On January 22, 2025, the Company announced its intention to pursue a Separation of its Electrical Distribution Systems business. Pursuant to the Separation and Distribution Agreement, the Company transferred to Versigent the assets and liabilities that comprised Versigent’s business and completed the Separation on April 1, 2026 by distributing to Aptiv shareholders on a pro rata basis all of the outstanding ordinary shares of Versigent.

In connection with the Separation, the Company received a cash distribution of approximately $1.9 billion from Versigent. The Company used the proceeds received from the cash distribution to redeem the 4.650% Senior Notes and settle the Tender Offer, as described in Note 8. Debt. Versigent financed this cash distribution through the issuance of the Versigent Debt, as described in Note 8. Debt, which was transferred to Versigent on April 1, 2026, and is no longer reflected in the Company’s consolidated financial statements beginning April 1, 2026.

The requirements for presenting Versigent as a discontinued operation were met when the Separation was completed, requiring retrospective application to the balance sheet, statement of operations and statement of cash flows for all periods presented. Amounts for shared operating expenses allocated to the Electrical Distribution Systems segment in prior periods have been re-allocated to the Company's reportable operating segments.

In connection with the Separation, Aptiv and Versigent entered into various agreements to effect the Separation and to provide a framework for their relationship following the Separation, which included a Separation and Distribution Agreement, Transition Services Agreement, Tax Matters Agreement, Employee Matters Agreement, Intellectual Property Cross License Agreement and Supply Agreements. The transition services primarily involve Aptiv providing certain services to Versigent related to information technology for terms of up to 24 months following the Separation.

Coinciding with the completion of the Separation, the Company incurred costs of approximately $50 million ($50 million, net of tax) in bank-related success fees during the three months ended June 30, 2026, which have been reclassified to discontinued operations.

During the three and six months ended June 30, 2026, the Company incurred costs of approximately $18 million and $75 million, respectively, related to the Separation, of which approximately $0 million and $52 million, respectively, were reclassified to discontinued operations. During the three and six months ended June 30, 2025, the Company incurred costs of approximately $28 million and $47 million, respectively, of which approximately $27 million and $46 million, respectively, were reclassified to discontinued operations. These costs, which are included in selling, general and administrative expense within the consolidated statements of operations, were primarily related to third-party professional fees associated with planning and executing the Separation. The Company expects to continue to incur additional expenses related to the Separation during the remainder of 2026.

The Company separated its defined benefit pension and other post-employment benefit plans in anticipation of the Separation. In addition, as a result of the Separation, the Company adjusted its employee share based compensation awards. Refer to Note 17. Share-Based Compensation for additional information.

As a result of the completion of the Separation on April 1, 2026, there were no assets or liabilities of the discontinued operation as of June 30, 2026. The following table summarizes the carrying value of the major classes of assets and liabilities of discontinued operations as of December 31, 2025:


	December 31, 2025

	(in millions)
Cash and cash equivalents	$	276
Accounts receivable, net	1,567
Inventories, net	772
Other current assets	226
Total current assets of discontinued operations	$	2,841

Property, net	$	902
Operating lease right-of-use assets	170
Investments in affiliates	143
Intangible assets, net	7
Deferred tax assets	417
Goodwill	588
Other long-term assets	129
Total long-term assets of discontinued operations	$	2,356

Short-term debt	$	58
Accounts payable	1,534
Other current liabilities	608
Total current liabilities of discontinued operations	$	2,200

Long-term debt	$	3
Pension benefit obligations	218
Long-term operating lease liabilities	131
Other long-term liabilities	97
Total long-term liabilities of discontinued operations	$	449

A reconciliation of the major classes of line items constituting pre-tax profit or loss of discontinued operations to (loss) income from discontinued operations, net of tax as presented in the consolidated statements of operations is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in millions)
Net sales	$	—	$	2,009	$	2,054	$	3,847
Cost of sales	—		1,743		1,804		3,332
Selling, general and administrative	—		79		99		154
Amortization	—		1		1		1
Restructuring (1)	—		25		46		40
Other loss items that are not major, net	50		2		56		6
(Loss) income from discontinued operations before income taxes and equity income (2)	(50)		159		48		314
Income tax benefit (expense) on discontinued operations	—		(29)		(39)		(59)
Equity income from discontinued operations	—		3		4		8
(Loss) income from discontinued operations, net of tax	(50)		133		13		263
Income from discontinued operations attributable to noncontrolling interest (2)	—		5		3		6
Net (loss) income from discontinued operations attributable to Aptiv	$	(50)	$	128	$	10	$	257

(1)Restructuring expense during the six months ended June 30, 2026 included the recognition of approximately $33 million for programs to downsize and close European manufacturing sites. Restructuring expense during the three and six months ended June 30, 2025 included the recognition of approximately $9 million and $22 million, respectively, for programs to downsize and close European manufacturing sites.