESTMENTS IN AFFILIATES Equity Method Investments As part of Aptiv’s operations, it has investments in five non-consolidated affiliates accounted for under the equity method of accounting. These affiliates are not publicly traded companies and are located primarily in North America, Europe and Asia Pacific. Aptiv’s ownership percentages vary generally from approximately 20% to 50%, with the most significant investments being in Motional AD LLC (“Motional”) (of which Aptiv owns 50%), TTTech Auto AG (“TTTech Auto”) (of which Aptiv owns approximately 20%) and in Promotora de Partes Electricas Automotrices, S.A. de C.V. (of which Aptiv owns approximately 40%). Refer to Note 20. Acquisitions and Divestitures for additional information on the formation of Motional. The Company’s aggregate investments in affiliates was $1,723 million and $1,797 million at December 31, 2022 and 2021, respectively. Dividends of $5 million, $6 million and $9 million for the years ended December 31, 2022, 2021 and 2020, respectively, have been received from these non-consolidated affiliates. No impairment charges were recorded for the years ended December 31, 2022, 2021 and 2020. Motional was deemed a significant equity investee under Rule 3-09 of Regulation S-X for the year ended December 31, 2022. Accordingly, separate audited financial statements of Motional have been included as Exhibit 99.1 in Part IV Item 15 of this Annual Report on Form 10-K. The following is a summary of the combined financial information of significant affiliates accounted for under the equity method as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020: December 31, 2022 2021 (in millions) Current assets $ 1,059 $ 794 Non-current assets 2,672 3,163 Total assets $ 3,731 $ 3,957 Current liabilities $ 252 $ 194 Non-current liabilities 87 112 Shareholders’ equity 3,392 3,651 Total liabilities and shareholders’ equity $ 3,731 $ 3,957 Year Ended December 31, 2022 2021 2020 (in millions) Net sales $ 761 $ 599 $ 553 Gross loss (357) (244) (71) Net loss (589) (393) (154) A summary of transactions with affiliates is shown below: Year Ended December 31, 2022 2021 2020 (in millions) Sales to affiliates $ 35 $ 30 $ 7 Purchases from affiliates 18 19 32 A summary of amounts recorded in the Company’s consolidated balance sheets related to its affiliates is shown below: December 31, 2022 2021 (in millions) Receivables due from affiliates $ 8 $ 11 Payables due to affiliates 18 20 Motional Cybersecurity Incident In October 2022, Motional experienced a cybersecurity incident involving unauthorized access to, and theft of data from, certain Motional systems. Upon discovering the unauthorized activity, Motional took immediate action, including terminating the unauthorized access and pausing certain operations. With assistance from forensic information technology firms and legal counsel, Motional conducted an investigation of the incident, communicated with law enforcement authorities regarding this matter, subsequently resumed its testing operations and determined that the incident did not have a material impact to its operations or financial results and financial condition. Investment in TTTech Auto AG On March 15, 2022, Aptiv acquired approximately 20% of the equity interests of TTTech Auto, a leading provider of safety-critical middleware solutions for advanced driver-assistance systems and autonomous driving applications, for €200 million (approximately $220 million, using foreign currency rates on the investment date). The Company made the investment in TTTech Auto utilizing cash on hand. The carrying value of the Company’s investment in TTTech Auto was $205 million as of December 31, 2022, which is included in the Advanced Safety and User Experience segment. As of December 31, 2022, the difference between the amount at which the Company’s investment is carried and the amount of the Company’s share of the underlying equity in net assets of TTTech Auto was approximately $151 million. The basis difference is primarily attributable to equity method goodwill associated with the investment, which is not amortized. Technology Investments The Company has made technology investments in certain non-consolidated affiliates for ownership interests of less than 20% (where Aptiv does not have the ability to exercise significant influence) as described in Note 2. Significant Accounting Policies. Certain of these investments do not have readily determinable fair values and are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer. The Company also holds technology investments in publicly traded equity securities. These investments are measured at fair value based on quoted prices for identical assets on active market exchanges. The following is a summary of technology investments, which are classified within other long-term assets in the consolidated balance sheets, as of December 31, 2022 and 2021: December 31, Investment Name Segment 2022 2021 (in millions) Equity investments without readily determinable fair values: StradVision, Inc. Advanced Safety and User Experience $ 40 $ — LeddarTech, Inc. Advanced Safety and User Experience 19 19 Quanergy Systems, Inc (1) Advanced Safety and User Experience — 6 Other investments Various 8 5 Total equity investments without readily determinable fair values 67 30 Publicly traded equity securities: Smart Eye AB Advanced Safety and User Experience 2 11 Otonomo Technologies Ltd. Advanced Safety and User Experience 4 39 Valens Semiconductor Ltd. Signal and Power Solutions 11 16 Total publicly traded equity securities 17 66 Total investments $ 84 $ 96 (1) Quanergy Systems, Inc. experienced a change in measurement basis due to an underlying transaction during the year ended December 31, 2022 and we liquidated our entire investment in the company after the transaction during the year ended December 31, 2022. See below for further details on the transaction. In May 2022, the Company’s Advanced Safety and User Experience segment made an investment totaling 50 billion South Korean Won (approximately $40 million, using foreign currency rates on the investment date) in StradVision, Inc., a provider of deep learning-based camera perception software for automotive applications. In February 2022, Quanergy Systems, Inc. (“Quanergy”) merged with a publicly traded special purpose acquisition company (“SPAC”) and shares of Quanergy began trading on the NYSE under the symbol QNGY. As part of the SPAC merger, our preferred shares in Quanergy were converted into Quanergy ordinary shares. During the remainder of 2022, the Company sold all of its Quanergy ordinary shares for net proceeds of approximately $3 million. The Company’s Advanced Safety and User Experience segment had previously made a $3 million investment in Quanergy during 2016, which was in addition to the Company’s $3 million investment made during 2015. In September 2021, Valens Semiconductor Ltd. (“Valens”) merged with a publicly traded SPAC and shares of Valens began trading on the NYSE under the symbol VLN. As part of the SPAC merger, our preferred shares in Valens were converted into Valens ordinary shares. In August 2021, Otonomo Technologies Ltd. (“Otonomo”) merged with a publicly traded SPAC and shares of Otonomo began trading on the Nasdaq Capital Market under the symbol OTMO. As part of the SPAC merger, our preferred shares in Otonomo were converted into Otonomo ordinary shares. During the second half of 2021, the Company sold a portion of its Otonomo ordinary shares for net proceeds of approximately $3 million. The Company’s Advanced Safety and User Experience segment had previously made a $3 million investment in Otonomo during 2019, which was in addition to the Company’s $15 million investment made during 2017. In June 2021, Affectiva, Inc. (“Affectiva”) was acquired by Smart Eye AB (“Smart Eye”), which is publicly traded on the Nasdaq Stockholm AB stock exchange. As part of the acquisition, Aptiv received shares of Smart Eye in exchange for Aptiv’s Affectiva preferred shares. In April 2021, Innoviz Technologies (“Innoviz”) merged with a publicly traded SPAC and shares of Innoviz began trading on the Nasdaq Capital Market under the symbol INVZ. As part of the SPAC merger, our preferred shares in Innoviz were converted into Innoviz ordinary shares. During the second half of 2021, the Company sold all of its Innoviz ordinary shares for net proceeds of approximately $18 million. The Company’s Advanced Safety and User Experience segment had previously made a $15 million investment in Innoviz during 2017. Following each of the transactions described above for Quanergy, Valens, Otonomo, Smart Eye and Innoviz, the fair value of each respective investment is measured on a recurring basis, with changes in fair value recorded to other income (expense), net. Certain of the equity securities measured at fair value disclosed above are subject to contractual sale restrictions which prohibit the sale of the security over contractually defined periods of time. The fair value of equity securities with contractual sale restrictions was approximately $1 million as of December 31, 2022. These contractual sale restrictions will fully expire during the next twelve months as of December 31, 2022. During the year ended December 31, 2021, the Company’s investment in LeddarTech, Inc., was remeasured to a fair value of $19 million, based on a subsequent round of financing observed for identical or similar investments of the same issuer. As a result, the Company recorded a pre-tax unrealized gain of $9 million to other income, net during the year ended December 31, 2021. During the year ended December 31, 2020, the Company’s investment in Innoviz, while being classified as an equity investment without readily determinable fair value, was remeasured to a fair value of $25 million, based on a subsequent round of financing observed for identical or similar investments of the same issuer. As a result, the Company recorded a pre-tax unrealized gain of $10 million to other income, net during the year ended December 31, 2020. There were no other material transactions, events or changes in circumstances requiring an impairment or an observable price change adjustment to our investments without readily determinable fair value. The Company continues to monitor these investments to identify potential transactions which may indicate an impairment or an observable price change requiring an adjustment to its carrying value. |
Property, Net
Property, Net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment Disclosure | PROPERTY, NET Property, net consisted of: Estimated Useful December 31, 2022 2021 (Years) (in millions) Land — $ 79 $ 82 Land and leasehold improvements 3-20 200 186 Buildings 40 699 679 Machinery, equipment and tooling 3-20 5,263 4,899 Furniture and office equipment 3-10 871 802 Construction in progress — 463 365 Total 7,575 7,013 Less: accumulated depreciation (4,080) (3,719) Total property, net $ 3,495 $ 3,294 For the years ended December 31, 2022, 2021 and 2020, Aptiv recorded non-cash asset impairment charges of $8 million, $2 million and $10 million, respectively, in cost of sales As of December 31, 2022, 2021 and 2020, capital expenditures recorded in accounts payable totaled $300 million, $280 million and $164 million, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure | INTANGIBLE ASSETS AND GOODWILL The changes in the carrying amount of intangible assets and goodwill were as follows as of December 31, 2022 and 2021. See Note 20. Acquisitions and Divestitures for a further description of the goodwill and intangible assets resulting from Aptiv’s acquisitions in 2022 and 2021. As of December 31, 2022 As of December 31, 2021 Estimated Useful Gross Accumulated Net Gross Accumulated Net (Years) (in millions) (in millions) Amortized intangible assets: Patents and developed technology 3-16 $ 1,504 $ 551 $ 953 $ 673 $ 506 $ 167 Customer relationships 9-22 1,981 661 1,320 1,186 578 608 Trade names 15-20 206 52 154 75 50 25 Total 3,691 1,264 2,427 1,934 1,134 800 Unamortized intangible assets: In-process research and development — 4 — 4 4 — 4 Trade names — 154 — 154 160 — 160 Goodwill — 5,106 — 5,106 2,511 — 2,511 Total $ 8,955 $ 1,264 $ 7,691 $ 4,609 $ 1,134 $ 3,475 Estimated amortization expense for the years ending December 31, 2023 through 2027 is presented below: Year Ending December 31, 2023 2024 2025 2026 2027 (in millions) Estimated amortization expense $ 230 $ 210 $ 210 $ 210 $ 195 A roll-forward of the gross carrying amounts of intangible assets for the years ended December 31, 2022 and 2021 is presented below. 2022 2021 (in millions) Balance at January 1 $ 4,609 $ 4,675 Acquisitions (1) 4,434 132 Foreign currency translation and other (88) (198) Balance at December 31 $ 8,955 $ 4,609 (1) Primarily attributable to the 2022 acquisitions of Wind River and Intercable Automotive and the 2021 acquisitions of El-Com, Krono-Safe and Ulti-Mate, as further described in Note 20. Acquisitions and Divestitures. A roll-forward of the accumulated amortization for the years ended December 31, 2022 and 2021 is presented below: 2022 2021 (in millions) Balance at January 1 $ 1,134 $ 1,004 Amortization 149 148 Foreign currency translation and other (19) (18) Balance at December 31 $ 1,264 $ 1,134 A roll-forward of the carrying amount of goodwill, by operating segment, for the years ended December 31, 2022 and 2021 is presented below: Signal and Power Solutions Advanced Safety and User Experience Total (in millions) Balance at January 1, 2021 $ 2,553 $ 27 $ 2,580 Acquisitions (1) 65 9 74 Foreign currency translation and other (143) — (143) Balance at December 31, 2021 $ 2,475 $ 36 $ 2,511 Acquisitions (2) $ 357 $ 2,302 $ 2,659 Foreign currency translation and other (76) 12 (64) Balance at December 31, 2022 $ 2,756 $ 2,350 $ 5,106 (1) Primarily attributable to the acquisitions of El-Com, Krono-Safe and Ulti-Mate, as further described in Note 20. Acquisitions and Divestitures. (2) Primarily attributable to the acquisitions of Wind River and Intercable Automotive, as further described in Note 20. Acquisitions and Divestitures. |
Liabilities
Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Liabilities | LIABILITIES Accrued liabilities consisted of the following: December 31, December 31, (in millions) Payroll-related obligations $ 330 $ 286 Employee benefits, including current pension obligations 151 83 Income and other taxes payable 188 157 Warranty obligations (Note 9) 43 41 Restructuring (Note 10) 65 42 Customer deposits 82 83 Derivative financial instruments (Note 17) 29 13 Accrued interest 51 30 MCPS dividends payable 3 3 Contract liabilities (Note 24) 90 — Operating lease liabilities (Note 25) 109 92 Other 543 416 Total $ 1,684 $ 1,246 Other long-term liabilities consisted of the following: December 31, December 31, (in millions) Environmental (Note 13) $ 1 $ 4 Extended disability benefits 4 5 Warranty obligations (Note 9) 9 8 Restructuring (Note 10) 18 21 Payroll-related obligations 10 11 Accrued income taxes 161 153 Deferred income taxes, net (Note 14) 481 153 Contract liabilities (Note 24) 9 — Derivative financial instruments (Note 17) 7 7 Other 50 74 Total $ 750 $ 436 |
Warranty Obligations
Warranty Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Warranty Obligations | WARRANTY OBLIGATIONSExpected warranty costs for products sold are recognized principally at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. The estimated costs related to product recalls based on a formal campaign soliciting return of that product are accrued at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Aptiv has recognized its best estimate for its total aggregate warranty reserves, including product recall costs, across all of its operating segments as of December 31, 2022. The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of December 31, 2022 to be zero to $10 million. The table below summarizes the activity in the product warranty liability for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (in millions) Accrual balance at beginning of year $ 49 $ 59 Provision for estimated warranties incurred during the year 44 36 Changes in estimate for pre-existing warranties 3 15 Settlements made during the year (in cash or in kind) (43) (59) Foreign currency translation and other (1) (2) Accrual balance at end of year $ 52 $ 49 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING Aptiv’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing Aptiv’s strategy, either in the normal course of business or pursuant to significant restructuring programs. As part of the Company’s continued efforts to optimize its cost structure, it has undertaken several restructuring programs which include workforce reductions as well as plant closures. These programs are primarily focused on reducing global overhead costs and the continued rotation of our manufacturing footprint to best cost locations in Europe. During the year ended December 31, 2022, the Company recorded employee-related and other restructuring charges related to these programs totaling approximately $85 million, of which $61 million was recognized for programs implemented in the European region and $23 million was recognized for programs implemented in the North America region. None of the Company’s individual restructuring programs initiated during 2022 were material and there have been no changes in previously initiated programs that have resulted (or are expected to result) in a material change to our restructuring costs. The Company expects to incur additional restructuring costs of approximately $10 million (of which approximately $5 million relates to the Advanced Safety and User Experience segment and approximately $5 million relates to the Signal and Power Solutions segment) for programs approved as of December 31, 2022, which are expected to be incurred within the next twelve months. During the year ended December 31, 2021, the Company recorded employee-related and other restructuring charges totaling approximately $24 million. During the year ended December 31, 2020, the Company recorded employee-related and other restructuring charges totaling approximately $136 million, of which $62 million was recognized for programs implemented in the North America region and $57 million was recognized for programs implemented in the European region. The charges recorded during the year ended December 31, 2020 included the recognition of approximately $90 million of employee-related and other costs related to actions taken as a result of the global impacts of the COVID-19 pandemic. Restructuring charges for employee separation and termination benefits are paid either over the severance period or in a lump sum in accordance with either statutory requirements or individual agreements. Aptiv incurred cash expenditures related to its restructuring programs of approximately $67 million, $80 million and $151 million in the years ended December 31, 2022, 2021 and 2020, respectively. The following table summarizes the restructuring charges recorded for the years ended December 31, 2022, 2021 and 2020 by operating segment: Year Ended December 31, 2022 2021 2020 (in millions) Signal and Power Solutions $ 30 $ 8 $ 90 Advanced Safety and User Experience 55 16 46 Total $ 85 $ 24 $ 136 The table below summarizes the activity in the restructuring liability for the years ended December 31, 2022 and 2021: Employee Termination Benefits Liability Other Exit Costs Liability Employee Termination Benefits (in millions) Accrual balance at January 1, 2021 $ 125 $ — $ 125 Provision for estimated expenses incurred during the year 24 — 24 Payments made during the year (80) — (80) Foreign currency and other (6) — (6) Accrual balance at December 31, 2021 $ 63 $ — $ 63 Provision for estimated expenses incurred during the year $ 85 $ — $ 85 Payments made during the year (67) — (67) Foreign currency and other 2 — 2 Accrual balance at December 31, 2022 $ 83 $ — $ 83 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | DEBT The following is a summary of debt outstanding, net of unamortized issuance costs and discounts, as of December 31, 2022 and 2021: December 31, 2022 2021 (in millions) 2.396%, senior notes, due 2025 (net of $3 and $0 unamortized issuance costs, respectively) $ 697 $ — 1.50%, Euro-denominated senior notes, due 2025 (net of $1 and $2 unamortized issuance costs and $1 and $1 discount, respectively) 747 790 1.60%, Euro-denominated senior notes, due 2028 (net of $2 and $3 unamortized issuance costs, respectively) 533 563 4.35%, senior notes, due 2029 (net of $2 and $2 unamortized issuance costs, respectively) 298 298 3.25%, senior notes, due 2032 (net of $7 and $0 unamortized issuance costs and $3 and $0 discount, respectively) 790 — 4.40%, senior notes, due 2046 (net of $3 and $3 unamortized issuance costs and $1 and $1 discount, respectively) 296 296 5.40%, senior notes, due 2049 (net of $4 and $4 unamortized issuance costs and $1 and $1 discount, respectively) 345 345 3.10%, senior notes, due 2051 (net of $16 and $17 unamortized issuance costs and $32 and $33 discount, respectively) 1,452 1,450 4.15%, senior notes, due 2052 (net of $11 and $0 unamortized issuance costs and $2 and $0 discount, respectively) 987 — Tranche A Term Loan, due 2026 (net of $1 and $2 unamortized issuance costs, respectively) 308 311 Finance leases and other 38 14 Total debt 6,491 4,067 Less: current portion (31) (8) Long-term debt $ 6,460 $ 4,059 The principal maturities of debt, at nominal value, are as follows: Debt and Finance Lease Obligations (in millions) 2023 $ 31 2024 32 2025 1,469 2026 262 2027 2 Thereafter 4,785 Total $ 6,581 Credit Agreement Aptiv PLC and its wholly-owned subsidiary Aptiv Corporation entered into a credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), under which it maintains senior unsecured credit facilities currently consisting of a term loan (the “Tranche A Term Loan”) and a revolving credit facility of $2 billion (the “Revolving Credit Facility”). Subsequently, Aptiv Global Financing Limited (“AGFL”), a wholly-owned subsidiary of Aptiv PLC, executed a joinder agreement to the Credit Agreement, which allows it to act as a borrower under the Credit Agreement, and a guaranty supplement, under which AGFL guarantees the obligations under the Credit Agreement, subject to certain exceptions. The Credit Agreement was entered into in March 2011 and has been subsequently amended and restated on several occasions, most recently on June 24, 2021. The June 2021 amendment, among other things, (1) refinanced and replaced the existing term loan A and revolver with a new term loan A that matures in 2026, and a new five-year revolving credit facility with aggregate commitments of $2 billion, (2) utilized the Company’s existing sustainability-linked metrics and commitments, that, if achieved, would change the facility fee and interest rate margins as described below, and (3) established the leverage ratio maintenance covenant that requires the Company to maintain total net leverage (as calculated in accordance with the Credit Agreement) of less than 3.5 to 1.0 (or 4.0 to 1.0 for four full fiscal quarters following completion of material acquisitions, as defined in the Credit Agreement) and allowed for dividends and other payments on equity. Losses on modification of debt totaled $1 million and $4 million during the years ended December 31, 2021 and 2020, respectively, related to the June 2021 amendment and May 2020 amendment. Aptiv paid amendment fees of $6 million and $18 million during the years ended December 31, 2021 and 2020, respectively, which are reflected as financing activities in the consolidated statements of cash flows. The Tranche A Term Loan and the Revolving Credit Facility mature on June 24, 2026. Beginning in the third quarter of 2022, Aptiv was obligated to begin making quarterly principal payments on the Tranche A Term Loan according to the amortization schedule in the Credit Agreement. The Credit Agreement also contains an accordion feature that permits Aptiv to increase, from time to time, the aggregate borrowing capacity under the Credit Agreement by up to an additional $1 billion upon Aptiv’s request, the agreement of the lenders participating in the increase, and the approval of the Administrative Agent. As of December 31, 2022, Aptiv had no amounts outstanding under the Revolving Credit Facility and less than $1 million in letters of credit were issued under the Credit Agreement. Letters of credit issued under the Credit Agreement reduce availability under the Revolving Credit Facility. Loans under the Credit Agreement bear interest, at Aptiv’s option, at either (a) the Administrative Agent’s Alternate Base Rate (“ABR” as defined in the Credit Agreement) or (b) the London Interbank Offered Rate (the “Adjusted LIBO Rate” as defined in the Credit Agreement) (“LIBOR”) plus in either case a percentage per annum as set forth in the table below (the “Applicable Rate”). The June 2021 amendment also contains provisions to facilitate the replacement of the LIBOR-based rate with a Secured Overnight Financing Rate (“SOFR”) based rate upon the discontinuation or unavailability of LIBOR. The Applicable Rates under the Credit Agreement on the specified dates are set forth below: December 31, 2022 December 31, 2021 LIBOR plus ABR plus LIBOR plus ABR plus Revolving Credit Facility 1.06 % 0.06 % 1.10 % 0.10 % Tranche A Term Loan 1.105 % 0.105 % 1.125 % 0.125 % Under the June 2021 amendment, the Applicable Rate under the Credit Agreement, as well as the facility fee, may increase or decrease from time to time based on changes in the Company’s credit ratings and whether the Company achieves or fails to achieve certain sustainability-linked targets with respect to greenhouse gas emissions and workplace safety. Such adjustments may be up to 0.04% per annum on interest rate margins on the Revolving Credit Facility, 0.02% per annum on interest rate margins on the Tranche A Term Loan and 0.01% per annum on the facility fee. Accordingly, the interest rate is subject to fluctuation during the term of the Credit Agreement based on changes in the ABR, LIBOR, changes in the Company’s corporate credit ratings or whether the Company achieves or fails to achieve its sustainability-linked targets. The Credit Agreement also requires that Aptiv pay certain facility fees on the Revolving Credit Facility, which are also subject to adjustment based on the sustainability-linked targets as described above, and certain letter of credit issuance and fronting fees. The Company achieved the sustainability-linked targets for the 2021 calendar year, and the interest rate margins and facility fees were reduced by the amounts specified above, effective in third quarter of 2022. The interest rate period with respect to LIBOR interest rate options can be set at one-, three-, or six-months as selected by Aptiv in accordance with the terms of the Credit Agreement (or other period as may be agreed by the applicable lenders). Aptiv may elect to change the selected interest rate option in accordance with the provisions of the Credit Agreement. As of December 31, 2022, Aptiv selected the one-month LIBOR interest rate option on the Tranche A Term Loan, and the rate effective as of December 31, 2022, as detailed in the table below, was based on the Company’s current credit rating and the Applicable Rate for the Credit Agreement: Borrowings as of December 31, 2022 Rates effective as of Applicable Rate (in millions) December 31, 2022 Tranche A Term Loan LIBOR plus 1.105% $ 309 5.48 % Borrowings under the Credit Agreement are prepayable at Aptiv’s option without premium or penalty. The Credit Agreement contains certain covenants that limit, among other things, the Company’s (and the Company’s subsidiaries’) ability to incur certain additional indebtedness or liens or to dispose of substantially all of its assets. In addition, under the June 2021 amendment, the Credit Agreement requires that the Company maintain a consolidated leverage ratio (the ratio of Consolidated Total Indebtedness to Consolidated EBITDA, each as defined in the Credit Agreement) of not more than 3.5 to 1.0 (or 4.0 to 1.0 for four full fiscal quarters following completion of material acquisitions, as defined in the Credit Agreement). Following completion of the acquisition of Wind River in December 2022, the Company elected to increase the ratio of Consolidated Total Indebtedness to Consolidated EBITDA to 4.0 to 1.0 commencing with the fiscal quarter ending December 31, 2022. Refer to Note 20. Acquisitions and Divestitures for further information on this acquisition. The Credit Agreement also contains events of default customary for financings of this type. The Company was in compliance with the Credit Agreement covenants as of December 31, 2022. As of December 31, 2022, all obligations under the Credit Agreement were borrowed by Aptiv Corporation and jointly and severally guaranteed by AGFL and Aptiv PLC, subject to certain exceptions set forth in the Credit Agreement. Senior Unsecured Notes On March 10, 2015, Aptiv PLC issued €700 million in aggregate principal amount of 1.50% Euro-denominated senior unsecured notes due 2025 (the “2015 Euro-denominated Senior Notes”) in a transaction registered under the Securities Act of 1933, as amended (the “Securities Act”). The 2015 Euro-denominated Senior Notes were priced at 99.54% of par, resulting in a yield to maturity of 1.55%. The proceeds were primarily utilized to redeem $500 million of 6.125% senior unsecured notes due 2021, and to fund growth initiatives, such as acquisitions, and share repurchases. Aptiv incurred approximately $5 million of issuance costs in connection with the 2015 Euro-denominated Senior Notes. Interest is payable annually on March 10. The Company has designated the 2015 Euro-denominated Senior Notes as a net investment hedge of the foreign currency exposure of its investments in certain Euro-denominated wholly-owned subsidiaries. Refer to Note 17. Derivatives and Hedging Activities for further information. On September 15, 2016, Aptiv PLC issued €500 million in aggregate principal amount of 1.60% Euro-denominated senior unsecured notes due 2028 (the “2016 Euro-denominated Senior Notes”) in a transaction registered under the Securities Act. The 2016 Euro-denominated Senior Notes were priced at 99.881% of par, resulting in a yield to maturity of 1.611%. The proceeds, together with proceeds from the 2016 Senior Notes described below, were utilized to redeem $800 million of 5.00% senior unsecured notes due 2023. Aptiv incurred approximately $4 million of issuance costs in connection with the 2016 Euro-denominated Senior Notes. Interest is payable annually on September 15. The Company has designated the 2016 Euro-denominated Senior Notes as a net investment hedge of the foreign currency exposure of its investments in certain Euro-denominated wholly-owned subsidiaries. Refer to Note 17. Derivatives and Hedging Activities for further information. On September 20, 2016, Aptiv PLC issued $300 million in aggregate principal amount of 4.40% senior unsecured notes due 2046 (the “2016 Senior Notes”) in a transaction registered under the Securities Act. The 2016 Senior Notes were priced at 99.454% of par, resulting in a yield to maturity of 4.433%. The proceeds, together with proceeds from the 2016 Euro-denominated Senior Notes, were utilized to redeem $800 million of 5.00% senior unsecured notes due 2023. Aptiv incurred approximately $3 million of issuance costs in connection with the 2016 Senior Notes. Interest is payable semi-annually on April 1 and October 1 of each year to holders of record at the close of business on March 15 or September 15 immediately preceding the interest payment date. On March 14, 2019, Aptiv PLC issued $650 million in aggregate principal amount of senior unsecured notes in a transaction registered under the Securities Act, comprised of $300 million of 4.35% senior unsecured notes due 2029 (the “4.35% Senior Notes”) and $350 million of 5.40% senior unsecured notes due 2049 (the “5.40% Senior Notes”) (collectively, the “2019 Senior Notes”). The 4.35% Senior Notes were priced at 99.879% of par, resulting in a yield to maturity of 4.365%, and the 5.40% Senior Notes were priced at 99.558% of par, resulting in a yield to maturity of 5.430%. The proceeds were utilized to redeem $650 million of 3.15% senior unsecured notes due 2020. Aptiv incurred approximately $7 million of issuance costs in connection with the 2019 Senior Notes. Interest on the 2019 Senior Notes is payable semi-annually on March 15 and September 15 of each year to holders of record at the close of business on March 1 or September 1 immediately preceding the interest payment date. On November 23, 2021, Aptiv PLC issued $1.5 billion in aggregate principal amount of 3.10% senior unsecured notes due 2051 (the “2021 Senior Notes”) in a transaction registered under the Securities Act. The 2021 Senior Notes were priced at 97.814% of par, resulting in a yield to maturity of 3.214%. The proceeds were utilized to redeem the $700 million of 4.15% senior unsecured notes due 2024 (the “2014 Senior Notes”) and $650 million of 4.25% senior unsecured notes due 2026 (the “4.25% Senior Notes”). As a result of the redemption of the 2014 Senior Notes and the 4.25% Senior Notes, Aptiv recognized a loss on debt extinguishment of approximately $126 million during the year ended December 31, 2021 within other expense, net in the consolidated statement of operations. Aptiv incurred approximately $17 million of issuance costs in connection with the 2021 Senior Notes. Interest on the 2021 Senior Notes is payable semi-annually on June 1 and December 1 of each year (commencing on June 1, 2022) to holders of record at the close of business on May 15 or November 15 immediately preceding the interest payment date. On December 27, 2021, Aptiv PLC entered into a supplemental indenture to add AGFL as a joint and several co-issuer of the 2021 Senior Notes effective as of the date of issuance. On February 18, 2022, Aptiv PLC and Aptiv Corporation (together, the “Issuers”) issued $2.5 billion in aggregate principal amount of senior unsecured notes in a transaction registered under the Securities Act, comprised of $700 million of 2.396% senior unsecured notes due 2025 (the “2.396% Senior Notes”), $800 million of 3.25% senior unsecured notes due 2032 (the “3.25% Senior Notes”) and $1.0 billion of 4.15% senior unsecured notes due 2052 (the “4.15% Senior Notes”) (collectively, the “2022 Senior Notes”). The 2022 Senior Notes are guaranteed by AGFL. The 2.396% Senior Notes were priced at 100% of par, resulting in a yield to maturity of 2.396%; the 3.25% Senior Notes were priced at 99.600% of par, resulting in a yield to maturity of 3.297%; and the 4.15% Senior Notes were priced at 99.783% of par, resulting in a yield to maturity of 4.163%. On or after February 18, 2023, the 2.396% Senior Notes may be optionally redeemed at a price equal to their principal amount plus accrued and unpaid interest thereon. The proceeds from the 2022 Senior Notes were utilized to fund a portion of the cash consideration payable in connection with the acquisition of Wind River. Aptiv incurred approximately $22 million of issuance costs in connection with the 2022 Senior Notes. Interest on the 2.396% Senior Notes, 3.25% Senior Notes and 4.15% Senior Notes is payable semi-annually on February 18 and August 18 (commencing August 18, 2022), March 1 and September 1 (commencing September 1, 2022) and May 1 and November 1 (commencing May 1, 2022), respectively, of each year to holders of record at the close of business on February 3 or August 3, February 15 or August 15, April 15 or October 15, respectively, immediately preceding the interest payment date. Although the specific terms of each indenture governing each series of senior notes vary, the indentures contain certain restrictive covenants, including with respect to Aptiv’s (and Aptiv’s subsidiaries’) ability to incur liens, enter into sale and leaseback transactions and merge with or into other entities. In February 2022, Aptiv Corporation and AGFL were added as guarantors on each series of outstanding senior notes previously issued by Aptiv PLC. As of December 31, 2022, the Company was in compliance with the provisions of all series of the outstanding senior notes. Other Financing Receivable factoring —Aptiv maintains a €450 million European accounts receivable factoring facility that is available on a committed basis and allows for factoring of receivables denominated in both Euros and U.S. dollars (“USD”). This facility is accounted for as short-term debt and borrowings are subject to the availability of eligible accounts receivable. Collateral is not required related to these trade accounts receivable. This facility became effective on January 1, 2021 and has an initial term of three years, subject to Aptiv’s right to terminate at any time with three months’ notice. After expiration of the three-year term, either party can terminate with three months’ notice. Borrowings denominated in Euros under the facility bear interest at the three-month Euro Interbank Offered Rate (“EURIBOR”) plus 0.50% and USD borrowings bear interest at two-month LIBOR plus 0.50%, with borrowings under either denomination carrying a minimum interest rate of 0.20%. As of December 31, 2022 and 2021, Aptiv had no amounts outstanding under the European accounts receivable factoring facility. Finance leases and other —As of December 31, 2022 and 2021, approximately $38 million and $14 million, respectively, of other debt primarily issued by certain non-U.S. subsidiaries and finance lease obligations were outstanding. Interest —Cash paid for interest related to debt outstanding totaled $190 million, $159 million and $154 million for the years ended December 31, 2022, 2021 and 2020, respectively. Letter of credit facilities —In addition to the letters of credit issued under the Credit Agreement, Aptiv had approximately $3 million and $3 million outstanding through other letter of credit facilities as of December 31, 2022 and 2021, respectively, primarily to support arrangements and other obligations at certain of its subsidiaries. |
Pension Benefits
