XML 36 R25.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Share-Based Compensation | 9 Months Ended
--- | ---
Sep. 30, 2022
Share-Based Payment Arrangement [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 order to align management compensation with Aptiv’s overall business strategy. In addition, the Company has competitive and market-appropriate ownership requirements for its directors and officers. 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. Board of Director Awards Aptiv has granted RSUs to the Board of Directors as detailed in the table below:
Grant Date |  | RSUs granted |  | Grant Date Fair Value (1) |  | Vesting Date |  | Shares Issued Upon Vesting |  | Fair Value of Shares at Issuance |  | Shares Withheld to Cover Withholding Taxes
(dollars in millions)
April 2022 |  | 23,387 |  |  | $ | 2 |  |  | April 2023 |  | N/A |  | N/A |  | N/A
April 2021 |  | 17,589 |  |  | 3 |  |  | April 2022 |  | 15,633 |  |  | $ | 2 |  |  | 1,956 |
April 2020 |  | 48,745 |  |  | 3 |  |  | April 2021 |  | 41,896 |  |  | 6 |  |  | 6,849 |
(1)Determined based on the closing price of the Company’s ordinary shares on the date of the grant. 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 40% (25% prior to 2021) 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 60% (75% prior to 2021) 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% (150% for the 2019 and 2020 grants based on the executive performance grant modification in 2020) of his or her target performance-based award based on the Company’s performance against established company-wide performance metrics, which are:
Metric | 2020 - 2022 Grants |  |  | 2018 - 2019 Grants
Average return on net assets (1) | 33% |  |  | 50%
Cumulative net income | 33% |  |  | 25%
Relative total shareholder return (2) | 33% |  |  | 25%
(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. 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 2018 |  | 0.63 |  |  | $ | 61 |  |  | Annually on anniversary of grant date, 2019 - 2021 |  | December 31, 2020
February 2019 |  | 0.71 |  |  | 62 |  |  | Annually on anniversary of grant date, 2020 - 2022 |  | December 31, 2021
February 2020 |  | 0.75 |  |  | 62 |  |  | Annually on anniversary of grant date, 2021 - 2023 |  | December 31, 2022
February 2021 |  | 0.44 |  |  | 72 |  |  | Annually on anniversary of grant date, 2022 - 2024 |  | December 31, 2023
February 2022 |  | 0.59 |  |  | 80 |  |  | Annually on anniversary of grant date, 2023 - 2025 |  | December 31, 2024
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. Any new executives hired after the annual executive RSU grant date may be eligible to participate in the PLC LTIP. The Company has also granted additional awards to employees in certain periods under the PLC LTIP. Any off cycle grants made for new hires or to other employees 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 details of the shares issued upon vesting of the executive grants are as follows:
|  | Time-Based Awards |  | Performance-Based Awards
Vesting Date |  | Ordinary Shares Issued Upon Vesting |  | Fair Value of Shares at Issuance |  | Ordinary Shares Withheld to Cover Withholding Taxes |  | Ordinary Shares Issued Upon Vesting |  | Fair Value of Shares at Issuance |  | Ordinary Shares Withheld to Cover Withholding Taxes
|  | (dollars in millions)
Q1 2022 |  | 354,600 |  |  | $ | 46 |  |  | 140,409 |  |  | 325,283 |  |  | $ | 42 |  |  | 136,143 |
Q1 2021 |  | 449,426 |  |  | 67 |  |  | 177,825 |  |  | 288,074 |  |  | 43 |  |  | 121,609 |
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, 2022 | 1,344 |  |  | $ | 131.40 |
Granted | 793 |  |  | 128.42 |
Vested | (371) |  |  | 96.95 |
Forfeited | (262) |  |  | 137.98 |
Nonvested, September 30, 2022 | 1,504 |  |  | 137.17 |
Aptiv recognized share-based compensation expense of $19 million ($19 million, net of tax) and $19 million ($19 million, net of tax) based on the Company’s best estimate of ultimate performance against the respective targets during the three months ended September 30, 2022 and 2021, respectively. Aptiv recognized share-based compensation expense of $65 million ($65 million, net of tax) and $76 million ($75 million, net of tax) based on the Company’s best estimate of ultimate performance against the respective targets during the nine months ended September 30, 2022 and 2021, 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 September 30, 2022, unrecognized compensation expense on a pre-tax basis of approximately $124 million is anticipated to be recognized over a weighted average period of approximately two years. For the nine months ended September 30, 2022 and 2021, approximately $36 million and $45 million, respectively, of cash was paid and reflected as a financing activity in the statements of cash flows related to the tax withholding for vested RSUs.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (l) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a)(1) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2) -URI https://asc.fasb.org/extlink&oid=128089324&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration