Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Registrant Name | Aptiv PLC | |
Entity Central Index Key | 1,521,332 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 264,737,985 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net sales | $ 3,684 | $ 3,153 | $ 7,314 | $ 6,296 |
Operating expenses: | ||||
Cost of sales | 2,958 | 2,498 | 5,905 | 5,042 |
Selling, general and administrative | 260 | 231 | 519 | 456 |
Amortization | 30 | 29 | 60 | 58 |
Restructuring | 15 | 31 | 35 | 83 |
Total operating expenses | 3,263 | 2,789 | 6,519 | 5,639 |
Operating income | 421 | 364 | 795 | 657 |
Interest expense | (36) | (35) | (70) | (68) |
Other (expense) income, net | (7) | 8 | 23 | (15) |
Income from continuing operations before income taxes and equity income | 378 | 337 | 748 | 574 |
Income tax expense | (83) | (38) | (142) | (57) |
Income from continuing operations before equity income | 295 | 299 | 606 | 517 |
Equity income, net of tax | 8 | 7 | 13 | 18 |
Income from continuing operations | 303 | 306 | 619 | 535 |
Income from discontinued operations, net of tax | 0 | 80 | 0 | 203 |
Net income | 303 | 386 | 619 | 738 |
Net income attributable to noncontrolling interest | 12 | 17 | 21 | 34 |
Net income attributable to Aptiv | 291 | 369 | 598 | 704 |
Amounts attributable to Aptiv: | ||||
Income from continuing operations | 291 | 297 | 598 | 517 |
Income from discontinued operations | 0 | 72 | 0 | 187 |
Net income attributable to Aptiv | $ 291 | $ 369 | $ 598 | $ 704 |
Basic net income per share: | ||||
Income from continuing operations, per basic share | $ 1.10 | $ 1.11 | $ 2.25 | $ 1.92 |
Income from discontinued operations, per basic share | 0 | 0.27 | 0 | 0.70 |
Basic net income per share attributable to Aptiv | $ 1.10 | $ 1.38 | $ 2.25 | $ 2.62 |
Weighted average number of basic shares outstanding | 264,810 | 267,410 | 265,250 | 268,300 |
Diluted net income per share: | ||||
Income from continuing operations, per diluted share | $ 1.10 | $ 1.11 | $ 2.25 | $ 1.92 |
Income from discontinued operations, per diluted share | 0 | 0.27 | 0 | 0.70 |
Diluted net income per share attributable to Aptiv | $ 1.10 | $ 1.38 | $ 2.25 | $ 2.62 |
Weighted average number of diluted shares outstanding | 265,480 | 268,030 | 265,960 | 268,780 |
Cash dividends declared per share | $ 0.22 | $ 0.29 | $ 0.22 | $ 0.58 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 303 | $ 386 | $ 619 | $ 738 |
Other comprehensive income (loss): | ||||
Currency translation adjustments | (193) | 103 | (132) | 189 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax (Note 14) | (10) | 4 | (33) | 43 |
Employee benefit plans adjustment, net of tax | 9 | 1 | 10 | 5 |
Other comprehensive income (loss) | (194) | 108 | (155) | 237 |
Comprehensive income | 109 | 494 | 464 | 975 |
Comprehensive income attributable to noncontrolling interests | 4 | 20 | 17 | 38 |
Comprehensive income attributable to Aptiv | $ 105 | $ 474 | $ 447 | $ 937 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 970 | $ 1,596 |
Restricted cash | 1 | 1 |
Accounts receivable, net | 2,598 | 2,440 |
Inventories (Note 3) | 1,265 | 1,083 |
Other current assets (Note 4) | 506 | 521 |
Total current assets | 5,340 | 5,641 |
Long-term assets: | ||
Property, net | 2,972 | 2,804 |
Investments in affiliates | 99 | 91 |
Intangible assets, net (Note 2) | 1,245 | 1,219 |
Goodwill (Note 2) | 2,157 | 1,944 |
Other long-term assets (Note 4) | 503 | 470 |
Total long-term assets | 6,976 | 6,528 |
Total assets | 12,316 | 12,169 |
Current liabilities: | ||
Short-term debt (Note 8) | 22 | 17 |
Accounts payable | 2,307 | 2,227 |
Accrued liabilities (Note 5) | 1,109 | 1,296 |
Total current liabilities | 3,438 | 3,540 |
Long-term liabilities: | ||
Long-term debt (Note 8) | 4,067 | 4,132 |
Pension benefit obligations | 432 | 454 |
Other long-term liabilities (Note 5) | 621 | 526 |
Total long-term liabilities | 5,120 | 5,112 |
Total liabilities | 8,558 | 8,652 |
Commitments and contingencies (Note 10) | ||
Shareholders' equity: | ||
Preferred shares, $0.01 par value per share, 50,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Ordinary shares, $0.01 par value per share, 1,200,000,000 shares authorized, 264,845,247 and 265,839,794 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively | 3 | 3 |
Additional paid-in capital | 1,632 | 1,649 |
Retained earnings | 2,510 | 2,118 |
Accumulated other comprehensive loss (Note 13) | (622) | (471) |
Total Aptiv shareholders' equity | 3,523 | 3,299 |
Noncontrolling interest | 235 | 218 |
Total shareholders' equity | 3,758 | 3,517 |
Total liabilities and shareholders' equity | $ 12,316 | $ 12,169 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value per share | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 50,000,000 | 50,000,000 |
Preferred shares, outstanding | 0 | 0 |
Ordinary shares, par value per share | $ 0.01 | $ 0.01 |
Ordinary shares, authorized | 1,200,000,000 | 1,200,000,000 |
Ordinary shares, outstanding | 264,845,247 | 265,839,794 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 619 | $ 738 |
Income from discontinued operations, net of tax | 0 | 203 |
Income from continuing operations | 619 | 535 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 251 | 198 |
Amortization | 60 | 58 |
Amortization of deferred debt issuance costs | 4 | 3 |
Restructuring expense, net of cash paid | (31) | 23 |
Deferred income taxes | (11) | 3 |
Pension and other postretirement benefit expenses | 20 | 20 |
Income from equity method investments, net of dividends received | (13) | (18) |
Share-based compensation | 27 | 28 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (91) | (65) |
Inventories | (157) | (175) |
Other assets | (74) | (36) |
Accounts payable | 145 | 79 |
Accrued and other long-term liabilities | 2 | 54 |
Other, net | 23 | (20) |
Pension contributions | (22) | (15) |
Net cash provided by operating activities from continuing operations | 752 | 672 |
Net cash used in operating activities from discontinued operations | (52) | 217 |
Net cash provided by operating activities | 700 | 889 |
Cash flows from investing activities: | ||
Capital expenditures | (449) | (311) |
Proceeds from sale of property / investments | 6 | 2 |
Cost of business acquisitions, net of cash acquired | (512) | (40) |
Cost of technology investments | 0 | (25) |
Settlement of derivatives | 6 | 12 |
Net cash used in investing activities from continuing operations | (961) | (386) |
Net cash used in investing activities from discontinued operations | 0 | (77) |
Net cash used in investing activities | (961) | (463) |
Cash flows from financing activities: | ||
Net (repayments) proceeds under other short-term debt agreements | (15) | (5) |
Contingent consideration and deferred acquisition purchase price payments | (5) | (20) |
Dividend payments of consolidated affiliates to minority shareholders | 0 | (10) |
Repurchase of ordinary shares | (149) | (289) |
Distribution of cash dividends | (117) | (156) |
Taxes withheld and paid on employees' restricted share awards | (35) | (33) |
Net cash used in financing activities | (321) | (513) |
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (44) | 41 |
Increase (decrease) in cash, cash equivalents and restricted cash | (626) | (46) |
Cash, cash equivalents and restricted cash at beginning of period | 1,597 | 839 |
Cash, cash equivalents and restricted cash at end of period | 971 | 793 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 78 |
Cash, cash equivalents and restricted cash of continuing operations | $ 971 | $ 715 |
Consolidated Statement Of Share
Consolidated Statement Of Shareholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Millions | Total | Ordinary Shares | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total Aptiv Shareholders' Equity | Noncontrolling Interest |
Balance at Dec. 31, 2017 | $ 3,517 | $ 3 | $ 1,649 | $ 2,118 | $ (471) | $ 3,299 | $ 218 |
Balance, in shares at Dec. 31, 2017 | 266,000,000 | ||||||
Net income | 619 | 598 | 598 | 21 | |||
Other comprehensive income | (155) | (151) | (151) | (4) | |||
Taxes witheld on employees' restricted share award vestings | $ (35) | (35) | (35) | ||||
Repurchase of ordinary shares, in shares | (1,719,712) | (2,000,000) | |||||
Repurchase of ordinary shares | $ (153) | (9) | (144) | (153) | |||
Share-based compensation, in shares | 1,000,000 | ||||||
Share based compensation | 27 | 27 | 27 | ||||
Distribution of Delphi Technologies | 5 | 5 | 5 | ||||
Balance at Jun. 30, 2018 | 3,758 | $ 3 | 1,632 | 2,510 | $ (622) | 3,523 | 235 |
Balance, in shares at Jun. 30, 2018 | 265,000,000 | ||||||
Dividends, Cash | 58 | $ 0 | 58 | 58 | $ 0 | ||
Adjustment for recently adopted accounting pronouncements | $ (9) | $ (9) | $ (9) |
General
General | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL General and basis of presentation —“Aptiv,” the “Company,” “we,” “us” and “our” refer to Aptiv PLC, a public limited company which was formed under the laws of Jersey on May 19, 2011 as Delphi Automotive PLC, which together with its subsidiaries acquired certain assets of the former Delphi Corporation (now known as DPH Holdings Corp. (“DPHH”)) and completed an initial public offering on November 22, 2011 . On December 4, 2017 (the “Distribution Date”), the Company completed the separation (the “Separation”) of its former Powertrain Systems segment by distributing to Aptiv shareholders on a pro rata basis all of the issued and outstanding ordinary shares of Delphi Technologies PLC (“Delphi Technologies”), a public limited company formed to hold the spun-off business. To effect the Separation, the Company distributed to its shareholders one ordinary share of Delphi Technologies for every three Aptiv ordinary shares outstanding as of November 22, 2017 , the record date for the distribution. Following the Separation, the remaining company changed its name to Aptiv PLC and New York Stock Exchange ("NYSE") symbol to "APTV." Also, as a result of the Separation, Delphi Technologies became an independent public company trading on the NYSE under the symbol "DLPH" as of the Distribution Date. Delphi Technologies' historical financial results through the Distribution Date are reflected in the Company’s consolidated financial statements as a discontinued operation, as more fully described in Note 21. Discontinued Operations. In April 2018, primarily as a result of the impact of the Separation on the Company’s U.K. presence and the centralization of the Company's non-manufacturing European footprint, along with the long-term stability of the financial and regulatory environment in Ireland and continued uncertainties with regards to the impending exit of the U.K. from the European Union, Aptiv PLC changed its tax residence from the U.K. to Ireland. Aptiv PLC remains a public limited company incorporated under the laws of Jersey, and will continue to be subject to United States Securities and Exchange Commission reporting requirements and prepare financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The consolidated financial statements have been prepared in accordance with U.S. GAAP and all adjustments, consisting of only normal recurring items, which are necessary for a fair presentation, have been included. The consolidated financial statements and notes thereto included in this report should be read in conjunction with Aptiv's 2017 Annual Report on Form 10-K. Nature of operations —Aptiv is a leading global technology and mobility company serving the automotive sector. We design and manufacture vehicle components and provide electrical, electronic and active safety technology solutions to the global automotive market. Aptiv operates manufacturing facilities and technical centers utilizing a regional service model that enables the Company to efficiently and effectively serve its global customers from best cost countries. In line with the long term growth in emerging markets, Aptiv has been increasing its focus on these markets, particularly in China, where the Company has a major manufacturing base and strong customer relationships. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES Consolidation —The consolidated financial statements include the accounts of Aptiv and U.S. and non-U.S. subsidiaries in which Aptiv holds a controlling financial or management interest and variable interest entities of which Aptiv has determined that it is the primary beneficiary. Aptiv’s share of the earnings or losses of non-controlled affiliates over which Aptiv exercises significant influence (generally a 20% to 50% ownership interest) is included in the consolidated operating results using the equity method of accounting. When Aptiv does not have the ability to exercise significant influence (generally when ownership interest is less than 20%), investments in non-consolidated affiliates are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , and are measured at cost, less impairments, adjusted for observable price changes. All significant intercompany transactions and balances between consolidated Aptiv businesses have been eliminated. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss is recorded, which is measured as the difference between carrying value and estimated fair value. Estimated fair value is generally determined using an income approach based on discounted cash flows or negotiated transaction values. Investments in non-consolidated affiliates totaled $56 million and $56 million as of June 30, 2018 and December 31, 2017 , respectively, and are classified within other long-term assets in the consolidated balance sheet. Use of estimates —Preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect amounts reported therein. Generally, matters subject to estimation and judgment include amounts related to accounts receivable realization, inventory obsolescence, asset impairments, useful lives of intangible and fixed assets, deferred tax asset valuation allowances, income taxes, pension benefit plan assumptions, accruals related to litigation, warranty costs, environmental remediation costs, contingent consideration arrangements, worker’s compensation accruals and healthcare accruals. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from those estimates. Revenue recognition —Beginning in the first quarter of 2018, Aptiv recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers . Refer to Note 22. Revenue for additional information regarding the Company's revenue recognition policies. Net income per share —Basic net income per share is computed by dividing net income attributable to Aptiv by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock method by dividing net income attributable to Aptiv by the diluted weighted average number of ordinary shares outstanding. Unless otherwise noted, share and per share amounts included in these notes are on a diluted basis. Refer to Note 12. Shareholders’ Equity and Net Income Per Share for additional information including the calculation of basic and diluted net income per share. Cash and cash equivalents —Cash and cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less. Accounts receivable —Aptiv enters into agreements to sell certain of its accounts receivable, primarily in Europe. Sales of receivables are accounted for in accordance with FASB Accounting Standards Codification ("ASC") Topic 860, Transfers and Servicing ("ASC 860"). Agreements which result in true sales of the transferred receivables, as defined in ASC 860, which occur when receivables are transferred without recourse to the Company, are excluded from amounts reported in the consolidated balance sheets. Cash proceeds received from such sales are included in operating cash flows. Agreements that allow Aptiv to maintain effective control over the transferred receivables and which do not qualify as a sale, as defined in ASC 860, are accounted for as secured borrowings and recorded in the consolidated balance sheets within accounts receivable, net and short-term debt. The expenses associated with receivables factoring are recorded in the consolidated statements of operations within interest expense. Intangible assets —Intangible assets were $1,245 million and $1,219 million as of June 30, 2018 and December 31, 2017 , respectively. Aptiv amortizes definite-lived intangible assets over their estimated useful lives. Aptiv has definite-lived intangible assets related to patents and developed technology, customer relationships and trade names. Indefinite-lived in-process research and development intangible assets are not amortized, but are tested for impairment annually, or more frequently when indicators of potential impairment exist, until the completion or abandonment of the associated research and development efforts. Upon completion of the projects, the assets will be amortized over the expected economic life of the asset, which will be determined on that date. Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense. The Company also has intangible assets related to acquired trade names that are classified as indefinite-lived when there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. These indefinite-lived trade name assets are tested for impairment annually, or more frequently when indicators of potential impairment exist. Costs to renew or extend the term of acquired intangible assets are recognized as expense as incurred. Amortization expense was $30 million and $60 million for the three and six months ended June 30, 2018 and $29 million and $58 million and for the three and six months ended June 30, 2017 , respectively. Goodwill —Goodwill is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations. The Company tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment exist. The Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company tests for goodwill impairment at the reporting unit level. Our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The impairment test involves first qualitatively assessing goodwill for impairment. If the qualitative assessment is not met the Company then performs a quantitative assessment by first comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the estimated fair value exceeds carrying value, then we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its estimated fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value. There were no indicators of potential goodwill impairment during the six months ended June 30, 2018 . Goodwill was $2,157 million and $1,944 million as of June 30, 2018 and December 31, 2017 , respectively. Warranty and product recalls —Expected warranty costs for products sold are recognized at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of our warranty accrual at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Refer to Note 6. Warranty Obligations for additional information. Discontinued operations —The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs only when the disposal of a component or a group of components of the Company represents a strategic shift that will have a major effect on the Company's operations and financial results. During the year ended December 31, 2017 , the Company completed the Separation of its former Powertrain Systems segment by means of a spin-off into Delphi Technologies. Accordingly, the assets and liabilities, operating results and operating and investing cash flows for the previously reported Powertrain Systems segment are presented as discontinued operations separate from the Company’s continuing operations and segment results for all periods presented in these consolidated financial statements and the notes to the consolidated financial statements, unless otherwise noted. Refer to Note 21. Discontinued Operations for further information regarding the Company's discontinued operations. Income taxes —Deferred tax assets and liabilities reflect temporary differences between the amount of assets and liabilities for financial and tax reporting purposes. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines it is more likely than not that the deferred tax assets will not be realized in the future, the valuation allowance adjustment to the deferred tax assets will be charged to earnings in the period in which the Company makes such a determination. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. Refer to Note 11. Income Taxes for additional information. Restructuring —Aptiv continually evaluates alternatives to align the business with the changing needs of its customers and to lower operating costs. This includes the realignment of its existing manufacturing capacity, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination. Contract termination costs are recorded when contracts are terminated or when Aptiv ceases to use the leased facility and no longer derives economic benefit from the contract. All other exit costs are expensed as incurred. Refer to Note 7. Restructuring for additional information. Customer concentrations —As reflected in the table below, combined net sales to General Motors Company ("GM") and Volkswagen Group ("VW"), Aptiv's two largest customers, totaled approximately 20% and 19% of our total net sales for the three and six months ended June 30, 2018 , respectively, and 24% and 24% for the three and six months ended June 30, 2017 , respectively. Percentage of Total Net Sales Accounts and Other Receivables Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2018 2017 2018 2017 (in millions) GM (1) 11 % 15 % 11 % 15 % $ 220 $ 204 VW 9 % 9 % 8 % 9 % 161 145 (1) Net sales to GM includes net sales to GM's former European Opel business prior to its sale to PSA Peugeot Citroën ("PSA") on August 1, 2017, after which date these sales are excluded from net sales to GM. Recently adopted accounting pronouncements —Aptiv adopted ASU 2014-09, Revenue from Contracts with Customers , in the first quarter of 2018 using the modified retrospective method. This ASU supersedes most of the existing guidance on revenue recognition in ASC Topic 605, Revenue Recognition and establishes a broad principle that would require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Refer to Note 22. Revenue for additional information. Aptiv adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , in the first quarter of 2018 . This guidance makes targeted improvements to existing U.S. GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. In accordance with this guidance, Aptiv measures equity investments at cost, less impairments, adjusted for observable price changes. The adoption of this guidance did not have a significant impact on Aptiv's financial statements. Aptiv adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , in the first quarter of 2018. This guidance clarifies the presentation requirements of eight specific issues within the statement of cash flows. The adoption of this guidance did not have a significant impact on Aptiv's financial statements, as Aptiv's treatment of the relevant affected items within its consolidated statement of cash flows is consistent with the requirements of this guidance. Aptiv adopted ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory , in the first quarter of 2018. This guidance requires that the tax effects of all intra-entity sales of assets other than inventory be recognized in the period in which the transaction occurs. The guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of this guidance resulted in an adjustment of $9 million recorded to retained earnings during the six months ended June 30, 2018 . Aptiv adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , in the first quarter of 2018. This guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash. As a result, restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this guidance did not have a significant impact on Aptiv's financial statements, other than the classification of restricted cash within the beginning-of-period and end-of-period totals on the consolidated statement of cash flows, as opposed to being excluded from these totals. Recently issued accounting pronouncements not yet adopted —In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee's obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. As of December 31, 2017, Aptiv had minimum lease commitments under non-cancellable operating leases totaling approximately $450 million . The adoption of this guidance will result in the addition of right-of-use assets and corresponding lease obligations to the consolidated balance sheet and will not have a material impact on its results of operations or cash flows. As permitted, the Company currently plans to elect the practical expedients upon transition which will retain the lease classification and initial direct costs for leases existing prior to the adoption of this standard. The Company will not reassess whether any contracts which were entered into prior to the adoption of ASU 2016-02 are classified as leases. The Company is in the process of cataloging existing lease contracts and implementing changes to its systems. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This guidance simplifies how an entity is required to test goodwill for impairment by eliminating step two from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its financial statements, but does not anticipate a material impact. As this standard is prospective in nature, the impact to Aptiv's financial statements of not performing a step two in order to measure the amount of any potential goodwill impairment will depend on various factors associated with the Company's assessment of goodwill for impairment in those future periods. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities , which expands and refines the application of hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for the elimination of the stranded income tax effects resulting from the enactment of the Tax Cuts and Jobs Act through a reclassification from accumulated other comprehensive income to retained earnings. The standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on Aptiv's financial statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value, including direct material costs and direct and indirect manufacturing costs. A summary of inventories is shown below: June 30, December 31, (in millions) Productive material $ 725 $ 584 Work-in-process 109 100 Finished goods 431 399 Total $ 1,265 $ 1,083 |
Assets
Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Assets | ASSETS Other current assets consisted of the following: June 30, December 31, (in millions) Value added tax receivable $ 167 $ 160 Prepaid insurance and other expenses 96 104 Reimbursable engineering costs 50 33 Notes receivable 25 16 Income and other taxes receivable 51 46 Deposits to vendors 7 8 Derivative financial instruments (Note 14) 7 30 Accounts receivable to be remitted to Delphi Technologies (Note 21) 103 123 Other — 1 Total $ 506 $ 521 Other long-term assets consisted of the following: June 30, December 31, (in millions) Deferred income taxes, net $ 186 $ 185 Unamortized Revolving Credit Facility debt issuance costs (Note 8) 7 8 Income and other taxes receivable 16 22 Reimbursable engineering costs 103 66 Value added tax receivable 35 37 Equity investments (Note 17) 56 56 Derivative financial instruments (Note 14) — 8 Other 100 88 Total $ 503 $ 470 |
Liabilities
Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Liabilities | LIABILITIES Accrued liabilities consisted of the following: June 30, December 31, (in millions) Payroll-related obligations $ 249 $ 218 Employee benefits, including current pension obligations 80 116 Income and other taxes payable 216 233 Warranty obligations (Note 6) 36 41 Restructuring (Note 7) 64 90 Customer deposits 27 28 Derivative financial instruments (Note 14) 12 15 Accrued interest 39 41 Dividends payable — 59 Accounts payable to be remitted on behalf of Delphi Technologies (Note 21) 60 132 Other 326 323 Total $ 1,109 $ 1,296 Other long-term liabilities consisted of the following: June 30, December 31, (in millions) Environmental (Note 10) $ 3 $ 4 Extended disability benefits 9 9 Warranty obligations (Note 6) 17 17 Restructuring (Note 7) 36 42 Payroll-related obligations 10 10 Accrued income taxes 175 154 Deferred income taxes, net 268 222 Derivative financial instruments (Note 14) 8 11 Deferred compensation related to nuTonomy acquisition (Note 17) 27 4 Other 68 53 Total $ 621 $ 526 |
Warranty Obligations
Warranty Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Warranty Obligations | WARRANTY OBLIGATIONS Expected warranty costs for products sold are recognized principally at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. The estimated costs related to product recalls based on a formal campaign soliciting return of that product are accrued at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Aptiv has recognized its best estimate for its total aggregate warranty reserves, including product recall costs, across all of its operating segments as of June 30, 2018 . The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of June 30, 2018 to be zero to $20 million . The table below summarizes the activity in the product warranty liability for the six months ended June 30, 2018 : Warranty Obligations (in millions) Accrual balance at beginning of period $ 58 Provision for estimated warranties incurred during the period 20 Changes in estimate for pre-existing warranties 5 Settlements made during the period (in cash or in kind) (30 ) Foreign currency translation and other — Accrual balance at end of period $ 53 In September 2016, one of the Company's OEM customers initiated a recall to enhance airbag deployment systems in certain vehicles. Aptiv's Advanced Safety and User Experience segment had supplied sensors and related control modules for the airbags in the affected vehicles. During the first quarter of 2017, Aptiv reached an agreement with its customer related to this matter and recognized an incremental $43 million of warranty expense within cost of sales during the six months ended June 30, 2017 . |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RESTRUCTURING Aptiv’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, 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 Aptiv'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 the continued rotation of our manufacturing footprint to best cost locations in Europe and on reducing global overhead costs, including programs implemented to realign the Company's organizational structure due to changes in roles and workforce as a result of the spin-off of the former Powertrain Systems segment. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $15 million and $35 million during the three and six months ended June 30, 2018 , respectively, which is primarily comprised of $10 million and $22 million , respectively, recognized for programs focused on the continued rotation of our manufacturing footprint to best cost locations in Europe and reducing overhead costs in the region. Restructuring costs of approximately $31 million and $83 million were recorded during the three and six months ended June 30, 2017 , respectively, which included the recognition of approximately $36 million of employee-related and other costs related to the closure of an Advanced Safety and User Experience Western European manufacturing site, pursuant to the Company's ongoing European footprint rotation strategy. 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 $66 million and $60 million in the six months ended June 30, 2018 and 2017 , respectively. The following table summarizes the restructuring charges recorded for the three and six months ended June 30, 2018 and 2017 by operating segment: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Signal and Power Solutions $ 11 $ 14 $ 29 $ 27 Advanced Safety and User Experience 4 17 6 56 Total $ 15 $ 31 $ 35 $ 83 The table below summarizes the activity in the restructuring liability for the six months ended June 30, 2018 : Employee Termination Benefits Liability Other Exit Costs Liability Total (in millions) Accrual balance at January 1, 2018 $ 131 $ 1 $ 132 Provision for estimated expenses incurred during the period 35 — 35 Payments made during the period (65 ) (1 ) (66 ) Foreign currency and other (1 ) — (1 ) Accrual balance at June 30, 2018 $ 100 $ — $ 100 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following is a summary of debt outstanding, net of unamortized issuance costs and discounts, as of June 30, 2018 and December 31, 2017 , respectively: June 30, December 31, (in millions) 3.15%, senior notes, due 2020 (net of $2 and $2 unamortized issuance costs and $0 and $1 discount, respectively) $ 648 $ 647 4.15%, senior notes, due 2024 (net of $4 and $4 unamortized issuance costs and $1 and $1 discount, respectively) 695 695 1.50%, Euro-denominated senior notes, due 2025 (net of $4 and $4 unamortized issuance costs and $2 and $3 discount, respectively) 803 833 4.25%, senior notes, due 2026 (net of $3 and $4 unamortized issuance costs, respectively) 647 646 1.60%, Euro-denominated senior notes, due 2028 (net of $4 and $4 unamortized issuance costs and $1 and $1 discount, respectively) 573 595 4.40%, senior notes, due 2046 (net of $3 and $3 unamortized issuance costs and $2 and $2 discount, respectively) 295 295 Tranche A Term Loan, due 2021 (net of $1 and $2 unamortized issuance costs, respectively) 391 396 Capital leases and other 37 42 Total debt 4,089 4,149 Less: current portion (22 ) (17 ) Long-term debt $ 4,067 $ 4,132 Credit Agreement Aptiv PLC and its wholly-owned subsidiary Aptiv Corporation entered into a credit agreement (the "Credit Agreement") with JPMorgan Chase Bank, N.A., as administrative agent (the "Administrative Agent"), under which it maintains senior secured credit facilities currently consisting of a term loan (the “Tranche A Term Loan”) and a revolving credit facility of $2.0 billion (the “Revolving Credit Facility”). The Credit Agreement was entered into in March 2011 and has been subsequently amended and restated on several occasions, most recently on August 17, 2016. The 2016 amendment extended the maturity of the Revolving Credit Facility and the Tranche A Term Loan from 2018 to 2021, increased the capacity of the Revolving Credit Facility from $1.5 billion to $2.0 billion and permitted Aptiv PLC to act as a borrower on the Revolving Credit Facility. The Tranche A Term Loan and the Revolving Credit Facility mature on August 17, 2021. Beginning in the fourth quarter of 2017, Aptiv was obligated to begin making quarterly principal payments throughout the term of the Tranche A Term Loan, according to the amortization schedule in the Credit Agreement. The Credit Agreement also contains an accordion feature that permits Aptiv to increase, from time to time, the aggregate borrowing capacity under the Credit Agreement by up to an additional $1 billion (or a greater amount based upon a formula set forth in the Credit Agreement) upon Aptiv's request, the agreement of the lenders participating in the increase, and the approval of the Administrative Agent and existing lenders. As of June 30, 2018 , there were no amounts drawn on the Revolving Credit Facility and approximately $7 million in letters of credit issued under the Credit Agreement. Letters of credit issued under the Credit Agreement reduce availability under the Revolving Credit Facility. Loans under the Credit Agreement bear interest, at Aptiv's option, at either (a) the Administrative Agent’s Alternate Base Rate (“ABR” as defined in the Credit Agreement) or (b) the London Interbank Offered Rate (the “Adjusted LIBO Rate” as defined in the Credit Agreement) (“LIBOR”) plus in either case a percentage per annum as set forth in the table below (the “Applicable Rate”). The Applicable Rates under the Credit Agreement on the specified dates are set forth below: June 30, 2018 December 31, 2017 LIBOR plus ABR plus LIBOR plus ABR plus Revolving Credit Facility 1.10 % 0.10 % 1.10 % 0.10 % Tranche A Term Loan 1.25 % 0.25 % 1.25 % 0.25 % The Applicable Rate under the Credit Agreement may increase or decrease from time to time based on changes in the Company's credit ratings. Accordingly, the interest rate will fluctuate during the term of the Credit Agreement based on changes in the ABR, LIBOR or future changes in the Company's corporate credit ratings. The Credit Agreement also requires that Aptiv pay certain facility fees on the Revolving Credit Facility and certain letter of credit issuance and fronting fees. The interest rate period with respect to LIBOR interest rate options can be set at one-, two-, three-, or six-months as selected by Aptiv in accordance with the terms of the Credit Agreement (or other period as may be agreed by the applicable lenders). Aptiv may elect to change the selected interest rate option in accordance with the provisions of the Credit Agreement. As of June 30, 2018 , Aptiv selected the one-month LIBOR interest rate option on the Tranche A Term Loan, and the rate effective as of June 30, 2018 , as detailed in the table below, was based on the Company's current credit rating and the Applicable Rate for the Credit Agreement: Borrowings as of June 30, 2018 Rate effective as of Applicable Rate (in millions) June 30, 2018 Tranche A Term Loan LIBOR plus 1.25% $ 392 3.375 % Borrowings under the Credit Agreement are prepayable at Aptiv's option without premium or penalty. The Credit Agreement contains certain covenants that limit, among other things, the Company’s (and the Company’s subsidiaries’) ability to incur certain additional indebtedness or liens or to dispose of substantially all of its assets. In addition, the Credit Agreement requires that the Company maintain a consolidated leverage ratio (the ratio of Consolidated Total Indebtedness to Consolidated EBITDA, each as defined in the Credit Agreement) of less than 3.50 to 1.0 . The Credit Agreement also contains events of default customary for financings of this type. The Company was in compliance with the Credit Agreement covenants as of June 30, 2018 . As of June 30, 2018 , all obligations under the Credit Agreement were borrowed by Aptiv Corporation and jointly and severally guaranteed by its direct and indirect parent companies, subject to certain exceptions set forth in the Credit Agreement. Refer to Note 19. Supplemental Guarantor and Non-Guarantor Condensed Consolidating Financial Statements for additional information. Senior Unsecured Notes On March 3, 2014, Aptiv Corporation issued $700 million in aggregate principal amount of 4.15% senior unsecured notes due 2024 (the “2014 Senior Notes”) in a transaction registered under the Securities Act. The 2014 Senior Notes were priced at 99.649% of par, resulting in a yield to maturity of 4.193% . The proceeds were primarily utilized to redeem $500 million of 5.875% senior unsecured notes due 2019 and to repay a portion of the Tranche A Term Loan. Aptiv paid approximately $6 million of issuance costs in connection with the 2014 Senior Notes. Interest is payable semi-annually on March 15 and September 15 of each year to holders of record at the close of business on March 1 or September 1 immediately preceding the interest payment date. On March 10, 2015, Aptiv PLC issued €700 million in aggregate principal amount of 1.50% Euro-denominated senior unsecured notes due 2025 (the “2015 Euro-denominated Senior Notes”) in a transaction registered under the Securities Act. The 2015 Euro-denominated Senior Notes were priced at 99.54% of par, resulting in a yield to maturity of 1.55% . The proceeds were primarily utilized to redeem $500 million of 6.125% senior unsecured notes due 2021 , and to fund growth initiatives, such as acquisitions, and share repurchases. Aptiv incurred approximately $5 million of issuance costs in connection with the 2015 Euro-denominated Senior Notes. Interest is payable annually on March 10. The Company has designated the 2015 Euro-denominated Senior Notes as a net investment hedge of the foreign currency exposure of its investments in certain Euro-denominated wholly-owned subsidiaries. Refer to Note 14. Derivatives and Hedging Activities for further information. On November 19, 2015, Aptiv PLC issued $1.3 billion in aggregate principal amount of senior unsecured notes in a transaction registered under the Securities Act, comprised of $650 million of 3.15% senior unsecured notes due 2020 (the "3.15% Senior Notes") and $650 million of 4.25% senior unsecured notes due 2026 (the "4.25% Senior Notes") (collectively, the "2015 Senior Notes"). The 3.15% Senior Notes were priced at 99.784% of par, resulting in a yield to maturity of 3.197% , and the 4.25% Senior Notes were priced at 99.942% of par, resulting in a yield to maturity of 4.256% . The proceeds were primarily utilized to fund a portion of the cash consideration for the acquisition of HellermannTyton PLC and for general corporate purposes, including the payment of fees and expenses associated with the HellermannTyton PLC acquisition and the related financing transaction. Aptiv incurred approximately $8 million of issuance costs in connection with the 2015 Senior Notes. Interest on the 3.15% Senior Notes is payable semi-annually on May 19 and November 19 of each year to holders of record at the close of business on May 4 or November 4 immediately preceding the interest payment date. Interest on the 4.25% Senior Notes is payable semi-annually on January 15 and July 15 of each year to holders of record at the close of business on January 1 or July 1 immediately preceding the interest payment date. On September 15, 2016, Aptiv PLC issued €500 million in aggregate principal amount of 1.60% Euro-denominated senior unsecured notes due 2028 (the “2016 Euro-denominated Senior Notes”) in a transaction registered under the Securities Act. The 2016 Euro-denominated Senior Notes were priced at 99.881% of par, resulting in a yield to maturity of 1.611% . The proceeds, together with proceeds from the 2016 Senior Notes described below, were utilized to redeem the $800 million of 5.00% senior unsecured notes due 2023 . Aptiv incurred approximately $4 million of issuance costs in connection with the 2016 Euro-denominated Senior Notes. Interest is payable annually on September 15. The Company has designated the 2016 Euro-denominated Senior Notes as a net investment hedge of the foreign currency exposure of its investments in certain Euro-denominated wholly-owned subsidiaries. Refer to Note 14. Derivatives and Hedging Activities for further information. On September 20, 2016, Aptiv PLC issued $300 million in aggregate principal amount of 4.40% senior unsecured notes due 2046 (the “2016 Senior Notes”) in a transaction registered under the Securities Act. The 2016 Senior Notes were priced at 99.454% of par, resulting in a yield to maturity of 4.433% . The proceeds, together with proceeds from the 2016 Euro-denominated Senior Notes, were utilized to redeem the $800 million of 5.00% senior unsecured notes due 2023 . Aptiv incurred approximately $3 million of issuance costs in connection with the 2016 Senior Notes. Interest is payable semi-annually on April 1 and October 1 of each year to holders of record at the close of business on March 15 or September 15 immediately preceding the interest payment date. Although the specific terms of each indenture governing each series of senior notes vary, the indentures contain certain restrictive covenants, including with respect to Aptiv's (and Aptiv's subsidiaries) ability to incur liens, enter into sale and leaseback transactions and merge with or into other entities. As of June 30, 2018 , the Company was in compliance with the provisions of all series of the outstanding senior notes. The 2014 Senior Notes were issued by Aptiv Corporation. The 2014 Senior Notes are fully and unconditionally guaranteed, jointly and severally, by Aptiv PLC and by certain of Aptiv PLC's direct and indirect subsidiaries which are directly or indirectly 100% owned by Aptiv PLC, subject to customary release provisions (other than in the case of Aptiv PLC). The 2015 Euro-denominated Senior Notes, 2015 Senior Notes, 2016 Euro-denominated Senior Notes and 2016 Senior Notes issued by Aptiv PLC are fully and unconditionally guaranteed, jointly and severally, by certain of Aptiv PLC's direct and indirect subsidiaries (including Aptiv Corporation), which are directly or indirectly 100% owned by Aptiv PLC, subject to customary release provisions. Refer to Note 19. Supplemental Guarantor and Non-Guarantor Condensed Consolidating Financial Statements for additional information. Other Financing Receivable factoring —Aptiv maintains a €300 million European accounts receivable factoring facility that is available on a committed basis. This facility is accounted for as short-term debt and borrowings are subject to the availability of eligible accounts receivable. Collateral is not required related to these trade accounts receivable. This program renews on a non-committed, indefinite basis unless terminated by either party. Borrowings bear interest at Euro Interbank Offered Rate ("EURIBOR") plus 0.42% for borrowings denominated in Euros. No amounts were outstanding on the European accounts receivable factoring facility as of June 30, 2018 or December 31, 2017 . Capital leases and other —As of June 30, 2018 and December 31, 2017 , approximately $37 million and $42 million , respectively, of other debt primarily issued by certain non-U.S. subsidiaries and capital lease obligations was outstanding. Interest —Cash paid for interest related to debt outstanding totaled $68 million and $63 million for the six months ended June 30, 2018 and 2017 , respectively. |
Pension Benefits
Pension Benefits | 6 Months Ended |
Jun. 30, 2018 | |
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 DPHH 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 5 years after an involuntary or voluntary separation from Aptiv. The SERP is closed to new members. The amounts shown below reflect the defined benefit pension expense for the three and six months ended June 30, 2018 and 2017 : Non-U.S. Plans U.S. Plans Three Months Ended June 30, 2018 2017 2018 2017 (in millions) Service cost $ 4 $ 6 $ — $ — Interest cost 7 5 — 1 Expected return on plan assets (7 ) (6 ) — — Curtailment loss — 3 — — Amortization of actuarial losses 3 2 1 — Net periodic benefit cost $ 7 $ 10 $ 1 $ 1 Non-U.S. Plans U.S. Plans Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Service cost $ 9 $ 10 $ — $ — Interest cost 14 12 — 1 Expected return on plan assets (13 ) (12 ) — — Curtailment loss 1 3 — — Amortization of actuarial losses 7 5 1 — Net periodic benefit cost $ 18 $ 18 $ 1 $ 1 Other postretirement benefit obligations were approximately $4 million and $4 million at June 30, 2018 and December 31, 2017 , respectively. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Ordinary Business Litigation Aptiv is from time to time subject to various legal actions and claims incidental to its business, including those arising out of alleged defects, alleged breaches of contracts, product warranties, intellectual property matters, and employment-related matters. It is the opinion of Aptiv that the outcome of such matters will not have a material adverse impact on the consolidated financial position, results of operations, or cash flows of Aptiv. With respect to warranty matters, although Aptiv cannot ensure that the future costs of warranty claims by customers will not be material, Aptiv believes its established reserves are adequate to cover potential warranty settlements. Unsecured Creditors Litigation Aptiv was subject to ongoing litigation related to general unsecured claims against the former Delphi Corporation, now known as DPHH, resulting from that entity's 2005 bankruptcy filing. The Fourth Amended and Restated Limited Liability Partnership Agreement of Delphi Automotive LLP (the “Fourth LLP Agreement”) was entered into on July 12, 2011 by the members of Delphi Automotive LLP in order to position the Company for its initial public offering. Under the terms of the Fourth LLP Agreement, if cumulative distributions to the members of Delphi Automotive LLP under certain provisions of the Fourth LLP Agreement exceed $7.2 billion , Aptiv, as disbursing agent on behalf of DPHH, is required to pay to the holders of allowed general unsecured claims against DPHH $32.50 for every $67.50 in excess of $7.2 billion distributed to the members, up to a maximum amount of $300 million . On January 12, 2017, the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court") granted summary judgment in favor of the unsecured creditors and thus the $300 million maximum distribution for general unsecured claims was triggered. In connection with the January 2017 ruling, the Company recorded a reserve of $300 million in the fourth quarter of 2016. In March 2017, the Bankruptcy Court issued a ruling on the application of pre-judgment interest owed on the amount of the distribution to be made to the holders of general unsecured claims. Pursuant to this ruling, Aptiv recorded an additional reserve of $27 million during the three months ended March 31, 2017. During the second quarter of 2017, Aptiv and the plaintiffs reached an agreement to settle this matter for $310 million , which was subsequently approved by the Bankruptcy Court. In July 2017, the Company paid the $310 million settlement pursuant to the terms of the settlement agreement. In accordance with the settlement agreement and Bankruptcy Court approval, the Company reduced its reserve for this matter to $310 million as of June 30, 2017. The $17 million portion of the Company's previously recorded reserve that was not included in the terms of the settlement agreement was recorded to other income during the three months ended June 30, 2017. Brazil Matters Aptiv conducts business operations in Brazil that are subject to the Brazilian federal labor, social security, environmental, tax and customs laws, as well as a variety of state and local laws. While Aptiv believes it complies with such laws, they are complex, subject to varying interpretations, and the Company is often engaged in litigation with government agencies regarding the application of these laws to particular circumstances. As of June 30, 2018 , the majority of claims asserted against Aptiv in Brazil relate to such litigation. The remaining claims in Brazil relate to commercial and labor litigation with private parties. As of June 30, 2018 , claims totaling approximately $155 million (using June 30, 2018 foreign currency rates) have been asserted against Aptiv in Brazil. As of June 30, 2018 , the Company maintains accruals for these asserted claims of $20 million (using June 30, 2018 foreign currency rates). The amounts accrued represent claims that are deemed probable of loss and are reasonably estimable based on the Company’s analyses and assessment of the asserted claims and prior experience with similar matters. While the Company believes its accruals are adequate, the final amounts required to resolve these matters could differ materially from the Company’s recorded estimates and Aptiv’s results of operations could be materially affected. The Company estimates the reasonably possible loss in excess of the amounts accrued related to these claims to be zero to $135 million . Environmental Matters Aptiv is subject to the requirements of U.S. federal, state, local and non-U.S. environmental and safety and health laws and regulations. As of June 30, 2018 and December 31, 2017 , the undiscounted reserve for environmental investigation and remediation was approximately $4 million (of which $1 million was recorded in accrued liabilities and $3 million was recorded in other long-term liabilities) and $4 million (which was recorded in other long-term liabilities), respectively. Aptiv cannot ensure that environmental requirements will not change or become more stringent over time or that its eventual environmental remediation costs and liabilities will not exceed the amount of its current reserves. In the event that such liabilities were to significantly exceed the amounts recorded, Aptiv’s results of operations could be materially affected. At June 30, 2018 , the difference between the recorded liabilities and the reasonably possible range of potential loss was not material. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES At the end of each interim period, the Company makes its best estimate of the annual expected effective income tax rate and applies that rate to its ordinary year-to-date earnings or loss. The income tax provision or benefit related to unusual or infrequent items, if applicable, that will be separately reported or reported net of their related tax effects are individually computed and recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates, tax status, judgment on the realizability of a beginning-of-the-year deferred tax asset in future years or income tax contingencies is recognized in the interim period in which the change occurs. The computation of the annual expected effective income tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected pre-tax income (or loss) for the year, projections of the proportion of income (and/or loss) earned and taxed in respective jurisdictions, permanent and temporary differences, and the likelihood of the realizability of deferred tax assets generated in the current year. Jurisdictions with a projected loss for the year or a year-to-date loss for which no tax benefit or expense can be recognized due to a valuation allowance are excluded from the estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the composition and timing of actual earnings compared to annual projections. The estimates used to compute the provision or benefit for income taxes may change as new events occur, additional information is obtained or as our tax environment changes. To the extent that the expected annual effective income tax rate changes, the effect of the change on prior interim periods is included in the income tax provision in the period in which the change in estimate occurs. The Company's income tax expense and effective tax rate for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (dollars in millions) Income tax expense $ 83 $ 38 $ 142 $ 57 Effective tax rate 22 % 11 % 19 % 10 % The Company’s tax rate is affected by the fact that its parent entity was a U.K. resident taxpayer and became an Irish resident taxpayer in April 2018, the tax rates in Ireland, the U.K. and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no tax benefit or expense was recognized due to a valuation allowance. The Company’s effective tax rate was impacted by unfavorable changes in geographic income mix in 2018 as compared to 2017, primarily due to changes in the underlying business operations. The Company’s effective tax rate for the three and six months ended June 30, 2018 also includes net discrete tax expense of $21 million and $20 million , respectively, primarily related to a change in the provisional accrual of transition tax for untaxed foreign earnings, as described below, partially offset by changes in reserves and provision to return adjustments. The effective tax rate for the three and six months ended June 30, 2017 includes net discrete tax benefits of $4 million and $12 million , respectively, primarily related to provision to return adjustments, net of related changes in valuation allowances and reserves. The Tax Cuts and Jobs Act (the "Tax Legislation") was enacted in the United States on December 22, 2017, significantly revising the U.S. corporate income tax by, among other things, lowering corporate income tax rates and imposing a one-time repatriation tax on deemed repatriated earnings of foreign subsidiaries. Pursuant to ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , the Company recognized the provisional effects of the enactment of the Tax Legislation of approximately $50 million during the year ended December 31, 2017 for which measurement could be reasonably estimated. The impact was primarily the result of increased tax expense due to the one-time deemed repatriation tax and a reduction of our foreign tax credit, partially offset by the favorable impact of the reduced tax rate on the Company’s net deferred tax liabilities. Pursuant to ASU 2018-05, adjustments to the provisional amounts recorded by the Company as of December 31, 2017 that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. To-date in 2018, the U.S. Treasury Department and the Internal Revenue Service ("IRS") have issued additional guidance, particularly with respect to computing the transition tax on the untaxed foreign earnings of foreign subsidiaries. During the three months ended June 30, 2018 , the Company recorded approximately $25 million to income tax expense as an adjustment to the provisional amounts recorded as of December 31, 2017, primarily related to a reduction of our foreign tax credit as a result of recently issued regulatory guidance. The Company continues to refine its assessment through further analysis of certain aspects of the Tax Legislation and the recently issued guidance. Accordingly, the ultimate impact of the Tax Legislation may differ from these estimates due to its continued analysis or further regulatory guidance that may be issued. Aptiv PLC was a U.K. resident taxpayer, and became an Irish resident taxpayer in April 2018. As the Company is not a domestic corporation for U.S. federal income tax purposes, it is not subject to U.S. tax on remitted foreign earnings. Aptiv PLC was generally not subject to U.K. tax on the repatriation of foreign earnings and, as a result of its capital structure, believes it will also not be subject to Irish tax on the repatriation of foreign earnings. Cash paid or withheld for income taxes was $131 million and $126 million for the six months ended June 30, 2018 and 2017 , respectively. |
Shareholders' Equity And Net In
Shareholders' Equity And Net Income Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Shareholders' Equity and Net Income Per Share Note [Abstract] | |
Shareholders' Equity And Net Income Per Share | SHAREHOLDERS’ EQUITY AND NET INCOME PER SHARE Net Income Per Share Basic net income per share is computed by dividing net income attributable to Aptiv by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock method by dividing net income attributable to Aptiv by the diluted weighted average number of ordinary shares outstanding. For all periods presented, the calculation of diluted net income per share contemplates the dilutive impacts, if any, of the Company’s share-based compensation plans. Refer to Note 18. Share-Based Compensation for additional information. Weighted Average Shares The following table illustrates net income per share attributable to Aptiv and the weighted average shares outstanding used in calculating basic and diluted income per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions, except per share data) Numerator: Income from continuing operations $ 291 $ 297 $ 598 $ 517 Income from discontinued operations — 72 — 187 Net income attributable to Aptiv $ 291 $ 369 $ 598 $ 704 Denominator: Weighted average ordinary shares outstanding, basic 264.81 267.41 265.25 268.30 Dilutive shares related to restricted stock units ("RSUs") 0.67 0.62 0.71 0.48 Weighted average ordinary shares outstanding, including dilutive shares 265.48 268.03 265.96 268.78 Basic net income per share: Continuing operations $ 1.10 $ 1.11 $ 2.25 $ 1.92 Discontinued operations — 0.27 — 0.70 Basic net income per share attributable to Aptiv $ 1.10 $ 1.38 $ 2.25 $ 2.62 Diluted net income per share: Continuing operations $ 1.10 $ 1.11 $ 2.25 $ 1.92 Discontinued operations — 0.27 — 0.70 Diluted net income per share attributable to Aptiv $ 1.10 $ 1.38 $ 2.25 $ 2.62 Anti-dilutive securities share impact — — — — Share Repurchase Program In April 2016, the Board of Directors authorized a share repurchase program of up to $1.5 billion of ordinary shares, which commenced in September 2016 following the completion of the Company's $1.5 billion January 2015 share repurchase program. This share repurchase program provides for share purchases in the open market or in privately negotiated transactions, depending on share price, market conditions and other factors, as determined by the Company. A summary of the ordinary shares repurchased during the three and six months ended June 30, 2018 and 2017 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total number of shares repurchased 43,568 1,092,560 1,719,712 3,648,263 Average price paid per share $ 91.76 $ 86.92 $ 89.24 $ 78.93 Total (in millions) $ 4 $ 95 $ 153 $ 288 As of June 30, 2018 , approximately $836 million of share repurchases remained available under the April 2016 share repurchase program. During the period from July 1, 2018 to July 30, 2018, the Company repurchased an additional $6 million worth of shares pursuant to a trading plan with set trading instructions established by the Company. As a result, approximately $830 million of share repurchases remain available under the April 2016 share repurchase program. All repurchased shares were retired, and are reflected as a reduction of ordinary share capital for the par value of the shares, with the excess applied as reductions to additional paid-in-capital and retained earnings. Dividends The Company has declared and paid cash dividends per ordinary share during the periods presented as follows: Dividend Amount Per Share (in millions) 2018: Second quarter $ 0.22 $ 58 First quarter 0.22 59 Total $ 0.44 $ 117 2017: Fourth quarter $ 0.29 $ 77 Third quarter 0.29 77 Second quarter 0.29 78 First quarter 0.29 78 Total $ 1.16 $ 310 In addition, in July 2018, the Board of Directors declared a regular quarterly cash dividend of $0.22 per ordinary share, payable August 22, 2018 to shareholders of record at the close of business on August 8, 2018. Other On December 4, 2017 , Aptiv distributed the issued and outstanding ordinary shares of Delphi Technologies to the Company's shareholders. The Company distributed to its shareholders one ordinary share of Delphi Technologies for every three Aptiv ordinary shares outstanding as of November 22, 2017 , the record date for the distribution. Shareholders received cash in lieu of any fractional ordinary shares of Delphi Technologies. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) attributable to Aptiv (net of tax) for the three and six months ended June 30, 2018 and 2017 are shown below. Prior period other comprehensive income includes activity relating to discontinued operations. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Foreign currency translation adjustments: Balance at beginning of period $ (312 ) $ (714 ) $ (369 ) $ (799 ) Aggregate adjustment for the period (1) (185 ) 100 (128 ) 185 Balance at end of period (497 ) (614 ) (497 ) (614 ) Gains (losses) on derivatives: Balance at beginning of period (19 ) 28 4 (11 ) Other comprehensive income before reclassifications (net tax effect of $4, $5, $0 and $20) (8 ) 3 (26 ) 29 Reclassification to income (net tax effect of $0, $1, $1 and $10) (2 ) 1 (7 ) 14 Balance at end of period (29 ) 32 (29 ) 32 Pension and postretirement plans: Balance at beginning of period (105 ) (401 ) (106 ) (405 ) Other comprehensive income before reclassifications (net tax effect of $3, $1, $2 and $4) 6 (7 ) 3 (10 ) Reclassification to income (net tax effect of $1, $1, $1 and $3) 3 8 7 15 Balance at end of period (96 ) (400 ) (96 ) (400 ) Accumulated other comprehensive loss, end of period $ (622 ) $ (982 ) $ (622 ) $ (982 ) (1) Includes gains of $90 million and $53 million for the three and six months ended June 30, 2018 , and losses of $73 million and $103 million for the three and six months ended June 30, 2017 , respectively, related to non-derivative net investment hedges. Refer to Note 14. Derivatives and Hedging Activities for further description of these hedges. Reclassifications from accumulated other comprehensive income (loss) to income for the three and six months ended June 30, 2018 and 2017 were as follows: Reclassification Out of Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Components Three Months Ended June 30, Six Months Ended June 30, Affected Line Item in the Statement of Operations 2018 2017 2018 2017 (in millions) Gains (losses) on derivatives: Commodity derivatives $ 6 $ 2 $ 15 $ 3 Cost of sales Foreign currency derivatives (4 ) (4 ) (9 ) (27 ) Cost of sales 2 (2 ) 6 (24 ) Income before income taxes — 1 1 10 Income tax expense 2 (1 ) 7 (14 ) Net income — — — — Net income attributable to noncontrolling interest $ 2 $ (1 ) $ 7 $ (14 ) Net income attributable to Aptiv Pension and postretirement plans: Actuarial losses $ (4 ) $ (9 ) $ (8 ) $ (18 ) Other income (expense), net (1) (4 ) (9 ) (8 ) (18 ) Income before income taxes 1 1 1 3 Income tax expense (3 ) (8 ) (7 ) (15 ) Net income — — — — Net income attributable to noncontrolling interest $ (3 ) $ (8 ) $ (7 ) $ (15 ) Net income attributable to Aptiv Total reclassifications for the period $ (1 ) $ (9 ) $ — $ (29 ) (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 9. Pension Benefits for additional details). |
Derivatives And Hedging Activit
Derivatives And Hedging Activities | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Cash Flow Hedges Aptiv is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices and changes in interest rates, which may result in cash flow risks. To manage the volatility relating to these exposures, Aptiv aggregates the exposures on a consolidated basis to take advantage of natural offsets. For exposures that are not offset within its operations, Aptiv enters into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing derivative financial instruments for speculative purposes, and designation of derivative instruments is performed on a transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. Aptiv assesses the initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy. As of June 30, 2018 , the Company had the following outstanding notional amounts related to commodity and foreign currency forward and option contracts designated as cash flow hedges that were entered into to hedge forecasted exposures: Commodity Quantity Hedged Unit of Measure Notional Amount (in thousands) (in millions) Copper 70,508 pounds $ 220 Foreign Currency Quantity Hedged Unit of Measure Notional Amount (Approximate USD Equivalent) (in millions) Mexican Peso 12,157 MXN $ 600 Chinese Yuan Renminbi 2,098 RMB 315 Polish Zloty 420 PLN 110 New Turkish Lira 83 TRY 20 The Company had additional foreign currency forward contracts designated as cash flow hedges with notional amounts that individually amounted to less than $10 million . As of June 30, 2018 , Aptiv has entered into derivative instruments to hedge cash flows extending out to June 2020. Gains and losses on derivatives qualifying as cash flow hedges are recorded in other comprehensive income ("OCI"), to the extent that hedges are effective, until the underlying transactions are recognized in earnings. Unrealized amounts in accumulated OCI will fluctuate based on changes in the fair value of hedge derivative contracts at each reporting period. Net losses on cash flow hedges included in accumulated OCI as of June 30, 2018 were $20 million ( $7 million , net of tax). Of this total, approximately $12 million of losses are expected to be included in cost of sales within the next 12 months and $8 million of losses are expected to be included in cost of sales in subsequent periods. Cash flow hedges are discontinued when Aptiv determines it is no longer probable that the originally forecasted transactions will occur. The amount included in cost of sales related to hedge ineffectiveness was insignificant for the three and six months ended June 30, 2018 and 2017 . Cash flows from derivatives used to manage commodity and foreign exchange risks designated as cash flow hedges are classified as operating activities within the consolidated statement of cash flows. Net Investment Hedges The Company is also exposed to the risk that adverse changes in foreign currency exchange rates could impact its net investment in non-U.S. subsidiaries. To manage this risk, the Company designates certain qualifying derivative and non-derivative instruments, including foreign currency forward contracts and foreign currency-denominated debt, as net investment hedges of certain non-U.S. subsidiaries. The effective portion of the gains or losses on instruments designated as net investment hedges are recognized within OCI to offset changes in the value of the net investment in these foreign currency-denominated operations. Any ineffective portion of gains or losses on net investment hedges are reclassified to other income (expense), net within the consolidated statement of operations. Gains and losses reported in accumulated other comprehensive income (loss) are reclassified to earnings only when the related currency translation adjustments are required to be reclassified, usually upon sale or liquidation of the investment. Cash flows from derivatives designated as net investment hedges are classified as investing activities within the consolidated statement of cash flows. Since the first quarter of 2016, the Company has entered into a series of forward contracts, each of which have been designated as net investment hedges of the foreign currency exposure of the Company's investments in certain Chinese Yuan Renminbi ("RMB")-denominated subsidiaries. In December 2016, the Company entered into a forward contract with a notional amount of 1.8 billion RMB (approximately $265 million , using December 31, 2016 foreign currency rates), which matured in June 2017 , and the Company paid $12 million at settlement. In June 2017, the Company entered into a forward contract with a notional amount of 2.4 billion RMB (approximately $345 million , using June 30, 2017 foreign currency rates), which matured in December 2017 , and the Company paid $16 million at settlement. In December 2017, the Company entered into a forward contract with a notional amount of 1.9 billion RMB (approximately $290 million , using December 31, 2017 foreign currency rates), which matured in June 2018 , and the Company paid $10 million at settlement. In June 2018, the Company entered into a forward contract with a notional amount of 486 million RMB (approximately $75 million , using June 30, 2018 foreign currency rates), which matures in December 2018 . Refer to the tables below for details of the fair value recorded in the consolidated balance sheet and the effects recorded in the consolidated statement of comprehensive income related to these derivative instruments. The Company has designated the €700 million 2015 Euro-denominated Senior Notes and the €500 million 2016 Euro-denominated Senior Notes, as more fully described in Note 8. Debt, as net investment hedges of the foreign currency exposure of its investments in certain Euro-denominated subsidiaries. Due to changes in the value of the Euro-denominated debt instruments designated as net investment hedges, during the three and six months ended June 30, 2018 , $90 million and $53 million , respectively, of gains were recognized within the cumulative translation adjustment component of OCI. During the three and six months ended June 30, 2017 , $73 million and $103 million , respectively, of losses were recognized within the cumulative translation adjustment component of OCI. Cumulative losses included in accumulated OCI on these net investment hedges were $64 million as of June 30, 2018 and $117 million as of December 31, 2017 . There were no amounts reclassified or recognized for ineffectiveness during the three and six months ended June 30, 2018 or 2017 . Derivatives Not Designated as Hedges In certain occasions the Company enters into certain foreign currency and commodity contracts that are not designated as hedges. When hedge accounting is not applied to derivative contracts, gains and losses are recorded to other income (expense), net and cost of sales in the consolidated statement of operations. In conjunction with the acquisition of KUM, as more fully disclosed in Note 17. Acquisitions and Divestitures, in March 2018, the Company entered into forward contracts, requiring no initial net investment, with notional amounts totaling 559 billion South Korean Won ("KRW") (approximately $520 million using March 1, 2018 foreign currency rates) to hedge portions of the currency risk associated with the cash payment for the acquisition. Pursuant to the requirements of ASC 815, Derivatives and Hedging , the forwards did not qualify as hedges for accounting purposes, and therefore, changes in the fair value of the forwards were recognized in other income (expense), net. In conjunction with the closing of the acquisition, Aptiv settled the forward contracts in the second quarter of 2018 and received $4 million , which is reflected within investing activities from continuing operations in the consolidated statement of cash flows. During the three and six months ended June 30, 2018 , the change in fair value resulted in a pre-tax loss of $7 million and a pre-tax gain of $4 million , respectively, included within other income (expense), net in the consolidated statement of operations. Fair Value of Derivative Instruments in the Balance Sheet The fair value of derivative financial instruments recorded in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 are as follows: Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location June 30, Balance Sheet Location June 30, June 30, (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ 4 Accrued liabilities $ — Foreign currency derivatives* Other current assets 2 Other current assets 1 $ 1 Foreign currency derivatives* Accrued liabilities 3 Accrued liabilities 15 (12 ) Commodity derivatives Other long-term assets — Other long-term liabilities 3 Foreign currency derivatives* Other long-term assets 1 Other long-term assets 1 — Foreign currency derivatives* Other long-term liabilities — Other long-term liabilities 5 (5 ) Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets 2 Accrued liabilities — Total derivatives designated as hedges $ 12 $ 25 Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location December 31, Balance Sheet Location December 31, December 31, (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ 27 Accrued liabilities $ — Foreign currency derivatives* Other current assets 3 Other current assets — $ 3 Foreign currency derivatives* Accrued liabilities 7 Accrued liabilities 17 (10 ) Commodity derivatives Other long-term assets 8 Other long-term liabilities — Foreign currency derivatives* Other long-term liabilities — Other long-term liabilities 11 (11 ) Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets — Accrued liabilities 5 Total derivatives designated as hedges $ 45 $ 33 * Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts. The