Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 17

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 17
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 that is more likely than not to be realized upon the ultimate settlement. In determining the provision for income taxes for financial statement purposes, the Company makes certain estimates and judgments which affect its evaluation of the carrying value of its deferred tax assets, as well as its calculation of certain tax liabilities. As it relates to changes in accumulated other comprehensive income (loss), the Company’s policy is to release tax effects from accumulated other comprehensive income (loss) when the underlying components affect earnings. Refer to Note 11. Income Taxes for additional information.Restructuring—Aptiv continually evaluates alternatives to align the business with the changing needs of its customers and to lower operating costs. This includes the realignment of its existing manufacturing capacity, facility closures, or similar actions, either in the normal course of business or pursuant to significant restructuring programs. These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements or statutory requirements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for severance or termination. Contract termination costs are recorded when contracts are terminated. All other exit costs are expensed as incurred. Refer to Note 7. Restructuring for additional information.Customer concentrations—We sell our products and services to the major global OEMs in every region of the world. Our ten largest customers accounted for approximately 55% of our total net sales for the three and nine months ended 

15

September 30, 2025, which included approximately 11% to Ford Motor Company during the three and nine months ended September 30, 2025. Our ten largest customers accounted for approximately 56% for the three and nine months ended September 30, 2024, none of which individually exceeded 10%. During the three months ended September 30, 2025, Electrical Distribution Systems segment recognized net sales to each of our ten largest customers, our Advanced Safety and User Experience segment recognized net sales to eight of our ten largest customers and our Engineered Components Group segment recognized net sales to seven of our ten largest customers. During the nine months ended September 30, 2025, our Electrical Distribution Systems segment, Engineered Components Group segment and Advanced Safety and User Experience segment recognized net sales to each of our ten largest customers. During the three and nine