Jersey | 001-35346 | 98-1029562 | ||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Ordinary Shares. $0.01 par value per share | APTV | New York Stock Exchange | ||||||||||||
2.396% Senior Notes due 2025 | APTV | New York Stock Exchange | ||||||||||||
1.500% Senior Notes due 2025 | APTV | New York Stock Exchange | ||||||||||||
1.600% Senior Notes due 2028 | APTV | New York Stock Exchange | ||||||||||||
4.350% Senior Notes due 2029 | APTV | New York Stock Exchange | ||||||||||||
3.250% Senior Notes due 2032 | APTV | New York Stock Exchange | ||||||||||||
4.400% Senior Notes due 2046 | APTV | New York Stock Exchange | ||||||||||||
5.400% Senior Notes due 2049 | APTV | New York Stock Exchange | ||||||||||||
3.100% Senior Notes due 2051 | APTV | New York Stock Exchange | ||||||||||||
4.150% Senior Notes due 2052 | APTV | New York Stock Exchange |
Exhibit | |||||
Number | Description | ||||
99.1 | Press Release Dated January 31, 2024 |
||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
Date: | January 31, 2024 |
APTIV PLC | ||||||||||||
By: | /s/ Joseph R. Massaro | |||||||||||||
Joseph R. Massaro | ||||||||||||||
Chief Financial Officer and Senior Vice President, Business Operations |
Exhibit | |||||
Number | Description | ||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
1 | Represents global vehicle production weighted to the geographic regions in which the Company generates its revenue (“AWM”). |
(in millions, except per share amounts) | Full Year 2024 | ||||
Net sales | $21,300 - $21,900 | ||||
Adjusted EBITDA | $3,200 - $3,350 | ||||
Adjusted EBITDA margin | 15.0% - 15.3% | ||||
Adjusted operating income | $2,475 - $2,625 | ||||
Adjusted operating income margin | 11.6% - 12.0% | ||||
Adjusted net income per share (1) | $5.55 - $6.05 | ||||
Cash flow from operations | $2,300 | ||||
Capital expenditures | $1,050 | ||||
Adjusted effective tax rate | 17.5% |
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
Net sales | $ | 4,919 | $ | 4,640 | $ | 20,051 | $ | 17,489 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of sales | 3,997 | 3,827 | 16,612 | 14,854 | |||||||||||||||||||
Selling, general and administrative | 381 | 303 | 1,436 | 1,138 | |||||||||||||||||||
Amortization | 56 | 37 | 233 | 149 | |||||||||||||||||||
Restructuring | 130 | 33 | 211 | 85 | |||||||||||||||||||
Total operating expenses | 4,564 | 4,200 | 18,492 | 16,226 | |||||||||||||||||||
Operating income | 355 | 440 | 1,559 | 1,263 | |||||||||||||||||||
Interest expense | (71) | (62) | (285) | (219) | |||||||||||||||||||
Other income (expense), net | 27 | (10) | 63 | (54) | |||||||||||||||||||
Income before income taxes and equity loss | 311 | 368 | 1,337 | 990 | |||||||||||||||||||
Income tax benefit (expense) | 680 | (25) | 1,928 | (121) | |||||||||||||||||||
Income before equity loss | 991 | 343 | 3,265 | 869 | |||||||||||||||||||
Equity loss, net of tax | (72) | (77) | (299) | (279) | |||||||||||||||||||
Net income | 919 | 266 | 2,966 | 590 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 13 | 18 | 28 | (3) | |||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interest | 1 | (1) | — | (1) | |||||||||||||||||||
Net income attributable to Aptiv | 905 | 249 | 2,938 | 594 | |||||||||||||||||||
Mandatory convertible preferred share dividends | — | (16) | (29) | (63) | |||||||||||||||||||
Net income attributable to ordinary shareholders | $ | 905 | $ | 233 | $ | 2,909 | $ | 531 | |||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||
Diluted net income per share attributable to ordinary shareholders | $ | 3.22 | $ | 0.86 | $ | 10.39 | $ | 1.96 | |||||||||||||||
