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Segment Reporting | 3 Months Ended
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Mar. 31, 2022
Segment Reporting [Abstract] |
Segment Reporting | SEGMENT REPORTING Aptiv operates its core business along the following operating segments, which are grouped on the basis of similar product, market and operating factors: •Signal and Power Solutions, which includes complete electrical architecture and component products. •Advanced Safety and User Experience, which includes vehicle technology and systems integration expertise in advanced safety, user experience and connectivity and security solutions, as well as advanced software development and autonomous driving technologies. •Eliminations and Other, which includes i) the elimination of inter-segment transactions, and ii) certain other expenses and income of a non-operating or strategic nature. The accounting policies of the segments are the same as those described in Note 2. Significant Accounting Policies, except that the disaggregated financial results for the segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for which Aptiv’s chief operating decision maker regularly reviews financial results to assess performance of, and make internal operating decisions about allocating resources to, the segments. Generally, Aptiv evaluates segment performance based on stand-alone segment net income before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments, gains (losses) on business divestitures and other transactions 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. Effective on January 1, 2022, the Company now excludes amortization expense of intangible assets from the calculation of Adjusted Operating Income, as reflected in the definition above. The Company’s management believes that the updated calculation of this non-GAAP financial measure will be more useful to both management and investors in their analysis of the Company’s results of operations due to recent and pending acquisitions. Amortization of intangible assets generally results from a write-up in the value of assets in connection with an acquisition. The Company believes that exclusion of amortization expense will facilitate more comparable operating results of the Company over time, between periods when the Company is more or less acquisitive and allows for improved comparison with both acquisitive and non-acquisitive peer companies. The historical presentation of Adjusted Operating Income in the tables below has been revised to be consistent with this updated calculation. Aptiv’s management utilizes Adjusted Operating Income as the key performance measure of segment income or loss to evaluate segment performance, and for planning and forecasting purposes to allocate resources to the segments, as management believes this measure is most reflective of the operational profitability or loss of Aptiv’s operating segments. Segment Adjusted Operating Income should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Aptiv, which is the most directly comparable financial measure to Adjusted Operating Income that is prepared in accordance with U.S. GAAP. Segment Adjusted Operating Income, as determined and measured by Aptiv, should also not be compared to similarly titled measures reported by other companies. Included below are sales and operating data for Aptiv’s segments for the three months ended March 31, 2022 and 2021.
| Signal and Power Solutions |  |  |  | Advanced Safety and User Experience |  | Eliminations and Other (1) |  | Total
| (in millions)
For the Three Months Ended March 31, 2022: |  |  |  |  |  |  |  |  |
Net sales | $ | 3,106 |  |  |  |  | $ | 1,082 |  |  | $ | (10) |  |  | $ | 4,178 |
Depreciation and amortization | $ | 146 |  |  |  |  | $ | 45 |  |  | $ | — |  |  | $ | 191 |
Adjusted operating income | $ | 308 |  |  |  |  | $ | 16 |  |  | $ | — |  |  | $ | 324 |
Operating income (loss) | $ | 257 |  |  |  |  | $ | (1) |  |  | $ | — |  |  | $ | 256 |
Equity income (loss), net of tax | $ | 4 |  |  |  |  | $ | (67) |  |  | $ | — |  |  | $ | (63) |
Net income attributable to noncontrolling interest | $ | 1 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
| Signal and Power Solutions |  |  |  | Advanced Safety and User Experience |  | Eliminations and Other (1) |  | Total
| (in millions)
For the Three Months Ended March 31, 2021: |  |  |  |  |  |  |  |  |
Net sales | $ | 3,022 |  |  |  |  | $ | 1,011 |  |  | $ | (10) |  |  | $ | 4,023 |
Depreciation and amortization | $ | 149 |  |  |  |  | $ | 44 |  |  | $ | — |  |  | $ | 193 |
Adjusted operating income (2) | $ | 406 |  |  |  |  | $ | 68 |  |  | $ | — |  |  | $ | 474 |
Operating income | $ | 372 |  |  |  |  | $ | 57 |  |  | $ | — |  |  | $ | 429 |
Equity income (loss), net of tax | $ | 3 |  |  |  |  | $ | (45) |  |  | $ | — |  |  | $ | (42) |
Net income attributable to noncontrolling interest | $ | 5 |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |
(1)Eliminations and Other includes the elimination of inter-segment transactions. (2)As described above, the calculation of adjusted operating income now excludes amortization expense. The historical presentation of adjusted operating income as shown in this table has been revised to be consistent with the updated calculation. The reconciliation of Adjusted Operating Income to operating income includes, as applicable, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments, gains (losses) on business divestitures and other transactions and deferred compensation related to acquisitions. The reconciliations of Adjusted Operating Income to net income attributable to Aptiv for the three months ended March 31, 2022 and 2021 are as follows:
| Signal and Power Solutions |  |  |  | Advanced Safety and User Experience |  |  |  | Total
| (in millions)
For the Three Months Ended March 31, 2022: |  |  |  |  |  |  |  |  |
Adjusted operating income | $ | 308 |  |  |  |  | $ | 16 |  |  |  |  | $ | 324 |
Amortization | (35) |  |  |  |  | (2) |  |  |  |  | (37) |
Restructuring | (9) |  |  |  |  | (13) |  |  |  |  | (22) |
Other acquisition and portfolio project costs | (7) |  |  |  |  | (2) |  |  |  |  | (9) |
Operating income (loss) | $ | 257 |  |  |  |  | $ | (1) |  |  |  |  | 256 |
Interest expense |  |  |  |  |  |  |  |  | (43) |
Other expense, net |  |  |  |  |  |  |  |  | (39) |
Income before income taxes and equity loss |  |  |  |  |  |  |  |  | 174 |
Income tax expense |  |  |  |  |  |  |  |  | (21) |
Equity loss, net of tax |  |  |  |  |  |  |  |  | (63) |
Net income |  |  |  |  |  |  |  |  | 90 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  | 1 |
Net income attributable to Aptiv |  |  |  |  |  |  |  |  | $ | 89 |
| Signal and Power Solutions |  |  |  | Advanced Safety and User Experience |  |  |  | Total
| (in millions)
For the Three Months Ended March 31, 2021: |  |  |  |  |  |  |  |  |
Adjusted operating income | $ | 406 |  |  |  |  | $ | 68 |  |  |  |  | $ | 474 |
Amortization | (35) |  |  |  |  | (2) |  |  |  |  | (37) |
Restructuring | 2 |  |  |  |  | (8) |  |  |  |  | (6) |
Other acquisition and portfolio project costs | (1) |  |  |  |  | (1) |  |  |  |  | (2) |
Operating income | $ | 372 |  |  |  |  | $ | 57 |  |  |  |  | 429 |
Interest expense |  |  |  |  |  |  |  |  | (40) |
Other income, net |  |  |  |  |  |  |  |  | 1 |
Income before income taxes and equity loss |  |  |  |  |  |  |  |  | 390 |
Income tax expense |  |  |  |  |  |  |  |  | (48) |
Equity loss, net of tax |  |  |  |  |  |  |  |  | (42) |
Net income |  |  |  |  |  |  |  |  | 300 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  |  |  | 5 |
Net income attributable to Aptiv |  |  |  |  |  |  |  |  | $ | 295 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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