fair value of Aptiv’s derivative financial instruments was in a net liability position as of June 30, 2018 and a net asset position as of December 31, 2017 . Effect of Derivatives on the Statement of Operations and Statement of Comprehensive Income The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 (Loss) Gain Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ (2 ) $ 6 $ — Foreign currency derivatives (19 ) (4 ) — Derivatives designated as net investment hedges: Foreign currency derivatives 9 — — Total $ (12 ) $ 2 $ — Loss Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ (8 ) Total $ (8 ) The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the three months ended June 30, 2017 is as follows: Three Months Ended June 30, 2017 Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 2 $ 2 $ — Foreign currency derivatives 12 (4 ) — Derivatives designated as net investment hedges: Foreign currency derivatives (6 ) — — Total $ 8 $ (2 ) $ — Loss Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ (1 ) Total $ (1 ) The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the six months ended June 30, 2018 is as follows: Six Months Ended June 30, 2018 Loss Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ (19 ) $ 15 $ — Foreign currency derivatives (3 ) (9 ) — Derivatives designated as net investment hedges: Foreign currency derivatives (4 ) — — Total $ (26 ) $ 6 $ — Gain Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ 2 Total $ 2 The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the six months ended June 30, 2017 is as follows: Six Months Ended June 30, 2017 Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 11 $ 3 $ — Foreign currency derivatives 54 (27 ) — Derivatives designated as net investment hedges: Foreign currency derivatives (16 ) — — Total $ 49 $ (24 ) $ — Loss Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ (5 ) Total $ (5 ) The gain or loss reclassified from OCI into income for the effective portion of designated derivative instruments and the gain or loss recognized in income for the ineffective portion of designated derivative instruments excluded from effectiveness testing were recorded to other income (expense), net and cost of sales in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 . The gain or loss recognized in income for non-designated derivative instruments was recorded to other income (expense), net and cost of sales in the consolidated statements of operations for the three and six months ended June 30, 2018 and 2017 . |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Measurements on a Recurring Basis Derivative instruments —All derivative instruments are required to be reported on the balance sheet at fair value unless the transactions qualify and are designated as normal purchases or sales. Changes in fair value are reported currently through earnings unless they meet hedge accounting criteria. Aptiv’s derivative exposures are with counterparties with long-term investment grade credit ratings. Aptiv estimates the fair value of its derivative contracts using an income approach based on valuation techniques to convert future amounts to a single, discounted amount. Estimates of the fair value of foreign currency and commodity derivative instruments are determined using exchange traded prices and rates. Aptiv also considers the risk of non-performance in the estimation of fair value, and includes an adjustment for non-performance risk in the measure of fair value of derivative instruments. The non-performance risk adjustment reflects the credit default spread (“CDS”) applied to the net commodity by counterparty and foreign currency exposures by counterparty. When Aptiv is in a net derivative asset position, the counterparty CDS rates are applied to the net derivative asset position. When Aptiv is in a net derivative liability position, estimates of peer companies’ CDS rates are applied to the net derivative liability position. In certain instances where market data is not available, Aptiv uses management judgment to develop assumptions that are used to determine fair value. This could include situations of market illiquidity for a particular currency or commodity or where observable market data may be limited. In those situations, Aptiv generally surveys investment banks and/or brokers and utilizes the surveyed prices and rates in estimating fair value. As of June 30, 2018 and December 31, 2017 , Aptiv was in a net derivative liability position of $13 million and a net derivative asset position of $12 million , respectively, and no significant adjustments were recorded for nonperformance risk based on the application of peer companies’ CDS rates, evaluation of our own nonperformance risk and because Aptiv’s exposures were to counterparties with investment grade credit ratings. Refer to Note 14. Derivatives and Hedging Activities for further information regarding derivatives. Contingent consideration —As described in Note 17. Acquisitions and Divestitures, as of June 30, 2018 , additional contingent consideration may be earned as a result of Aptiv's acquisition agreements for nuTonomy, Inc. ("nuTonomy"), Movimento Group ("Movimento"), Control-Tec LLC ("Control-Tec") and Ottomatika, Inc. ("Ottomatika"). The liability for contingent consideration is estimated as of the date of the acquisition and is recorded as part of the purchase price, and is subsequently re-measured to fair value at each reporting date, based on a probability-weighted discounted cash flow analysis using a rate that reflects the uncertainty surrounding the expected outcomes, which the Company believes is appropriate and representative of market participant assumptions. The measurement of the liability for contingent consideration is based on significant inputs that are not observable in the market, and is therefore classified as a Level 3 measurement in accordance with ASU Topic 820-10-35. Examples of utilized unobservable inputs are estimated future earnings of the acquired businesses and applicable discount rates. The estimate of the liability may fluctuate if there are changes in the forecast of the acquired businesses' future earnings, as a result of actual earnings levels achieved or in the discount rates used to determine the present value of contingent future cash flows. As of June 30, 2018 , the range of periods in which the earn-out provisions may be achieved is from 2018 to 2020 . The Company regularly reviews these assumptions and makes adjustments to the fair value measurements as required by facts and circumstances. As of June 30, 2018 and December 31, 2017 , the liability for contingent consideration was $28 million (of which $3 million was classified within other current liabilities and $25 million was classified within other long-term liabilities) and $33 million (of which $7 million was classified within other current liabilities and $26 million was classified within other long-term liabilities). Adjustments to this liability for interest accretion are recognized in interest expense, and any other changes in the fair value of this liability are recognized within other income (expense), net in the consolidated statement of operations. The changes in the contingent consideration liability classified as a Level 3 measurement for the six months ended June 30, 2018 were as follows: Contingent Consideration Liability (in millions) Fair value at beginning of period $ 33 Additions — Payments (5 ) Interest accretion — Fair value at end of period $ 28 During the six months ended June 30, 2018 and 2017 , the Company paid $5 million and $20 million , respectively, of contingent consideration based on the actual level of earnings of the acquired businesses during the contractual earn-out period. As of June 30, 2018 and December 31, 2017 , Aptiv had the following assets measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of June 30, 2018: Commodity derivatives $ 4 $ — $ 4 $ — Foreign currency derivatives 3 — 3 — Total $ 7 $ — $ 7 $ — As of December 31, 2017: Commodity derivatives $ 35 $ — $ 35 $ — Foreign currency derivatives 3 — 3 — Total $ 38 $ — $ 38 $ — As of June 30, 2018 and December 31, 2017 , Aptiv had the following liabilities measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of June 30, 2018: Commodity derivatives $ 3 $ — $ 3 $ — Foreign currency derivatives 17 — 17 — Contingent consideration 28 — — 28 Total $ 48 $ — $ 20 $ 28 As of December 31, 2017: Foreign currency derivatives $ 26 $ — $ 26 $ — Contingent consideration 33 — — 33 Total $ 59 $ — $ 26 $ 33 Non-derivative financial instruments —Aptiv's non-derivative financial instruments include cash and cash equivalents, accounts and notes receivable, accounts payable, as well as debt, which consists of its accounts receivable factoring arrangement, capital leases and other debt issued by Aptiv’s non-U.S. subsidiaries, the Revolving Credit Facility, the Tranche A Term Loan and all series of outstanding senior notes. The fair value of debt is based on quoted market prices for instruments with public market data or significant other observable inputs for instruments without a quoted public market price (Level 2). As of June 30, 2018 and December 31, 2017 , total debt was recorded at $4,089 million and $4,149 million , respectively, and had estimated fair values of $4,068 million and $4,289 million , respectively. For all other financial instruments recorded at June 30, 2018 and December 31, 2017 , fair value approximates book value. Fair Value Measurements on a Nonrecurring Basis In addition to items that are measured at fair value on a recurring basis, Aptiv also has items in its balance sheet that are measured at fair value on a nonrecurring basis. As these items are not measured at fair value on a recurring basis, they are not included in the tables above. Nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis include certain long-lived assets, equity investments, intangible assets, asset retirement obligations, share-based compensation and liabilities for exit or disposal activities measured at fair value upon initial recognition. During the six months ended June 30, 2018 and 2017 , Aptiv recorded non-cash asset impairment charges totaling $1 million and $1 million , respectively, within cost of sales related to declines in the fair values of certain fixed assets. Fair value of long-lived assets is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved and a review of appraisals. As such, Aptiv has determined that the fair value measurements of long-lived assets fall in Level 3 of the fair value hierarchy. |
Other Income, Net
Other Income, Net | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | OTHER INCOME, NET Other income (expense), net included: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Interest income $ 7 $ 1 $ 12 $ 2 Components of net periodic benefit cost other than service cost (Note 9) (4 ) (5 ) (10 ) (9 ) Reserve for Unsecured Creditors litigation — 17 — (10 ) Costs associated with acquisitions (16 ) — (5 ) — Other, net 6 (5 ) 26 2 Other (expense) income, net $ (7 ) $ 8 $ 23 $ (15 ) During the three months ended June 30, 2018 , Aptiv incurred approximately $9 million in transaction costs related to the acquisition of KUM and, as further discussed in Note 14. Derivatives and Hedging Activities, recorded a loss of $7 million and a gain of $4 million during the three and six months ended June 30, 2018 , respectively, on forward contracts entered into in order to hedge portions of the currency risk associated with the cash payment for the acquisition of KUM, which are reflected within costs associated with acquisitions in the above table. Also, as further discussed in Note 21. Discontinued Operations, during the three and six months ended June 30, 2018 , Aptiv recorded $3 million and $6 million , respectively, for certain fees earned pursuant to the transition services agreement in connection with the Separation of the Company's former Powertrain Systems segment. As further discussed in Note 10. Commitments and Contingencies, during the three months ended March 31, 2017, Aptiv recorded an incremental reserve of $27 million as a result of a ruling in the Unsecured Creditors litigation related to pre-judgment interest, which was in addition to the Company's previously recorded reserve of $300 million to other expense during the year ended December 31, 2016 related to this matter. During the three months ended June 30, 2017 , Aptiv and the plaintiffs entered into an agreement to settle this matter for $310 million which Aptiv subsequently paid in July 2017. The $17 million portion of the Company's previously recorded reserve that was not included in the terms of the settlement agreement was recorded to other income during the three months ended June 30, 2017 . |
Acquisitions And Divestitures
Acquisitions And Divestitures | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Acquisition of KUM On June 14, 2018 , Aptiv acquired 100% of the equity interests of KUM, a specialized manufacturer of connectors for the automotive industry, for total consideration of $523 million . The results of operations of KUM are reported within the Signal and Power Solutions segment from the date of acquisition. The Company acquired KUM utilizing cash on hand. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the second quarter of 2018. The preliminary purchase price and related allocation to the acquired net assets of KUM based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 512 Debt and pension liabilities assumed 11 Total consideration, net of cash acquired $ 523 Property, plant and equipment $ 123 Intangible assets 110 Other assets, net 17 Identifiable net assets acquired 250 Goodwill resulting from purchase 273 Total purchase price allocation $ 523 Intangible assets primarily include amounts recognized for the fair value of customer-based assets, which will be amortized over their estimated useful lives of approximately 9 years. The estimated fair value of these assets was based on third-party valuations and management's estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce of KUM. The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding liabilities assumed, including, but not limited to, contingent liabilities, revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to property, plant and equipment and intangible assets, and certain tax attributes. The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of nuTonomy, Inc. On November 21, 2017 , Aptiv acquired 100% of the equity interests of nuTonomy, Inc. ("nuTonomy"), a leading provider of autonomous driving software and technology, for total consideration of up to $454 million . Of the total consideration, $284 million of the purchase price was paid at closing, subject to certain post-closing adjustments. An additional $109 million of the purchase price will vest to certain selling shareholders in annual installments over a three -year period from the acquisition date, subject to such shareholders' compliance with certain employment conditions. Of the $ 109 million , approximately $7 million is payable after one year and approximately $51 million is payable after each of the second and third years following the acquisition date. These remaining installments will be recorded as a component of cost of sales ratably over the respective installment period. Additionally, the total consideration includes a cash payment of up to $54 million contingent upon the achievement of certain performance metrics over a future three -year period. The range of the undiscounted amounts the Company could be required to pay under this arrangement is between $0 and $54 million . As of the closing date of the acquisition, the contingent consideration was assigned a fair value of approximately $24 million . Refer to Note 15. Fair Value of Financial Instruments for additional information regarding the measurement of the contingent consideration liability. The results of operations of nuTonomy are reported within the Advanced Safety and User Experience segment from the date of acquisition. The Company acquired nuTonomy utilizing cash on hand. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the fourth quarter of 2017. The purchase price and related allocation to the acquired net assets of nuTonomy based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 284 Purchase price, fair value of contingent consideration 24 Total purchase price, net of cash acquired $ 308 Intangible assets $ 102 Other liabilities, net (40 ) Identifiable net assets acquired 62 Goodwill resulting from purchase 246 Total purchase price allocation $ 308 Intangible assets include $102 million of in-process research and development, which will not be amortized, but tested for impairment until the completion or abandonment of the associated research and development efforts. The estimated fair value of these assets was based on third-party valuations and management's estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition from future growth and potential commercialization opportunities. The purchase price and related allocation are preliminary and could be revised as a result of adjustments made to the purchase price, additional information obtained regarding liabilities assumed, including, but not limited to, contingent liabilities, revisions of provisional estimates of fair values, including, but not limited to, the completion of independent appraisals and valuations related to property, plant and equipment and intangible assets, and certain tax attributes. The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of Movimento Group On January 3, 2017 , Aptiv acquired 100% of the equity interests of Movimento Group ("Movimento"), a leading provider of Over-the-Air software and data management for the automotive sector, for a purchase price of $40 million at closing and an additional cash payment of up to $10 million contingent upon the achievement of certain performance metrics over a future 2 -year period. The range of the undiscounted amounts the Company could be required to pay under this arrangement is between $0 and $10 million . As of the closing date of the acquisition, the contingent consideration was assigned a fair value of approximately $8 million . Refer to Note 15. Fair Value of Financial Instruments for additional information regarding the measurement of the contingent consideration liability. The results of operations of Movimento are reported within the Advanced Safety and User Experience segment from the date of acquisition. The Company acquired Movimento utilizing cash on hand. The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the first quarter of 2017. The purchase price and related allocation were finalized in the first quarter of 2018, and resulted in no adjustments from the amounts previously disclosed. The purchase price and related allocation to the acquired net assets of Movimento based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 40 Purchase price, fair value of contingent consideration 8 Total purchase price, net of cash acquired $ 48 Intangible assets $ 22 Other liabilities, net (2 ) Identifiable net assets acquired 20 Goodwill resulting from purchase 28 Total purchase price allocation $ 48 Intangible assets include $8 million recognized for the fair value of the acquired trade name, which has an estimated useful life of approximately 25 years, $4 million of customer-based and technology-related assets with estimated useful lives of approximately 7 years, and $10 million of in-process research and development, which will not be amortized, but tested for impairment until the completion or abandonment of the associated research and development efforts. The estimated fair value of these assets was based on third-party valuations and management's estimates, generally utilizing income and market approaches. The pro forma effects of this acquisition would not materially impact the Company's reported results for any period presented, and as a result no pro forma financial statements were presented. Acquisition of Winchester Interconnect In July 2018, Aptiv agreed to acquire Winchester Interconnect ("Winchester"), a leading provider of custom engineered interconnect solutions for harsh environment applications, for total consideration of approximately $650 million . The acquisition is subject to the satisfaction of customary closing conditions and the receipt of regulatory and other approvals, and is expected to close by the end of 2018. The Company expects to acquire Winchester primarily utilizing cash on hand. Upon completion, Winchester will become part of the Signal and Power Solutions segment. Technology Investments The Company has made technology investments in certain non-consolidated affiliates for ownership interests of less than 20%, which are accounted for in accordance with ASU 2016-01, as described in Note 2. Significant Accounting Policies. During the second quarter of 2017, the Company's Signal and Power Solutions segment made a $10 million investment in Valens Semiconductor Ltd., a leading provider of signal processing technology for high frequency data transmission of connected car content. During the first quarter of 2017, the Company's Advanced Safety and User Experience segment made a $15 million investment in Otonomo Technologies Ltd., the developer of a connected car data marketplace. As of June 30, 2018 , the Company had the following technology investments, which are classified within other long-term assets in the consolidated balance sheet: Investment Name Segment Investment Date Investment (in millions) Innoviz Technologies Advanced Safety and User Experience Q3 2017 $ 15 LeddarTech, Inc. Advanced Safety and User Experience Q3 2017 10 Valens Semiconductor Ltd. Signal and Power Solutions Q2 2017 10 Otonomo Technologies Ltd. Advanced Safety and User Experience Q1 2017 15 Quanergy Systems, Inc Advanced Safety and User Experience Q2 2015; Q1 2016 6 $ 56 |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Long Term Incentive Plan The Aptiv PLC Long-Term Incentive Plan, as amended and restated effective April 23, 2015 (the “PLC LTIP”), allows for the grant of awards of up to 25,665,448 ordinary shares for long-term compensation. The PLC LTIP is designed to align the interests of management and shareholders. The awards can be in the form of shares, options, stock appreciation rights, restricted stock, restricted stock units ("RSUs"), performance awards, and other share-based awards to the employees, directors, consultants and advisors of the Company. The Company has awarded annual long-term grants of RSUs under the PLC LTIP in each year from 2012 to 2018 in order to align management compensation with Aptiv's overall business strategy. The Company has competitive and market-appropriate ownership requirements. All of the RSUs granted under the PLC LTIP are eligible to receive dividend equivalents for any dividend paid from the grant date through the vesting date. Dividend equivalents are generally paid out in ordinary shares upon vesting of the underlying RSUs. Historical amounts disclosed within this note include amounts attributable to the Company's discontinued operations, unless otherwise noted, and for activity prior to December 4, 2017 represent awards based on shares of Delphi Automotive PLC. In connection with the Separation, in 2017 the Company made adjustments to the number of unvested RSUs with the intention of preserving the intrinsic value of the recipient's awards prior to the Separation. Accordingly, the number of RSUs underlying each unvested award outstanding as of the date of the Separation was multiplied by a factor of 1.17 , and the related grant date fair value was divided by a factor of 1.17 , which resulted in no increase in the intrinsic value of awards outstanding. The RSUs continue to vest in accordance with their original vesting period. These adjustments to the Company’s share-based compensation awards did not result in additional compensation expense. RSUs that were held by employees who transferred to Delphi Technologies in connection with the Separation were canceled and replaced by awards issued by Delphi Technologies. Employees remaining with the Company did not receive share-based compensation awards of Delphi Technologies as a result of the spin-off. Except for the conversion of awards, the material terms of the awards remained unchanged. Board of Director Awards On April 28, 2016, Aptiv granted 27,238 RSUs to the Board of Directors at a grant date fair value of approximately $2 million . The grant date fair value was determined based on the closing price of the Company's ordinary shares on April 28, 2016. The RSUs vested on April 26, 2017, and 26,580 ordinary shares, which included shares issued in connection with dividend equivalents, were issued to members of the Board of Directors at a fair value of approximately $2 million . 3,472 ordinary shares were withheld to cover the minimum withholding taxes. On April 27, 2017, Aptiv granted 26,782 RSUs to the Board of Directors at a grant date fair value of approximately $2 million . The grant date fair value was determined based on the closing price of the Company's ordinary shares on April 27, 2017. The RSUs vested on April 25, 2018, and 24,642 ordinary shares, which included shares issued in connection with dividend equivalents, were issued to members of the Board of Directors at a fair value of approximately $2 million . 2,649 ordinary shares were withheld to cover the minimum withholding taxes. On April 26, 2018, Aptiv granted 22,676 RSUs to the Board of Directors at a grant date fair value of approximately $2 million . The grant date fair value was determined based on the closing price of the Company's ordinary shares on April 26, 2018. The RSUs will vest on April 24, 2019, the day before the 2019 annual meeting of shareholders. Executive Awards Aptiv has made annual grants of RSUs to its executives in February of each year beginning in 2012. These awards include a time-based vesting portion and a performance-based vesting portion, as well as continuity awards in certain years. The time-based RSUs, which make up 25% of the awards for Aptiv’s officers and 50% for Aptiv’s other executives, vest ratably over three years beginning on the first anniversary of the grant date. The performance-based RSUs, which make up 75% of the awards for Aptiv’s officers and 50% for Aptiv's other executives, vest at the completion of a three-year performance period if certain targets are met. Each executive will receive between 0% and 200% of his or her target performance-based award based on the Company’s performance against established company-wide performance metrics, which are: Metric 2016 - 2018 Grants 2014 - 2015 Grants Average return on net assets (1) 50% 50% Cumulative net income 25% N/A Cumulative earnings per share (2) N/A 30% Relative total shareholder return (3) 25% 20% (1) Average return on net assets is measured by tax-affected operating income divided by average net working capital plus average net property, plant and equipment for each calendar year during the respective performance period. (2) Cumulative earnings per share is measured by net income attributable to Aptiv divided by the weighted average number of diluted shares outstanding for the respective three-year performance period. (3) Relative total shareholder return is measured by comparing the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the end of the performance period to the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the year preceding the grant, including dividends, and assessed against a comparable measure of competitor and peer group companies. The details of the executive grants were as follows: Grant Date RSUs Granted Grant Date Fair Value Time-Based Award Vesting Dates Performance-Based Award Vesting Date (in millions) February 2014 0.78 $ 53 Annually on anniversary of grant date, 2015 - 2017 December 31, 2016 February 2015 0.90 76 Annually on anniversary of grant date, 2016 - 2018 December 31, 2017 February 2016 0.71 48 Annually on anniversary of grant date, 2017 - 2019 December 31, 2018 February 2017 0.80 63 Annually on anniversary of grant date, 2018 - 2020 December 31, 2019 February 2018 0.63 61 Annually on anniversary of grant date, 2019 - 2021 December 31, 2020 Any new executives hired after the annual executive RSU grant date may be eligible to participate in the PLC LTIP. Any off cycle grants made for new hires are valued at their grant date fair value based on the closing price of the Company's ordinary shares on the date of such grant. The grant date fair value of the RSUs is determined based on the target number of awards issued, the closing price of the Company’s ordinary shares on the date of the grant of the award, including an estimate for forfeitures, and a contemporaneous valuation performed by an independent valuation specialist with respect to the relative total shareholder return awards. In February 2017, under the time-based vesting terms of the 2014, 2015 and 2016 grants, 248,008 ordinary shares were issued to Aptiv executives at a fair value of approximately $19 million , of which 88,807 ordinary shares were withheld to cover minimum withholding taxes. The performance-based RSUs associated with the 2014 grant vested at the completion of a three-year performance period on December 31, 2016, and in the first quarter of 2017, 797,210 ordinary shares were issued to executives at a fair value of approximately $60 million , of which 324,555 ordinary shares were withheld to cover minimum withholding taxes. In February 2018, under the time-based vesting terms of the 2015, 2016 and 2017 grants, 285,344 ordinary shares were issued to Aptiv executives at a fair value of approximately $26 million , of which 102,045 ordinary shares were withheld to cover minimum withholding taxes. The performance-based RSUs associated with the 2015 grant vested at the completion of a three-year performance period on December 31, 2017, and in the first quarter of 2018, 640,239 ordinary shares were issued to executives at a fair value of approximately $59 million , of which 240,483 ordinary shares were withheld to cover minimum withholding taxes. A summary of RSU activity, including award grants, vesting and forfeitures is provided below: RSUs Weighted Average Grant Date Fair Value (in thousands) Nonvested, January 1, 2018 1,807 $ 68.66 Granted 749 96.47 Vested (416 ) 66.37 Forfeited (72 ) 67.48 Nonvested, June 30, 2018 2,068 79.15 Aptiv recognized compensation expense from continuing operations of $14 million ( $12 million , net of tax) and $15 million ( $13 million , net of tax) based on the Company’s best estimate of ultimate performance against the respective targets during the three months ended June 30, 2018 and 2017 , respectively. Aptiv recognized compensation expense from continuing operations of $27 million ( $24 million , net of tax) and $28 million ( $24 million , net of tax) based on the Company’s best estimate of ultimate performance against the respective targets during the six months ended June 30, 2018 and 2017 , respectively. Aptiv will continue to recognize compensation expense, based on the grant date fair value of the awards applied to the Company’s best estimate of ultimate performance against the respective targets, over the requisite vesting periods of the awards. Based on the grant date fair value of the awards and the Company’s best estimate of ultimate performance against the respective targets as of June 30, 2018 , unrecognized compensation expense on a pre-tax basis of approximately $95 million is anticipated to be recognized over a weighted average period of approximately 2 years. For the six months ended June 30, 2018 and 2017 , respectively, approximately $35 million and $33 million of cash was paid and reflected as a financing activity in the statements of cash flows related to the minimum statutory tax withholding for vested RSUs. |
Supplemental Guarantor And Non-
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements [Abstract] | |
