Aptiv’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, eliminate excess capacity and optimize resource development, 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, the continued rotation of our manufacturing footprint to best cost locations in Europe and aligning our manufacturing capacity with the current levels of automotive production in each region. During the three and six months ended June 30, 2026, the Company recorded employee-related and other restructuring charges related to these programs totaling approximately $24 million and $40 million, respectively.

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 $15 million (of which approximately $10 million relates to the Engineered Components segment and approximately $5 million relates to the Intelligent Systems segment) for programs approved as of June 30, 2026, and are expected to be incurred within the next twelve months.

During the three and six months ended June 30, 2025, Aptiv recorded employee-related and other restructuring charges totaling approximately $27 million and $49 million, respectively, which included the recognition of approximately $12 million and $15 million, respectively, for a program initiated in the fourth quarter of 2024 focused on global salaried workforce optimization, primarily in the European region.

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 $54 million and $58 million in the six months ended June 30, 2026 and 2025, respectively.

The following table summarizes the restructuring charges recorded for the three and six months ended June 30, 2026 and 2025 by operating segment:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

	(in millions)

Engineered Components	$	8	$	17	$	12	$	33
Intelligent Systems	16		10		28		16
Total	$	24	$	27	$	40	$	49

The table below summarizes the activity in the restructuring liability for the six months ended June 30, 2026:


	Employee Termination Benefits Liability		Other Exit Costs Liability		Total

	(in millions)
Accrual balance at January 1, 2026	$	73	$	—	$	73
Provision for estimated expenses incurred during the period	40		—		40
Payments made during the period	(54)		—		(54)

Foreign currency and other	(2)		—		(2)
Accrual balance at June 30, 2026	$	57	$	—	$	57