Strong Revenue Growth and Record Adjusted
Operating Earnings
DUBLIN, Nov. 2, 2023
/PRNewswire/ -- Aptiv PLC (NYSE: APTV), a global technology company
focused on making mobility safer, greener and more connected, today
reported third quarter 2023 U.S. GAAP earnings of $5.76 per diluted share. Excluding special items,
third quarter earnings totaled $1.30
per diluted share.
Third Quarter Financial Highlights Include:
-- U.S. GAAP revenue of $5.1 billion, an increase of
11%
- Revenue increased 7% adjusted for currency exchange,
commodity movements and acquisitions; growth over market of 2%
based on AWM1 of 5%
-- U.S. GAAP net income of $1,629 million, diluted
earnings per share of $5.76
- Excluding special items, diluted earnings per share of
$1.30
-- U.S. GAAP operating income margin of 8.7%
- Adjusted Operating Income margin of 11.0%, Adjusted
Operating Income of $560 million;
Adjusted EBITDA margin of 14.2%; Adjusted EBITDA of $727 million
-- Generated $746 million of cash from
operations
Year-to-Date Financial Highlights Include:
-- U.S. GAAP revenue of $15.1 billion, an increase of
18%
- Revenue increased 16% adjusted for currency exchange,
commodity movements and acquisitions; growth over market of 5%
based on AWM1 of 11%
-- U.S. GAAP net income of $2,004 million, diluted
earnings per share of $7.17
- Excluding special items, diluted earnings per share of
$3.46
-- U.S. GAAP operating income margin of 8.0%
- Adjusted Operating Income margin of 10.1%, Adjusted
Operating Income of $1,527 million;
Adjusted EBITDA margin of 13.3%; Adjusted EBITDA of $2,016 million
-- Generated $1,272 million of cash from
operations
-- Returned $98 million to
shareholders through share repurchases
|
1 Represents
global vehicle production weighted to the geographic regions in
which the Company generates its revenue ("AWM").
|
"Building off the momentum of a strong first half, Aptiv
delivered another solid quarter of financial results," said
Kevin Clark, chairman and chief
executive officer. "The automotive industry is on a clear path
towards the fully electrified, software-defined vehicle, and Aptiv
is uniquely positioned to enable this transformation. We have
successfully leveraged our full system-level capabilities to
provide customers with solutions that deliver better performance
and greater flexibility, all at lower cost, as reflected in our
record year-to-date new business awards of $27 billion. Our solutions and capabilities,
combined with a relentless focus on execution and operational
excellence, will continue to drive a more resilient and profitable
business."
Third Quarter 2023 Results
For the three
months ended September 30, 2023, the Company reported U.S.
GAAP revenue of $5.1 billion, an
increase of 11% from the prior year period. Adjusted for currency
exchange, commodity movements and acquisitions, revenue increased
by 7% in the third quarter. This reflects growth of 10% in
Europe, 10% in North America, 2% in Asia, which was flat in China, and 12% in South America, our smallest region.
The Company reported third quarter 2023 U.S. GAAP net income of
$1,629 million and earnings of
$5.76 per diluted share, compared to
$286 million and $1.05 per diluted share in the prior year period.
Third quarter Adjusted Net Income, a non-GAAP financial measure
defined below, totaled $367 million,
or earnings of $1.30 per diluted
share, compared to $364 million, or
$1.28 per diluted share, in the prior
year period.
Third quarter Adjusted Operating Income, a non-GAAP
financial measure defined below, was $560
million, compared to $525
million in the prior year period, primarily reflecting
increased volumes in North America
and Europe as well as pricing.
Adjusted Operating Income margin was 11.0%, compared to 11.4% in
the prior year period. Depreciation and amortization expense
totaled $226 million, an increase
from $190 million in the prior year
period.
Interest expense for the third quarter totaled $75 million, an increase from $58 million in the prior year period.
Tax benefit in the third quarter of 2023 was $1,312 million, which primarily reflects a
deferred tax benefit of approximately $1.4
billion recognized as a result of transactions entered into
as part of a reorganization of the Company's corporate entity
structure. Tax expense in the third quarter of 2022 was
$59 million, resulting in an
effective tax rate of 14%.