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements | SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Basis of Presentation Notes Issued by the Subsidiary Issuer As described in Note 8. Debt, Aptiv Corporation (the "Subsidiary Issuer/Guarantor"), a 100% owned subsidiary of Aptiv PLC (the "Parent"), issued the 2014 Senior Notes, which were registered under the Securities Act, and is the borrower of obligations under the Credit Agreement. The 2014 Senior Notes and obligations under the Credit Agreement are fully and unconditionally guaranteed by Aptiv PLC and certain of Aptiv PLC's direct and indirect subsidiary companies, which are directly or indirectly 100% owned by Aptiv PLC (the “Subsidiary Guarantors”), on a joint and several basis, subject to customary release provisions (other than in the case of Aptiv PLC). All other consolidated direct and indirect subsidiaries of Aptiv PLC are not subject to the guarantees (“Non-Guarantor Subsidiaries”). Notes Issued by the Parent As described in Note 8. Debt, Aptiv PLC issued the 2015 Senior Notes, the 2015 Euro-denominated Senior Notes, the 2016 Euro-denominated Senior Notes and the 2016 Senior Notes, each of which were registered under the Securities Act. Each series of these senior notes are fully and unconditionally guaranteed on a joint and several basis, subject to customary release provisions, by certain of Aptiv PLC's direct and indirect subsidiary companies (the “Subsidiary Guarantors”), and Aptiv Corporation, each of which are directly or indirectly 100% owned by Aptiv PLC. All other consolidated direct and indirect subsidiaries of Aptiv PLC are not subject to the guarantees (“Non-Guarantor Subsidiaries”). In lieu of providing separate audited financial statements for the Guarantors, the Company has included the accompanying condensed consolidating financial statements. These condensed consolidating financial statements are presented using the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Parent’s share of the subsidiary’s cumulative results of operations, capital contributions and distributions and other equity changes. The Non-Guarantor Subsidiaries are combined in the condensed consolidating financial statements. The principal elimination entries are to eliminate the investments in subsidiaries and intercompany balances and transactions. The historical presentation of the supplemental guarantor and non-guarantor condensed consolidating financial statements have been revised to be consistent with the presentation of the entities that comprise the structure of the Subsidiary Guarantors as of June 30, 2018. Statement of Operations Three Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 3,684 $ — $ 3,684 Operating expenses: Cost of sales — — — 2,958 — 2,958 Selling, general and administrative 19 — — 241 — 260 Amortization — — — 30 — 30 Restructuring — — — 15 — 15 Total operating expenses 19 — — 3,244 — 3,263 Operating (loss) income (19 ) — — 440 — 421 Interest (expense) income (33 ) (24 ) (47 ) (2 ) 70 (36 ) Other income (expense), net — 1 1 61 (70 ) (7 ) (Loss) income from continuing operations before income taxes and equity income (52 ) (23 ) (46 ) 499 — 378 Income tax benefit (expense) — — 10 (93 ) — (83 ) (Loss) income from continuing operations before equity income (52 ) (23 ) (36 ) 406 — 295 Equity in net income of affiliates — — — 8 — 8 Equity in net income (loss) of subsidiaries 343 253 (80 ) — (516 ) — Income (loss) from continuing operations 291 230 (116 ) 414 (516 ) 303 Income from discontinued operations, net of tax — — — — — — Net income (loss) 291 230 (116 ) 414 (516 ) 303 Net income attributable to noncontrolling interest — — — 12 — 12 Net income (loss) attributable to Aptiv $ 291 $ 230 $ (116 ) $ 402 $ (516 ) $ 291 Statement of Operations Six Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 7,314 $ — $ 7,314 Operating expenses: Cost of sales — — — 5,905 — 5,905 Selling, general and administrative 15 — — 504 — 519 Amortization — — — 60 — 60 Restructuring — — — 35 — 35 Total operating expenses 15 — — 6,504 — 6,519 Operating (loss) income (15 ) — — 810 — 795 Interest (expense) income (94 ) (31 ) (90 ) (3 ) 148 (70 ) Other income (expense), net — 1 1 169 (148 ) 23 (Loss) income from continuing operations before income taxes and equity income (109 ) (30 ) (89 ) 976 — 748 Income tax benefit (expense) — — 20 (162 ) — (142 ) (Loss) income from continuing operations before equity income (109 ) (30 ) (69 ) 814 — 606 Equity in net income of affiliates — — — 13 — 13 Equity in net income (loss) of subsidiaries 707 624 (88 ) — (1,243 ) — Income (loss) from continuing operations 598 594 (157 ) 827 (1,243 ) 619 Income from discontinued operations, net of tax — — — — — — Net income (loss) 598 594 (157 ) 827 (1,243 ) 619 Net income attributable to noncontrolling interest — — — 21 — 21 Net income (loss) attributable to Aptiv $ 598 $ 594 $ (157 ) $ 806 $ (1,243 ) $ 598 Statement of Operations Three Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 3,153 $ — $ 3,153 Operating expenses: Cost of sales — — — 2,498 — 2,498 Selling, general and administrative 29 — — 202 — 231 Amortization — — — 29 — 29 Restructuring — — — 31 — 31 Total operating expenses 29 — — 2,760 — 2,789 Operating (loss) income (29 ) — — 393 — 364 Interest (expense) income (63 ) (1 ) (43 ) (4 ) 76 (35 ) Other income (expense), net — 56 — 28 (76 ) 8 (Loss) income from continuing operations before income taxes and equity income (92 ) 55 (43 ) 417 — 337 Income tax benefit (expense) 1 — 16 (55 ) — (38 ) (Loss) income from continuing operations before equity income (91 ) 55 (27 ) 362 — 299 Equity in net income of affiliates — — — 7 — 7 Equity in net income (loss) of subsidiaries 460 405 49 — (914 ) — Income (loss) from continuing operations 369 460 22 369 (914 ) 306 Income from discontinued operations, net of tax — — — 80 — 80 Net income (loss) 369 460 22 449 (914 ) 386 Net income attributable to noncontrolling interest — — — 17 — 17 Net income (loss) attributable to Aptiv $ 369 $ 460 $ 22 $ 432 $ (914 ) $ 369 Statement of Operations Six Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 6,296 $ — $ 6,296 Operating expenses: Cost of sales — — — 5,042 — 5,042 Selling, general and administrative 35 — — 421 — 456 Amortization — — — 58 — 58 Restructuring — — — 83 — 83 Total operating expenses 35 — — 5,604 — 5,639 Operating (loss) income (35 ) — — 692 — 657 Interest (expense) income (122 ) (4 ) (86 ) (5 ) 149 (68 ) Other income (expense), net — 66 1 67 (149 ) (15 ) (Loss) income from continuing operations before income taxes and equity income (157 ) 62 (85 ) 754 — 574 Income tax benefit (expense) 1 — 31 (89 ) — (57 ) (Loss) income from continuing operations before equity income (156 ) 62 (54 ) 665 — 517 Equity in net income of affiliates — — — 18 — 18 Equity in net income (loss) of subsidiaries 860 798 19 — (1,677 ) — Income (loss) from continuing operations 704 860 (35 ) 683 (1,677 ) 535 Income from discontinued operations, net of tax — — — 203 — 203 Net income (loss) 704 860 (35 ) 886 (1,677 ) 738 Net income attributable to noncontrolling interest — — — 34 — 34 Net income (loss) attributable to Aptiv $ 704 $ 860 $ (35 ) $ 852 $ (1,677 ) $ 704 Statement of Comprehensive Income Three Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 291 $ 230 $ (116 ) $ 414 $ (516 ) $ 303 Other comprehensive income (loss): Currency translation adjustments 90 — — (283 ) — (193 ) Net change in unrecognized loss on derivative instruments, net of tax — — — (10 ) — (10 ) Employee benefit plans adjustment, net of tax — — — 9 — 9 Other comprehensive income (loss) 90 — — (284 ) — (194 ) Equity in other comprehensive (loss) income of subsidiaries (276 ) (125 ) (20 ) — 421 — Comprehensive income (loss) 105 105 (136 ) 130 (95 ) 109 Comprehensive income attributable to noncontrolling interests — — — 4 — 4 Comprehensive income (loss) attributable to Aptiv $ 105 $ 105 $ (136 ) $ 126 $ (95 ) $ 105 Statement of Comprehensive Income Six Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 598 $ 594 $ (157 ) $ 827 $ (1,243 ) $ 619 Other comprehensive income (loss): Currency translation adjustments 53 — — (185 ) — (132 ) Net change in unrecognized loss on derivative instruments, net of tax — — — (33 ) — (33 ) Employee benefit plans adjustment, net of tax — — — 10 — 10 Other comprehensive income (loss) 53 — — (208 ) — (155 ) Equity in other comprehensive (loss) income of subsidiaries (204 ) (147 ) 1 — 350 — Comprehensive income (loss) 447 447 (156 ) 619 (893 ) 464 Comprehensive income attributable to noncontrolling interests — — — 17 — 17 Comprehensive income (loss) attributable to Aptiv $ 447 $ 447 $ (156 ) $ 602 $ (893 ) $ 447 Statement of Comprehensive Income Three Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 369 $ 460 $ 22 $ 449 $ (914 ) $ 386 Other comprehensive (loss) income: Currency translation adjustments (73 ) — — 176 — 103 Net change in unrecognized gain on derivative instruments, net of tax — — — 4 — 4 Employee benefit plans adjustment, net of tax — — — 1 — 1 Other comprehensive (loss) income (73 ) — — 181 — 108 Equity in other comprehensive income (loss) of subsidiaries 178 14 13 — (205 ) — Comprehensive income (loss) 474 474 35 630 (1,119 ) 494 Comprehensive income attributable to noncontrolling interests — — — 20 — 20 Comprehensive income (loss) attributable to Aptiv $ 474 $ 474 $ 35 $ 610 $ (1,119 ) $ 474 Statement of Comprehensive Income Six Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 704 $ 860 $ (35 ) $ 886 $ (1,677 ) $ 738 Other comprehensive (loss) income: Currency translation adjustments (103 ) — — 292 — 189 Net change in unrecognized gain on derivative instruments, net of tax — — — 43 — 43 Employee benefit plans adjustment, net of tax — — — 5 — 5 Other comprehensive (loss) income (103 ) — — 340 — 237 Equity in other comprehensive income (loss) of subsidiaries 336 77 61 — (474 ) — Comprehensive income (loss) 937 937 26 1,226 (2,151 ) 975 Comprehensive income attributable to noncontrolling interests — — — 38 — 38 Comprehensive income (loss) attributable to Aptiv $ 937 $ 937 $ 26 $ 1,188 $ (2,151 ) $ 937 Balance Sheet as of June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ 2 $ — $ — $ 968 $ — $ 970 Restricted cash — — — 1 — 1 Accounts receivable, net — — — 2,598 — 2,598 Intercompany receivables, current 6 15 2,088 3,884 (5,993 ) — Inventories — — — 1,265 — 1,265 Other current assets — — — 506 — 506 Total current assets 8 15 2,088 9,222 (5,993 ) 5,340 Long-term assets: Intercompany receivables, long-term — — 768 1,432 (2,200 ) — Property, net — — — 2,972 — 2,972 Investments in affiliates — — — 99 — 99 Investments in subsidiaries 6,606 10,408 2,012 — (19,026 ) — Intangible assets, net — — — 3,402 — 3,402 Other long-term assets 60 — 7 436 — 503 Total long-term assets 6,666 10,408 2,787 8,341 (21,226 ) 6,976 Total assets $ 6,674 $ 10,423 $ 4,875 $ 17,563 $ (27,219 ) $ 12,316 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 18 $ 4 $ — $ 22 Accounts payable — — — 2,307 — 2,307 Intercompany payables, current 151 4,307 1,535 — (5,993 ) — Accrued liabilities 35 — 10 1,064 — 1,109 Total current liabilities 186 4,307 1,563 3,375 (5,993 ) 3,438 Long-term liabilities: Long-term debt 2,965 — 1,069 33 — 4,067 Intercompany payables, long-term — — 1,334 866 (2,200 ) — Pension benefit obligations — — — 432 — 432 Other long-term liabilities — — — 621 — 621 Total long-term liabilities 2,965 — 2,403 1,952 (2,200 ) 5,120 Total liabilities 3,151 4,307 3,966 5,327 (8,193 ) 8,558 Total Aptiv shareholders’ equity 3,523 6,116 909 12,001 (19,026 ) 3,523 Noncontrolling interest — — — 235 — 235 Total shareholders’ equity 3,523 6,116 909 12,236 (19,026 ) 3,758 Total liabilities and shareholders’ equity $ 6,674 $ 10,423 $ 4,875 $ 17,563 $ (27,219 ) $ 12,316 Balance Sheet as of December 31, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ 1 $ — $ — $ 1,595 $ — $ 1,596 Restricted cash — — — 1 — 1 Accounts receivable, net — — — 2,440 — 2,440 Intercompany receivables, current 50 16 82 9,867 (10,015 ) — Inventories — — — 1,083 — 1,083 Other current assets — — — 521 — 521 Total current assets 51 16 82 15,507 (10,015 ) 5,641 Long-term assets: Intercompany receivables, long-term — — 768 1,366 (2,134 ) — Property, net — — — 2,804 — 2,804 Investments in affiliates — — — 91 — 91 Investments in subsidiaries 11,987 13,707 3,416 — (29,110 ) — Intangible assets, net — — — 3,163 — 3,163 Other long-term assets 60 — 8 402 — 470 Total long-term assets 12,047 13,707 4,192 7,826 (31,244 ) 6,528 Total assets $ 12,098 $ 13,723 $ 4,274 $ 23,333 $ (41,259 ) $ 12,169 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 13 $ 4 $ — $ 17 Accounts payable 2 — — 2,225 — 2,227 Intercompany payables, current 5,689 1,736 1,032 1,558 (10,015 ) — Accrued liabilities 91 — 10 1,195 — 1,296 Total current liabilities 5,782 1,736 1,055 4,982 (10,015 ) 3,540 Long-term liabilities: Long-term debt 3,017 — 1,078 37 — 4,132 Intercompany payables, long-term — — 1,297 837 (2,134 ) — Pension benefit obligations — — — 454 — 454 Other long-term liabilities — — — 526 — 526 Total long-term liabilities 3,017 — 2,375 1,854 (2,134 ) 5,112 Total liabilities 8,799 1,736 3,430 6,836 (12,149 ) 8,652 Total Aptiv shareholders’ equity 3,299 11,987 844 16,279 (29,110 ) 3,299 Noncontrolling interest — — — 218 — 218 Total shareholders’ equity 3,299 11,987 844 16,497 (29,110 ) 3,517 Total liabilities and shareholders’ equity $ 12,098 $ 13,723 $ 4,274 $ 23,333 $ (41,259 ) $ 12,169 Statement of Cash Flows for the Six Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net cash (used in) provided by operating activities from continuing operations $ (91 ) $ — $ — $ 843 $ — $ 752 Net cash used in operating activities from discontinued operations — — — (52 ) — (52 ) Net cash (used in) provided by operating activities (91 ) — — 791 — 700 Cash flows from investing activities: Capital expenditures — — — (449 ) — (449 ) Proceeds from sale of property / investments — — — 6 — 6 Cost of business acquisitions, net of cash acquired — — — (512 ) — (512 ) Return of investment from subsidiaries 5,879 4,971 — — (10,850 ) — Settlement of derivatives — — — (6 ) — (6 ) Loans to affiliates — — — (2,985 ) 2,985 — Repayments of loans from affiliates — — — 7,598 (7,598 ) — Net cash provided by (used in) investing activities from continuing operations 5,879 4,971 — 3,652 (15,463 ) (961 ) Net cash provided by investing activities from discontinued operations — — — — — — Net cash provided by (used in) investing activities 5,879 4,971 — 3,652 (15,463 ) (961 ) Cash flows from financing activities: Net repayments under other short-term debt agreements — — — (15 ) — (15 ) Contingent consideration and deferred acquisition purchase price payments — — — (5 ) — (5 ) Proceeds from borrowings from affiliates 358 2,627 — — (2,985 ) — Payments on borrowings from affiliates (5,879 ) (1,719 ) — — 7,598 — Dividends paid to affiliates — (5,879 ) — (4,971 ) 10,850 — Repurchase of ordinary shares (149 ) — — — — (149 ) Distribution of cash dividends (117 ) — — — — (117 ) Taxes withheld and paid on employees' restricted share awards — — — (35 ) — (35 ) Net cash (used in) provided by financing activities (5,787 ) (4,971 ) — (5,026 ) 15,463 (321 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash — — — (44 ) — (44 ) Increase (decrease) in cash, cash equivalents and restricted cash 1 — — (627 ) — (626 ) Cash, cash equivalents and restricted cash at beginning of period 1 — — 1,596 — 1,597 Cash, cash equivalents and restricted cash at end of period $ 2 $ — $ — $ 969 $ — $ 971 Cash, cash equivalents and restricted cash of discontinued operations $ — $ — $ — $ — $ — $ — Cash, cash equivalents and restricted cash of continuing operations $ 2 $ — $ — $ 969 $ — $ 971 Statement of Cash Flows for the Six Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net cash (used in) provided by operating activities from continuing operations $ (35 ) $ 26 $ — $ 681 $ — $ 672 Net cash provided by operating activities from discontinued operations — — — 217 — 217 Net cash (used in) provided by operating activities (35 ) 26 — 898 — 889 Cash flows from investing activities: Capital expenditures — — — (311 ) — (311 ) Proceeds from sale of property / investments — — — 2 — 2 Cost of business acquisitions, net of cash acquired — — — (40 ) — (40 ) Cost of technology investments — — — (25 ) — (25 ) Settlement of derivatives — — — (12 ) — (12 ) Loans to affiliates — (26 ) — (452 ) 478 — Net cash (used in) provided by investing activities from continuing operations — (26 ) — (838 ) 478 (386 ) Net cash used in investing activities from discontinued operations — — — (77 ) — (77 ) Net cash (used in) provided by investing activities — (26 ) — (915 ) 478 (463 ) Cash flows from financing activities: Net repayments under other short-term debt agreements — — — (5 ) — (5 ) Contingent consideration and deferred acquisition purchase price payments — — — (20 ) — (20 ) Dividend payments of consolidated affiliates to minority shareholders — — — (10 ) — (10 ) Proceeds from borrowings from affiliates 478 — — — (478 ) — Repurchase of ordinary shares (289 ) — — — — (289 ) Distribution of cash dividends (156 ) — — — — (156 ) Taxes withheld and paid on employees' restricted share awards — — — (33 ) — (33 ) Net cash provided by (used in) financing activities 33 — — (68 ) (478 ) (513 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash — — — 41 — 41 Decrease in cash, cash equivalents and restricted cash (2 ) — — (44 ) — (46 ) Cash, cash equivalents and restricted cash at beginning of period 2 — — 837 — 839 Cash, cash equivalents and restricted cash at end of period $ — $ — $ — $ 793 $ — $ 793 Cash, cash equivalents and restricted cash of discontinued operations $ — $ — $ — $ 78 $ — $ 78 Cash, cash equivalents and restricted cash of continuing operations $ — $ — $ — $ 715 $ — $ 715 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2018 | |
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 component and systems integration expertise in infotainment and connectivity, body controls and security systems, displays and active and passive safety electronics, autonomous driving software and technologies, as well as advanced development of software. • 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, equity income (loss), net of tax, income (loss) from discontinued operations, net of tax, 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, gains (losses) on business divestitures and deferred compensation related to acquisitions (“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. As described in Note 21. Discontinued Operations, the Company's previously reported Powertrain Systems segment has been classified as discontinued operations for all periods presented. Certain original equipment service businesses that were previously included within the Powertrain Systems segment but which were not included in the spin-off, are reported in continuing operations and have been reclassified within the Advanced Safety and User Experience and Signal and Power Solutions segments for all periods presented. No amounts for shared general and administrative operating expense or interest expense were allocated to discontinued operations. Included below are sales and operating data for Aptiv’s segments for the three and six months ended June 30, 2018 and 2017 . Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Three Months Ended June 30, 2018: Net sales $ 2,650 $ 1,044 $ (10 ) $ 3,684 Depreciation & amortization $ 118 $ 38 $ — $ 156 Adjusted operating income $ 386 $ 88 $ — $ 474 Operating income $ 357 $ 64 $ — $ 421 Equity income, net of tax $ 8 $ — $ — $ 8 Net income attributable to noncontrolling interest $ 12 $ — $ — $ 12 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Three Months Ended June 30, 2017: Net sales $ 2,346 $ 823 $ (16 ) $ 3,153 Depreciation & amortization $ 105 $ 25 $ — $ 130 Adjusted operating income $ 312 $ 86 $ — $ 398 Operating income $ 296 $ 68 $ — $ 364 Equity income, net of tax $ 7 $ — $ — $ 7 Net income attributable to noncontrolling interest $ 9 $ — $ — $ 9 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Six Months Ended June 30, 2018: Net sales $ 5,267 $ 2,076 $ (29 ) $ 7,314 Depreciation & amortization $ 237 $ 74 $ — $ 311 Adjusted operating income $ 737 $ 164 $ — $ 901 Operating income $ 679 $ 116 $ — $ 795 Equity income, net of tax $ 13 $ — $ — $ 13 Net income attributable to noncontrolling interest $ 21 $ — $ — $ 21 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Six Months Ended June 30, 2017: Net sales $ 4,688 $ 1,644 $ (36 ) $ 6,296 Depreciation & amortization $ 207 $ 49 $ — $ 256 Adjusted operating income $ 621 $ 129 $ — $ 750 Operating income $ 587 $ 70 $ — $ 657 Equity income, net of tax $ 18 $ — $ — $ 18 Net income attributable to noncontrolling interest $ 18 $ — $ — $ 18 (1) Eliminations and Other includes the elimination of inter-segment transactions. The reconciliation of Adjusted Operating Income to Operating Income includes, as applicable, 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, gains (losses) on business divestitures and deferred compensation related to acquisitions. The reconciliation of Adjusted Operating Income to net income attributable to Aptiv for the three and six months ended June 30, 2018 and 2017 are as follows: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Three Months Ended June 30, 2018: Adjusted operating income $ 386 $ 88 $ — $ 474 Restructuring (11 ) (4 ) — (15 ) Other acquisition and portfolio project costs (17 ) (5 ) — (22 ) Asset impairments (1 ) — — (1 ) Deferred compensation related to nuTonomy acquisition — (15 ) — (15 ) Operating income $ 357 $ 64 $ — 421 Interest expense (36 ) Other expense, net (7 ) Income from continuing operations before income taxes and equity income 378 Income tax expense (83 ) Equity income, net of tax 8 Income from continuing operations 303 Income from discontinued operations, net of tax — Net income 303 Net income attributable to noncontrolling interest 12 Net income attributable to Aptiv $ 291 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Three Months Ended June 30, 2017: Adjusted operating income $ 312 $ 86 $ — $ 398 Restructuring (14 ) (17 ) — (31 ) Other acquisition and portfolio project costs (2 ) (1 ) — (3 ) Operating income $ 296 $ 68 $ — 364 Interest expense (35 ) Other income, net 8 Income from continuing operations before income taxes and equity income 337 Income tax expense (38 ) Equity income, net of tax 7 Income from continuing operations 306 Income from discontinued operations, net of tax 80 Net income 386 Net income attributable to noncontrolling interest 17 Net income attributable to Aptiv $ 369 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Six Months Ended June 30, 2018: Adjusted operating income $ 737 $ 164 $ — $ 901 Restructuring (29 ) (6 ) — (35 ) Other acquisition and portfolio project costs (28 ) (13 ) — (41 ) Asset impairments (1 ) — — (1 ) Deferred compensation related to nuTonomy acquisition — (29 ) — (29 ) Operating income $ 679 $ 116 $ — 795 Interest expense (70 ) Other income, net 23 Income from continuing operations before income taxes and equity income 748 Income tax expense (142 ) Equity income, net of tax 13 Income from continuing operations 619 Income from discontinued operations, net of tax — Net income 619 Net income attributable to noncontrolling interest 21 Net income attributable to Aptiv $ 598 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Six Months Ended June 30, 2017: Adjusted operating income $ 621 $ 129 $ — $ 750 Restructuring (27 ) (56 ) — (83 ) Other acquisition and portfolio project costs (7 ) (2 ) — (9 ) Asset impairments — (1 ) — (1 ) Operating income $ 587 $ 70 $ — 657 Interest expense (68 ) Other expense, net (15 ) Income from continuing operations before income taxes and equity income 574 Income tax expense (57 ) Equity income, net of tax 18 Income from continuing operations 535 Income from discontinued operations, net of tax 203 Net income 738 Net income attributable to noncontrolling interest 34 Net income attributable to Aptiv $ 704 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Spin-Off of Delphi Technologies On December 4, 2017 , the Company completed the Separation of its former Powertrain Systems segment by distributing to Aptiv shareholders on a pro rata basis all of the issued and outstanding ordinary shares of Delphi Technologies PLC (“Delphi Technologies”), a public limited company formed to hold the spun-off business. To effect the Separation, the Company distributed to its shareholders one ordinary share of Delphi Technologies for every three Aptiv ordinary shares outstanding as of November 22, 2017 , the record date for the distribution. Shareholders received cash in lieu of any fractional ordinary shares of Delphi Technologies. Following the Separation, Delphi Technologies is now an independent public company. Aptiv did not retain any equity or other interests in Delphi Technologies. On December 4, 2017 , pursuant to the Separation and Distribution Agreement, the Company transferred to Delphi Technologies the assets and liabilities that comprised Delphi Technologies’ business. The Company received a dividend of approximately $1,148 million from Delphi Technologies in connection with the Separation. Delphi Technologies financed this dividend through the issuance of approximately $1.55 billion of debt, consisting of a senior secured five-year $750 million term loan facility that was issued upon the spin-off and $800 million aggregate principal amount of 5.00% senior unsecured notes due 2025 that were issued in September 2017 (collectively, the "Delphi Technologies Debt"). In connection with the Separation, the Delphi Technologies Debt was transferred to Delphi Technologies and is no longer reflected in the Company’s consolidated financial statements. Also in connection with the Separation, the Company received $180 million in cash from Delphi Technologies pursuant to the Tax Matters Agreement. The requirements for the presentation of Delphi Technologies as a discontinued operation were met when the Separation was completed. Accordingly, the accompanying consolidated financial statements reflect this business as a discontinued operation for all periods presented through the Distribution Date. Operations related to certain original equipment service businesses previously included within the Company's Powertrain Systems segment, but which were not included in the spin-off, are reported in continuing operations and have been reclassified within the Advanced Safety and User Experience and Signal and Power Solutions segments for all periods presented. No amounts for shared general and administrative expense or interest expense were allocated to discontinued operations. Aptiv has not had significant continuing involvement with the spun-off Powertrain Systems business following the closing of the transaction. In connection with the Separation, Aptiv and Delphi Technologies 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, a Transition Services Agreement, a Tax Matters Agreement, an Employee Matters Agreement and Contract Manufacturing Services Arrangements. The transition services primarily involve Aptiv providing certain services to Delphi Technologies related to information technology and human resource infrastructure for terms of up to 24 months following the Separation. Aptiv recorded $3 million and $6 million , respectively, to other income (expense), net during the three and six months ended June 30, 2018 for certain fees earned pursuant to the Transition Services Agreement. As part of the near-term transition related to these agreements, Aptiv has recorded certain short-term assets and liabilities within the consolidated balance sheets as of June 30, 2018 and December 31, 2017 . The Company has recorded $103 million and $123 million , respectively, in other current assets related to accounts receivable from customers that it will collect on behalf of Delphi Technologies, which will be remitted to Delphi Technologies, and $60 million and $132 million , respectively, in accrued liabilities related to accounts payable to outside suppliers that it will remit on behalf of Delphi Technologies, which will be reimbursed by Delphi Technologies. The changes in these short-term assets and liabilities are reflected within operating activities from discontinued operations in the consolidated statement of cash flows. As a result of the Separation, the Company has separated its defined benefit pension and other post-employment benefit plans, and adjusted its employee share-based compensation awards. See Note 9. Pension Benefits and Note 18. Share-Based Compensation, respectively, for additional information. As a result of the completion of the Separation on December 4, 2017 , there were no assets or liabilities of the discontinued operation as of June 30, 2018 or December 31, 2017 . A reconciliation of the major classes of line items constituting pre-tax profit or loss of discontinued operations to 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, 2017 2017 (in millions) Net sales $ 1,165 $ 2,314 Cost of sales 921 1,822 Selling, general and administrative 70 133 Amortization 4 8 Restructuring 66 76 Other expense items that are not major, net — 6 Income from discontinued operations before income taxes and equity income 104 269 Income tax expense on discontinued operations (24 ) (66 ) Income from discontinued operations, net of tax 80 203 Income from discontinued operations attributable to noncontrolling interests 8 16 Net income from discontinued operations attributable to Aptiv $ 72 $ 187 Income from discontinued operations before income taxes attributable to Aptiv was $95 million and $250 million for the three and six months ended June 30, 2017 , respectively, which includes $1 million and $3 million , respectively, of income tax expense attributable to noncontrolling interests. |
Revenue Revenue
Revenue Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue [Abstract] | |
Revenue | REVENUE In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Aptiv adopted this guidance in the first quarter of 2018 using the modified retrospective method. In accordance with the standard, revenue is measured based on consideration specified in a contract with a customer. Customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. From time to time, Aptiv enters into pricing agreements with its customers that provide for price reductions, some of which are conditional upon achieving certain joint cost savings targets. In these instances, revenue is recognized based on the agreed-upon price at the time of shipment. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by Aptiv from a customer are excluded from revenue. Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in cost of sales. 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 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. Aptiv recognizes revenue for production parts at a point in time as title transfers to the customer. 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 three and six months ended June 30, 2018 and 2017 . Information concerning geographic market reflects the manufacturing location. For the Three Months Ended June 30, 2018: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 1,072 $ 344 $ — $ 1,416 Europe, Middle East & Africa 804 433 (4 ) 1,233 Asia Pacific 707 266 (6 ) 967 South America 67 1 — 68 Total net sales $ 2,650 $ 1,044 $ (10 ) $ 3,684 For the Three Months Ended June 30, 2017: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 939 $ 286 $ (2 ) $ 1,223 Europe, Middle East & Africa 731 332 (5 ) 1,058 Asia Pacific 609 205 (9 ) 805 South America 67 — — 67 Total net sales $ 2,346 $ 823 $ (16 ) $ 3,153 For the Six Months Ended June 30, 2018: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 2,092 $ 679 $ (4 ) $ 2,767 Europe, Middle East & Africa 1,641 870 (9 ) 2,502 Asia Pacific 1,394 525 (16 ) 1,903 South America 140 2 — 142 Total net sales $ 5,267 $ 2,076 $ (29 ) $ 7,314 For the Six Months Ended June 30, 2017: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 1,894 $ 593 $ (6 ) $ 2,481 Europe, Middle East & Africa 1,446 655 (12 ) 2,089 Asia Pacific 1,220 394 (18 ) 1,596 South America 128 2 — 130 Total net sales $ 4,688 $ 1,644 $ (36 ) $ 6,296 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 June 30, 2018 or December 31, 2017 . 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 and future business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. Certain of these payments 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 June 30, 2018 and December 31, 2017 , Aptiv has recorded $56 million (of which $8 million was classified within other current assets and $48 million was classified within other long-term assets) and $36 million (of which $5 million was classified within other current assets and $31 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 $1 million and $1 million for the three months ended June 30, 2018 and 2017 , respectively, and $2 million and $2 million for the six months ended June 30, 2018 and 2017 , respectively. |
Significant Accounting Polici30
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy | Consolidation —The consolidated financial statements include the accounts of Aptiv and U.S. and non-U.S. subsidiaries in which Aptiv holds a controlling financial or management interest and variable interest entities of which Aptiv has determined that it is the primary beneficiary. Aptiv’s share of the earnings or losses of non-controlled affiliates over which Aptiv exercises significant influence (generally a 20% to 50% ownership interest) is included in the consolidated operating results using the equity method of accounting. When Aptiv does not have the ability to exercise significant influence (generally when ownership interest is less than 20%), investments in non-consolidated affiliates are accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , and are measured at cost, less impairments, adjusted for observable price changes. All significant intercompany transactions and balances between consolidated Aptiv businesses have been eliminated. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis. If the Company determines that such a decline has occurred, an impairment loss is recorded, which is measured as the difference between carrying value and estimated fair value. Estimated fair value is generally determined using an income approach based on discounted cash flows or negotiated transaction values. Investments in non-consolidated affiliates totaled $56 million and $56 million as of June 30, 2018 and December 31, 2017 , respectively, and are classified within other long-term assets in the consolidated balance sheet. |
Use of Estimates, Policy | Use of estimates —Preparation of consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions that affect amounts reported therein. Generally, matters subject to estimation and judgment include amounts related to accounts receivable realization, inventory obsolescence, asset impairments, useful lives of intangible and fixed assets, deferred tax asset valuation allowances, income taxes, pension benefit plan assumptions, accruals related to litigation, warranty costs, environmental remediation costs, contingent consideration arrangements, worker’s compensation accruals and healthcare accruals. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be based upon amounts that differ from those estimates. |
Revenue Recognition, Policy | Revenue recognition —Beginning in the first quarter of 2018, Aptiv recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers . Refer to Note 22. Revenue for additional information regarding the Company's revenue recognition policies. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which requires recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Aptiv adopted this guidance in the first quarter of 2018 using the modified retrospective method. In accordance with the standard, revenue is measured based on consideration specified in a contract with a customer. Customer contracts generally are represented by a combination of a current purchase order and a current production schedule issued by the customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. From time to time, Aptiv enters into pricing agreements with its customers that provide for price reductions, some of which are conditional upon achieving certain joint cost savings targets. In these instances, revenue is recognized based on the agreed-upon price at the time of shipment. Sales incentives and allowances are recognized as a reduction to revenue at the time of the related sale. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by Aptiv from a customer are excluded from revenue. Shipping and handling fees billed to customers are included in net sales, while costs of shipping and handling are included in cost of sales. 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 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. Aptiv recognizes revenue for production parts at a point in time as title transfers to the customer. 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. |
Net Income Per Share, Policy | Net income per share —Basic net income per share is computed by dividing net income attributable to Aptiv by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock method by dividing net income attributable to Aptiv by the diluted weighted average number of ordinary shares outstanding. Unless otherwise noted, share and per share amounts included in these notes are on a diluted basis. Refer to Note 12. Shareholders’ Equity and Net Income Per Share for additional information including the calculation of basic and diluted net income per share. Basic net income per share is computed by dividing net income attributable to Aptiv by the weighted average number of ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all potentially dilutive securities from the date of issuance and is computed using the treasury stock method by dividing net income attributable to Aptiv by the diluted weighted average number of ordinary shares outstanding. For all periods presented, the calculation of diluted net income per share contemplates the dilutive impacts, if any, of the Company’s share-based compensation plans. Refer to Note 18. Share-Based Compensation for additional information. |
Cash and Cash Equivalents, Policy | Cash and cash equivalents —Cash and cash equivalents are defined as short-term, highly liquid investments with original maturities of three months or less. |
Transfers and Servicing of Financial Assets, Policy | Accounts receivable —Aptiv enters into agreements to sell certain of its accounts receivable, primarily in Europe. Sales of receivables are accounted for in accordance with FASB Accounting Standards Codification ("ASC") Topic 860, Transfers and Servicing ("ASC 860"). Agreements which result in true sales of the transferred receivables, as defined in ASC 860, which occur when receivables are transferred without recourse to the Company, are excluded from amounts reported in the consolidated balance sheets. Cash proceeds received from such sales are included in operating cash flows. Agreements that allow Aptiv to maintain effective control over the transferred receivables and which do not qualify as a sale, as defined in ASC 860, are accounted for as secured borrowings and recorded in the consolidated balance sheets within accounts receivable, net and short-term debt. The expenses associated with receivables factoring are recorded in the consolidated statements of operations within interest expense. |
Intangible Assets, Policy | Intangible assets —Intangible assets were $1,245 million and $1,219 million as of June 30, 2018 and December 31, 2017 , respectively. Aptiv amortizes definite-lived intangible assets over their estimated useful lives. Aptiv has definite-lived intangible assets related to patents and developed technology, customer relationships and trade names. Indefinite-lived in-process research and development intangible assets are not amortized, but are tested for impairment annually, or more frequently when indicators of potential impairment exist, until the completion or abandonment of the associated research and development efforts. Upon completion of the projects, the assets will be amortized over the expected economic life of the asset, which will be determined on that date. Should the project be determined to be abandoned, and if the asset developed has no alternative use, the full value of the asset will be charged to expense. The Company also has intangible assets related to acquired trade names that are classified as indefinite-lived when there are no foreseeable limits on the periods of time over which they are expected to contribute cash flows. These indefinite-lived trade name assets are tested for impairment annually, or more frequently when indicators of potential impairment exist. Costs to renew or extend the term of acquired intangible assets are recognized as expense as incurred. Amortization expense was $30 million and $60 million for the three and six months ended June 30, 2018 and $29 million and $58 million and for the three and six months ended June 30, 2017 , respectively. |
Goodwill, Policy | Goodwill —Goodwill is the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations. The Company tests goodwill for impairment annually in the fourth quarter, or more frequently when indications of potential impairment exist. The Company monitors the existence of potential impairment indicators throughout the fiscal year. The Company tests for goodwill impairment at the reporting unit level. Our reporting units are the components of operating segments which constitute businesses for which discrete financial information is available and is regularly reviewed by segment management. The impairment test involves first qualitatively assessing goodwill for impairment. If the qualitative assessment is not met the Company then performs a quantitative assessment by first comparing the estimated fair value of each reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of the reporting unit. If the estimated fair value exceeds carrying value, then we conclude that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its estimated fair value, a second step is required to measure possible goodwill impairment loss. The second step includes hypothetically valuing the tangible and intangible assets and liabilities of the reporting unit as if the reporting unit had been acquired in a business combination. Then, the implied fair value of the reporting unit's goodwill is compared to the carrying value of that goodwill. If the carrying value of the reporting unit's goodwill exceeds the implied fair value of the goodwill, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value. There were no indicators of potential goodwill impairment during the six months ended June 30, 2018 . Goodwill was $2,157 million and $1,944 million as of June 30, 2018 and December 31, 2017 , respectively. |
