v3.26.1
Related-Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related-Party Transactions
3. RELATED-PARTY TRANSACTIONS
The Company has historically operated as part of the Parent and not as a standalone company. Accordingly, the Parent has allocated certain account balances and costs to the Company that are reflected within these combined financial statements. Management considers the allocation methodologies used by the Parent to be reasonable and to appropriately reflect the related expenses attributable to the Company for purposes of the carve-out financial statements; however, the expenses reflected in these financial statements may not be indicative of the actual expenses that would have been incurred during the periods presented if the Company had operated as a separate standalone entity. In addition, the expenses reflected in the financial statements may not be indicative of expenses the Company will incur in the future. Actual costs that would have been incurred if the Company had been a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including the Company’s capital structure, information technology and infrastructure.
As described in Note 1. Business and Basis of Presentation, the Company participated in a global cash pooling arrangement operated by the Parent and certain of its subsidiaries, whereby cash generated by the Company was managed by Aptiv. This arrangement managed the working capital needs of the Company. The majority of the Company’s cash was transferred to Aptiv, and Aptiv funded the Company’s operating and investing activities as necessary. The cumulative net transfers related to these transactions are recorded in Net parent investment in the combined financial statements.
In connection with the Spin-Off, the Company paid a dividend of $1,900 million to the Parent.
Related Party Sales and Purchases
In the ordinary course of business, the Company enters into transactions with the Parent and certain of its subsidiaries for the sale or purchase of goods.
Net sales of products from Versigent to uncombined Aptiv affiliates totaled $2 million and $1 million for the three months ended March 31, 2026 and 2025, respectively.
Total purchases from uncombined Aptiv affiliates totaled $192 million and $186 million for the three months ended March 31, 2026 and 2025, respectively.
As of March 31, 2026 and December 31, 2025, the net amount due to uncombined Aptiv affiliates was $54 million and $123 million, respectively.
Allocations of Costs Prior to the Spin-Off
The Company had certain services and functions provided to it by the Parent. These services and functions included, but were not limited to, senior management, legal, human resources, finance and accounting, treasury, information technology services and support, cash management, payroll processing, pension and benefit administration and other shared services. These costs were allocated using methodologies that management believes were reasonable for the item being allocated. Allocation methodologies included direct usage when identifiable, as well as the Company’s relative share of revenues, headcount or functional spend as a percentage of the total.
The total costs for services and functions allocated to the Company from the Parent were as follows for the three months ended March 31, 2026 and 2025:
Three Months Ended March 31,
 20262025
 (in millions)
Cost of sales$13 $19 
Selling, general and administrative80 78 
Total allocated costs from Parent$93 $97 
Net Parent Investment
Net parent investment in the combined financial statements represents Aptiv’s historical investment in the Company, the net effect of transactions with, and allocations from, Aptiv, as well as Versigent’s accumulated earnings and other comprehensive income (loss). Net transfers with the Parent are included within Net parent investment. The components of Net transfers (to) from Parent were as follows:
Three Months Ended March 31,
 20262025
 (in millions)
Cash pooling and general financing activities, net$(216)$(45)
Corporate cost allocations93 97 
Income taxes (1)(7)(13)
Net transfers (to) from Parent per combined statements of cash flows(130)39 
Transfer of net assets with Parent19 — 
Related party receivables exchanged with Parent111 — 
Deferred and non-cash taxes settled with Parent through net parent investment (1)53 — 
Net transfers from Parent per combined statements of net parent investment$53 $39 
(1)Represents non-cash income tax impacts incurred in the respective period as a result of the application of the separate return basis with respect to the income tax provision and related balance sheet accounts within the combined financial statements, as further described in Note 13. Income Taxes, as well as taxes paid by the Parent.