Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 89

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 89
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ollars in millions)(in millions)Cost of sales$16,002 $16,612 $610 $371 $101 $356 $(218)$610 Gross margin$3,711 $3,439 $272 $40 $16 $356 $(140)$272 Percentage of net sales18.8 %17.2 %

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

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

•Approximately $60 million of increased depreciation, primarily as a result of a higher fixed asset base;

•$78 million of increased commodity pass-through costs; and

•Approximately $40 million of increased costs due to customer volume-related inefficiencies and warranty matters.

Selling, General and Administrative Expense

 Year Ended December 31, 20242023Favorable/(unfavorable) (dollars in millions)Selling, general and administrative expense$1,465 $1,436 $(29)Percentage of net sales7.4 %7.2 %

Selling, general and administrative expense (“SG&A”) remained consistent as a percentage of net sales for the year ended December 31, 2024 as compared to 2023, and primarily includes administrative expenses, information technology costs, incentive compensation related costs, acquisition and project portfolio costs and selling and marketing expenses. 

Amortization

 Year Ended December 31, 20242023Favorable/(unfavorable) (in millions)Amortization$211 $233 $22 

Amortization expense reflects the non-cash charge related to definite-lived intangible assets. Amortization during the years ended December 31, 2024 and 2023 reflects the continued amortization of our definite-lived intangible assets, which resulted primarily from our acquisitions, over their estimated useful lives. Refer to Note 20. Acquisitions and Divestitures to the audited consolidated financial statements included herein for further detail of our business acquisitions, including details of the intangible assets recorded in each transaction.

In 2025, we expect to incur non-cash amortization charges of approximately $210 million. 

Restructuring

 Year Ended December 31, 20242023Favorable/(unfavorable) (dollars in millions)Restr