Warranty, Policy | Warranty and product recalls —Expected warranty costs for products sold are recognized at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. Costs of product recalls, which may include the cost of the product being replaced as well as the customer’s cost of the recall, including labor to remove and replace the recalled part, are accrued as part of our warranty accrual at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Refer to Note 6. Warranty Obligations for additional information. Expected warranty costs for products sold are recognized principally at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. The estimated costs related to product recalls based on a formal campaign soliciting return of that product are accrued at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Aptiv has recognized its best estimate for its total aggregate warranty reserves, including product recall costs, across all of its operating segments as of June 30, 2018 . The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of June 30, 2018 to be zero to $20 million . |
Discontinued Operations, Policy | Discontinued operations —The Company reports financial results for discontinued operations separately from continuing operations to distinguish the financial impact of disposal transactions from ongoing operations. Discontinued operations reporting occurs only when the disposal of a component or a group of components of the Company represents a strategic shift that will have a major effect on the Company's operations and financial results. During the year ended December 31, 2017 , the Company completed the Separation of its former Powertrain Systems segment by means of a spin-off into Delphi Technologies. Accordingly, the assets and liabilities, operating results and operating and investing cash flows for the previously reported Powertrain Systems segment are presented as discontinued operations separate from the Company’s continuing operations and segment results for all periods presented in these consolidated financial statements and the notes to the consolidated financial statements, unless otherwise noted. Refer to Note 21. Discontinued Operations for further information regarding the Company's discontinued operations. |
Income Tax, Policy | Income taxes —Deferred tax assets and liabilities reflect temporary differences between the amount of assets and liabilities for financial and tax reporting purposes. Such amounts are adjusted, as appropriate, to reflect changes in tax rates expected to be in effect when the temporary differences reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. A valuation allowance is recorded to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event the Company determines it is more likely than not that the deferred tax assets will not be realized in the future, the valuation allowance adjustment to the deferred tax assets will be charged to earnings in the period in which the Company makes such a determination. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. Refer to Note 11. Income Taxes for additional information. |
Restructuring, Policy | Restructuring —Aptiv continually evaluates alternatives to align the business with the changing needs of its customers and to lower operating costs. This includes the realignment of its existing manufacturing capacity, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination. Contract termination costs are recorded when contracts are terminated or when Aptiv ceases to use the leased facility and no longer derives economic benefit from the contract. All other exit costs are expensed as incurred. Refer to Note 7. Restructuring for additional information. |
Customer Concentations, Policy | Customer concentrations —As reflected in the table below, combined net sales to General Motors Company ("GM") and Volkswagen Group ("VW"), Aptiv's two largest customers, totaled approximately 20% and 19% of our total net sales for the three and six months ended June 30, 2018 , respectively, and 24% and 24% for the three and six months ended June 30, 2017 , respectively. Percentage of Total Net Sales Accounts and Other Receivables Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2018 2017 2018 2017 (in millions) GM (1) 11 % 15 % 11 % 15 % $ 220 $ 204 VW 9 % 9 % 8 % 9 % 161 145 (1) Net sales to GM includes net sales to GM's former European Opel business prior to its sale to PSA Peugeot Citroën ("PSA") on August 1, 2017, after which date these sales are excluded from net sales to GM. |
Recently Issued Accounting Pronouncements, Policy | Recently adopted accounting pronouncements —Aptiv adopted ASU 2014-09, Revenue from Contracts with Customers , in the first quarter of 2018 using the modified retrospective method. This ASU supersedes most of the existing guidance on revenue recognition in ASC Topic 605, Revenue Recognition and establishes a broad principle that would require an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Refer to Note 22. Revenue for additional information. Aptiv adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities , in the first quarter of 2018 . This guidance makes targeted improvements to existing U.S. GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. In accordance with this guidance, Aptiv measures equity investments at cost, less impairments, adjusted for observable price changes. The adoption of this guidance did not have a significant impact on Aptiv's financial statements. Aptiv adopted ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , in the first quarter of 2018. This guidance clarifies the presentation requirements of eight specific issues within the statement of cash flows. The adoption of this guidance did not have a significant impact on Aptiv's financial statements, as Aptiv's treatment of the relevant affected items within its consolidated statement of cash flows is consistent with the requirements of this guidance. Aptiv adopted ASU 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory , in the first quarter of 2018. This guidance requires that the tax effects of all intra-entity sales of assets other than inventory be recognized in the period in which the transaction occurs. The guidance is to be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The adoption of this guidance resulted in an adjustment of $9 million recorded to retained earnings during the six months ended June 30, 2018 . Aptiv adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , in the first quarter of 2018. This guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash. As a result, restricted cash will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The adoption of this guidance did not have a significant impact on Aptiv's financial statements, other than the classification of restricted cash within the beginning-of-period and end-of-period totals on the consolidated statement of cash flows, as opposed to being excluded from these totals. Recently issued accounting pronouncements not yet adopted —In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . Under this guidance, lessees will be required to recognize on the balance sheet a lease liability and a right-of-use asset for all leases, with the exception of short-term leases. The lease liability represents the lessee's obligation to make lease payments arising from a lease, and will be measured as the present value of the lease payments. The right-of-use asset represents the lessee’s right to use a specified asset for the lease term, and will be measured at the lease liability amount, adjusted for lease prepayment, lease incentives received and the lessee’s initial direct costs. The standard also requires a lessee to recognize a single lease cost allocated over the lease term, generally on a straight-line basis. The new guidance is effective for fiscal years beginning after December 15, 2018. ASU 2016-02 is required to be applied using the modified retrospective approach for all leases existing as of the effective date and provides for certain practical expedients. Early adoption is permitted. As of December 31, 2017, Aptiv had minimum lease commitments under non-cancellable operating leases totaling approximately $450 million . The adoption of this guidance will result in the addition of right-of-use assets and corresponding lease obligations to the consolidated balance sheet and will not have a material impact on its results of operations or cash flows. As permitted, the Company currently plans to elect the practical expedients upon transition which will retain the lease classification and initial direct costs for leases existing prior to the adoption of this standard. The Company will not reassess whether any contracts which were entered into prior to the adoption of ASU 2016-02 are classified as leases. The Company is in the process of cataloging existing lease contracts and implementing changes to its systems. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . This guidance requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. This guidance also requires enhanced disclosures regarding significant estimates and judgments used in estimating credit losses. The new guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . This guidance simplifies how an entity is required to test goodwill for impairment by eliminating step two from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard will be applied prospectively and is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting this standard on its financial statements, but does not anticipate a material impact. As this standard is prospective in nature, the impact to Aptiv's financial statements of not performing a step two in order to measure the amount of any potential goodwill impairment will depend on various factors associated with the Company's assessment of goodwill for impairment in those future periods. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging—Targeted Improvements to Accounting for Hedging Activities , which expands and refines the application of hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows for the elimination of the stranded income tax effects resulting from the enactment of the Tax Cuts and Jobs Act through a reclassification from accumulated other comprehensive income to retained earnings. The standard is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on Aptiv's financial statements. |
Inventories, Policy | Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or net realizable value, including direct material costs and direct and indirect manufacturing costs. |
Pensions, Policy | 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 DPHH 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 5 years after an involuntary or voluntary separation from Aptiv. The SERP is closed to new members. |
Guarantor, Policy | In lieu of providing separate audited financial statements for the Guarantors, the Company has included the accompanying condensed consolidating financial statements. These condensed consolidating financial statements are presented using the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Parent’s share of the subsidiary’s cumulative results of operations, capital contributions and distributions and other equity changes. The Non-Guarantor Subsidiaries are combined in the condensed consolidating financial statements. The principal elimination entries are to eliminate the investments in subsidiaries and intercompany balances and transactions. |
Segment Reporting, Policy | 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, equity income (loss), net of tax, income (loss) from discontinued operations, net of tax, 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, gains (losses) on business divestitures and deferred compensation related to acquisitions (“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. |
Significant Accounting Polici31
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Revenue by Major Customers by Reporting Segments | Customer concentrations —As reflected in the table below, combined net sales to General Motors Company ("GM") and Volkswagen Group ("VW"), Aptiv's two largest customers, totaled approximately 20% and 19% of our total net sales for the three and six months ended June 30, 2018 , respectively, and 24% and 24% for the three and six months ended June 30, 2017 , respectively. Percentage of Total Net Sales Accounts and Other Receivables Three Months Ended June 30, Six Months Ended June 30, June 30, December 31, 2018 2017 2018 2017 (in millions) GM (1) 11 % 15 % 11 % 15 % $ 220 $ 204 VW 9 % 9 % 8 % 9 % 161 145 (1) Net sales to GM includes net sales to GM's former European Opel business prior to its sale to PSA Peugeot Citroën ("PSA") on August 1, 2017, after which date these sales are excluded from net sales to GM. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | A summary of inventories is shown below: June 30, December 31, (in millions) Productive material $ 725 $ 584 Work-in-process 109 100 Finished goods 431 399 Total $ 1,265 $ 1,083 |
Assets (Tables)
Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: June 30, December 31, (in millions) Value added tax receivable $ 167 $ 160 Prepaid insurance and other expenses 96 104 Reimbursable engineering costs 50 33 Notes receivable 25 16 Income and other taxes receivable 51 46 Deposits to vendors 7 8 Derivative financial instruments (Note 14) 7 30 Accounts receivable to be remitted to Delphi Technologies (Note 21) 103 123 Other — 1 Total $ 506 $ 521 |
Schedule of Other Assets, Noncurrent | Other long-term assets consisted of the following: June 30, December 31, (in millions) Deferred income taxes, net $ 186 $ 185 Unamortized Revolving Credit Facility debt issuance costs (Note 8) 7 8 Income and other taxes receivable 16 22 Reimbursable engineering costs 103 66 Value added tax receivable 35 37 Equity investments (Note 17) 56 56 Derivative financial instruments (Note 14) — 8 Other 100 88 Total $ 503 $ 470 |
Liabilities (Tables)
Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities | Accrued liabilities consisted of the following: June 30, December 31, (in millions) Payroll-related obligations $ 249 $ 218 Employee benefits, including current pension obligations 80 116 Income and other taxes payable 216 233 Warranty obligations (Note 6) 36 41 Restructuring (Note 7) 64 90 Customer deposits 27 28 Derivative financial instruments (Note 14) 12 15 Accrued interest 39 41 Dividends payable — 59 Accounts payable to be remitted on behalf of Delphi Technologies (Note 21) 60 132 Other 326 323 Total $ 1,109 $ 1,296 |
Liabilities, Noncurrent | Other long-term liabilities consisted of the following: June 30, December 31, (in millions) Environmental (Note 10) $ 3 $ 4 Extended disability benefits 9 9 Warranty obligations (Note 6) 17 17 Restructuring (Note 7) 36 42 Payroll-related obligations 10 10 Accrued income taxes 175 154 Deferred income taxes, net 268 222 Derivative financial instruments (Note 14) 8 11 Deferred compensation related to nuTonomy acquisition (Note 17) 27 4 Other 68 53 Total $ 621 $ 526 |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The table below summarizes the activity in the product warranty liability for the six months ended June 30, 2018 : Warranty Obligations (in millions) Accrual balance at beginning of period $ 58 Provision for estimated warranties incurred during the period 20 Changes in estimate for pre-existing warranties 5 Settlements made during the period (in cash or in kind) (30 ) Foreign currency translation and other — Accrual balance at end of period $ 53 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the restructuring charges recorded for the three and six months ended June 30, 2018 and 2017 by operating segment: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Signal and Power Solutions $ 11 $ 14 $ 29 $ 27 Advanced Safety and User Experience 4 17 6 56 Total $ 15 $ 31 $ 35 $ 83 |
Schedule of Restructuring Reserve by Type of Cost | The table below summarizes the activity in the restructuring liability for the six months ended June 30, 2018 : Employee Termination Benefits Liability Other Exit Costs Liability Total (in millions) Accrual balance at January 1, 2018 $ 131 $ 1 $ 132 Provision for estimated expenses incurred during the period 35 — 35 Payments made during the period (65 ) (1 ) (66 ) Foreign currency and other (1 ) — (1 ) Accrual balance at June 30, 2018 $ 100 $ — $ 100 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following is a summary of debt outstanding, net of unamortized issuance costs and discounts, as of June 30, 2018 and December 31, 2017 , respectively: June 30, December 31, (in millions) 3.15%, senior notes, due 2020 (net of $2 and $2 unamortized issuance costs and $0 and $1 discount, respectively) $ 648 $ 647 4.15%, senior notes, due 2024 (net of $4 and $4 unamortized issuance costs and $1 and $1 discount, respectively) 695 695 1.50%, Euro-denominated senior notes, due 2025 (net of $4 and $4 unamortized issuance costs and $2 and $3 discount, respectively) 803 833 4.25%, senior notes, due 2026 (net of $3 and $4 unamortized issuance costs, respectively) 647 646 1.60%, Euro-denominated senior notes, due 2028 (net of $4 and $4 unamortized issuance costs and $1 and $1 discount, respectively) 573 595 4.40%, senior notes, due 2046 (net of $3 and $3 unamortized issuance costs and $2 and $2 discount, respectively) 295 295 Tranche A Term Loan, due 2021 (net of $1 and $2 unamortized issuance costs, respectively) 391 396 Capital leases and other 37 42 Total debt 4,089 4,149 Less: current portion (22 ) (17 ) Long-term debt $ 4,067 $ 4,132 |
Schedule of Interest Rates | The Applicable Rates under the Credit Agreement on the specified dates are set forth below: June 30, 2018 December 31, 2017 LIBOR plus ABR plus LIBOR plus ABR plus Revolving Credit Facility 1.10 % 0.10 % 1.10 % 0.10 % Tranche A Term Loan 1.25 % 0.25 % 1.25 % 0.25 % |
Schedule of Line of Credit Facilities | As of June 30, 2018 , Aptiv selected the one-month LIBOR interest rate option on the Tranche A Term Loan, and the rate effective as of June 30, 2018 , as detailed in the table below, was based on the Company's current credit rating and the Applicable Rate for the Credit Agreement: Borrowings as of June 30, 2018 Rate effective as of Applicable Rate (in millions) June 30, 2018 Tranche A Term Loan LIBOR plus 1.25% $ 392 3.375 % |
Pension Benefits (Tables)
Pension Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Net Benefit Costs | The amounts shown below reflect the defined benefit pension expense for the three and six months ended June 30, 2018 and 2017 : Non-U.S. Plans U.S. Plans Three Months Ended June 30, 2018 2017 2018 2017 (in millions) Service cost $ 4 $ 6 $ — $ — Interest cost 7 5 — 1 Expected return on plan assets (7 ) (6 ) — — Curtailment loss — 3 — — Amortization of actuarial losses 3 2 1 — Net periodic benefit cost $ 7 $ 10 $ 1 $ 1 Non-U.S. Plans U.S. Plans Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Service cost $ 9 $ 10 $ — $ — Interest cost 14 12 — 1 Expected return on plan assets (13 ) (12 ) — — Curtailment loss 1 3 — — Amortization of actuarial losses 7 5 1 — Net periodic benefit cost $ 18 $ 18 $ 1 $ 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) and Effective Tax Rate | The Company's income tax expense and effective tax rate for the three and six months ended June 30, 2018 and 2017 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (dollars in millions) Income tax expense $ 83 $ 38 $ 142 $ 57 Effective tax rate 22 % 11 % 19 % 10 % |
Shareholders' Equity And Net 40
Shareholders' Equity And Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Shareholders' Equity and Net Income Per Share Note [Abstract] | |
Schedule of Weighted Average Number of Shares | The following table illustrates net income per share attributable to Aptiv and the weighted average shares outstanding used in calculating basic and diluted income per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions, except per share data) Numerator: Income from continuing operations $ 291 $ 297 $ 598 $ 517 Income from discontinued operations — 72 — 187 Net income attributable to Aptiv $ 291 $ 369 $ 598 $ 704 Denominator: Weighted average ordinary shares outstanding, basic 264.81 267.41 265.25 268.30 Dilutive shares related to restricted stock units ("RSUs") 0.67 0.62 0.71 0.48 Weighted average ordinary shares outstanding, including dilutive shares 265.48 268.03 265.96 268.78 Basic net income per share: Continuing operations $ 1.10 $ 1.11 $ 2.25 $ 1.92 Discontinued operations — 0.27 — 0.70 Basic net income per share attributable to Aptiv $ 1.10 $ 1.38 $ 2.25 $ 2.62 Diluted net income per share: Continuing operations $ 1.10 $ 1.11 $ 2.25 $ 1.92 Discontinued operations — 0.27 — 0.70 Diluted net income per share attributable to Aptiv $ 1.10 $ 1.38 $ 2.25 $ 2.62 Anti-dilutive securities share impact — — — — |
Schedule of Share Repurchases | A summary of the ordinary shares repurchased during the three and six months ended June 30, 2018 and 2017 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Total number of shares repurchased 43,568 1,092,560 1,719,712 3,648,263 Average price paid per share $ 91.76 $ 86.92 $ 89.24 $ 78.93 Total (in millions) $ 4 $ 95 $ 153 $ 288 |
Schedule of Dividends Declared and Paid | The Company has declared and paid cash dividends per ordinary share during the periods presented as follows: Dividend Amount Per Share (in millions) 2018: Second quarter $ 0.22 $ 58 First quarter 0.22 59 Total $ 0.44 $ 117 2017: Fourth quarter $ 0.29 $ 77 Third quarter 0.29 77 Second quarter 0.29 78 First quarter 0.29 78 Total $ 1.16 $ 310 |
Changes in Accumulated Other 41
Changes in Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The changes in accumulated other comprehensive income (loss) attributable to Aptiv (net of tax) for the three and six months ended June 30, 2018 and 2017 are shown below. Prior period other comprehensive income includes activity relating to discontinued operations. Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Foreign currency translation adjustments: Balance at beginning of period $ (312 ) $ (714 ) $ (369 ) $ (799 ) Aggregate adjustment for the period (1) (185 ) 100 (128 ) 185 Balance at end of period (497 ) (614 ) (497 ) (614 ) Gains (losses) on derivatives: Balance at beginning of period (19 ) 28 4 (11 ) Other comprehensive income before reclassifications (net tax effect of $4, $5, $0 and $20) (8 ) 3 (26 ) 29 Reclassification to income (net tax effect of $0, $1, $1 and $10) (2 ) 1 (7 ) 14 Balance at end of period (29 ) 32 (29 ) 32 Pension and postretirement plans: Balance at beginning of period (105 ) (401 ) (106 ) (405 ) Other comprehensive income before reclassifications (net tax effect of $3, $1, $2 and $4) 6 (7 ) 3 (10 ) Reclassification to income (net tax effect of $1, $1, $1 and $3) 3 8 7 15 Balance at end of period (96 ) (400 ) (96 ) (400 ) Accumulated other comprehensive loss, end of period $ (622 ) $ (982 ) $ (622 ) $ (982 ) (1) Includes gains of $90 million and $53 million for the three and six months ended June 30, 2018 , and losses of $73 million and $103 million for the three and six months ended June 30, 2017 , respectively, related to non-derivative net investment hedges. Refer to Note 14. Derivatives and Hedging Activities for further description of these hedges. |
Reclassifications out of Accumulated Other Comprehensive Income | Reclassifications from accumulated other comprehensive income (loss) to income for the three and six months ended June 30, 2018 and 2017 were as follows: Reclassification Out of Accumulated Other Comprehensive Income (Loss) Details About Accumulated Other Comprehensive Income Components Three Months Ended June 30, Six Months Ended June 30, Affected Line Item in the Statement of Operations 2018 2017 2018 2017 (in millions) Gains (losses) on derivatives: Commodity derivatives $ 6 $ 2 $ 15 $ 3 Cost of sales Foreign currency derivatives (4 ) (4 ) (9 ) (27 ) Cost of sales 2 (2 ) 6 (24 ) Income before income taxes — 1 1 10 Income tax expense 2 (1 ) 7 (14 ) Net income — — — — Net income attributable to noncontrolling interest $ 2 $ (1 ) $ 7 $ (14 ) Net income attributable to Aptiv Pension and postretirement plans: Actuarial losses $ (4 ) $ (9 ) $ (8 ) $ (18 ) Other income (expense), net (1) (4 ) (9 ) (8 ) (18 ) Income before income taxes 1 1 1 3 Income tax expense (3 ) (8 ) (7 ) (15 ) Net income — — — — Net income attributable to noncontrolling interest $ (3 ) $ (8 ) $ (7 ) $ (15 ) Net income attributable to Aptiv Total reclassifications for the period $ (1 ) $ (9 ) $ — $ (29 ) (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 9. Pension Benefits for additional details). |
Derivatives And Hedging Activ42
Derivatives And Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2018 , the Company had the following outstanding notional amounts related to commodity and foreign currency forward and option contracts designated as cash flow hedges that were entered into to hedge forecasted exposures: Commodity Quantity Hedged Unit of Measure Notional Amount (in thousands) (in millions) Copper 70,508 pounds $ 220 Foreign Currency Quantity Hedged Unit of Measure Notional Amount (Approximate USD Equivalent) (in millions) Mexican Peso 12,157 MXN $ 600 Chinese Yuan Renminbi 2,098 RMB 315 Polish Zloty 420 PLN 110 New Turkish Lira 83 TRY 20 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of derivative financial instruments recorded in the consolidated balance sheets as of June 30, 2018 and December 31, 2017 are as follows: Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location June 30, Balance Sheet Location June 30, June 30, (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ 4 Accrued liabilities $ — Foreign currency derivatives* Other current assets 2 Other current assets 1 $ 1 Foreign currency derivatives* Accrued liabilities 3 Accrued liabilities 15 (12 ) Commodity derivatives Other long-term assets — Other long-term liabilities 3 Foreign currency derivatives* Other long-term assets 1 Other long-term assets 1 — Foreign currency derivatives* Other long-term liabilities — Other long-term liabilities 5 (5 ) Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets 2 Accrued liabilities — Total derivatives designated as hedges $ 12 $ 25 Asset Derivatives Liability Derivatives Net Amounts of Assets and (Liabilities) Presented in the Balance Sheet Balance Sheet Location December 31, Balance Sheet Location December 31, December 31, (in millions) Derivatives designated as cash flow hedges: Commodity derivatives Other current assets $ 27 Accrued liabilities $ — Foreign currency derivatives* Other current assets 3 Other current assets — $ 3 Foreign currency derivatives* Accrued liabilities 7 Accrued liabilities 17 (10 ) Commodity derivatives Other long-term assets 8 Other long-term liabilities — Foreign currency derivatives* Other long-term liabilities — Other long-term liabilities 11 (11 ) Derivatives designated as net investment hedges: Foreign currency derivatives Other current assets — Accrued liabilities 5 Total derivatives designated as hedges $ 45 $ 33 * Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the three months ended June 30, 2018 is as follows: Three Months Ended June 30, 2018 (Loss) Gain Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ (2 ) $ 6 $ — Foreign currency derivatives (19 ) (4 ) — Derivatives designated as net investment hedges: Foreign currency derivatives 9 — — Total $ (12 ) $ 2 $ — Loss Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ (8 ) Total $ (8 ) The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the three months ended June 30, 2017 is as follows: Three Months Ended June 30, 2017 Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 2 $ 2 $ — Foreign currency derivatives 12 (4 ) — Derivatives designated as net investment hedges: Foreign currency derivatives (6 ) — — Total $ 8 $ (2 ) $ — Loss Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ (1 ) Total $ (1 ) The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the six months ended June 30, 2018 is as follows: Six Months Ended June 30, 2018 Loss Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ (19 ) $ 15 $ — Foreign currency derivatives (3 ) (9 ) — Derivatives designated as net investment hedges: Foreign currency derivatives (4 ) — — Total $ (26 ) $ 6 $ — Gain Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ 2 Total $ 2 The pre-tax effect of derivative financial instruments in the consolidated statement of operations and consolidated statement of comprehensive income for the six months ended June 30, 2017 is as follows: Six Months Ended June 30, 2017 Gain (Loss) Recognized in OCI (Effective Portion) Gain (Loss) Reclassified from OCI into Income (Effective Portion) Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) (in millions) Derivatives designated as cash flow hedges: Commodity derivatives $ 11 $ 3 $ — Foreign currency derivatives 54 (27 ) — Derivatives designated as net investment hedges: Foreign currency derivatives (16 ) — — Total $ 49 $ (24 ) $ — Loss Recognized in Income (in millions) Derivatives not designated: Foreign currency derivatives $ (5 ) Total $ (5 ) |
Fair Value Of Financial Instr43
Fair Value Of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Changes in Fair Value of Liabilities Measured on Recurring Basis with Unobservable Inputs | The changes in the contingent consideration liability classified as a Level 3 measurement for the six months ended June 30, 2018 were as follows: Contingent Consideration Liability (in millions) Fair value at beginning of period $ 33 Additions — Payments (5 ) Interest accretion — Fair value at end of period $ 28 |
Fair Value, Assets Measured on Recurring Basis | As of June 30, 2018 and December 31, 2017 , Aptiv had the following assets measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of June 30, 2018: Commodity derivatives $ 4 $ — $ 4 $ — Foreign currency derivatives 3 — 3 — Total $ 7 $ — $ 7 $ — As of December 31, 2017: Commodity derivatives $ 35 $ — $ 35 $ — Foreign currency derivatives 3 — 3 — Total $ 38 $ — $ 38 $ — |
Fair Value, Liabilities Measured on Recurring Basis | As of June 30, 2018 and December 31, 2017 , Aptiv had the following liabilities measured at fair value on a recurring basis: Total Quoted Prices in Active Markets Significant Other Observable Inputs Significant Unobservable Inputs (in millions) As of June 30, 2018: Commodity derivatives $ 3 $ — $ 3 $ — Foreign currency derivatives 17 — 17 — Contingent consideration 28 — — 28 Total $ 48 $ — $ 20 $ 28 As of December 31, 2017: Foreign currency derivatives $ 26 $ — $ 26 $ — Contingent consideration 33 — — 33 Total $ 59 $ — $ 26 $ 33 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other income (expense), net included: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Interest income $ 7 $ 1 $ 12 $ 2 Components of net periodic benefit cost other than service cost (Note 9) (4 ) (5 ) (10 ) (9 ) Reserve for Unsecured Creditors litigation — 17 — (10 ) Costs associated with acquisitions (16 ) — (5 ) — Other, net 6 (5 ) 26 2 Other (expense) income, net $ (7 ) $ 8 $ 23 $ (15 ) |
Acquisitions And Divestitures (
Acquisitions And Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Technology Investments | As of June 30, 2018 , the Company had the following technology investments, which are classified within other long-term assets in the consolidated balance sheet: Investment Name Segment Investment Date Investment (in millions) Innoviz Technologies Advanced Safety and User Experience Q3 2017 $ 15 LeddarTech, Inc. Advanced Safety and User Experience Q3 2017 10 Valens Semiconductor Ltd. Signal and Power Solutions Q2 2017 10 Otonomo Technologies Ltd. Advanced Safety and User Experience Q1 2017 15 Quanergy Systems, Inc Advanced Safety and User Experience Q2 2015; Q1 2016 6 $ 56 |
KUM | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price and related allocation to the acquired net assets of KUM based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 512 Debt and pension liabilities assumed 11 Total consideration, net of cash acquired $ 523 Property, plant and equipment $ 123 Intangible assets 110 Other assets, net 17 Identifiable net assets acquired 250 Goodwill resulting from purchase 273 Total purchase price allocation $ 523 |
nuTonomy | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price and related allocation to the acquired net assets of nuTonomy based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 284 Purchase price, fair value of contingent consideration 24 Total purchase price, net of cash acquired $ 308 Intangible assets $ 102 Other liabilities, net (40 ) Identifiable net assets acquired 62 Goodwill resulting from purchase 246 Total purchase price allocation $ 308 |
Movimento | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price and related allocation to the acquired net assets of Movimento based on their estimated fair values is shown below (in millions): Assets acquired and liabilities assumed Purchase price, cash consideration, net of cash acquired $ 40 Purchase price, fair value of contingent consideration 8 Total purchase price, net of cash acquired $ 48 Intangible assets $ 22 Other liabilities, net (2 ) Identifiable net assets acquired 20 Goodwill resulting from purchase 28 Total purchase price allocation $ 48 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation Restricted Stock Units Performance Awards Weighting | Each executive will receive between 0% and 200% of his or her target performance-based award based on the Company’s performance against established company-wide performance metrics, which are: Metric 2016 - 2018 Grants 2014 - 2015 Grants Average return on net assets (1) 50% 50% Cumulative net income 25% N/A Cumulative earnings per share (2) N/A 30% Relative total shareholder return (3) 25% 20% (1) Average return on net assets is measured by tax-affected operating income divided by average net working capital plus average net property, plant and equipment for each calendar year during the respective performance period. (2) Cumulative earnings per share is measured by net income attributable to Aptiv divided by the weighted average number of diluted shares outstanding for the respective three-year performance period. (3) Relative total shareholder return is measured by comparing the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the end of the performance period to the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the year preceding the grant, including dividends, and assessed against a comparable measure of competitor and peer group companies. |
Schedule of Executive RSU Grants | The details of the executive grants were as follows: Grant Date RSUs Granted Grant Date Fair Value Time-Based Award Vesting Dates Performance-Based Award Vesting Date (in millions) February 2014 0.78 $ 53 Annually on anniversary of grant date, 2015 - 2017 December 31, 2016 February 2015 0.90 76 Annually on anniversary of grant date, 2016 - 2018 December 31, 2017 February 2016 0.71 48 Annually on anniversary of grant date, 2017 - 2019 December 31, 2018 February 2017 0.80 63 Annually on anniversary of grant date, 2018 - 2020 December 31, 2019 February 2018 0.63 61 Annually on anniversary of grant date, 2019 - 2021 December 31, 2020 |
Schedule of Share-based Compensation Restricted Stock Units Award Activity | A summary of RSU activity, including award grants, vesting and forfeitures is provided below: RSUs Weighted Average Grant Date Fair Value (in thousands) Nonvested, January 1, 2018 1,807 $ 68.66 Granted 749 96.47 Vested (416 ) 66.37 Forfeited (72 ) 67.48 Nonvested, June 30, 2018 2,068 79.15 |
Supplemental Guarantor And No47
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements [Abstract] | |
