v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
In connection with the Separation, as further described in Note 22. Separation of Electrical Distribution Systems, in the first quarter of 2025 Aptiv realigned its business into three reportable operating segments: Electrical Distribution Systems, Engineered Components Group and Advanced Safety and User Experience. Prior period amounts have been adjusted retrospectively to reflect the change in reportable operating segments, consistent with the current year presentation, throughout the consolidated financial statements and the accompanying notes to the consolidated financial statements.
Aptiv operates its core business along the following operating segments, which are grouped on the basis of similar product, market and operating factors:
•Electrical Distribution Systems, which includes the full range of low voltage and high voltage power, signal and data distribution solutions needed to deliver fully integrated, cost-optimized architectures. As described in Note 22. Separation of Electrical Distribution Systems, the Company is pursuing a separation of the Electrical Distribution Systems business into a new, independent publicly traded company, through a transaction expected to be treated as a tax-free spin-off to its shareholders.
•Engineered Components Group, which includes interconnect and component solutions that optimize the distribution of signal, power and data for next-generation applications across multiple end markets.
•Advanced Safety and User Experience, which includes platforms and modular offerings, such as perception systems, high-performance compute solutions, cloud-native software for ADAS and user experience, and edge-to-cloud 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 (“CODM”), who is the Company’s chair and chief executive officer, 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, separation costs related to the planned spin-off of the Electrical Distribution Systems business, 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, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions (“Adjusted Operating Income”).
Aptiv’s management, including the CODM, 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. The CODM regularly evaluates budget-to-actual and period-over-period variances for this metric when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses Adjusted Operating Income in evaluating the operating performance of each segment and as part of determining the compensation of the segment managers and certain other employees.
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, significant expenses and operating data for Aptiv’s segments for the three and six months ended June 30, 2025 and 2024.
Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and Other (1)Total
 (in millions)
For the Three Months Ended June 30, 2025:
Sales from external customers$2,206 $1,499 $1,503 $— $5,208 
Intersegment revenues— 224 4 (228)— 
Net sales$2,206 $1,723 $1,507 $(228)$5,208 
Cost of sales(1,944)(1,277)(1,218)228 (4,211)
Selling, general and administrative(132)(160)(114)— (406)
Other segment items (2)33 1 3 — 37 
Segment adjusted operating income$163 $287 $178 $— $628 
Depreciation and amortization$64 $113 $73 $— $250 
Net gain on equity method transactions$— $— $46 $— $46 
Equity income (loss), net of tax$3 $— $(14)$— $(11)
Net income attributable to noncontrolling interest$5 $— $— $— $5 
Net loss attributable to redeemable noncontrolling interest$— $(1)$— $— $(1)
Capital expenditures$51 $61 $33 $4 $149 
Electrical Distribution SystemsEngineered Components Group Advanced Safety and User ExperienceEliminations and Other (1)Total
 (in millions)
For the Three Months Ended June 30, 2024:
Sales from external customers$2,064 $1,433 $1,554 $— $5,051 
Intersegment revenues1 193 — (194)— 
Net sales$2,065 $1,626 $1,554 $(194)$5,051 
Cost of sales(1,822)(1,183)(1,272)194 (4,083)
Selling, general and administrative(114)(153)(138)— (405)
Other segment items (2)9 8 26 — 43 
Segment adjusted operating income$138 $298 $170 $— $606 
Depreciation and amortization$56 $106 $86 $— $248 
Net gain on equity method transactions$— $— $641 $— $641 
Equity income (loss), net of tax$4 $— $(38)$— $(34)
Net income attributable to noncontrolling interest$5 $— $— $— $5 
Capital expenditures$64 $88 $65 $9 $226 

Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and Other (1)Total
 (in millions)
For the Six Months Ended June 30, 2025:
Sales from external customers$4,229 $2,880 $2,924 $— $10,033 
Intersegment revenues1 424 7 (432)— 
Net sales$4,230 $3,304 $2,931 $(432)$10,033 
Cost of sales(3,722)(2,443)(2,383)432 (8,116)
Selling, general and administrative(256)(308)(226)— (790)
Other segment items (2)54 8 11 — 73 
Segment adjusted operating income$306 $561 $333 $— $1,200 
Depreciation and amortization$121 $225 $146 $— $492 
Net gain on equity method transactions$— $— $46 $— $46 
Equity income (loss), net of tax$8 $— $(29)$— $(21)
Net income attributable to noncontrolling interest
$6 $— $— $— $6 
Net loss attributable to redeemable noncontrolling interest$— $(2)$— $— $(2)
Capital expenditures$79 $182 $74 $11 $346 
Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceEliminations and Other (1)Total
 (in millions)
For the Six Months Ended June 30, 2024:
Sales from external customers$4,144 $2,826 $2,982 $— $9,952 
Intersegment revenues2 396 1 (399)— 
Net sales$4,146 $3,222 $2,983 $(399)$9,952 
Cost of sales(3,671)(2,383)(2,451)399 (8,106)
Selling, general and administrative(221)(304)(246)— (771)
Other segment items (2)20 16 39 — 075 
Segment adjusted operating income$274 $551 $325 $— $1,150 
Depreciation and amortization$114 $209 $155 $— $478 
Net gain on equity method transactions$— $— $641 $— $641 
Equity income (loss), net of tax$8 $— $(111)$— $(103)
Net income attributable to noncontrolling interest$11 $— $— $— $11 
Capital expenditures$131 $213 $120 $27 $491 
(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)Other segment items represent costs that are not included in Adjusted operating income, such as other acquisitions and portfolio project costs, asset impairments, compensation expense related to acquisitions and separation costs, as described above in the definition of Adjusted operating income.