The Company generated net cash flow from operating activities of
$746 million in the third quarter,
compared to $437 million in the prior
year period.
Year-to-Date 2023 Results
For the nine months ended
September 30, 2023, the Company reported U.S. GAAP revenue of
$15.1 billion, an increase of 18%
from the prior year period. Adjusted for currency exchange,
commodity movements and acquisitions, revenue increased by 16%
during the period. This reflects growth of 21% in Europe, 14% in North
America, 13% in Asia, which
includes growth of 11% in China,
and 15% in South America, our
smallest region.
For the 2023 year-to-date period, the Company reported U.S. GAAP
net income of $2,004 million and
earnings of $7.17 per diluted share,
compared to $298 million and
$1.10 per diluted share in the prior
year period. Year-to-date Adjusted Net Income totaled $981 million, or $3.46 per diluted share, compared to $606 million, or $2.14 per diluted share, in the prior year
period.
The Company reported Adjusted Operating Income of $1,527 million for the nine months ended
September 30, 2023, compared to $1,062
million in the prior year period. Adjusted Operating Income
margin was 10.1% for the nine months ended September 30, 2023,
compared to 8.3% in the prior year period, reflecting our revenue
growth over market of 5%, increased global vehicle production,
pricing and the results from our recent acquisitions. Depreciation
and amortization expense totaled $666
million, an increase from $574
million in the prior year period.
Interest expense for the nine months ended September 30,
2023 totaled $214 million, an
increase from $157 million in the
prior year period, which includes impacts from our $2.5 billion debt issuance in the first quarter
of 2022 in anticipation of the Wind River Systems, Inc. acquisition
and increased interest rates on our variable rate debt.
Tax benefit for the nine months ended September 30,
2023 was $1,248 million, which
primarily reflects a deferred tax benefit of approximately
$1.4 billion recognized as a result
of transactions entered into as part of a reorganization of the
Company's corporate entity structure. Tax expense in the prior year
period was $96 million, resulting in
an effective tax rate of approximately 15%, which was impacted by
the geographic mix of earnings and increased losses in certain
jurisdictions where no tax benefit was recognized, including the
impact of charges resulting from the conflict between Ukraine and Russia.
The Company generated net cash flow from operating activities
of $1,272 million in the nine months ended
September 30, 2023, compared to $330
million in the prior year period. As of September 30,
2023, the Company had cash and cash equivalents of $1.8
billion and total available liquidity of $4.3 billion.
Reconciliations of Adjusted Revenue Growth, Adjusted Net Income,
Adjusted Net Income Per Share, Adjusted Operating Income, Adjusted
EBITDA and Cash Flow Before Financing, which are non-GAAP measures,
to the most directly comparable financial measures, respectively,
calculated and presented in accordance with accounting principles
generally accepted in the United
States ("GAAP") are provided in the attached supplemental
schedules.
Tranche A Term Loan Early Prepayment
In October 2023, the entire remaining balance on the
Tranche A Term Loan of $301 million
was repaid utilizing cash on hand. No premium or penalty was
incurred in connection with the repayment.
Share Repurchase Program
Year-to-date, the Company
repurchased 0.9 million shares for approximately $98 million, leaving approximately $1.9 billion available for future share
repurchases. All repurchased shares were retired.
Full Year 2023 Outlook
The Company's full
year 2023 financial guidance is as follows:
|
(in millions, except
per share amounts)
|
Full Year
2023
|
|
Net sales
(1)
|
$19,950 -
$20,250
|
|
Adjusted
EBITDA
|
$2,755 -
$2,855
|
|
Adjusted EBITDA
margin
|
13.8% -
14.1%
|
|
Adjusted operating
income
|
$2,075 -
$2,175
|
|
Adjusted operating
income margin
|
10.4% -
10.7%
|
|
Adjusted net income per
share (2)
|
$4.60 -
$4.90
|
|
Cash flow from
operations
|
$2,000
|
|
Capital
expenditures
|
$950
|
|
Adjusted effective tax
rate
|
~12.5%
|
|
|
(1) The Company's
full year 2023 financial guidance includes adverse impacts to
revenue of approximately $180 million
as a result of the UAW labor strikes initiated during the third
quarter of 2023, assuming there are no further impacts
from work stoppages subsequent to the end of
October 2023.