Schedule of Condensed Income Statement | Statement of Operations Three Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 3,684 $ — $ 3,684 Operating expenses: Cost of sales — — — 2,958 — 2,958 Selling, general and administrative 19 — — 241 — 260 Amortization — — — 30 — 30 Restructuring — — — 15 — 15 Total operating expenses 19 — — 3,244 — 3,263 Operating (loss) income (19 ) — — 440 — 421 Interest (expense) income (33 ) (24 ) (47 ) (2 ) 70 (36 ) Other income (expense), net — 1 1 61 (70 ) (7 ) (Loss) income from continuing operations before income taxes and equity income (52 ) (23 ) (46 ) 499 — 378 Income tax benefit (expense) — — 10 (93 ) — (83 ) (Loss) income from continuing operations before equity income (52 ) (23 ) (36 ) 406 — 295 Equity in net income of affiliates — — — 8 — 8 Equity in net income (loss) of subsidiaries 343 253 (80 ) — (516 ) — Income (loss) from continuing operations 291 230 (116 ) 414 (516 ) 303 Income from discontinued operations, net of tax — — — — — — Net income (loss) 291 230 (116 ) 414 (516 ) 303 Net income attributable to noncontrolling interest — — — 12 — 12 Net income (loss) attributable to Aptiv $ 291 $ 230 $ (116 ) $ 402 $ (516 ) $ 291 Statement of Operations Six Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 7,314 $ — $ 7,314 Operating expenses: Cost of sales — — — 5,905 — 5,905 Selling, general and administrative 15 — — 504 — 519 Amortization — — — 60 — 60 Restructuring — — — 35 — 35 Total operating expenses 15 — — 6,504 — 6,519 Operating (loss) income (15 ) — — 810 — 795 Interest (expense) income (94 ) (31 ) (90 ) (3 ) 148 (70 ) Other income (expense), net — 1 1 169 (148 ) 23 (Loss) income from continuing operations before income taxes and equity income (109 ) (30 ) (89 ) 976 — 748 Income tax benefit (expense) — — 20 (162 ) — (142 ) (Loss) income from continuing operations before equity income (109 ) (30 ) (69 ) 814 — 606 Equity in net income of affiliates — — — 13 — 13 Equity in net income (loss) of subsidiaries 707 624 (88 ) — (1,243 ) — Income (loss) from continuing operations 598 594 (157 ) 827 (1,243 ) 619 Income from discontinued operations, net of tax — — — — — — Net income (loss) 598 594 (157 ) 827 (1,243 ) 619 Net income attributable to noncontrolling interest — — — 21 — 21 Net income (loss) attributable to Aptiv $ 598 $ 594 $ (157 ) $ 806 $ (1,243 ) $ 598 Statement of Operations Three Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 3,153 $ — $ 3,153 Operating expenses: Cost of sales — — — 2,498 — 2,498 Selling, general and administrative 29 — — 202 — 231 Amortization — — — 29 — 29 Restructuring — — — 31 — 31 Total operating expenses 29 — — 2,760 — 2,789 Operating (loss) income (29 ) — — 393 — 364 Interest (expense) income (63 ) (1 ) (43 ) (4 ) 76 (35 ) Other income (expense), net — 56 — 28 (76 ) 8 (Loss) income from continuing operations before income taxes and equity income (92 ) 55 (43 ) 417 — 337 Income tax benefit (expense) 1 — 16 (55 ) — (38 ) (Loss) income from continuing operations before equity income (91 ) 55 (27 ) 362 — 299 Equity in net income of affiliates — — — 7 — 7 Equity in net income (loss) of subsidiaries 460 405 49 — (914 ) — Income (loss) from continuing operations 369 460 22 369 (914 ) 306 Income from discontinued operations, net of tax — — — 80 — 80 Net income (loss) 369 460 22 449 (914 ) 386 Net income attributable to noncontrolling interest — — — 17 — 17 Net income (loss) attributable to Aptiv $ 369 $ 460 $ 22 $ 432 $ (914 ) $ 369 Statement of Operations Six Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net sales $ — $ — $ — $ 6,296 $ — $ 6,296 Operating expenses: Cost of sales — — — 5,042 — 5,042 Selling, general and administrative 35 — — 421 — 456 Amortization — — — 58 — 58 Restructuring — — — 83 — 83 Total operating expenses 35 — — 5,604 — 5,639 Operating (loss) income (35 ) — — 692 — 657 Interest (expense) income (122 ) (4 ) (86 ) (5 ) 149 (68 ) Other income (expense), net — 66 1 67 (149 ) (15 ) (Loss) income from continuing operations before income taxes and equity income (157 ) 62 (85 ) 754 — 574 Income tax benefit (expense) 1 — 31 (89 ) — (57 ) (Loss) income from continuing operations before equity income (156 ) 62 (54 ) 665 — 517 Equity in net income of affiliates — — — 18 — 18 Equity in net income (loss) of subsidiaries 860 798 19 — (1,677 ) — Income (loss) from continuing operations 704 860 (35 ) 683 (1,677 ) 535 Income from discontinued operations, net of tax — — — 203 — 203 Net income (loss) 704 860 (35 ) 886 (1,677 ) 738 Net income attributable to noncontrolling interest — — — 34 — 34 Net income (loss) attributable to Aptiv $ 704 $ 860 $ (35 ) $ 852 $ (1,677 ) $ 704 |
Schedule of Comprehensive Income (Loss) | Statement of Comprehensive Income Three Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 291 $ 230 $ (116 ) $ 414 $ (516 ) $ 303 Other comprehensive income (loss): Currency translation adjustments 90 — — (283 ) — (193 ) Net change in unrecognized loss on derivative instruments, net of tax — — — (10 ) — (10 ) Employee benefit plans adjustment, net of tax — — — 9 — 9 Other comprehensive income (loss) 90 — — (284 ) — (194 ) Equity in other comprehensive (loss) income of subsidiaries (276 ) (125 ) (20 ) — 421 — Comprehensive income (loss) 105 105 (136 ) 130 (95 ) 109 Comprehensive income attributable to noncontrolling interests — — — 4 — 4 Comprehensive income (loss) attributable to Aptiv $ 105 $ 105 $ (136 ) $ 126 $ (95 ) $ 105 Statement of Comprehensive Income Six Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 598 $ 594 $ (157 ) $ 827 $ (1,243 ) $ 619 Other comprehensive income (loss): Currency translation adjustments 53 — — (185 ) — (132 ) Net change in unrecognized loss on derivative instruments, net of tax — — — (33 ) — (33 ) Employee benefit plans adjustment, net of tax — — — 10 — 10 Other comprehensive income (loss) 53 — — (208 ) — (155 ) Equity in other comprehensive (loss) income of subsidiaries (204 ) (147 ) 1 — 350 — Comprehensive income (loss) 447 447 (156 ) 619 (893 ) 464 Comprehensive income attributable to noncontrolling interests — — — 17 — 17 Comprehensive income (loss) attributable to Aptiv $ 447 $ 447 $ (156 ) $ 602 $ (893 ) $ 447 Statement of Comprehensive Income Three Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 369 $ 460 $ 22 $ 449 $ (914 ) $ 386 Other comprehensive (loss) income: Currency translation adjustments (73 ) — — 176 — 103 Net change in unrecognized gain on derivative instruments, net of tax — — — 4 — 4 Employee benefit plans adjustment, net of tax — — — 1 — 1 Other comprehensive (loss) income (73 ) — — 181 — 108 Equity in other comprehensive income (loss) of subsidiaries 178 14 13 — (205 ) — Comprehensive income (loss) 474 474 35 630 (1,119 ) 494 Comprehensive income attributable to noncontrolling interests — — — 20 — 20 Comprehensive income (loss) attributable to Aptiv $ 474 $ 474 $ 35 $ 610 $ (1,119 ) $ 474 Statement of Comprehensive Income Six Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net income (loss) $ 704 $ 860 $ (35 ) $ 886 $ (1,677 ) $ 738 Other comprehensive (loss) income: Currency translation adjustments (103 ) — — 292 — 189 Net change in unrecognized gain on derivative instruments, net of tax — — — 43 — 43 Employee benefit plans adjustment, net of tax — — — 5 — 5 Other comprehensive (loss) income (103 ) — — 340 — 237 Equity in other comprehensive income (loss) of subsidiaries 336 77 61 — (474 ) — Comprehensive income (loss) 937 937 26 1,226 (2,151 ) 975 Comprehensive income attributable to noncontrolling interests — — — 38 — 38 Comprehensive income (loss) attributable to Aptiv $ 937 $ 937 $ 26 $ 1,188 $ (2,151 ) $ 937 |
Schedule of Condensed Balance Sheet | Balance Sheet as of June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ 2 $ — $ — $ 968 $ — $ 970 Restricted cash — — — 1 — 1 Accounts receivable, net — — — 2,598 — 2,598 Intercompany receivables, current 6 15 2,088 3,884 (5,993 ) — Inventories — — — 1,265 — 1,265 Other current assets — — — 506 — 506 Total current assets 8 15 2,088 9,222 (5,993 ) 5,340 Long-term assets: Intercompany receivables, long-term — — 768 1,432 (2,200 ) — Property, net — — — 2,972 — 2,972 Investments in affiliates — — — 99 — 99 Investments in subsidiaries 6,606 10,408 2,012 — (19,026 ) — Intangible assets, net — — — 3,402 — 3,402 Other long-term assets 60 — 7 436 — 503 Total long-term assets 6,666 10,408 2,787 8,341 (21,226 ) 6,976 Total assets $ 6,674 $ 10,423 $ 4,875 $ 17,563 $ (27,219 ) $ 12,316 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 18 $ 4 $ — $ 22 Accounts payable — — — 2,307 — 2,307 Intercompany payables, current 151 4,307 1,535 — (5,993 ) — Accrued liabilities 35 — 10 1,064 — 1,109 Total current liabilities 186 4,307 1,563 3,375 (5,993 ) 3,438 Long-term liabilities: Long-term debt 2,965 — 1,069 33 — 4,067 Intercompany payables, long-term — — 1,334 866 (2,200 ) — Pension benefit obligations — — — 432 — 432 Other long-term liabilities — — — 621 — 621 Total long-term liabilities 2,965 — 2,403 1,952 (2,200 ) 5,120 Total liabilities 3,151 4,307 3,966 5,327 (8,193 ) 8,558 Total Aptiv shareholders’ equity 3,523 6,116 909 12,001 (19,026 ) 3,523 Noncontrolling interest — — — 235 — 235 Total shareholders’ equity 3,523 6,116 909 12,236 (19,026 ) 3,758 Total liabilities and shareholders’ equity $ 6,674 $ 10,423 $ 4,875 $ 17,563 $ (27,219 ) $ 12,316 Balance Sheet as of December 31, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) ASSETS Current assets: Cash and cash equivalents $ 1 $ — $ — $ 1,595 $ — $ 1,596 Restricted cash — — — 1 — 1 Accounts receivable, net — — — 2,440 — 2,440 Intercompany receivables, current 50 16 82 9,867 (10,015 ) — Inventories — — — 1,083 — 1,083 Other current assets — — — 521 — 521 Total current assets 51 16 82 15,507 (10,015 ) 5,641 Long-term assets: Intercompany receivables, long-term — — 768 1,366 (2,134 ) — Property, net — — — 2,804 — 2,804 Investments in affiliates — — — 91 — 91 Investments in subsidiaries 11,987 13,707 3,416 — (29,110 ) — Intangible assets, net — — — 3,163 — 3,163 Other long-term assets 60 — 8 402 — 470 Total long-term assets 12,047 13,707 4,192 7,826 (31,244 ) 6,528 Total assets $ 12,098 $ 13,723 $ 4,274 $ 23,333 $ (41,259 ) $ 12,169 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term debt $ — $ — $ 13 $ 4 $ — $ 17 Accounts payable 2 — — 2,225 — 2,227 Intercompany payables, current 5,689 1,736 1,032 1,558 (10,015 ) — Accrued liabilities 91 — 10 1,195 — 1,296 Total current liabilities 5,782 1,736 1,055 4,982 (10,015 ) 3,540 Long-term liabilities: Long-term debt 3,017 — 1,078 37 — 4,132 Intercompany payables, long-term — — 1,297 837 (2,134 ) — Pension benefit obligations — — — 454 — 454 Other long-term liabilities — — — 526 — 526 Total long-term liabilities 3,017 — 2,375 1,854 (2,134 ) 5,112 Total liabilities 8,799 1,736 3,430 6,836 (12,149 ) 8,652 Total Aptiv shareholders’ equity 3,299 11,987 844 16,279 (29,110 ) 3,299 Noncontrolling interest — — — 218 — 218 Total shareholders’ equity 3,299 11,987 844 16,497 (29,110 ) 3,517 Total liabilities and shareholders’ equity $ 12,098 $ 13,723 $ 4,274 $ 23,333 $ (41,259 ) $ 12,169 |
Schedule of Condensed Cash Flow Statement | Statement of Cash Flows for the Six Months Ended June 30, 2018 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net cash (used in) provided by operating activities from continuing operations $ (91 ) $ — $ — $ 843 $ — $ 752 Net cash used in operating activities from discontinued operations — — — (52 ) — (52 ) Net cash (used in) provided by operating activities (91 ) — — 791 — 700 Cash flows from investing activities: Capital expenditures — — — (449 ) — (449 ) Proceeds from sale of property / investments — — — 6 — 6 Cost of business acquisitions, net of cash acquired — — — (512 ) — (512 ) Return of investment from subsidiaries 5,879 4,971 — — (10,850 ) — Settlement of derivatives — — — (6 ) — (6 ) Loans to affiliates — — — (2,985 ) 2,985 — Repayments of loans from affiliates — — — 7,598 (7,598 ) — Net cash provided by (used in) investing activities from continuing operations 5,879 4,971 — 3,652 (15,463 ) (961 ) Net cash provided by investing activities from discontinued operations — — — — — — Net cash provided by (used in) investing activities 5,879 4,971 — 3,652 (15,463 ) (961 ) Cash flows from financing activities: Net repayments under other short-term debt agreements — — — (15 ) — (15 ) Contingent consideration and deferred acquisition purchase price payments — — — (5 ) — (5 ) Proceeds from borrowings from affiliates 358 2,627 — — (2,985 ) — Payments on borrowings from affiliates (5,879 ) (1,719 ) — — 7,598 — Dividends paid to affiliates — (5,879 ) — (4,971 ) 10,850 — Repurchase of ordinary shares (149 ) — — — — (149 ) Distribution of cash dividends (117 ) — — — — (117 ) Taxes withheld and paid on employees' restricted share awards — — — (35 ) — (35 ) Net cash (used in) provided by financing activities (5,787 ) (4,971 ) — (5,026 ) 15,463 (321 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash — — — (44 ) — (44 ) Increase (decrease) in cash, cash equivalents and restricted cash 1 — — (627 ) — (626 ) Cash, cash equivalents and restricted cash at beginning of period 1 — — 1,596 — 1,597 Cash, cash equivalents and restricted cash at end of period $ 2 $ — $ — $ 969 $ — $ 971 Cash, cash equivalents and restricted cash of discontinued operations $ — $ — $ — $ — $ — $ — Cash, cash equivalents and restricted cash of continuing operations $ 2 $ — $ — $ 969 $ — $ 971 Statement of Cash Flows for the Six Months Ended June 30, 2017 Parent Subsidiary Guarantors Subsidiary Issuer/Guarantor Non-Guarantor Subsidiaries Eliminations Consolidated (in millions) Net cash (used in) provided by operating activities from continuing operations $ (35 ) $ 26 $ — $ 681 $ — $ 672 Net cash provided by operating activities from discontinued operations — — — 217 — 217 Net cash (used in) provided by operating activities (35 ) 26 — 898 — 889 Cash flows from investing activities: Capital expenditures — — — (311 ) — (311 ) Proceeds from sale of property / investments — — — 2 — 2 Cost of business acquisitions, net of cash acquired — — — (40 ) — (40 ) Cost of technology investments — — — (25 ) — (25 ) Settlement of derivatives — — — (12 ) — (12 ) Loans to affiliates — (26 ) — (452 ) 478 — Net cash (used in) provided by investing activities from continuing operations — (26 ) — (838 ) 478 (386 ) Net cash used in investing activities from discontinued operations — — — (77 ) — (77 ) Net cash (used in) provided by investing activities — (26 ) — (915 ) 478 (463 ) Cash flows from financing activities: Net repayments under other short-term debt agreements — — — (5 ) — (5 ) Contingent consideration and deferred acquisition purchase price payments — — — (20 ) — (20 ) Dividend payments of consolidated affiliates to minority shareholders — — — (10 ) — (10 ) Proceeds from borrowings from affiliates 478 — — — (478 ) — Repurchase of ordinary shares (289 ) — — — — (289 ) Distribution of cash dividends (156 ) — — — — (156 ) Taxes withheld and paid on employees' restricted share awards — — — (33 ) — (33 ) Net cash provided by (used in) financing activities 33 — — (68 ) (478 ) (513 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash — — — 41 — 41 Decrease in cash, cash equivalents and restricted cash (2 ) — — (44 ) — (46 ) Cash, cash equivalents and restricted cash at beginning of period 2 — — 837 — 839 Cash, cash equivalents and restricted cash at end of period $ — $ — $ — $ 793 $ — $ 793 Cash, cash equivalents and restricted cash of discontinued operations $ — $ — $ — $ 78 $ — $ 78 Cash, cash equivalents and restricted cash of continuing operations $ — $ — $ — $ 715 $ — $ 715 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Included below are sales and operating data for Aptiv’s segments for the three and six months ended June 30, 2018 and 2017 . Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Three Months Ended June 30, 2018: Net sales $ 2,650 $ 1,044 $ (10 ) $ 3,684 Depreciation & amortization $ 118 $ 38 $ — $ 156 Adjusted operating income $ 386 $ 88 $ — $ 474 Operating income $ 357 $ 64 $ — $ 421 Equity income, net of tax $ 8 $ — $ — $ 8 Net income attributable to noncontrolling interest $ 12 $ — $ — $ 12 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Three Months Ended June 30, 2017: Net sales $ 2,346 $ 823 $ (16 ) $ 3,153 Depreciation & amortization $ 105 $ 25 $ — $ 130 Adjusted operating income $ 312 $ 86 $ — $ 398 Operating income $ 296 $ 68 $ — $ 364 Equity income, net of tax $ 7 $ — $ — $ 7 Net income attributable to noncontrolling interest $ 9 $ — $ — $ 9 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Six Months Ended June 30, 2018: Net sales $ 5,267 $ 2,076 $ (29 ) $ 7,314 Depreciation & amortization $ 237 $ 74 $ — $ 311 Adjusted operating income $ 737 $ 164 $ — $ 901 Operating income $ 679 $ 116 $ — $ 795 Equity income, net of tax $ 13 $ — $ — $ 13 Net income attributable to noncontrolling interest $ 21 $ — $ — $ 21 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other (1) Total (in millions) For the Six Months Ended June 30, 2017: Net sales $ 4,688 $ 1,644 $ (36 ) $ 6,296 Depreciation & amortization $ 207 $ 49 $ — $ 256 Adjusted operating income $ 621 $ 129 $ — $ 750 Operating income $ 587 $ 70 $ — $ 657 Equity income, net of tax $ 18 $ — $ — $ 18 Net income attributable to noncontrolling interest $ 18 $ — $ — $ 18 (1) Eliminations and Other includes the elimination of inter-segment transactions. |
Reconciliation of Segment Adjusted OI to Consolidated Net Income | The reconciliation of Adjusted Operating Income to Operating Income includes, as applicable, 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, gains (losses) on business divestitures and deferred compensation related to acquisitions. The reconciliation of Adjusted Operating Income to net income attributable to Aptiv for the three and six months ended June 30, 2018 and 2017 are as follows: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Three Months Ended June 30, 2018: Adjusted operating income $ 386 $ 88 $ — $ 474 Restructuring (11 ) (4 ) — (15 ) Other acquisition and portfolio project costs (17 ) (5 ) — (22 ) Asset impairments (1 ) — — (1 ) Deferred compensation related to nuTonomy acquisition — (15 ) — (15 ) Operating income $ 357 $ 64 $ — 421 Interest expense (36 ) Other expense, net (7 ) Income from continuing operations before income taxes and equity income 378 Income tax expense (83 ) Equity income, net of tax 8 Income from continuing operations 303 Income from discontinued operations, net of tax — Net income 303 Net income attributable to noncontrolling interest 12 Net income attributable to Aptiv $ 291 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Three Months Ended June 30, 2017: Adjusted operating income $ 312 $ 86 $ — $ 398 Restructuring (14 ) (17 ) — (31 ) Other acquisition and portfolio project costs (2 ) (1 ) — (3 ) Operating income $ 296 $ 68 $ — 364 Interest expense (35 ) Other income, net 8 Income from continuing operations before income taxes and equity income 337 Income tax expense (38 ) Equity income, net of tax 7 Income from continuing operations 306 Income from discontinued operations, net of tax 80 Net income 386 Net income attributable to noncontrolling interest 17 Net income attributable to Aptiv $ 369 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Six Months Ended June 30, 2018: Adjusted operating income $ 737 $ 164 $ — $ 901 Restructuring (29 ) (6 ) — (35 ) Other acquisition and portfolio project costs (28 ) (13 ) — (41 ) Asset impairments (1 ) — — (1 ) Deferred compensation related to nuTonomy acquisition — (29 ) — (29 ) Operating income $ 679 $ 116 $ — 795 Interest expense (70 ) Other income, net 23 Income from continuing operations before income taxes and equity income 748 Income tax expense (142 ) Equity income, net of tax 13 Income from continuing operations 619 Income from discontinued operations, net of tax — Net income 619 Net income attributable to noncontrolling interest 21 Net income attributable to Aptiv $ 598 Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) For the Six Months Ended June 30, 2017: Adjusted operating income $ 621 $ 129 $ — $ 750 Restructuring (27 ) (56 ) — (83 ) Other acquisition and portfolio project costs (7 ) (2 ) — (9 ) Asset impairments — (1 ) — (1 ) Operating income $ 587 $ 70 $ — 657 Interest expense (68 ) Other expense, net (15 ) Income from continuing operations before income taxes and equity income 574 Income tax expense (57 ) Equity income, net of tax 18 Income from continuing operations 535 Income from discontinued operations, net of tax 203 Net income 738 Net income attributable to noncontrolling interest 34 Net income attributable to Aptiv $ 704 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Discontinued Operations [Abstract] | |
Schedule of Reconciliation of Major Classes of Profit or Loss of Discontinued Operations | A reconciliation of the major classes of line items constituting pre-tax profit or loss of discontinued operations to 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, 2017 2017 (in millions) Net sales $ 1,165 $ 2,314 Cost of sales 921 1,822 Selling, general and administrative 70 133 Amortization 4 8 Restructuring 66 76 Other expense items that are not major, net — 6 Income from discontinued operations before income taxes and equity income 104 269 Income tax expense on discontinued operations (24 ) (66 ) Income from discontinued operations, net of tax 80 203 Income from discontinued operations attributable to noncontrolling interests 8 16 Net income from discontinued operations attributable to Aptiv $ 72 $ 187 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue | Revenue generated from Aptiv's operating segments is disaggregated by primary geographic market in the following tables for the three and six months ended June 30, 2018 and 2017 . Information concerning geographic market reflects the manufacturing location. For the Three Months Ended June 30, 2018: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 1,072 $ 344 $ — $ 1,416 Europe, Middle East & Africa 804 433 (4 ) 1,233 Asia Pacific 707 266 (6 ) 967 South America 67 1 — 68 Total net sales $ 2,650 $ 1,044 $ (10 ) $ 3,684 For the Three Months Ended June 30, 2017: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 939 $ 286 $ (2 ) $ 1,223 Europe, Middle East & Africa 731 332 (5 ) 1,058 Asia Pacific 609 205 (9 ) 805 South America 67 — — 67 Total net sales $ 2,346 $ 823 $ (16 ) $ 3,153 For the Six Months Ended June 30, 2018: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 2,092 $ 679 $ (4 ) $ 2,767 Europe, Middle East & Africa 1,641 870 (9 ) 2,502 Asia Pacific 1,394 525 (16 ) 1,903 South America 140 2 — 142 Total net sales $ 5,267 $ 2,076 $ (29 ) $ 7,314 For the Six Months Ended June 30, 2017: Signal and Power Solutions Advanced Safety and User Experience Eliminations and Other Total (in millions) Geographic Market North America $ 1,894 $ 593 $ (6 ) $ 2,481 Europe, Middle East & Africa 1,446 655 (12 ) 2,089 Asia Pacific 1,220 394 (18 ) 1,596 South America 128 2 — 130 Total net sales $ 4,688 $ 1,644 $ (36 ) $ 6,296 |
General (Details)
General (Details) | Dec. 04, 2017 | Nov. 22, 2017 | May 19, 2011 | Nov. 22, 2011 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Formation of PLC | May 19, 2011 | |||
Initial Offering Period | November 22, 2011 | |||
Distribution Date | Dec. 4, 2017 | |||
Record Date | Nov. 22, 2017 |
Significant Accounting Polici52
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||||
Other Long-term Investments, Carrying Value | $ 56 | $ 56 | $ 56 | ||
Adjustment for recently adopted accounting pronouncements | (9) | (9) | |||
Intangible assets, net (excluding goodwill) | 1,245 | 1,245 | 1,219 | ||
Amortization of intangible assets | 30 | $ 29 | 60 | $ 58 | |
Goodwill | 2,157 | 2,157 | 1,944 | ||
Components of net periodic benefit cost other than service cost | 4 | $ 5 | 10 | $ 9 | |
Operating Lease, Liability | 450 | ||||
Other Long-Term Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Other Long-term Investments, Carrying Value | 56 | 56 | 56 | ||
GM | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts and Other Receivables | 220 | 220 | 204 | ||
VW | |||||
Significant Accounting Policies [Line Items] | |||||
Accounts and Other Receivables | $ 161 | $ 161 | $ 145 | ||
Customer Concentration Risk | Total Net Sales | GM & VW | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 20.00% | 24.00% | 19.00% | 24.00% | |
Customer Concentration Risk | Total Net Sales | GM | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 11.00% | 15.00% | 11.00% | 15.00% | |
Customer Concentration Risk | Total Net Sales | VW | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of Total Net Sales | 9.00% | 9.00% | 8.00% | 9.00% | |
Retained Earnings | |||||
Significant Accounting Policies [Line Items] | |||||
Adjustment for recently adopted accounting pronouncements | $ (9) | $ (9) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Productive material | $ 725 | $ 584 |
Work-in-process | 109 | 100 |
Finished goods | 431 | 399 |
Total | $ 1,265 | $ 1,083 |
Assets Current Assets (Details)
Assets Current Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Value added tax receivable | $ 167 | $ 160 |
Prepaid insurance and other expenses | 96 | 104 |
Reimbursable engineering costs | 50 | 33 |
Notes receivable | 25 | 16 |
Income and other taxes receivable | 51 | 46 |
Deposits to vendors | 7 | 8 |
Derivative financial instruments | 7 | 30 |
Accounts receivable to be remitted to Delphi Technologies | 103 | 123 |
Other | 0 | 1 |
Total | $ 506 | $ 521 |
Assets Non Current assets (Deta
Assets Non Current assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred income taxes | $ 186 | $ 185 |
Unamortized Revolving Credit Facility debt issuance costs | 7 | 8 |
Income and other taxes receivable | 16 | 22 |
Reimbursable engineering costs | 103 | 66 |
Value added tax receivable | 35 | 37 |
Other Long-term Investments, Carrying Value | 56 | 56 |
Derivative financial instruments | 0 | 8 |
Other | 100 | 88 |
Total | $ 503 | $ 470 |
Liabilities Other Liabilities,
Liabilities Other Liabilities, Current (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Payroll-related obligations | $ 249 | $ 218 |
Employee benefits, including current pension obligations | 80 | 116 |
Income and other taxes payable | 216 | 233 |
Warranty obligations | 36 | 41 |
Restructuring | 64 | 90 |
Customer deposits | 27 | 28 |
Derivative financial instruments | 12 | 15 |
Accrued interest | 39 | 41 |
Dividends Payable | 0 | 59 |
Accounts payable to be remitted on behalf of Delphi Technologies | 60 | 132 |
Other | 326 | 323 |
Total | $ 1,109 | $ 1,296 |
Liabilities Other Liabilities57
Liabilities Other Liabilities, Non Current (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Environmental | $ 3 | $ 4 |
Extended disability benefits | 9 | 9 |
Warranty obligations | 17 | 17 |
Restructuring | 36 | 42 |
Payroll-related obligations | 10 | 10 |
Accrued income taxes | 175 | 154 |
Deferred income taxes | 268 | 222 |
Derivative financial instruments | 8 | 11 |
Deferred compensation related to nuTonomy acquisition (Note 17) | 27 | 4 |
Other | 68 | 53 |
Total | $ 621 | $ 526 |
Warranty Obligations (Details)
Warranty Obligations (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Accrual balance at beginning of period | $ 58 | |
Provision for estimated warranties incurred during the period | 20 | |
Provision for changes in estimate for pre-existing warranties | 5 | |
Settlements made during the period (in cash or in kind) | (30) | |
Foreign currency translation and other | 0 | |
Accrual balance at end of period | 53 | |
Minimum | Product Warranty | ||
Product Warranty Liability [Line Items] | ||
Range of Possible Loss, Portion Not Accrued | 0 | |
Maximum | Product Warranty | ||
Product Warranty Liability [Line Items] | ||
Range of Possible Loss, Portion Not Accrued | $ 20 | |
Advanced Safety and User Experience | ||
Product Warranty Liability [Line Items] | ||
Specific Warranty Expense | $ 43 |
Restructuring Narrative (Detail
Restructuring Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 15 | $ 31 | $ 35 | $ 83 |
Asset Impairment Charges | 1 | 1 | 1 | |
Restructuring, Cash Expenditures | 66 | 60 | ||
Cost of Sales | Fair Value, Measurements, Nonrecurring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | 1 | 1 | ||
Advanced Safety and User Experience | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 4 | $ 17 | 6 | 56 |
EMEA | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 10 | $ 22 | ||
Plant Closure | EMEA | Advanced Safety and User Experience | European Footprint Rotation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 36 |
Restructuring Restructuring Cos
Restructuring Restructuring Costs by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 15 | $ 31 | $ 35 | $ 83 |
Signal and Power Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 11 | 14 | 29 | 27 |
Advanced Safety and User Experience | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 4 | $ 17 | $ 6 | $ 56 |
Restructuring Restructuring Lia
Restructuring Restructuring Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | $ 132 | |||
Restructuring Charges | $ 15 | $ 31 | 35 | $ 83 |
Payments made during the period | (66) | $ (60) | ||
Foreign currency and other | (1) | |||
Ending Balance | 100 | 100 | ||
Employee Termination Benefits Liability | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 131 | |||
Restructuring Charges | 35 | |||
Payments made during the period | (65) | |||
Foreign currency and other | (1) | |||
Ending Balance | 100 | 100 | ||
Other Exit Costs Liability | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 1 | |||
Restructuring Charges | 0 | |||
Payments made during the period | (1) | |||
Foreign currency and other | 0 | |||
Ending Balance | $ 0 | $ 0 |
Debt Outstanding (Details)
Debt Outstanding (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Sep. 20, 2016 | Sep. 15, 2016 | Nov. 19, 2015 | Mar. 10, 2015 | Mar. 03, 2014 | Feb. 14, 2013 | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||||
Capital leases and other | $ 37 | $ 42 | |||||||
Total debt | 4,089 | 4,149 | |||||||
Less: current portion | (22) | (17) | |||||||
Long-term debt | 4,067 | 4,132 | |||||||
Senior Notes | Senior Notes, 3.15% Due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 648 | 647 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% | |||||||
Debt Instrument, Maturity Date | Nov. 19, 2020 | Nov. 19, 2020 | |||||||
Unamortized debt issuance costs | $ 2 | 2 | |||||||
Unamortized discount | 0 | 1 | |||||||
Senior Notes | Senior Notes, 5.000% Due 2023 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||
Debt Instrument, Maturity Date | Feb. 15, 2023 | ||||||||
Senior Notes | Senior Notes, 4.150% Due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 695 | 695 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | |||||||
Debt Instrument, Maturity Date | Mar. 15, 2024 | Mar. 15, 2024 | |||||||
Unamortized debt issuance costs | $ 4 | 4 | |||||||
Unamortized discount | 1 | 1 | |||||||
Senior Notes | Euro-Denominated Senior Notes, 1.500% Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 803 | 833 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | |||||||
Debt Instrument, Maturity Date | Mar. 10, 2025 | Mar. 10, 2025 | |||||||
Unamortized debt issuance costs | $ 4 | 4 | |||||||
Unamortized discount | 2 | 3 | |||||||
Senior Notes | Senior Notes, 4.25% Due 2026 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 647 | 646 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |||||||
Debt Instrument, Maturity Date | Jan. 15, 2026 | Jan. 15, 2026 | |||||||
Unamortized debt issuance costs | $ 3 | 4 | |||||||
Senior Notes | Euro-denominated Senior Notes, 1.600% Due 2028 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 573 | 595 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.60% | 1.60% | |||||||
Debt Instrument, Maturity Date | Sep. 15, 2028 | Sep. 15, 2028 | |||||||
Unamortized debt issuance costs | $ 4 | 4 | |||||||
Unamortized discount | 1 | 1 | |||||||
Senior Notes | Senior Notes, 4.400% Due 2046 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 295 | 295 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | |||||||
Debt Instrument, Maturity Date | Oct. 1, 2046 | Oct. 1, 2046 | |||||||
Unamortized debt issuance costs | $ 3 | 3 | |||||||
Unamortized discount | 2 | 2 | |||||||
Senior Notes | Spin-Off Senior Notes, 5.000% Due 2025 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||
Debt Instrument, Maturity Date | Oct. 1, 2025 | ||||||||
Loans Payable | Tranche A Term Loan, Due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt | 391 | 396 | |||||||
Unamortized debt issuance costs | $ 1 | $ 2 | |||||||
JPMorgan Chase Bank, N.A. | Loans Payable | Tranche A Term Loan, Due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Maturity Date | Aug. 17, 2021 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2016 | |
Amended and Restated Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Additional Borrowing Capacity | $ 1,000 | ||
Amended and Restated Credit Agreement | JPMorgan Chase Bank, N.A. | |||
Line of Credit Facility [Line Items] | |||
Covenant Compliance, Maximum Ratio of Indebtedness to EBITDA | 350.00% | ||
Amended and Restated Credit Agreement | Secured Debt | |||
Line of Credit Facility [Line Items] | |||
Letters of Credit issued | $ 7 | ||
Revolving Credit Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Amounts drawn | 0 | ||
Revolving Credit Facility | Revolving Credit Facility | JPMorgan Chase Bank, N.A. | |||
Line of Credit Facility [Line Items] | |||
Revolving Credit Facility, Maximum Borrowing Capacity | $ 2,000 | $ 1,500 | |
Revolving Credit Facility | Revolving Credit Facility | JPMorgan Chase Bank, N.A. | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.10% | 1.10% | |
Revolving Credit Facility | Revolving Credit Facility | JPMorgan Chase Bank, N.A. | Administrative Agents Alternate Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.10% | 0.10% | |
Tranche A Term Loan, Due 2021 | JPMorgan Chase Bank, N.A. | Loans Payable | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Maturity Date | Aug. 17, 2021 | ||
Borrowings | $ 392 | ||
Tranche A Term Loan, Due 2021 | JPMorgan Chase Bank, N.A. | Loans Payable | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | 1.25% | |
Rate effective | 3.375% | ||
Tranche A Term Loan, Due 2021 | JPMorgan Chase Bank, N.A. | Loans Payable | Administrative Agents Alternate Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.25% | 0.25% |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) - Senior Notes € in Millions | Sep. 28, 2017USD ($) | Sep. 20, 2016USD ($) | Sep. 15, 2016USD ($) | Nov. 19, 2015USD ($) | Mar. 10, 2015USD ($) | Mar. 03, 2014USD ($) | Feb. 14, 2013USD ($) | May 17, 2011USD ($) | Jun. 30, 2018 | Sep. 15, 2016EUR (€) | Mar. 10, 2015EUR (€) |
Spin-Off Senior Notes, 5.000% Due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 800,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Debt Instrument, Maturity Date | Oct. 1, 2025 | ||||||||||
Senior Notes, 5.875% Due 2019 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 500,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.875% | ||||||||||
Debt Instrument, Maturity Date | May 15, 2019 | ||||||||||
Senior Notes, 6.125% Due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 500,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||||||||||
Debt Instrument, Maturity Date | May 15, 2021 | ||||||||||
Senior Notes, 5.000% Due 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 800,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||||||
Debt Instrument, Maturity Date | Feb. 15, 2023 | ||||||||||
Senior Notes, 4.150% Due 2024 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 700,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.15% | 4.15% | |||||||||
Debt Instrument, Maturity Date | Mar. 15, 2024 | Mar. 15, 2024 | |||||||||
Payments of Debt Issuance Costs | $ 6,000,000 | ||||||||||
Debt Instrument, Price | 99.649% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.193% | ||||||||||
Euro-Denominated Senior Notes, 1.500% Due 2025 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | |||||||||
Debt Instrument, Maturity Date | Mar. 10, 2025 | Mar. 10, 2025 | |||||||||
Payments of Debt Issuance Costs | $ 5,000,000 | ||||||||||
Debt Instrument, Price | 99.54% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.55% | ||||||||||
Euro-Denominated Senior Notes, 1.500% Due 2025 | Designated as Hedging Instrument | Net Investment Hedging | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | € | € 700 | ||||||||||
2015 Senior Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 1,300,000,000 | ||||||||||
Payments of Debt Issuance Costs | 8,000,000 | ||||||||||
Senior Notes, 3.15% Due 2020 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 650,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.15% | 3.15% | |||||||||
Debt Instrument, Maturity Date | Nov. 19, 2020 | Nov. 19, 2020 | |||||||||
Debt Instrument, Price | 99.784% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.197% | ||||||||||
Senior Notes, 4.25% Due 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 650,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | 4.25% | |||||||||
Debt Instrument, Maturity Date | Jan. 15, 2026 | Jan. 15, 2026 | |||||||||
Debt Instrument, Price | 99.942% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.256% | ||||||||||
Euro-denominated Senior Notes, 1.600% Due 2028 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.60% | 1.60% | |||||||||
Debt Instrument, Maturity Date | Sep. 15, 2028 | Sep. 15, 2028 | |||||||||
Payments of Debt Issuance Costs | $ 4,000,000 | ||||||||||
Debt Instrument, Price | 99.88% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.61% | ||||||||||
Euro-denominated Senior Notes, 1.600% Due 2028 | Designated as Hedging Instrument | Net Investment Hedging | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | € | € 500 | ||||||||||
Senior Notes, 4.400% Due 2046 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Senior notes issued | $ 300,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | 4.40% | |||||||||
Debt Instrument, Maturity Date | Oct. 1, 2046 | Oct. 1, 2046 | |||||||||
Payments of Debt Issuance Costs | $ 3,000,000 | ||||||||||
Debt Instrument, Price | 99.45% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.43% |
Debt Other Financing (Details)
Debt Other Financing (Details) € in Millions, $ in Millions | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018EUR (€) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Capital leases and other | $ 37 | $ 42 | |||
Interest Paid | $ 68 | $ 63 | |||
European Factoring Program | Accounts Receivable Factoring | |||||
Debt Instrument [Line Items] | |||||
Maximum Funding From Factoring Program | € | € 300 | ||||
Accounts receivable factoring borrowings | $ 0 | ||||
European Factoring Program | EURIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.42% |
Debt Spin-Off Financing (Detail
