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Pension Benefits
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pension Benefits PENSION BENEFITS
Certain of Aptiv’s non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based on negotiated amounts for each year of service. Aptiv’s primary non-U.S. plans are located in France, Germany, Mexico, Portugal and the United Kingdom (“U.K.”). The U.K. and certain Mexican plans are funded. In addition, Aptiv has defined benefit plans in South Korea, Turkey and Italy for which amounts are payable to employees immediately upon separation. The obligations for these plans are recorded over the requisite service period.
Aptiv sponsors a Supplemental Executive Retirement Program (“SERP”) for those employees who were U.S. executives of the former Delphi Corporation prior to September 30, 2008 and were still U.S. executives of the Company on October 7, 2009, the effective date of the program. This program is unfunded. Executives receive benefits over five years after an involuntary or voluntary separation from Aptiv. The SERP is closed to new members.
Funded Status
The amounts shown below reflect the change in the U.S. defined benefit pension obligations during 2022 and 2021.
Year Ended December 31,
20222021
 (in millions)
Benefit obligation at beginning of year$5 $8 
Actuarial gain(1)— 
Benefits paid(1)(3)
Benefit obligation at end of year$3 $5 
Change in plan assets:
Fair value of plan assets at beginning of year$— $— 
Aptiv contributions1 3 
Benefits paid(1)(3)
Fair value of plan assets at end of year$— $— 
Underfunded status$(3)$(5)
Amounts recognized in the consolidated balance sheets consist of:
Current liabilities$(1)$(1)
Long-term liabilities(2)(4)
Total$(3)$(5)
Amounts recognized in accumulated other comprehensive loss consist of (pre-tax):
Actuarial loss$4 $6 
Total$4 $6 
The amounts shown below reflect the change in the non-U.S. defined benefit pension obligations during 2022 and 2021.
Year Ended December 31,
20222021
 (in millions)
Benefit obligation at beginning of year$861 $977 
Service cost15 18 
Interest cost23 19 
Actuarial gain(171)(62)
Benefits paid(35)(36)
Impact of curtailments— (3)
Exchange rate movements and other(42)(52)
Benefit obligation at end of year$651 $861 
Change in plan assets:
Fair value of plan assets at beginning of year$438 $438 
Actual return on plan assets(89)23 
Aptiv contributions23 25 
Benefits paid(35)(36)
Exchange rate movements and other(30)(12)
Fair value of plan assets at end of year$307 $438 
Underfunded status$(344)$(423)
Amounts recognized in the consolidated balance sheets consist of:
Long-term assets$25 $29 
Current liabilities(18)(17)
Long-term liabilities(351)(435)
Total$(344)$(423)
Amounts recognized in accumulated other comprehensive loss consist of (pre-tax):
Actuarial loss$17 $101 
Total$17 $101 
The benefit obligations were impacted by actuarial gains of $172 million and $62 million during the years ended December 31, 2022 and 2021, respectively, primarily due to changes in the discount rates used to measure the benefit obligation.
The projected benefit obligation (“PBO”), accumulated benefit obligation (“ABO”), and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets and with plan assets in excess of accumulated benefit obligations are as follows:
 U.S. PlansNon-U.S. Plans
 2022202120222021
(in millions)
Plans with ABO in Excess of Plan Assets
PBO$3 $5 $449 $445 
ABO3 5 398 405 
Fair value of plan assets at end of year— — 80 7 
 Plans with Plan Assets in Excess of ABO
PBO$— $— $202 $416 
ABO— — 193 393 
Fair value of plan assets at end of year— — 227 431 
 Total
PBO$3 $5 $651 $861 
ABO3 5 591 798 
Fair value of plan assets at end of year— — 307 438 
Benefit costs presented below were determined based on actuarial methods and included the following:
 U.S. Plans
 Year Ended December 31,
 202220212020
 (in millions)
Amortization of actuarial losses$1 $1 $1 
Net periodic benefit cost$1 $1 $1 
 Non-U.S. Plans
 Year Ended December 31,
 202220212020
 (in millions)
Service cost$15 $18 $18 
Interest cost23 19 20 
Expected return on plan assets(17)(17)(17)
Settlement loss— 1 1 
Curtailment loss — 3 — 
Amortization of actuarial losses8 14 14 
Other— — 1 
Net periodic benefit cost$29 $38 $37 
Other postretirement benefit obligations were approximately $1 million and $1 million at December 31, 2022 and 2021, respectively.
Experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions are recognized in other comprehensive income. Cumulative gains and losses in excess of 10% of the PBO for a particular plan are amortized over the average future service period of the employees in that plan.
The principal assumptions used to determine the pension expense and the actuarial value of the projected benefit obligation for the U.S. and non-U.S. pension plans were:
Assumptions used to determine benefit obligations at December 31:
 Pension Benefits
 U.S. PlansNon-U.S. Plans
 2022202120222021
Weighted-average discount rate5.20 %1.90 %5.95 %3.09 %
Weighted-average rate of increase in compensation levelsN/AN/A2.82 %2.47 %
Assumptions used to determine net expense for years ended December 31:
 Pension Benefits
 U.S. PlansNon-U.S. Plans
 202220212020202220212020
Weighted-average discount rate1.90 %1.20 %2.40 %3.09 %2.21 %2.87 %
Weighted-average rate of increase in compensation levels
N/AN/AN/A2.47 %3.64 %3.69 %
Weighted-average expected long-term rate of return on plan assets
N/AN/AN/A4.46 %4.29 %4.68 %
Aptiv selects discount rates by analyzing the results of matching each plan’s projected benefit obligations with a portfolio of high-quality fixed income investments rated AA or higher by Standard and Poor’s or Moody’s.