Pension Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension Benefits | PENSION BENEFITS Certain of Aptiv’s non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based on negotiated amounts for each year of service. Aptiv’s primary non-U.S. plans are located in France, Germany, Mexico, Portugal and the United Kingdom (“U.K.”). The U.K. and certain Mexican plans are funded. In addition, Aptiv has defined benefit plans in South Korea, Turkey and Italy for which amounts are payable to employees immediately upon separation. The obligations for these plans are recorded over the requisite service period. Aptiv sponsors a Supplemental Executive Retirement Program (“SERP”) for those employees who were U.S. executives of the former Delphi Corporation prior to September 30, 2008 and were still U.S. executives of the Company on October 7, 2009, the effective date of the program. This program is unfunded. Executives receive benefits over five years after an involuntary or voluntary separation from Aptiv. The SERP is closed to new members. Funded Status The amounts shown below reflect the change in the U.S. defined benefit pension obligations during 2022 and 2021. Year Ended December 31, 2022 2021 (in millions) Benefit obligation at beginning of year $ 5 $ 8 Actuarial gain (1) — Benefits paid (1) (3) Benefit obligation at end of year $ 3 $ 5 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Aptiv contributions 1 3 Benefits paid (1) (3) Fair value of plan assets at end of year $ — $ — Underfunded status $ (3) $ (5) Amounts recognized in the consolidated balance sheets consist of: Current liabilities $ (1) $ (1) Long-term liabilities (2) (4) Total $ (3) $ (5) Amounts recognized in accumulated other comprehensive loss consist of (pre-tax): Actuarial loss $ 4 $ 6 Total $ 4 $ 6 The amounts shown below reflect the change in the non-U.S. defined benefit pension obligations during 2022 and 2021. Year Ended December 31, 2022 2021 (in millions) Benefit obligation at beginning of year $ 861 $ 977 Service cost 15 18 Interest cost 23 19 Actuarial gain (171) (62) Benefits paid (35) (36) Impact of curtailments — (3) Exchange rate movements and other (42) (52) Benefit obligation at end of year $ 651 $ 861 Change in plan assets: Fair value of plan assets at beginning of year $ 438 $ 438 Actual return on plan assets (89) 23 Aptiv contributions 23 25 Benefits paid (35) (36) Exchange rate movements and other (30) (12) Fair value of plan assets at end of year $ 307 $ 438 Underfunded status $ (344) $ (423) Amounts recognized in the consolidated balance sheets consist of: Long-term assets $ 25 $ 29 Current liabilities (18) (17) Long-term liabilities (351) (435) Total $ (344) $ (423) Amounts recognized in accumulated other comprehensive loss consist of (pre-tax): Actuarial loss $ 17 $ 101 Total $ 17 $ 101 The benefit obligations were impacted by actuarial gains of $172 million and $62 million during the years ended December 31, 2022 and 2021, respectively, primarily due to changes in the discount rates used to measure the benefit obligation. The projected benefit obligation (“PBO”), accumulated benefit obligation (“ABO”), and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets and with plan assets in excess of accumulated benefit obligations are as follows: U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 (in millions) PBO $ 3 $ 5 $ 449 $ 445 ABO 3 5 398 405 Fair value of plan assets at end of year — — 80 7 Plans with Plan Assets in Excess of ABO PBO $ — $ — $ 202 $ 416 ABO — — 193 393 Fair value of plan assets at end of year — — 227 431 Total PBO $ 3 $ 5 $ 651 $ 861 ABO 3 5 591 798 Fair value of plan assets at end of year — — 307 438 Benefit costs presented below were determined based on actuarial methods and included the following: U.S. Plans Year Ended December 31, 2022 2021 2020 (in millions) Amortization of actuarial losses $ 1 $ 1 $ 1 Net periodic benefit cost $ 1 $ 1 $ 1 Non-U.S. Plans Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 15 $ 18 $ 18 Interest cost 23 19 20 Expected return on plan assets (17) (17) (17) Settlement loss — 1 1 Curtailment loss — 3 — Amortization of actuarial losses 8 14 14 Other — — 1 Net periodic benefit cost $ 29 $ 38 $ 37 Other postretirement benefit obligations were approximately $1 million and $1 million at December 31, 2022 and 2021, respectively. Experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions are recognized in other comprehensive income. Cumulative gains and losses in excess of 10% of the PBO for a particular plan are amortized over the average future service period of the employees in that plan. The principal assumptions used to determine the pension expense and the actuarial value of the projected benefit obligation for the U.S. and non-U.S. pension plans were: Assumptions used to determine benefit obligations at December 31: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Weighted-average discount rate 5.20 % 1.90 % 5.95 % 3.09 % Weighted-average rate of increase in compensation levels N/A N/A 2.82 % 2.47 % Assumptions used to determine net expense for years ended December 31: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Weighted-average discount rate 1.90 % 1.20 % 2.40 % 3.09 % 2.21 % 2.87 % Weighted-average rate of increase in compensation levels N/A N/A N/A 2.47 % 3.64 % 3.69 % Weighted-average expected long-term rate of return on plan assets N/A N/A N/A 4.46 % 4.29 % 4.68 % Aptiv selects discount rates by analyzing the results of matching each plan’s projected benefit obligations with a portfolio of high-quality fixed income investments rated AA or higher by Standard and Poor’s or Moody’s. Aptiv does not have any U.S. pension assets; therefore no U.S. asset rate of return calculation was necessary. The primary funded non-U.S. plans are in the U.K. and Mexico. For the determination of 2022 expense, Aptiv assumed a long-term expected asset rate of return of approximately 3.75% and 7.50% for the U.K. and Mexico, respectively. Aptiv evaluated input from local actuaries and asset managers, including consideration of recent fund performance and historical returns, in developing the long-term rate of return assumptions. The assumptions for the U.K. and Mexico are primarily long-term, prospective rates. To determine the expected return on plan assets, the market-related value of our plan assets is actual fair value. Aptiv’s pension expense for 2023 is determined at the 2022 year end measurement date. For purposes of analysis, the following table highlights the sensitivity of the Company’ pension obligations and expense to changes in key assumptions: Change in Assumption Impact on Impact on PBO 25 basis point (“bp”) decrease in discount rate Less than + $1 million ‘ + $16 million 25 bp increase in discount rate ‘ - $1 million ‘ - $15 million 25 bp decrease in long-term expected return on assets ‘ + $1 million — 25 bp increase in long-term expected return on assets ‘ - $1 million — The above sensitivities reflect the effect of changing one assumption at a time. It should be noted that economic factors and conditions often affect multiple assumptions simultaneously and the effects of changes in key assumptions are not necessarily linear. The above sensitivities also assume no changes to the design of the pension plans and no major restructuring programs. Pension Funding The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Projected Pension Benefit Payments U.S. Plans Non-U.S. Plans (in millions) 2023 $ 1 $ 49 2024 1 41 2025 1 43 2026 — 49 2027 — 53 2028 – 2032 — 285 Aptiv anticipates making pension contributions and benefit payments of approximately $36 million in 2023. Aptiv sponsors defined contribution plans for certain hourly and salaried employees. Expense related to the contributions for these plans was $39 million, $37 million, and $17 million for the years ended December 31, 2022, 2021 and 2020, respectively. Plan Assets Certain pension plans sponsored by Aptiv invest in a diversified portfolio consisting of an array of asset classes that attempts to maximize returns while minimizing volatility. These asset classes include developed market equities, emerging market equities, private equity, global high quality and high yield fixed income, real estate and absolute return strategies. The fair values of Aptiv’s pension plan assets weighted-average asset allocations at December 31, 2022 and 2021, by asset category, are as follows: Fair Value Measurements at December 31, 2022 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 12 $ 4 $ 8 $ — Time deposits 28 — 28 — Equity mutual funds 6 — 6 — Bond mutual funds 110 — 110 — Real estate trust funds 36 — — 36 Private debt funds 17 — — 17 Insurance contracts 2 — — 2 Debt securities 59 59 — — Equity securities 37 37 — — Total $ 307 $ 100 $ 152 $ 55 Fair Value Measurements at December 31, 2021 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 13 $ 13 $ — $ — Time deposits 29 — 29 — Equity mutual funds 33 — 33 — Bond mutual funds 216 — 216 — Real estate trust funds 35 — — 35 Hedge funds 11 — — 11 Insurance contracts 4 — — 4 Debt securities 56 56 — — Equity securities 41 41 — — Total $ 438 $ 110 $ 278 $ 50 Following is a description of the valuation methodologies used for pension assets measured at fair value. Time deposits —The fair value of fixed-maturity certificates of deposit was estimated using the rates offered for deposits of similar remaining maturities. Equity mutual funds —The fair value of the equity mutual funds is determined by the indirect quoted market prices on regulated financial exchanges of the underlying investments included in the fund. Bond mutual funds —The fair value of the bond mutual funds is determined by the indirect quoted market prices on regulated financial exchanges of the underlying investments included in the fund. Real estate —The fair value of real estate properties is estimated using an annual appraisal provided by the administrator of the property investment. Management believes this is an appropriate methodology to obtain the fair value of these assets. Private debt funds —The fair value of the private debt funds is determined by the fund administrator based on available market quotes on the subject securities or an income approach valuation in order to estimate fair value. Management believes this is an appropriate methodology to obtain the fair value of these assets. Hedge funds —The fair value of the hedge funds is accounted for by a custodian. The custodian obtains valuations from the underlying hedge fund managers based on market quotes for the most liquid assets and alternative methods for assets that do not have sufficient trading activity to derive prices. Management and the custodian review the methods used by the underlying managers to value the assets. Management believes this is an appropriate methodology to obtain the fair value of these assets. Insurance contracts —The insurance contracts are invested in a fund with guaranteed minimum returns. The fair values of these contracts are based on the net asset value underlying the contracts. Debt securities —The fair value of debt securities is determined by direct quoted market prices on regulated financial exchanges. Equity securities —The fair value of equity securities is determined by direct quoted market prices on regulated financial exchanges. Fair Value Measurements Using Significant Real Estate Trust Fund Hedge Funds Insurance Contracts Private Lending Funds (in millions) Beginning balance at January 1, 2021 $ 34 $ 9 $ 7 $ — Actual return on plan assets: Relating to assets still held at the reporting date 3 2 — — Purchases, sales and settlements (1) — (3) — Foreign currency translation and other (1) — — — Ending balance at December 31, 2021 $ 35 $ 11 $ 4 $ — Actual return on plan assets: Relating to assets still held at the reporting date $ 5 $ 1 $ — $ (2) Purchases, sales and settlements — (10) — 19 Foreign currency translation and other (4) (2) (2) — Ending balance at December 31, 2022 $ 36 $ — $ 2 $ 17 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Ordinary Business Litigation Aptiv is from time to time subject to various legal actions and claims incidental to its business, including those arising out of alleged defects, alleged breaches of contracts, product warranties, intellectual property matters, and employment-related matters. It is the opinion of Aptiv that the outcome of such matters will not have a material adverse impact on the consolidated financial position, results of operations, or cash flows of Aptiv. With respect to warranty matters, although Aptiv cannot ensure that the future costs of warranty claims by customers will not be material, Aptiv believes its established reserves are adequate to cover potential warranty settlements. Matters Related to Global Supply Chain Disruptions Due to various factors that are beyond our control, there are currently global supply chain disruptions, including a worldwide semiconductor supply shortage. The semiconductor supply shortage, due in part to increased demand across multiple industries, is impacting production in automotive and other industries. We anticipate these supply chain disruptions will persist in 2023. We, along with most automotive component manufacturers that use semiconductors, have been unable to fully meet the vehicle production demands of OEMs because of events which are outside our control, including but not limited to, the COVID-19 pandemic, the global semiconductor shortage, fires in our suppliers’ facilities, unprecedented weather events in the southwestern United States, and other extraordinary events. Although we are working closely with suppliers and customers to minimize any potential adverse impacts of these events, some of our customers have indicated that they expect us to bear at least some responsibility for their lost production and other costs. While no assurances can be made as to the ultimate outcome of these customer expectations or any other future claims, we do not currently believe a loss is probable, and accordingly, no reserve has been made as of December 31, 2022. We will continue to actively monitor all direct and indirect potential impacts of these supply chain disruptions, and will seek to aggressively mitigate and minimize their impact on our business. Brazil Matters Aptiv conducts business operations in Brazil that are subject to the Brazilian federal labor, social security, environmental, health and safety, tax and customs laws, as well as a variety of state and local laws. While Aptiv believes it complies with such laws, they are complex, subject to varying interpretations, and the Company is often engaged in litigation with government agencies regarding the application of these laws to particular circumstances. As of December 31, 2022, the majority of claims asserted against Aptiv in Brazil relate to such litigation. The remaining claims in Brazil relate to commercial and labor litigation with private parties. As of December 31, 2022, claims totaling approximately $105 million (using December 31, 2022 foreign currency rates) have been asserted against Aptiv in Brazil. As of December 31, 2022, the Company maintains accruals for these asserted claims of $5 million (using December 31, 2022 foreign currency rates). The amounts accrued represent claims that are deemed probable of loss and are reasonably estimable based on the Company’s analyses and assessment of the asserted claims and prior experience with similar matters. While the Company believes its accruals are adequate, the final amounts required to resolve these matters could differ materially from the Company’s recorded estimates and Aptiv’s results of operations could be materially affected. The Company estimates the reasonably possible loss in excess of the amounts accrued related to these claims to be zero to $40 million. Environmental Matters Aptiv is subject to the requirements of U.S. federal, state, local and non-U.S. environmental, health and safety laws and regulations. As of December 31, 2022 and 2021, the undiscounted reserve for environmental investigation and remediation recorded in other liabilities was approximately $2 million and $4 million, respectively. Aptiv cannot ensure that environmental requirements will not change or become more stringent over time or that its eventual environmental remediation costs and liabilities will not exceed the amount of its current reserves. In the event that such liabilities were to significantly exceed the amounts recorded, Aptiv’s results of operations could be materially affected. At December 31, 2022 the difference between the recorded liabilities and the reasonably possible range of potential loss was not material. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income before income taxes and equity income for U.S. and non-U.S. operations are as follows: Year Ended December 31, 2022 2021 2020 (in millions) U.S. income (loss) $ 24 $ (2) $ (65) Non-U.S. income 966 912 2,019 Income before income taxes and equity loss $ 990 $ 910 $ 1,954 The provision (benefit) for income taxes is comprised of: Year Ended December 31, 2022 2021 2020 (in millions) Current income tax expense (benefit): U.S. federal $ 45 $ 1 $ (53) Non-U.S. 205 156 154 U.S. state and local 15 4 — Total current 265 161 101 Deferred income tax expense (benefit), net: U.S. federal (43) (17) (14) Non-U.S. (90) (43) (37) U.S. state and local (11) — (1) Total deferred (144) (60) (52) Total income tax provision $ 121 $ 101 $ 49 Cash paid or withheld for income taxes was $194 million, $172 million and $106 million for the years ended December 31, 2022, 2021 and 2020, respectively. For purposes of comparability and consistency, the Company uses the notional U.S. federal income tax rate when presenting the Company’s reconciliation of the income tax provision. The Company is an Irish resident taxpayer. A reconciliation of the provision for income taxes compared with the amounts at the notional U.S. federal statutory rate was: Year Ended December 31, 2022 2021 2020 (in millions) Notional U.S. federal income taxes at statutory rate $ 208 $ 191 $ 410 Income taxed at other rates (61) (81) (339) Change in valuation allowance (63) (17) 10 Other change in tax reserves 10 19 30 Intragroup reorganizations — (7) (49) Withholding taxes 38 37 26 Tax credits (19) (23) (16) Change in tax law — (7) (2) Other adjustments 8 (11) (21) Total income tax expense $ 121 $ 101 $ 49 Effective tax rate 12 % 11 % 3 % The Company’s tax rate is affected by the tax rates in Ireland and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no tax benefit or expense was recognized due to a valuation allowance. Included in the non-U.S. income taxed at other rates are tax incentives obtained in various non-U.S. countries, primarily the High and New Technology Enterprise (“HNTE”) status in China and a Free Trade Zone exemption in Honduras which totaled $12 million in 2022, $10 million in 2021 and $5 million in 2020, as well as tax benefit for income earned, and no tax benefit for losses incurred, in jurisdictions where a valuation allowance has been recorded. The Company currently benefits from tax holidays in various non-U.S. jurisdictions with expiration dates from 2023 through 2041. The income tax benefits attributable to these tax holidays are approximately $3 million ($0.01 per share) in 2022, $1 million (less than $0.01 per share) in 2021 and $1 million (less than $0.01 per share) in 2020. The effective tax rate in the year ended December 31, 2022 was impacted by favorable changes in valuation allowances offset by changes in reserves and provision to return adjustments. The effective tax rate was also impacted by impairments and charges related to our planned exit from our majority owned Russian subsidiary and other charges in Ukraine for which no tax benefit was recognized. The effective tax rate in the year ended December 31, 2021 was impacted by favorable provision to return adjustments as well as releases of valuation allowances as a result of the Company’s determination that it was more likely than not that certain deferred tax assets would be realized. The Company also accrued $19 million of reserve adjustments for uncertain tax positions. The effective tax rate in the year ended December 31, 2020 was impacted by changes in reserves, provision to return adjustments, changes in valuation allowances and the tax impact of certain intragroup reorganizations meant to streamline and simplify the Company’s operating and legal structure, which resulted in the recognition of losses for tax purposes. The effective tax rate was also impacted by the beneficial impact from the gain on the formation of the Motional autonomous driving joint venture. The tax expense associated with the gain was insignificant as Aptiv’s aggregate autonomous driving assets were exempt from capital gains tax in the jurisdiction from which they were sold. The aggregate autonomous driving assets had been acquired, purchased or developed in taxable transactions in prior periods and reflect changes made to the corporate entity operating structure for intellectual property following the separation of its former Powertrain Systems segment. On August 16, 2022, the Inflation Reduction Act (“IRA”) was signed into law in the U.S. Among other provisions, the IRA includes a 15% corporate minimum tax rate applied to certain large corporations and a 1% excise tax on corporate stock repurchases made after December 31, 2022. The IRA is not expected to have a significant impact on Aptiv’s consolidated financial statements. The Tax Cuts and Jobs Act, which was enacted in the U.S. in 2017, created a provision known as Global Intangible Low-Taxed Income (“GILTI”) that imposes a tax on certain earnings of foreign subsidiaries. U.S. GAAP allows companies to make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred. We have elected to account for GILTI in the year the tax is incurred. As described above, certain of the Company’s Chinese subsidiaries benefit from a reduced corporate income tax rate as a result of their HNTE status. Aptiv regularly submits applications to reapply for HNTE status as they expire. The Company believes each of the applicable entities will continue to renew HNTE status going forward and has reflected this in calculating total income tax expense. Deferred Income Taxes The Company accounts for income taxes and the related accounts under the liability method. Deferred income tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. Significant components of the deferred tax assets and liabilities are as follows: December 31, 2022 2021 (in millions) Deferred tax assets: Pension $ 56 $ 76 Employee benefits 26 30 Net operating loss carryforwards 735 699 Warranty and other liabilities 85 77 Operating lease liabilities 98 78 Capitalized R&D 111 — Other 222 184 Total gross deferred tax assets 1,333 1,144 Less: valuation allowances (756) (766) Total deferred tax assets (1) $ 577 $ 378 Deferred tax liabilities: Fixed assets $ 45 $ 55 Tax on unremitted profits of certain foreign subsidiaries 69 65 Intangibles 588 174 Operating lease right-of-use assets 97 78 Total gross deferred tax liabilities 799 372 Net deferred tax (liabilities) assets $ (222) $ 6 (1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. Deferred tax assets and liabilities are classified as long-term in the consolidated balance sheets. Net deferred tax assets and liabilities are included in the consolidated balance sheets as follows: December 31, 2022 2021 (in millions) Long-term assets $ 259 $ 159 Long-term liabilities (481) (153) Total deferred tax (liability) asset $ (222) $ 6 The net deferred tax liability of $222 million as of December 31, 2022 is primarily comprised of deferred tax liability amounts in the U.S., Italy, Korea and Singapore partially offset by deferred tax assets primarily in Luxembourg, Mexico and the U.K. Net Operating Loss and Tax Credit Carryforwards As of December 31, 2022, the Company has gross deferred tax assets of approximately $715 million for non-U.S. net operating loss (“NOL”) carryforwards with recorded valuation allowances of $596 million. These NOLs are available to offset future taxable income and realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. The NOLs primarily relate to Luxembourg, Poland, Germany, the U.K., France and Ireland. The NOL carryforwards have expiration dates ranging from one year to an indefinite period. Deferred tax assets include $68 million and $87 million of tax credit carryforwards with recorded valuation allowances of $61 million and $71 million at December 31, 2022 and 2021, respectively. These tax credit carryforwards expire at various times from 2023 through 2042. Cumulative Undistributed Foreign Earnings No income taxes have been provided on indefinitely reinvested earnings of certain foreign subsidiaries at December 31, 2022. Withholding taxes of $69 million have been accrued on undistributed earnings that are not indefinitely reinvested and are primarily related to China, Honduras, Morocco and Germany. There are no other material liabilities for income taxes on the undistributed earnings of foreign subsidiaries, as the Company has concluded that such earnings are either indefinitely reinvested or should not give rise to additional income tax liabilities as a result of the distribution of such earnings. Uncertain Tax Positions The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards. A reconciliation of the gross change in the unrecognized tax benefits balance, excluding interest and penalties is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Balance at beginning of year $ 224 $ 231 $ 217 Additions related to current year 12 12 35 Additions related to prior years 29 20 31 Reductions related to prior years (33) (36) (20) Reductions due to expirations of statute of limitations (7) (3) (28) Settlements (1) — (4) Balance at end of year $ 224 $ 224 $ 231 A portion of the Company’s unrecognized tax benefits would, if recognized, reduce its effective tax rate. The remaining unrecognized tax benefits relate to tax positions that, if recognized, would result in an offsetting change in valuation allowance and for which only the timing of the benefit is uncertain. Recognition of these tax benefits would reduce the Company’s effective tax rate only through a reduction of accrued interest and penalties. As of December 31, 2022 and 2021, the amounts of unrecognized tax benefit that would reduce the Company’s effective tax rate were $214 million and $207 million, respectively. For 2022 and 2021, respectively, $83 million and $105 million of reserves for uncertain tax positions would be offset by the write-off of a related deferred tax asset, if recognized. The Company recognizes interest and penalties relating to unrecognized tax benefits as part of income tax expense. Total accrued liabilities for interest and penalties were $25 million and $28 million at December 31, 2022 and 2021, respectively. Total interest and penalties recognized as part of income tax expense were a benefit of $2 million, and expenses of $4 million and $13 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company files tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. Taxing jurisdictions significant to Aptiv include Barbados, China, Germany, Ireland, Luxembourg, Mexico, South Korea, the U.K. and the U.S. Open tax years related to these taxing jurisdictions remain subject to examination and could result in additional tax liabilities. In general, the Company’s affiliates are no longer subject to income tax examinations by foreign tax authorities for years before 2002. It is reasonably possible that audit settlements, the conclusion of current examinations or the |
Shareholders' Equity And Net In
Shareholders' Equity And Net Income Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity and Net Income Per Share Note [Abstract] | |
Shareholders' Equity And Net Income Per Share | SHAREHOLDERS’ EQUITY AND NET INCOME PER SHARE 2020 Public Equity Offering In June 2020, the Company completed the underwritten public offering of approximately 15.1 million ordinary shares at a price of $75.91 per share, resulting in net proceeds of approximately $1,115 million, after deducting expenses and the underwriters’ discount of $35 million. Simultaneously, the Company completed the underwritten public offering of 11.5 million 5.50% Mandatory Convertible Preferred Shares, Series A, $0.01 par value per share (the “MCPS”) with a liquidation preference of $100 per share, resulting in net proceeds of approximately $1,115 million, after deducting expenses and the underwriters’ discount of $35 million. Each share of MCPS will convert on the mandatory conversion date of June 15, 2023, into between 1.0754 and 1.3173 shares of the Company’s ordinary shares, subject to customary anti-dilution adjustments, and further adjustment if there are any accumulated and unpaid MCPS dividends at the conversion date. The number of the Company’s ordinary shares issuable upon conversion will be determined based on the volume-weighted average price per share of the Company’s ordinary shares over the 20 consecutive trading day period beginning on, and including the 21st scheduled trading day immediately before June 15, 2023. Subject to certain exceptions, at any time prior to June 15, 2023, holders of the MCPS may elect to convert each share into 1.0754 ordinary shares, subject to further anti-dilution adjustments. In the event of a fundamental change, the MCPS will convert at the fundamental change rates specified in the statement of rights, and the holders of the MCPS would be entitled to a fundamental change make-whole dividend. Holders of the MCPS will be entitled to receive, when and if declared by the Company’s Board of Directors, cumulative dividends at the annual rate of 5.50% of the liquidation preference of $100 per share (equivalent to $5.50 annually per share), payable in cash or, subject to certain limitations, by delivery of the Company’s ordinary shares or any combination of cash and the Company’s ordinary shares, at the Company’s election. If declared, dividends on the MCPS are payable quarterly on March 15, June 15, September 15 and December 15 of each year (commencing on September 15, 2020 to, and including June 15, 2023), to the holders of record of the MCPS as they appear on the Company’s share register at the close of business on the immediately preceding March 1, June 1, September 1 or December 1, respectively. Net Income Per Share Basic net income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock and if-converted methods. The if-converted method is used to determine if the impact of the conversion of the MCPS into ordinary shares is more dilutive than the MCPS dividends to net income per share. If so, the MCPS are assumed to have been converted at the later of the beginning of the period or the time of issuance, and the resulting ordinary shares are included in the denominator and the MCPS dividends are added back to the numerator. For the years ended December 31, 2022 and 2021, the impact of the MCPS calculated under the if-converted method was anti-dilutive, and as such 12.37 million and 12.37 million ordinary shares underlying the MCPS, respectively, were excluded from the diluted net income per share calculation. For the year ended December 31, 2020, the calculation of net income per share includes the dilutive impacts of the MCPS under the if-converted method. For all periods presented, the calculation of net income per share also contemplates the dilutive impacts, if any, of the Company’s share-based compensation plans. Refer to Note 21. Share-Based Compensation for additional information. Weighted Average Shares The following table illustrates net income per share attributable to ordinary shareholders and the weighted average shares outstanding used in calculating basic and diluted income per share: Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Numerator, basic: Net income attributable to ordinary shareholders $ 531 $ 527 $ 1,769 Numerator, diluted: Net income attributable to Aptiv $ 594 $ 590 $ 1,804 MCPS dividends (1) (63) (63) — Numerator, diluted $ 531 $ 527 $ 1,804 Denominator: Weighted average ordinary shares outstanding, basic 270.90 270.46 263.43 Dilutive shares related to RSUs 0.28 0.76 0.44 Weighted average MCPS converted shares (1) — — 6.83 Weighted average ordinary shares outstanding, including dilutive shares 271.18 271.22 270.70 Net income per share attributable to ordinary shareholders: Basic $ 1.96 $ 1.95 $ 6.72 Diluted $ 1.96 $ 1.94 $ 6.66 (1) For purposes of calculating net income per share under the if-converted method, the Company has included the impact of the MCPS dividends for the years ended December 31, 2022 and 2021 as the impact was more dilutive to net income per share than the impact of assuming the conversion of the MCPS into ordinary shares on a weighted average basis. The Company has excluded the impact of the MCPS dividends for the year ended December 31, 2020, as the assumed conversion of the MCPS into ordinary shares on a weighted average basis was more dilutive to net income per share than the impact of the MCPS dividends. Share Repurchase Programs In April 2016, the Board of Directors authorized a share repurchase program of up to $1.5 billion of ordinary shares, which commenced in September 2016. This share repurchase program provides for share purchases in the open market or in privately negotiated transactions, depending on share price, market conditions and other factors, as determined by the Company. There were no shares repurchased during the years ended December 31, 2022 and 2021. A summary of the ordinary shares repurchased during the year ended December 31, 2020 is as follows: Total number of shares repurchased 1,059,075 Average price paid per share $ 53.73 Total (in millions) $ 57 As of December 31, 2022, approximately $13 million of share repurchases remained available under the April 2016 share repurchase program, which is in addition to the share repurchase program of up to $2.0 billion that was previously announced in January 2019. This program, which will commence following the completion of the April 2016 share repurchase program, provides for share purchases in the open market or in privately negotiated transactions, depending on share price, market conditions and other factors, as determined by the Company. All previously repurchased shares were retired, and are reflected as a reduction of ordinary share capital for the par value of the shares, with the excess applied as reductions to additional paid-in-capital and retained earnings. Preferred Dividends The Company has declared and paid cash dividends per preferred share during the periods presented as follows: Dividend Amount Per Share (in millions) 2022: Fourth quarter $ 1.375 $ 16 Third quarter 1.375 15 Second quarter 1.375 16 First quarter 1.375 16 Total $ 5.500 $ 63 2021: Fourth quarter $ 1.375 $ 16 Third quarter 1.375 15 Second quarter 1.375 16 First quarter 1.375 16 Total $ 5.500 $ 63 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Comprehensive Income (Loss) | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) attributable to Aptiv (net of tax) are shown below. Year Ended December 31, 2022 2021 2020 (in millions) Foreign currency translation adjustments: Balance at beginning of year $ (588) $ (445) $ (597) Aggregate adjustment for the year (1) (202) (143) 152 Balance at end of year (790) (588) (445) Gains (losses) on derivatives: Balance at beginning of year $ (17) $ 40 $ 13 Other comprehensive income before reclassifications (net tax effect of $10, $0 and $0 ) 37 8 6 Reclassification to income (net tax effect of $1, $0 and $0) (13) (65) 21 Balance at end of year 7 (17) 40 Pension and postretirement plans: Balance at beginning of year $ (67) $ (140) $ (135) Other comprehensive income (loss) before reclassifications (net tax effect of $(26), $(23) and $7) 51 57 (18) Reclassification to income (net tax effect of $(2), $(4) and $(3)) 8 16 13 Balance at end of year (8) (67) (140) Accumulated other comprehensive loss, end of year $ (791) $ (672) $ (545) (1) Includes gains of $74 million and $116 million and losses of $132 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to non-derivative net investment hedges. Refer to Note 17. Derivatives and Hedging Activities for further description of these hedges. Includes $6 million of accumulated currency translation adjustment losses reclassified to net income as a result of the liquidation of a foreign subsidiary for the year ended December 31, 2022. Reclassifications from accumulated other comprehensive income (loss) to income were as follows: Reclassification Out of Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Components Year Ended December 31, Affected Line Item in the Statement of Operations 2022 2021 2020 (in millions) Foreign currency translation adjustments: Liquidation of foreign subsidiary (1) $ (6) $ — $ — Other expense, net (6) — — Income before income taxes — — — Income tax expense (6) — — Net income — — — Net (loss) income attributable to noncontrolling interest $ (6) $ — $ — Net income attributable to Aptiv Gains (losses) on derivatives: Commodity derivatives $ (5) $ 68 $ (7) Cost of sales Foreign currency derivatives 19 (3) (14) Cost of sales 14 65 (21) Income before income taxes (1) — — Income tax expense 13 65 (21) Net income — — — Net (loss) income attributable to noncontrolling interest $ 13 $ 65 $ (21) Net income attributable to Aptiv Pension and postretirement plans: Actuarial loss $ (10) $ (15) $ (16) Other expense, net (2) Curtailment loss — (5) — Other expense, net (2) (10) (20) (16) Income before income taxes 2 4 3 Income tax expense (8) (16) (13) Net income — — — Net (loss) income attributable to noncontrolling interest $ (8) $ (16) $ (13) Net income attributable to Aptiv Total reclassifications for the year $ (1) $ 49 $ (34) (1) Represents accumulated currency translation adjustment losses reclassified to net income as a result of the liquidation of a foreign subsidiary during the year ended December 31, 2022. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12. Pension Benefits for additional details). |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives And Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Cash Flow Hedges Aptiv is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices and changes in interest rates, which may result in cash flow risks. To manage the volatility relating to these exposures, Aptiv aggregates the exposures on a consolidated basis to take advantage of natural offsets. For exposures that are not offset within its operations, Aptiv enters into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes, and designation of derivative instruments is performed on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. Aptiv assesses the initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy. As of December 31, 2022, the Company had the following outstanding notional amounts related to commodity and foreign currency forward and option contracts designated as cash flow hedges that were entered into to hedge forecasted exposures: Commodity Quantity Hedged Unit of Measure Notional Amount (Approximate USD Equivalent) (in thousands) (in millions) Copper 96,785 pounds $ 365 Foreign Currency Quantity Hedged Unit of Measure Notional Amount (Approximate USD Equivalent) (in millions) Mexican Peso 22,516 MXN $ 1,155 Chinese Yuan Renminbi 3,223 RMB 465 Euro 128 EUR 135 Polish Zloty 730 PLN 165 Hungarian Forint 24,013 HUF 65 As of December 31, 2022, Aptiv has entered into derivative instruments to hedge cash flows extending out to December 2024. Gains and losses on derivatives qualifying as cash flow hedges are recorded in accumulated OCI, to the extent that hedges are effective, until the underlying transactions are recognized in earnings. Unrealized amounts in accumulated OCI will fluctuate based on changes in the fair value of hedge derivative contracts at each reporting period. Net gains on cash flow hedges included in accumulated OCI as of December 31, 2022 were $29 million (approximately $40 million, net of tax). Of this total, approximately $15 million of gains are expected to be included in cost of sales within the next 12 months and approximately $14 million of gains are expected to be included in cost of sales in subsequent periods. Cash flow hedges are discontinued when Aptiv determines it is no longer probable that the originally forecasted transactions will occur. Cash flows from derivatives used to manage commodity and foreign exchange risks designated as cash flow hedges are classified as operating activities within the consolidated statements of cash flows. Net Investment Hedges The Company is also exposed to the risk that adverse changes in foreign currency exchange rates could impact its net investment in non-U.S. subsidiaries. To manage this risk, the Company designates certain qualifying derivative and non-derivative instruments, including foreign currency forward contracts and foreign currency-denominated debt, as net investment hedges of certain non-U.S. subsidiaries. The gains or losses on instruments designated as net investment hedges are recognized within OCI to offset changes in the value of the net investment in these foreign currency-denominated operations. Gains and losses reported in accumulated OCI are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. Cash flows from derivatives designated as net investment hedges are classified as investing activities within the consolidated statements of cash flows. The Company has entered into a series of forward contracts, each of which have been designated as net investment hedges of the foreign currency exposure of the Company’s investments in certain Chinese Yuan Renminbi (“RMB”)-denominated subsidiaries. During the years ended December 31, 2022, 2021 and 2020, the Company received $7 million, and made net payments of $17 million and $1 million, respectively, at settlement related to these series of forward contracts which matured throughout each respective year. In December 2022, the Company entered into forward contracts with a total notional amount of 700 million RMB (approximately $100 million, using December 31, 2022 foreign currency rates), which mature in March 2023. Refer to the tables below for details of the fair value recorded in the consolidated balance sheets and the effects recorded in the consolidated statements of operations and consolidated statements of comprehensive income related to these derivative instruments. The Company has designated the €700 million 2015 Euro-denominated Senior Notes and the €500 million 2016 Euro-denominated Senior Notes, as more fully described in Note 11. Debt, as net investment hedges of the foreign currency exposure of its investments in certain Euro-denominated subsidiaries. Due to changes in the value of the Euro-denominated debt instruments designated as net investment hedges, during the years ended December 31, 2022 and 2021, $74 million and $116 million of gains, respectively, were recognized within the cumulative translation adjustment component of OCI. Included in accumulated OCI related to these net investment hedges were cumulative gains of $37 million as of December 31, 2022 and losses of $37 million as of December 31, 2021. Derivatives Not Designated as Hedges In certain occasions the Company enters into certain foreign currency and commodity contracts that are not designated as hedges. When hedge accounting is not applied to derivative contracts, gains and losses are recorded to other income (expense), net and cost of sales in the consolidated statements of operations. Fair Value of Derivative Instruments in the Balance Sheet The fair value of derivative financial instruments recorded in the consolidated balance sheets as of December 31, 2022 and 2021 are as follows: Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location December 31, Balance Sheet Location December 31, December 31, (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ — Accrued liabilities $ 28 Foreign currency derivatives* Other current assets 54 Other current assets 11 $ 43 Commodity derivatives Other long-term assets — Other long-term liabilities 7 Foreign currency derivatives* Other long-term assets 17 Other long-term assets 3 14 Foreign currency derivatives* Other long-term liabilities 1 Other long-term liabilities 1 — Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets — Accrued liabilities 1 Total derivatives designated as hedges $ 72 $ 51 Derivatives not designated: Foreign currency derivatives* Other current assets $ 1 Other current assets $ — 1 Total derivatives not designated as hedges $ 1 $ — Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location December 31, 2021 Balance Sheet Location December 31, 2021 December 31, 2021 (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ 27 Accrued liabilities $ — Foreign currency derivatives* Other current assets 15 Other current assets 9 $ 6 Foreign currency derivatives* Accrued liabilities 5 Accrued liabilities 16 (11) Commodity derivatives Other long-term assets 2 Other long-term liabilities — Foreign currency derivatives* Other long-term assets 2 Other long-term assets 1 1 Foreign currency derivatives* Other long-term liabilities 1 Other long-term liabilities 8 (7) Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets — Accrued liabilities 1 Total derivatives designated as hedges $ 52 $ 35 Derivatives not designated: Commodity derivatives Other current assets $ 5 Accrued liabilities $ — Foreign currency derivatives* Accrued liabilities — Accrued liabilities 1 (1) Total derivatives not designated as hedges $ 5 $ 1 * Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts. The fair value of Aptiv’s derivative financial instruments were in a net asset position as of December 31, 2022 and 2021. Effect of Derivatives on the Statements of Operations and Statements of Comprehensive Income The pre-tax effects of derivative financial instruments in the consolidated statements of operations and consolidated statements of comprehensive income for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 (Loss) Gain Recognized in OCI (Loss) Gain Reclassified from OCI into Income (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ (70) $ (5) Foreign currency derivatives 90 19 Derivatives designated as net investment hedges: Foreign currency derivatives 7 — Total $ 27 $ 14 Loss Recognized (in millions) Derivatives not designated: Foreign currency derivatives $ (8) Total $ (8) Year Ended December 31, 2021 Gain (Loss) Gain (Loss) Reclassified from OCI into Income (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 60 $ 68 Foreign currency derivatives (35) (3) Derivatives designated as net investment hedges: Foreign currency derivatives (17) — Total $ 8 $ 65 Gain (Loss) Recognized (in millions) Derivatives not designated: Commodity derivatives $ 3 Foreign currency derivatives (5) Total $ (2) Year Ended December 31, 2020 Gain (Loss) Recognized in OCI Loss Reclassified from OCI into Income (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 31 $ (7) Foreign currency derivatives (23) (14) Derivatives designated as net investment hedges: Foreign currency derivatives (2) — Total $ 6 $ (21) Gain Recognized (in millions) Derivatives not designated: Foreign currency derivatives $ — Total $ — The gain or loss recognized in income for designated and non-designated derivative instruments was recorded to cost of sales and other income (expense), net in the consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on one or more of the following three valuation techniques: Market —This approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income —This approach uses valuation techniques to