Debt Spin-Off Financing (Details) - USD ($) $ in Millions | Sep. 28, 2017 | Sep. 07, 2017 |
Senior Notes | Spin-Off Senior Notes, 5.000% Due 2025 | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 800 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Debt Instrument, Maturity Date | Oct. 1, 2025 | |
JPMorgan Chase Bank, N.A. | Spin-Off Credit Agreement | Spin-Off Tranche A Term Loan | ||
Debt Instrument [Line Items] | ||
Loans Payable | $ 750 |
Pension Benefits Narrative (Det
Pension Benefits Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Defined Benefit Pension Plan, Postemployment Benefit Period | 5 years | |
Liability, Other Retirement Benefits | $ 4 | $ 4 |
Pension Benefits Net Periodic B
Pension Benefits Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4 | $ 6 | $ 9 | $ 10 |
Interest cost | 7 | 5 | 14 | 12 |
Expected return on plan assets | (7) | (6) | (13) | (12) |
Curtailment loss | 0 | 3 | 1 | 3 |
Amortization of actuarial losses | 3 | 2 | 7 | 5 |
Net periodic benefit cost | 7 | 10 | 18 | 18 |
U.S. Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 1 | 0 | 1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Curtailment loss | 0 | 0 | 0 | 0 |
Amortization of actuarial losses | 1 | 0 | 1 | 0 |
Net periodic benefit cost | $ 1 | $ 1 | $ 1 | $ 1 |
Commitments And Contingencies U
Commitments And Contingencies Unsecured Creditors Litigation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||||||
Reserve for Unsecured Creditors Litigation | $ 0 | $ (17,000,000) | $ 0 | $ 10,000,000 | ||
Unsecured Creditors Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Damages Sought, Value Per Unit in Excess of Benchmark | 32.50 | |||||
Loss Contingency, Damages Sought, Unit in Excess of Benchmark | 67.50 | |||||
Litigation, Damages Benchmark, Fourth LLP Agreement | Unsecured Creditors Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Cumulative Distribution Threshold | 7,200,000,000 | |||||
Reserve for Unsecured Creditors Litigation | (17,000,000) | $ 27,000,000 | ||||
Unsecured Creditors litigation, amount of agreed settlement | $ (310,000,000) | |||||
Payments for Legal Settlements | $ 310,000,000 | |||||
Maximum | Unsecured Creditors Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Loss Contingency, Estimate of Possible Loss | $ 300,000,000 | $ 300,000,000 | ||||
Other income (expense), net | Judicial Ruling [Member] | Unsecured Creditors Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Reserve for Unsecured Creditors Litigation | $ 300,000,000 |
Commitments And Contingencies B
Commitments And Contingencies Brazil Matters (Details) - Brazil $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Brazil Loss Contingency, Claims asserted against Delphi | $ 155 |
Loss Contingency Accrual, at Carrying Value | 20 |
Minimum | |
Loss Contingencies [Line Items] | |
Range of Possible Loss, Portion Not Accrued | 0 |
Maximum | |
Loss Contingencies [Line Items] | |
Range of Possible Loss, Portion Not Accrued | $ 135 |
Commitments And Contingencies E
Commitments And Contingencies Environmental Matters (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Environmental Exit Cost [Line Items] | ||
Accrual for Environmental Loss Contingencies | $ 4 | $ 4 |
Accrued Environmental Loss Contingencies, Noncurrent | 3 | $ 4 |
Accrued Liabilities | ||
Environmental Exit Cost [Line Items] | ||
Accrued Environmental Loss Contingencies, Current | 1 | |
Other Long-Term Liabilities | ||
Environmental Exit Cost [Line Items] | ||
Accrued Environmental Loss Contingencies, Noncurrent | $ 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Examination [Line Items] | |||||
Income tax expense | $ 83 | $ 38 | $ 142 | $ 57 | |
Effective tax rate | 22.00% | 11.00% | 19.00% | 10.00% | |
Income Tax Expense (Benefit) associated with discrete items | $ 21 | $ (4) | $ 20 | $ (12) | |
Cash taxes paid | 131 | $ 126 | |||
UNITED STATES | |||||
Income Tax Examination [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 25 | $ 50 |
Shareholders' Equity And Net 73
Shareholders' Equity And Net Income Per Share Weighted Average Shares Outstanding and Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Income from continuing operations | $ 291 | $ 297 | $ 598 | $ 517 |
Income from discontinued operations | 0 | 72 | 0 | 187 |
Net income attributable to Aptiv | $ 291 | $ 369 | $ 598 | $ 704 |
Denominator: | ||||
Weighted average number of basic shares outstanding | 264,810,000 | 267,410,000 | 265,250,000 | 268,300,000 |
Dilutive shares related to restricted stock units | 670,000 | 620,000 | 710,000 | 480,000 |
Weighted average ordinary shares outstanding, including dilutive shares | 265,480,000 | 268,030,000 | 265,960,000 | 268,780,000 |
Basic net income per share: | ||||
Income from continuing operations, per basic share | $ 1.10 | $ 1.11 | $ 2.25 | $ 1.92 |
Income from discontinued operations, per basic share | 0 | 0.27 | 0 | 0.70 |
Basic net income per share attributable to Aptiv | 1.10 | 1.38 | 2.25 | 2.62 |
Diluted net income per share: | ||||
Income from continuing operations, per diluted share | 1.10 | 1.11 | 2.25 | 1.92 |
Income from discontinued operations, per diluted share | 0 | 0.27 | 0 | 0.70 |
Diluted net income per share attributable to Aptiv | $ 1.10 | $ 1.38 | $ 2.25 | $ 2.62 |
Antidilutive securities share impact | 0 | 0 | 0 | 0 |
Shareholders' Equity And Net 74
Shareholders' Equity And Net Income Per Share Share Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Repurchase Program [Line Items] | |||||
Stock Repurchased During Period, in shares | 43,568 | 1,092,560 | 1,719,712 | 3,648,263 | |
Stock Repurchased, Average Price per Share | $ 91.76 | $ 86.92 | $ 89.24 | $ 78.93 | |
Stock Repurchased During Period, Value | $ 4 | $ 95 | $ 153 | $ 288 | |
Share Repurchase Program April 2016 | |||||
Share Repurchase Program [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | 1,500 | 1,500 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 836 | 836 | |||
Share Repurchase Program January 2015 | |||||
Share Repurchase Program [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 1,500 | $ 1,500 | |||
Subsequent Event | |||||
Share Repurchase Program [Line Items] | |||||
Stock Repurchased During Period, Value | $ 6 | ||||
Subsequent Event | Share Repurchase Program April 2016 | |||||
Share Repurchase Program [Line Items] | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 830 |
Shareholders' Equity And Net 75
Shareholders' Equity And Net Income Per Share Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Cash dividends declared per share | $ 0.22 | $ 0.29 | $ 0.22 | $ 0.58 | ||||||
Cash dividends per share | $ 0.22 | $ 0.22 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.29 | $ 0.44 | $ 1.16 | ||
Payments of Cash Dividends | $ 58 | $ 59 | $ 77 | $ 77 | $ 78 | $ 78 | $ 117 | $ 310 | ||
Subsequent Event | ||||||||||
Cash dividends declared per share | $ 0.22 |
Shareholders' Equity And Net 76
Shareholders' Equity And Net Income Per Share Other (Details) - USD ($) | Dec. 04, 2017 | Nov. 22, 2017 | Jul. 31, 2017 | Jun. 30, 2018 | Nov. 22, 2011 |
Shareholders' Equity and Net Income Per Share [Line Items] | |||||
Initial Offering Period | November 22, 2011 | ||||
Distribution Date | Dec. 4, 2017 | ||||
Record Date | Nov. 22, 2017 | ||||
Unsecured Creditors Litigation | |||||
Shareholders' Equity and Net Income Per Share [Line Items] | |||||
Loss Contingency, Damages Sought, Value Per Unit in Excess of Benchmark | $ 32.50 | ||||
Loss Contingency, Damages Sought, Unit in Excess of Benchmark | 67.50 | ||||
Unsecured Creditors Litigation | Litigation, Damages Benchmark, Fourth LLP Agreement | |||||
Shareholders' Equity and Net Income Per Share [Line Items] | |||||
Cumulative Distribution Threshold | 7,200,000,000 | ||||
Payments for Legal Settlements | $ 310,000,000 | ||||
Maximum | Unsecured Creditors Litigation | |||||
Shareholders' Equity and Net Income Per Share [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $ 300,000,000 |
Changes in Accumulated Other 77
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | $ (471) | ||||
Accumulated other comprehensive income (loss), end of period | $ (622) | $ (982) | (622) | $ (982) | |
Designated as Hedging Instrument | Net Investment Hedging | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Gain (loss) on net investment hedge, net of tax | 90 | (73) | 53 | (103) | |
Foreign currency translation adjustments | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | (312) | (714) | (369) | (799) | |
Aggregate adjustment for the period (1) | [1] | (185) | 100 | (128) | 185 |
Accumulated other comprehensive income (loss), end of period | (497) | (614) | (497) | (614) | |
Unrealized gains (losses) on derivatives | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | (19) | 28 | 4 | (11) | |
Other comprehensive income (loss) before reclassifications (net of tax effect) | (8) | 3 | (26) | 29 | |
Reclassification to income (net of tax effect) | (2) | 1 | (7) | 14 | |
Accumulated other comprehensive income (loss), end of period | (29) | 32 | (29) | 32 | |
Net tax effect of Other comprehensive income before reclassifications | 4 | 5 | 0 | 20 | |
Net tax effect of Reclassification Adjustment from AOCI on Derivatives | 0 | 1 | 1 | 10 | |
Pension and postretirement plans | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Accumulated other comprehensive income (loss), beginning of period | (105) | (401) | (106) | (405) | |
Other comprehensive income (loss) before reclassifications (net of tax effect) | 6 | (7) | 3 | (10) | |
Reclassification to income (net of tax effect) | 3 | 8 | 7 | 15 | |
Accumulated other comprehensive income (loss), end of period | (96) | (400) | (96) | (400) | |
Net tax effect of Other comprehensive income before reclassifications | 3 | 1 | 2 | 4 | |
Net tax effect of Reclassification Adjustment from AOCI, Pension and Other Postretirement Plans | $ 1 | $ 1 | $ 1 | $ 3 | |
[1] | Includes gains of $90 million and $53 million for the three and six months ended June 30, 2018, and losses of $73 million and $103 million for the three and six months ended June 30, 2017, respectively, related to non-derivative net investment hedges. Refer to Note 14. Derivatives and Hedging Activities for further description of these hedges. |
Changes in Accumulated Other 78
Changes in Accumulated Other Comprehensive Income AOCI Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | $ (2,958) | $ (2,498) | $ (5,905) | $ (5,042) | |
Income tax expense | (83) | (38) | (142) | (57) | |
Net income | 303 | 386 | 619 | 738 | |
Net income attributable to noncontrolling interest | (12) | (17) | (21) | (34) | |
Net income attributable to Aptiv | 291 | 369 | 598 | 704 | |
Amount Reclassified from Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Net income attributable to Aptiv | (1) | (9) | 0 | (29) | |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income before income taxes | 2 | (2) | 6 | (24) | |
Income tax expense | 0 | 1 | 1 | 10 | |
Net income | 2 | (1) | 7 | (14) | |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net income attributable to Aptiv | 2 | (1) | 7 | (14) | |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | Commodity derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | 6 | 2 | 15 | 3 | |
Amount Reclassified from Accumulated Other Comprehensive Income | Unrealized gains (losses) on derivatives | Foreign currency derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Cost of sales | (4) | (4) | (9) | (27) | |
Amount Reclassified from Accumulated Other Comprehensive Income | Pension and postretirement plans | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Actuarial losses | [1] | (4) | (9) | (8) | (18) |
Income before income taxes | (4) | (9) | (8) | (18) | |
Income tax expense | 1 | 1 | 1 | 3 | |
Net income | (3) | (8) | (7) | (15) | |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net income attributable to Aptiv | $ (3) | $ (8) | $ (7) | $ (15) | |
[1] | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 9. Pension Benefits for additional details). |
Derivatives And Hedging Activ79
Derivatives And Hedging Activities Cash Flow Hedges (Details) lb in Thousands, ₺ in Millions, ¥ in Millions, zł in Millions, $ in Millions, $ in Millions | 6 Months Ended | 9 Months Ended | |||||
Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2018USD ($)lb | Jun. 30, 2018MXN ($)lb | Jun. 30, 2018CNY (¥)lb | Jun. 30, 2018TRY (₺)lb | Jun. 30, 2018PLN (zł)lb | |
Derivative [Line Items] | |||||||
Net derivative gains (losses) included in accumulated other comprehensive income, before tax | $ (20) | ||||||
Net derivative gains (losses) included in accumulated other comprehensive income, after tax | $ (7) | ||||||
Cash Flow Hedging | Copper | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative, nonmonetary (in lbs) | lb | 70,508 | 70,508 | 70,508 | 70,508 | 70,508 | ||
Notional amount of derivative | $ 220 | ||||||
Cash Flow Hedging | Foreign currency derivatives | |||||||
Derivative [Line Items] | |||||||
Additional Foreign Currency and Commodity Forward Contracts | 10 | ||||||
Cash Flow Hedging | Foreign currency derivatives | Mexican Peso | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 600 | $ 12,157 | |||||
Cash Flow Hedging | Foreign currency derivatives | Chinese Yuan Renminbi | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 315 | ¥ 2,098 | |||||
Cash Flow Hedging | Foreign currency derivatives | Polish Zloty | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | 110 | zł 420 | |||||
Cash Flow Hedging | Foreign currency derivatives | New Turkish Lira | |||||||
Derivative [Line Items] | |||||||
Notional amount of derivative | $ 20 | ₺ 83 | |||||
Scenario, Forecast [Member] | Cost of Sales | |||||||
Derivative [Line Items] | |||||||
Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ (12) | $ (8) |
Derivatives And Hedging Activ80
Derivatives And Hedging Activities Net Investment Hedges (Details) € in Millions, $ in Millions, ¥ in Billions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Jun. 30, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Sep. 15, 2016EUR (€) | Mar. 10, 2015EUR (€) | |
Derivative [Line Items] | |||||||||||||||
Settlement of derivatives | $ 6 | $ 12 | |||||||||||||
Net Investment Hedging | Designated as Hedging Instrument | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Gain (loss) on net investment hedge, net of tax | $ 90 | $ (73) | 53 | (103) | |||||||||||
Net Investment Hedging | Designated as Hedging Instrument | Euro-Denominated Senior Notes, 1.500% Due 2025 | Senior Notes | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt instrument designated as net investment hedge | € | € 700 | ||||||||||||||
Net Investment Hedging | Designated as Hedging Instrument | Euro-denominated Senior Notes, 1.600% Due 2028 | Senior Notes | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Debt instrument designated as net investment hedge | € | € 500 | ||||||||||||||
Net Investment Hedging | Designated as Hedging Instrument | Euro-Denominated Senior Notes, 1.500% Due 2025 and Euro-Denominated Senior Notes, 1.600% Due 2028 | Senior Notes | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Gain (loss) on net investment hedge, net of tax | 90 | (73) | 53 | (103) | |||||||||||
Net investment hedge gains (losses) included in accumulated other comprehensive income | $ (64) | $ (117) | (64) | $ (117) | (64) | ||||||||||
Amount of ineffectiveness on net investment hedges | 0 | ||||||||||||||
Foreign exchange forward | China, Yuan Renminbi | Net Investment Hedging | Designated as Hedging Instrument | |||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of derivative | 75 | 290 | $ 345 | $ 75 | $ 290 | $ 345 | $ 265 | $ 75 | $ 345 | ¥ 0.5 | ¥ 1.9 | ¥ 2.4 | ¥ 1.8 | ||
Derivative, Maturity Date | Dec. 20, 2018 | Jun. 20, 2018 | Dec. 21, 2017 | Jun. 21, 2017 | |||||||||||
Settlement of derivatives | $ 10 | $ 16 | $ 12 |
Derivatives And Hedging Activ81
Derivatives And Hedging Activities Derivatives Not Designated as Hedges (Details) ₩ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 01, 2018USD ($) | Mar. 01, 2018KRW (₩) | |
Derivative [Line Items] | ||||||
Derivative, Cash Received on Hedge | $ (6) | $ (12) | ||||
Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Derivative, Loss on Derivative | $ 8 | $ 1 | $ 5 | |||
KUM | Not Designated as Hedging Instrument | Foreign exchange forward | Korea (South), Won | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivative | $ 520 | ₩ 559,000 | ||||
Derivative, Cash Received on Hedge | 4 | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (7) | $ 4 |
Derivatives And Hedging Activ82
Derivatives And Hedging Activities Fair Value of Derivative Instruments in the Balance Sheet(Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Fair Value, Net | $ (13) | $ 12 | |
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | 12 | 45 | |
Gross amount of recognized liability derivatives | 25 | 33 | |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity derivatives | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | 4 | 27 | |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity derivatives | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized liability derivatives | 0 | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity derivatives | Other Long-Term Assets | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | 0 | 8 | |
Cash Flow Hedging | Designated as Hedging Instrument | Commodity derivatives | Other Long-Term Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized liability derivatives | 3 | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency derivatives | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | [1] | 2 | 3 |
Gross amount of recognized liability derivatives | [1] | 1 | 0 |
Net amount of derivative asset presented in the Balance Sheet | [1] | 1 | 3 |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency derivatives | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | [1] | 3 | 7 |
Gross amount of recognized liability derivatives | [1] | 15 | 17 |
Net amount of derivative liability presented in the Balance Sheet | [1] | (12) | (10) |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency derivatives | Other Long-Term Assets | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | [1] | 1 | |
Gross amount of recognized liability derivatives | [1] | 1 | |
Net amount of derivative asset presented in the Balance Sheet | [1] | 0 | |
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency derivatives | Other Long-Term Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | [1] | 0 | 0 |
Gross amount of recognized liability derivatives | [1] | 5 | 11 |
Net amount of derivative liability presented in the Balance Sheet | [1] | (5) | (11) |
Net Investment Hedging | Designated as Hedging Instrument | Foreign currency derivatives | Other Current Assets | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized asset derivatives | 2 | 0 | |
Net Investment Hedging | Designated as Hedging Instrument | Foreign currency derivatives | Accrued Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Gross amount of recognized liability derivatives | $ 0 | $ 5 | |
[1] | Derivative instruments within this category are subject to master netting arrangements and are presented on a net basis in the consolidated balance sheets in accordance with accounting guidance related to the offsetting of amounts related to certain contracts. |
Derivatives And Hedging Activ83
Derivatives And Hedging Activities Effect of Derivative Instruments in Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | $ (12) | $ (26) | ||
Loss Reclassified from Accumulated OCI into Income (Effective Portion) | $ (2) | $ (24) | ||
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 8 | 49 | ||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 2 | 6 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Commodity derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | (2) | (19) | ||
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 2 | 11 | ||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 6 | 2 | 15 | 3 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | (19) | (3) | ||
Loss Reclassified from Accumulated OCI into Income (Effective Portion) | (4) | (4) | (9) | (27) |
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 12 | 54 | ||
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instruments, Loss Recognized in Other Comprehensive Income (Loss), Effective Portion | (6) | (4) | (16) | |
Loss Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 | ||
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing | 0 | 0 | 0 | 0 |
Derivative Instruments, Gain Recognized in Other Comprehensive Income (Loss), Effective Portion | 9 | |||
Derivative Instruments, Gain Reclassified from Accumulated OCI into Income, Effective Portion | 0 | 0 | ||
Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Loss on Derivative | (8) | (1) | (5) | |
Derivative, Loss on Derivative | 2 | |||
Not Designated as Hedging Instrument | Foreign currency derivatives | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative, Loss on Derivative | $ (8) | $ (1) | $ (5) | |
Derivative, Loss on Derivative | $ 2 |
Fair Value Of Financial Instr84
Fair Value Of Financial Instruments Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, Fair Value, Net | $ (13) | $ (13) | $ 12 | |
Total debt, recorded amount | 4,089 | 4,089 | 4,149 | |
Asset Impairment Charges | 1 | 1 | $ 1 | |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 28 | 28 | 33 | |
Cost of Sales | Fair Value, Measurements, Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | 1 | 1 | ||
Fair Value, Inputs, Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total debt, fair value | 4,068 | 4,068 | 4,289 | |
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 0 | 0 | 0 | |
Other Current Liabilities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 3 | 3 | 7 | |
Other Long-Term Liabilities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | 25 | 25 | 26 | |
Contingent Consideration Liability | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Payments | (5) | $ (20) | ||
Contingent Consideration Liability | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration liability | $ 28 | $ 28 | $ 33 | |
Minimum [Member] | Contingent Consideration Liability | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Periods in which milestones are expected to be achieved | 2,018 | |||
Maximum [Member] | Contingent Consideration Liability | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Periods in which milestones are expected to be achieved | 2,020 |
Fair Value Of Financial Instr85
Fair Value Of Financial Instruments Unobservable Inputs Reconciliation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | $ 33 | |
Fair value at end of period | 28 | |
Contingent Consideration Liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Additions | 0 | |
Payments | (5) | $ (20) |
Interest accretion | 0 | |
Contingent Consideration Liability | Fair Value, Measurements, Recurring | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value at beginning of period | 33 | |
Fair value at end of period | $ 28 |
Fair Value Of Financial Instr86
Fair Value Of Financial Instruments Fair Value of Assets and Liabilities (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | $ 7 | $ 38 |
Contingent consideration liability | 28 | 33 |
Liabilities, Fair Value Disclosure, Recurring | 48 | 59 |
Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 4 | 35 |
Derivative Liability | 3 | |
Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3 | 3 |
Derivative Liability | 17 | 26 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Contingent consideration liability | 0 | 0 |
Liabilities, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 | Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Fair Value, Inputs, Level 1 | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 7 | 38 |
Contingent consideration liability | 0 | 0 |
Liabilities, Fair Value Disclosure, Recurring | 20 | 26 |
Fair Value, Inputs, Level 2 | Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 4 | 35 |
Derivative Liability | 3 | |
Fair Value, Inputs, Level 2 | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 3 | 3 |
Derivative Liability | 17 | 26 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Contingent consideration liability | 28 | 33 |
Liabilities, Fair Value Disclosure, Recurring | 28 | 33 |
Fair Value, Inputs, Level 3 | Commodity derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Fair Value, Inputs, Level 3 | Foreign currency derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | 0 |
Derivative Liability | $ 0 | $ 0 |
Other Income, Net Table (Detail
Other Income, Net Table (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | $ 7 | $ 1 | $ 12 | $ 2 | |
Components of net periodic benefit cost other than service cost (Note 9) | (4) | (5) | (10) | (9) | |
Reserve for Unsecured Creditors Litigation | 0 | 17 | 0 | (10) | |
Other, net | 6 | (5) | 26 | 2 | |
Other (expense) income, net | (7) | 8 | 23 | (15) | |
Business Combination, Acquisition Related Costs | (16) | 0 | (5) | 0 | |
Unsecured Creditors Litigation | Litigation, Damages Benchmark, Fourth LLP Agreement | |||||
Reserve for Unsecured Creditors Litigation | $ 17 | $ (27) | |||
Payments for Legal Settlements | $ 310 | ||||
Powertrain Systems | Other income (expense), net | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | |||||
Transition Services Agreement Fees | $ 3 | $ 6 |
Other Income, Net Narrative (De
Other Income, Net Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jul. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 16 | $ 0 | $ 5 | $ 0 | |
Reserve for Unsecured Creditors Litigation | 0 | (17) | 0 | 10 | |
Litigation, Damages Benchmark, Fourth LLP Agreement | Unsecured Creditors Litigation | |||||
Debt Instrument [Line Items] | |||||
Reserve for Unsecured Creditors Litigation | (17) | $ 27 | |||
Litigation Settlement, Amount Awarded to Other Party | $ 310 | ||||
Payments for Legal Settlements | $ 310 | ||||
Powertrain Systems | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Other income (expense), net | |||||
Debt Instrument [Line Items] | |||||
Transition Services Agreement Fees | 3 | 6 | |||
KUM | |||||
Debt Instrument [Line Items] | |||||
Business Combination, Acquisition Related Costs | 9 | ||||
Not Designated as Hedging Instrument | Korea (South), Won | Foreign exchange forward | KUM | |||||
Debt Instrument [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ (7) | $ 4 |
Acquisitions And Divestitures A
Acquisitions And Divestitures Acquisition of KUM (Details) - USD ($) $ in Millions | Jun. 14, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,157 | $ 1,944 | |
KUM | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Equity Interests Acquired | 100.00% | ||
Purchase price, cash consideration, net of cash acquired | $ 512 | ||
Business Combination, Consideration Transferred, Liabilities Incurred | 11 | ||
Business Combination, Consideration Transferred | 523 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 123 | ||
Intangible assets | 110 | ||
Other assets purchased and liabilities assumed, net | 17 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 250 | ||
Goodwill | 273 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 523 | ||
Customer Relationships [Member] | KUM | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years |
Acquisitions And Divestitures90
Acquisitions And Divestitures Acquisition of nuTonomy (Details) - USD ($) | Nov. 21, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,157,000,000 | $ 1,944,000,000 | |
nuTonomy | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 454,000,000 | ||
Purchase price, cash consideration, net of cash acquired | $ 284,000,000 | ||
Business Acquisition, Percentage of Equity Interests Acquired | 100.00% | ||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 109,000,000 | ||
Deferred Compensation, Payable after one year | 7,000,000 | ||
Deferred compensation, payable after two years | 51,000,000 | ||
Deferred Compensation, Payable after 3 years | $ 51,000,000 | ||
Business Combindation, Deferred Compensation period | 3 years | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 54,000,000 | ||
Contingent Consideration Period | 3 years | ||
Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | ||
Contingent consideration liability | 24,000,000 | ||
Business Combination, Consideration Transferred | 308,000,000 | ||
Intangible assets | 102,000,000 | ||
Other assets purchased and liabilities assumed, net | (40,000,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 62,000,000 | ||
Goodwill | 246,000,000 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 308,000,000 |
Acquisitions And Divestitures91
Acquisitions And Divestitures Acquisition of Movimento Group (Details) - USD ($) | Jan. 03, 2017 | Jun. 30, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,157,000,000 | $ 1,944,000,000 | |
Movimento | |||
Business Acquisition [Line Items] | |||
Business Acquisition, Percentage of Equity Interests Acquired | 100.00% | ||
Purchase price, cash consideration, net of cash acquired | $ 40,000,000 | ||
Contingent consideration liability | 8,000,000 | ||
Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 10,000,000 | ||
Contingent Consideration Period | 2 years | ||
Contingent Consideration Arrangements, Range of Outcomes, Value, Low | $ 0 | ||
Business Combination, Consideration Transferred | 48,000,000 | ||
Intangible assets | 22,000,000 | ||
Other assets purchased and liabilities assumed, net | (2,000,000) | ||
Identifiable net assets acquired | 20,000,000 | ||
Goodwill | 28,000,000 | ||
Total purchase price allocation | $ 48,000,000 | ||
Customer-Related Intangible Assets | Movimento | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||
Definite-lived intangible assets | $ 4,000,000 | ||
Trade Names | Movimento | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 25 years | ||
Trade Names | Movimento | |||
Business Acquisition [Line Items] | |||
Definite-lived intangible assets | $ 8,000,000 | ||
In Process Research and Development | Movimento | |||
Business Acquisition [Line Items] | |||
Indefinite-lived intangible assets | $ 10,000,000 |
Acquisitions And Divestitures T
Acquisitions And Divestitures Technology Investments (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Other Long-term Investments | $ 0 | $ 25 | |
Other Long-term Investments, Carrying Value | 56 | $ 56 | |
Quanergy | Advanced Safety and User Experience | |||
Business Acquisition [Line Items] | |||
Other Long-term Investments, Carrying Value | 6 | ||
Innoviz Technologies | Advanced Safety and User Experience | |||
Business Acquisition [Line Items] | |||
Other Long-term Investments, Carrying Value | 15 | ||
Leddartech | Advanced Safety and User Experience | |||
Business Acquisition [Line Items] | |||
Other Long-term Investments, Carrying Value | 10 | ||
Otonomo | Advanced Safety and User Experience | |||
Business Acquisition [Line Items] | |||
Other Long-term Investments | 15 | ||
Other Long-term Investments, Carrying Value | 15 | ||
Valens Semiconductor | Signal and Power Solutions | |||
Business Acquisition [Line Items] | |||
Other Long-term Investments | $ 10 | ||
Other Long-term Investments, Carrying Value | $ 10 |
Acquisitions And Divestitures93
Acquisitions And Divestitures Acquisition of Winchester (Details) $ in Millions | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Subsequent Event | Winchester | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 650 |
Share-Based Compensation Long T
Share-Based Compensation Long Term Incentive Plan (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 26, 2018 | Apr. 25, 2018 | Apr. 27, 2017 | Apr. 26, 2017 | Apr. 28, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2015 | Feb. 28, 2014 | Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 23, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU Conversion Ratio | $ 1.17 | |||||||||||||
PLC Long Term Incentive Plan | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum Shares Available for Grant under PLC LTIP | 25,665,448 | |||||||||||||
PLC Long Term Incentive Plan | Minimum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Performance-Based Awards Payout % Range | 0.00% | |||||||||||||
PLC Long Term Incentive Plan | Maximum | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Performance-Based Awards Payout % Range | 200.00% | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 749,000 | |||||||||||||
Grant Date Fair Value | $ 61 | $ 63 | $ 48 | $ 76 | $ 53 | |||||||||
Time-Based Awards % Granted For Officers | 25.00% | |||||||||||||
Time-Based Awards % Granted For Executives | 50.00% | |||||||||||||
Performance-Based Awards % Granted For Officers | 75.00% | |||||||||||||
Performance-Based Awards % Granted For Executives | 50.00% | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Board of Directors | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 22,676 | 26,782 | 27,238 | |||||||||||
Grant Date Fair Value | $ 2 | $ 2 | $ 2 | |||||||||||
RSU's Issued in Period, Gross | 24,642 | 26,580 | ||||||||||||
Fair Value of RSUs Vested in Period | $ 2 | $ 2 | ||||||||||||
RSU's, Used to Pay Witholding Taxes | (2,649) | (3,472) | ||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2014 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 780,000 | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2015 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 900,000 | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2016 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 710,000 | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2017 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 800,000 | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | 2018 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Granted | 630,000 | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | Time-Based | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Issued in Period, Gross | 285,344 | 248,008 | ||||||||||||
Fair Value of RSUs Vested in Period | $ 26 | $ 19 | ||||||||||||
RSU's, Used to Pay Witholding Taxes | 102,045 | 88,807 | ||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | Performance-Based | 2014 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Issued in Period, Gross | 797,210 | |||||||||||||
Fair Value of RSUs Vested in Period | $ 60 | |||||||||||||
RSU's, Used to Pay Witholding Taxes | 324,555 | |||||||||||||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | Executives | Performance-Based | 2015 Grant | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
RSU's Issued in Period, Gross | 640,239 | |||||||||||||
Fair Value of RSUs Vested in Period | $ 59 | |||||||||||||
RSU's, Used to Pay Witholding Taxes | 240,483 |
Share-Based Compensation Weight
Share-Based Compensation Weighting for Components of Performance Based RSU Awards (Details) - PLC Long Term Incentive Plan | 6 Months Ended | |
Jun. 30, 2018 | ||
2016 - 2017 Grants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average return on net assets | 50.00% | [1] |
Cumulative earnings per share | 30.00% | |
Relative total shareholder return | 20.00% | [2] |
2016 - 2018 Grants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Average return on net assets | 50.00% | [1] |
Cumulative net income | 25.00% | |
Relative total shareholder return | 25.00% | [2] |
[1] | Average return on net assets is measured by tax-affected operating income divided by average net working capital plus average net property, plant and equipment for each calendar year during the respective performance period. | |
[2] | Relative total shareholder return is measured by comparing the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the end of the performance period to the average closing price per share of the Company’s ordinary shares for the specified trading days in the fourth quarter of the year preceding the grant, including dividends, and assessed against a comparable measure of competitor and peer group companies. |
Share-Based Compensation Summar
Share-Based Compensation Summary of Activity for LTIP RSU's (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Payments Related to Tax Withholding for Share-based Compensation | $ 35 | $ 33 | |||
PLC Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
LTIP Nonvested, Weighted Average Grant Date Fair Value per share | $ 79.15 | $ 79.15 | $ 68.66 | ||
LTIP Grants in Period, Weighted Average Grant Date Fair Value per share | 96.47 | ||||
LTIP Vested in Period, Weighted Average Grant Date Fair Value per share | 66.37 | ||||
LTIP RSUs, Forfeitures, Weighted Average Grant Date Fair Value per share | $ 67.48 | ||||
Share-based Compensation Expense | $ 14 | $ 15 | $ 27 | 28 | |
Share-based Compensation Expense, net of tax | 12 | $ 13 | 24 | 24 | |
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 95 | $ 95 | |||
Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||||
Payments Related to Tax Withholding for Share-based Compensation | $ 35 | $ 33 | |||
PLC Long Term Incentive Plan | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
LTIP Shares, Nonvested, Number | 2,068 | 2,068 | 1,807 | ||
RSU's Granted | 749 | ||||
LTIP RSUs, Vested in Period | (416) | ||||
LTIP RSUs, Forfeited in Period | (72) |
Supplemental Guarantor And No97
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net sales | $ 3,684 | $ 3,153 | $ 7,314 | $ 6,296 |
Cost of sales | 2,958 | 2,498 | 5,905 | 5,042 |
Selling, general and administrative | 260 | 231 | 519 | 456 |
