XML 43 R26.htm IDEA: XBRL DOCUMENT v3.23.1
Segment Reporting
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
Aptiv operates its core business along the following operating segments, which are grouped on the basis of similar product, market and operating factors:
•Signal and Power Solutions, which includes complete electrical architecture and component products.
•Advanced Safety and User Experience, which includes vehicle technology and services in advanced safety, user experience and connectivity and security solutions, as well as cloud-native software platforms, autonomous driving technologies and DevOps tools.
•Eliminations and Other, which includes i) the elimination of inter-segment transactions, and ii) certain other expenses and income of a non-operating or strategic nature.
The accounting policies of the segments are the same as those described in Note 2. Significant Accounting Policies, except that the disaggregated financial results for the segments have been prepared using a management approach, which is
consistent with the basis and manner in which management internally disaggregates financial information for which Aptiv’s chief operating decision maker regularly reviews financial results to assess performance of, and make internal operating decisions about allocating resources to, the segments.
Generally, Aptiv evaluates segment performance based on stand-alone segment net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions (“Adjusted Operating Income”) and accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, at current market prices.
Aptiv’s management utilizes Adjusted Operating Income as the key performance measure of segment income or loss to evaluate segment performance, and for planning and forecasting purposes to allocate resources to the segments, as management believes this measure is most reflective of the operational profitability or loss of Aptiv’s operating segments. Segment Adjusted Operating Income should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Aptiv, which is the most directly comparable financial measure to Adjusted Operating Income that is prepared in accordance with U.S. GAAP. Segment Adjusted Operating Income, as determined and measured by Aptiv, should also not be compared to similarly titled measures reported by other companies.
Included below are sales and operating data for Aptiv’s segments for the three months ended March 31, 2023 and 2022.
Signal and Power SolutionsAdvanced Safety and User ExperienceEliminations and Other (1)Total
 (in millions)
For the Three Months Ended March 31, 2023:
Net sales$3,464 $1,366 $(12)$4,818 
Depreciation and amortization$149 $67 $— $216 
Adjusted operating income$374 $63 $— $437 
Operating income$319 $29 $— $348 
Equity income (loss), net of tax$3 $(85)$— $(82)
Net income attributable to noncontrolling interest$3 $— $— $3 
Net loss attributable to redeemable noncontrolling interest$(1)$— $— $(1)
Signal and Power SolutionsAdvanced Safety and User ExperienceEliminations and Other (1)Total
 (in millions)
For the Three Months Ended March 31, 2022:
Net sales$3,106 $1,082 $(10)$4,178 
Depreciation and amortization$146 $45 $— $191 
Adjusted operating income$308 $16 $— $324 
Operating income (loss)$257 $(1)$— $256 
Equity income (loss), net of tax$4 $(67)$— $(63)
Net income attributable to noncontrolling interest
$1 $— $— $1 
(1)Eliminations and Other includes the elimination of inter-segment transactions.
The reconciliation of Adjusted Operating Income to operating income includes, as applicable, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions. The reconciliations of Adjusted Operating Income to net income attributable to Aptiv for the three months ended March 31, 2023 and 2022 are as follows:
Signal and Power SolutionsAdvanced Safety and User ExperienceTotal
 (in millions)
For the Three Months Ended March 31, 2023:
Adjusted operating income$374 $63 $437 
Amortization(36)(23)(59)
Restructuring(7)(4)(11)
Other acquisition and portfolio project costs(12)(2)(14)
Compensation expense related to acquisitions— (5)(5)
Operating income$319 $29 348 
Interest expense(67)
Other expense, net(1)
Income before income taxes and equity loss280 
Income tax expense(34)
Equity loss, net of tax
(82)
Net income164 
Net income attributable to noncontrolling interest3 
Net loss attributable to redeemable noncontrolling interest(1)
Net income attributable to Aptiv$162 
Signal and Power SolutionsAdvanced Safety and User ExperienceTotal
 (in millions)
For the Three Months Ended March 31, 2022:
Adjusted operating income$308 $16 $324 
Amortization(35)(2)(37)
Restructuring(9)(13)(22)
Other acquisition and portfolio project costs(7)(2)(9)
Operating income (loss)$257 $(1)256 
Interest expense(43)
Other expense, net(39)
Income before income taxes and equity loss174 
Income tax expense(21)
Equity loss, net of tax(63)
Net income90 
Net income attributable to noncontrolling interest1 
Net income attributable to Aptiv$89