convert future amounts to a single present value amount based on current market expectations. Cost —This approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). Aptiv uses the following fair value hierarchy prescribed by U.S. GAAP, which prioritizes the inputs used to measure fair value as follows: Level 1 —Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Typically, assets and liabilities are considered to be fair valued on a recurring basis if fair value is measured regularly. However, if the fair value measurement of an instrument does not necessarily result in a change in the amount recorded on the consolidated balance sheets, assets and liabilities are considered to be fair valued on a nonrecurring basis. This generally occurs when accounting guidance requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. Fair Value Measurements on a Recurring Basis Derivative instruments —All derivative instruments are required to be reported on the balance sheet at fair value unless the transactions qualify and are designated as normal purchases or sales. Changes in fair value are reported currently through earnings unless they meet hedge accounting criteria. Aptiv’s derivative exposures are with counterparties with long-term investment grade credit ratings. Aptiv estimates the fair value of its derivative contracts using an income approach based on valuation techniques to convert future amounts to a single, discounted amount. Estimates of the fair value of foreign currency and commodity derivative instruments are determined using exchange traded prices and rates. Aptiv also considers the risk of non-performance in the estimation of fair value, and includes an adjustment for non-performance risk in the measure of fair value of derivative instruments. The non-performance risk adjustment reflects the credit default spread (“CDS”) applied to the net commodity by counterparty and foreign currency exposures by counterparty. When Aptiv is in a net derivative asset position, the counterparty CDS rates are applied to the net derivative asset position. When Aptiv is in a net derivative liability position, estimates of peer companies’ CDS rates are applied to the net derivative liability position. In certain instances where market data is not available, Aptiv uses management judgment to develop assumptions that are used to determine fair value. This could include situations of market illiquidity for a particular currency or commodity or where observable market data may be limited. In those situations, Aptiv generally surveys investment banks and/or brokers and utilizes the surveyed prices and rates in estimating fair value. As of December 31, 2022 and 2021, Aptiv was in a net derivative asset position of $22 million and $21 million, respectively, and no significant adjustments were recorded for nonperformance risk based on the application of peer companies’ CDS rates, evaluation of our own nonperformance risk and because Aptiv’s exposures were to counterparties with investment grade credit ratings. Refer to Note 17. Derivatives and Hedging Activities for further information regarding derivatives. Contingent consideration —The liability for contingent consideration is estimated as of the date of the acquisition and is recorded as part of the purchase price, and is subsequently re-measured to fair value at each reporting date, based on a probability-weighted analysis using a rate that reflects the uncertainty surrounding the expected outcomes, which the Company believes is appropriate and representative of market participant assumptions. The measurement of the liability for contingent consideration is based on significant inputs that are not observable in the market, and is therefore classified as a Level 3 measurement in accordance with ASC Topic 820-10-35. Examples of utilized unobservable inputs are estimated future earnings or milestone achievements of the acquired businesses and applicable discount rates. The estimate of the liability may fluctuate if there are changes in the forecast of acquired businesses’ future earnings or milestone achievements, as a result of actual earnings or milestone achievements or in the discount rates used to determine the present value of contingent future cash flows. The Company regularly reviews these assumptions and makes adjustments to the fair value measurements as required by facts and circumstances. As of December 31, 2022, the Company has determined that all earn-out provisions have been achieved under existing agreements. As of December 31, 2022 and 2021, the liability for contingent consideration was $10 million (which was classified within other current liabilities) and $10 million (which was classified within other long-term liabilities), respectively, representing the maximum required amounts to be paid under existing agreements. Adjustments to this liability for interest accretion are recognized in interest expense, and any other changes in the fair value of this liability are recognized within other income (expense), net in the consolidated statement of operations. The changes in the contingent consideration liability classified as a Level 3 measurement for the years ended December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 2021 (in millions) Fair value at beginning of year $ 10 $ 52 Additions — 10 Payments — (52) Fair value at end of year $ 10 $ 10 During the year ended December 31, 2021, Aptiv recorded liabilities of $10 million for the estimated fair values of contingent consideration related to our acquisitions, as further described in Note 20. Acquisitions and Divestitures. In accordance with previous agreements, the Company was required to deposit a total of $52 million from 2019 to 2021 related to the contingent consideration liability into an escrow account, which was classified as restricted cash in the consolidated balance sheet upon deposit. During the year ended December 31, 2021, the Company released $52 million from the escrow account which represented the maximum required amount to be paid under these agreements. In accordance with ASC Topic 230-10-45, $24 million of this payment was recorded as a cash outflow from financing activities in the consolidated statement of cash flows, which represents the acquisition date fair value of the contingent consideration liability, with the remaining $28 million recorded as a cash outflow from operating activities for year ended December 31, 2021. Publicly traded equity securities —All publicly traded equity securities are reported at fair value as of each reporting date. The measurement of the asset is based on quoted prices for identical assets on active market exchanges. Gains and losses from changes in the fair value of these securities are recorded within other income (expense), net on the consolidated statement of operations. As of December 31, 2022 and 2021, Aptiv had the following assets measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of December 31, 2022 Foreign currency derivatives $ 58 $ — $ 58 $ — Publicly traded equity securities 17 17 — — Total $ 75 $ 17 $ 58 $ — As of December 31, 2021 Commodity derivatives $ 34 $ — $ 34 $ — Foreign currency derivatives 7 — 7 — Publicly traded equity securities 66 66 — — Total $ 107 $ 66 $ 41 $ — As of December 31, 2022 and 2021, Aptiv had the following liabilities measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of December 31, 2022 Commodity derivatives $ 35 $ — $ 35 $ — Foreign currency derivatives 1 — 1 — Contingent consideration 10 — — 10 Total $ 46 $ — $ 36 $ 10 As of December 31, 2021 Foreign currency derivatives $ 20 $ — $ 20 $ — Contingent consideration 10 — — 10 Total $ 30 $ — $ 20 $ 10 Non-derivative financial instruments —Aptiv’s non-derivative financial instruments include cash and cash equivalents, accounts and notes receivable, accounts payable, as well as debt, which consists of its accounts receivable factoring arrangement, finance leases and other debt issued by Aptiv’s non-U.S. subsidiaries, the Revolving Credit Facility, the Tranche A Term Loan and all series of outstanding senior notes. The fair value of debt is based on quoted market prices for instruments with public market data or significant other observable inputs for instruments without a quoted public market price (Level 2). As of December 31, 2022 and 2021, total debt was recorded at $6,491 million and $4,067 million, respectively, and had estimated fair values of $5,241 million and $4,297 million, respectively. For all other financial instruments recorded as of December 31, 2022 and 2021, fair value approximates book value. Fair Value Measurements on a Nonrecurring Basis In addition to items that are measured at fair value on a recurring basis, Aptiv also has items in its balance sheet that are measured at fair value on a nonrecurring basis. As these items are not measured at fair value on a recurring basis, they are not included in the tables above. Financial and nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis include certain inventories, long-lived assets, assets and liabilities held for sale, intangible assets, equity investments without readily determinable fair values and liabilities for exit or disposal activities measured at fair value upon initial recognition. During the year ended December 31, 2022, Aptiv recorded non-cash long-lived asset impairment charges of $8 million and other charges of $3 million. These charges were primarily related to the conflict between Ukraine and Russia and were recorded within cost of sales. During the years ended December 31, 2021 and 2020, Aptiv recorded non-cash asset impairment charges totaling $2 million and $10 million, respectively, within cost of sales related to declines in the fair values of certain fixed assets. In addition, Aptiv determined that our majority owned subsidiary in Russia met the held for sale criteria as of December 31, 2022. Consequently, during the year ended December 31, 2022, the Company recorded a charge of $51 million to reduce the carrying value of the subsidiary to fair value, which was recorded primarily within cost of sales. Fair value of long-lived and other assets is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved and a review of appraisals or other market indicators and management estimates. As such, Aptiv has determined that the fair value measurements of long-lived and other assets fall in Level 3 of the fair value hierarchy. |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | OTHER INCOME, NET Other income (expense), net included: Year Ended December 31, 2022 2021 2020 (in millions) Interest income $ 86 $ 9 $ 8 Loss on extinguishment of debt (Note 11) — (126) — Loss on modification of debt — (1) (4) Components of net periodic benefit cost other than service cost (15) (21) (20) Costs associated with acquisitions and other transactions (61) — — Change in fair value of equity investments without readily determinable fair value (Note 5) — 9 10 Loss on change in fair value of publicly traded equity securities (Note 5) (52) — — Other, net (12) 1 6 Other expense, net $ (54) $ (129) $ — During the years ended December 31, 2022 and 2021, Aptiv recognized net unrealized losses of $49 million and gains of $5 million, respectively, for publicly traded equity securities still held as of December 31, 2022. As further discussed in Note 20. Acquisitions and Divestitures, Aptiv also incurred approximately $43 million and $10 million in transaction costs related to the acquisitions of Wind River and Intercable Automotive, respectively, during the year ended December 31, 2022. As further discussed in Note 11. Debt, during the year ended December 31, 2021, Aptiv redeemed for cash the entire $700 million aggregate principal amount outstanding of the 2014 Senior Notes and the entire $650 million aggregate principal amount outstanding of the 4.25% Senior Notes, resulting in a loss on debt extinguishment of approximately $126 million. As further discussed in Note 5. Investments in Affiliates, during the year ended December 31, 2021, Aptiv recorded a pre-tax unrealized gain of $9 million related to increases in fair value of its equity investments without readily determinable fair values. As further discussed in Note 5. Investments in Affiliates, during the year ended December 31, 2020, Aptiv recorded a pre-tax unrealized gain of $10 million related to increases in fair value of its equity investments without readily determinable fair values. Also, during the year ended December 31, 2020, Aptiv recorded a loss on modification of debt of $4 million, in conjunction with the May 2020 amendment to the Credit Agreement. |
Acquisitions And Divestitures
Acquisitions And Divestitures | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Acquisition of Wind River Systems, Inc. On December 23, 2022, Aptiv acquired 100% of the equity interests of Wind River Systems, Inc. (“Wind River”), a global leader in delivering software for the intelligent edge, for total consideration of approximately $3.5 billion, instead of the initial purchase price of $4.3 billion agreed to in January 2022. Aptiv and the seller agreed to the amended purchase price, in part, as a result of certain changes in Wind River's current operating structure required to bring the regulatory approval process to a satisfactory conclusion. The results of operations of Wind River are reported within the Advanced Safety and User Experience segment from the date of acquisition. The Company acquired Wind River utilizing cash on hand, which included proceeds from the 2022 Senior Notes. Refer to Note 11. Debt for additional information regarding the 2022 Senior Notes. Upon completion of the acquisition, Aptiv incurred transaction related expenses totaling approximately $43 million, which were recorded within other expense, net in the statement of operations. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available in the fourth quarter of 2022. The preliminary purchase price and related allocation to the acquired net assets of Wind River based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired (1) $ 3,519 Accounts receivable, net $ 91 Contract assets 67 Property, plant and equipment 14 Intangible assets 1,490 Contract liabilities (101) Accrued liabilities (62) Deferred tax liabilities (287) Other assets, net 5 Identifiable net assets acquired 1,217 Goodwill resulting from purchase 2,302 Total purchase price allocation $ 3,519 (1) Approximately $35 million of the cash consideration was unpaid as of December 31, 2022 and was therefore not recognized as a cash outflow from investing activities for the year ended December 31, 2022. This amount is expected to be paid during the first quarter of 2023. Intangible assets primarily include $750 million of technology-related assets with approximate useful lives of sixteen years, $630 million for the fair value of customer-based assets with approximate useful lives ranging from sixteen The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding liabilities assumed, including, but not limited to, contingent liabilities, revisions of provisional estimates of fair values, including, but not limited to, the completion of independent valuations related to intangible assets and certain tax attributes. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of Controlling Interest in Intercable Automotive Solutions On November 30, 2022, Aptiv acquired 85% of the equity interests of Intercable Automotive Solutions S.r.l. (“Intercable Automotive”), a manufacturer of high-voltage busbars and interconnect solutions, for total consideration of $606 million. Intercable Automotive was formerly a subsidiary of Intercable S.r.l. The results of operations of Intercable Automotive are reported within the Signal and Power Solutions segment from the date of acquisition. The Company acquired its interest in Intercable Automotive utilizing cash on hand. Upon completion of the acquisition, Aptiv incurred transaction related expenses totaling approximately $10 million, which were recorded within other expense, net in the statement of operations. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the fourth quarter of 2022. The preliminary purchase price and related allocation to the acquired net assets of Intercable Automotive based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 606 Inventory $ 77 Property, plant and equipment 77 Intangible assets 285 Deferred tax liabilities (82) Other liabilities, net (13) Identifiable net assets acquired 344 Goodwill resulting from purchase 357 Total 701 Less: redeemable noncontrolling interest (95) Total purchase price allocation $ 606 Intangible assets include $201 million recognized for the fair value of customer-based assets with approximate useful lives of nineteen years, $63 million of technology-related assets with estimated useful lives of approximately fifteen years and $21 million recognized for the fair value of the trade name license with an approximate useful life of fifteen years. The estimated fair value of these assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce of Intercable Automotive and is not deductible for tax purposes. Concurrent with the acquisition, the Company entered into an agreement with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 15% of Intercable Automotive for cash of up to €155 million, beginning in 2026. The final purchase price is contractually defined and will be determined based on Intercable Automotive’s 2025 operating results. Due to the noncontrolling interest holders’ redemption rights, the noncontrolling interest has been classified as redeemable noncontrolling interest in the temporary equity section of the consolidated balance sheet. The fair value of the noncontrolling interest was determined using a Monte Carlo simulation approach and includes several assumptions including estimated future profitability, expected volatility rate and risk free rate. The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding liabilities assumed, including, but not limited to, contingent liabilities, revisions of provisional estimates of fair values, including, but not limited to, the completion of independent valuations related to intangible assets and certain tax attributes. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of El-Com, Inc. On December 30, 2021, Aptiv acquired 100% of the equity interests of El-Com, Inc. (“El-Com”), a manufacturer of custom wire harnesses and cable assemblies for high-reliability products and industries, for total consideration of up to $88 million. The total consideration includes a cash payment of up to $10 million, contingent upon the achievement of certain performance metrics over a one-year period following the acquisition. The range of the undiscounted amounts the Company could be required to pay under this arrangement is between zero and $10 million. As of the closing date of the acquisition, the contingent consideration was assigned a fair value of approximately $10 million. Refer to Note 18. Fair Value of Financial Instruments for additional information regarding the measurement of the contingent consideration liability. The results of operations of El-Com are reported within the Signal and Power Solutions segment from the date of acquisition. The Company acquired El-Com utilizing cash on hand. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the fourth quarter of 2021. The purchase price and related allocation were finalized in the fourth quarter of 2022, and resulted in minor adjustments from the amounts previously disclosed. These adjustments were not significant for any period presented after the acquisition date. The final purchase price and related allocation to the acquired net assets of El-Com based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 78 Purchase price, fair value of contingent consideration 10 Total consideration, net of cash acquired $ 88 Intangible assets $ 35 Other assets, net 10 Identifiable net assets acquired 45 Goodwill resulting from purchase 43 Total purchase price allocation $ 88 Intangible assets primarily include amounts recognized for the fair value of customer-based assets, which will be amortized over their estimated useful lives of approximately nine years. The estimated fair value of these assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and is expected to be partially deductible for tax purposes. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of Krono-Safe Automotive, SAS On November 9, 2021, Aptiv acquired 100% of the equity interests of Krono-Safe Automotive (“Krono-Safe Automotive”), a leading software developer of safety-critical real-time embedded systems, for total consideration of $13 million, which was comprised of Aptiv’s previous investment of $6 million in Krono-Safe, SAS that was previously made in 2019 and $7 million of cash. The results of operations of Krono-Safe Automotive are reported within the Advanced Safety and User Experience segment from the date of acquisition. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the fourth quarter of 2021, which primarily resulted in the recognition of goodwill of $9 million and intangible assets of $4 million. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and is not deductible for tax purposes. The purchase price and related allocation were finalized in the fourth quarter of 2022. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of Ulti-Mate Connector, Inc. On April 30, 2021, Aptiv acquired certain assets of Ulti-Mate Connector, Inc. (“Ulti-Mate”), a manufacturer of miniature and micro-miniature connectors and cable assemblies, for total consideration of $45 million. The results of the operations of Ulti-Mate are reported within the Signal and Power Solutions segment from the date of acquisition. The Company acquired Ulti-Mate utilizing cash on hand. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the second quarter of 2021. The purchase price and related allocation were finalized in the second quarter of 2022. The final purchase price and related allocation to the acquired net assets of Ulti-Mate based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 45 Intangible assets $ 17 Other assets, net 5 Identifiable net assets acquired 22 Goodwill resulting from purchase 23 Total purchase price allocation $ 45 Intangible assets primarily include amounts recognized for the fair value of customer-based assets, which will be amortized over their estimated useful lives of approximately nine years. The estimated fair value of these assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition, and an insignificant portion of the goodwill is expected to be deductible for tax purposes. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of Dynawave Inc. On August 4, 2020, Aptiv acquired 100% of the equity interests of Dynawave Inc. (“Dynawave”), a specialized manufacturer of custom-engineered interconnect solutions for a wide range of industries, for total consideration of $22 million. The results of the operations of Dynawave are reported within the Signal and Power Solutions segment from the date of the acquisition. The Company acquired Dynawave utilizing cash on hand. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the third quarter of 2020. The purchase price and related allocation were finalized in the third quarter of 2021, and resulted in minor adjustments from the amounts previously disclosed. These adjustments were not significant for any period presented after the acquisition date. The final purchase price and related allocation to the acquired net assets of Dynawave based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 22 Intangible assets $ 8 Other assets, net 4 Identifiable net assets acquired 12 Goodwill resulting from purchase 10 Total purchase price allocation $ 22 Intangible assets primarily include amounts recognized for the fair value of customer-based assets, which will be amortized over their estimated useful lives of approximately nine years. The estimated fair value of these assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce of Dynawave, and an insignificant portion of the goodwill is expected to be deductible for tax purposes. The pro forma effects of this acquisition would not materially impact the Company’s reported results for any period presented, and as a result no pro forma financial statements were presented. Autonomous Driving Joint Venture On March 26, 2020, Aptiv completed a transaction with Hyundai to form Motional, a joint venture focused on the design, development and commercialization of autonomous driving technologies. Under the terms of the agreement, Aptiv contributed to Motional autonomous driving technology, intellectual property and approximately 700 employees for a 50% ownership interest in Motional. Hyundai contributed to Motional approximately $1.6 billion in cash, along with vehicle engineering services, research and development resources and access to intellectual property for a 50% ownership interest in Motional. As a result, Motional is expected to fund all of its future operating expenses and investments in autonomous driving technologies for the foreseeable future. Consequently, Aptiv is not required to fund these investments and expenses, which approximated $180 million for the year ended December 31, 2019 prior to Motional’s formation. Upon closing of the transaction, Aptiv deconsolidated the carrying value of the associated assets and liabilities contributed to Motional, previously classified as held for sale, and recognized an asset of approximately $2 billion within investments in affiliates in the consolidated balance sheet, based on the preliminary fair value of its investment in Motional. The Company recognized a pre-tax gain of approximately $1.4 billion in the consolidated statement of operations (approximately $5.32 per diluted share for the year ended December 31, 2020), net of transaction costs of $22 million, based on the difference between the carrying value of its contribution to Motional and the preliminary fair value of its investment in Motional. The estimated fair value of Aptiv’s ownership interest in Motional was determined primarily based on third-party valuations and management estimates, generally utilizing income and market approaches. Determining the fair value of Motional and the underlying assets required the use of management’s judgment and involved significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, projected growth rates and margins, and appropriate discount rates, among other items. The estimated fair value was determined on a preliminary basis using information available in the first quarter of 2020 and was finalized in the first quarter of 2021. The effects of this transaction would not materially impact the Company’s reported results for any period presented, and the transaction did not meet the criteria to be reflected as a discontinued operation. The Company’s investment in Motional is accounted for using the equity method of accounting and Aptiv recognized an equity loss of $291 million, $215 million and $98 million, net of tax, during the years ended December 31, 2022, 2021, and 2020, respectively. Refer to Note 5. Investments in Affiliates for further information on Aptiv’s equity method investments. The pre-tax loss of Aptiv’s autonomous driving operations that were contributed to the joint venture on March 26, 2020, included within Aptiv’s consolidated operating results, was $41 million for the year ended December 31, 2020. Planned Exit from Majority Owned Russian Subsidiary Given the sanctions put in place by the European Union (the “E.U.”), U.S. and other governments, which restrict our ability to conduct business in Russia, we initiated a plan to exit our majority owned subsidiary in Russia in the second quarter of 2022. As a result, the Company determined that this subsidiary, which is reported within the Signal and Power Solutions segment, met the held for sale criteria as of December 31, 2022. Consequently, during the year ended December 31, 2022, the Company recorded a pre-tax charge of $51 million to impair the carrying value of the Russian subsidiary’s net assets to fair value, which was recorded primarily within cost of sales in the consolidated statement of operations. Approximately $25 million of these charges were attributable to the noncontrolling interest based on the noncontrolling shareholder’s economic interest. The remaining assets and liabilities of the subsidiary were reclassified as held for sale and reflect the appropriate valuation allowances. The net assets and liabilities are de minimis and are presented as other current assets and other current liabilities, respectively, in the consolidated balance sheet as of December 31, 2022. These assets and liabilities represent the only balances recorded as held for sale as of December 31, 2022. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based Compensation | SHARE-BASED COMPENSATION Long Term Incentive Plan The PLC LTIP allows for the grant of awards of up to 25,665,448 ordinary shares for long-term compensation. The PLC LTIP is designed to align the interests of management and shareholders. The awards can be in the form of shares, options, stock appreciation rights, restricted stock, RSUs, performance awards and other share-based awards to the employees, directors, consultants and advisors of the Company. The Company has awarded annual long-term grants of RSUs under the PLC LTIP in order to align management compensation with Aptiv’s overall business strategy. In addition, the Company has competitive and market-appropriate ownership requirements for its directors and officers. All of the RSUs granted under the PLC LTIP are eligible to receive dividend equivalents for any dividend paid from the grant date through the vesting date. Dividend equivalents are generally paid out in ordinary shares upon vesting of the underlying RSUs. Board of Director Awards Aptiv has granted RSUs to the Board of Directors as detailed in the table below: Grant Date RSUs granted Grant Date Fair Value (1) Vesting Date Shares Issued Upon Vesting Fair Value of Shares at Issuance Shares Withheld to Cover Withholding Taxes (dollars in millions) April 2022 23,387 $ 2 April 2023 N/A N/A N/A April 2021 17,589 3 April 2022 15,633 $ 2 1,956 April 2020 48,745 3 April 2021 41,896 6 6,849 (1) Determined based on the closing price of the Company’s ordinary shares on the date of the grant. Executive Awards Aptiv has made annual grants of RSUs to its executives in February of each year beginning in 2012. These awards include a time-based vesting portion and a performance-based vesting portion, as well as continuity awards in certain years. The time-based RSUs, which make up 40% (25% prior to 2021) of the awards for Aptiv’s officers and 50% for Aptiv’s other executives, vest ratably over three years beginning on the first anniversary of the grant date. The performance-based RSUs, which make up 60% (75% prior to 2021) of the awards for Aptiv’s officers and 50% for Aptiv’s other executives, vest at the completion of a three-year performance period if certain targets are met. Each executive will receive between 0% and 200% (150% for the 2019 and 2020 grants based on the executive performance grant modification in 2020 described below) of his or her target performance-based award based on the Company’s performance against established company-wide performance metrics, which are: Metric 2020 - 2022 Grants 2018 - 2019 Grants Average return on net assets (1) 33% 50% Cumulative net income 33% 25% Relative total shareholder return (2) 33% 25% (1) Average return on net assets is measured by tax-affected operating income divided by average net working capital plus average net property, plant and equipment for each calendar year during the respective performance period. (2) Relative total shareholder return is measured by comparing the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the end of the performance period to the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the year preceding the grant, including dividends, and assessed against a comparable measure of competitor and peer group companies. The details of the executive grants were as follows: Grant Date RSUs Granted Grant Date Fair Value Time-Based Award Vesting Dates Performance-Based Award Vesting Date (in millions) February 2018 0.63 $ 61 Annually on anniversary of grant date, 2019 - 2021 December 31, 2020 February 2019 0.71 62 Annually on anniversary of grant date, 2020 - 2022 December 31, 2021 February 2020 0.75 62 Annually on anniversary of grant date, 2021 - 2023 December 31, 2022 February 2021 0.44 72 Annually on anniversary of grant date, 2022 - 2024 December 31, 2023 February 2022 0.59 80 Annually on anniversary of grant date, 2023 - 2025 December 31, 2024 The grant date fair value of the RSUs is determined based on the target number of awards issued, the closing price of the Company’s ordinary shares on the date of the grant of the award, including an estimate for forfeitures, and a contemporaneous valuation performed by an independent valuation specialist with respect to the relative total shareholder return awards. Any new executives hired after the annual executive RSU grant date may be eligible to participate in the PLC LTIP. The Company has also granted additional awards to employees in certain periods under the PLC LTIP. Any off cycle grants made for new hires or to other employees are valued at their grant date fair value based on the closing price of the Company’s ordinary shares on the date of such grant. The details of the shares issued upon vesting of the executive grants are as follows: Time-Based Awards Performance-Based Awards Vesting Date Ordinary Shares Issued Upon Vesting Grant Date Fair Value Ordinary Shares Withheld to Cover Withholding Taxes Ordinary Shares Issued Upon Vesting Fair Value of Shares at Issuance Ordinary Shares Withheld to Cover Withholding Taxes (dollars in millions) Q1 2022 354,600 $ 46 140,409 325,283 $ 42 136,143 Q1 2021 449,426 67 177,825 288,074 43 121,609 Q1 2020 468,240 37 181,495 580,390 45 243,080 As a result of the impacts of the COVID-19 pandemic on the Company’s industry and operations, during the fourth quarter of 2020 the financial performance targets associated with February 2018, 2019 and 2020 executive performance grants were modified, which impacted approximately 300 award recipients and resulted in the recognition of approximately $22 million of incremental compensation expense during the year ended December 31, 2020. A summary of RSU activity, including award grants, vesting and forfeitures is provided below: RSUs Weighted Average Grant Date Fair Value (in thousands) Nonvested, January 1, 2020 1,822 $ 89.32 Granted 934 99.14 Vested (773) 98.90 Forfeited (197) 82.93 Nonvested, December 31, 2020 1,786 102.95 Granted 661 161.90 Vested (829) 98.55 Forfeited (274) 118.97 Nonvested, December 31, 2021 1,344 131.40 Granted 939 122.73 Vested (713) 109.36 Forfeited (323) 134.75 Nonvested, December 31, 2022 1,247 136.61 As of December 31, 2022, there were approximately 318,000 Aptiv performance-based RSUs, with a weighted average grant date fair value of $121.04, that were vested but not yet distributed. Aptiv recognized share-based compensation expense of $86 million ($85 million, net of tax), $87 million ($86 million, net of tax) and $60 million ($60 million net of tax) based on the Company’s best estimate of ultimate performance against the respective targets during the years ended December 31, 2022, 2021 and 2020, respectively. Aptiv will continue to recognize compensation expense, based on the grant date fair value of the awards applied to the Company’s best estimate of ultimate performance against the respective targets, over the requisite vesting periods of the awards. Based on the grant date fair value of the awards and the Company’s best estimate of ultimate performance against the respective targets as of December 31, 2022, unrecognized compensation expense on a pre-tax basis of approximately $105 million is anticipated to be recognized over a weighted average period of approximately two years. For the years ended December 31, 2022, 2021 and 2020, respectively, approximately $36 million, $45 million and $33 million of cash was paid and reflected as a financing activity in the statements of cash flows related to the tax withholding for vested RSUs. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING Aptiv operates its core business along the following operating segments, which are grouped on the basis of similar product, market and operating factors: • Signal and Power Solutions, which includes complete electrical architecture and component products. • Advanced Safety and User Experience, which includes vehicle technology and services in advanced safety, user experience and connectivity and security solutions, as well as cloud-native software platforms, autonomous driving technologies and DevOps tools. • Eliminations and Other, which includes i) the elimination of inter-segment transactions, and ii) certain other expenses and income of a non-operating or strategic nature. The accounting policies of the segments are the same as those described in Note 2. Significant Accounting Policies, except that the disaggregated financial results for the segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for which Aptiv’s chief operating decision maker regularly reviews financial results to assess performance of, and make internal operating decisions about allocating resources to, the segments. Generally, Aptiv evaluates segment performance based on stand-alone segment net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges and gains (losses) on business divestitures and other transactions (“Adjusted Operating Income”) and accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, at current market prices. Effective on January 1, 2022, the Company now excludes amortization expense of intangible assets from the calculation of Adjusted Operating Income, as reflected in the definition above. The Company’s management believes that the updated calculation of this financial measure will be more useful to both management and investors in their analysis of the Company’s results of operations due to recent acquisitions. Amortization of intangible assets generally results from a write-up in the value of assets in connection with an acquisition. The Company believes that exclusion of amortization expense will facilitate more comparable operating results of the Company over time, between periods when the Company is more or less acquisitive and allows for improved comparison with both acquisitive and non-acquisitive peer companies. The historical presentation of Adjusted Operating Income in the tables below has been revised to be consistent with this updated calculation. Aptiv’s management utilizes Adjusted Operating Income as the key performance measure of segment income or loss to evaluate segment performance, and for planning and forecasting purposes to allocate resources to the segments, as management believes this measure is most reflective of the operational profitability or loss of Aptiv’s operating segments. Segment Adjusted Operating Income should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Aptiv, which is the most directly comparable financial measure to Adjusted Operating Income that is prepared in accordance with U.S. GAAP. Segment Adjusted Operating Income, as determined and measured by Aptiv, should also not be compared to similarly titled measures reported by other companies. Included below are sales and operating data for Aptiv’s segments for the years ended December 31, 2022, 2021 and 2020, as well as balance sheet data as of December 31, 2022 and 2021. Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Year Ended December 31, 2022: Net sales $ 12,943 $ 4,587 $ (41) $ 17,489 Depreciation and amortization $ 584 $ 178 $ — $ 762 Adjusted operating income $ 1,441 $ 144 $ — $ 1,585 Operating income (2) $ 1,195 $ 68 $ — $ 1,263 Equity income (loss), net of tax $ 20 $ (299) $ — $ (279) Net loss attributable to noncontrolling interest $ (3) $ — $ — $ (3) Net loss attributable to redeemable noncontrolling interest $ (1) $ — $ — $ (1) Capital expenditures $ 573 $ 196 $ 75 $ 844 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Year Ended December 31, 2021: Net sales $ 11,598 $ 4,056 $ (36) $ 15,618 Depreciation and amortization $ 595 $ 178 $ — $ 773 Adjusted operating income (3) $ 1,225 $ 153 $ — $ 1,378 Operating income (4) $ 1,064 $ 125 $ — $ 1,189 Equity income (loss), net of tax $ 15 $ (215) $ — $ (200) Net income attributable to noncontrolling interest $ 19 $ — $ — $ 19 Capital expenditures $ 434 $ 124 $ 53 $ 611 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Year Ended December 31, 2020: Net sales $ 9,522 $ 3,573 $ (29) $ 13,066 Depreciation and amortization $ 588 $ 176 $ — $ 764 Adjusted operating income (3) $ 900 $ 111 $ — $ 1,011 Operating income (5) $ 656 $ 1,462 $ — $ 2,118 Equity income (loss), net of tax $ 15 $ (98) $ — $ (83) Net income attributable to noncontrolling interest $ 18 $ — $ — $ 18 Capital expenditures $ 355 $ 173 $ 56 $ 584 (1) Eliminations and Other includes the elimination of inter-segment transactions. Capital expenditures amounts are attributable to corporate administrative and support functions, including corporate headquarters and certain technical centers. (2) Includes charges recorded in 2022 related to costs associated with employee termination benefits and other exit costs of $30 million for Signal and Power Solutions and $55 million for Advanced Safety and User Experience. (3) As described above, the calculation of adjusted operating income excludes amortization expense effective on January 1, 2022. The historical presentation of adjusted operating income as shown in this table has been revised to be consistent with the updated calculation. (4) Includes charges recorded in 2021 related to costs associated with employee termination benefits and other exit costs of $8 million for Signal and Power Solutions and $16 million for Advanced Safety and User Experience. (5) Includes a pre-tax gain in 2020 of $1.4 billion within Advanced Safety and User Experience for the completion of the Motional autonomous driving joint venture. Also, includes charges recorded in 2020 related to costs associated with employee termination benefits and other exit costs of $90 million for Signal and Power Solutions and $46 million for Advanced Safety and User Experience. Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) Balance as of December 31, 2022: Investment in affiliates $ 126 $ 1,597 $ — $ 1,723 Goodwill (2) $ 2,756 $ 2,350 $ — $ 5,106 Total segment assets (2) $ 14,575 $ 11,864 $ (4,555) $ 21,884 Balance as of December 31, 2021: Investment in affiliates $ 110 $ 1,687 $ — $ 1,797 Goodwill $ 2,475 $ 36 $ — $ 2,511 Total segment assets $ 13,385 $ 7,244 $ (2,622) $ 18,007 (1) Eliminations and Other includes the elimination of inter-segment transactions. (2) Signal and Power Solutions includes amounts recognized as part of the preliminary purchase price allocation following the acquisition of Intercable Automotive in November 2022. Advanced Safety and User Experience includes amounts recognized as part of the preliminary purchase price allocation following the acquisition of Wind River in December 2022. Refer to Note 20. Acquisitions and Divestitures for additional information on these acquisitions. The reconciliation of Adjusted Operating Income to operating income includes, as applicable, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges and gains (losses) on business divestitures and other transactions. The reconciliations of Adjusted Operating Income to net income attributable to Aptiv for the years ended December 31, 2022, 2021 and 2020 are as follows: Signal and Power Solutions Advanced Safety and User Experience Total (in millions) For the Year Ended December 31, 2022: Adjusted operating income $ 1,441 $ 144 $ 1,585 Amortization (139) (10) (149) Restructuring (30) (55) (85) Other acquisition and portfolio project costs (15) (11) (26) Asset impairments (8) — (8) Other charges related to Ukraine/Russia conflict (1) (54) — (54) Operating income $ 1,195 $ 68 1,263 Interest expense (219) Other expense, net (54) Income before income taxes and equity loss 990 Income tax expense (121) Equity loss, net of tax (279) Net income 590 Net loss attributable to noncontrolling interest (3) Net loss attributable to redeemable noncontrolling interest (1) Net income attributable to Aptiv $ 594 (1) Primarily consists of charges related to the designation of our majority owned Russian subsidiary as held for sale as of December 31, 2022. Refer to Note 20. Acquisitions and Divestitures for further information. Signal and Power Solutions Advanced Safety and User Experience Total (in millions) For the Year Ended December 31, 2021: Adjusted operating income $ 1,225 $ 153 $ 1,378 Amortization (141) (7) (148) Restructuring (8) (16) (24) Other acquisition and portfolio project costs (11) (4) (15) Asset impairments (1) (1) (2) Operating income $ 1,064 $ 125 1,189 Interest expense (150) Other expense, net (129) Income before income taxes and equity loss 910 Income tax expense (101) Equity loss, net of tax (200) Net income 609 Net income attributable to noncontrolling interest 19 Net income attributable to Aptiv $ 590 Signal and Power Solutions Advanced Safety and User Experience Total (in millions) For the Year Ended December 31, 2020: Adjusted operating income $ 900 $ 111 $ 1,011 Amortization (138) (6) (144) Restructuring (90) (46) (136) Other acquisition and portfolio project costs (12) (11) (23) Asset impairments (4) (6) (10) Deferred compensation related to acquisitions — (14) (14) Gain on business divestitures and other transactions — 1,434 1,434 Operating income $ 656 $ 1,462 2,118 Interest expense (164) Income before income taxes and equity loss 1,954 Income tax expense (49) Equity loss, net of tax (83) Net income 1,822 Net income attributable to noncontrolling interest 18 Net income attributable to Aptiv $ 1,804 Information concerning principal geographic areas is set forth below. Net sales reflects the manufacturing location and is for the years ended December 31, 2022, 2021 and 2020. Long-lived assets is as of December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Net Sales Long-Lived Assets (1) Net Sales Long-Lived Assets (1) Net Sales Long-Lived Assets (1) (in millions) United States (2) $ 6,292 $ 1,136 $ 5,196 $ 1,010 $ 4,382 $ 985 Other North America 159 291 136 248 112 253 Europe, Middle East & Africa (3) 5,372 1,429 5,179 1,390 4,483 1,440 Asia Pacific (4) 5,274 1,031 4,829 978 3,898 953 South America 392 59 278 51 191 50 Total $ 17,489 $ 3,946 $ 15,618 $ 3,677 $ 13,066 $ 3,681 (1) Includes property, plant and equipment, net of accumulated depreciation and operating lease right-of-use assets. (2) Includes net sales and machinery, equipment and tooling that relate to the Company’s maquiladora operations located in Mexico. These assets are utilized to produce products sold to customers located in the U.S. (3) Includes Aptiv’s country of domicile, Jersey. The Company had no sales or long-lived assets in Jersey in any period. The largest portion of net sales in the Europe, Middle East & Africa region was $1,485 million, $1,436 million and $1,248 million in Germany for the years ended December 31, 2022, 2021 and 2020, respectively. (4) Net sales and long-lived assets in Asia Pacific are primarily attributable to China. |
