Company: APTV
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001521332-25-000027
Chunk: 188

Company: Aptiv PLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 188
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 (Loss) Recognized in OCIGain (Loss) Reclassified from OCI into Income (in millions)Derivatives designated as cash flow hedges:Commodity derivatives$32 $4 Foreign currency derivatives41 (8)Derivatives designated as net investment hedges:Foreign currency derivatives(1)— Total$72 $(4) Gain Recognized in Income(in millions)Derivatives not designated:Foreign currency derivatives$1 Total$1  Three Months Ended March 31, 2024Gain Recognized in OCI(Loss) Gain Reclassified from OCI into Income (in millions)Derivatives designated as cash flow hedges:Commodity derivatives$16 $(4)Foreign currency derivatives41 48 Derivatives designated as net investment hedges:Foreign currency derivatives2 — Total$59 $44  Loss Recognized in Income(in millions)Derivatives not designated:Foreign currency derivatives$(3)Total$(3)The gain or loss recognized in income for designated and non-designated derivative instruments was recorded to cost of sales and other income, net in the consolidated statements of operations for the three months ended March 31, 2025 and 2024, respectively.

15. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair Value Measurements on a Recurring BasisDerivative instruments—All derivative instruments are required to be reported on the balance sheet at fair value unless the transactions qualify and are designated as normal purchases or sales. Changes in fair value are reported currently through earnings unless they meet hedge accounting criteria. Aptiv’s derivative exposures are with counterparties with long-term investment grade credit ratings. Aptiv estimates the fair value of its derivative contracts using an income approach based on valuation techniques to convert future amounts to a single, discounted amount. Estimates of the fair value of foreign currency 

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and commodity derivative instruments are determined using exchange traded prices and rates. Aptiv also considers the risk of non-performance in the estimation of fair value, and includes an adjustment for non-performance risk in the measure of fair value of derivative instruments. The non-performance risk adjustment reflects the credit default spread (“CDS”) applied to the net commodity by counterparty and foreign currency exposures by counterparty. When Aptiv is in a net derivative asset position, the counterparty CDS rates are applied to the net derivative asset position. When Aptiv is in a net derivative liability position, estimates of peer companies’ CDS rates are applied