Weighted average number of diluted shares outstanding | 281.21 | 271.40 | 282.88 | 271.18 |
December 31, 2023 |
December 31, 2022 |
||||||||||
(in millions) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 1,640 | $ | 1,531 | |||||||
Accounts receivable, net | 3,546 | 3,433 | |||||||||
Inventories | 2,365 | 2,340 | |||||||||
Other current assets | 696 | 480 | |||||||||
Total current assets | 8,247 | 7,784 | |||||||||
Long-term assets: | |||||||||||
Property, net | 3,785 | 3,495 | |||||||||
Operating lease right-of-use assets | 540 | 451 | |||||||||
Investments in affiliates | 1,443 | 1,723 | |||||||||
Intangible assets, net | 2,399 | 2,585 | |||||||||
Goodwill | 5,151 | 5,106 | |||||||||
Other long-term assets | 2,862 | 740 | |||||||||
Total long-term assets | 16,180 | 14,100 | |||||||||
Total assets | $ | 24,427 | $ | 21,884 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt | $ | 9 | $ | 31 | |||||||
Accounts payable | 3,151 | 3,150 | |||||||||
Accrued liabilities | 1,648 | 1,684 | |||||||||
Total current liabilities | 4,808 | 4,865 | |||||||||
Long-term liabilities: | |||||||||||
Long-term debt | 6,204 | 6,460 | |||||||||
Pension benefit obligations | 417 | 354 | |||||||||
Long-term operating lease liabilities | 453 | 361 | |||||||||
Other long-term liabilities | 701 | 750 | |||||||||
Total long-term liabilities | 7,775 | 7,925 | |||||||||
Total liabilities | 12,583 | 12,790 | |||||||||
Commitments and contingencies | |||||||||||
Redeemable noncontrolling interest | 99 | 96 | |||||||||
Total Aptiv shareholders’ equity | 11,548 | 8,809 | |||||||||
Noncontrolling interest | 197 | 189 | |||||||||
Total shareholders’ equity | 11,745 | 8,998 | |||||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | 24,427 | $ | 21,884 |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
(in millions) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 2,966 | $ | 590 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 912 | 762 | |||||||||
Restructuring expense, net of cash paid | 83 | 18 | |||||||||
Deferred income taxes | (2,164) | (144) | |||||||||
Loss from equity method investments, net of dividends received | 304 | 284 | |||||||||
Other charges related to Ukraine/Russia conflict | — | 54 | |||||||||
Other, net | 171 | 126 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (112) | (497) | |||||||||
Inventories | (20) | (258) | |||||||||
Accounts payable | 4 | 137 | |||||||||
Other, net | (215) | 215 | |||||||||
Pension contributions | (33) | (24) | |||||||||
Net cash provided by operating activities | 1,896 | 1,263 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (906) | (844) | |||||||||
Proceeds from sale of property | 4 | 4 | |||||||||
Proceeds from business divestitures, net of cash sold | (17) | — | |||||||||
Cost of business acquisitions and other transactions, net of cash acquired | (83) | (4,310) | |||||||||
Proceeds from sale of technology investments | — | 3 | |||||||||
Cost of technology investments | (6) | (42) | |||||||||
Settlement of derivatives | 6 | 7 | |||||||||
Net cash used in investing activities | (1,002) | (5,182) | |||||||||
Cash flows from financing activities: | |||||||||||
Decrease in other short and long-term debt, net | (332) | (5) | |||||||||
Proceeds from issuance of senior notes, net of issuance costs | — | 2,472 | |||||||||
Contingent consideration payments | (10) | — | |||||||||
Dividend payments of consolidated affiliates to minority shareholders | (2) | (9) | |||||||||
Repurchase of ordinary shares | (398) | — | |||||||||