|
|
(2) The Company's
full year 2023 financial guidance includes approximately $1.10 per
diluted share for the anticipated
equity losses to be recognized by
Aptiv from the performance of the
Motional autonomous driving joint venture
|
Conference Call and Webcast
The Company will host a
conference call to discuss these results at 8:00 a.m. (ET) today, which is accessible by
dialing +1.800.239.9838 (U.S.) or +1.323.794.2588 (international)
or through a webcast at ir.aptiv.com. The conference ID number is
2903683. A slide presentation will accompany the prepared remarks
and has been posted on the investor relations section of the
Company's website. A replay will be available two hours following
the conference call.
Use of Non-GAAP Financial Information
This press
release contains information about Aptiv's financial results which
are not presented in accordance with GAAP. Specifically, Adjusted
Revenue Growth, Adjusted Operating Income, Adjusted EBITDA,
Adjusted Net Income, Adjusted Net Income Per Share and Cash Flow
Before Financing are non-GAAP financial measures. Adjusted Revenue
Growth represents the year-over-year change in reported net sales
relative to the comparable period, excluding the impact on net
sales from currency exchange, commodity movements, acquisitions,
divestitures and other transactions. Adjusted Operating Income
represents net income 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 margin is defined as Adjusted Operating Income as a
percentage of net sales. Adjusted EBITDA represents net income
before depreciation and amortization (including asset impairments),
interest expense, income tax (expense) benefit, other income
(expense), net, equity income (loss), net of tax, restructuring and
other special items.
Adjusted Net Income represents net income attributable to Aptiv
before amortization, restructuring and other special items,
including the tax impact thereon. Adjusted Net Income Per Share
represents Adjusted Net Income divided by the Adjusted Weighted
Average Number of Diluted Shares Outstanding for the period. The
Adjusted Weighted Average Number of Diluted Shares Outstanding
assumes the application of the if-converted method of share
dilution, if not already applied for GAAP purposes of calculating
the weighted average number of diluted shares outstanding. Cash
Flow Before Financing represents cash provided by (used in)
operating activities plus cash provided by (used in) investing
activities, adjusted for the purchase price of business
acquisitions and other transactions, the cost of significant
technology investments and net proceeds from the divestiture of
discontinued operations and other significant businesses.
Management believes the non-GAAP financial measures used in this
press release are useful to both management and investors in their
analysis of the Company's financial position, results of operations
and liquidity. In particular, management believes Adjusted Revenue
Growth, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net
Income, Adjusted Net Income Per Share and Cash Flow Before
Financing are useful measures in assessing the Company's ongoing
financial performance that, when reconciled to the corresponding
GAAP measure, provide improved comparability between periods
through the exclusion of certain items that management believes are
not indicative of the Company's core operating performance and that
may obscure underlying business results and trends. Management also
uses these non-GAAP financial measures for internal planning and
forecasting purposes.
Such non-GAAP financial measures are reconciled to the most
directly comparable GAAP financial measures in the attached
supplemental schedules at the end of this press release. Non-GAAP
measures should not be considered in isolation or as a substitute
for our reported results prepared in accordance with GAAP and, as
calculated, may not be comparable to other similarly titled
measures of other companies.
About Aptiv
Aptiv is a global technology company that
develops safer, greener and more connected solutions enabling a
more sustainable future of mobility. Visit aptiv.com.
