Revenue

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

REVENUE

Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy.

Nature of Goods and Services

The principal activity from which the Company generates its revenue is the manufacturing of production parts for OEM customers. Aptiv recognizes revenue for production parts at a point in time, rather than over time, as the performance obligation is satisfied when customers obtain control of the product upon title transfer and not as the product is manufactured or developed.

Although production parts are highly customized with no alternative use, Aptiv does not have an enforceable right to payment as customers have the right to cancel a product program without a notification period. The amount of revenue recognized is based on the purchase order price and adjusted for revenue allocated to variable consideration (i.e. estimated rebates and price discounts), as applicable. Customers typically pay for production parts based on customary business practices with payment terms averaging 60 days.

Disaggregation of Revenue

Revenue generated from Aptiv’s operating segments is disaggregated by primary geographic market in the following tables for the years ended December 31, 2021, 2020 and 2019. Information concerning geographic market reflects the manufacturing location.

For the Year Ended December 31, 2021:	Signal and Power Solutions		Advanced Safety and User Experience		Eliminations and Other		Total
	(in millions)
Geographic Market
North America	$	4,135	$	1,204	$	(7)	$	5,332
Europe, Middle East and Africa	3,387		1,802		(10)		5,179
Asia Pacific	3,798		1,050		(19)		4,829
South America	278		—		—		278
Total net sales	$	11,598	$	4,056	$	(36)	$	15,618

For the Year Ended December 31, 2020:	Signal and Power Solutions		Advanced Safety and User Experience		Eliminations and Other		Total
	(in millions)
Geographic Market
North America	$	3,527	$	970	$	(3)	$	4,494
Europe, Middle East and Africa	2,869		1,625		(11)		4,483
Asia Pacific	2,935		978		(15)		3,898
South America	191		—		—		191
Total net sales	$	9,522	$	3,573	$	(29)	$	13,066

For the Year Ended December 31, 2019:	Signal and Power Solutions		Advanced Safety and User Experience		Eliminations and Other		Total
	(in millions)
Geographic Market
North America	$	4,187	$	1,260	$	(3)	$	5,444
Europe, Middle East and Africa	3,045		1,758		(12)		4,791
Asia Pacific	2,828		1,070		(22)		3,876
South America	242		4		—		246
Total net sales	$	10,302	$	4,092	$	(37)	$	14,357

Contract Balances

Consistent with the recognition of production parts revenue at a point in time as title transfers to the customer, Aptiv has no contract assets or contract liabilities balances as of December 31, 2021 and 2020.

Outstanding Performance Obligations

As customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer for a production part, there are no contracts outstanding beyond one year. Aptiv does not enter into fixed long-term supply agreements.

As permitted, Aptiv does not disclose information about remaining performance obligations that have original expected durations of one year or less.

Costs to Obtain a Contract

From time to time, Aptiv makes payments to customers in conjunction with ongoing business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, or upfront fees, meet the criteria to be considered a cost to obtain a contract as they are directly attributable to a contract, are incremental and management expects the fees to be recoverable. As of December 31, 2021 and 2020, Aptiv has recorded $92 million (of which $34 million was classified within other current assets and $58 million was classified within other long-term assets) and $116 million (of which $30 million was classified within other current assets and $86 million was classified within other long-term assets), respectively, related to these capitalized upfront fees.

Capitalized upfront fees are amortized to revenue based on the transfer of goods and services to the customer for which the upfront fees relate, which typically range from three to five years. There have been no impairment losses in relation to the costs capitalized. The amount of amortization to net sales was $31 million, $18 million and $11 million for the years ended December 31, 2021, 2020 and 2019, respectively.