Distribution of mandatory convertible preferred share cash dividends | (32) | (63) | |||||||||
Taxes withheld and paid on employees’ restricted share awards | (33) | (36) | |||||||||
Net cash (used in) provided by financing activities | (807) | 2,359 | |||||||||
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash | (2) | (24) | |||||||||
Increase (decrease) in cash, cash equivalents and restricted cash | 85 | (1,584) | |||||||||
Cash, cash equivalents and restricted cash at beginning of the year | 1,555 | 3,139 | |||||||||
Cash, cash equivalents and restricted cash at end of the year | $ | 1,640 | $ | 1,555 | |||||||
Reconciliation of cash, cash equivalents and restricted cash and cash classified as assets held for sale: | |||||||||||
December 31, | |||||||||||
2023 |
2022 |
||||||||||
(in millions) | |||||||||||
Cash, cash equivalents and restricted cash | $ | 1,640 | $ | 1,531 | |||||||
Cash classified as assets held for sale | — | 24 | |||||||||
Total cash, cash equivalents and restricted cash | $ | 1,640 | $ | 1,555 | |||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||
2023 | 2022 | % | 2023 | 2022 | % | ||||||||||||||||||||||||||||||
(in millions) | (in millions) | ||||||||||||||||||||||||||||||||||
Net Sales | |||||||||||||||||||||||||||||||||||
Signal and Power Solutions | $ | 3,574 | $ | 3,374 | 6% | $ | 14,404 | $ | 12,943 | 11% | |||||||||||||||||||||||||
Advanced Safety and User Experience | 1,356 | 1,280 | 6% | 5,695 | 4,587 | 24% | |||||||||||||||||||||||||||||
Eliminations and Other (a) | (11) | (14) | (48) | (41) | |||||||||||||||||||||||||||||||
Net Sales | $ | 4,919 | $ | 4,640 | $ | 20,051 | $ | 17,489 | |||||||||||||||||||||||||||
Adjusted Operating Income | |||||||||||||||||||||||||||||||||||
Signal and Power Solutions | $ | 459 | $ | 446 | 3% | $ | 1,676 | $ | 1,441 | 16% | |||||||||||||||||||||||||
Advanced Safety and User Experience | 141 | 77 | 83% | 451 | 144 | 213% | |||||||||||||||||||||||||||||
Adjusted Operating Income | $ | 600 | $ | 523 | $ | 2,127 | $ | 1,585 |
(a) | Eliminations and Other includes the elimination of inter-segment transactions. |
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions, except per share data) | |||||||||||||||||||||||
Weighted average ordinary shares outstanding, basic | 280.95 | 270.95 | 276.92 | 270.90 | |||||||||||||||||||
Dilutive shares related to RSUs | 0.26 | 0.45 | 0.17 | 0.28 | |||||||||||||||||||
Weighted average MCPS Converted Shares | — | — | 5.79 | — | |||||||||||||||||||
Weighted average ordinary shares outstanding, including dilutive shares |
281.21 | 271.40 | 282.88 | 271.18 | |||||||||||||||||||
Net income per share attributable to ordinary shareholders: | |||||||||||||||||||||||
Basic | $ | 3.22 | $ | 0.86 | $ | 10.50 | $ | 1.96 | |||||||||||||||
Diluted | $ | 3.22 | $ | 0.86 | $ | 10.39 | $ | 1.96 |
Three Months Ended December 31, 2023 | |||||
Reported net sales % change | 6 | % | |||
Less: foreign currency exchange and commodities | 1 | % | |||
Less: acquisitions | 3 | % | |||
Adjusted revenue growth | 2 | % | |||
Year Ended December 31, 2023 | |||||
Reported net sales % change | 15 | % | |||
Less: foreign currency exchange and commodities | (1) | % | |||
Less: acquisitions | 4 | % | |||
Adjusted revenue growth | 12 | % | |||
Consolidated Adjusted Operating Income | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||||||||||||||||||||||
$ | Margin | $ | Margin | $ | Margin | $ | Margin | ||||||||||||||||||||||||||||||||||||||||
Net income attributable to Aptiv | $ | 905 | $ | 249 | $ | 2,938 | $ | 594 | |||||||||||||||||||||||||||||||||||||||
