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Revenue
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue REVENUE
Refer to Note 2. Significant Accounting Policies for a complete description of the Company’s revenue recognition accounting policy.
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 for production parts 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.
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 nine months ended September 30, 2022 and 2021. Information concerning geographic market reflects the manufacturing location.
For the Three Months Ended September 30, 2022:Signal and Power SolutionsAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$1,317 $352 $(2)$1,667 
Europe, Middle East and Africa785 553 (3)1,335 
Asia Pacific1,214 294 (4)1,504 
South America108 — — 108 
Total net sales$3,424 $1,199 $(9)$4,614 

For the Three Months Ended September 30, 2021:Signal and Power SolutionsAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$973 $295 $(3)$1,265 
Europe, Middle East and Africa737 405 (2)1,140 
Asia Pacific923 259 (5)1,177 
South America72 — — 72 
Total net sales$2,705 $959 $(10)$3,654 
For the Nine Months Ended September 30, 2022:Signal and Power SolutionsAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$3,740 $1,022 $(6)$4,756 
Europe, Middle East and Africa2,440 1,525 (8)3,957 
Asia Pacific3,094 760 (13)3,841 
South America295 — — 295 
Total net sales$9,569 $3,307 $(27)$12,849 
For the Nine Months Ended September 30, 2021:Signal and Power SolutionsAdvanced Safety and User ExperienceEliminations and OtherTotal
(in millions)
Geographic Market
North America$3,052 $891 $(6)$3,937 
Europe, Middle East and Africa2,629 1,298 (8)3,919 
Asia Pacific2,682 751 (15)3,418 
South America210 — — 210 
Total net sales$8,573 $2,940 $(29)$11,484 
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 September 30, 2022 and December 31, 2021.
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 business. These payments to customers are generally recognized as a reduction to revenue at the time of the commitment to make these payments. However, certain other payments to customers, 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 September 30, 2022 and December 31, 2021, Aptiv has recorded $67 million (of which $20 million was classified within other current assets and $47 million was classified within other long-term assets) and $92 million (of which $34 million was classified within other current assets and $58 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 $7 million and $5 million for the three months ended September 30, 2022 and 2021, respectively, and $20 million and $19 million for the nine months ended September 30, 2022 and 2021, respectively.