Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 206

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 206
---
 and ongoing effectiveness of its hedging relationships in accordance with its documented policy.As of September 30, 2025, the Company had the following outstanding notional amounts related to commodity and foreign currency forward and option contracts designated as cash flow hedges that were entered into to hedge forecasted exposures:CommodityQuantity HedgedUnit of MeasureNotional Amount(Approximate USD Equivalent) (in thousands)(in millions)Copper80,697 pounds$365 Foreign CurrencyQuantity HedgedUnit of MeasureNotional Amount(Approximate USD Equivalent) (in millions)Mexican Peso21,344 MXN$1,160 Chinese Yuan Renminbi2,805 RMB$395 Polish Zloty911 PLN$250 Hungarian Forint25,400 HUF$75 British Pound61 GBP$80 As of September 30, 2025, Aptiv has entered into derivative instruments to hedge cash flows extending out to September 2027.Gains and losses on derivatives qualifying as cash flow hedges are recorded in accumulated OCI, to the extent that hedges are effective, until the underlying transactions are recognized in earnings. Unrealized amounts in accumulated OCI will fluctuate based on changes in the fair value of hedge derivative contracts at each reporting period. Net gains on cash flow hedges included in accumulated OCI as of September 30, 2025 were $80 million (approximately $68 million, net of tax). Of this total, approximately $60 million of gains are expected to be included in cost of sales within the next 12 months and approximately $20 million of gains are expected to be included in cost of sales in subsequent periods. Cash flow hedges are discontinued when Aptiv determines it is no longer probable that the originally forecasted transactions will occur. Cash flows from derivatives used to manage commodity and foreign exchange risks designated as cash flow hedges are classified as operating activities within the consolidated statements of cash flows.Net Investment HedgesThe Company is also exposed to the risk that adverse changes in foreign currency exchange rates could impact its net investment in non-U.S. subsidiaries. To manage this risk, the Company designates certain qualifying derivative and non-derivative instruments, including foreign currency forward contracts and foreign currency-denominated debt, as net investment hedges of certain non-U.S. subsidiaries. The gains or losses on instruments designated as net investment hedges are recognized within OCI to offset changes in the value of the net investment in these foreign currency-denominated operations. Gains and