Interest expense |
71 | 62 | 285 | 219 | |||||||||||||||||||||||||||||||||||||||||||
Other (income) expense, net | (27) | 10 | (63) | 54 | |||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (680) | 25 | (1,928) | 121 | |||||||||||||||||||||||||||||||||||||||||||
Equity loss, net of tax | 72 | 77 | 299 | 279 | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 13 | 18 | 28 | (3) | |||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interest | 1 | (1) | — | (1) | |||||||||||||||||||||||||||||||||||||||||||
Operating income | 355 | 7.2 | % | 440 | 9.5 | % | 1,559 | 7.8 | % | 1,263 | 7.2 | % | |||||||||||||||||||||||||||||||||||
Amortization | 56 | 37 | 233 | 149 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring |
130 | 33 | 211 | 85 | |||||||||||||||||||||||||||||||||||||||||||
Other acquisition and portfolio project costs |
35 | 13 | 80 | 26 | |||||||||||||||||||||||||||||||||||||||||||
Asset impairments |
18 | — | 18 | 8 | |||||||||||||||||||||||||||||||||||||||||||
Other charges related to Ukraine/Russia conflict | — | — | — | 54 | |||||||||||||||||||||||||||||||||||||||||||
Compensation expense related to acquisitions | 6 | — | 26 | — | |||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 600 | 12.2 | % | $ | 523 | 11.3 | % | $ | 2,127 | 10.6 | % | $ | 1,585 | 9.1 | % |
Segment Adjusted Operating Income | |||||||||||||||||
(in millions) | |||||||||||||||||
Three Months Ended December 31, 2023 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||||||||||||||
Operating income | $ | 325 | $ | 30 | $ | 355 | |||||||||||
Amortization | 33 | 23 | 56 | ||||||||||||||
Restructuring | 60 | 70 | 130 | ||||||||||||||
Other acquisition and portfolio project costs | 26 | 9 | 35 | ||||||||||||||
Asset impairments | 15 | 3 | 18 | ||||||||||||||
Compensation expense related to acquisitions | — | 6 | 6 | ||||||||||||||
Adjusted operating income | $ | 459 | $ | 141 | $ | 600 | |||||||||||
Depreciation and amortization (a) | $ | 174 | $ | 72 | $ | 246 | |||||||||||
Three Months Ended December 31, 2022 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||||||||||||||
Operating income | $ | 399 | $ | 41 | $ | 440 | |||||||||||
Amortization | 32 | 5 | 37 | ||||||||||||||
Restructuring | 7 | 26 | 33 | ||||||||||||||
Other acquisition and portfolio project costs | 8 | 5 | 13 | ||||||||||||||
Adjusted operating income | $ | 446 | $ | 77 | $ | 523 | |||||||||||
Depreciation and amortization (a) | $ | 143 | $ | 45 | $ | 188 | |||||||||||
Year Ended December 31, 2023 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||||||||||||||
Operating income | $ | 1,379 | $ | 180 | $ | 1,559 | |||||||||||
Amortization | 140 | 93 | 233 | ||||||||||||||
Restructuring | 82 | 129 | 211 | ||||||||||||||
Other acquisition and portfolio project costs | 60 | 20 | 80 | ||||||||||||||
Asset impairments | 15 | 3 | 18 | ||||||||||||||
Compensation expense related to acquisitions | — | 26 | 26 | ||||||||||||||
Adjusted operating income | $ | 1,676 | $ | 451 | $ | 2,127 | |||||||||||
Depreciation and amortization (a) | $ | 638 | $ | 274 | $ | 912 | |||||||||||
Year Ended December 31, 2022 | Signal and Power Solutions | Advanced Safety and User Experience | Total | ||||||||||||||
Operating income | $ | 1,195 | $ | 68 | $ | 1,263 | |||||||||||
Amortization | 139 | 10 | 149 | ||||||||||||||
Restructuring | 30 | 55 | 85 | ||||||||||||||
Other acquisition and portfolio project costs | 15 | 11 | 26 | ||||||||||||||
Asset impairments | 8 | — | 8 | ||||||||||||||
Other charges related to Ukraine/Russia conflict | 54 | — | 54 | ||||||||||||||