Forward-Looking Statements
This press release, as well
as other statements made by Aptiv PLC (the "Company"), contain
forward-looking statements that reflect, when made, the Company's
current views with respect to current events, certain investments
and acquisitions and financial performance. Such forward-looking
statements are subject to many risks, uncertainties and factors
relating to the Company's operations and business environment,
which may cause the actual results of the Company to be materially
different from any future results. All statements that address
future operating, financial or business performance or the
Company's strategies or expectations are forward-looking
statements. Factors that could cause actual results to differ
materially from these forward-looking statements include, but are
not limited to, the following: global and regional economic
conditions, including conditions affecting the credit market;
global inflationary pressures; uncertainties posed by the COVID-19
pandemic and the difficulty in predicting its future course and its
impact on the global economy and the Company's future operations;
uncertainties created by the conflict between Ukraine and Russia, and its impacts to the European and
global economies and our operations in each country; fluctuations
in interest rates and foreign currency exchange rates; the cyclical
nature of global automotive sales and production; the potential
disruptions in the supply of and changes in the competitive
environment for raw material and other components integral to the
Company's products, including the ongoing semiconductor supply
shortage; the Company's ability to maintain contracts that are
critical to its operations; potential changes to beneficial free
trade laws and regulations such as the
United States-Mexico-Canada Agreement; changes to tax laws;
the ability of the Company to integrate and realize the expected
benefits of recent transactions; the ability of the Company to
attract, motivate and/or retain key executives; the ability of the
Company to avoid or continue to operate during a strike, or partial
work stoppage or slow down by any of its unionized employees or
those of its principal customers; and the ability of the Company to
attract and retain customers. Additional factors are discussed
under the captions "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Company's filings with the Securities and Exchange Commission. New
risks and uncertainties arise from time to time, and it is
impossible for us to predict these events or how they may affect
the Company. It should be remembered that the price of the ordinary
shares and any income from them can go down as well as up. The
Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new
information, future events and/or otherwise, except as may be
required by law.
|
APTIV PLC
CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions, except
per share amounts)
|
|
Net sales
|
$
5,114
|
|
$
4,614
|
|
$
15,132
|
|
$
12,849
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
4,221
|
|
3,821
|
|
12,615
|
|
11,027
|
|
Selling, general and
administrative
|
360
|
|
275
|
|
1,055
|
|
835
|
|
Amortization
|
59
|
|
37
|
|
177
|
|
112
|
|
Restructuring
|
28
|
|
11
|
|
81
|
|
52
|
|
Total operating
expenses
|
4,668
|
|
4,144
|
|
13,928
|
|
12,026
|
|
Operating
income
|
446
|
|
470
|
|
1,204
|
|
823
|
|
Interest
expense
|
(75)
|
|
(58)
|
|
(214)
|
|
(157)
|
|
Other income
(expense), net
|
26
|
|
20
|
|
36
|
|
(44)
|
|
Income before income
taxes and equity loss
|
397
|
|
432
|
|
1,026
|
|
622
|
|
Income tax benefit
(expense)
|
1,312
|
|
(59)
|
