Company: APTV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001521332-25-000040
Chunk: 242

Company: Aptiv PLC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 242
---
10)$(37)$(41)$169 $(101)$(10)Gross margin$1,917 $1,846 $71 $17 $(67)$169 $(48)$71 Percentage of net sales19.1 %18.5 %

(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:

•$53 million of increased commodity pass-through costs;

•Approximately $20 million of increased depreciation, which includes increased long-lived asset impairment charges of $5 million; and

•$15 million of increased warranty costs.

60

Selling, General and Administrative Expense

Three Months Ended June 30,20252024Favorable/(unfavorable)(dollars in millions)Selling, general and administrative expense$406 $405 $(1)Percentage of net sales7.8 %8.0 % Six Months Ended June 30, 20252024Favorable/(unfavorable) (dollars in millions)Selling, general and administrative expense$790 $771 $(19)Percentage of net sales7.9 %7.7 %

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 remained consistent as a percentage of net sales for the three and six months ended June 30, 2025 compared to 2024. SG&A includes $28 million and $47 million of separation costs during the three and six months ended June 30, 2025, respectively.

AmortizationThree Months Ended June 30,20252024Favorable/(unfavorable)(in millions)Amortization$53 $52 $(1) Six Months Ended June 30, 20252024Favorable/(unfavorable) (in millions)Amortization$104 $106 $2 

Amortization expense reflects the non-cash charge related to definite-lived intangible assets. Amortization during the three and six months ended June 30, 2025 and 2024 reflects the continued amortization of our definite-lived intangible assets, which resulted primarily from our acquisitions, over their estimated useful lives.