Adjusted operating income | $ | 1,441 | $ | 144 | $ | 1,585 | |||||||||||
Depreciation and amortization (a) | $ | 584 | $ | 178 | $ | 762 |
(a) | Includes asset impairments. |
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net income attributable to Aptiv | $ | 905 | $ | 249 | $ | 2,938 | $ | 594 | |||||||||||||||
Interest expense |
71 | 62 | 285 | 219 | |||||||||||||||||||
Income tax (benefit) expense | (680) | 25 | (1,928) | 121 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 13 | 18 | 28 | (3) | |||||||||||||||||||
Net income (loss) attributable to redeemable noncontrolling interest | 1 | (1) | — | (1) | |||||||||||||||||||
Depreciation and amortization |
246 | 188 | 912 | 762 | |||||||||||||||||||
EBITDA | $ | 556 | $ | 541 | $ | 2,235 | $ | 1,692 | |||||||||||||||
Other (income) expense, net | (27) | 10 | (63) | 54 | |||||||||||||||||||
Equity loss, net of tax | 72 | 77 | 299 | 279 | |||||||||||||||||||
Restructuring |
130 | 33 | 211 | 85 | |||||||||||||||||||
Other acquisition and portfolio project costs |
35 | 13 | 80 | 26 | |||||||||||||||||||
Other charges related to Ukraine/Russia conflict | — | — | — | 54 | |||||||||||||||||||
Compensation expense related to acquisitions | 6 | — | 26 | — | |||||||||||||||||||
Adjusted EBITDA | $ | 772 | $ | 674 | $ | 2,788 | $ | 2,190 | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
Net income attributable to ordinary shareholders | $ | 905 | $ | 233 | $ | 2,909 | $ | 531 | |||||||||||||||
Mandatory convertible preferred share dividends | — | 16 | 29 | 63 | |||||||||||||||||||
Net income attributable to Aptiv | 905 | 249 | 2,938 | 594 | |||||||||||||||||||
Adjusting items: | |||||||||||||||||||||||
Amortization | 56 | 37 | 233 | 149 | |||||||||||||||||||
Restructuring | 130 | 33 | 211 | 85 | |||||||||||||||||||
Other acquisition and portfolio project costs | 35 | 13 | 80 | 26 | |||||||||||||||||||
Asset impairments | 18 | — | 18 | 8 | |||||||||||||||||||
Other charges related to Ukraine/Russia conflict (a) | — | — | — | 29 | |||||||||||||||||||
Compensation expense related to acquisitions | 6 | — | 26 | — | |||||||||||||||||||
Costs associated with acquisitions and other transactions | — | 53 | 4 | 61 | |||||||||||||||||||
Debt extinguishment costs | 1 | — | 1 | — | |||||||||||||||||||
Impairment of equity investments without readily determinable fair value | — | — | 18 | — | |||||||||||||||||||
(Gain) loss on change in fair value of publicly traded equity securities | — | (3) | 6 | 52 | |||||||||||||||||||
Tax impact of intra-entity transfers of intellectual property and other related transactions (b) | (723) | — | (2,082) | — | |||||||||||||||||||
Tax impact of adjusting items (c) | (33) | (21) | (77) | (37) | |||||||||||||||||||
Adjusted net income attributable to Aptiv | $ | 395 | $ | 361 | $ | 1,376 | $ | 967 | |||||||||||||||
Adjusted weighted average number of diluted shares outstanding (d) | 281.21 | 283.77 | 282.88 | 283.55 | |||||||||||||||||||
Diluted net income per share attributable to ordinary shareholders | $ | 3.22 | $ | 0.86 | $ | 10.39 | $ | 1.96 | |||||||||||||||
Adjusted net income per share | $ | 1.40 | $ | 1.27 | $ | 4.86 | $ | 3.41 |
(a) | Adjustment is reduced by the portion of charges attributable to noncontrolling interest for our former majority owned Russian subsidiary. Our interest in this subsidiary was sold during the second quarter of 2023 and the subsidiary was deconsolidated. | ||||