|
1,248
|
|
(96)
|
|
Income before equity
loss
|
1,709
|
|
373
|
|
2,274
|
|
526
|
|
Equity loss, net of
tax
|
(72)
|
|
(67)
|
|
(227)
|
|
(202)
|
|
Net income
|
1,637
|
|
306
|
|
2,047
|
|
324
|
|
Net income (loss)
attributable to noncontrolling interest
|
8
|
|
5
|
|
15
|
|
(21)
|
|
Net loss attributable
to redeemable noncontrolling interest
|
—
|
|
—
|
|
(1)
|
|
—
|
|
Net income attributable
to Aptiv
|
1,629
|
|
301
|
|
2,033
|
|
345
|
|
Mandatory convertible
preferred share dividends
|
—
|
|
(15)
|
|
(29)
|
|
(47)
|
|
Net income attributable
to ordinary shareholders
|
$
1,629
|
|
$
286
|
|
$
2,004
|
|
$
298
|
|
|
|
|
|
|
|
|
|
Diluted net income per
share:
|
|
|
|
|
|
|
|
|
Diluted net income per
share attributable to ordinary shareholders
|
$
5.76
|
|
$
1.05
|
|
$
7.17
|
|
$
1.10
|
|
Weighted average
number of diluted shares outstanding
|
283.01
|
|
271.10
|
|
283.44
|
|
271.10
|
|
APTIV PLC
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
September
30,
2023
|
|
December 31,
2022
|
|
(Unaudited)
|
|
|
(in
millions)
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
1,808
|
|
$
1,531
|
|
Accounts receivable,
net
|
3,647
|
|
3,433
|
|
Inventories
|
2,432
|
|
2,340
|
|
Other current
assets
|
603
|
|
480
|
|
Total current
assets
|
8,490
|
|
7,784
|
|
Long-term
assets:
|
|
|
|
|
Property,
net
|
3,579
|
|
3,495
|
|
Operating lease
right-of-use assets
|
511
|
|
451
|
|
Investments in
affiliates
|
1,498
|
|
1,723
|
|
Intangible assets,
net
|
2,423
|
|
2,585
|
|
Goodwill
|
5,073
|
|
5,106
|
|
Other long-term
assets
|
2,137
|
|
740
|
|
Total long-term
assets
|
15,221
|
|
14,100
|
|
Total
assets
|
$
23,711
|
|
$
21,884
|
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTEREST AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
$
43
|
|
$
31
|
|
Accounts
payable
|
3,056
|
|
3,150
|
|
Accrued
liabilities
|
1,597
|
|
1,684
|
|
Total current
liabilities
|
4,696
|
|
4,865
|
|
Long-term
liabilities:
|
|
|
|
|
Long-term
debt
|
6,419
|
|
6,460
|
|
Pension benefit
obligations
|
372
|
|
354
|
|
Long-term operating
lease liabilities
|
419
|
|
361
|
|
Other long-term
liabilities
|
732
|
|
750
|
|
Total long-term
liabilities
|
7,942
|
|
7,925
|
|
Total
liabilities
|
12,638
|
|
12,790
|
|
Commitments and
contingencies
|
|
|
|
|
Redeemable
noncontrolling interest
|
93
|
|
96
|
|
|
|
|
|
Total Aptiv
shareholders' equity
|
10,778
|
|
8,809
|
|
Noncontrolling
interest
|
202
|
|
189
|
|
Total shareholders'
equity
|
10,980
|
|
8,998
|
|
Total liabilities,
redeemable noncontrolling interest and shareholders'
equity
|
$
23,711
|
|
$
21,884
|
|
APTIV PLC
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
$
2,047
|
|
$
324
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
666
|
|
574
|
|
Restructuring expense,
net of cash paid
|
4
|
|
2
|
|
Deferred income
taxes
|
(1,408)
|
|
(6)
|
|
Loss from equity
method investments, net of dividends received
|
232
|
|
205
|
|
Other charges related
to Ukraine/Russia conflict
|
—
|
|
54
|
|
Other, net
|
125
|
|
97
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts receivable,
net
|
(213)
|
|
(582)
|
|
Inventories
|
(87)
|
|
(301)
|
|
Accounts
payable
|
(1)
|
|
(107)
|
|
Other, net
|
(73)
|
|
85
|
|
Pension
contributions
|
(20)
|
|
(15)
|
|
Net cash provided by
operating activities
|
1,272
|
|
330
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(703)
|
|
(666)
|
|
Proceeds from sale of
property
|
3
|
|
3
|
|
Proceeds from business
divestitures, net of cash sold
|
(17)
|
|
—
|
|
Cost of business
acquisitions and other transactions, net of cash
acquired
|
(83)
|
|
(220)
|
|
Proceeds from sale of
technology investments
|
—
|