Amortization | 30 | 29 | 60 | 58 |
Restructuring | 15 | 31 | 35 | 83 |
Total operating expenses | 3,263 | 2,789 | 6,519 | 5,639 |
Operating income (loss) | 421 | 364 | 795 | 657 |
Interest expense | (36) | (35) | (70) | (68) |
Other (expense) income, net | (7) | 8 | 23 | (15) |
Income from continuing operations before income taxes and equity income | 378 | 337 | 748 | 574 |
Income tax expense | (83) | (38) | (142) | (57) |
Income from continuing operations before equity income | 295 | 299 | 606 | 517 |
Equity income, net of tax | 8 | 7 | 13 | 18 |
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income from continuing operations | 303 | 306 | 619 | 535 |
Income from discontinued operations, net of tax | 0 | 80 | 0 | 203 |
Net income | 303 | 386 | 619 | 738 |
Net income attributable to noncontrolling interest | 12 | 17 | 21 | 34 |
Net income attributable to Aptiv | 291 | 369 | 598 | 704 |
Reportable Legal Entities | Parent | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 19 | 29 | 15 | 35 |
Amortization | 0 | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 | 0 |
Total operating expenses | 19 | 29 | 15 | 35 |
Operating income (loss) | (19) | (29) | (15) | (35) |
Interest expense | (33) | (63) | (94) | (122) |
Other (expense) income, net | 0 | 0 | 0 | 0 |
Income from continuing operations before income taxes and equity income | (52) | (92) | (109) | (157) |
Income tax expense | 0 | 1 | 0 | 1 |
Income from continuing operations before equity income | (52) | (91) | (109) | (156) |
Equity income, net of tax | 0 | 0 | 0 | 0 |
Equity in net income (loss) of subsidiaries | 343 | 460 | 707 | 860 |
Income from continuing operations | 291 | 369 | 598 | 704 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | 291 | 369 | 598 | 704 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aptiv | 291 | 369 | 598 | 704 |
Reportable Legal Entities | Subsidiary Guarantors | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense | (24) | (1) | (31) | (4) |
Other (expense) income, net | 1 | 56 | 1 | 66 |
Income from continuing operations before income taxes and equity income | (23) | 55 | (30) | 62 |
Income tax expense | 0 | 0 | 0 | 0 |
Income from continuing operations before equity income | (23) | 55 | (30) | 62 |
Equity income, net of tax | 0 | 0 | 0 | 0 |
Equity in net income (loss) of subsidiaries | 253 | 405 | 624 | 798 |
Income from continuing operations | 230 | 460 | 594 | 860 |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | 230 | 460 | 594 | 860 |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aptiv | 230 | 460 | 594 | 860 |
Reportable Legal Entities | Subsidiary Issuer/Guarantor | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense | (47) | (43) | (90) | (86) |
Other (expense) income, net | 1 | 0 | 1 | 1 |
Income from continuing operations before income taxes and equity income | (46) | (43) | (89) | (85) |
Income tax expense | 10 | 16 | 20 | 31 |
Income from continuing operations before equity income | (36) | (27) | (69) | (54) |
Equity income, net of tax | 0 | 0 | 0 | 0 |
Equity in net income (loss) of subsidiaries | (80) | 49 | (88) | 19 |
Income from continuing operations | (116) | 22 | (157) | (35) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | (116) | 22 | (157) | (35) |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aptiv | (116) | 22 | (157) | (35) |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Net sales | 3,684 | 3,153 | 7,314 | 6,296 |
Cost of sales | 2,958 | 2,498 | 5,905 | 5,042 |
Selling, general and administrative | 241 | 202 | 504 | 421 |
Amortization | 30 | 29 | 60 | 58 |
Restructuring | 15 | 31 | 35 | 83 |
Total operating expenses | 3,244 | 2,760 | 6,504 | 5,604 |
Operating income (loss) | 440 | 393 | 810 | 692 |
Interest expense | (2) | (4) | (3) | (5) |
Other (expense) income, net | 61 | 28 | 169 | 67 |
Income from continuing operations before income taxes and equity income | 499 | 417 | 976 | 754 |
Income tax expense | (93) | (55) | (162) | (89) |
Income from continuing operations before equity income | 406 | 362 | 814 | 665 |
Equity income, net of tax | 8 | 7 | 13 | 18 |
Equity in net income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Income from continuing operations | 414 | 369 | 827 | 683 |
Income from discontinued operations, net of tax | 0 | 80 | 0 | 203 |
Net income | 414 | 449 | 827 | 886 |
Net income attributable to noncontrolling interest | 12 | 17 | 21 | 34 |
Net income attributable to Aptiv | 402 | 432 | 806 | 852 |
Eliminations | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest expense | 70 | 76 | 148 | 149 |
Other (expense) income, net | (70) | (76) | (148) | (149) |
Income from continuing operations before income taxes and equity income | 0 | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Income from continuing operations before equity income | 0 | 0 | 0 | 0 |
Equity income, net of tax | 0 | 0 | 0 | 0 |
Equity in net income (loss) of subsidiaries | (516) | (914) | (1,243) | (1,677) |
Income from continuing operations | (516) | (914) | (1,243) | (1,677) |
Income from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income | (516) | (914) | (1,243) | (1,677) |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to Aptiv | $ (516) | $ (914) | $ (1,243) | $ (1,677) |
Supplemental Guarantor And No98
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements Statement of Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income | $ 303 | $ 386 | $ 619 | $ 738 |
Currency translation adjustments | (193) | 103 | (132) | 189 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | (10) | 4 | (33) | 43 |
Employee benefit plans adjustment, net of tax | 9 | 1 | 10 | 5 |
Other comprehensive income (loss) | (194) | 108 | (155) | 237 |
Equity in other comprehensive income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Comprehensive income | 109 | 494 | 464 | 975 |
Comprehensive income attributable to noncontrolling interests | 4 | 20 | 17 | 38 |
Comprehensive income attributable to Aptiv | 105 | 474 | 447 | 937 |
Reportable Legal Entities | Parent | ||||
Net income | 291 | 369 | 598 | 704 |
Currency translation adjustments | 90 | (73) | 53 | (103) |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | 0 | 0 | 0 | 0 |
Employee benefit plans adjustment, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 90 | (73) | 53 | (103) |
Equity in other comprehensive income (loss) of subsidiaries | (276) | 178 | (204) | 336 |
Comprehensive income | 105 | 474 | 447 | 937 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Aptiv | 105 | 474 | 447 | 937 |
Reportable Legal Entities | Subsidiary Guarantors | ||||
Net income | 230 | 460 | 594 | 860 |
Currency translation adjustments | 0 | 0 | 0 | 0 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | 0 | 0 | 0 | 0 |
Employee benefit plans adjustment, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Equity in other comprehensive income (loss) of subsidiaries | (125) | 14 | (147) | 77 |
Comprehensive income | 105 | 474 | 447 | 937 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Aptiv | 105 | 474 | 447 | 937 |
Reportable Legal Entities | Subsidiary Issuer/Guarantor | ||||
Net income | (116) | 22 | (157) | (35) |
Currency translation adjustments | 0 | 0 | 0 | 0 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | 0 | 0 | 0 | 0 |
Employee benefit plans adjustment, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Equity in other comprehensive income (loss) of subsidiaries | (20) | 13 | 1 | 61 |
Comprehensive income | (136) | 35 | (156) | 26 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Aptiv | (136) | 35 | (156) | 26 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Net income | 414 | 449 | 827 | 886 |
Currency translation adjustments | (283) | 176 | (185) | 292 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | (10) | 4 | (33) | 43 |
Employee benefit plans adjustment, net of tax | 9 | 1 | 10 | 5 |
Other comprehensive income (loss) | (284) | 181 | (208) | 340 |
Equity in other comprehensive income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
Comprehensive income | 130 | 630 | 619 | 1,226 |
Comprehensive income attributable to noncontrolling interests | 4 | 20 | 17 | 38 |
Comprehensive income attributable to Aptiv | 126 | 610 | 602 | 1,188 |
Eliminations | ||||
Net income | (516) | (914) | (1,243) | (1,677) |
Currency translation adjustments | 0 | 0 | 0 | 0 |
Net change in unrecognized gain (loss) on derivative instruments, net of tax | 0 | 0 | 0 | 0 |
Employee benefit plans adjustment, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Equity in other comprehensive income (loss) of subsidiaries | 421 | (205) | 350 | (474) |
Comprehensive income | (95) | (1,119) | (893) | (2,151) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income attributable to Aptiv | $ (95) | $ (1,119) | $ (893) | $ (2,151) |
Supplemental Guarantor And No99
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Cash and cash equivalents | $ 970 | $ 1,596 |
Restricted cash | 1 | 1 |
Accounts receivable, net | 2,598 | 2,440 |
Intercompany receivables, current | 0 | 0 |
Inventories | 1,265 | 1,083 |
Other current assets | 506 | 521 |
Total current assets | 5,340 | 5,641 |
Intercompany receivables, long-term | 0 | 0 |
Property, net | 2,972 | 2,804 |
Investments in affiliates | 99 | 91 |
Investments in subsidiaries | 0 | 0 |
Intangible assets, net | 3,402 | 3,163 |
Other long-term assets | 503 | 470 |
Total long-term assets | 6,976 | 6,528 |
Total assets | 12,316 | 12,169 |
Short-term debt | 22 | 17 |
Accounts payable | 2,307 | 2,227 |
Intercompany payables, current | 0 | 0 |
Accrued liabilities | 1,109 | 1,296 |
Total current liabilities | 3,438 | 3,540 |
Long-term debt | 4,067 | 4,132 |
Intercompany payables, long-term | 0 | 0 |
Pension benefit obligations | 432 | 454 |
Other long-term liabilities | 621 | 526 |
Total long-term liabilities | 5,120 | 5,112 |
Total liabilities | 8,558 | 8,652 |
Total Aptiv shareholders' equity | 3,523 | 3,299 |
Noncontrolling interest | 235 | 218 |
Total shareholders' equity | 3,758 | 3,517 |
Total liabilities and shareholders' equity | 12,316 | 12,169 |
Reportable Legal Entities | Parent | ||
Cash and cash equivalents | 2 | 1 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivables, current | 6 | 50 |
Inventories | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | 8 | 51 |
Intercompany receivables, long-term | 0 | 0 |
Property, net | 0 | 0 |
Investments in affiliates | 0 | 0 |
Investments in subsidiaries | 6,606 | 11,987 |
Intangible assets, net | 0 | 0 |
Other long-term assets | 60 | 60 |
Total long-term assets | 6,666 | 12,047 |
Total assets | 6,674 | 12,098 |
Short-term debt | 0 | 0 |
Accounts payable | 0 | 2 |
Intercompany payables, current | 151 | 5,689 |
Accrued liabilities | 35 | 91 |
Total current liabilities | 186 | 5,782 |
Long-term debt | 2,965 | 3,017 |
Intercompany payables, long-term | 0 | 0 |
Pension benefit obligations | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total long-term liabilities | 2,965 | 3,017 |
Total liabilities | 3,151 | 8,799 |
Total Aptiv shareholders' equity | 3,523 | 3,299 |
Noncontrolling interest | 0 | 0 |
Total shareholders' equity | 3,523 | 3,299 |
Total liabilities and shareholders' equity | 6,674 | 12,098 |
Reportable Legal Entities | Subsidiary Guarantors | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivables, current | 15 | 16 |
Inventories | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | 15 | 16 |
Intercompany receivables, long-term | 0 | 0 |
Property, net | 0 | 0 |
Investments in affiliates | 0 | 0 |
Investments in subsidiaries | 10,408 | 13,707 |
Intangible assets, net | 0 | 0 |
Other long-term assets | 0 | 0 |
Total long-term assets | 10,408 | 13,707 |
Total assets | 10,423 | 13,723 |
Short-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Intercompany payables, current | 4,307 | 1,736 |
Accrued liabilities | 0 | 0 |
Total current liabilities | 4,307 | 1,736 |
Long-term debt | 0 | 0 |
Intercompany payables, long-term | 0 | 0 |
Pension benefit obligations | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total long-term liabilities | 0 | 0 |
Total liabilities | 4,307 | 1,736 |
Total Aptiv shareholders' equity | 6,116 | 11,987 |
Noncontrolling interest | 0 | 0 |
Total shareholders' equity | 6,116 | 11,987 |
Total liabilities and shareholders' equity | 10,423 | 13,723 |
Reportable Legal Entities | Subsidiary Issuer/Guarantor | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivables, current | 2,088 | 82 |
Inventories | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | 2,088 | 82 |
Intercompany receivables, long-term | 768 | 768 |
Property, net | 0 | 0 |
Investments in affiliates | 0 | 0 |
Investments in subsidiaries | 2,012 | 3,416 |
Intangible assets, net | 0 | 0 |
Other long-term assets | 7 | 8 |
Total long-term assets | 2,787 | 4,192 |
Total assets | 4,875 | 4,274 |
Short-term debt | 18 | 13 |
Accounts payable | 0 | 0 |
Intercompany payables, current | 1,535 | 1,032 |
Accrued liabilities | 10 | 10 |
Total current liabilities | 1,563 | 1,055 |
Long-term debt | 1,069 | 1,078 |
Intercompany payables, long-term | 1,334 | 1,297 |
Pension benefit obligations | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total long-term liabilities | 2,403 | 2,375 |
Total liabilities | 3,966 | 3,430 |
Total Aptiv shareholders' equity | 909 | 844 |
Noncontrolling interest | 0 | 0 |
Total shareholders' equity | 909 | 844 |
Total liabilities and shareholders' equity | 4,875 | 4,274 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||
Cash and cash equivalents | 968 | 1,595 |
Restricted cash | 1 | 1 |
Accounts receivable, net | 2,598 | 2,440 |
Intercompany receivables, current | 3,884 | 9,867 |
Inventories | 1,265 | 1,083 |
Other current assets | 506 | 521 |
Total current assets | 9,222 | 15,507 |
Intercompany receivables, long-term | 1,432 | 1,366 |
Property, net | 2,972 | 2,804 |
Investments in affiliates | 99 | 91 |
Investments in subsidiaries | 0 | 0 |
Intangible assets, net | 3,402 | 3,163 |
Other long-term assets | 436 | 402 |
Total long-term assets | 8,341 | 7,826 |
Total assets | 17,563 | 23,333 |
Short-term debt | 4 | 4 |
Accounts payable | 2,307 | 2,225 |
Intercompany payables, current | 0 | 1,558 |
Accrued liabilities | 1,064 | 1,195 |
Total current liabilities | 3,375 | 4,982 |
Long-term debt | 33 | 37 |
Intercompany payables, long-term | 866 | 837 |
Pension benefit obligations | 432 | 454 |
Other long-term liabilities | 621 | 526 |
Total long-term liabilities | 1,952 | 1,854 |
Total liabilities | 5,327 | 6,836 |
Total Aptiv shareholders' equity | 12,001 | 16,279 |
Noncontrolling interest | 235 | 218 |
Total shareholders' equity | 12,236 | 16,497 |
Total liabilities and shareholders' equity | 17,563 | 23,333 |
Eliminations | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 0 | 0 |
Intercompany receivables, current | (5,993) | (10,015) |
Inventories | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | (5,993) | (10,015) |
Intercompany receivables, long-term | (2,200) | (2,134) |
Property, net | 0 | 0 |
Investments in affiliates | 0 | 0 |
Investments in subsidiaries | (19,026) | (29,110) |
Intangible assets, net | 0 | 0 |
Other long-term assets | 0 | 0 |
Total long-term assets | (21,226) | (31,244) |
Total assets | (27,219) | (41,259) |
Short-term debt | 0 | 0 |
Accounts payable | 0 | 0 |
Intercompany payables, current | (5,993) | (10,015) |
Accrued liabilities | 0 | 0 |
Total current liabilities | (5,993) | (10,015) |
Long-term debt | 0 | 0 |
Intercompany payables, long-term | (2,200) | (2,134) |
Pension benefit obligations | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Total long-term liabilities | (2,200) | (2,134) |
Total liabilities | (8,193) | (12,149) |
Total Aptiv shareholders' equity | (19,026) | (29,110) |
Noncontrolling interest | 0 | 0 |
Total shareholders' equity | (19,026) | (29,110) |
Total liabilities and shareholders' equity | $ (27,219) | $ (41,259) |
Supplemental Guarantor And N100
Supplemental Guarantor And Non-Guarantor Condensed Consolidating Financial Statements Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Payments of Distributions to Affiliates | $ 0 | |||
Net cash provided by (used in) operating activities from continuing operations | 752 | $ 672 | ||
Net cash used in operating activities from discontinued operations | (52) | 217 | ||
Net cash provided by operating activities | 700 | 889 | ||
Capital expenditures | (449) | (311) | ||
Proceeds from sale of property / investments | (6) | (2) | ||
Cost of business acquisitions, net of cash acquired | (512) | (40) | ||
Return of Investment in Subsidiaries | 0 | |||
Cost of technology investments | 0 | (25) | ||
Loans to affiliates | 0 | 0 | ||
Net cash used in investing activities from continuing operations | (961) | (386) | ||
Net cash used in investing activities from discontinued operations | 0 | (77) | ||
Net cash used in investing activities | (961) | (463) | ||
Net proceeds (repayments) under other short-term debt agreements | (15) | (5) | ||
Contingent consideration and deferred acquisition purchase price payments | (5) | (20) | ||
Dividend payments of consolidated affiliates to minority shareholders | 0 | (10) | ||
Proceeds from borrowings from affiliates | 0 | 0 | ||
Payments on borrowings from affiliates | 0 | |||
Repurchase of ordinary shares | (149) | (289) | ||
Distribution of cash dividends | (117) | (156) | ||
Taxes withheld and paid on employees' restricted share awards | (35) | (33) | ||
Net cash used in financing activities | (321) | (513) | ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (44) | 41 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (626) | (46) | ||
Cash, cash equivalents and restricted cash | 971 | 793 | $ 1,597 | $ 839 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 78 | ||
Cash, cash equivalents and restricted cash of continuing operations | 971 | 715 | ||
Settlement of derivatives | 6 | 12 | ||
Proceeds from (Repayments of) Related Party Debt | 0 | |||
Reportable Legal Entities | Parent | ||||
Payments of Distributions to Affiliates | 0 | |||
Net cash provided by (used in) operating activities from continuing operations | (91) | (35) | ||
Net cash used in operating activities from discontinued operations | 0 | 0 | ||
Net cash provided by operating activities | (91) | (35) | ||
Capital expenditures | 0 | 0 | ||
Proceeds from sale of property / investments | 0 | 0 | ||
Cost of business acquisitions, net of cash acquired | 0 | 0 | ||
Return of Investment in Subsidiaries | 5,879 | |||
Cost of technology investments | 0 | |||
Loans to affiliates | 0 | 0 | ||
Net cash used in investing activities from continuing operations | 5,879 | 0 | ||
Net cash used in investing activities from discontinued operations | 0 | 0 | ||
Net cash used in investing activities | 5,879 | 0 | ||
Net proceeds (repayments) under other short-term debt agreements | 0 | 0 | ||
Contingent consideration and deferred acquisition purchase price payments | 0 | 0 | ||
Dividend payments of consolidated affiliates to minority shareholders | 0 | |||
Proceeds from borrowings from affiliates | 358 | 478 | ||
Payments on borrowings from affiliates | (5,879) | |||
Repurchase of ordinary shares | (149) | (289) | ||
Distribution of cash dividends | (117) | (156) | ||
Taxes withheld and paid on employees' restricted share awards | 0 | 0 | ||
Net cash used in financing activities | (5,787) | 33 | ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 0 | 0 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 1 | (2) | ||
Cash, cash equivalents and restricted cash | 2 | 0 | 1 | 2 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 0 | ||
Cash, cash equivalents and restricted cash of continuing operations | 2 | 0 | ||
Settlement of derivatives | 0 | 0 | ||
Proceeds from (Repayments of) Related Party Debt | 0 | |||
Reportable Legal Entities | Subsidiary Guarantors | ||||
Payments of Distributions to Affiliates | 5,879 | |||
Net cash provided by (used in) operating activities from continuing operations | 0 | 26 | ||
Net cash used in operating activities from discontinued operations | 0 | 0 | ||
Net cash provided by operating activities | 0 | 26 | ||
Capital expenditures | 0 | 0 | ||
Proceeds from sale of property / investments | 0 | 0 | ||
Cost of business acquisitions, net of cash acquired | 0 | 0 | ||
Return of Investment in Subsidiaries | 4,971 | |||
Cost of technology investments | 0 | |||
Loans to affiliates | 0 | (26) | ||
Net cash used in investing activities from continuing operations | 4,971 | (26) | ||
Net cash used in investing activities from discontinued operations | 0 | 0 | ||
Net cash used in investing activities | 4,971 | (26) | ||
Net proceeds (repayments) under other short-term debt agreements | 0 | 0 | ||
Contingent consideration and deferred acquisition purchase price payments | 0 | 0 | ||
Dividend payments of consolidated affiliates to minority shareholders | 0 | |||
Proceeds from borrowings from affiliates | 2,627 | 0 | ||
Payments on borrowings from affiliates | (1,719) | |||
Repurchase of ordinary shares | 0 | 0 | ||
Distribution of cash dividends | 0 | 0 | ||
Taxes withheld and paid on employees' restricted share awards | 0 | 0 | ||
Net cash used in financing activities | (4,971) | 0 | ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 0 | 0 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 0 | ||
Cash, cash equivalents and restricted cash of continuing operations | 0 | 0 | ||
Settlement of derivatives | 0 | 0 | ||
Proceeds from (Repayments of) Related Party Debt | 0 | |||
Reportable Legal Entities | Subsidiary Issuer/Guarantor | ||||
Payments of Distributions to Affiliates | 0 | |||
Net cash provided by (used in) operating activities from continuing operations | 0 | 0 | ||
Net cash used in operating activities from discontinued operations | 0 | 0 | ||
Net cash provided by operating activities | 0 | 0 | ||
Capital expenditures | 0 | 0 | ||
Proceeds from sale of property / investments | 0 | 0 | ||
Cost of business acquisitions, net of cash acquired | 0 | 0 | ||
Return of Investment in Subsidiaries | 0 | |||
Cost of technology investments | 0 | |||
Loans to affiliates | 0 | 0 | ||
Net cash used in investing activities from continuing operations | 0 | 0 | ||
Net cash used in investing activities from discontinued operations | 0 | 0 | ||
Net cash used in investing activities | 0 | 0 | ||
Net proceeds (repayments) under other short-term debt agreements | 0 | 0 | ||
Contingent consideration and deferred acquisition purchase price payments | 0 | 0 | ||
Dividend payments of consolidated affiliates to minority shareholders | 0 | |||
Proceeds from borrowings from affiliates | 0 | 0 | ||
Payments on borrowings from affiliates | 0 | |||
Repurchase of ordinary shares | 0 | 0 | ||
Distribution of cash dividends | 0 | 0 | ||
Taxes withheld and paid on employees' restricted share awards | 0 | 0 | ||
Net cash used in financing activities | 0 | 0 | ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 0 | 0 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, cash equivalents and restricted cash | 0 | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 0 | ||
Cash, cash equivalents and restricted cash of continuing operations | 0 | 0 | ||
Settlement of derivatives | 0 | 0 | ||
Proceeds from (Repayments of) Related Party Debt | 0 | |||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Payments of Distributions to Affiliates | 4,971 | |||
Net cash provided by (used in) operating activities from continuing operations | 843 | 681 | ||
Net cash used in operating activities from discontinued operations | (52) | 217 | ||
Net cash provided by operating activities | 791 | 898 | ||
Capital expenditures | (449) | (311) | ||
Proceeds from sale of property / investments | (6) | (2) | ||
Cost of business acquisitions, net of cash acquired | (512) | (40) | ||
Return of Investment in Subsidiaries | 0 | |||
Cost of technology investments | (25) | |||
Loans to affiliates | (2,985) | (452) | ||
Net cash used in investing activities from continuing operations | 3,652 | (838) | ||
Net cash used in investing activities from discontinued operations | 0 | (77) | ||
Net cash used in investing activities | 3,652 | (915) | ||
Net proceeds (repayments) under other short-term debt agreements | (15) | (5) | ||
Contingent consideration and deferred acquisition purchase price payments | (5) | (20) | ||
Dividend payments of consolidated affiliates to minority shareholders | (10) | |||
Proceeds from borrowings from affiliates | 0 | 0 | ||
Payments on borrowings from affiliates | 0 | |||
Repurchase of ordinary shares | 0 | 0 | ||
Distribution of cash dividends | 0 | 0 | ||
Taxes withheld and paid on employees' restricted share awards | (35) | (33) | ||
Net cash used in financing activities | (5,026) | (68) | ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (44) | 41 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | (627) | (44) | ||
Cash, cash equivalents and restricted cash | 969 | 793 | 1,596 | 837 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 78 | ||
Cash, cash equivalents and restricted cash of continuing operations | 969 | 715 | ||
Settlement of derivatives | 6 | 12 | ||
Proceeds from (Repayments of) Related Party Debt | 7,598 | |||
Eliminations | ||||
Payments of Distributions to Affiliates | (10,850) | |||
Net cash provided by (used in) operating activities from continuing operations | 0 | 0 | ||
Net cash used in operating activities from discontinued operations | 0 | 0 | ||
Net cash provided by operating activities | 0 | 0 | ||
Capital expenditures | 0 | 0 | ||
Proceeds from sale of property / investments | 0 | 0 | ||
Cost of business acquisitions, net of cash acquired | 0 | 0 | ||
Return of Investment in Subsidiaries | (10,850) | |||
Cost of technology investments | 0 | |||
Loans to affiliates | 2,985 | 478 | ||
Net cash used in investing activities from continuing operations | (15,463) | 478 | ||
Net cash used in investing activities from discontinued operations | 0 | 0 | ||
Net cash used in investing activities | (15,463) | 478 | ||
Net proceeds (repayments) under other short-term debt agreements | 0 | 0 | ||
Contingent consideration and deferred acquisition purchase price payments | 0 | 0 | ||
Dividend payments of consolidated affiliates to minority shareholders | 0 | |||
Proceeds from borrowings from affiliates | (2,985) | (478) | ||
Payments on borrowings from affiliates | 7,598 | |||
Repurchase of ordinary shares | 0 | 0 | ||
Distribution of cash dividends | 0 | 0 | ||
Taxes withheld and paid on employees' restricted share awards | 0 | 0 | ||
Net cash used in financing activities | 15,463 | (478) | ||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | 0 | 0 | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | ||
Cash, cash equivalents and restricted cash | 0 | 0 | $ 0 | $ 0 |
Cash, cash equivalents and restricted cash of discontinued operations | 0 | 0 | ||
Cash, cash equivalents and restricted cash of continuing operations | 0 | 0 | ||
Settlement of derivatives | 0 | $ 0 | ||
Proceeds from (Repayments of) Related Party Debt | $ (7,598) |
Segment Reporting Reconciliatio
Segment Reporting Reconciliation of Sales and Operating Data (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 3,684 | $ 3,153 | $ 7,314 | $ 6,296 | |
Depreciation and amortization | 156 | 130 | 311 | 256 | |
Adjusted operating income | 474 | 398 | 901 | 750 | |
Operating income | 421 | 364 | 795 | 657 | |
Equity income, net of tax | 8 | 7 | 13 | 18 | |
Net income attributable to noncontrolling interest | 12 | 9 | 21 | 18 | |
Operating Segments | Signal and Power Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,650 | 2,346 | 5,267 | 4,688 | |
Depreciation and amortization | 118 | 105 | 237 | 207 | |
Adjusted operating income | 386 | 312 | 737 | 621 | |
Operating income | 357 | 296 | 679 | 587 | |
Equity income, net of tax | 8 | 7 | 13 | 18 | |
Net income attributable to noncontrolling interest | 12 | 9 | 21 | 18 | |
Operating Segments | Advanced Safety and User Experience | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,044 | 823 | 2,076 | 1,644 | |
Depreciation and amortization | 38 | 25 | 74 | 49 | |
Adjusted operating income | 88 | 86 | 164 | 129 | |
Operating income | 64 | 68 | 116 | 70 | |
Equity income, net of tax | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | [1] | (10) | (16) | (29) | (36) |
Depreciation and amortization | [1] | 0 | 0 | 0 | 0 |
Adjusted operating income | [1] | 0 | 0 | 0 | 0 |
Operating income | [1] | 0 | 0 | 0 | 0 |
Equity income, net of tax | [1] | 0 | 0 | 0 | 0 |
Net income attributable to noncontrolling interest | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Eliminations and Other includes the elimination of inter-segment transactions. |
Segment Reporting Reconcilia102
Segment Reporting Reconciliation of Adjusted OI to Net Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reconciliation of Segment Adjusted OI to Consolidated Net Income | |||||
Adjusted operating income | $ 474 | $ 398 | $ 901 | $ 750 | |
Restructuring | (15) | (31) | (35) | (83) | |
Other acquisition and portfolio project costs | (22) | (3) | (41) | (9) | |
Asset impairments | (1) | (1) | (1) | ||
Deferred compensation related to nutonomy acquisition | (15) | (29) | |||
Operating income | 421 | 364 | 795 | 657 | |
Interest expense | (36) | (35) | (70) | (68) | |
Other (expense) income, net | (7) | 8 | 23 | (15) | |
Income from continuing operations before income taxes and equity income | 378 | 337 | 748 | 574 | |
Income tax expense | (83) | (38) | (142) | (57) | |
Equity income, net of tax | 8 | 7 | 13 | 18 | |
Income from continuing operations | 303 | 306 | 619 | 535 | |
Income from discontinued operations, net of tax | 0 | 80 | 0 | 203 | |
Net income | 303 | 386 | 619 | 738 | |
Net income attributable to noncontrolling interest | 12 | 17 | 21 | 34 | |
Net income attributable to Aptiv | 291 | 369 | 598 | 704 | |
Signal and Power Solutions | |||||
Reconciliation of Segment Adjusted OI to Consolidated Net Income | |||||
Restructuring | (11) | (14) | (29) | (27) | |
Advanced Safety and User Experience | |||||
Reconciliation of Segment Adjusted OI to Consolidated Net Income | |||||
Restructuring | (4) | (17) | (6) | (56) | |
Operating Segments | Signal and Power Solutions | |||||
Reconciliation of Segment Adjusted OI to Consolidated Net Income | |||||
Adjusted operating income | 386 | 312 | 737 | 621 | |
Restructuring | (11) | (14) | (29) | (27) | |
Other acquisition and portfolio project costs | (17) | (2) | (28) | (7) | |
Asset impairments | (1) | (1) | 0 | ||
Deferred compensation related to nutonomy acquisition | 0 | 0 | |||
Operating income | 357 | 296 | 679 | 587 | |
Equity income, net of tax | 8 | 7 | 13 | 18 | |
Operating Segments | Advanced Safety and User Experience | |||||
Reconciliation of Segment Adjusted OI to Consolidated Net Income | |||||
Adjusted operating income | 88 | 86 | 164 | 129 | |
Restructuring | (4) | (17) | (6) | (56) | |
Other acquisition and portfolio project costs | (5) | (1) | (13) | (2) | |
Asset impairments | 0 | 0 | (1) | ||
Deferred compensation related to nutonomy acquisition | (15) | (29) | |||
Operating income | 64 | 68 | 116 | 70 | |
Equity income, net of tax | 0 | 0 | 0 | 0 | |
Intersegment Eliminations | |||||
Reconciliation of Segment Adjusted OI to Consolidated Net Income | |||||
Adjusted operating income | [1] | 0 | 0 | 0 | 0 |
Restructuring | 0 | 0 | 0 | 0 | |
Other acquisition and portfolio project costs | 0 | 0 | 0 | 0 | |
Asset impairments | 0 | 0 | 0 | ||
Deferred compensation related to nutonomy acquisition | 0 | 0 | |||
Operating income | [1] | 0 | 0 | 0 | 0 |
Equity income, net of tax | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
[1] | Eliminations and Other includes the elimination of inter-segment transactions. |
Discontinued Operations Narrati
Discontinued Operations Narrative (Details) - USD ($) $ in Millions | Dec. 04, 2017 | Nov. 22, 2017 | Sep. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 07, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Distribution Date | Dec. 4, 2017 | ||||||
Record Date | Nov. 22, 2017 | ||||||
Dividend from Delphi Technologies Spin-Off | $ 1,148 | ||||||
Other cash transferred from Delphi Technologies | 180 | ||||||
Accounts receivable to be remitted to Delphi Technologies | $ 103 | $ 103 | 123 | ||||
Accounts payable to be remitted on behalf of Delphi Technologies | 60 | 60 | $ 132 | ||||
Delphi Technologies Debt [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Long-term Debt, Gross | $ 1,550 | ||||||
JPMorgan Chase Bank, N.A. | Spin-Off Credit Agreement | Spin-Off Tranche A Term Loan | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Loans Payable | $ 750 | ||||||
Senior Notes | Spin-Off Senior Notes, 5.000% Due 2025 | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Debt Instrument, Face Amount | $ 800 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||||||
Debt Instrument, Maturity Date | Oct. 1, 2025 | ||||||
Powertrain Systems | Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Other income (expense), net | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Transition Services Agreement Fees | $ 3 | $ 6 |
Discontinued Operations Reconci
Discontinued Operations Reconciliation of Major Classes of Profit or Loss of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations, net of tax | $ 0 | $ 80 | $ 0 | $ 203 |
Income from discontinued operations attributable to Delphi | $ 0 | 72 | $ 0 | 187 |
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | Powertrain Systems | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 1,165 | 2,314 | ||
Cost of sales | 921 | 1,822 | ||
Selling, general and administrative | 70 | 133 | ||
DisposalGroupIncludingDiscontinuedOperationAmortization | 4 | 8 | ||
DisposalGroupIncludingDiscontinuedOperationRestructuring | 66 | 76 | ||
Disposal Group, Including Discontinued Operation, Other Income | 0 | |||
Disposal Group, Including Discontinued Operation, Other Expense | 6 | |||
Income from discontinued operations before income taxes and equity income | 104 | 269 | ||
Discontinued Operation, Tax Effect of Discontinued Operation | 24 | 66 | ||
Income from discontinued operations, net of tax | 80 | 203 | ||
Income from discontinued operations attributable to noncontrolling interests | 8 | 16 | ||
Income from discontinued operations attributable to Delphi | 72 | 187 | ||
Income from discontinued operations before income taxes attributable to Delphi | 95 | 250 | ||
Discontinued Operation, Tax Effect Of Discontinued Operation, Attributable to Noncontrolling Interest | $ 1 | $ 3 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 3,684 | $ 3,153 | $ 7,314 | $ 6,296 | |
North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,416 | 1,223 | 2,767 | 2,481 | |
Europe, Middle East & Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,233 | 1,058 | 2,502 | 2,089 | |
Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 967 | 805 | 1,903 | 1,596 | |
South America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 68 | 67 | 142 | 130 | |
Intersegment Eliminations | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | (10) | (16) | (29) | (36) |
Intersegment Eliminations | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | (2) | (4) | (6) | |
Intersegment Eliminations | Europe, Middle East & Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | (4) | (5) | (9) | (12) | |
Intersegment Eliminations | Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | (6) | (9) | (16) | (18) | |
Intersegment Eliminations | South America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Advanced Safety and User Experience | Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,044 | 823 | 2,076 | 1,644 | |
Advanced Safety and User Experience | Operating Segments | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 344 | 286 | 679 | 593 | |
Advanced Safety and User Experience | Operating Segments | Europe, Middle East & Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 433 | 332 | 870 | 655 | |
Advanced Safety and User Experience | Operating Segments | Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 266 | 205 | 525 | 394 | |
Advanced Safety and User Experience | Operating Segments | South America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1 | 0 | 2 | 2 | |
Signal and Power Solutions | Operating Segments | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 2,650 | 2,346 | 5,267 | 4,688 | |
Signal and Power Solutions | Operating Segments | North America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 1,072 | 939 | 2,092 | 1,894 | |
Signal and Power Solutions | Operating Segments | Europe, Middle East & Africa | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 804 | 731 | 1,641 | 1,446 | |
Signal and Power Solutions | Operating Segments | Asia Pacific | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | 707 | 609 | 1,394 | 1,220 | |
Signal and Power Solutions | Operating Segments | South America | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 67 | $ 67 | $ 140 | $ 128 | |
[1] | Eliminations and Other includes the elimination of inter-segment transactions. |
Revenue Costs to Obtain a Contr
Revenue Costs to Obtain a Contract (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | $ 56 | $ 56 | $ 36 | ||
Capitalized Contract Cost, Amortization | 1 | $ 1 | 2 | $ 2 | |
Other Current Assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | 8 | 8 | 5 | ||
Other Long-Term Assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Capitalized Contract Cost, Net | $ 48 | $ 48 | $ 31 |