Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 95

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 7
Chunk 95
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 before interest expense, other income (expense), net, income tax (expense) benefit, equity income (loss), net of tax, amortization, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures), asset impairments and other related charges, compensation expense related to acquisitions and gains (losses) on business divestitures and other transactions (“Adjusted Operating Income”). 

Our management utilizes Adjusted Operating Income as the key performance measure of segment income or loss to evaluate segment performance, and for planning and forecasting purposes to allocate resources to the segments, as management believes this measure is most reflective of the operational profitability or loss of our operating segments. Segment Adjusted Operating Income should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Aptiv, which is the most directly comparable financial measure to Adjusted Operating Income that is prepared in accordance with U.S. GAAP. Segment Adjusted Operating Income, as determined and measured by Aptiv, should also not be compared to similarly titled measures reported by other companies. Refer to Note 22. Segment Reporting to the audited consolidated financial statements included herein for additional information.

Net sales, gross margin as a percentage of net sales and Adjusted Operating Income by segment for the years ended December 31, 2024 and 2023 are as follows:

Net Sales by Segment

 Year Ended December 31,Variance Due To: 20242023Favorable/(unfavorable)Volume, net of contractual price reductionsFXCommodity Pass-throughOtherTotal (in millions)(in millions)Signal and Power Solutions$13,983 $14,404 $(421)$(415)$(84)$78 $— $(421)Advanced Safety and User Experience5,791 5,695 96 97 (1)— — 96 Eliminations and Other(61)(48)(13)(13)— — — (13)Total$19,713 $20,051 $(338)$(331)$(85)$78 $— $(338)

Gross Margin Percentage by Segment

 Year Ended December 31, 20242023Signal and Power Solutions18.7 %18.0 %Advanced Safety and User Experience19.0 %15.0 %Total18.8 %17