Company: APTV
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001521332-25-000027
Chunk: 163

Company: Aptiv PLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 163
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 for its total aggregate warranty reserves, including product recall costs, across all of its operating segments as of March 31, 2025. The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of March 31, 2025 to be zero to $40 million.The table below summarizes the activity in the product warranty liability for the three months ended March 31, 2025: Warranty Obligations (in millions)Accrual balance at beginning of period$74 Provision for estimated warranties incurred during the period10 Changes in estimate for pre-existing warranties (1)32 Settlements(12)Foreign currency translation and other1 Accrual balance at end of period$105 

(1)In addition to amounts recorded to the product warranty liability, during the three months ended March 31, 2025, Aptiv recognized a $15 million recovery from a supplier related to a warranty matter. The current portion of supplier recoveries is recorded in accounts receivable, net and the non-current portion is recorded in other long-term assets in the consolidated balance sheets. Warranty expense, net of supplier recoveries was $27 million for the three months ended March 31, 2025. 

7. 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 the Company’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 reducing global overhead costs, the continued rotation of our manufacturing footprint to best cost locations in Europe and aligning our manufacturing capacity with the current levels of automotive production in each region. During the three months ended 

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March 31, 2025, the Company recorded employee-related and other restructuring charges related to these programs totaling approximately $37 million, of which $13 million was recognized for the initiation of the closure of a European manufacturing site within the Electrical Distribution Systems segment, and $3 million was recognized for a program initiated in the fourth quarter of 2024 focused on global salaried workforce optimization, primarily in the European region. We