Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 96

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 96
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.2 %

Adjusted Operating Income by Segment

 Year Ended December 31,Variance Due To: 20242023Favorable/(unfavorable)Volume, net of contractual price reductionsOperational performanceOtherTotal (in millions)(in millions)Signal and Power Solutions$1,652 $1,676 $(24)$4 $86 $(114)$(24)Advanced Safety and User Experience714 451 263 36 270 (43)263 

As noted in the table above, Adjusted Operating Income for the year ended December 31, 2024 as compared to the year ended December 31, 2023 was impacted by operational performance, volume, including product mix, as well as the impacts of 

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favorable pricing, net of contractual price reductions, of $167 million. Adjusted Operating Income was also impacted by the following items included within Other in the table above:

•Approximately $65 million of increased depreciation, primarily as a result of a higher fixed asset base;

•$29 million of increased SG&A expense, not including the impact of other acquisition and portfolio project costs; 

•Approximately $40 million of increased costs due to customer volume-related inefficiencies and warranty matters; partially offset by

•$17 million of favorable foreign currency impacts. 

Liquidity and Capital Resources

Overview of Capital Structure

Our liquidity requirements are primarily to fund our business operations, including capital expenditures and working capital requirements, as well as to fund debt service requirements and operational restructuring activities. Our primary sources of liquidity are cash flows from operations, our existing cash balance, and as necessary and available, borrowings under credit facilities and issuance of long-term debt and equity. To the extent we generate discretionary cash flow we may consider using this additional cash flow for optional prepayments of existing indebtedness, strategic acquisitions or investments, additional share repurchases and/or general corporate purposes. We also continually explore ways to enhance our capital structure.

As of December 31, 2024, we had cash and cash equivalents of $1.6 billion and net debt (defined as outstanding debt less cash and cash equivalents) of $6.8 billion. We also have access to additional liquidity pursuant to the terms of the $2.0 billion Revolving Credit Facility and the committed European accounts receivable factoring facility, as described below. The following table summarizes our available liquidity, which includes cash, cash equivalents and funds available under our significant committed credit facilities, as of