The reconciliations of Segment Adjusted Operating Income to net income attributable to Aptiv for the three and six months ended June 30, 2025 and 2024 are as follows:
Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceTotal
 (in millions)
For the Three Months Ended June 30, 2025:
Segment adjusted operating income$163 $287 $178 $628 
Amortization(1)(30)(22)(53)
Restructuring(25)(17)(10)(52)
Separation costs(28)— — (28)
Other acquisition and portfolio project costs(2)— (4)(6)
Asset impairments(3)(1)— (4)
Compensation expense related to acquisitions— — (4)(4)
Gain on asset sale— — 5 5 
Operating income486 
Interest expense(91)
Other income, net12 
Net gain on equity method transactions46 
Income before income taxes and equity loss453 
Income tax expense(45)
Equity loss, net of tax
(11)
Net income397 
Net income attributable to noncontrolling interest5 
Net loss attributable to redeemable noncontrolling interest(1)
Net income attributable to Aptiv$393 
Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceTotal
 (in millions)
For the Three Months Ended June 30, 2024:
Segment adjusted operating income$138 $298 $170 $606 
Amortization— (31)(21)(52)
Restructuring(35)(19)(16)(70)
Other acquisition and portfolio project costs(9)(8)(8)(25)
Asset impairments— — (14)(14)
Compensation expense related to acquisitions— — (4)(4)
Operating income441 
Interest expense(64)
Other income, net10 
Net gain on equity method transactions 641 
Income before income taxes and equity loss1,028 
Income tax expense(51)
Equity loss, net of tax(34)
Net income943 
Net income attributable to noncontrolling interest5 
Net income attributable to Aptiv$938 
Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceTotal
 (in millions)
For the Six Months Ended June 30, 2025:
Segment adjusted operating income$306 $561 $333 $1,200 
Amortization(1)(59)(44)(104)
Restructuring(41)(32)(16)(89)
Separation costs(47)— — (47)
Other acquisition and portfolio project costs(4)(2)(7)(13)
Asset impairments(3)(6)— (9)
Compensation expense related to acquisitions— — (9)(9)
Gain on asset sale— — 5 5 
Operating income934 
Interest expense(184)
Other income, net12 
Net gain on equity method transactions46 
Income before income taxes and equity loss808 
Income tax expense(401)
Equity loss, net of tax
(21)
Net income386 
Net income attributable to noncontrolling interest6 
Net loss attributable to redeemable noncontrolling interest(2)
Net income attributable to Aptiv$382 
Electrical Distribution SystemsEngineered Components GroupAdvanced Safety and User ExperienceTotal
 (in millions)
For the Six Months Ended June 30, 2024:
Segment adjusted operating income$274 $551 $325 $1,150 
Amortization(1)(61)(44)(106)
Restructuring(50)(26)(33)(109)
Other acquisition and portfolio project costs(20)(16)(17)(53)
Asset impairments— — (14)(14)
Compensation expense related to acquisitions— — (8)(8)
Operating income860 
Interest expense(129)
Other income, net25 
Net gain on equity method transactions641 
Income before income taxes and equity loss1,397 
Income tax expense(127)
Equity loss, net of tax(103)
Net income1,167 
Net income attributable to noncontrolling interest11 
Net income attributable to Aptiv$1,156