(b) | In response to the OECD’s Pillar Two Directive, the Company initiated changes to its corporate entity structure, including intra-entity transfers of certain intellectual property to one of its subsidiaries in Switzerland during the second half of 2023. Furthermore, during the third quarter, the Company’s Swiss subsidiary was granted a ten-year tax incentive, beginning in 2024. The measurement of certain deferred tax assets and associated income tax benefits resulting from these transactions was impacted by tax legislation in Switzerland enacted in the fourth quarter of 2023, which increased the statutory income tax rate, resulting in additional deferred tax benefit impacts, net of valuation allowances. These adjustments represent the total income tax benefits recorded as a result of these transactions during the three months and year ended December 31, 2023. | ||||
(c) | Represents the income tax impacts of the adjustments made for amortization, restructuring and other special items by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred. | ||||
(d) | In June 2020, the Company issued $1,150 million in aggregate liquidation preference of 5.50% Mandatory Convertible Preferred Shares (the “MCPS”) and received proceeds of $1,115 million, after deducting expenses and the underwriters’ discount of $35 million. Each share of MCPS automatically converted on June 15, 2023 into 1.0754 Aptiv ordinary shares. Dividends on the MCPS were payable on a cumulative basis at an annual rate of 5.50% on the liquidation preference of $100 per share. For purposes of calculating Adjusted Net Income Per Share, the Company has excluded the MCPS cash dividends and assumed the “if-converted” method of share dilution (the incremental ordinary shares deemed outstanding applying the “if-converted” method of calculating share dilution are referred to as the “Weighted average MCPS Converted Shares” in the following table). The Adjusted Weighted Average Number of Diluted Shares Outstanding calculated below, assumes the conversion of all 11.5 million MCPS at the later of the beginning of the period or the time of issuance, and resulting issuance of the underlying ordinary shares applying the “if-converted” method (method already applied for U.S. GAAP purposes of calculating the weighted average number of diluted shares outstanding for the year ended December 31, 2023) on a weighted average outstanding basis for all periods subsequent to issuance of the MCPS. We believe that using the “if-converted” method provides additional insight to investors on the impact of the MCPS upon their conversion. |
Adjusted Weighted Average Number of Diluted Shares Outstanding: | |||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Weighted average number of diluted shares outstanding | 281.21 | 271.40 | 282.88 | 271.18 | |||||||||||||||||||
Weighted average MCPS Converted Shares | — | 12.37 | — | 12.37 | |||||||||||||||||||
Adjusted weighted average number of diluted shares outstanding |
281.21 | 283.77 | 282.88 | 283.55 |
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 919 | $ | 266 | $ | 2,966 | $ | 590 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 246 | 188 | 912 | 762 | |||||||||||||||||||
Restructuring expense, net of cash paid | 79 | 16 | 83 | 18 | |||||||||||||||||||
Working capital | 173 | 372 | (128) | (618) | |||||||||||||||||||
Pension contributions | (13) | (9) | (33) | (24) | |||||||||||||||||||
Increase in deferred income tax assets from intra-entity transfers of intellectual property and other related transactions | (723) | — | (2,082) | — | |||||||||||||||||||
Other, net | (57) | 100 | 178 | 535 | |||||||||||||||||||
