v3.26.1
Fair Value Of Financial Instruments
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025, Aptiv was in a net derivative asset position of $143 million and $166 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.
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 an investment in Maxieye, which is classified as an available-for-sale debt security due to the Company’s redemption rights. As of March 31, 2026, the carrying value of this investment was $58 million and is included within other long-term assets in the consolidated balance sheets. The fair value measurement of this investment is based on significant inputs that are not observable in the market, and is therefore classified as a Level 3 measurement. As further described in Note 21. Investments in Affiliates, in October 2025, the Company converted its existing preferred shares in StradVision into common shares (the “Conversion”). Prior to the Conversion, the Company classified its investment in StradVision as an available-for-sale debt security due to the Company’s redemption rights. The fair value measurement of this investment prior to the Conversion was based on significant inputs that were not observable in the market, and was therefore classified as a Level 3 measurement.
Refer to Note 21. Investments in Affiliates for further information regarding these investments.
The below table summarizes the cost, cumulative unrealized gains and losses, which includes the accumulated currency translation adjustments for StradVision prior to the Conversion, as described above, and the estimated fair value of Aptiv’s debt securities held as of March 31, 2026 and December 31, 2025:
Cost basisGross unrealized gainsGross unrealized lossesEstimated fair value
 (in millions)
As of March 31, 2026
Available-for-sale debt securities$57 $21 $(19)$59 
Total debt securities$57 $21 $(19)$59 
As of December 31, 2025
Available-for-sale debt securities$57 $20 $(19)$58 
Total debt securities$57 $20 $(19)$58 
The change in fair value of available-for-sale debt securities classified as a Level 3 measurement for the three months ended March 31, 2026 and 2025 are as follows:
Three Months Ended March 31,
20262025
 (in millions)
Fair value at beginning of period$58 $161 
Additions— 11 
Measurement adjustments1 — 
Fair value at end of period$59 $172 
There were no impairment charges related to these investments during the three months ended March 31, 2026 and 2025.
As of March 31, 2026 and December 31, 2025, 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 March 31, 2026:
Commodity derivatives$67 $— $67 $— 
Foreign currency derivatives76 — 76 — 
Available-for-sale debt securities59 — — 59 
Total$202 $— $143 $59 
As of December 31, 2025:
Commodity derivatives$85 $— $85 $— 
Foreign currency derivatives82 — 82 — 
Available-for-sale debt securities58 — — 58 
Total$225 $— $167 $58 
As of March 31, 2026 and December 31, 2025, Aptiv had the following liabilities measured at fair value on a recurring basis:
TotalQuoted Prices in Active Markets
Level 1		Significant Other Observable Inputs
Level 2		Significant Unobservable Inputs
Level 3
 (in millions)
As of March 31, 2026:
Foreign currency derivatives$— $— $— $— 
Total$— $— $— $— 
As of December 31, 2025:
Foreign currency derivatives$1 $— $1 $— 
Total$1 $— $1 $— 
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, the Versigent Debt 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 March 31, 2026 and December 31, 2025, total debt was recorded at $9,350 million and $7,551 million, respectively, and had estimated fair values of $8,386 million and $6,700 million, respectively. For all other financial instruments recorded at March 31, 2026 and December 31, 2025, 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 $7 million during the three months ended March 31, 2026 within cost of sales, primarily related to 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 $5 million during the three months ended March 31, 2025 within cost of sales, primarily related to declines in the fair value of certain fixed assets in connection with the consolidation of certain business operations. 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.