Company: APTV
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001521332-25-000027
Chunk: 17

Company: Aptiv PLC
Filing Date: 2025-05-01
Form: 10-Q
Item: Item 1
Chunk 17
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2024 (in millions)Environmental$3 $3 Extended disability benefits3 3 Warranty obligations (Note 6)27 12 Restructuring (Note 7)17 16 Payroll-related obligations10 9 Accrued income taxes146 165 Deferred income taxes, net298 290 Contract liabilities (Note 20)28 13 Derivative financial instruments (Note 14)9 39 Other55 63 Total$596 $613 

6. 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 March 31, 2025. The Company estimates the reasonably possible amount to ultimately resolve all matters in excess of the recorded reserves as of March 31, 2025 to be zero to $40 million.The table below summarizes the activity in the product warranty liability for the three months ended March 31, 2025: Warranty Obligations (in millions)Accrual balance at beginning of period$74 Provision for estimated warranties incurred during the period10 Changes in estimate for pre-existing warranties (1)32 Settlements(12)Foreign currency translation and other1 Accrual balance at end of period$105 

(1)In addition to amounts recorded to the product warranty liability, during the three months ended March 31, 2025, Aptiv recognized a $15 million recovery from a supplier related to a warranty matter. The current portion of supplier recoveries is recorded in accounts receivable, net and the non-current portion is recorded in other long-term assets in the consolidated balance sheets. Warranty expense, net of supplier recoveries was $27 million for the three months ended March 31, 2025. 

7. RESTRUCTURING

Aptiv’s restructuring activities are undertaken as necessary to implement