Fourth Quarter Data (Unaudited)
Fourth Quarter Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | FOURTH QUARTER DATA (UNAUDITED) The following is a condensed summary of the Company’s unaudited results of operations for the three months ended December 31, 2022 and 2021. Three Months Ended December 31, 2022 2021 (in millions, except per share amounts) Net sales $ 4,640 $ 4,134 Cost of sales 3,827 3,543 Gross margin $ 813 $ 591 Operating income $ 440 $ 260 Net income (1) 266 39 Net income attributable to Aptiv 249 31 Net income attributable to ordinary shareholders 233 15 Basic net income per share: Basic net income per share attributable to ordinary shareholders $ 0.86 $ 0.06 Weighted average number of basic shares outstanding 270.95 270.52 Diluted net income per share: Diluted net income per share attributable to ordinary shareholders $ 0.86 $ 0.06 Weighted average number of diluted shares outstanding 271.40 271.47 (1) In the fourth quarter of 2022, Aptiv incurred approximately $53 million in transaction costs related to the acquisitions of Wind River and Intercable Automotive. In the fourth quarter of 2021, Aptiv recognized a loss on extinguishment of debt of $126 million. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy. Nature of Goods and Services The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. Aptiv recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed. Although production parts are highly customized with no alternative use, Aptiv does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e. estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days. The Company also generates revenue from the sale of software licenses, post delivery support and maintenance and professional software services, primarily from Wind River, which the Company acquired in December 2022. Refer to Note 20. Acquisitions and Divestitures for further information on this acquisition. The Company generally recognizes revenue for software licenses and professional software services at a point in time upon delivery or when the services are provided. Revenue from post delivery support and maintenance for software contracts are recognized over time on a ratable basis over the contract term. Under certain of these arrangements, timing may differ between revenue recognition and billing. Disaggregation of Revenue Revenue generated from Aptiv’s operating segments is disaggregated by primary geographic market in the following tables for the years ended December 31, 2022, 2021 and 2020. Information concerning geographic market reflects the manufacturing location. For the Year Ended December 31, 2022: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 5,026 $ 1,435 $ (10) $ 6,451 Europe, Middle East and Africa 3,289 2,094 (11) 5,372 Asia Pacific 4,236 1,058 (20) 5,274 South America 392 — — 392 Total net sales $ 12,943 $ 4,587 $ (41) $ 17,489 For the Year Ended December 31, 2021: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 4,135 $ 1,204 $ (7) $ 5,332 Europe, Middle East and Africa 3,387 1,802 (10) 5,179 Asia Pacific 3,798 1,050 (19) 4,829 South America 278 — — 278 Total net sales $ 11,598 $ 4,056 $ (36) $ 15,618 For the Year Ended December 31, 2020: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 3,527 $ 970 $ (3) $ 4,494 Europe, Middle East and Africa 2,869 1,625 (11) 4,483 Asia Pacific 2,935 978 (15) 3,898 South America 191 — — 191 Total net sales $ 9,522 $ 3,573 $ (29) $ 13,066 Contract Balances As of December 31, 2022, the balance of contract liabilities, which solely consisted of deferred revenue, was $99 million (of which $90 million was recorded in other current liabilities and $9 million was recorded in other long-term liabilities). There were no contract liabilities recorded as of December 31, 2021. Contract assets include amounts related to the Company’s contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. As of December 31, 2022, the balance of contract assets was $67 million (of which $24 million was recorded in other current assets and $43 million was recorded in other long-term assets). There were no contract assets recorded as of December 31, 2021. The increase in our contract liabilities and contract assets during the year ended December 31, 2022 is due to the acquisition of Wind River. Remaining Performance Obligations For production parts, customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. There are no contracts for production parts outstanding beyond one year. Aptiv does not enter into fixed long-term supply agreements. As permitted, Aptiv does not disclose information about remaining performance obligations that have original expected durations of one year or less for production parts. Customer contracts for sales of software and related services are generally represented by a sales contract or purchase order with contract durations typically ranging from one to three years. Remaining performance obligations include contract liabilities and unbilled amounts that will be recognized as revenue in future periods. Transaction price allocated to the remaining performance obligation is based on the standalone selling price. The value of the transaction price allocated to remaining performance obligations under software and related service contracts as of December 31, 2022 was approximately $135 million. The Company expects to recognize approximately 67% of remaining performance obligations as revenue in the next twelve months, and the remainder thereafter. Costs to Obtain a Contract From time to time, Aptiv makes payments to customers in conjunction with ongoing business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, or upfront fees, meet the criteria to be considered a cost to obtain a contract as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. As of December 31, 2022 and 2021, Aptiv has recorded $78 million (of which $17 million was classified within other current assets and $61 million was classified within other long-term assets) and $92 million (of which $34 million was classified within other current assets and $58 million was classified within other long-term assets), respectively, related to these capitalized upfront fees. Capitalized upfront fees are amortized to revenue based on the transfer of goods and services to the customer for which the upfront fees relate, which typically range from three to five years. There have been no impairment losses in relation to the costs capitalized. The amount of amortization to net sales was $28 million, $31 million and $18 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES Lease Portfolio The Company has operating and finance leases for real estate, office equipment, automobiles, forklifts and certain other equipment. The Company's leases have remaining lease terms of one year to 30 years, some of which include options to extend the leases for up to eight years, and some of which include options to terminate the leases within one year. Certain of our lease agreements include rental payments which are adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. When available, we use the rate implicit in the lease to discount lease payments to present value; however, most of our leases do not provide a readily determinable implicit rate. Therefore, we must estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. The incremental borrowing rate is not a quoted rate and is primarily derived by applying a spread over U.S. Treasury rates with a similar duration to the Company’s lease payments. The spread utilized is based on the Company’s credit rating and the impact of full collateralization. Related Party Lease Agreement Aptiv subleases certain office space to Motional, our autonomous driving joint venture, which has a remaining lease term of approximately six years as of December 31, 2022. Total income under the agreement was $4 million, $3 million and $3 million during the years ended December 31, 2022, 2021 and 2020, respectively. The sublease income and Aptiv’s associated operating lease cost are recorded to cost of sales in the consolidated statement of operations. The Company believes the terms of the lease agreement have not significantly been affected by the fact the Company and the lessee are related parties. The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Lease cost: Finance lease cost: Amortization of right-of-use assets $ 4 $ 4 $ 5 Interest on lease liabilities 1 1 1 Total finance lease cost 5 5 6 Operating lease cost 122 119 111 Short-term lease cost 14 13 13 Variable lease cost 1 — — Sublease income (1) (5) (4) (4) Total lease cost $ 137 $ 133 $ 126 (1) Sublease income excludes rental income from owned properties of $8 million, $10 million and $10 million for the years ended December 31, 2022, 2021 and 2020, respectively, which is included in other income, net. Supplemental cash flow and other information related to leases was as follows: Year Ended December 31, 2022 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases $ 1 $ 1 $ 1 Operating cash flows for operating leases 116 122 107 Financing cash flows for finance leases 4 4 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 102 $ 74 $ 35 Finance leases 3 1 1 Supplemental balance sheet information related to leases was as follows: December 31, 2022 2021 (dollars in millions) Operating leases: Operating lease right-of-use assets $ 451 $ 383 Accrued liabilities $ 109 $ 92 Long-term operating lease liabilities 361 304 Total operating lease liabilities $ 470 $ 396 Finance leases: Property and equipment $ 35 $ 26 Less: accumulated depreciation (19) (15) Total property, net $ 16 $ 11 Short-term debt $ 6 $ 3 Long-term debt 12 10 Total finance lease liabilities $ 18 $ 13 Weighted average remaining lease term: Operating leases 6 years 6 years Finance leases 4 years 5 years Weighted average discount rate: Operating leases 3.25 % 3.00 % Finance leases 4.00 % 3.50 % Maturities of lease liabilities were as follows: Operating Finance (in millions) As of December 31, 2022 2023 $ 121 $ 6 2024 95 5 2025 78 4 2026 65 3 2027 49 2 Thereafter 106 1 Total lease payments 514 21 Less: imputed interest (44) (3) Total $ 470 $ 18 As of December 31, 2022, the Company has entered into additional operating leases, primarily for real estate, that have not yet commenced of approximately $55 million. These operating leases are anticipated to commence primarily in 2023 with lease terms of five |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Consolidation, Policy | Consolidation —The consolidated financial statements include the accounts of Aptiv and the subsidiaries in which Aptiv holds a controlling financial or management interest and variable interest entities of which Aptiv has determined that it is the primary beneficiary. Aptiv’s share of the earnings or losses of non-controlled affiliates, over which Aptiv exercises significant influence (generally a 20% to 50% ownership interest), is included in the consolidated operating results using the equity method of accounting. When Aptiv does not have the ability to exercise significant influence (generally when ownership interest is less than 20%), investments in non-consolidated affiliates without readily determinable fair value are measured at cost, less impairments, adjusted for observable price changes in orderly transactions for identical or similar investments of the same issuer, while investments in publicly traded equity securities are measured at fair value based on quoted prices for identical assets on active market exchanges as of each reporting date. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss is recorded, which is measured as the difference between carrying value and estimated fair value. Estimated fair value is generally determined using an income approach based on discounted cash flows or negotiated transaction values. Intercompany transactions and balances between consolidated Aptiv businesses have been eliminated. During the years ended December 31, 2022, 2021 and 2020, Aptiv received dividends of $5 million, $6 million and $9 million, respectively, from one of its equity method investments. The dividends were recognized as a reduction to the investment and represented a return on investment in cash flows from operating activities. Aptiv's equity investments without readily determinable fair value totaled $67 million and $30 million as of December 31, 2022 and 2021, respectively, and are classified within other long-term assets in the consolidated balance sheets. Aptiv's investments in publicly traded equity securities totaled $17 million and $66 million as of December 31, 2022 and 2021, respectively, and are classified within other long-term assets in the consolidated balance sheet. Refer to Note 5. Investments in Affiliates for further information regarding Aptiv's equity investments. In 2022, the Company acquired 85% of the equity interests of Intercable Automotive Solutions (“Intercable Automotive”). Concurrent with the acquisition, the Company entered into an agreement with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncontrolling interest holders with the right to sell, the remaining 15% of Intercable Automotive for cash at a contractually defined value beginning in 2026. As a result of this redemption feature, the Company recorded the redeemable noncontrolling interest at its acquisition-date fair value to temporary equity in the consolidated balance sheet. The redeemable noncontrolling interest is adjusted each reporting period for the income (loss) attributable to the noncontrolling interest, and for any measurement period adjustments necessary to record the redeemable noncontrolling interest at the higher of its redemption value, assuming it was redeemable at the reporting date, or its carrying value. Any measurement period adjustments are recorded to retained earnings, with a corresponding increase or reduction to net income attributable to Aptiv. Refer to Note 20. Acquisitions and Divestitures for further information regarding this acquisition and the redeemable noncontrolling interest. |
Use of Estimates, Policy | Use of estimates —Preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect amounts reported therein. Generally, matters subject to estimation and judgment include amounts related to accounts receivable realization, inventory obsolescence, asset impairments, useful lives of intangible and fixed assets, deferred tax asset valuation allowances, income taxes, pension benefit plan assumptions, accruals related to litigation, warranty costs, environmental remediation costs, contingent consideration arrangements, redeemable noncontrolling interest, worker’s compensation accruals and healthcare accruals. Due to the inherent uncertainty involved in making estimates, including the duration and severity of the impacts of the ongoing global supply chain disruptions and the conflict between Ukraine and Russia, actual results reported in future periods may be based upon amounts that differ from those estimates. |
Revenue Recognition, Policy | Revenue recognition —Revenue is measured based on consideration specified in a contract with a customer. Customer contracts for production parts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. Customer contracts for software licenses are generally represented by a sales contract or purchase order. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue from software licenses is generally recognized at a point in time upon delivery while revenue from post delivery support and maintenance for software contracts are recognized over time on a ratable basis over the contract term. From time to time, Aptiv enters into pricing agreements with its customers that provide for price reductions, some of which are conditional upon achieving certain joint cost saving targets. In these instances, revenue is recognized based on the agreed-upon price at the time of shipment. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. In addition, from time to time, Aptiv makes payments to customers in conjunction with ongoing business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, or upfront fees, meet the criteria to be considered a cost to obtain a contract as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. Aptiv collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with a revenue-producing transaction between the Company and the Company’s customers. These taxes may include, but are not limited to, sales, use, value-added, and some excise taxes. Aptiv reports the collection of these taxes on a net basis (excluded from revenues). Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in cost of sales. Refer to Note 24. Revenue for further information. Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy. Nature of Goods and Services The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. Aptiv recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed. Although production parts are highly customized with no alternative use, Aptiv does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e. estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days. The Company also generates revenue from the sale of software licenses, post delivery support and maintenance and professional software services, primarily from Wind River, which the Company acquired in December 2022. Refer to Note 20. Acquisitions and Divestitures for further information on this acquisition. The Company generally recognizes revenue for software licenses and professional software services at a point in time upon delivery or when the services are provided. Revenue from post delivery support and maintenance for software contracts are recognized over time on a ratable basis over the contract term. Under certain of these arrangements, timing may differ between revenue recognition and billing. |
Net Income Per Share, Policy | Net income per share —Basic net income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock and if-converted methods. The if-converted method is used to determine if the impact of conversion of the 5.50% Mandatory Convertible Preferred Shares, Series A, $0.01 par value per share (the “MCPS”) into ordinary shares is more dilutive than the MCPS dividends to net income per share. If so, the MCPS are assumed to have been converted at the later of the beginning of the period or the time of issuance, and the resulting ordinary shares are included in the denominator and the MCPS dividends are added back to the numerator. Unless otherwise noted, share and per share amounts included in these notes are on a diluted basis. Refer to Note 15. Shareholders’ Equity and Net Income Per Share for additional information including the calculation of basic and diluted net income per share. |
Research and Development, Policy | Research and development —Costs are incurred in connection with research and development programs that are expected to contribute to future earnings. Such costs are charged against income as incurred. Total research and development expenses, including engineering, net of customer reimbursements, were approximately $1,120 million, $1,030 million and $1,024 million for the years ended December 31, 2022, 2021 and 2020, respectively. |
Cash and Cash Equivalents, Policy | Cash and cash equivalents —Cash and cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less, for which the book value approximates fair value. |
Accounts Receivable, Policy | Accounts receivable —Aptiv enters into agreements to sell certain of its accounts receivable, primarily in Europe. Sales of receivables are accounted for in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 860, Transfers and Servicing (“ASC 860”). Agreements which result in true sales of the transferred receivables, as defined in ASC 860, which occur when receivables are transferred without recourse to the Company, are excluded from amounts reported in the consolidated balance sheets. Cash proceeds received from such sales are included in operating cash flows. Agreements that allow Aptiv to maintain effective control over the transferred receivables and which do not qualify as a sale, as defined in ASC 860, are accounted for as secured borrowings and recorded in the consolidated balance sheets within accounts receivable, net and short-term debt. The expenses associated with receivables factoring are recorded in the consolidated statements of operations within interest expense. The Company exchanges certain amounts of accounts receivable, primarily in the Asia Pacific region, for bank notes with original maturities greater than three months. The collection of such bank notes are included in operating cash flows based on the substance of the underlying transactions, which are operating in nature. Bank notes held by the Company with original |
Credit Loss, Policy | Credit losses —Aptiv is exposed to credit losses primarily through the sale of vehicle components and services. Aptiv assesses the creditworthiness of a counterparty by conducting ongoing credit reviews, which considers the Company’s expected billing exposure and timing for payment, as well as the counterparty’s established credit rating. When a credit rating is not available, the Company’s assessment is based on an analysis of the counterparty’s financial statements. Aptiv also considers contract terms and conditions, country and political risk, and business strategy in its evaluation. Based on the outcome of this review, the Company establishes a credit limit for each counterparty. The Company continues to monitor its ongoing credit exposure through active review of counterparty balances against contract terms and due dates, which includes timely account reconciliation, payment confirmation and dispute resolution. The Company may also employ collection agencies and legal counsel to pursue recovery of defaulted receivables, if necessary. Aptiv primarily utilizes historical loss and recovery data, combined with information on current economic conditions and reasonable and supportable forecasts to develop the estimate of the allowance for doubtful accounts in accordance with ASC Topic 326, Financial Instruments – Credit Losses (“ASC 326”). As of December 31, 2022 and December 31, 2021, the Company reported $3,433 million and $2,784 million, respectively, of accounts receivable, net of the allowances, which includes the allowance for doubtful accounts of $52 million and $37 million, respectively. The provision for doubtful accounts was $27 million, $22 million, and $39 million for the years ended December 31, 2022, 2021 and 2020, respectively. Other changes in the allowance were not material for the year ended December 31, 2022. |
Inventories, Policy | Inventories —As of December 31, 2022 and 2021, inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value, including direct material costs and direct and indirect manufacturing costs. Refer to Note 3. Inventories for additional information. Obsolete inventory is identified based on analysis of inventory for known obsolescence issues, and, generally, the market value of inventory on hand in excess of one year’s supply is fully-reserved. From time to time, payments may be received from suppliers. These payments from suppliers are recognized as a reduction of the cost of the material acquired during the period to which the payments relate. In some instances, supplier rebates are received in conjunction with or concurrent with the negotiation of future purchase agreements and these amounts are amortized over the prospective agreement period. |
Property, Policy | Property —Major improvements that materially extend the useful life of property are capitalized. Expenditures for repairs and maintenance are charged to expense as incurred. Depreciation is determined based on a straight-line method over the estimated useful lives of groups of property. Leasehold improvements under finance leases are depreciated over the period of the lease or the life of the property, whichever is shorter. Refer to Note 6. Property, Net and Note 25. Leases for additional information. |
Pre-production costs related to long-term supply agreements, Policy | Pre-production costs related to long-term supply agreements —The Company incurs pre-production engineering, development and tooling costs related to products produced for its customers under long-term supply agreements. Engineering, testing and other costs incurred in the design and development of production parts are expensed as incurred, unless the costs are reimbursable, as specified in a customer contract. As of December 31, 2022 and 2021, $250 million and $286 million of such contractually reimbursable costs were capitalized, respectively. These amounts are recorded within other current and other long-term assets in the consolidated balance sheets, as further detailed in Note 4. Assets. Special tools represent Aptiv-owned tools, dies, jigs and other items used in the manufacture of customer components that will be sold under long-term supply arrangements, the costs of which are capitalized within property, plant and equipment if the Company has title to the assets. Special tools also include capitalized unreimbursed pre-production tooling costs related to customer-owned tools for which the customer has provided Aptiv a non-cancellable right to use the tool. Aptiv-owned special tool balances are depreciated over the expected life of the special tool or the life of the related vehicle program, whichever is shorter. The unreimbursed costs incurred related to customer-owned special tools that are not subject to reimbursement are capitalized and depreciated over the expected life of the special tool or the life of the related vehicle program, whichever is shorter. At December 31, 2022 and 2021, the special tools balance, net of accumulated depreciation, was $437 million and $405 million, respectively, included within property, net in the consolidated balance sheets. As of December 31, 2022 and 2021, the Aptiv-owned special tools balance was $350 million and $303 million, respectively, and the customer-owned special tools balance was $87 million and $102 million, respectively. |
Valuation of Long-Lived Assets, Policy | Valuation of long-lived assets —The carrying value of long-lived assets held for use, including definite-lived intangible assets, is periodically evaluated when events or circumstances warrant such a review. The carrying value of a long-lived asset held for use is considered impaired when the anticipated separately identifiable undiscounted cash flows from the asset are less than the carrying value of the asset. In that event, a loss is recognized based on the amount by which the carrying value exceeds the estimated fair value of the long-lived asset. Impairment losses on long-lived assets held for sale are recognized if the |
Leases, Policy | Leases —The Company accounts for leases in accordance with FASB ASC Topic 842, Leases . The Company determines whether an arrangement is a lease at inception. For leases where the Company is the lessee, a lease liability and a right-of-use asset is recognized for all leases, with the exception of short-term leases with terms of twelve months or less. The lease liability represents the lessee’s obligation to make lease payments arising from a lease, and is measured as the present value of the lease payments. As the rate implicit in the lease is usually not known at lease commencement, the Company uses its incremental borrowing rate to discount the lease obligation. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and is measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the Company’s initial direct costs. The Company applies the short-term lease exception, which results in a single lease cost being allocated over the lease term, generally on a straight-line basis, for leases with a term of twelve months or less. These leases are not presented in the consolidated balance sheets. Additionally, the Company applies the practical expedient to not separate lease components from non-lease components and instead accounts for both as a single lease component for all asset classes. Refer to Note 25. Leases for additional information. |
Assets and Liabilities Held for Sale, Policy | Assets and liabilities held for sale —The Company considers assets to be held for sale when management, having the appropriate authority, approves and commits to a formal plan to actively market the assets for sale at a price reasonable in relation to their estimated fair value, the assets are available for immediate sale in their present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the assets is probable and expected to be completed within one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, the Company records the assets at the lower of their carrying value or their estimated fair value, less cost to sell, and ceases to record depreciation expense on the assets. Assets and liabilities of a discontinued operation are reclassified as held for sale for all comparative periods presented in the consolidated balance sheets. For assets that meet the held for sale criteria but do not meet the definition of a discontinued operation, the Company reclassifies the assets and liabilities in the period in which the held for sale criteria are met, but does not reclassify prior period amounts. |
Intangible Assets, Policy | Intangible assets —The Company amortizes definite-lived intangible assets over their estimated useful lives. The Company has definite-lived intangible assets related to patents and developed technology, customer relationships and trade names. Indefinite-lived in-process research and development intangible assets are not amortized, but are tested for impairment annually, or more frequently when indicators of potential impairment exist, until the completion or abandonment of the associated research and development efforts. Upon completion of the projects, the assets will be amortized over the expected economic life of the asset, which will be determined on that date. Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense. The Company also has intangible assets related to acquired trade names that are classified as indefinite-lived when there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. These indefinite-lived trade name assets are tested for impairment annually, or more frequently when indicators of potential impairment exist. Costs to renew or extend the term of acquired intangible assets are recognized as expense as incurred. No intangible asset impairment charges were recorded during the years ended December 31, 2022, 2021 and 2020. Refer to Note 7. Intangible Assets and Goodwill for additional information. |
Goodwill, Policy | Goodwill —Goodwill is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations. The Company tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment exist. The Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company tests for goodwill impairment at the reporting unit level. Our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The impairment test involves first qualitatively assessing goodwill for impairment. If the qualitative assessment is not met the Company then performs a quantitative assessment by comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the estimated fair value exceeds carrying value, then we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its estimated fair value, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the amount of goodwill allocated to the reporting unit. Refer to Note 20. Acquisitions and Divestitures, for further information on the goodwill attributable to the Company’s acquisitions. Goodwill impairment —In the fourth quarter of 2022, 2021 and 2020, the Company completed a qualitative goodwill impairment assessment, and after evaluating the results, events and circumstances of the Company, we concluded that sufficient evidence existed to assert qualitatively that it was more likely than not that the estimated fair value of each reporting unit remained in excess of its carrying values. Therefore, a quantitative impairment assessment was not necessary. No goodwill impairments were recorded in 2022, 2021 or 2020. Refer to Note 7. Intangible Assets and Goodwill for additional information. |
Warranty and Product Recalls, Policy | Warranty and product recalls —Expected warranty costs for products sold are recognized at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of our warranty accrual at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Refer to Note 9. Warranty Obligations for additional information. |
Income Taxes, Policy | Income taxes —Deferred tax assets and liabilities reflect temporary differences between the amount of assets and liabilities for financial and tax reporting purposes. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines it is more likely than not that the deferred tax assets will not be realized in the future, the valuation allowance adjustment to the deferred tax assets will be charged to earnings in the period in which the Company makes such a determination. In determining whether an uncertain tax position exists, the Company determines, based solely on its technical merits, whether the tax position is more likely than not to be sustained upon examination, and if so, a tax benefit is measured on a cumulative probability basis that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. As it relates to changes in accumulated other comprehensive income (loss), the Company’s policy is to release tax effects from accumulated other comprehensive income (loss) when the underlying components affect earnings. Refer to Note 14. Income Taxes for additional information. |
Foreign Currency Translation, Policy | Foreign currency translation —Assets and liabilities of non-U.S. subsidiaries that use a currency other than U.S. dollars as their functional currency are translated to U.S. dollars at end-of-period currency exchange rates. The consolidated statements of operations of non-U.S. subsidiaries are translated to U.S. dollars at average-period currency exchange rates. The effect of translation for non-U.S. subsidiaries is generally reported in other comprehensive income (“OCI”). The accumulated foreign currency translation adjustment related to an investment in a foreign subsidiary is reclassified to net income upon sale or upon complete or substantially complete liquidation of the respective entity. The effect of remeasurement of assets and liabilities of non-U.S. subsidiaries that use the U.S. dollar as their functional currency is primarily included in cost of sales. Also included in cost of sales are gains and losses arising from transactions denominated in a currency other than the functional currency of a particular entity. Net foreign currency transaction losses of $30 million were included in the consolidated statements of operations for the year ended December 31, 2022. There were no net foreign currency transaction gains or losses for the year ended December 31, 2021. Net foreign currency transaction losses of $20 million were included in the consolidated statements of operations for the year ended December 31, 2020. |
Restructuring, Policy | Restructuring —Aptiv continually evaluates alternatives to align the business with the changing needs of its customers and to lower operating costs. This includes the realignment of its existing manufacturing capacity, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements or statutory requirements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination. Contract termination costs and certain early termination lease costs are recorded when contracts are terminated. All other exit costs are expensed as incurred. Refer to Note 10. Restructuring for additional information. |
Customer Concentations, Policy | Customer concentrations —As reflected in the table below, net sales to General Motors (“GM”), Stellantis N.V. (“Stellantis”), Ford Motor Company (“Ford”) and Volkswagen Group (“VW”), Aptiv’s four largest customers, totaled approximately 34%, 35% and 38% of our total net sales for the years ended December 31, 2022, 2021 and 2020, respectively. Both of Aptiv’s operating segments recognized net sales to these customers during each period presented. Percentage of Total Net Sales Accounts Receivable Year Ended December 31, December 31, December 31, 2022 2021 2020 (in millions) GM 9 % 8 % 9 % $ 231 $ 208 Stellantis (1) 9 % 11 % 12 % 325 317 Ford 8 % 7 % 7 % 250 220 VW 8 % 9 % 10 % 186 163 (1) On January 16, 2021, Fiat Chrysler Automobiles N.V. (“FCA”) and Peugeot Citroën (“PSA”) merged to form Stellantis. Net sales to FCA and PSA before the date of the merger are included in net sales to Stellantis in the table above for the years ended December 31, 2021 and 2020. |
Derivative Financial Instruments, Policy | Derivative financial instruments —All derivative instruments are required to be reported on the balance sheet at fair value unless the transactions qualify and are designated as normal purchases or sales. Changes in fair value are reported currently through earnings unless they meet hedge accounting criteria. Exposure to fluctuations in currency exchange rates, interest rates and certain commodity prices are managed by entering into a variety of forward and option contracts and swaps with various counterparties. Such financial exposures are managed in accordance with the policies and procedures of Aptiv. Aptiv does not enter into derivative transactions for speculative or trading purposes. As part of the hedging program approval process, Aptiv identifies the specific financial risk which the derivative transaction will minimize, the appropriate hedging instrument to be used to reduce the risk and the correlation between the financial risk and the hedging instrument. Purchase orders, sales contracts, letters of intent, capital planning forecasts and historical data are used as the basis for determining the anticipated values of the transactions to be hedged. Aptiv does not enter into derivative transactions that do not have a high correlation with the underlying financial risk. Hedge positions, as well as the correlation between the transaction risks and the hedging instruments, are reviewed on an ongoing basis. Foreign exchange forward contracts are accounted for as hedges of firm or forecasted foreign currency commitments or foreign currency exposure of the net investment in certain foreign operations to the extent they are designated and assessed as highly effective. All foreign exchange contracts are marked to market on a current basis. Commodity swaps are accounted for as hedges of firm or anticipated commodity purchase contracts to the extent they are designated and assessed as effective. All other commodity derivative contracts that are not designated as hedges are either marked to market on a current basis or are exempted from mark to market accounting as normal purchases. At December 31, 2022 and 2021, the Company’s exposure to movements in interest rates was not hedged with derivative instruments. Refer to Note 17. Derivatives and Hedging Activities and Note 18. Fair Value of Financial Instruments for additional information. |
