Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 166

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 166
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124 121 Other381 415 Total$1,752 $1,648 

90

Other long-term liabilities consisted of the following:December 31,2024December 31,2023 (in millions)Environmental (Note 13)$3 $3 Extended disability benefits3 4 Warranty obligations (Note 9)12 9 Restructuring (Note 10)16 25 Payroll-related obligations9 12 Accrued income taxes165 169 Deferred income taxes, net (Note 14)290 394 Contract liabilities (Note 24)13 16 Derivative financial instruments (Note 17)39 1 Other63 68 Total$613 $701 

9. 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 December 31, 2024. The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of December 31, 2024 to be zero to $40 million.The table below summarizes the activity in the product warranty liability for the years ended December 31, 2024 and 2023:Year Ended December 31,20242023(in millions)Accrual balance at beginning of year$61 $52 Provision for estimated warranties incurred during the year33 31 Changes in estimate for pre-existing warranties38 23 Settlements(57)(47)Foreign currency translation and other(1)2 Accrual balance at end of year$74 $61 

10. RESTRUCTURING

Aptiv’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and