|
3
|
|
Cost of technology
investments
|
(1)
|
|
(42)
|
|
Settlement of
derivatives
|
6
|
|
9
|
|
Net cash used in
investing activities
|
(795)
|
|
(913)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Decrease in other
short and long-term debt, net
|
(30)
|
|
(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
|
—
|
|
(8)
|
|
Repurchase of ordinary
shares
|
(98)
|
|
—
|
|
Distribution of
mandatory convertible preferred share cash dividends
|
(32)
|
|
(47)
|
|
Taxes withheld and
paid on employees' restricted share awards
|
(31)
|
|
(36)
|
|
Net cash (used in)
provided by financing activities
|
(201)
|
|
2,376
|
|
Effect of exchange rate
fluctuations on cash, cash equivalents and restricted
cash
|
(23)
|
|
(54)
|
|
Increase in cash, cash
equivalents and restricted cash
|
253
|
|
1,739
|
|
Cash, cash equivalents
and restricted cash at beginning of the period
|
1,555
|
|
3,139
|
|
Cash, cash equivalents
and restricted cash at end of the period
|
$
1,808
|
|
$
4,878
|
|
|
|
|
|
Reconciliation of
cash, cash equivalents and restricted cash and cash classified as
assets held
for sale
|
|
|
|
|
September
30,
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Cash, cash equivalents
and restricted cash
|
$
1,808
|
|
$
4,854
|
|
Cash classified as
assets held for sale
|
—
|
|
24
|
|
Total cash, cash
equivalents and restricted cash
|
$
1,808
|
|
$
4,878
|
|
APTIV PLC
FOOTNOTES
(Unaudited)
|
|
|
1. Segment Summary
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
%
|
|
2023
|
|
2022
|
|
%
|
|
(in
millions)
|
|
|
|
(in
millions)
|
|
|
|
Net Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Signal and Power
Solutions
|
$
3,687
|
|
$
3,424
|
|
8 %
|
|
$
10,830
|
|
$
9,569
|
|
13 %
|
|
Advanced Safety and
User Experience
|
1,441
|
|
1,199
|
|
20 %
|
|
4,339
|
|
3,307
|
|
31 %
|
|
Eliminations and Other
(a)
|
(14)
|
|
(9)
|
|
|
|
(37)
|
|
(27)
|
|
|
|
Net Sales
|
$
5,114
|
|
$
4,614
|
|
|
|
$
15,132
|
|
$
12,849
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
Signal and Power
Solutions
|
$
451
|
|
$
444
|
|
2 %
|
|
$
1,217
|
|
$
995
|
|
22 %
|
|
Advanced Safety and
User Experience
|
109
|
|
81
|
|
35 %
|
|
310
|
|
67
|
|
363 %
|
|
Adjusted Operating
Income
|
$
560
|
|
$
525
|
|
|
|
$
1,527
|
|
$
1,062
|
|
|
|
|
|
(a)
|
Eliminations and Other
includes the elimination of inter-segment transactions.
|
|
2. Weighted Average
Number of Diluted Shares Outstanding
|
|
The following table
illustrates the weighted average shares outstanding used in
calculating basic and diluted net income per share
attributable to ordinary shareholders for the three and nine months
ended September 30, 2023 and 2022:
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions, except
per share amounts)
|
|
Weighted average
ordinary shares outstanding, basic
|
282.84
|
|
270.93
|
|
275.56
|
|
270.88
|
|
Dilutive shares
related to RSUs
|
0.17
|
|
0.17
|
|
0.13
|
|
0.22
|
|
Weighted average MCPS
Converted Shares
|
—
|
|
—
|
|
7.75
|
|
—
|
|
Weighted average
ordinary shares outstanding,
including dilutive shares
|
283.01
|
|
271.10
|
|
283.44
|
|
271.10
|
|
Net income per share
attributable to ordinary shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
$
5.76
|
|
$
1.06
|
|
$
7.27
|
|
$
1.10
|
|
Diluted
|
$
5.76
|
|
$
1.05
|
|
$
7.17
|
|
$
1.10
|
|
APTIV PLC
RECONCILIATION OF
NON-GAAP MEASURES
(Unaudited)
|
|
|
In this press release
the Company has provided information regarding certain non-GAAP
financial measures, including "Adjusted Revenue Growth," "Adjusted
Operating Income," "Adjusted EBITDA," "Adjusted Net Income,"
"Adjusted Net Income Per Share" and "Cash Flow Before Financing."