Extended Disability Benefits, Policy | Extended disability benefits —Costs associated with extended disability benefits provided to inactive employees are accrued throughout the duration of their active employment. Workforce demographic data and historical experience are utilized to develop projections of time frames and related expense for post-employment benefits. |
Workers' Compensation Benefits, Policy | Workers’ compensation benefits —Workers’ compensation benefit accruals are actuarially determined and are subject to the existing workers’ compensation laws that vary by location. Accruals for workers’ compensation benefits represent the discounted future cash expenditures expected during the period between the incidents necessitating the employees to be idled and the time when such employees return to work, are eligible for retirement or otherwise terminate their employment. |
Share-based Compensation, Policy | Share-based compensation —The Company’s share-based compensation arrangements consist of the Aptiv PLC Long Term Incentive Plan, as amended and restated effective April 23, 2015 (the “PLC LTIP”), under which grants of restricted stock units (“RSUs”) have been made each year. The RSU awards include a time-based vesting portion and a performance-based vesting portion. The performance-based vesting portion includes performance and market conditions in addition to service conditions. The grant date fair value of the RSUs is determined based on the closing price of the Company’s ordinary shares on the date of the grant of the award, including an estimate for forfeitures, or a contemporaneous valuation performed by an independent valuation specialist with respect to awards with market conditions. Compensation expense is recognized based upon the grant date fair value of the awards applied to the Company’s best estimate of ultimate performance against the respective targets on a straight-line basis over the requisite vesting period of the awards. The performance conditions require management to make assumptions regarding the likelihood of achieving certain performance goals. Changes in these performance assumptions, as well as differences in actual results from management’s estimates, could result in estimated or actual values different from previously estimated fair values. Refer to Note 21. Share-Based Compensation for additional information. |
Business Combinations, Policy | Business combinations —The Company accounts for its business combinations in accordance with the accounting guidance in FASB ASC 805, Business Combinations . The purchase price of an acquired business is allocated to its identifiable assets and liabilities based on estimated fair values. The excess of the purchase price over the amount allocated to the assets and liabilities, if any, is recorded as goodwill. Determining the fair values of assets acquired and liabilities assumed requires management’s judgment, the utilization of independent appraisal firms and often involves the use of significant estimates and assumptions with respect to the timing and amount of future cash flows, market rate assumptions, actuarial assumptions, and appropriate discount rates, among other items. Refer to Note 20. Acquisitions and Divestitures for additional information. |
Government incentives, Policy | Government incentives —From time to time, Aptiv receives government incentives in the form of cash grants and other incentives in return for past or future compliance with certain conditions. The Company accounts for funds received from government grants that are not in the form of an income tax credit, revenue from a contract with a customer or a loan, by analogy to International Accounting Standards 20, Accounting for Government Grants and Disclosure of Government Assistance . Accordingly, we recognize funds we receive from government grants in the consolidated statement of operations when there is reasonable assurance that Aptiv will comply with the conditions associated with the grant and the grants will be received. Recognition occurs on a systematic basis over the periods in which Aptiv recognizes, as expenses, the related costs for which the grants are intended to defray. Aptiv is eligible to receive certain government grants because we engage in qualifying capital investments and other activities as defined by the relevant governmental entities awarding the grants. Typically, grant agreements require that Aptiv complies with certain conditions, including committing to minimum levels of capital investment and maintenance of a minimum level of headcount at the impacted manufacturing site. Aptiv generally recognizes government grants of an operating nature as a reduction to operating expenses (primarily cost of sales Aptiv records capital-related grants as a reduction to property, plant and equipment, net in the consolidated balance sheets, which ultimately results in a reduction to depreciation expense over the useful life of the corresponding asset. Capital-related grants reduced gross property, plant and equipment by approximately $10 million during the year ended December 31, 2022. Amounts recorded as due from and due to governmental entities in the consolidated balance sheets were not significant for any period presented. Our agreements with governmental entities have an average duration of five years and certain of these agreements include provisions for the recapture of funding if the Company fails to comply with various aspects of the agreement. |
Recently Adopted Accounting Pronouncements, Policy | Recently adopted accounting pronouncements —In June 2022, the FASB issued Accounting Standards Update (“ASU”) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The amendments in this update clarify the guidance when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduces new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. As permitted, the Company elected to early adopt this guidance effective in the second quarter of 2022. The adoption of this guidance resulted in incremental disclosures in the Company’s financial statements. Aptiv adopted ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance in the first quarter of 2022. This guidance is intended to improve the transparency of government assistance received by most business entities by requiring disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on the registrant’s financial statements. The adoption of this guidance resulted in insignificant incremental disclosures in the Company’s financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This guidance requires that an acquirer recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). At the acquisition date, an acquirer should account for the related revenue contracts in accordance with ASC 606 as if it had originated the contracts. As permitted, the Company elected to early adopt this guidance effective January 1, 2022. This guidance was applied to the Company’s 2022 business combinations and will be applied to any business combinations that occur in future periods. Recently issued accounting pronouncements not yet adopted —In September 2022, the FASB issued ASU 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations . The amendments in this update intend to improve the transparency of supplier finance programs by requiring a buyer in a supplier finance program to disclose sufficient information about the program to allow a user of the financial statements to understand the program’s nature, key terms, outstanding balances and activity during the period. The new guidance will be applied retrospectively and is effective for fiscal years beginning after December 15, 2022, except for the amendment on rollforward information, which is to be applied prospectively and is effective for fiscal years beginning after December 15, 2023. Early |
Pensions, Policy | Certain of Aptiv’s non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based on negotiated amounts for each year of service. Aptiv’s primary non-U.S. plans are located in France, Germany, Mexico, Portugal and the United Kingdom (“U.K.”). The U.K. and certain Mexican plans are funded. In addition, Aptiv has defined benefit plans in South Korea, Turkey and Italy for which amounts are payable to employees immediately upon separation. The obligations for these plans are recorded over the requisite service period. Aptiv sponsors a Supplemental Executive Retirement Program (“SERP”) for those employees who were U.S. executives of the former Delphi Corporation prior to September 30, 2008 and were still U.S. executives of the Company on October 7, 2009, the effective date of the program. This program is unfunded. Executives receive benefits over five years after an involuntary or voluntary separation from Aptiv. The SERP is closed to new members. |
Fair Value Measurement, Policy | Fair value is defined as the exchange price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value measurements are based on one or more of the following three valuation techniques: Market —This approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income —This approach uses valuation techniques to convert future amounts to a single present value amount based on current market expectations. Cost —This approach is based on the amount that would be required to replace the service capacity of an asset (replacement cost). Aptiv uses the following fair value hierarchy prescribed by U.S. GAAP, which prioritizes the inputs used to measure fair value as follows: Level 1 —Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 —Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Typically, assets and liabilities are considered to be fair valued on a recurring basis if fair value is measured regularly. However, if the fair value measurement of an instrument does not necessarily result in a change in the amount recorded on the consolidated balance sheets, assets and liabilities are considered to be fair valued on a nonrecurring basis. This generally occurs when accounting guidance requires assets and liabilities to be recorded at the lower of cost or fair value, or assessed for impairment. |
Segment Reporting, Policy | The accounting policies of the segments are the same as those described in Note 2. Significant Accounting Policies, except that the disaggregated financial results for the segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for which Aptiv’s chief operating decision maker regularly reviews financial results to assess performance of, and make internal operating decisions about allocating resources to, the segments. Generally, Aptiv evaluates segment performance based on stand-alone segment net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges and gains (losses) on business divestitures and other transactions (“Adjusted Operating Income”) and accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, at current market prices. Effective on January 1, 2022, the Company now excludes amortization expense of intangible assets from the calculation of Adjusted Operating Income, as reflected in the definition above. The Company’s management believes that the updated calculation of this financial measure will be more useful to both management and investors in their analysis of the Company’s results of operations due to recent acquisitions. Amortization of intangible assets generally results from a write-up in the value of assets in connection with an acquisition. The Company believes that exclusion of amortization expense will facilitate more comparable operating results of the Company over time, between periods when the Company is more or less acquisitive and allows for improved comparison with both acquisitive and non-acquisitive peer companies. The historical presentation of Adjusted Operating Income in the tables below has been revised to be consistent with this updated calculation. Aptiv’s management utilizes Adjusted Operating Income as the key performance measure of segment income or loss to evaluate segment performance, and for planning and forecasting purposes to allocate resources to the segments, as management believes this measure is most reflective of the operational profitability or loss of Aptiv’s operating segments. Segment Adjusted Operating Income should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Aptiv, which is the most directly comparable financial measure to Adjusted Operating Income that is prepared in accordance with U.S. GAAP. Segment Adjusted Operating Income, as determined and measured by Aptiv, should also not be compared to similarly titled measures reported by other companies. |
Revenue Revenue Recognition (Po
Revenue Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition, Policy | Revenue recognition —Revenue is measured based on consideration specified in a contract with a customer. Customer contracts for production parts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. Customer contracts for software licenses are generally represented by a sales contract or purchase order. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Revenue from software licenses is generally recognized at a point in time upon delivery while revenue from post delivery support and maintenance for software contracts are recognized over time on a ratable basis over the contract term. From time to time, Aptiv enters into pricing agreements with its customers that provide for price reductions, some of which are conditional upon achieving certain joint cost saving targets. In these instances, revenue is recognized based on the agreed-upon price at the time of shipment. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. In addition, from time to time, Aptiv makes payments to customers in conjunction with ongoing business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, or upfront fees, meet the criteria to be considered a cost to obtain a contract as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. Aptiv collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with a revenue-producing transaction between the Company and the Company’s customers. These taxes may include, but are not limited to, sales, use, value-added, and some excise taxes. Aptiv reports the collection of these taxes on a net basis (excluded from revenues). Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in cost of sales. Refer to Note 24. Revenue for further information. Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy. Nature of Goods and Services The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. Aptiv recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed. Although production parts are highly customized with no alternative use, Aptiv does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e. estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days. The Company also generates revenue from the sale of software licenses, post delivery support and maintenance and professional software services, primarily from Wind River, which the Company acquired in December 2022. Refer to Note 20. Acquisitions and Divestitures for further information on this acquisition. The Company generally recognizes revenue for software licenses and professional software services at a point in time upon delivery or when the services are provided. Revenue from post delivery support and maintenance for software contracts are recognized over time on a ratable basis over the contract term. Under certain of these arrangements, timing may differ between revenue recognition and billing. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | As reflected in the table below, net sales to General Motors (“GM”), Stellantis N.V. (“Stellantis”), Ford Motor Company (“Ford”) and Volkswagen Group (“VW”), Aptiv’s four largest customers, totaled approximately 34%, 35% and 38% of our total net sales for the years ended December 31, 2022, 2021 and 2020, respectively. Both of Aptiv’s operating segments recognized net sales to these customers during each period presented. Percentage of Total Net Sales Accounts Receivable Year Ended December 31, December 31, December 31, 2022 2021 2020 (in millions) GM 9 % 8 % 9 % $ 231 $ 208 Stellantis (1) 9 % 11 % 12 % 325 317 Ford 8 % 7 % 7 % 250 220 VW 8 % 9 % 10 % 186 163 (1) On January 16, 2021, Fiat Chrysler Automobiles N.V. (“FCA”) and Peugeot Citroën (“PSA”) merged to form Stellantis. Net sales to FCA and PSA before the date of the merger are included in net sales to Stellantis in the table above for the years ended December 31, 2021 and 2020. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | A summary of inventories is shown below: December 31, December 31, (in millions) Productive material $ 1,570 $ 1,311 Work-in-process 164 172 Finished goods 606 531 Total $ 2,340 $ 2,014 |
Assets (Tables)
Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: December 31, December 31, (in millions) Value added tax receivable $ 167 $ 178 Prepaid insurance and other expenses 75 63 Reimbursable engineering costs 90 110 Notes receivable 8 16 Income and other taxes receivable 40 54 Deposits to vendors 7 6 Derivative financial instruments (Note 17) 44 38 Capitalized upfront fees (Note 24) 17 34 Contract assets (Note 24) 24 — Other 8 — Total $ 480 $ 499 |
Schedule of Other Assets, Noncurrent | Other long-term assets consisted of the following: December 31, December 31, (in millions) Deferred income taxes, net (Note 14) $ 259 $ 159 Unamortized Revolving Credit Facility debt issuance costs 8 11 Income and other taxes receivable 30 28 Reimbursable engineering costs 160 176 Value added tax receivable 2 20 Equity investments (Note 5) 84 96 Derivative financial instruments (Note 17) 14 3 Capitalized upfront fees (Note 24) 61 58 Contract assets (Note 24) 43 — Other 79 71 Total $ 740 $ 622 |
Investments in Affiliates (Tabl
Investments in Affiliates (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following is a summary of the combined financial information of significant affiliates accounted for under the equity method as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020: December 31, 2022 2021 (in millions) Current assets $ 1,059 $ 794 Non-current assets 2,672 3,163 Total assets $ 3,731 $ 3,957 Current liabilities $ 252 $ 194 Non-current liabilities 87 112 Shareholders’ equity 3,392 3,651 Total liabilities and shareholders’ equity $ 3,731 $ 3,957 Year Ended December 31, 2022 2021 2020 (in millions) Net sales $ 761 $ 599 $ 553 Gross loss (357) (244) (71) Net loss (589) (393) (154) |
Schedule of Related Party Transactions | A summary of transactions with affiliates is shown below: Year Ended December 31, 2022 2021 2020 (in millions) Sales to affiliates $ 35 $ 30 $ 7 Purchases from affiliates 18 19 32 A summary of amounts recorded in the Company’s consolidated balance sheets related to its affiliates is shown below: December 31, 2022 2021 (in millions) Receivables due from affiliates $ 8 $ 11 Payables due to affiliates 18 20 |
Schedule of Technology Investments | December 31, 2022 and 2021: December 31, Investment Name Segment 2022 2021 (in millions) Equity investments without readily determinable fair values: StradVision, Inc. Advanced Safety and User Experience $ 40 $ — LeddarTech, Inc. Advanced Safety and User Experience 19 19 Quanergy Systems, Inc (1) Advanced Safety and User Experience — 6 Other investments Various 8 5 Total equity investments without readily determinable fair values 67 30 Publicly traded equity securities: Smart Eye AB Advanced Safety and User Experience 2 11 Otonomo Technologies Ltd. Advanced Safety and User Experience 4 39 Valens Semiconductor Ltd. Signal and Power Solutions 11 16 Total publicly traded equity securities 17 66 Total investments $ 84 $ 96 (1) Quanergy Systems, Inc. experienced a change in measurement basis due to an underlying transaction during the year ended December 31, 2022 and we liquidated our entire investment in the company after the transaction during the year ended December 31, 2022. See below for further details on the transaction. |
Property, Net (Tables)
Property, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment | Property, net consisted of: Estimated Useful December 31, 2022 2021 (Years) (in millions) Land — $ 79 $ 82 Land and leasehold improvements 3-20 200 186 Buildings 40 699 679 Machinery, equipment and tooling 3-20 5,263 4,899 Furniture and office equipment 3-10 871 802 Construction in progress — 463 365 Total 7,575 7,013 Less: accumulated depreciation (4,080) (3,719) Total property, net $ 3,495 $ 3,294 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite and Infinite-Lived Intangible Assets and Goodwill by Major Class | The changes in the carrying amount of intangible assets and goodwill were as follows as of December 31, 2022 and 2021. See Note 20. Acquisitions and Divestitures for a further description of the goodwill and intangible assets resulting from Aptiv’s acquisitions in 2022 and 2021. As of December 31, 2022 As of December 31, 2021 Estimated Useful Gross Accumulated Net Gross Accumulated Net (Years) (in millions) (in millions) Amortized intangible assets: Patents and developed technology 3-16 $ 1,504 $ 551 $ 953 $ 673 $ 506 $ 167 Customer relationships 9-22 1,981 661 1,320 1,186 578 608 Trade names 15-20 206 52 154 75 50 25 Total 3,691 1,264 2,427 1,934 1,134 800 Unamortized intangible assets: In-process research and development — 4 — 4 4 — 4 Trade names — 154 — 154 160 — 160 Goodwill — 5,106 — 5,106 2,511 — 2,511 Total $ 8,955 $ 1,264 $ 7,691 $ 4,609 $ 1,134 $ 3,475 |
Schedule of Finite-Lived Intangible Assets Amortization Expense | Estimated amortization expense for the years ending December 31, 2023 through 2027 is presented below: Year Ending December 31, 2023 2024 2025 2026 2027 (in millions) Estimated amortization expense $ 230 $ 210 $ 210 $ 210 $ 195 |
Schedule of Gross Carrying Amounts of Intangible Assets and Goodwill | A roll-forward of the gross carrying amounts of intangible assets for the years ended December 31, 2022 and 2021 is presented below. 2022 2021 (in millions) Balance at January 1 $ 4,609 $ 4,675 Acquisitions (1) 4,434 132 Foreign currency translation and other (88) (198) Balance at December 31 $ 8,955 $ 4,609 (1) Primarily attributable to the 2022 acquisitions of Wind River and Intercable Automotive and the 2021 acquisitions of El-Com, Krono-Safe and Ulti-Mate, as further described in Note 20. Acquisitions and Divestitures. |
Schedule of Accumulated Amortization of Intangible Assets and Goodwill | A roll-forward of the accumulated amortization for the years ended December 31, 2022 and 2021 is presented below: 2022 2021 (in millions) Balance at January 1 $ 1,134 $ 1,004 Amortization 149 148 Foreign currency translation and other (19) (18) Balance at December 31 $ 1,264 $ 1,134 |
Schedule of Goodwill | A roll-forward of the carrying amount of goodwill, by operating segment, for the years ended December 31, 2022 and 2021 is presented below: Signal and Power Solutions Advanced Safety and User Experience Total (in millions) Balance at January 1, 2021 $ 2,553 $ 27 $ 2,580 Acquisitions (1) 65 9 74 Foreign currency translation and other (143) — (143) Balance at December 31, 2021 $ 2,475 $ 36 $ 2,511 Acquisitions (2) $ 357 $ 2,302 $ 2,659 Foreign currency translation and other (76) 12 (64) Balance at December 31, 2022 $ 2,756 $ 2,350 $ 5,106 (1) Primarily attributable to the acquisitions of El-Com, Krono-Safe and Ulti-Mate, as further described in Note 20. Acquisitions and Divestitures. (2) Primarily attributable to the acquisitions of Wind River and Intercable Automotive, as further described in Note 20. Acquisitions and Divestitures. |
Liabilities (Tables)
Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following: December 31, December 31, (in millions) Payroll-related obligations $ 330 $ 286 Employee benefits, including current pension obligations 151 83 Income and other taxes payable 188 157 Warranty obligations (Note 9) 43 41 Restructuring (Note 10) 65 42 Customer deposits 82 83 Derivative financial instruments (Note 17) 29 13 Accrued interest 51 30 MCPS dividends payable 3 3 Contract liabilities (Note 24) 90 — Operating lease liabilities (Note 25) 109 92 Other 543 416 Total $ 1,684 $ 1,246 |
Liabilities, Noncurrent | Other long-term liabilities consisted of the following: December 31, December 31, (in millions) Environmental (Note 13) $ 1 $ 4 Extended disability benefits 4 5 Warranty obligations (Note 9) 9 8 Restructuring (Note 10) 18 21 Payroll-related obligations 10 11 Accrued income taxes 161 153 Deferred income taxes, net (Note 14) 481 153 Contract liabilities (Note 24) 9 — Derivative financial instruments (Note 17) 7 7 Other 50 74 Total $ 750 $ 436 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The table below summarizes the activity in the product warranty liability for the years ended December 31, 2022 and 2021: Year Ended December 31, 2022 2021 (in millions) Accrual balance at beginning of year $ 49 $ 59 Provision for estimated warranties incurred during the year 44 36 Changes in estimate for pre-existing warranties 3 15 Settlements made during the year (in cash or in kind) (43) (59) Foreign currency translation and other (1) (2) Accrual balance at end of year $ 52 $ 49 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the restructuring charges recorded for the years ended December 31, 2022, 2021 and 2020 by operating segment: Year Ended December 31, 2022 2021 2020 (in millions) Signal and Power Solutions $ 30 $ 8 $ 90 Advanced Safety and User Experience 55 16 46 Total $ 85 $ 24 $ 136 |
Schedule of Restructuring Reserve by Type of Cost | The table below summarizes the activity in the restructuring liability for the years ended December 31, 2022 and 2021: Employee Termination Benefits Liability Other Exit Costs Liability Employee Termination Benefits (in millions) Accrual balance at January 1, 2021 $ 125 $ — $ 125 Provision for estimated expenses incurred during the year 24 — 24 Payments made during the year (80) — (80) Foreign currency and other (6) — (6) Accrual balance at December 31, 2021 $ 63 $ — $ 63 Provision for estimated expenses incurred during the year $ 85 $ — $ 85 Payments made during the year (67) — (67) Foreign currency and other 2 — 2 Accrual balance at December 31, 2022 $ 83 $ — $ 83 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of debt outstanding, net of unamortized issuance costs and discounts, as of December 31, 2022 and 2021: December 31, 2022 2021 (in millions) 2.396%, senior notes, due 2025 (net of $3 and $0 unamortized issuance costs, respectively) $ 697 $ — 1.50%, Euro-denominated senior notes, due 2025 (net of $1 and $2 unamortized issuance costs and $1 and $1 discount, respectively) 747 790 1.60%, Euro-denominated senior notes, due 2028 (net of $2 and $3 unamortized issuance costs, respectively) 533 563 4.35%, senior notes, due 2029 (net of $2 and $2 unamortized issuance costs, respectively) 298 298 3.25%, senior notes, due 2032 (net of $7 and $0 unamortized issuance costs and $3 and $0 discount, respectively) 790 — 4.40%, senior notes, due 2046 (net of $3 and $3 unamortized issuance costs and $1 and $1 discount, respectively) 296 296 5.40%, senior notes, due 2049 (net of $4 and $4 unamortized issuance costs and $1 and $1 discount, respectively) 345 345 3.10%, senior notes, due 2051 (net of $16 and $17 unamortized issuance costs and $32 and $33 discount, respectively) 1,452 1,450 4.15%, senior notes, due 2052 (net of $11 and $0 unamortized issuance costs and $2 and $0 discount, respectively) 987 — Tranche A Term Loan, due 2026 (net of $1 and $2 unamortized issuance costs, respectively) 308 311 Finance leases and other 38 14 Total debt 6,491 4,067 Less: current portion (31) (8) Long-term debt $ 6,460 $ 4,059 |
Schedule of Maturities of Long-term Debt | The principal maturities of debt, at nominal value, are as follows: Debt and Finance Lease Obligations (in millions) 2023 $ 31 2024 32 2025 1,469 2026 262 2027 2 Thereafter 4,785 Total $ 6,581 |
Schedule of Interest Rates | The Applicable Rates under the Credit Agreement on the specified dates are set forth below: December 31, 2022 December 31, 2021 LIBOR plus ABR plus LIBOR plus ABR plus Revolving Credit Facility 1.06 % 0.06 % 1.10 % 0.10 % Tranche A Term Loan 1.105 % 0.105 % 1.125 % 0.125 % |
Schedule of Line of Credit Facilities | As of December 31, 2022, Aptiv selected the one-month LIBOR interest rate option on the Tranche A Term Loan, and the rate effective as of December 31, 2022, as detailed in the table below, was based on the Company’s current credit rating and the Applicable Rate for the Credit Agreement: Borrowings as of December 31, 2022 Rates effective as of Applicable Rate (in millions) December 31, 2022 Tranche A Term Loan LIBOR plus 1.105% $ 309 5.48 % |
Pension Benefits (Tables)
Pension Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The amounts shown below reflect the change in the U.S. defined benefit pension obligations during 2022 and 2021. Year Ended December 31, 2022 2021 (in millions) Benefit obligation at beginning of year $ 5 $ 8 Actuarial gain (1) — Benefits paid (1) (3) Benefit obligation at end of year $ 3 $ 5 Change in plan assets: Fair value of plan assets at beginning of year $ — $ — Aptiv contributions 1 3 Benefits paid (1) (3) Fair value of plan assets at end of year $ — $ — Underfunded status $ (3) $ (5) Amounts recognized in the consolidated balance sheets consist of: Current liabilities $ (1) $ (1) Long-term liabilities (2) (4) Total $ (3) $ (5) Amounts recognized in accumulated other comprehensive loss consist of (pre-tax): Actuarial loss $ 4 $ 6 Total $ 4 $ 6 The amounts shown below reflect the change in the non-U.S. defined benefit pension obligations during 2022 and 2021. Year Ended December 31, 2022 2021 (in millions) Benefit obligation at beginning of year $ 861 $ 977 Service cost 15 18 Interest cost 23 19 Actuarial gain (171) (62) Benefits paid (35) (36) Impact of curtailments — (3) Exchange rate movements and other (42) (52) Benefit obligation at end of year $ 651 $ 861 Change in plan assets: Fair value of plan assets at beginning of year $ 438 $ 438 Actual return on plan assets (89) 23 Aptiv contributions 23 25 Benefits paid (35) (36) Exchange rate movements and other (30) (12) Fair value of plan assets at end of year $ 307 $ 438 Underfunded status $ (344) $ (423) Amounts recognized in the consolidated balance sheets consist of: Long-term assets $ 25 $ 29 Current liabilities (18) (17) Long-term liabilities (351) (435) Total $ (344) $ (423) Amounts recognized in accumulated other comprehensive loss consist of (pre-tax): Actuarial loss $ 17 $ 101 Total $ 17 $ 101 |
Schedule of Accumulated and Projected Benefit Obligations | The projected benefit obligation (“PBO”), accumulated benefit obligation (“ABO”), and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets and with plan assets in excess of accumulated benefit obligations are as follows: U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 (in millions) PBO $ 3 $ 5 $ 449 $ 445 ABO 3 5 398 405 Fair value of plan assets at end of year — — 80 7 Plans with Plan Assets in Excess of ABO PBO $ — $ — $ 202 $ 416 ABO — — 193 393 Fair value of plan assets at end of year — — 227 431 Total PBO $ 3 $ 5 $ 651 $ 861 ABO 3 5 591 798 Fair value of plan assets at end of year — — 307 438 |
Schedule of Net Benefit Costs | Benefit costs presented below were determined based on actuarial methods and included the following: U.S. Plans Year Ended December 31, 2022 2021 2020 (in millions) Amortization of actuarial losses $ 1 $ 1 $ 1 Net periodic benefit cost $ 1 $ 1 $ 1 Non-U.S. Plans Year Ended December 31, 2022 2021 2020 (in millions) Service cost $ 15 $ 18 $ 18 Interest cost 23 19 20 Expected return on plan assets (17) (17) (17) Settlement loss — 1 1 Curtailment loss — 3 — Amortization of actuarial losses 8 14 14 Other — — 1 Net periodic benefit cost $ 29 $ 38 $ 37 |
Schedule of Assumptions Used | Assumptions used to determine benefit obligations at December 31: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2022 2021 Weighted-average discount rate 5.20 % 1.90 % 5.95 % 3.09 % Weighted-average rate of increase in compensation levels N/A N/A 2.82 % 2.47 % Assumptions used to determine net expense for years ended December 31: Pension Benefits U.S. Plans Non-U.S. Plans 2022 2021 2020 2022 2021 2020 Weighted-average discount rate 1.90 % 1.20 % 2.40 % 3.09 % 2.21 % 2.87 % Weighted-average rate of increase in compensation levels N/A N/A N/A 2.47 % 3.64 % 3.69 % Weighted-average expected long-term rate of return on plan assets N/A N/A N/A 4.46 % 4.29 % 4.68 % |
Schedule of Change in Assumptions Used | Aptiv’s pension expense for 2023 is determined at the 2022 year end measurement date. For purposes of analysis, the following table highlights the sensitivity of the Company’ pension obligations and expense to changes in key assumptions: Change in Assumption Impact on Impact on PBO 25 basis point (“bp”) decrease in discount rate Less than + $1 million ‘ + $16 million 25 bp increase in discount rate ‘ - $1 million ‘ - $15 million 25 bp decrease in long-term expected return on assets ‘ + $1 million — 25 bp increase in long-term expected return on assets ‘ - $1 million — |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Projected Pension Benefit Payments U.S. Plans Non-U.S. Plans (in millions) 2023 $ 1 $ 49 2024 1 41 2025 1 43 2026 — 49 2027 — 53 2028 – 2032 — 285 |
Schedule of Allocation of Plan Assets | The fair values of Aptiv’s pension plan assets weighted-average asset allocations at December 31, 2022 and 2021, by asset category, are as follows: Fair Value Measurements at December 31, 2022 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 12 $ 4 $ 8 $ — Time deposits 28 — 28 — Equity mutual funds 6 — 6 — Bond mutual funds 110 — 110 — Real estate trust funds 36 — — 36 Private debt funds 17 — — 17 Insurance contracts 2 — — 2 Debt securities 59 59 — — Equity securities 37 37 — — Total $ 307 $ 100 $ 152 $ 55 Fair Value Measurements at December 31, 2021 Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in millions) Cash and cash equivalents $ 13 $ 13 $ — $ — Time deposits 29 — 29 — Equity mutual funds 33 — 33 — Bond mutual funds 216 — 216 — Real estate trust funds 35 — — 35 Hedge funds 11 — — 11 Insurance contracts 4 — — 4 Debt securities 56 56 — — Equity securities 41 41 — — Total $ 438 $ 110 $ 278 $ 50 |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward | Fair Value Measurements Using Significant Real Estate Trust Fund Hedge Funds Insurance Contracts Private Lending Funds (in millions) Beginning balance at January 1, 2021 $ 34 $ 9 $ 7 $ — Actual return on plan assets: Relating to assets still held at the reporting date 3 2 — — Purchases, sales and settlements (1) — (3) — Foreign currency translation and other (1) — — — Ending balance at December 31, 2021 $ 35 $ 11 $ 4 $ — Actual return on plan assets: Relating to assets still held at the reporting date $ 5 $ 1 $ — $ (2) Purchases, sales and settlements — (10) — 19 Foreign currency translation and other (4) (2) (2) — Ending balance at December 31, 2022 $ 36 $ — $ 2 $ 17 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Income before income taxes and equity income for U.S. and non-U.S. operations are as follows: Year Ended December 31, 2022 2021 2020 (in millions) U.S. income (loss) $ 24 $ (2) $ (65) Non-U.S. income 966 912 2,019 Income before income taxes and equity loss $ 990 $ 910 $ 1,954 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes is comprised of: Year Ended December 31, 2022 2021 2020 (in millions) Current income tax expense (benefit): U.S. federal $ 45 $ 1 $ (53) Non-U.S. 205 156 154 U.S. state and local 15 4 — Total current 265 161 101 Deferred income tax expense (benefit), net: U.S. federal (43) (17) (14) Non-U.S. (90) (43) (37) U.S. state and local (11) — (1) Total deferred (144) (60) (52) Total income tax provision $ 121 $ 101 $ 49 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the provision for income taxes compared with the amounts at the notional U.S. federal statutory rate was: Year Ended December 31, 2022 2021 2020 (in millions) Notional U.S. federal income taxes at statutory rate $ 208 $ 191 $ 410 Income taxed at other rates (61) (81) (339) Change in valuation allowance (63) (17) 10 Other change in tax reserves 10 19 30 Intragroup reorganizations — (7) (49) Withholding taxes 38 37 26 Tax credits (19) (23) (16) Change in tax law — (7) (2) Other adjustments 8 (11) (21) Total income tax expense $ 121 $ 101 $ 49 Effective tax rate 12 % 11 % 3 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the deferred tax assets and liabilities are as follows: December 31, 2022 2021 (in millions) Deferred tax assets: Pension $ 56 $ 76 Employee benefits 26 30 Net operating loss carryforwards 735 699 Warranty and other liabilities 85 77 Operating lease liabilities 98 78 Capitalized R&D 111 — Other 222 184 Total gross deferred tax assets 1,333 1,144 Less: valuation allowances (756) (766) Total deferred tax assets (1) $ 577 $ 378 Deferred tax liabilities: Fixed assets $ 45 $ 55 Tax on unremitted profits of certain foreign subsidiaries 69 65 Intangibles 588 174 Operating lease right-of-use assets 97 78 Total gross deferred tax liabilities 799 372 Net deferred tax (liabilities) assets $ (222) $ 6 (1) Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. |
Schedule of Deferred Tax Assets and Liabilities, Balance Sheet Location | Net deferred tax assets and liabilities are included in the consolidated balance sheets as follows: December 31, 2022 2021 (in millions) Long-term assets $ 259 $ 159 Long-term liabilities (481) (153) Total deferred tax (liability) asset $ (222) $ 6 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the gross change in the unrecognized tax benefits balance, excluding interest and penalties is as follows: Year Ended December 31, 2022 2021 2020 (in millions) Balance at beginning of year $ 224 $ 231 $ 217 Additions related to current year 12 12 35 Additions related to prior years 29 20 31 Reductions related to prior years (33) (36) (20) Reductions due to expirations of statute of limitations (7) (3) (28) Settlements (1) — (4) Balance at end of year $ 224 $ 224 $ 231 |
Shareholders' Equity And Net _2
Shareholders' Equity And Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Shareholders' Equity and Net Income Per Share Note [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table illustrates net income per share attributable to ordinary shareholders and the weighted average shares outstanding used in calculating basic and diluted income per share: Year Ended December 31, 2022 2021 2020 (in millions, except per share data) Numerator, basic: Net income attributable to ordinary shareholders $ 531 $ 527 $ 1,769 Numerator, diluted: Net income attributable to Aptiv $ 594 $ 590 $ 1,804 MCPS dividends (1) (63) (63) — Numerator, diluted $ 531 $ 527 $ 1,804 Denominator: Weighted average ordinary shares outstanding, basic 270.90 270.46 263.43 Dilutive shares related to RSUs 0.28 0.76 0.44 Weighted average MCPS converted shares (1) — — 6.83 Weighted average ordinary shares outstanding, including dilutive shares 271.18 271.22 270.70 Net income per share attributable to ordinary shareholders: Basic $ 1.96 $ 1.95 $ 6.72 Diluted $ 1.96 $ 1.94 $ 6.66 (1) For purposes of calculating net income per share under the if-converted method, the Company has included the impact of the MCPS dividends for the years ended December 31, 2022 and 2021 as the impact was more dilutive to net income per share than the impact of assuming the conversion of the MCPS into ordinary shares on a weighted average basis. The Company has excluded the impact of the MCPS dividends for the year ended December 31, 2020, as the assumed conversion of the MCPS into ordinary shares on a weighted average basis was more dilutive to net income per share than the impact of the MCPS dividends. |
Schedule of Share Repurchases | A summary of the ordinary shares repurchased during the year ended December 31, 2020 is as follows: Total number of shares repurchased 1,059,075 Average price paid per share $ 53.73 Total (in millions) $ 57 |
Schedule of Dividends Declared | The Company has declared and paid cash dividends per preferred share during the periods presented as follows: Dividend Amount Per Share (in millions) 2022: Fourth quarter $ 1.375 $ 16 Third quarter 1.375 15 Second quarter 1.375 16 First quarter 1.375 16 Total $ 5.500 $ 63 2021: Fourth quarter $ 1.375 $ 16 Third quarter 1.375 15 Second quarter 1.375 16 First quarter 1.375 16 Total $ 5.500 $ 63 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) attributable to Aptiv (net of tax) are shown below. Year Ended December 31, 2022 2021 2020 (in millions) Foreign currency translation adjustments: Balance at beginning of year $ (588) $ (445) $ (597) Aggregate adjustment for the year (1) (202) (143) 152 Balance at end of year (790) (588) (445) Gains (losses) on derivatives: Balance at beginning of year $ (17) $ 40 $ 13 Other comprehensive income before reclassifications (net tax effect of $10, $0 and $0 ) 37 8 6 Reclassification to income (net tax effect of $1, $0 and $0) (13) (65) 21 Balance at end of year 7 (17) 40 Pension and postretirement plans: Balance at beginning of year $ (67) $ (140) $ (135) Other comprehensive income (loss) before reclassifications (net tax effect of $(26), $(23) and $7) 51 57 (18) Reclassification to income (net tax effect of $(2), $(4) and $(3)) 8 16 13 Balance at end of year (8) (67) (140) Accumulated other comprehensive loss, end of year $ (791) $ (672) $ (545) |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications from accumulated other comprehensive income (loss) to income were as follows: Reclassification Out of Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Components Year Ended December 31, Affected Line Item in the Statement of Operations 2022 2021 2020 (in millions) Foreign currency translation adjustments: Liquidation of foreign subsidiary (1) $ (6) $ — $ — Other expense, net (6) — — Income before income taxes — — — Income tax expense (6) — — Net income — — — Net (loss) income attributable to noncontrolling interest $ (6) $ — $ — Net income attributable to Aptiv Gains (losses) on derivatives: Commodity derivatives $ (5) $ 68 $ (7) Cost of sales Foreign currency derivatives 19 (3) (14) Cost of sales 14 65 (21) Income before income taxes (1) — — Income tax expense 13 65 (21) Net income — — — Net (loss) income attributable to noncontrolling interest $ 13 $ 65 $ (21) Net income attributable to Aptiv Pension and postretirement plans: Actuarial loss $ (10) $ (15) $ (16) Other expense, net (2) Curtailment loss — (5) — Other expense, net (2) (10) (20) (16) Income before income taxes 2 4 3 Income tax expense (8) (16) (13) Net income — — — Net (loss) income attributable to noncontrolling interest $ (8) $ (16) $ (13) Net income attributable to Aptiv Total reclassifications for the year $ (1) $ 49 $ (34) (1) Represents accumulated currency translation adjustment losses reclassified to net income as a result of the liquidation of a foreign subsidiary during the year ended December 31, 2022. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12. Pension Benefits for additional details). |