Net cash provided by operating activities | 624 | 933 | 1,896 | 1,263 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Capital expenditures | (203) | (178) | (906) | (844) | |||||||||||||||||||
Proceeds from business divestitures, net of cash sold | — | — | (17) | — | |||||||||||||||||||
Cost of business acquisitions and other transactions, net of cash acquired | — | (4,090) | (83) | (4,310) | |||||||||||||||||||
Proceeds from sale of technology investments | — | — | — | 3 | |||||||||||||||||||
Cost of technology investments | (5) | — | (6) | (42) | |||||||||||||||||||
Settlement of derivatives | — | (2) | 6 | 7 | |||||||||||||||||||
Other, net | 1 | 1 | 4 | 4 | |||||||||||||||||||
Net cash used in investing activities |
(207) | (4,269) | (1,002) | (5,182) | |||||||||||||||||||
Adjusting items: |
|||||||||||||||||||||||
Adjustment for the cost of business acquisitions and other transactions, net | — | 4,090 | 83 | 4,310 | |||||||||||||||||||
Adjustment for cost of significant technology investments | 4 | — | 4 | 40 | |||||||||||||||||||
Cash flow before financing | $ | 421 | $ | 754 | $ | 981 | $ | 431 |
Estimated Full Year | |||||||||||
2024 (a) | |||||||||||
($ in millions) | |||||||||||
Adjusted Operating Income | $ | Margin (b) | |||||||||
Net income attributable to Aptiv | $ | 1,235 | |||||||||
Interest expense | 250 | ||||||||||
Other income, net | (75) | ||||||||||
Income tax expense | 340 | ||||||||||
Equity loss, net of tax | 330 | ||||||||||
Net income attributable to noncontrolling interest (c) | 25 | ||||||||||
Operating income | $ | 2,105 | 9.7 | % | |||||||
Amortization | 225 | ||||||||||
Restructuring | 150 | ||||||||||
Other acquisition and portfolio project costs | 40 | ||||||||||
Compensation expense related to acquisitions | 30 | ||||||||||
Adjusted operating income | $ | 2,550 | 11.8 | % | |||||||
Adjusted EBITDA | |||||||||||
Net income attributable to Aptiv | $ | 1,235 | |||||||||
Interest expense | 250 | ||||||||||
Income tax expense | 340 | ||||||||||
Net income attributable to noncontrolling interest (c) | 25 | ||||||||||
Depreciation and amortization |
950 | ||||||||||
EBITDA | $ | 2,800 | 13.0 | % | |||||||
Other income, net | (75) | ||||||||||
Equity loss, net of tax | 330 | ||||||||||
Restructuring |
150 | ||||||||||
Other acquisition and portfolio project costs |
40 | ||||||||||
Compensation expense related to acquisitions | 30 | ||||||||||
Adjusted EBITDA | $ | 3,275 | 15.2 | % |
(a) | Prepared at the estimated mid-point of the Company’s financial guidance range. |
||||
(b) | Represents operating income, Adjusted Operating Income, EBITDA and Adjusted EBITDA, respectively, as a percentage of estimated net sales. | ||||
(c) | Includes portion attributable to redeemable noncontrolling interest. |
Estimated Full Year | ||||||||
2024 (a) | ||||||||
Adjusted Net Income Per Share | ($ and shares in millions, except per share amounts) | |||||||
Net income attributable to Aptiv | $ | 1,235 | ||||||
Adjusting items: | ||||||||
Amortization | 225 | |||||||
Restructuring | 150 | |||||||
Other acquisition and portfolio project costs | 40 | |||||||
Compensation expense related to acquisitions | 30 | |||||||
Tax impact of adjusting items | (75) | |||||||
Adjusted net income attributable to Aptiv | $ | 1,605 | ||||||
Adjusted weighted average number of diluted shares outstanding | 277.00 | |||||||
Diluted net income per share attributable to ordinary shareholders | $ | 4.45 | ||||||
Adjusted net income per share | $ | 5.80 |
(a) | Prepared at the estimated mid-point of the Company’s financial guidance range. |