Company: APTV
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001521332-25-000040
Chunk: 173

Company: Aptiv PLC
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 8
Chunk 173
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idends payable22 — Contract liabilities (Note 20)96 111 Operating lease liabilities136 124 Other387 381 Total$1,680 $1,752 

16

Other long-term liabilities consisted of the following:June 30,2025December 31,2024 (in millions)Environmental$2 $3 Extended disability benefits3 3 Warranty obligations (Note 6)26 12 Restructuring (Note 7)19 16 Payroll-related obligations11 9 Accrued income taxes150 165 Deferred income taxes, net298 290 Contract liabilities (Note 20)25 13 Derivative financial instruments (Note 14)— 39 Other76 63 Total$610 $613 

6. WARRANTY OBLIGATIONS

Expected warranty costs for products sold are recognized principally at the time of sale of the product based on an estimate of the amount that eventually will be required to settle such obligations. These accruals are based on factors such as past experience, production changes, industry developments and various other considerations. The estimated costs related to product recalls based on a formal campaign soliciting return of that product are accrued at the time an obligation becomes probable and can be reasonably estimated. These estimates are adjusted from time to time based on facts and circumstances that impact the status of existing claims. Aptiv has recognized a reasonable estimate for its total aggregate warranty reserves, including product recall costs, across all of its operating segments as of June 30, 2025. The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of June 30, 2025 to be zero to $40 million.The table below summarizes the activity in the product warranty liability for the six months ended June 30, 2025: Warranty Obligations (in millions)Accrual balance at beginning of period$74 Provision for estimated warranties incurred during the period19 Changes in estimate for pre-existing warranties (1)40 Settlements(24)Foreign currency translation and other2 Accrual balance at end of period$111 

(1)In addition to amounts recorded to the product warranty liability, during the six months ended June 30, 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