Derivatives And Hedging Activ_2
Derivatives And Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of December 31, 2022, the Company had the following outstanding notional amounts related to commodity and foreign currency forward and option contracts designated as cash flow hedges that were entered into to hedge forecasted exposures: Commodity Quantity Hedged Unit of Measure Notional Amount (Approximate USD Equivalent) (in thousands) (in millions) Copper 96,785 pounds $ 365 Foreign Currency Quantity Hedged Unit of Measure Notional Amount (Approximate USD Equivalent) (in millions) Mexican Peso 22,516 MXN $ 1,155 Chinese Yuan Renminbi 3,223 RMB 465 Euro 128 EUR 135 Polish Zloty 730 PLN 165 Hungarian Forint 24,013 HUF 65 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative financial instruments recorded in the consolidated balance sheets as of December 31, 2022 and 2021 are as follows: Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location December 31, Balance Sheet Location December 31, December 31, (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ — Accrued liabilities $ 28 Foreign currency derivatives* Other current assets 54 Other current assets 11 $ 43 Commodity derivatives Other long-term assets — Other long-term liabilities 7 Foreign currency derivatives* Other long-term assets 17 Other long-term assets 3 14 Foreign currency derivatives* Other long-term liabilities 1 Other long-term liabilities 1 — Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets — Accrued liabilities 1 Total derivatives designated as hedges $ 72 $ 51 Derivatives not designated: Foreign currency derivatives* Other current assets $ 1 Other current assets $ — 1 Total derivatives not designated as hedges $ 1 $ — Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location December 31, 2021 Balance Sheet Location December 31, 2021 December 31, 2021 (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ 27 Accrued liabilities $ — Foreign currency derivatives* Other current assets 15 Other current assets 9 $ 6 Foreign currency derivatives* Accrued liabilities 5 Accrued liabilities 16 (11) Commodity derivatives Other long-term assets 2 Other long-term liabilities — Foreign currency derivatives* Other long-term assets 2 Other long-term assets 1 1 Foreign currency derivatives* Other long-term liabilities 1 Other long-term liabilities 8 (7) Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets — Accrued liabilities 1 Total derivatives designated as hedges $ 52 $ 35 Derivatives not designated: Commodity derivatives Other current assets $ 5 Accrued liabilities $ — Foreign currency derivatives* Accrued liabilities — Accrued liabilities 1 (1) Total derivatives not designated as hedges $ 5 $ 1 * Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The pre-tax effects of derivative financial instruments in the consolidated statements of operations and consolidated statements of comprehensive income for the years ended December 31, 2022, 2021 and 2020 are as follows: Year Ended December 31, 2022 (Loss) Gain Recognized in OCI (Loss) Gain Reclassified from OCI into Income (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ (70) $ (5) Foreign currency derivatives 90 19 Derivatives designated as net investment hedges: Foreign currency derivatives 7 — Total $ 27 $ 14 Loss Recognized (in millions) Derivatives not designated: Foreign currency derivatives $ (8) Total $ (8) Year Ended December 31, 2021 Gain (Loss) Gain (Loss) Reclassified from OCI into Income (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 60 $ 68 Foreign currency derivatives (35) (3) Derivatives designated as net investment hedges: Foreign currency derivatives (17) — Total $ 8 $ 65 Gain (Loss) Recognized (in millions) Derivatives not designated: Commodity derivatives $ 3 Foreign currency derivatives (5) Total $ (2) Year Ended December 31, 2020 Gain (Loss) Recognized in OCI Loss Reclassified from OCI into Income (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 31 $ (7) Foreign currency derivatives (23) (14) Derivatives designated as net investment hedges: Foreign currency derivatives (2) — Total $ 6 $ (21) Gain Recognized (in millions) Derivatives not designated: Foreign currency derivatives $ — Total $ — |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Changes in Fair Value of Liabilities Measured on Recurring Basis with Unobservable Inputs | The changes in the contingent consideration liability classified as a Level 3 measurement for the years ended December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 2021 (in millions) Fair value at beginning of year $ 10 $ 52 Additions — 10 Payments — (52) Fair value at end of year $ 10 $ 10 |
Fair Value, Assets Measured on Recurring Basis | As of December 31, 2022 and 2021, Aptiv had the following assets measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of December 31, 2022 Foreign currency derivatives $ 58 $ — $ 58 $ — Publicly traded equity securities 17 17 — — Total $ 75 $ 17 $ 58 $ — As of December 31, 2021 Commodity derivatives $ 34 $ — $ 34 $ — Foreign currency derivatives 7 — 7 — Publicly traded equity securities 66 66 — — Total $ 107 $ 66 $ 41 $ — |
Fair Value, Liabilities Measured on Recurring Basis | As of December 31, 2022 and 2021, Aptiv had the following liabilities measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of December 31, 2022 Commodity derivatives $ 35 $ — $ 35 $ — Foreign currency derivatives 1 — 1 — Contingent consideration 10 — — 10 Total $ 46 $ — $ 36 $ 10 As of December 31, 2021 Foreign currency derivatives $ 20 $ — $ 20 $ — Contingent consideration 10 — — 10 Total $ 30 $ — $ 20 $ 10 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other income (expense), net included: Year Ended December 31, 2022 2021 2020 (in millions) Interest income $ 86 $ 9 $ 8 Loss on extinguishment of debt (Note 11) — (126) — Loss on modification of debt — (1) (4) Components of net periodic benefit cost other than service cost (15) (21) (20) Costs associated with acquisitions and other transactions (61) — — Change in fair value of equity investments without readily determinable fair value (Note 5) — 9 10 Loss on change in fair value of publicly traded equity securities (Note 5) (52) — — Other, net (12) 1 6 Other expense, net $ (54) $ (129) $ — |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price and related allocation to the acquired net assets of Wind River based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired (1) $ 3,519 Accounts receivable, net $ 91 Contract assets 67 Property, plant and equipment 14 Intangible assets 1,490 Contract liabilities (101) Accrued liabilities (62) Deferred tax liabilities (287) Other assets, net 5 Identifiable net assets acquired 1,217 Goodwill resulting from purchase 2,302 Total purchase price allocation $ 3,519 (1) Approximately $35 million of the cash consideration was unpaid as of December 31, 2022 and was therefore not recognized as a cash outflow from investing activities for the year ended December 31, 2022. This amount is expected to be paid during the first quarter of 2023. Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 606 Inventory $ 77 Property, plant and equipment 77 Intangible assets 285 Deferred tax liabilities (82) Other liabilities, net (13) Identifiable net assets acquired 344 Goodwill resulting from purchase 357 Total 701 Less: redeemable noncontrolling interest (95) Total purchase price allocation $ 606 Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 78 Purchase price, fair value of contingent consideration 10 Total consideration, net of cash acquired $ 88 Intangible assets $ 35 Other assets, net 10 Identifiable net assets acquired 45 Goodwill resulting from purchase 43 Total purchase price allocation $ 88 Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 45 Intangible assets $ 17 Other assets, net 5 Identifiable net assets acquired 22 Goodwill resulting from purchase 23 Total purchase price allocation $ 45 Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 22 Intangible assets $ 8 Other assets, net 4 Identifiable net assets acquired 12 Goodwill resulting from purchase 10 Total purchase price allocation $ 22 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share Based Compensation Restricted Stock Units Performance Awards Weighting | Each executive will receive between 0% and 200% (150% for the 2019 and 2020 grants based on the executive performance grant modification in 2020 described below) of his or her target performance-based award based on the Company’s performance against established company-wide performance metrics, which are: Metric 2020 - 2022 Grants 2018 - 2019 Grants Average return on net assets (1) 33% 50% Cumulative net income 33% 25% Relative total shareholder return (2) 33% 25% (1) Average return on net assets is measured by tax-affected operating income divided by average net working capital plus average net property, plant and equipment for each calendar year during the respective performance period. (2) Relative total shareholder return is measured by comparing the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the end of the performance period to the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the year preceding the grant, including dividends, and assessed against a comparable measure of competitor and peer group companies. |
Schedule of Executive RSU Grants | The details of the executive grants were as follows: Grant Date RSUs Granted Grant Date Fair Value Time-Based Award Vesting Dates Performance-Based Award Vesting Date (in millions) February 2018 0.63 $ 61 Annually on anniversary of grant date, 2019 - 2021 December 31, 2020 February 2019 0.71 62 Annually on anniversary of grant date, 2020 - 2022 December 31, 2021 February 2020 0.75 62 Annually on anniversary of grant date, 2021 - 2023 December 31, 2022 February 2021 0.44 72 Annually on anniversary of grant date, 2022 - 2024 December 31, 2023 February 2022 0.59 80 Annually on anniversary of grant date, 2023 - 2025 December 31, 2024 |
Schedule of Share-based Compensation Restricted Stock Units Award Activity | A summary of RSU activity, including award grants, vesting and forfeitures is provided below: RSUs Weighted Average Grant Date Fair Value (in thousands) Nonvested, January 1, 2020 1,822 $ 89.32 Granted 934 99.14 Vested (773) 98.90 Forfeited (197) 82.93 Nonvested, December 31, 2020 1,786 102.95 Granted 661 161.90 Vested (829) 98.55 Forfeited (274) 118.97 Nonvested, December 31, 2021 1,344 131.40 Granted 939 122.73 Vested (713) 109.36 Forfeited (323) 134.75 Nonvested, December 31, 2022 1,247 136.61 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Included below are sales and operating data for Aptiv’s segments for the years ended December 31, 2022, 2021 and 2020, as well as balance sheet data as of December 31, 2022 and 2021. Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Year Ended December 31, 2022: Net sales $ 12,943 $ 4,587 $ (41) $ 17,489 Depreciation and amortization $ 584 $ 178 $ — $ 762 Adjusted operating income $ 1,441 $ 144 $ — $ 1,585 Operating income (2) $ 1,195 $ 68 $ — $ 1,263 Equity income (loss), net of tax $ 20 $ (299) $ — $ (279) Net loss attributable to noncontrolling interest $ (3) $ — $ — $ (3) Net loss attributable to redeemable noncontrolling interest $ (1) $ — $ — $ (1) Capital expenditures $ 573 $ 196 $ 75 $ 844 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Year Ended December 31, 2021: Net sales $ 11,598 $ 4,056 $ (36) $ 15,618 Depreciation and amortization $ 595 $ 178 $ — $ 773 Adjusted operating income (3) $ 1,225 $ 153 $ — $ 1,378 Operating income (4) $ 1,064 $ 125 $ — $ 1,189 Equity income (loss), net of tax $ 15 $ (215) $ — $ (200) Net income attributable to noncontrolling interest $ 19 $ — $ — $ 19 Capital expenditures $ 434 $ 124 $ 53 $ 611 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Year Ended December 31, 2020: Net sales $ 9,522 $ 3,573 $ (29) $ 13,066 Depreciation and amortization $ 588 $ 176 $ — $ 764 Adjusted operating income (3) $ 900 $ 111 $ — $ 1,011 Operating income (5) $ 656 $ 1,462 $ — $ 2,118 Equity income (loss), net of tax $ 15 $ (98) $ — $ (83) Net income attributable to noncontrolling interest $ 18 $ — $ — $ 18 Capital expenditures $ 355 $ 173 $ 56 $ 584 (1) Eliminations and Other includes the elimination of inter-segment transactions. Capital expenditures amounts are attributable to corporate administrative and support functions, including corporate headquarters and certain technical centers. (2) Includes charges recorded in 2022 related to costs associated with employee termination benefits and other exit costs of $30 million for Signal and Power Solutions and $55 million for Advanced Safety and User Experience. (3) As described above, the calculation of adjusted operating income excludes amortization expense effective on January 1, 2022. The historical presentation of adjusted operating income as shown in this table has been revised to be consistent with the updated calculation. (4) Includes charges recorded in 2021 related to costs associated with employee termination benefits and other exit costs of $8 million for Signal and Power Solutions and $16 million for Advanced Safety and User Experience. (5) Includes a pre-tax gain in 2020 of $1.4 billion within Advanced Safety and User Experience for the completion of the Motional autonomous driving joint venture. Also, includes charges recorded in 2020 related to costs associated with employee termination benefits and other exit costs of $90 million for Signal and Power Solutions and $46 million for Advanced Safety and User Experience. |
Reconciliation of Assets from Segment to Consolidated | Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) Balance as of December 31, 2022: Investment in affiliates $ 126 $ 1,597 $ — $ 1,723 Goodwill (2) $ 2,756 $ 2,350 $ — $ 5,106 Total segment assets (2) $ 14,575 $ 11,864 $ (4,555) $ 21,884 Balance as of December 31, 2021: Investment in affiliates $ 110 $ 1,687 $ — $ 1,797 Goodwill $ 2,475 $ 36 $ — $ 2,511 Total segment assets $ 13,385 $ 7,244 $ (2,622) $ 18,007 (1) Eliminations and Other includes the elimination of inter-segment transactions. (2) Signal and Power Solutions includes amounts recognized as part of the preliminary purchase price allocation following the acquisition of Intercable Automotive in November 2022. Advanced Safety and User Experience includes amounts recognized as part of the preliminary purchase price allocation following the acquisition of Wind River in December 2022. Refer to Note 20. Acquisitions and Divestitures for additional information on these acquisitions. |
Reconciliation of Segment Adjusted OI to Consolidated Net Income | The reconciliations of Adjusted Operating Income to net income attributable to Aptiv for the years ended December 31, 2022, 2021 and 2020 are as follows: Signal and Power Solutions Advanced Safety and User Experience Total (in millions) For the Year Ended December 31, 2022: Adjusted operating income $ 1,441 $ 144 $ 1,585 Amortization (139) (10) (149) Restructuring (30) (55) (85) Other acquisition and portfolio project costs (15) (11) (26) Asset impairments (8) — (8) Other charges related to Ukraine/Russia conflict (1) (54) — (54) Operating income $ 1,195 $ 68 1,263 Interest expense (219) Other expense, net (54) Income before income taxes and equity loss 990 Income tax expense (121) Equity loss, net of tax (279) Net income 590 Net loss attributable to noncontrolling interest (3) Net loss attributable to redeemable noncontrolling interest (1) Net income attributable to Aptiv $ 594 (1) Primarily consists of charges related to the designation of our majority owned Russian subsidiary as held for sale as of December 31, 2022. Refer to Note 20. Acquisitions and Divestitures for further information. Signal and Power Solutions Advanced Safety and User Experience Total (in millions) For the Year Ended December 31, 2021: Adjusted operating income $ 1,225 $ 153 $ 1,378 Amortization (141) (7) (148) Restructuring (8) (16) (24) Other acquisition and portfolio project costs (11) (4) (15) Asset impairments (1) (1) (2) Operating income $ 1,064 $ 125 1,189 Interest expense (150) Other expense, net (129) Income before income taxes and equity loss 910 Income tax expense (101) Equity loss, net of tax (200) Net income 609 Net income attributable to noncontrolling interest 19 Net income attributable to Aptiv $ 590 Signal and Power Solutions Advanced Safety and User Experience Total (in millions) For the Year Ended December 31, 2020: Adjusted operating income $ 900 $ 111 $ 1,011 Amortization (138) (6) (144) Restructuring (90) (46) (136) Other acquisition and portfolio project costs (12) (11) (23) Asset impairments (4) (6) (10) Deferred compensation related to acquisitions — (14) (14) Gain on business divestitures and other transactions — 1,434 1,434 Operating income $ 656 $ 1,462 2,118 Interest expense (164) Income before income taxes and equity loss 1,954 Income tax expense (49) Equity loss, net of tax (83) Net income 1,822 Net income attributable to noncontrolling interest 18 Net income attributable to Aptiv $ 1,804 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | Information concerning principal geographic areas is set forth below. Net sales reflects the manufacturing location and is for the years ended December 31, 2022, 2021 and 2020. Long-lived assets is as of December 31, 2022, 2021 and 2020. Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 Net Sales Long-Lived Assets (1) Net Sales Long-Lived Assets (1) Net Sales Long-Lived Assets (1) (in millions) United States (2) $ 6,292 $ 1,136 $ 5,196 $ 1,010 $ 4,382 $ 985 Other North America 159 291 136 248 112 253 Europe, Middle East & Africa (3) 5,372 1,429 5,179 1,390 4,483 1,440 Asia Pacific (4) 5,274 1,031 4,829 978 3,898 953 South America 392 59 278 51 191 50 Total $ 17,489 $ 3,946 $ 15,618 $ 3,677 $ 13,066 $ 3,681 (1) Includes property, plant and equipment, net of accumulated depreciation and operating lease right-of-use assets. (2) Includes net sales and machinery, equipment and tooling that relate to the Company’s maquiladora operations located in Mexico. These assets are utilized to produce products sold to customers located in the U.S. (3) Includes Aptiv’s country of domicile, Jersey. The Company had no sales or long-lived assets in Jersey in any period. The largest portion of net sales in the Europe, Middle East & Africa region was $1,485 million, $1,436 million and $1,248 million in Germany for the years ended December 31, 2022, 2021 and 2020, respectively. (4) Net sales and long-lived assets in Asia Pacific are primarily attributable to China. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Cost | The components of lease expense were as follows: Year Ended December 31, 2022 2021 2020 (in millions) Lease cost: Finance lease cost: Amortization of right-of-use assets $ 4 $ 4 $ 5 Interest on lease liabilities 1 1 1 Total finance lease cost 5 5 6 Operating lease cost 122 119 111 Short-term lease cost 14 13 13 Variable lease cost 1 — — Sublease income (1) (5) (4) (4) Total lease cost $ 137 $ 133 $ 126 (1) Sublease income excludes rental income from owned properties of $8 million, $10 million and $10 million for the years ended December 31, 2022, 2021 and 2020, respectively, which is included in other income, net. |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow and other information related to leases was as follows: Year Ended December 31, 2022 2021 2020 (in millions) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for finance leases $ 1 $ 1 $ 1 Operating cash flows for operating leases 116 122 107 Financing cash flows for finance leases 4 4 4 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 102 $ 74 $ 35 Finance leases 3 1 1 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, 2022 2021 (dollars in millions) Operating leases: Operating lease right-of-use assets $ 451 $ 383 Accrued liabilities $ 109 $ 92 Long-term operating lease liabilities 361 304 Total operating lease liabilities $ 470 $ 396 Finance leases: Property and equipment $ 35 $ 26 Less: accumulated depreciation (19) (15) Total property, net $ 16 $ 11 Short-term debt $ 6 $ 3 Long-term debt 12 10 Total finance lease liabilities $ 18 $ 13 Weighted average remaining lease term: Operating leases 6 years 6 years Finance leases 4 years 5 years Weighted average discount rate: Operating leases 3.25 % 3.00 % Finance leases 4.00 % 3.50 % |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Operating Finance (in millions) As of December 31, 2022 2023 $ 121 $ 6 2024 95 5 2025 78 4 2026 65 3 2027 49 2 Thereafter 106 1 Total lease payments 514 21 Less: imputed interest (44) (3) Total $ 470 $ 18 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Additions Balance at Beginning of Period Charged to Costs and Expenses Deductions Other Activity Balance at End of Period (in millions) December 31, 2022: Allowance for doubtful accounts $ 37 $ 27 $ (12) $ — $ 52 Tax valuation allowance (a) $ 766 $ 57 $ (83) $ 16 $ 756 December 31, 2021: Allowance for doubtful accounts $ 40 $ 22 $ (24) $ (1) $ 37 Tax valuation allowance (a) $ 832 $ 25 $ (78) $ (13) $ 766 December 31, 2020: Allowance for doubtful accounts $ 37 $ 39 $ (39) $ 3 $ 40 Tax valuation allowance (a) $ 1,075 $ 84 $ (333) $ 6 $ 832 (a) Additions Charged to Costs and Expenses and Deductions are primarily related to taxable losses for which the tax benefit has been reserved. |
General (Details)
General (Details) | 5 Months Ended | 11 Months Ended | |
May 19, 2011 | Nov. 22, 2011 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Plan of Reorganization, Date Plan Confirmed | May 19, 2011 | ||
Initial Offering Period | November 22, 2011 | ||
Number of Largest OEM Customers | 25 | ||
Number of Manufacturing Facilities | 131 | ||
Number of Major Technical Centers | 11 | ||
Number of Countries in which Entity Operates | 48 | ||
Number of Scientists, Engineers, and Technicians | 22,000 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jun. 12, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2022 | |
Significant Accounting Policies [Line Items] | |||||
Investment Income, Dividend | $ 5 | $ 6 | $ 9 | ||
Equity investments | $ 67 | $ 30 | |||
Preferred Stock, Dividend Rate, Percentage | 5.50% | ||||
Preferred shares, par value per share (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | ||
Research and Development expense | $ 1,120 | $ 1,030 | 1,024 | ||
Accounts receivable, net | 3,433 | 2,784 | |||
Allowance for Doubtful Accounts Receivable | 52 | 37 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 27 | 22 | 39 | ||
Reimbursable engineering costs | 250 | 286 | |||
Property Plant & Equipment, net | 3,495 | 3,294 | |||
Impairment of Intangible Assets (Excluding Goodwill) | 0 | 0 | 0 | ||
Goodwill, Impairment Loss | 0 | 0 | 0 | ||
Foreign Currency Transaction Gain (Loss), Net of Tax | (30) | 0 | $ (20) | ||
Government Assistance, Amount | $ 20 | ||||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | ||||
Intercable Automotive | |||||
Significant Accounting Policies [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 85% | ||||
Mutschlechner family | Intercable Automotive | |||||
Significant Accounting Policies [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 15% | ||||
GM | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts Receivable | $ 231 | 208 | |||
Stellantis | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts Receivable | 325 | 317 | |||
Ford | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts Receivable | 250 | 220 | |||
VW | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts Receivable | $ 186 | $ 163 | |||
Customer Concentration Risk | Total Net Sales | GM, Stellantis, Ford and VW | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 34% | 35% | 38% | ||
Customer Concentration Risk | Total Net Sales | GM | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 9% | 8% | 9% | ||
Customer Concentration Risk | Total Net Sales | Stellantis | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 9% | 11% | 12% | ||
Customer Concentration Risk | Total Net Sales | Ford | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 8% | 7% | 7% | ||
Customer Concentration Risk | Total Net Sales | VW | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 8% | 9% | 10% | ||
Special Tools | |||||
Significant Accounting Policies [Line Items] | |||||
Property Plant & Equipment, net | $ 437 | $ 405 | |||
Aptiv-Owned Special Tools | |||||
Significant Accounting Policies [Line Items] | |||||
Property Plant & Equipment, net | 350 | 303 | |||
Customer-Owned Special Tools | |||||
Significant Accounting Policies [Line Items] | |||||
Property Plant & Equipment, net | 87 | 102 | |||
Long-term assets | |||||
Significant Accounting Policies [Line Items] | |||||
Equity investments | 67 | 30 | |||
Publicly traded equity securities | 17 | $ 66 | |||
Property, Plant and Equipment | |||||
Significant Accounting Policies [Line Items] | |||||
Government Assistance, Amount | $ 10 | ||||
Weighted Average | |||||
Significant Accounting Policies [Line Items] | |||||
Government Assistance, Transaction Duration | 5 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Productive material | $ 1,570 | $ 1,311 |
Work-in-process | 164 | 172 |
Finished goods | 606 | 531 |
Total | $ 2,340 | $ 2,014 |
Assets Current Assets (Details)
Assets Current Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Value added tax receivable | $ 167 | $ 178 |
Prepaid insurance and other expenses | 75 | 63 |
Reimbursable engineering costs | 90 | 110 |
Notes receivable | 8 | 16 |
Income and other taxes receivable | 40 | 54 |
Deposits to vendors | 7 | 6 |
Derivative financial instruments | 44 | 38 |
Capitalized upfront fees | 17 | 34 |
Contract assets | 24 | 0 |
Other | 8 | 0 |
Total | $ 480 | $ 499 |
Assets Non Current assets (Deta
Assets Non Current assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred income taxes | $ 259 | $ 159 |
Unamortized Revolving Credit Facility debt issuance costs | 8 | 11 |
Income and other taxes receivable | 30 | 28 |
Reimbursable engineering costs | 160 | 176 |
Value added tax receivable | 2 | 20 |
Total investments | 84 | 96 |
Derivative financial instruments | 14 | 3 |
Capitalized upfront fees | 61 | 58 |
Contract assets | 43 | 0 |
Other | 79 | 71 |
Total | $ 740 | $ 622 |
Investments in Affiliates Narra
Investments in Affiliates Narrative (Details) € in Millions, $ in Millions | 12 Months Ended | |||||||||
Mar. 15, 2022 USD ($) | Mar. 15, 2022 EUR (€) | Dec. 31, 2022 USD ($) affiliates | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2017 USD ($) | Dec. 31, 2016 USD ($) | Dec. 31, 2015 USD ($) | May 31, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Number of non-consolidated affiliates | affiliates | 5 | |||||||||
Investment in affiliates | $ 1,723 | $ 1,797 | ||||||||
Investment Income, Dividend | 5 | 6 | $ 9 | |||||||
Equity Method Investment, Impairment | 0 | 0 | 0 | |||||||
Equity investments | 67 | 30 | ||||||||
Payments to Acquire Interest in Joint Venture | 42 | 2 | 2 | |||||||
Equity Securities, FV-NI, Restricted | 1 | |||||||||
Change in fair value of equity investments without readily determinable fair value | 0 | 9 | 10 | |||||||
TTTech Auto AG | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Noncontrolling Interest, Ownership Percentage | 20% | 20% | ||||||||
Investment in affiliates | 205 | |||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | $ 151 | |||||||||
TTTech Auto AG | Euro | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Payments to Acquire Equity Method Investments | € | € 200 | |||||||||
TTTech Auto AG | United States of America, Dollars | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Payments to Acquire Equity Method Investments | $ 220 | |||||||||
Promotora de Partes Electricas Automotrices | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Noncontrolling Interest, Ownership Percentage | 40% | |||||||||
Quanergy Systems, Inc | Advanced Safety and User Experience | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | $ 0 | 6 | ||||||||
Proceeds from sale of technology investments | 3 | |||||||||
Payments to Acquire Interest in Joint Venture | $ 3 | $ 3 | ||||||||
Otonomo Technologies Ltd. | Advanced Safety and User Experience | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Proceeds from sale of technology investments | 3 | |||||||||
Payments to Acquire Interest in Joint Venture | $ 3 | $ 15 | ||||||||
Innoviz Technologies | Advanced Safety and User Experience | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | $ 25 | |||||||||
Proceeds from sale of technology investments | 18 | |||||||||
Payments to Acquire Interest in Joint Venture | $ 15 | |||||||||
LeddarTech, Inc. | Advanced Safety and User Experience | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | 19 | 19 | ||||||||
StradVision, Inc. | Advanced Safety and User Experience | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | $ 40 | $ 0 | ||||||||
StradVision, Inc. | Advanced Safety and User Experience | United States of America, Dollars | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | $ 40 | |||||||||
StradVision, Inc. | Advanced Safety and User Experience | Korea (South), Won | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments | $ 50,000 |
Investments in Affiliates Signi
Investments in Affiliates Significant Affiliates Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current assets | $ 7,784 | $ 8,436 | $ 7,784 | $ 8,436 | ||
Non-current assets | 14,100 | 9,571 | 14,100 | 9,571 | ||
Total assets | 21,884 | 18,007 | 21,884 | 18,007 | ||
Current liabilities | 4,865 | 4,207 | 4,865 | 4,207 | ||
Non-current liabilities | 7,925 | 5,239 | 7,925 | 5,239 | ||
Shareholders’ equity | 8,998 | 8,561 | 8,998 | 8,561 | $ 8,100 | $ 4,011 |
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | 21,884 | 18,007 | 21,884 | 18,007 | ||
Net sales | 4,640 | 4,134 | 17,489 | 15,618 | 13,066 | |
Gross loss | 813 | 591 | ||||
Net loss | 266 | 39 | 590 | 609 | 1,822 | |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||
Current assets | 1,059 | 794 | 1,059 | 794 | ||
Non-current assets | 2,672 | 3,163 | 2,672 | 3,163 | ||
Total assets | 3,731 | 3,957 | 3,731 | 3,957 | ||
Current liabilities | 252 | 194 | 252 | 194 | ||
Non-current liabilities | 87 | 112 | 87 | 112 | ||
Shareholders’ equity | 3,392 | 3,651 | 3,392 | 3,651 | ||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ 3,731 | $ 3,957 | 3,731 | 3,957 | ||
Net sales | 761 | 599 | 553 | |||
Gross loss | (357) | (244) | (71) | |||
Net loss | $ (589) | $ (393) | $ (154) |
Investments in Affiliates Trans
Investments in Affiliates Transactions with Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Sales to affiliates | $ 35 | $ 30 | $ 7 |
Purchases from affiliates | $ 18 | $ 19 | $ 32 |
Investments in Affiliates Amoun
Investments in Affiliates Amounts Due to / From Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Receivables due from affiliates | $ 8 | $ 11 |
Payables due to affiliates | $ 18 | $ 20 |
Investments in Affiliates Techn
Investments in Affiliates Technology Investments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Total equity investments without readily determinable fair values | $ 67 | $ 30 |
Total publicly traded equity securities | 17 | 66 |
Total investments | 84 | 96 |
Advanced Safety and User Experience | StradVision, Inc. | ||
Total equity investments without readily determinable fair values | 40 | 0 |
Advanced Safety and User Experience | LeddarTech, Inc. | ||
Total equity investments without readily determinable fair values | 19 | 19 |
Advanced Safety and User Experience | Quanergy Systems, Inc | ||
Total equity investments without readily determinable fair values | 0 | 6 |
Advanced Safety and User Experience | Other investments | ||
Total equity investments without readily determinable fair values | 8 | 5 |
Advanced Safety and User Experience | Smart Eye AB | ||
Total publicly traded equity securities | 2 | 11 |
Advanced Safety and User Experience | Otonomo Technologies Ltd. | ||
Total publicly traded equity securities | 4 | 39 |
Signal and Power Solutions | Valens Semiconductor Ltd. | ||
Total publicly traded equity securities | $ 11 | $ 16 |
Property, Net Table (Details)
Property, Net Table (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Total | $ 7,575 | $ 7,013 |
Less: accumulated depreciation | (4,080) | (3,719) |
Total property, net | 3,495 | 3,294 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total | 79 | 82 |
Land and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 200 | 186 |
Land and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Land and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 20 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 699 | 679 |
Buildings | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 5,263 | 4,899 |
Machinery, equipment and tooling | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Machinery, equipment and tooling | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 20 years | |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 871 | 802 |
Furniture and office equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Furniture and office equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 463 | $ 365 |
Property, Net Narrative (Detail
Property, Net Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of sales | Cost of sales | Cost of sales |
Capital Expenditures Incurred but Not yet Paid | $ 300 | $ 280 | $ 164 |
Fair Value, Measurements, Nonrecurring | |||
Property, Plant and Equipment [Line Items] | |||
Impairment of Long-Lived Assets Held-for-use | $ 8 | $ 2 | $ 10 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill Intangible Assets and Goodwill by Major Class (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 3,691 | $ 1,934 | |
Accumulated Amortization | 1,264 | 1,134 | $ 1,004 |
Finite-Lived Intangible Assets, Net Carrying Amount | 2,427 | 800 | |
Goodwill | 5,106 | 2,511 | 2,580 |
Intangible Assets, Gross (Including Goodwill) | 8,955 | 4,609 | $ 4,675 |
Intangible assets, net | 7,691 | 3,475 | |
In-process research and development | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 4 | 4 | |
Trade names | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Indefinite-lived Intangible Assets (Excluding Goodwill) | 154 | 160 | |
Patents and developed technology | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | 1,504 | 673 | |
Accumulated Amortization | 551 | 506 | |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 953 | 167 | |
Patents and developed technology | Minimum | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Estimated Useful Lives | 3 years | ||
Patents and developed technology | Maximum | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Estimated Useful Lives | 16 years | ||
Customer relationships | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 1,981 | 1,186 | |
Accumulated Amortization | 661 | 578 | |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 1,320 | 608 | |
Customer relationships | Minimum | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Estimated Useful Lives | 9 years | ||
Customer relationships | Maximum | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Estimated Useful Lives | 22 years | ||
Trade names | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | $ 206 | 75 | |
Accumulated Amortization | 52 | 50 | |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 154 | $ 25 | |
Trade names | Minimum | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Estimated Useful Lives | 15 years | ||
Trade names | Maximum | |||
Acquired Finite and Infinite-Lived Intangible Assets and Goodwill [Line Items] | |||
Estimated Useful Lives | 20 years |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill Amortization Expense (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 230 |
2024 | 210 |
2025 | 210 |
2026 | 210 |
2027 | $ 195 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill Gross Carrying Amount of Intangibles and Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Gross Carrying Amount [Roll Forward] | |||
Balance at January 1 | $ 4,609 | $ 4,675 | |
Acquisitions | [1] | 4,434 | 132 |
Foreign currency translation and other | (88) | (198) | |
Balance at December 31 | $ 8,955 | $ 4,609 | |
[1]Primarily attributable to the 2022 acquisitions of Wind River and Intercable Automotive and the 2021 acquisitions of El-Com, Krono-Safe and Ulti-Mate, as further described in Note 20. Acquisitions and Divestitures. |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill Accumulated Amortization Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Amortization [Roll Forward] | ||
Balance at January 1 | $ 1,134 | $ 1,004 |
Amortization | 149 | 148 |
Foreign currency translation and other | (19) | (18) |
Balance at December 31 | $ 1,264 | $ 1,134 |
Intangible Assets and Goodwil_6
Intangible Assets and Goodwill Goodwill Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance at January 1 | $ 2,511 | $ 2,580 |
Acquisitions | 2,659 | 74 |
Foreign currency translation and other | (64) | (143) |
Balance at December 31 | 5,106 | 2,511 |
Signal and Power Solutions | ||
Goodwill [Line Items] | ||
Balance at January 1 | 2,475 | 2,553 |
Acquisitions | 357 | 65 |
Foreign currency translation and other | (76) | (143) |
Balance at December 31 | 2,756 | 2,475 |
Advanced Safety and User Experience | ||
Goodwill [Line Items] | ||
Balance at January 1 | 36 | 27 |
Acquisitions | 2,302 | 9 |
Foreign currency translation and other | 12 | 0 |
Balance at December 31 | $ 2,350 | $ 36 |
Liabilities Other Liabilities,
Liabilities Other Liabilities, Current (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Payroll-related obligations | $ 330 | $ 286 |
Employee benefits, including current pension obligations | 151 | 83 |
Income and other taxes payable | 188 | 157 |
Warranty obligations | 43 | 41 |
Restructuring | 65 | 42 |
Customer deposits | 82 | 83 |
Derivative financial instruments | $ 29 | $ 13 |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Accrued interest | $ 51 | $ 30 |
MCPS dividends payable | 3 | 3 |
Contract liabilities | 90 | 0 |
Operating lease liabilities | 109 | 92 |
Other | 543 | 416 |
Total | $ 1,684 | $ 1,246 |
Liabilities Other Liabilities_2
Liabilities Other Liabilities, Non Current (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Environmental | $ 1 | $ 4 |
Extended disability benefits | 4 | 5 |
Warranty obligations | 9 | 8 |
Restructuring | 18 | 21 |
Payroll-related obligations | 10 | 11 |
Accrued income taxes | 161 | 153 |
Deferred income taxes | 481 | 153 |
Contract liabilities | 9 | 0 |
Derivative financial instruments | 7 | 7 |
Other | 50 | 74 |
Total | $ 750 | $ 436 |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrual balance at beginning of year | $ 49 | $ 59 |
Provision for estimated warranties incurred during the year | 44 | 36 |
Changes in estimate for pre-existing warranties | 3 | 15 |
Settlements made during the year (in cash or in kind) | (43) | (59) |
Foreign currency translation and other | (1) | (2) |
Accrual balance at end of year | 52 | $ 49 |
Minimum | Warranty Obligations | ||
Product Warranty Liability [Line Items] | ||
Range of Possible Loss, Portion Not Accrued | 0 | |
Maximum | Warranty Obligations | ||
Product Warranty Liability [Line Items] | ||
Range of Possible Loss, Portion Not Accrued | $ 10 |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 85 | $ 24 | $ 136 |
Restructuring and Related Cost, Expected Cost | 10 | ||
Cash expenditures for restructuring | 67 | 80 | 151 |
Signal and Power Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 30 | 8 | 90 |
Restructuring and Related Cost, Expected Cost | 5 | ||
Advanced Safety and User Experience | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 55 | $ 16 | 46 |
Restructuring and Related Cost, Expected Cost | 5 | ||
Europe, Middle East and Africa | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 61 | 57 | |
North America | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 23 | 62 | |
COVID-19 pandemic | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 90 |
Restructuring Restructuring Cos
Restructuring Restructuring Costs by Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 85 | $ 24 | $ 136 |
Signal and Power Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | 30 | 8 | 90 |
Advanced Safety and User Experience | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring | $ 55 | $ 16 | $ 46 |
Restructuring Restructuring Lia
Restructuring Restructuring Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $ 63 | $ 125 | |
Provision for estimated expenses incurred during the year | 85 | 24 | $ 136 |
Payments made during the year | (67) | (80) | (151) |
Foreign currency and other | 2 | (6) | |
Ending Balance | 83 | 63 | 125 |
Employee Termination Benefits Liability | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 63 | 125 | |
Provision for estimated expenses incurred during the year | 85 | 24 | |
Payments made during the year | (67) | (80) | |
Foreign currency and other | 2 | (6) | |
Ending Balance | 83 | 63 | 125 |
Other Exit Costs Liability | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Provision for estimated expenses incurred during the year | 0 | 0 | |
Payments made during the year | 0 | 0 | |
Foreign currency and other | 0 | 0 | |
Ending Balance | $ 0 | $ 0 | $ 0 |
Debt Debt Outstanding (Details)
Debt Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Feb. 18, 2022 | Dec. 31, 2021 | Nov. 23, 2021 | Mar. 14, 2019 | Sep. 20, 2016 | Sep. 15, 2016 | Mar. 10, 2015 |
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 6,581 | |||||||
Finance leases and other | 38 | $ 14 | ||||||
Total debt | 6,491 | 4,067 | ||||||
Less: current portion | (31) | (8) | ||||||
Long-term debt | 6,460 | 4,059 | ||||||
Senior Notes | Senior Notes, 2.396% due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 697 | 0 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.396% | 2.396% | ||||||
Unamortized debt issuance costs | $ 3 | 0 | ||||||
Senior Notes | Euro-Denominated Senior Notes, 1.500% Due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 747 | 790 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||||||
Unamortized debt issuance costs | $ 1 | 2 | ||||||
Debt Instrument, Unamortized Discount | 1 | 1 | ||||||
