Company: APTV
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001521332-25-000027
Chunk: 224

Company: Aptiv PLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 8
Chunk 224
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(dollars in millions)(in millions)Cost of sales$3,905 $4,023 $118 $33 $44 $112 $(71)$118 Gross margin$920 $878 $42 $(9)$(20)$112 $(41)$42 Percentage of net sales19.1 %17.9 %

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

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

•$30 million of increased commodity pass-through costs;

•Approximately $20 million of increased depreciation, primarily as a result of a higher fixed asset base, which includes long-lived asset impairment charges of $5 million; and

•$15 million of increased warranty costs.

Selling, General and Administrative Expense

Three Months Ended March 31,20252024Favorable/(unfavorable)(dollars in millions)Selling, general and administrative expense$384 $366 $(18)Percentage of net sales8.0 %7.5 %

Selling, general and administrative expense (“SG&A”) primarily includes administrative expenses, information technology costs, incentive compensation related costs, acquisition and project portfolio costs and selling and marketing expenses. SG&A increased as a percentage of net sales for the three months ended March 31, 2025 compared to 2024, which includes $19 million of separation costs.

AmortizationThree Months Ended March 31,20252024Favorable/(unfavorable)(in millions)Amortization$51 $54 $3 

Amortization expense reflects the non-cash charge related to definite-lived intangible assets. Amortization during the three months ended March 31, 2025 and 2024 reflects the continued amortization of our definite-lived intangible assets, which resulted primarily from our acquisitions, over their estimated useful lives.

RestructuringThree Months Ended March 31,20252024Favorable/(unfavorable)(dollars in millions)Restructuring$37 $39 $2 Percentage of net sales0.8 %0.8 %

The Company recorded employee-related and other restructuring charges totaling approximately $37 million during the three months ended March 31, 2025, of which $13 million was recognized for the initiation of the closure of a European manufacturing site within the