Such non-GAAP financial measures are reconciled to their closest
GAAP financial measure in the following schedules.
|
|
|
Adjusted Revenue
Growth: Adjusted Revenue Growth is presented as a supplemental
measure of the Company's financial performance which management
believes is useful to investors in assessing the Company's ongoing
financial performance that, when reconciled to the corresponding
U.S. GAAP measure, provides improved comparability between periods
through the exclusion of certain items that management believes are
not indicative of the Company's core operating performance and
which may obscure underlying business results and trends. Our
management utilizes Adjusted Revenue Growth in its financial
decision making process, to evaluate performance of the Company and
for internal reporting, planning and forecasting purposes. Adjusted
Revenue Growth is defined as the year-over-year change in reported
net sales relative to the comparable period, excluding the impact
on net sales from currency exchange, commodity movements,
acquisitions, divestitures and other transactions. Not all
companies use identical calculations of Adjusted Revenue Growth,
therefore this presentation may not be comparable to other
similarly titled measures of other companies.
|
|
Three Months
Ended
September 30, 2023
|
|
|
|
Reported net sales %
change
|
11 %
|
|
Less: foreign currency
exchange and commodities
|
— %
|
|
Less:
acquisitions
|
4 %
|
|
Adjusted revenue
growth
|
7 %
|
|
|
|
Nine Months
Ended
September 30, 2023
|
|
|
|
Reported net sales %
change
|
18 %
|
|
Less: foreign currency
exchange and commodities
|
(2) %
|
|
Less:
acquisitions
|
4 %
|
|
Adjusted revenue
growth
|
16 %
|
|
Adjusted Operating
Income: Adjusted Operating Income is presented as a
supplemental measure of the Company's financial performance which
management believes is useful to investors in assessing the
Company's ongoing financial performance that, when reconciled to
the corresponding U.S. GAAP measure, provides improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and which may obscure underlying
business results and trends. Our management utilizes Adjusted
Operating Income in its financial decision making process, to
evaluate performance of the Company and for internal reporting,
planning and forecasting purposes. Management also utilizes
Adjusted Operating Income as the key performance measure of segment
income or loss and for planning and forecasting purposes to
allocate resources to our segments, as management also believes
this measure is most reflective of the operational profitability or
loss of our operating segments. Adjusted Operating Income is
defined as net income before interest expense, other income
(expense), net, income tax (expense) benefit, equity income (loss),
net of tax, amortization, restructuring and other special items.
Not all companies use identical calculations of Adjusted Operating
Income, therefore this presentation may not be comparable to other
similarly titled measures of other companies. Operating income
margin represents Operating income as a percentage of net sales,
and Adjusted Operating Income margin represents Adjusted Operating
Income as a percentage of net sales.
|
|
Consolidated
Adjusted Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
($ in
millions)
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
$
|
|
Margin
|
|
Net income attributable
to Aptiv
|
$ 1,629
|
|
|
|
$
301
|
|
|
|
$ 2,033
|
|
|
|
$
345
|
|
|
|
Interest
expense
|
75
|
|
|
|
58
|
|
|
|
214
|
|
|
|
157
|
|
|
|
Other (income)
expense, net
|
(26)
|
|
|
|
(20)
|
|
|
|
(36)
|
|
|
|
44
|
|
|
|
Income tax (benefit)
expense
|
(1,312)
|
|
|
|
59
|
|
|
|
(1,248)
|
|
|
|
96
|
|
|
|
Equity loss, net of
tax
|
72
|
|
|
|
67
|
|
|
|
227
|
|
|
|
202
|
|
|
|
Net income (loss)
