v3.25.2
Fair Value Of Financial Instruments
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments FAIR VALUE OF FINANCIAL INSTRUMENTS
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 June 30, 2025 and December 31, 2024, Aptiv was in a net derivative asset position of $52 million and a net derivative liability position of $96 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 14. Derivatives and Hedging Activities for further information regarding derivatives.
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, net on the consolidated statements of operations.
Available-for-sale debt securities—Investments in available-for-sale debt securities are reported at fair value with changes in the fair value recorded in other comprehensive income. Changes in the fair value of available-for-sale debt securities impact earnings only when such securities are sold, or an allowance for expected credit losses or impairment is recognized.
As further described in Note 21. Investments in Affiliates, the Company owns investments in Maxieye and StradVision, which are classified as available-for-sale debt securities due to the Company’s redemption rights, and are included within other long-term assets in the consolidated balance sheets. The fair value measurements of these investments are based on significant inputs that are not observable in the market, and are therefore classified as a Level 3 measurement.
The below table summarizes the cost, cumulative unrealized gains, cumulative unrealized losses and estimated fair value of Aptiv’s debt securities as of June 30, 2025 and December 31, 2024:
Cost basisGross unrealized gainsGross unrealized lossesEstimated fair value
 (in millions)
As of June 30, 2025
Available-for-sale debt securities$205 $18 $(12)$211 
Total debt securities$205 $18 $(12)$211 
As of December 31, 2024
Available-for-sale debt securities$165 $8 $(12)$161 
Total debt securities$165 $8 $(12)$161 
The change in fair value of available-for-sale debt securities classified as a Level 3 measurement for the six months ended June 30, 2025 and 2024 are as follows:
Six Months Ended June 30,
20252024
 (in millions)
Fair value at beginning of period$161 $— 
Additions40 84 
Measurement adjustments10 — 
Fair value at end of period$211 $84 
There were no impairment charges related to these investments during the three and six months ended June 30, 2025 and 2024.
As of June 30, 2025 and December 31, 2024, Aptiv had the following assets measured at fair value on a recurring basis:
TotalQuoted Prices in Active Markets
Level 1		Significant Other Observable Inputs
Level 2		Significant Unobservable Inputs
Level 3
 (in millions)
As of June 30, 2025:
Commodity derivatives$20 $— $20 $— 
Foreign currency derivatives34 — 34 — 
Publicly traded equity securities11 11 — — 
Available-for-sale debt securities211 — — 211 
Total$276 $11 $54 $211 
As of December 31, 2024:
Commodity derivatives$6 $— $6 $— 
Foreign currency derivatives13 — 13 — 
Publicly traded equity securities11 11 — — 
Available-for-sale debt securities161 — — 161 
Total$191 $11 $19 $161 
As of June 30, 2025 and December 31, 2024, Aptiv had the following liabilities measured at fair value on a recurring basis:
TotalQuoted Prices in Active Markets
Level 1		Significant Other Observable Inputs
Level 2		Significant Unobservable Inputs
Level 3
 (in millions)
As of June 30, 2025:
Foreign currency derivatives$2 $— $2 $— 
Total$2 $— $2 $— 
As of December 31, 2024:
Commodity derivatives$12 $— $12 $— 
Foreign currency derivatives103 — 103 — 
Total$115 $— $115 $— 
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 Term Loan A and all series of outstanding senior and junior 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 June 30, 2025 and December 31, 2024, total debt was recorded at $7,790 million and $8,352 million, respectively, and had estimated fair values of $6,656 million and $7,125 million, respectively. For all other financial instruments recorded at June 30, 2025 and December 31, 2024, 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 long-lived assets, intangible assets, equity investments without readily determinable fair values and liabilities for exit or disposal activities measured at fair value upon initial recognition. Aptiv recorded non-cash long-lived asset impairment charges of $4 million during the three months ended June 30, 2025 within cost of sales, primarily related to the declines in the fair value of certain fixed assets in connection with a planned site exit. Aptiv recorded non-cash long-lived asset impairment charges of $9 million during the six months ended June 30, 2025 within cost of sales, primarily related to the declines in the fair value of certain fixed assets in connection with the consolidation of certain business operations and in connection with a planned site exit. Aptiv recorded non-cash long-lived asset impairment charges of $14 million for the six months ended June 30, 2024 within cost of sales, primarily related to an operating lease right-of-use asset that will no longer be in use during the remaining lease term. 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 principally fall in Level 3 of the fair value hierarchy.