Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 92

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 92
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Percentage of net sales19.3 %18.6 %

(a)Presented net of contractual price reductions for gross margin variance.

The increase in cost of sales reflects the impacts of improved operational performance, offset by increased volumes and currency exchange. Cost of sales was also impacted by the following items in Other above:

•$63 million of increased commodity pass-through costs;

•Approximately $20 million of increased depreciation, which includes the absence of long-lived asset impairment charges of $8 million; and

•Approximately $15 million of increased warranty costs.

63

Selling, General and Administrative Expense

Three Months Ended September 30,20252024Favorable/(unfavorable)(dollars in millions)Selling, general and administrative expense$433 $331 $(102)Percentage of net sales8.3 %6.8 % Nine Months Ended September 30, 20252024Favorable/(unfavorable) (dollars in millions)Selling, general and administrative expense$1,223 $1,102 $(121)Percentage of net sales8.0 %7.4 %

Selling, general and administrative expense (“SG&A”) primarily includes administrative expenses, information technology costs, incentive compensation related costs, separation, acquisition and project portfolio costs and selling and marketing expenses. SG&A increased as a percentage of net sales for the three months ended September 30, 2025 compared to 2024, primarily due to $53 million of separation costs and the absence of a credit loss recovery of approximately $25 million related to a supply relationship in Europe recognized during the three months ended September 30, 2024. SG&A increased as a percentage of net sales for the nine months ended September 30, 2025 compared to 2024, primarily due to $100 million of separation costs and increased incentive compensation costs.

AmortizationThree Months Ended September 30,20252024Favorable/(unfavorable)(in millions)Amortization$52 $53 $1  Nine Months Ended September 30, 20252024Favorable/(unfavorable) (in millions)Amortization$156 $159 $3 

Amortization expense reflects the non-cash charge related to definite-lived intangible assets. Amortization during the three and nine months ended September 30, 2025 and 2024 reflects the continued amortization of our definite-lived intangible