Senior Notes | Euro-denominated Senior Notes, 1.600% Due 2028 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 533 | 563 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.60% | 1.60% | ||||||
Unamortized debt issuance costs | $ 2 | 3 | ||||||
Senior Notes | Senior Notes, 4.350% Due 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 298 | 298 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | ||||||
Unamortized debt issuance costs | $ 2 | 2 | ||||||
Senior Notes | Senior Notes, 3.250% due 2032 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 790 | 0 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | ||||||
Unamortized debt issuance costs | $ 7 | 0 | ||||||
Debt Instrument, Unamortized Discount | 3 | 0 | ||||||
Senior Notes | Senior Notes, 4.400% Due 2046 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 296 | 296 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | ||||||
Unamortized debt issuance costs | $ 3 | 3 | ||||||
Debt Instrument, Unamortized Discount | 1 | 1 | ||||||
Senior Notes | Senior Notes, 5.400% Due 2049 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 345 | 345 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | ||||||
Unamortized debt issuance costs | $ 4 | 4 | ||||||
Debt Instrument, Unamortized Discount | 1 | 1 | ||||||
Senior Notes | Senior Notes, 3.100% Due 2051 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 1,452 | 1,450 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||||||
Unamortized debt issuance costs | $ 16 | 17 | ||||||
Debt Instrument, Unamortized Discount | 32 | 33 | ||||||
Senior Notes | Senior Notes, 4.150% due 2052 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 987 | 0 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | ||||||
Unamortized debt issuance costs | $ 11 | 0 | ||||||
Debt Instrument, Unamortized Discount | 2 | 0 | ||||||
Loans Payable | Tranche A, Due 2026 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 308 | 311 | ||||||
Unamortized debt issuance costs | $ 1 | $ 2 |
Debt Maturities of Debt (Detail
Debt Maturities of Debt (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
2023 | $ 31 |
2024 | 32 |
2025 | 1,469 |
2026 | 262 |
2027 | 2 |
Thereafter | 4,785 |
Total | $ 6,581 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Loss on modification of debt | $ 0 | $ (1) | $ (4) |
Fees related to modification of debt agreements | 0 | (6) | $ (18) |
Letters of Credit Issued | 3 | $ 3 | |
Revolving Credit Facility | Revolving Credit Facility | JPMorgan Chase Bank, N.A. | |||
Line of Credit Facility [Line Items] | |||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 2,000 | ||
Revolving Credit Facility | Revolving Credit Facility | JPMorgan Chase Bank, N.A. | LIBOR plus | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 1.06% | 1.10% | |
Revolving Credit Facility | Revolving Credit Facility | JPMorgan Chase Bank, N.A. | ABR plus | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 0.06% | 0.10% | |
Amended and Restated Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Additional Borrowing Capacity | $ 1,000 | ||
Letters of Credit Issued | $ 1 | ||
Amended and Restated Credit Agreement | JPMorgan Chase Bank, N.A. | |||
Line of Credit Facility [Line Items] | |||
Covenant Compliance, Maximum Ratio of Indebtedness to EBITDA | 350% | ||
Debt Instrument, Covenant Compliance, Maximum Ratio of Indebtedness to EBITDA, Following Material Acquisition | 400% | ||
Revolving Credit Facility Increase (Decrease) In Percentage Usage Fee | 0.04% | ||
Revolving Credit Facility Increase (Decrease) In Percentage Commitment Fee | 0.01% | ||
Tranche A, Due 2026 | JPMorgan Chase Bank, N.A. | |||
Line of Credit Facility [Line Items] | |||
Tranche A Term Loan Increase (Decrease) In Percentage Usage Fee | 0.02% | ||
Tranche A, Due 2026 | JPMorgan Chase Bank, N.A. | LIBOR plus | Loans Payable | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 1.105% | 1.125% | |
Long-term Line of Credit | $ 309 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.48% | ||
Tranche A, Due 2026 | JPMorgan Chase Bank, N.A. | ABR plus | Loans Payable | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 0.105% | 0.125% |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) € in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 18, 2022 USD ($) | Nov. 23, 2021 USD ($) | Mar. 14, 2019 USD ($) | Sep. 20, 2016 USD ($) | Sep. 15, 2016 USD ($) | Mar. 10, 2015 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 15, 2016 EUR (€) | Nov. 19, 2015 USD ($) | Mar. 10, 2015 EUR (€) | Mar. 03, 2014 USD ($) | Feb. 14, 2013 USD ($) | May 17, 2011 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||
Loss on extinguishment of debt | $ (126,000,000) | $ 0 | $ (126,000,000) | $ 0 | ||||||||||||
Senior Notes | Euro-Denominated Senior Notes, 1.500% Due 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.55% | |||||||||||||||
Debt Instrument, Price | 99.54% | |||||||||||||||
Payments of debt issuance costs | $ 5,000,000 | |||||||||||||||
Senior Notes | Euro-Denominated Senior Notes, 1.500% Due 2025 | Derivatives designated as cash flow hedges: | Derivatives designated as net investment hedges: | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | € | € 700 | |||||||||||||||
Senior Notes | Senior Notes, 6.125% Due 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 500,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | |||||||||||||||
Senior Notes | Euro-denominated Senior Notes, 1.600% Due 2028 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.60% | 1.60% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.611% | |||||||||||||||
Debt Instrument, Price | 99.881% | |||||||||||||||
Payments of debt issuance costs | $ 4,000,000 | |||||||||||||||
Senior Notes | Euro-denominated Senior Notes, 1.600% Due 2028 | Derivatives designated as cash flow hedges: | Derivatives designated as net investment hedges: | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | € | € 500 | |||||||||||||||
Senior Notes | Senior Notes, 5.00% Due 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 800,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |||||||||||||||
Senior Notes | Senior Notes, 3.15% Due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 650,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | |||||||||||||||
Senior Notes | Senior Notes, 4.150% Due 2024 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 700,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | |||||||||||||||
Senior Notes | Senior Notes, 4.25% Due 2026 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 650,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |||||||||||||||
Senior Notes | Senior Notes, 4.400% Due 2046 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.433% | |||||||||||||||
Debt Instrument, Price | 99.454% | |||||||||||||||
Payments of debt issuance costs | $ 3,000,000 | |||||||||||||||
Senior Notes | 2019 Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 650,000,000 | |||||||||||||||
Payments of debt issuance costs | 7,000,000 | |||||||||||||||
Senior Notes | Senior Notes, 4.350% Due 2029 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 300,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.35% | 4.35% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.365% | |||||||||||||||
Debt Instrument, Price | 99.879% | |||||||||||||||
Senior Notes | Senior Notes, 5.400% Due 2049 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 350,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.40% | 5.40% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.43% | |||||||||||||||
Debt Instrument, Price | 99.558% | |||||||||||||||
Senior Notes | Senior Notes, 3.100% Due 2051 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 1,500,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.10% | 3.10% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.214% | |||||||||||||||
Debt Instrument, Price | 97.814% | |||||||||||||||
Payments of debt issuance costs | $ 17,000,000 | |||||||||||||||
Senior Notes | 2022 Senior Notes | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 2,500,000,000 | |||||||||||||||
Payments of debt issuance costs | 22,000,000 | |||||||||||||||
Senior Notes | Senior Notes, 2.396% due 2025 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 700,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.396% | 2.396% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.396% | |||||||||||||||
Debt Instrument, Price | 100% | |||||||||||||||
Senior Notes | Senior Notes, 4.150% due 2052 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 1,000,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.163% | |||||||||||||||
Debt Instrument, Price | 99.783% | |||||||||||||||
Senior Notes | Senior Notes, 3.250% due 2032 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Instrument, Face Amount | $ 800,000,000 | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | ||||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.297% | |||||||||||||||
Debt Instrument, Price | 99.60% |
Debt Other Financing (Details)
Debt Other Financing (Details) € in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) | |
Debt Instrument [Line Items] | ||||
Other Debt and Finance Lease Obligations | $ 38 | $ 14 | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 190 | 159 | $ 154 | |
Letters of Credit Issued | $ 3 | $ 3 | ||
European Factoring Program | Accounts Receivable Factoring | ||||
Debt Instrument [Line Items] | ||||
Maximum Funding From Factoring Program | € | € 450 | |||
New European Factoring Program | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.20% | 0.20% | ||
New European Factoring Program | EURIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread of variable rate | 0.50% | |||
New European Factoring Program | LIBOR plus | ||||
Debt Instrument [Line Items] | ||||
Basis spread of variable rate | 0.50% |
Pension Benefits Narrative (Det
Pension Benefits Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined Benefit Pension Plan, Postemployment Benefit Period | 5 years | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 36 | ||
Defined Contribution Plan, Cost | $ 39 | $ 37 | $ 17 |
Percentage Change in Actuarial Assumptions and Plan Provisions Amortized | 10% |
Pension Benefits Funded Status
Pension Benefits Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Benefit obligation at beginning of year | |||
Actuarial gain | $ (172) | ||
Change in plan assets: | |||
Fair Value of Plan Assets at beginning of year | 438 | ||
Fair Value of Plan Assets at end of year | 307 | $ 438 | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term liabilities | (354) | (440) | |
United States | |||
Benefit obligation at beginning of year | |||
Benefit obligation at beginning of year | 5 | 8 | |
Actuarial gain | 1 | 0 | |
Benefits paid | (1) | (3) | |
Benefit obligation at end of year | 3 | 5 | $ 8 |
Change in plan assets: | |||
Fair Value of Plan Assets at beginning of year | 0 | 0 | |
Aptiv contributions | 1 | 3 | |
Benefits paid | 1 | 3 | |
Fair Value of Plan Assets at end of year | 0 | 0 | 0 |
Underfunded status | (3) | (5) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Current liabilities | (1) | (1) | |
Long-term liabilities | (2) | (4) | |
Total | (3) | (5) | |
Amounts recognized in accumulated other comprehensive loss consist of (pre-tax): | |||
Actuarial loss | 4 | 6 | |
Total | 4 | 6 | |
Non-U.S. Plans | |||
Benefit obligation at beginning of year | |||
Benefit obligation at beginning of year | 861 | 977 | |
Service cost | 15 | 18 | 18 |
Interest cost | 23 | 19 | 20 |
Actuarial gain | (171) | (62) | |
Benefits paid | (35) | (36) | |
Impact of curtailments | 0 | (3) | |
Exchange rate movements and other | (42) | (52) | |
Benefit obligation at end of year | 651 | 861 | 977 |
Change in plan assets: | |||
Fair Value of Plan Assets at beginning of year | 438 | 438 | |
Actual return on plan assets | (89) | 23 | |
Aptiv contributions | 23 | 25 | |
Benefits paid | 35 | 36 | |
Exchange rate movements and other | (30) | (12) | |
Fair Value of Plan Assets at end of year | 307 | 438 | $ 438 |
Underfunded status | (344) | (423) | |
Amounts recognized in the consolidated balance sheets consist of: | |||
Long-term assets | 25 | 29 | |
Current liabilities | (18) | (17) | |
Long-term liabilities | (351) | (435) | |
Total | (344) | (423) | |
Amounts recognized in accumulated other comprehensive loss consist of (pre-tax): | |||
Actuarial loss | 17 | 101 | |
Total | $ 17 | $ 101 |
Pension Benefits Benefit Obliga
Pension Benefits Benefit Obligations and Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Plans with Plan Assets in Excess of ABO | |||
Fair Value of Plan Assets | $ 307 | $ 438 | |
Liability, Other Retirement Benefits | 1 | 1 | |
U.S. Plans | |||
(in millions) Plans with ABO in Excess of Plan Assets | |||
PBO | 3 | 5 | |
ABO | 3 | 5 | |
Fair value of plan assets at end of year | 0 | 0 | |
Plans with Plan Assets in Excess of ABO | |||
PBO | 0 | 0 | |
ABO | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation | 3 | 5 | $ 8 |
Defined Benefit Plan, Accumulated Benefit Obligation | 3 | 5 | |
Fair Value of Plan Assets | 0 | 0 | 0 |
Non-U.S. Plans | |||
(in millions) Plans with ABO in Excess of Plan Assets | |||
PBO | 449 | 445 | |
ABO | 398 | 405 | |
Fair value of plan assets at end of year | 80 | 7 | |
Plans with Plan Assets in Excess of ABO | |||
PBO | 202 | 416 | |
ABO | 193 | 393 | |
Fair value of plan assets at end of year | 227 | 431 | |
Defined Benefit Plan, Benefit Obligation | 651 | 861 | 977 |
Defined Benefit Plan, Accumulated Benefit Obligation | 591 | 798 | |
Fair Value of Plan Assets | $ 307 | $ 438 | $ 438 |
Pension Benefits Net Periodic B
Pension Benefits Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of actuarial losses | $ 1 | $ 1 | $ 1 |
Net periodic benefit cost | 1 | 1 | 1 |
Non-U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 15 | 18 | 18 |
Interest cost | 23 | 19 | 20 |
Expected return on plan assets | (17) | (17) | (17) |
Settlement loss | 0 | 1 | 1 |
Curtailment loss | 0 | 3 | 0 |
Amortization of actuarial losses | 8 | 14 | 14 |
Other | 0 | 0 | 1 |
Net periodic benefit cost | $ 29 | $ 38 | $ 37 |
Pension Benefits Assumptions Us
Pension Benefits Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Weighted-average discount rate | 5.20% | 1.90% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Weighted-average discount rate | 1.90% | 1.20% | 2.40% |
Non-U.S. Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Weighted-average discount rate | 5.95% | 3.09% | |
Weighted-average rate of increase in compensation levels | 2.82% | 2.47% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Weighted-average discount rate | 3.09% | 2.21% | 2.87% |
Weighted-average rate of increase in compensation levels | 2.47% | 3.64% | 3.69% |
Weighted-average expected long-term rate of return on plan assets | 4.46% | 4.29% | 4.68% |
United Kingdom | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Weighted-average expected long-term rate of return on plan assets | 3.75% | ||
Mexico | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Weighted-average expected long-term rate of return on plan assets | 7.50% |
Pension Benefits Change in Assu
Pension Benefits Change in Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Retirement Benefits [Abstract] | |
Defined Benefit Plan, Change in Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Decrease | 0.25% |
Defined Benefit Plan, Change in Assumptions Used Calculating Benefit Obligation, Discount Rate Decrease | 0.25% |
Defined Benefit Plan, Effect of Change in Assumption Used Calculating Net Periodic Benefit Cost, Discount Rate Decrease | $ 1 |
Defined Benefit Plan, Effect of Change in Assumption Used Calculating Benefit Obligation, Discount Rate Decrease | $ 16 |
Defined Benefit Plan, Change in Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Increase | 0.25% |
Defined Benefit Plan, Change in Assumptions Used Calculating Benefit Obligation, Discount Rate Increase | 0.25% |
Defined Benefit Plan, Effect of Change in Assumption Used Calculating Net Periodic Benefit Cost, Discount Rate Increase | $ 1 |
Defined Benefit Plan, Effect of Change in Assumption Used Calculating Benefit Obligation, Discount Rate Increase | $ 15 |
Defined Benefit Plan, Change in Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets Decrease | 0.25% |
Defined Benefit Plan, Effect of Change in Assumption Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets Decrease | $ 1 |
Defined Benefit Plan, Change in Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets Increase | 0.25% |
Defined Benefit Plan, Effect of Change in Assumption Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets Increase | $ 1 |
Pension Benefits Expected Futur
Pension Benefits Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 1 |
2024 | 1 |
2025 | 1 |
2026 | 0 |
2027 | 0 |
2028 – 2032 | 0 |
Non-U.S. Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 49 |
2024 | 41 |
2025 | 43 |
2026 | 49 |
2027 | 53 |
2028 – 2032 | $ 285 |
Pension Benefits Fair Value of
Pension Benefits Fair Value of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 307 | $ 438 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 12 | 13 | |
Equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 6 | 33 | |
Bond mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 110 | 216 | |
Real estate trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 36 | 35 | |
Private debt funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 17 | ||
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2 | 4 | |
Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 59 | 56 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 37 | 41 | |
Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 11 | ||
Bank Time Deposits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 28 | 29 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 100 | 110 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 4 | 13 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Bond mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Private debt funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 59 | 56 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 37 | 41 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Bank Time Deposits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 152 | 278 | |
Significant Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 8 | 0 | |
Significant Observable Inputs (Level 2) | Equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 6 | 33 | |
Significant Observable Inputs (Level 2) | Bond mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 110 | 216 | |
Significant Observable Inputs (Level 2) | Real estate trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Private debt funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Significant Observable Inputs (Level 2) | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Observable Inputs (Level 2) | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | ||
Significant Observable Inputs (Level 2) | Bank Time Deposits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 28 | 29 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 55 | 50 | |
Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Bond mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Real estate trust funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 36 | 35 | $ 34 |
Significant Unobservable Inputs (Level 3) | Private debt funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 17 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 2 | 4 | 7 |
Significant Unobservable Inputs (Level 3) | Debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Hedge Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | 0 | 11 | $ 9 |
Significant Unobservable Inputs (Level 3) | Bank Time Deposits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair Value of Plan Assets | $ 0 | $ 0 |
Pension Benefits Fair Value o_2
Pension Benefits Fair Value of Plan Assets, Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | $ 438 | |
Fair Value of Plan Assets at end of year | 307 | $ 438 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 50 | |
Fair Value of Plan Assets at end of year | 55 | 50 |
Real estate trust funds | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 35 | |
Fair Value of Plan Assets at end of year | 36 | 35 |
Real estate trust funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 35 | 34 |
Relating to assets still held at the reporting date | 5 | 3 |
Purchases, sales and settlements | 0 | (1) |
Foreign currency translation and other | (4) | (1) |
Fair Value of Plan Assets at end of year | 36 | 35 |
Hedge Funds | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 11 | |
Fair Value of Plan Assets at end of year | 11 | |
Hedge Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 11 | 9 |
Relating to assets still held at the reporting date | 1 | 2 |
Purchases, sales and settlements | (10) | 0 |
Foreign currency translation and other | (2) | 0 |
Fair Value of Plan Assets at end of year | 0 | 11 |
Insurance contracts | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 4 | |
Fair Value of Plan Assets at end of year | 2 | 4 |
Insurance contracts | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 4 | 7 |
Relating to assets still held at the reporting date | 0 | 0 |
Purchases, sales and settlements | 0 | (3) |
Foreign currency translation and other | (2) | 0 |
Fair Value of Plan Assets at end of year | 2 | 4 |
Private Lending Funds | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at end of year | 17 | |
Private Lending Funds | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement [Abstract] | ||
Fair Value of Plan Assets at beginning of year | 0 | 0 |
Relating to assets still held at the reporting date | (2) | 0 |
Purchases, sales and settlements | 19 | 0 |
Foreign currency translation and other | 0 | 0 |
Fair Value of Plan Assets at end of year | $ 17 | $ 0 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 2 | $ 4 |
Brazil | ||
Loss Contingencies [Line Items] | ||
Brazil Loss Contingency, Claims asserted against Delphi | 105 | |
Loss contingency accrual | 5 | |
Brazil | Minimum | ||
Loss Contingencies [Line Items] | ||
Range of Possible Loss, Portion Not Accrued | 0 | |
Brazil | Maximum | ||
Loss Contingencies [Line Items] | ||
Range of Possible Loss, Portion Not Accrued | $ 40 |
Income Taxes Income before Inco
Income Taxes Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) | $ 24 | $ (2) | $ (65) |
Non-U.S. income | 966 | 912 | 2,019 |
Income before income taxes and equity loss | $ 990 | $ 910 | $ 1,954 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current income tax expense (benefit): | |||
U.S. federal | $ 45 | $ 1 | $ (53) |
Non-U.S. | 205 | 156 | 154 |
U.S. state and local | 15 | 4 | 0 |
Total current | 265 | 161 | 101 |
Deferred income tax expense (benefit), net: | |||
U.S. federal | (43) | (17) | (14) |
Non-U.S. | (90) | (43) | (37) |
U.S. state and local | (11) | 0 | (1) |
Total deferred | (144) | (60) | (52) |
Total income tax provision | 121 | 101 | 49 |
Income Taxes Paid or Withheld | $ 194 | $ 172 | $ 106 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Notional U.S. federal income taxes at statutory rate | $ 208 | $ 191 | $ 410 |
Income taxed at other rates | (61) | (81) | (339) |
Change in valuation allowance | (63) | (17) | 10 |
Other change in tax reserves | 10 | 19 | 30 |
Intragroup reorganizations | 0 | (7) | (49) |
Withholding taxes | 38 | 37 | 26 |
Tax credits | (19) | (23) | (16) |
Change in tax law | 0 | (7) | (2) |
Other adjustments | 8 | (11) | (21) |
Total income tax provision | $ 121 | $ 101 | $ 49 |
Effective tax rate | 12% | 11% | 3% |
Income Tax Reconciliation, Other Reconciling Items [Abstract] | |||
Income Taxed at Other Rates Foreign Income Rate Differential in China, Turkey, and Honduras | $ 12 | $ 10 | $ 5 |
Income Tax Holiday, Aggregate Dollar Amount | $ 3 | $ 1 | $ 1 |
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.01 | $ 0.01 | $ 0.01 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred tax assets: | |||
Pension | $ 56 | $ 76 | |
Employee benefits | 26 | 30 | |
Net operating loss carryforwards | 735 | 699 | |
Warranty and other liabilities | 85 | 77 | |
Operating lease liabilities | 98 | 78 | |
Capitalized R&D | 111 | 0 | |
Other | 222 | 184 | |
Total gross deferred tax assets | 1,333 | 1,144 | |
Less: valuation allowances | (756) | (766) | |
Total deferred tax assets | [1] | 577 | 378 |
Deferred tax liabilities: | |||
Fixed assets | 45 | 55 | |
Tax on unremitted profits of certain foreign subsidiaries | 69 | 65 | |
Intangibles | 588 | 174 | |
Operating lease right-of-use assets | 97 | 78 | |
Total gross deferred tax liabilities | 799 | 372 | |
Net deferred tax (liabilities) assets | $ 6 | ||
Net deferred tax (liabilities) assets | $ (222) | ||
[1]Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities. |
Income Taxes Deferred Tax Ass_2
Income Taxes Deferred Tax Assets, Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Asset, Balance Sheet Location [Line Items] | ||
Total deferred tax (liability) asset | $ 6 | |
Net deferred tax (liabilities) assets | $ (222) | |
Long-term assets | ||
Deferred Tax Asset, Balance Sheet Location [Line Items] | ||
Total deferred tax (liability) asset | 259 | 159 |
Long-term liabilities | ||
Deferred Tax Asset, Balance Sheet Location [Line Items] | ||
Net deferred tax (liabilities) assets | $ (481) | $ (153) |
Income Taxes NOL & Tax Credit C
Income Taxes NOL & Tax Credit Carryforwards and Undistributed Foreign Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 715 | |
Deferred Tax Assets, Valuation Allowance | 756 | $ 766 |
Deferred Tax Assets, Tax Credit Carryforwards | 68 | 87 |
Undistributed Earnings of Foreign Subsidiaries [Abstract] | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 69 | 65 |
Foreign Tax Authority | Valuation Allowance, Operating Loss Carryforwards | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | 596 | |
Foreign Tax Authority | Valuation Allowance, Tax Credit Carryforward | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 61 | $ 71 |
Foreign Tax Authority | Minimum | ||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | ||
Operating Loss Carryforwards, Expiration Dates, Period | 1 year |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 224 | $ 231 | $ 217 |
Additions related to current year | 12 | 12 | 35 |
Additions related to prior years | 29 | 20 | 31 |
Reductions related to prior years | (33) | (36) | (20) |
Reductions due to expirations of statute of limitations | (7) | (3) | (28) |
Settlements | (1) | 0 | (4) |
Balance at end of year | $ 224 | 224 | 231 |
Income Tax Uncertainties [Abstract] | |||
Uncertain Tax Positions More Likely Than Not Largest Amount of Benefit Percentage | 50% | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 214 | 207 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate, Write off of Related Deferred Tax Asset | 83 | 105 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 25 | 28 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense (Benefit) | (2) | $ 4 | $ 13 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 5 |
Shareholders' Equity And Net _3
Shareholders' Equity And Net Income Per Share Other (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jun. 12, 2020 USD ($) d $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | Jun. 15, 2023 shares | |
Shares Issued, Price Per Share | $ / shares | $ 75.91 | ||||
Common Stock, Shares, Issued | shares | 15,100,000 | 270,949,579 | 270,514,140 | ||
Preferred Stock, Dividend Rate, Percentage | 5.50% | ||||
Preferred shares, par value per share (USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred Stock, Liquidation Preference Per Share | $ / shares | 100 | ||||
Proceeds from the public offering of preferred shares, net of issuance costs | $ 0 | $ 0 | $ 1,115 | ||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ / shares | $ 5.50 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 12,370,000 | 12,370,000 | |||
Minimum | Scenario, Forecast | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 1.0754 | ||||
Maximum | Scenario, Forecast | |||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 1.3173 | ||||
Ordinary Shares | |||||
Proceeds from Issuance or Sale of Equity | $ 1,115 | ||||
Payments of Stock Issuance Costs | 35 | ||||
Preferred Shares | |||||
Payments of Stock Issuance Costs | 35 | ||||
Proceeds from the public offering of preferred shares, net of issuance costs | $ 1,115 | ||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | d | 20 |
Shareholders' Equity And Net _4
Shareholders' Equity And Net Income Per Share Weighted Average Shares Outstanding and Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||||
Net income attributable to ordinary shareholders | $ 233 | $ 15 | $ 531 | $ 527 | $ 1,769 |
Net income attributable to Aptiv | 594 | 590 | 1,804 | ||
MCPS dividends | $ (63) | $ (63) | $ (35) | ||
Denominator: | |||||
Weighted average ordinary shares outstanding, basic | 270,950 | 270,520 | 270,900 | 270,460 | 263,430 |
Dilutive shares related to RSUs | 280 | 760 | 440 | ||
Weighted average MCPS converted shares | 0 | 0 | 6,830 | ||
Weighted average ordinary shares outstanding, including dilutive shares | 271,400 | 271,470 | 271,180 | 271,220 | 270,700 |
Basic net income per share: | |||||
Basic net income per share attributable to ordinary shareholders | $ 0.86 | $ 0.06 | $ 1.96 | $ 1.95 | $ 6.72 |
Diluted net income per share: | |||||
Diluted | $ 0.86 | $ 0.06 | $ 1.96 | $ 1.94 | $ 6.66 |
Preferred Shares | |||||
Numerator: | |||||
MCPS dividends | $ 0 |
Shareholders' Equity And Net _5
Shareholders' Equity And Net Income Per Share Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2022 | |
Share Repurchase Program [Line Items] | ||
Total number of shares repurchased | 1,059,075 | |
Average price paid per share | $ 53.73 | |
Total (in millions) | $ 57 | |
Share Repurchase Program April 2016 | ||
Share Repurchase Program [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 1,500 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 13 | |
Share Repurchase Program January 2019 | ||
Share Repurchase Program [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 2,000 |
Shareholders' Equity And Net _6
Shareholders' Equity And Net Income Per Share Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dividends Payable [Line Items] | |||||||||||
Amount | $ 63 | $ 63 | $ 35 | ||||||||
Preferred Shares | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Dividend | $ 1.375 | $ 1.375 | $ 1.375 | $ 1.375 | $ 1.375 | $ 1.375 | $ 1.375 | $ 1.375 | $ 5.500 | $ 5.500 | |
Amount | $ 16 | $ 15 | $ 16 | $ 16 | $ 16 | $ 15 | $ 16 | $ 16 | $ 63 | $ 63 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning of period | $ (672) | $ (545) | ||
Aggregate adjustment for the year | (119) | (127) | $ 174 | |
Accumulated other comprehensive income (loss), end of period | (791) | (672) | (545) | |
Derivatives designated as cash flow hedges: | Derivatives designated as net investment hedges: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Gain (loss) on Net Investment Hedge, net of tax | 74 | 116 | 132 | |
Foreign currency translation adjustments: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning of period | (588) | (445) | (597) | |
Aggregate adjustment for the year | [1] | (202) | (143) | 152 |
Accumulated other comprehensive income (loss), end of period | (790) | (588) | (445) | |
Gains (losses) on derivatives: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning of period | (17) | 40 | 13 | |
Other comprehensive income before reclassifications (net of tax effect) | 37 | 8 | 6 | |
Reclassification to income (net of tax effect) | (13) | (65) | 21 | |
Accumulated other comprehensive income (loss), end of period | 7 | (17) | 40 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax | 10 | 0 | 0 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | 1 | 0 | 0 | |
Pension and postretirement plans: | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive income (loss), beginning of period | (67) | (140) | (135) | |
Other comprehensive income before reclassifications (net of tax effect) | 51 | 57 | (18) | |
Reclassification to income (net of tax effect) | 8 | 16 | 13 | |
Accumulated other comprehensive income (loss), end of period | (8) | (67) | (140) | |
Net tax effect of Reclassification Adjustment from AOCI, Pension and Other Postretirement Plans | (2) | (4) | (3) | |
Net tax effect of Other comprehensive income before reclassifications | $ (26) | $ (23) | $ 7 | |
[1]Includes gains of $74 million and $116 million and losses of $132 million for the years ended December 31, 2022, 2021 and 2020, respectively, related to non-derivative net investment hedges. Refer to Note 17. Derivatives and Hedging Activities for further description of these hedges. Includes $6 million of accumulated currency translation adjustment losses reclassified to net income as a result of the liquidation of a foreign subsidiary for the year ended December 31, 2022. |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) AOCI Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net income | $ 266 | $ 39 | $ 590 | $ 609 | $ 1,822 | |
Cost of sales | 3,827 | 3,543 | 14,854 | 13,182 | 11,126 | |
Income tax expense | (121) | (101) | (49) | |||
Net (loss) income attributable to noncontrolling interest | 3 | (19) | (18) | |||
Net income attributable to Aptiv | $ 249 | $ 31 | 594 | 590 | 1,804 | |
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net income attributable to Aptiv | (1) | 49 | (34) | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Foreign currency translation adjustments: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Liquidation of foreign subsidiary | (6) | 0 | 0 | |||
Net income | (6) | 0 | 0 | |||
Income before income taxes | (6) | 0 | 0 | |||
Income tax expense | 0 | 0 | 0 | |||
Net (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | |||
Net income attributable to Aptiv | (6) | 0 | 0 | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Gains (losses) on derivatives: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net income | 13 | 65 | (21) | |||
Income before income taxes | 14 | 65 | (21) | |||
Income tax expense | (1) | 0 | 0 | |||
Net (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | |||
Net income attributable to Aptiv | 13 | 65 | (21) | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Gains (losses) on derivatives: | Commodity derivatives | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Cost of sales | (5) | 68 | (7) | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Gains (losses) on derivatives: | Foreign currency derivatives | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Cost of sales | 19 | (3) | (14) | |||
Amount Reclassified from Accumulated Other Comprehensive Income | Pension and postretirement plans: | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Net income | (8) | (16) | (13) | |||
Actuarial loss | [1] | (10) | (15) | (16) | ||
Curtailment loss | [1] | 0 | (5) | 0 | ||
Income before income taxes | (10) | (20) | (16) | |||
Income tax expense | 2 | 4 | 3 | |||
Net (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | |||
Net income attributable to Aptiv | $ (8) | $ (16) | $ (13) | |||
[1]These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12. Pension Benefits for additional details). |
Derivatives And Hedging Activ_3
Derivatives And Hedging Activities Cash Flow Hedges (Details) lb in Thousands, € in Millions, ¥ in Millions, zł in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) lb | Dec. 31, 2022 MXN ($) lb | Dec. 31, 2022 CNY (¥) lb | Dec. 31, 2022 EUR (€) lb | Dec. 31, 2022 PLN (zł) lb | |
Derivative [Line Items] | |||||||
Net derivative gains (losses) from cash flow hedges included in accumulated other comprehensive income, before tax | $ (29) | ||||||
AOCI, Cash Flow Hedge, Cumulative Gain (Loss), after Tax | (40) | ||||||
Scenario, Forecast | |||||||
Derivative [Line Items] | |||||||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ (14) | $ (15) | |||||
Foreign currency derivatives | Euro | |||||||
Derivative [Line Items] | |||||||
Notional Amount (Approximate USD Equivalent) | $ 135 | € 128 | |||||
Derivatives designated as cash flow hedges: | Copper | |||||||
Derivative [Line Items] | |||||||
Quantity Hedged | lb | 96,785 | 96,785 | 96,785 | 96,785 | 96,785 | ||
Notional Amount (Approximate USD Equivalent) | $ 365 | ||||||
Derivatives designated as cash flow hedges: | Foreign currency derivatives | Mexican Peso | |||||||
Derivative [Line Items] | |||||||
Notional Amount (Approximate USD Equivalent) | 1,155 | $ 22,516 | |||||
Derivatives designated as cash flow hedges: | Foreign currency derivatives | Chinese Yuan Renminbi | |||||||
Derivative [Line Items] | |||||||
Notional Amount (Approximate USD Equivalent) | 465 | ¥ 3,223 | |||||
Derivatives designated as cash flow hedges: | Foreign currency derivatives | Polish Zloty | |||||||
Derivative [Line Items] | |||||||
Notional Amount (Approximate USD Equivalent) | 165 | zł 730 | |||||
Derivatives designated as cash flow hedges: | Foreign currency derivatives | Hungarian Forint | |||||||
Derivative [Line Items] | |||||||
Notional Amount (Approximate USD Equivalent) | $ 65 | zł 24,013 |
Derivatives And Hedging Activ_4
Derivatives And Hedging Activities Net Investment Hedges (Details) € in Millions, ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 CNY (¥) | Sep. 15, 2016 EUR (€) | Mar. 10, 2015 EUR (€) | |
Derivative [Line Items] | ||||||
Settlement of derivatives | $ (7) | $ 17 | $ 1 | |||
Derivatives designated as net investment hedges: | Derivatives designated as cash flow hedges: | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on Net Investment Hedge, net of tax | (74) | (116) | (132) | |||
Derivatives designated as net investment hedges: | Derivatives designated as cash flow hedges: | Euro-Denominated Senior Notes, 1.500% Due 2025 | Senior Notes | ||||||
Derivative [Line Items] | ||||||
Debt instrument designated as net investment hedge | € | € 700 | |||||
Derivatives designated as net investment hedges: | Derivatives designated as cash flow hedges: | Euro-denominated Senior Notes, 1.600% Due 2028 | Senior Notes | ||||||
Derivative [Line Items] | ||||||
Debt instrument designated as net investment hedge | € | € 500 | |||||
Derivatives designated as net investment hedges: | Derivatives designated as cash flow hedges: | Euro-Denominated Senior Notes, 1.500% Due 2025 and Euro-Denominated Senior Notes, 1.600% Due 2028 | Senior Notes | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on Net Investment Hedge, net of tax | 74 | 116 | ||||
Net investment hedge gains (losses) included in accumulated other comprehensive income | 37 | (37) | ||||
Foreign Exchange Forward | United States of America, Dollars | Derivatives designated as net investment hedges: | Derivatives designated as cash flow hedges: | ||||||
Derivative [Line Items] | ||||||
Settlement of derivatives | 7 | $ 17 | $ 1 | |||
Notional Amount (Approximate USD Equivalent) | $ 100 | |||||
Foreign Exchange Forward | Chinese Yuan Renminbi | Derivatives designated as net investment hedges: | Derivatives designated as cash flow hedges: | ||||||
Derivative [Line Items] | ||||||
Notional Amount (Approximate USD Equivalent) | ¥ | ¥ 700 |
Derivatives And Hedging Activ_5
Derivatives And Hedging Activities Fair Value of Derivative Instruments in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | |||
Derivatives designated as cash flow hedges: | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | $ 72 | $ 52 | |||
Liability Derivatives | 51 | 35 | |||
Derivatives designated as cash flow hedges: | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 0 | 0 | |||
Derivatives designated as cash flow hedges: | Accrued liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Liability Derivatives | 1 | 1 | |||
Derivatives not designated: | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 1 | 5 | |||
Liability Derivatives | $ 0 | 1 | |||
Derivatives not designated: | Commodity derivatives | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 5 | ||||
Derivatives not designated: | Commodity derivatives | Accrued liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Liability Derivatives | 0 | ||||
Derivatives not designated: | Foreign currency derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | ||||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | $ 1 | ||||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | $ 1 | ||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Accrued Liabilities, Current | |||
Derivatives not designated: | Foreign currency derivatives | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | $ 1 | ||||
Liability Derivatives | 0 | ||||
Derivatives not designated: | Foreign currency derivatives | Accrued liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | $ 0 | ||||
Liability Derivatives | 1 | ||||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Commodity derivatives | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 0 | 27 | |||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Commodity derivatives | Accrued liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Liability Derivatives | 28 | 0 | |||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Commodity derivatives | Long-term assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 0 | 2 | |||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Commodity derivatives | Long-term liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Liability Derivatives | 7 | 0 | |||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Foreign currency derivatives | |||||
Derivatives, Fair Value [Line Items] | |||||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | 0 | ||||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Foreign currency derivatives | Other current assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 54 | [1] | 15 | ||
Liability Derivatives | 11 | [1] | 9 | ||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | [1] | 43 | 6 | ||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Foreign currency derivatives | Accrued liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | [1] | 5 | |||
Liability Derivatives | [1] | 16 | |||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | [1] | (11) | |||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Foreign currency derivatives | Long-term assets | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 17 | [1] | 2 | ||
Liability Derivatives | 3 | [1] | 1 | ||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | [1] | 14 | 1 | ||
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Foreign currency derivatives | Long-term liabilities | |||||
Derivatives, Fair Value [Line Items] | |||||
Asset Derivatives | 1 | 1 | [1] | ||
Liability Derivatives | $ 1 | 8 | [1] | ||
Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet | [1] | $ (7) | |||
[1]Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts. |
Derivatives And Hedging Activ_6
Derivatives And Hedging Activities Effect of Derivative Instruments in Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives designated as cash flow hedges: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | $ 14 | $ 65 | $ 21 |