Aptiv does not have any U.S. pension assets; therefore no U.S. asset rate of return calculation was necessary. The primary funded non-U.S. plans are in the U.K. and Mexico. For the determination of 2022 expense, Aptiv assumed a long-term expected asset rate of return of approximately 3.75% and 7.50% for the U.K. and Mexico, respectively. Aptiv evaluated input from local actuaries and asset managers, including consideration of recent fund performance and historical returns, in developing the long-term rate of return assumptions. The assumptions for the U.K. and Mexico are primarily long-term, prospective rates. To determine the expected return on plan assets, the market-related value of our plan assets is actual fair value.
Aptiv’s pension expense for 2023 is determined at the 2022 year end measurement date. For purposes of analysis, the following table highlights the sensitivity of the Company’ pension obligations and expense to changes in key assumptions:
Change in AssumptionImpact on
Pension Expense		Impact on PBO
25 basis point (“bp”) decrease in discount rate
Less than + $1 million
‘+ $16 million
25 bp increase in discount rate
‘- $1 million
‘- $15 million
25 bp decrease in long-term expected return on assets
‘+ $1 million
—
25 bp increase in long-term expected return on assets
‘- $1 million
—
The above sensitivities reflect the effect of changing one assumption at a time. It should be noted that economic factors and conditions often affect multiple assumptions simultaneously and the effects of changes in key assumptions are not necessarily linear. The above sensitivities also assume no changes to the design of the pension plans and no major restructuring programs.
Pension Funding
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 Projected Pension Benefit Payments
 U.S. PlansNon-U.S. Plans
 (in millions)
2023$1 $49 
20241 41 
20251 43 
2026— 49 
2027— 53 
2028 – 2032— 285 
Aptiv anticipates making pension contributions and benefit payments of approximately $36 million in 2023.
Aptiv sponsors defined contribution plans for certain hourly and salaried employees. Expense related to the contributions for these plans was $39 million, $37 million, and $17 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Plan Assets
Certain pension plans sponsored by Aptiv invest in a diversified portfolio consisting of an array of asset classes that attempts to maximize returns while minimizing volatility. These asset classes include developed market equities, emerging market equities, private equity, global high quality and high yield fixed income, real estate and absolute return strategies.
The fair values of Aptiv’s pension plan assets weighted-average asset allocations at December 31, 2022 and 2021, by asset category, are as follows:
 Fair Value Measurements at December 31, 2022
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
 (in millions)
Cash and cash equivalents$12 $4 $8 $— 
Time deposits28 — 28 — 
Equity mutual funds6 — 6 — 
Bond mutual funds110 — 110 — 
Real estate trust funds36 — — 36 
Private debt funds17 — — 17 
Insurance contracts2 — — 2 
Debt securities59 59 — — 
Equity securities37 37 — — 
Total$307 $100 $152 $55 
 Fair Value Measurements at December 31, 2021
Asset CategoryTotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
 (in millions)
Cash and cash equivalents$13 $13 $— $— 
Time deposits29 — 29 — 
Equity mutual funds33 — 33 — 
Bond mutual funds216 — 216 — 
Real estate trust funds35 — — 35 
Hedge funds11 — — 11 
Insurance contracts4 — — 4 
Debt securities56 56 — — 
Equity securities41 41 — — 
Total$438 $110 $278 $50 
Following is a description of the valuation methodologies used for pension assets measured at fair value.
Time deposits—The fair value of fixed-maturity certificates of deposit was estimated using the rates offered for deposits of similar remaining maturities.
Equity mutual funds—The fair value of the equity mutual funds is determined by the indirect quoted market prices on regulated financial exchanges of the underlying investments included in the fund.
Bond mutual funds—The fair value of the bond mutual funds is determined by the indirect quoted market prices on regulated financial exchanges of the underlying investments included in the fund.
Real estate—The fair value of real estate properties is estimated using an annual appraisal provided by the administrator of the property investment. Management believes this is an appropriate methodology to obtain the fair value of these assets.
Private debt funds—The fair value of the private debt funds is determined by the fund administrator based on available market quotes on the subject securities or an income approach valuation in order to estimate fair value. Management believes this is an appropriate methodology to obtain the fair value of these assets.
Hedge funds—The fair value of the hedge funds is accounted for by a custodian. The custodian obtains valuations from the underlying hedge fund managers based on market quotes for the most liquid assets and alternative methods for assets that do not have sufficient trading activity to derive prices. Management and the custodian review the methods used by the underlying managers to value the assets. Management believes this is an appropriate methodology to obtain the fair value of these assets.
Insurance contracts—The insurance contracts are invested in a fund with guaranteed minimum returns. The fair values of these contracts are based on the net asset value underlying the contracts.
Debt securities—The fair value of debt securities is determined by direct quoted market prices on regulated financial exchanges.
Equity securities—The fair value of equity securities is determined by direct quoted market prices on regulated financial exchanges.
 Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)
 Real Estate Trust FundHedge FundsInsurance ContractsPrivate Lending Funds
 (in millions)
Beginning balance at January 1, 2021$34 $9 $7 $— 
Actual return on plan assets:
Relating to assets still held at the reporting date3 2 — — 
Purchases, sales and settlements(1)— (3)— 
Foreign currency translation and other(1)— — — 
Ending balance at December 31, 2021$35 $11 $4 $— 
Actual return on plan assets:
Relating to assets still held at the reporting date$5 $1 $— $(2)
Purchases, sales and settlements— (10)— 19 
Foreign currency translation and other(4)(2)(2)— 
Ending balance at December 31, 2022$36 $— $2 $17