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | 27 | 8 | 6 |
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Commodity derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | (70) | 60 | (31) |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | (5) | 68 | 7 |
Derivatives designated as cash flow hedges: | Derivatives designated as cash flow hedges: | Foreign currency derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax | 90 | 35 | 23 |
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | (19) | 3 | 14 |
Derivatives designated as cash flow hedges: | Derivatives designated as net investment hedges: | Foreign currency derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net Investment Hedge, Gain (Loss), before Reclassification and Tax | (7) | (17) | (2) |
Derivatives not designated: | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain on Derivative | 8 | (2) | 0 |
Derivatives not designated: | Commodity derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain on Derivative | (3) | ||
Derivatives not designated: | Foreign currency derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Gain on Derivative | $ 8 | $ (5) | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Fair Value, Net | $ 22 | $ 21 | ||
Contingent consideration | $ 10 | |||
Escrow Deposit | 52 | |||
Payment for Contingent Consideration Liability, Financing Activities | 0 | (24) | $ 0 | |
Payment for Contingent Consideration Liability, Operating Activities | 28 | |||
Total debt, recorded amount | 6,491 | 4,067 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | 10 | 10 | ||
Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of Long-Lived Assets Held-for-use | 8 | 2 | 10 | |
Cost of Sales | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Tangible Asset Impairment Charges | 3 | |||
Pre-tax charge to impair carrying value of Russian subsidiary's net assets to fair value | 51 | |||
Significant Other Observable Inputs Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total debt, fair value | 5,241 | 4,297 | ||
Significant Other Observable Inputs Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | 0 | 0 | ||
Contingent Consideration liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Additions | 0 | 10 | ||
Payments | 0 | (52) | ||
Contingent Consideration liability | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | 10 | $ 52 | ||
Contingent Consideration liability | Other Current Liabilities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | $ 10 | |||
Contingent Consideration liability | Long-term liabilities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | $ 10 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of year | $ 10 | |
Fair value at end of year | 10 | $ 10 |
Contingent Consideration liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Additions | 0 | 10 |
Payments | 0 | (52) |
Contingent Consideration liability | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of year | 10 | 52 |
Fair value at end of year | 10 | |
Contingent Consideration liability | Fair Value, Measurements, Recurring | Other Current Liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at end of year | 10 | |
Contingent Consideration liability | Fair Value, Measurements, Recurring | Long-term liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of year | $ 10 | |
Fair value at end of year | $ 10 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Contingent consideration | $ 10 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Publicly traded equity securities | $ 17 | $ 66 | |
Total | 75 | 107 | |
Contingent consideration | 10 | 10 | |
Total | 46 | 30 | |
Fair Value, Measurements, Recurring | Commodity derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 34 | ||
Foreign currency derivatives | 35 | ||
Fair Value, Measurements, Recurring | Foreign currency derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 58 | 7 | |
Foreign currency derivatives | 1 | 20 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Publicly traded equity securities | 17 | 66 | |
Total | 17 | 66 | |
Contingent consideration | 0 | 0 | |
Total | 0 | 0 | |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | Commodity derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 0 | ||
Foreign currency derivatives | 0 | ||
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets Level 1 | Foreign currency derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 0 | 0 | |
Foreign currency derivatives | 0 | 0 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Publicly traded equity securities | 0 | 0 | |
Total | 58 | 41 | |
Contingent consideration | 0 | 0 | |
Total | 36 | 20 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | Commodity derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 34 | ||
Foreign currency derivatives | 35 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs Level 2 | Foreign currency derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 58 | 7 | |
Foreign currency derivatives | 1 | 20 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Publicly traded equity securities | 0 | 0 | |
Total | 0 | 0 | |
Contingent consideration | 10 | 10 | |
Total | 10 | 10 | |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Commodity derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 0 | ||
Foreign currency derivatives | 0 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Foreign currency derivatives | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency derivatives | 0 | 0 | |
Foreign currency derivatives | $ 0 | $ 0 |
Other Income, Net Table (Detail
Other Income, Net Table (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | |||||
Interest income | $ 86 | $ 9 | $ 8 | ||
Loss on extinguishment of debt | $ 126 | 0 | 126 | 0 | |
Loss on modification of debt | 0 | (1) | (4) | ||
Components of net periodic benefit cost other than service cost | 15 | 21 | 20 | ||
Costs associated with acquisitions and other transactions | $ (53) | (61) | 0 | 0 | |
Change in fair value of equity investments without readily determinable fair value | 0 | 9 | 10 | ||
Loss on change in fair value of publicly traded equity securities | (52) | 0 | 0 | ||
Other, net | (12) | 1 | 6 | ||
Other expense, net | $ (54) | $ (129) | $ 0 |
Other Income, Net Narrative (De
Other Income, Net Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 19, 2015 | Mar. 03, 2014 | |
Equity Securities, FV-NI, Unrealized Gain (Loss) | $ (49) | $ 5 | |||||
Costs associated with acquisitions and other transactions | $ (53) | (61) | 0 | $ 0 | |||
Loss on extinguishment of debt | $ (126) | 0 | (126) | 0 | |||
Change in fair value of equity investments without readily determinable fair value | 0 | 9 | 10 | ||||
Loss on modification of debt | 0 | $ (1) | $ (4) | ||||
Wind River | |||||||
Costs associated with acquisitions and other transactions | (43) | ||||||
Intercable Automotive | |||||||
Costs associated with acquisitions and other transactions | $ (10) | ||||||
Senior Notes | Senior Notes, 4.150% Due 2024 | |||||||
Debt Instrument, Face Amount | $ 700 | ||||||
Senior Notes | Senior Notes, 4.25% Due 2026 | |||||||
Debt Instrument, Face Amount | $ 650 |
Acquisitions And Divestitures W
Acquisitions And Divestitures Wind River (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 23, 2022 | Jan. 10, 2022 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Costs associated with acquisitions | $ 53 | $ 61 | $ 0 | $ 0 | ||
Goodwill | $ 5,106 | 5,106 | $ 2,511 | $ 2,580 | ||
Wind River | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||||
Total consideration, net of cash acquired | $ 3,519 | |||||
Initial purchase price | $ 4,300 | |||||
Costs associated with acquisitions | 43 | |||||
Accounts receivable, net | 91 | |||||
Contract assets | 67 | |||||
Property, plant and equipment | 14 | |||||
Intangible assets | 1,490 | |||||
Contract liabilities | (101) | |||||
Accrued liabilities | (62) | |||||
Deferred tax liabilities | (287) | |||||
Other assets, net | 5 | |||||
Identifiable net assets acquired | 1,217 | |||||
Goodwill | 2,302 | |||||
Total purchase price allocation | 3,519 | |||||
Liabilities Assumed | $ 35 | |||||
Wind River | Cash and cash equivalents | ||||||
Total consideration, net of cash acquired | 3,500 | |||||
Wind River | Technology-Based Intangible Assets | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 750 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years | |||||
Wind River | Customer relationships | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 630 | |||||
Wind River | Customer relationships | Minimum | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years | |||||
Wind River | Customer relationships | Maximum | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 22 years | |||||
Wind River | Trade names | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 110 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years |
Acquisitions And Divestitures I
Acquisitions And Divestitures Intercable Automotive (Details) - USD ($) $ in Millions | Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 5,106 | $ 2,511 | $ 2,580 | |
Redeemable Noncontrolling Interest, Maximum Future Redemption Amount | $ 155 | |||
Intercable Automotive | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 85% | |||
Total consideration, net of cash acquired | $ 606 | |||
Inventory | 77 | |||
Property, plant and equipment | 77 | |||
Intangible assets | 285 | |||
Deferred tax liabilities | (82) | |||
Other assets, net | (13) | |||
Identifiable net assets acquired | 344 | |||
Goodwill | 357 | |||
Total purchase price allocation | 701 | |||
Less: redeemable noncontrolling interest | (95) | |||
Total purchase price allocation | 606 | |||
Intercable Automotive | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 201 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 19 years | |||
Intercable Automotive | Trade names | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 21 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Intercable Automotive | Technology-Based Intangible Assets | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 63 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||
Intercable Automotive | Mutschlechner family | ||||
Business Acquisition [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 15% |
Acquisitions And Divestitures A
Acquisitions And Divestitures Acquisition of El-Com (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 10 | |||
Purchase price, cash consideration, net of cash acquired | $ 4,310 | $ 130 | $ 49 | |
Goodwill | $ 5,106 | $ 2,511 | $ 2,580 | |
El-Com | ||||
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||
Total consideration, net of cash acquired | $ 88 | |||
Contingent Consideration Arrangement, Range of Outcomes, Value, High | 10 | |||
Contingent Consideration Arrangement, Range of Outcomes, Value, Low | 0 | |||
Business Combination, Contingent Consideration, Liability | 10 | |||
Purchase price, cash consideration, net of cash acquired | 78 | |||
Intangible assets | 35 | |||
Other assets, net | 10 | |||
Identifiable net assets acquired | 45 | |||
Goodwill | 43 | |||
Total purchase price allocation | $ 88 | |||
Customer relationships | El-Com | ||||
Business Acquisition [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Acquisitions And Divestitures K
Acquisitions And Divestitures Krono-Safe (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Nov. 09, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity investments | $ 67 | $ 30 | |||
Purchase price, cash consideration, net of cash acquired | 4,310 | 130 | $ 49 | ||
Goodwill | 5,106 | 2,511 | 2,580 | ||
Advanced Safety and User Experience | |||||
Goodwill | $ 2,350 | $ 36 | $ 27 | ||
Krono-Safe | |||||
Equity investments | $ 6 | ||||
Krono-Safe | |||||
Business Combination and Asset Acquisition [Abstract] | |||||
Total consideration, net of cash acquired | $ 13 | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||
Total consideration, net of cash acquired | $ 13 | ||||
Purchase price, cash consideration, net of cash acquired | 7 | ||||
Intangible assets | 4 | ||||
Goodwill | $ 9 |
Acquisitions And Divestitures U
Acquisitions And Divestitures Ulti-Mate (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill | $ 5,106 | $ 2,511 | $ 2,580 | |
Ulti-Mate | ||||
Total consideration, net of cash acquired | $ 45 | |||
Intangible assets | 17 | |||
Other assets, net | 5 | |||
Identifiable net assets acquired | 22 | |||
Goodwill | 23 | |||
Total purchase price allocation | $ 45 | |||
Customer relationships | Ulti-Mate | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Acquisitions And Divestitures_2
Acquisitions And Divestitures Acquisition of Dynawave (Details) - USD ($) $ in Millions | Aug. 04, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill | $ 5,106 | $ 2,511 | $ 2,580 | |
Dynawave | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||
Total consideration, net of cash acquired | $ 22 | |||
Intangible assets | 8 | |||
Other assets, net | 4 | |||
Identifiable net assets acquired | 12 | |||
Goodwill | 10 | |||
Total purchase price allocation | $ 22 | |||
Dynawave | Customer relationships | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Acquisitions And Divestitures M
Acquisitions And Divestitures Motional JV (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Mar. 26, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) $ / shares | Dec. 31, 2019 USD ($) | |
Business Acquisition [Line Items] | |||||
Cash, cash equivalents and restricted cash | $ 1,531 | $ 3,139 | $ 2,853 | ||
Costs and Expenses | 16,226 | 14,429 | 10,948 | ||
Gain on business divestitures and other transactions | 0 | 0 | 1,434 | ||
Equity loss, net of tax | (279) | (200) | (83) | ||
Investments in affiliates | $ 1,723 | 1,797 | |||
Motional autonomous driving joint venture | |||||
Business Acquisition [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50% | ||||
Operating Segments | Advanced Safety and User Experience | |||||
Business Acquisition [Line Items] | |||||
Gain on business divestitures and other transactions | (1,434) | ||||
Equity loss, net of tax | $ (299) | (215) | (98) | ||
Investments in affiliates | 1,597 | 1,687 | |||
Operating Segments | Advanced Safety and User Experience | Motional autonomous driving joint venture | |||||
Business Acquisition [Line Items] | |||||
Equity loss, net of tax | $ (291) | $ (215) | $ (98) | ||
Motional autonomous driving joint venture | |||||
Business Acquisition [Line Items] | |||||
Number of Employees Contributed to Joint Venture | 700 | ||||
Costs and Expenses | $ 180 | ||||
Disposal Group Not Discontinued Operation Gain Loss on Disposal Net of Tax per Share | $ / shares | $ 5.32 | ||||
Business Exit Costs | $ 22 | ||||
Investments in affiliates | $ 2,000 | ||||
Motional autonomous driving joint venture | Motional autonomous driving joint venture | |||||
Business Acquisition [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50% | ||||
Motional autonomous driving joint venture | Advanced Safety and User Experience | |||||
Business Acquisition [Line Items] | |||||
Gain on business divestitures and other transactions | $ 1,400 | ||||
Motional autonomous driving joint venture | Hyundai | |||||
Business Acquisition [Line Items] | |||||
Cash, cash equivalents and restricted cash | $ 1,600 | ||||
Motional autonomous driving joint venture | Hyundai | Motional autonomous driving joint venture | |||||
Business Acquisition [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 50% | ||||
Motional autonomous driving joint venture | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Business Acquisition [Line Items] | |||||
Income (Loss) from Individually Significant Component Disposed of or Held-for-sale, Excluding Discontinued Operations, before Income Tax | $ (41) |
Acquisitions And Divestitures P
Acquisitions And Divestitures Planned Exit from Majority Owned Russian Subsidiary (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Net income attributable to noncontrolling interest | $ (3) | $ 19 | $ 18 |
Fair Value, Measurements, Nonrecurring | Cost of Sales | |||
Business Acquisition [Line Items] | |||
Pre-tax charge to impair carrying value of Russian subsidiary's net assets to fair value | 51 | ||
Noncontrolling Shareholder in Russian Subsidiary | |||
Business Acquisition [Line Items] | |||
Net income attributable to noncontrolling interest | $ 25 |
Share-Based Compensation Long T
Share-Based Compensation Long Term Incentive Plan (Details) - PLC Long Term Incentive Plan - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||
Apr. 27, 2022 | Apr. 26, 2022 | Apr. 30, 2021 | Apr. 29, 2021 | Apr. 23, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 23, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum Shares Available for Grant under PLC LTIP | 25,665,448 | |||||||||||||
Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Performance-Based Awards Payout % Range | 0% | |||||||||||||
Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Performance-Based Awards Payout % Range | 200% | 150% | ||||||||||||
Restricted Stock Units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSUs granted | 939,000 | 661,000 | 934,000 | |||||||||||
Grant Date Fair Value | $ 80 | $ 72 | $ 62 | $ 62 | $ 61 | |||||||||
Time-Based Awards % Granted For Officers | 40% | 25% | ||||||||||||
Time-Based Awards % Granted For Executives | 50% | |||||||||||||
Performance-Based Awards % Granted For Officers | 60% | 75% | ||||||||||||
Performance-Based Awards % Granted For Executives | 50% | |||||||||||||
Restricted Stock Units (RSUs) | Board of Directors | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSUs granted | 23,387 | 17,589 | 48,745 | |||||||||||
Grant Date Fair Value | $ 2 | $ 3 | $ 3 | |||||||||||
Shares Issued Upon Vesting | 15,633 | 41,896 | ||||||||||||
Fair Value of Shares at Issuance | $ 2 | $ 6 | ||||||||||||
Shares Withheld to Cover Withholding Taxes | (1,956) | (6,849) |
Share-Based Compensation Weight
Share-Based Compensation Weighting for Components of Performance Based RSU Awards (Details) - PLC Long Term Incentive Plan | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance-Based Awards Payout % Range | 200% | 150% | |
2020 Grant | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average return on net assets | [1] | 33% | |
Cumulative net income | 33% | ||
Relative total shareholder return | [2] | 33% | |
2016 - 2019 Grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Average return on net assets | [1] | 50% | |
Cumulative net income | 25% | ||
Relative total shareholder return | [2] | 25% | |
[1]Average return on net assets is measured by tax-affected operating income divided by average net working capital plus average net property, plant and equipment for each calendar year during the respective performance period.[2]Relative total shareholder return is measured by comparing the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the end of the performance period to the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the year preceding the grant, including dividends, and assessed against a comparable measure of competitor and peer group companies. |
Share-Based Compensation Summar
Share-Based Compensation Summary of Activity for LTIP RSU's (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2022 USD ($) shares | Feb. 28, 2021 USD ($) shares | Feb. 29, 2020 USD ($) shares | Feb. 28, 2019 USD ($) shares | Feb. 28, 2018 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) numberOfEmployees $ / shares shares | Dec. 31, 2019 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Payment Arrangement, Plan Modification, Number of Grantees Affected | numberOfEmployees | 300 | ||||||||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ | $ 22 | ||||||||
Taxes withheld and paid on employees’ restricted share awards | $ | $ (36) | $ (45) | $ (33) | ||||||
PLC Long Term Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Nonvested, Weighted Average Grant Date Fair Value per share | $ / shares | $ 136.61 | $ 131.40 | $ 102.95 | $ 89.32 | |||||
LTIP Grants in Period, Weighted Average Grant Date Fair Value per share | $ / shares | 122.73 | 161.90 | 99.14 | ||||||
LTIP Vested in Period, Weighted Average Grant Date Fair Value per share | $ / shares | 109.36 | 98.55 | 98.90 | ||||||
LTIP Shares, Forfeitures, Weighted Average Grant Date Fair Value per share | $ / shares | $ 134.75 | $ 118.97 | $ 82.93 | ||||||
Share-based Compensation Expense | $ | $ 86 | $ 87 | $ 60 | ||||||
Share-based Compensation Expense, Net of Tax | $ | 85 | 86 | 60 | ||||||
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 105 | ||||||||
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||||||
Taxes withheld and paid on employees’ restricted share awards | $ | $ (36) | $ (45) | $ (33) | ||||||
PLC Long Term Incentive Plan | Performance-Based | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Shares, Vested but not yet Distributed, Weighted Average Grant Date Fair Value per share | $ / shares | $ 121.04 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant Date Fair Value | $ | $ 80 | $ 72 | $ 62 | $ 62 | $ 61 | ||||
LTIP Shares, Nonvested, Number | 1,247,000 | 1,344,000 | 1,786,000 | 1,822,000 | |||||
RSUs granted | 939,000 | 661,000 | 934,000 | ||||||
LTIP RSU's, Vested in Period | (713,000) | (829,000) | (773,000) | ||||||
LTIP Shares, Forfeited in Period | (323,000) | (274,000) | (197,000) | ||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2018 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSUs granted | 630,000 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2019 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSUs granted | 710,000 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2020 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSUs granted | 750,000 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2021 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSUs granted | 440,000 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2022 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
RSUs granted | 590,000 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Time-Based | Executives | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Issued Upon Vesting | 354,600 | 449,426 | 468,240 | ||||||
Fair Value of Shares at Issuance | $ | $ 46 | $ 67 | $ 37 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Withheld for Taxes in Period | (140,409) | (177,825) | (181,495) | ||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Performance-Based | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
LTIP Shares, Vested but not yet Distributed, Number | 318,000 | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Performance-Based | Executives | 2017 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Issued Upon Vesting | 580,390 | ||||||||
Fair Value of Shares at Issuance | $ | $ 45 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Withheld for Taxes in Period | (243,080) | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Performance-Based | Executives | 2018 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Issued Upon Vesting | 288,074 | ||||||||
Fair Value of Shares at Issuance | $ | $ 43 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Withheld for Taxes in Period | (121,609) | ||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Performance-Based | Executives | 2019 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares Issued Upon Vesting | 325,283 | ||||||||
Fair Value of Shares at Issuance | $ | $ 42 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Withheld for Taxes in Period | (136,143) |
Segment Reporting Reconciliatio
Segment Reporting Reconciliation of Sales and Operating Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 4,640 | $ 4,134 | $ 17,489 | $ 15,618 | $ 13,066 | |||
Depreciation and amortization | 762 | 773 | 764 | |||||
Adjusted operating income | 1,585 | 1,378 | 1,011 | |||||
Operating income | $ 440 | $ 260 | 1,263 | 1,189 | 2,118 | |||
Equity loss, net of tax | (279) | (200) | (83) | |||||
Net income attributable to noncontrolling interest | (3) | 19 | 18 | |||||
Net loss attributable to redeemable noncontrolling interest | (1) | 0 | 0 | |||||
Capital expenditures | 844 | 611 | 584 | |||||
Restructuring | 85 | 24 | 136 | |||||
Gain on business divestitures and other transactions | 0 | 0 | 1,434 | |||||
Signal and Power Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring | 30 | 8 | 90 | |||||
Advanced Safety and User Experience | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring | 55 | 16 | 46 | |||||
Advanced Safety and User Experience | Motional autonomous driving joint venture | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Gain on business divestitures and other transactions | 1,400 | |||||||
Operating Segments | Signal and Power Solutions | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 12,943 | 11,598 | 9,522 | |||||
Depreciation and amortization | 584 | 595 | 588 | |||||
Adjusted operating income | 1,441 | 1,225 | 900 | |||||
Operating income | 1,195 | 1,064 | 656 | |||||
Equity loss, net of tax | 20 | 15 | 15 | |||||
Net income attributable to noncontrolling interest | (3) | 19 | 18 | |||||
Net loss attributable to redeemable noncontrolling interest | (1) | |||||||
Capital expenditures | 573 | 434 | 355 | |||||
Restructuring | 30 | 8 | 90 | |||||
Gain on business divestitures and other transactions | 0 | |||||||
Operating Segments | Advanced Safety and User Experience | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 4,587 | 4,056 | 3,573 | |||||
Depreciation and amortization | 178 | 178 | 176 | |||||
Adjusted operating income | 144 | 153 | 111 | |||||
Operating income | 68 | 125 | 1,462 | |||||
Equity loss, net of tax | (299) | (215) | (98) | |||||
Net income attributable to noncontrolling interest | 0 | 0 | 0 | |||||
Net loss attributable to redeemable noncontrolling interest | 0 | |||||||
Capital expenditures | 196 | 124 | 173 | |||||
Restructuring | 55 | 16 | 46 | |||||
Gain on business divestitures and other transactions | (1,434) | |||||||
Eliminations and Other | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | [1] | (41) | (36) | (29) | ||||
Depreciation and amortization | [1] | 0 | 0 | 0 | ||||
Adjusted operating income | [1] | 0 | 0 | 0 | ||||
Operating income | [1] | 0 | 0 | 0 | ||||
Equity loss, net of tax | [1] | 0 | 0 | 0 | ||||
Net income attributable to noncontrolling interest | [1] | 0 | 0 | 0 | ||||
Net loss attributable to redeemable noncontrolling interest | 0 | |||||||
Capital expenditures | $ 75 | [1] | $ 53 | [1] | $ 56 | |||
[1]Eliminations and Other includes the elimination of inter-segment transactions. Capital expenditures amounts are attributable to corporate administrative and support functions, including corporate headquarters and certain technical centers. (2) Includes charges recorded in 2022 related to costs associated with employee termination benefits and other exit costs of $30 million for Signal and Power Solutions and $55 million for Advanced Safety and User Experience. |
Segment Reporting Balance Sheet
Segment Reporting Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||||
Investment in affiliates | $ 1,723 | $ 1,797 | ||
Goodwill | 5,106 | 2,511 | $ 2,580 | |
Total segment assets | 21,884 | 18,007 | ||
Signal and Power Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 2,756 | 2,475 | 2,553 | |
Advanced Safety and User Experience | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill | 2,350 | 36 | $ 27 | |
Operating Segments | Signal and Power Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Investment in affiliates | 126 | 110 | ||
Goodwill | 2,756 | 2,475 | ||
Total segment assets | 14,575 | 13,385 | ||
Operating Segments | Advanced Safety and User Experience | ||||
Segment Reporting Information [Line Items] | ||||
Investment in affiliates | 1,597 | 1,687 | ||
Goodwill | 2,350 | 36 | ||
Total segment assets | 11,864 | 7,244 | ||
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Investment in affiliates | [1] | 0 | 0 | |
Goodwill | 0 | 0 | ||
Total segment assets | [1] | $ (4,555) | $ (2,622) | |
[1]Eliminations and Other includes the elimination of inter-segment transactions. (2) Signal and Power Solutions includes amounts recognized as part of the preliminary purchase price allocation following the acquisition of Intercable Automotive in November 2022. Advanced Safety and User Experience includes amounts recognized as part of the preliminary purchase price allocation following the acquisition of Wind River in December 2022. Refer to Note 20. Acquisitions and Divestitures for additional information on these acquisitions. |
Segment Reporting Reconciliat_2
Segment Reporting Reconciliation of Adjusted OI to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted operating income | $ 1,585 | $ 1,378 | $ 1,011 | ||
Amortization | (149) | (148) | (144) | ||
Restructuring | (85) | (24) | (136) | ||
Other acquisition and portfolio project costs | (26) | (15) | (23) | ||
Asset impairments | (8) | (2) | (10) | ||
Deferred compensation related to acquisitions | 14 | ||||
Gain on business divestitures and other transactions | 0 | 0 | 1,434 | ||
Other charges related to Ukraine/Russia conflict | 54 | 0 | 0 | ||
Operating income | $ 440 | $ 260 | 1,263 | 1,189 | 2,118 |
Interest expense | (219) | (150) | (164) | ||
Other expense, net | (54) | (129) | 0 | ||
Income before income taxes and equity loss | 990 | 910 | 1,954 | ||
Income tax expense | (121) | (101) | (49) | ||
Equity loss, net of tax | (279) | (200) | (83) | ||
Net loss | 266 | 39 | 590 | 609 | 1,822 |
Net (loss) income attributable to noncontrolling interest | (3) | 19 | 18 | ||
Net income attributable to Aptiv | $ 249 | $ 31 | 594 | 590 | 1,804 |
Net loss attributable to redeemable noncontrolling interest | (1) | 0 | 0 | ||
Comprehensive income attributable to Aptiv | 1 | 0 | 0 | ||
Signal and Power Solutions | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Restructuring | (30) | (8) | (90) | ||
Signal and Power Solutions | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted operating income | 1,441 | 1,225 | 900 | ||
Amortization | (139) | (141) | (138) | ||
Restructuring | (30) | (8) | (90) | ||
Other acquisition and portfolio project costs | (15) | (11) | (12) | ||
Asset impairments | (8) | (1) | (4) | ||
Deferred compensation related to acquisitions | 0 | ||||
Gain on business divestitures and other transactions | 0 | ||||
Other charges related to Ukraine/Russia conflict | (54) | ||||
Operating income | 1,195 | 1,064 | 656 | ||
Equity loss, net of tax | 20 | 15 | 15 | ||
Net loss attributable to redeemable noncontrolling interest | (1) | ||||
Advanced Safety and User Experience | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Restructuring | (55) | (16) | (46) | ||
Advanced Safety and User Experience | Operating Segments | |||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||
Adjusted operating income | 144 | 153 | 111 | ||
Amortization | (10) | (7) | (6) | ||
Restructuring | (55) | (16) | (46) | ||
Other acquisition and portfolio project costs | (11) | (4) | (11) | ||
Asset impairments | 0 | (1) | (6) | ||
Deferred compensation related to acquisitions | 14 | ||||
Gain on business divestitures and other transactions | (1,434) | ||||
Other charges related to Ukraine/Russia conflict | 0 | ||||
Operating income | 68 | 125 | 1,462 | ||
Equity loss, net of tax | (299) | $ (215) | $ (98) | ||
Net loss attributable to redeemable noncontrolling interest | $ 0 |
Segment Reporting Geographical
Segment Reporting Geographical Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 4,640 | $ 4,134 | $ 17,489 | $ 15,618 | $ 13,066 | |
Long-Lived Assets | [1] | 3,946 | 3,677 | 3,946 | 3,677 | 3,681 |
U.S. Plans | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | [2] | 6,292 | 5,196 | 4,382 | ||
Long-Lived Assets | [1],[2] | 1,136 | 1,010 | 1,136 | 1,010 | 985 |
Other North America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 159 | 136 | 112 | |||
Long-Lived Assets | [1] | 291 | 248 | 291 | 248 | 253 |
Europe, Middle East and Africa | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | [3] | 5,372 | 5,179 | 4,483 | ||
Long-Lived Assets | [1],[3] | 1,429 | 1,390 | 1,429 | 1,390 | 1,440 |
Asia Pacific | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | [4] | 5,274 | 4,829 | 3,898 | ||
Long-Lived Assets | [1],[4] | 1,031 | 978 | 1,031 | 978 | 953 |
South America | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 392 | 278 | 191 | |||
Long-Lived Assets | [1] | $ 59 | $ 51 | 59 | 51 | 50 |
JERSEY | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | |||
Germany | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,485 | $ 1,436 | $ 1,248 | |||
[1]Includes property, plant and equipment, net of accumulated depreciation and operating lease right-of-use assets.[2]Includes net sales and machinery, equipment and tooling that relate to the Company’s maquiladora operations located in Mexico. These assets are utilized to produce products sold to customers located in the U.S.[3]Includes Aptiv’s country of domicile, Jersey. The Company had no sales or long-lived assets in Jersey in any period. The largest portion of net sales in the Europe, Middle East & Africa region was $1,485 million, $1,436 million and $1,248 million in Germany for the years ended December 31, 2022, 2021 and 2020, respectively.[4]Net sales and long-lived assets in Asia Pacific are primarily attributable to China. |
Fourth Quarter Data (Unaudite_2
Fourth Quarter Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |||||
Revenues | $ 4,640 | $ 4,134 | $ 17,489 | $ 15,618 | $ 13,066 |
Cost of sales | 3,827 | 3,543 | 14,854 | 13,182 | 11,126 |
Gross loss | 813 | 591 | |||
Operating income | 440 | 260 | 1,263 | 1,189 | 2,118 |
Net loss | 266 | 39 | 590 | 609 | 1,822 |
Net income attributable to Aptiv | 249 | 31 | 594 | 590 | 1,804 |
Net income attributable to ordinary shareholders | $ 233 | $ 15 | $ 531 | $ 527 | $ 1,769 |
Basic net income per share attributable to ordinary shareholders | $ 0.86 | $ 0.06 | $ 1.96 | $ 1.95 | $ 6.72 |
Weighted average ordinary shares outstanding, basic | 270,950 | 270,520 | 270,900 | 270,460 | 263,430 |
Diluted | $ 0.86 | $ 0.06 | $ 1.96 | $ 1.94 | $ 6.66 |
Weighted average number of diluted shares outstanding | 271,400 | 271,470 | 271,180 | 271,220 | 270,700 |
Costs associated with acquisitions | $ 53 | $ 61 | $ 0 | $ 0 | |
Loss on extinguishment of debt | $ (126) | $ 0 | $ (126) | $ 0 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Net sales | $ 4,640 | $ 4,134 | $ 17,489 | $ 15,618 | $ 13,066 | |
North America | ||||||
Net sales | 6,451 | 5,332 | 4,494 | |||
Europe, Middle East and Africa | ||||||
Net sales | [1] | 5,372 | 5,179 | 4,483 | ||
Asia Pacific | ||||||
Net sales | [2] | 5,274 | 4,829 | 3,898 | ||
South America | ||||||
Net sales | 392 | 278 | 191 | |||
Eliminations and Other | ||||||
Net sales | [3] | (41) | (36) | (29) | ||
Eliminations and Other | North America | ||||||
Net sales | (10) | (7) | (3) | |||
Eliminations and Other | Europe, Middle East and Africa | ||||||
Net sales | (11) | (10) | (11) | |||
Eliminations and Other | Asia Pacific | ||||||
Net sales | (20) | (19) | (15) | |||
Eliminations and Other | South America | ||||||
Net sales | 0 | 0 | 0 | |||
Signal and Power Solutions | Operating Segments | ||||||
Net sales | 12,943 | 11,598 | 9,522 | |||
Signal and Power Solutions | Operating Segments | North America | ||||||
Net sales | 5,026 | 4,135 | 3,527 | |||
Signal and Power Solutions | Operating Segments | Europe, Middle East and Africa | ||||||
Net sales | 3,289 | 3,387 | 2,869 | |||
Signal and Power Solutions | Operating Segments | Asia Pacific | ||||||
Net sales | 4,236 | 3,798 | 2,935 | |||
Signal and Power Solutions | Operating Segments | South America | ||||||
Net sales | 392 | 278 | 191 | |||
Advanced Safety and User Experience | Operating Segments | ||||||
Net sales | 4,587 | 4,056 | 3,573 | |||
Advanced Safety and User Experience | Operating Segments | North America | ||||||
Net sales | 1,435 | 1,204 | 970 | |||
Advanced Safety and User Experience | Operating Segments | Europe, Middle East and Africa | ||||||
Net sales | 2,094 | 1,802 | 1,625 | |||
Advanced Safety and User Experience | Operating Segments | Asia Pacific | ||||||
Net sales | 1,058 | 1,050 | 978 | |||
Advanced Safety and User Experience | Operating Segments | South America | ||||||
Net sales | $ 0 | $ 0 | $ 0 | |||
[1]Includes Aptiv’s country of domicile, Jersey. The Company had no sales or long-lived assets in Jersey in any period. The largest portion of net sales in the Europe, Middle East & Africa region was $1,485 million, $1,436 million and $1,248 million in Germany for the years ended December 31, 2022, 2021 and 2020, respectively.[2]Net sales and long-lived assets in Asia Pacific are primarily attributable to China.[3]Eliminations and Other includes the elimination of inter-segment transactions. Capital expenditures amounts are attributable to corporate administrative and support functions, including corporate headquarters and certain technical centers. (2) Includes charges recorded in 2022 related to costs associated with employee termination benefits and other exit costs of $30 million for Signal and Power Solutions and $55 million for Advanced Safety and User Experience. |
Revenue Contract Balances (Deta
Revenue Contract Balances (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Liability | $ 99 | $ 0 |
Contract liabilities | 90 | 0 |
Contract liabilities | 9 | 0 |
Contract assets | 43 | 0 |
Contract with Customer, Asset, after Allowance for Credit Loss | $ 67 | $ 0 |
Revenue Remaining Performance O
Revenue Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 135 |
Revenue, Remaining Performance Obligation, Percentage | 67% |
Revenue Costs to Obtain a Contr
Revenue Costs to Obtain a Contract (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capitalized Contract Cost, Net | $ 78 | $ 92 | |
Capitalized Contract Cost, Amortization | 28 | 31 | $ 18 |
Other current assets | |||
Capitalized Contract Cost, Net | 17 | 34 | |
Long-term assets | |||
Capitalized Contract Cost, Net | $ 61 | $ 58 |
Leases Lease - Additional Infor
Leases Lease - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Lessee, Operating and Finance Leases, Renewal Term | 8 | ||
Lessee, Operating and Finance Leases, Options to Terminate Leases Term | 1 | ||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 6 years | |
Lease Income | $ 8 | $ 10 | $ 10 |
Lessee, Operating Lease, Lease Not Yet Commenced, Amount | $ 55 | ||
Motional autonomous driving joint venture | |||
Operating Lease, Weighted Average Remaining Lease Term | 6 years | ||
Lease Income | $ 4 | $ 3 | $ 3 |
Minimum | |||
LesseeOperatingAndFinanceLeasesRemainingLeaseTerm | 1 | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | ||
Maximum | |||
LesseeOperatingAndFinanceLeasesRemainingLeaseTerm | 30 | ||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Leases Lease Cost (Details)
Leases Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Income | $ 8 | $ 10 | $ 10 |
Amortization of right-of-use assets | 4 | 4 | 5 |
Interest on lease liabilities | 1 | 1 | 1 |
Total finance lease cost | 5 | 5 | 6 |
Operating lease cost | 122 | 119 | 111 |
Short-term lease cost | 14 | 13 | 13 |
Variable lease cost | 1 | 0 | 0 |
Sublease Income | 5 | 4 | 4 |
Total lease cost | 137 | 133 | 126 |
Motional autonomous driving joint venture | |||
Lease Income | $ 4 | $ 3 | $ 3 |
Leases Supplemental Cash Flow I
Leases Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Information Related to Leases [Abstract] | |||
Operating cash flows for finance leases | $ 1 | $ 1 | $ 1 |
Operating cash flows for operating leases | 116 | 122 | 107 |
Financing cash flows for finance leases | 4 | 4 | 4 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 102 | 74 | 35 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 3 | $ 1 | $ 1 |
Leases Supplemental Balance She
Leases Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental Balance Sheet Information Related to Leases [Abstract] | ||
Operating lease right-of-use assets | $ 451 | $ 383 |
Accrued liabilities | $ 109 | $ 92 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Long-term operating lease liabilities | $ 361 | $ 304 |
Total operating lease liabilities | 470 | 396 |
Property and equipment | 35 | 26 |
Less: accumulated depreciation | (19) | (15) |
Total property, net | 16 | 11 |
Short-term debt | $ 6 | $ 3 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-Term Debt | Short-Term Debt |
Long-term debt | $ 12 | $ 10 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-Term Debt, Excluding Current Maturities | Long-Term Debt, Excluding Current Maturities |
Total finance lease liabilities | $ 18 | $ 13 |
Operating Lease, Weighted Average Remaining Lease Term | 6 years | 6 years |
Finance Lease, Weighted Average Remaining Lease Term | 4 years | 5 years |
Operating Lease, Weighted Average Discount Rate, Percent | 3.25% | 3% |
Finance Lease, Weighted Average Discount Rate, Percent | 4% | 3.50% |
Leases Maturities of Lease Liab
Leases Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Maturities of Lease Liabilities [Abstract] | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | $ 121 |
Finance Lease, Liability, Payments, Due Next Twelve Months | 6 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 95 |
Finance Lease, Liability, Payments, Due Year Two | 5 |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 78 |
Finance Lease, Liability, Payments, Due Year Three | 4 |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 65 |
Finance Lease, Liability, Payments, Due Year Four | 3 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 49 |
Finance Lease, Liability, Payments, Due Year Five | 2 |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 106 |
Finance Lease, Liability, Payments, Due after Year Five | 1 |
Lessee, Operating Lease, Liability, Payments, Due | 514 |
Finance Lease, Liability, Payment, Due | 21 |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (44) |
Finance Lease, Liability, Undiscounted Excess Amount | (3) |
Lessee, Operating Lease, Lease Not Yet Commenced, Amount | 55 |
Lessee, Operating Lease, Lease Not Yet Commenced, Amount | $ 55 |
Maximum | |
Maturities of Lease Liabilities [Abstract] | |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 10 years |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 37 | $ 40 | $ 37 | |
Charged to Costs and Expenses | 27 | 22 | 39 | |
Deductions | (12) | (24) | (39) | |
Other Activity | 0 | (1) | 3 | |
Balance at End of Period | 52 | 37 | 40 | |
Tax valuation allowance | ||||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 766 | 832 | 1,075 | |
Charged to Costs and Expenses | [1] | 57 | 25 | 84 |
Deductions | (83) | (78) | (333) | |
Other Activity | 16 | (13) | 6 | |
Balance at End of Period | $ 756 | $ 766 | $ 832 | |
[1]Additions Charged to Costs and Expenses and Deductions are primarily related to taxable losses for which the tax benefit has been reserved. |