attributable to
noncontrolling interest
|
8
|
|
|
|
5
|
|
|
|
15
|
|
|
|
(21)
|
|
|
|
Net loss attributable
to redeemable
noncontrolling interest
|
—
|
|
|
|
—
|
|
|
|
(1)
|
|
|
|
—
|
|
|
|
Operating
income
|
$
446
|
|
8.7 %
|
|
$
470
|
|
10.2 %
|
|
$ 1,204
|
|
8.0 %
|
|
$
823
|
|
6.4 %
|
|
Amortization
|
59
|
|
|
|
37
|
|
|
|
177
|
|
|
|
112
|
|
|
|
Restructuring
|
28
|
|
|
|
11
|
|
|
|
81
|
|
|
|
52
|
|
|
|
Other acquisition and
portfolio project costs
|
20
|
|
|
|
2
|
|
|
|
45
|
|
|
|
13
|
|
|
|
Asset
impairments
|
—
|
|
|
|
5
|
|
|
|
—
|
|
|
|
8
|
|
|
|
Other charges related
to Ukraine/Russia conflict
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
54
|
|
|
|
Compensation expense
related to acquisitions
|
7
|
|
|
|
—
|
|
|
|
20
|
|
|
|
—
|
|
|
|
Adjusted operating
income
|
$
560
|
|
11.0 %
|
|
$
525
|
|
11.4 %
|
|
$ 1,527
|
|
10.1 %
|
|
$ 1,062
|
|
8.3 %
|
|
Segment Adjusted
Operating Income
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
Three Months Ended
September 30, 2023
|
Signal and Power
Solutions
|
|
Advanced Safety
and User
Experience
|
|
Total
|
|
Operating
income
|
$
395
|
|
$
51
|
|
$
446
|
|
Amortization
|
35
|
|
24
|
|
59
|
|
Restructuring
|
7
|
|
21
|
|
28
|
|
Other acquisition and
portfolio project costs
|
14
|
|
6
|
|
20
|
|
Compensation expense
related to acquisitions
|
—
|
|
7
|
|
7
|
|
Adjusted operating
income
|
$
451
|
|
$
109
|
|
$
560
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
$
160
|
|
$
66
|
|
$
226
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2022
|
Signal and Power
Solutions
|
|
Advanced Safety
and User
Experience
|
|
Total
|
|
Operating
income
|
$
403
|
|
$
67
|
|
$
470
|
|
Amortization
|
35
|
|
2
|
|
37
|
|
Restructuring
|
1
|
|
10
|
|
11
|
|
Other acquisition and
portfolio project costs
|
—
|
|
2
|
|
2
|
|
Asset
impairments
|
5
|
|
—
|
|
5
|
|
Adjusted operating
income
|
$
444
|
|
$
81
|
|
$
525
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
$
147
|
|
$
43
|
|
$
190
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2023
|
Signal and Power
Solutions
|
|
Advanced Safety
and User
Experience
|
|
Total
|
|
Operating
income
|
$
1,054
|
|
$
150
|
|
$
1,204
|
|
Amortization
|
107
|
|
70
|
|
177
|
|
Restructuring
|
22
|
|
59
|
|
81
|
|
Other acquisition and
portfolio project costs
|
34
|
|
11
|
|
45
|
|
Compensation expense
related to acquisitions
|
—
|
|
20
|
|
20
|
|
Adjusted operating
income
|
$
1,217
|
|
$
310
|
|
$
1,527
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
$
464
|
|
$
202
|
|
$
666
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2022
|
Signal and Power
Solutions
|
|
Advanced Safety
and User
Experience
|
|
Total
|
|
Operating
income
|
$
796
|
|
$
27
|
|
$
823
|
|
Amortization
|
107
|
|
5
|
|
112
|
|
Restructuring
|
23
|
|
29
|
|
52
|
|
Other acquisition and
portfolio project costs
|
7
|
|
6
|
|
13
|
|
Asset
impairments
|
8
|
|
—
|
|
8
|
|
Other charges related
to Ukraine/Russia conflict
|
54
|
|
—
|
|
54
|
|
Adjusted operating
income
|
$
995
|
|
$
67
|
|
$
1,062
|
|
|
|
|
|
|
|
Depreciation and
amortization (a)
|
$
441
|
|
$
133
|
|
$
574
|
|
|
|
(a)
|
Includes asset
impairments.
|
|
Adjusted EBITDA:
Adjusted EBITDA is presented as a supplemental measure of the
Company's financial performance which management believes is useful
to investors in assessing the Company's ongoing financial
performance that, when reconciled to the corresponding U.S. GAAP
measure, provides improved comparability between periods through
the exclusion of certain items that management believes are not
indicative of the Company's core operating performance and which
may obscure underlying business results and trends. Our management
utilizes Adjusted EBITDA in its financial decision making process,
to evaluate performance of the Company and for internal reporting,
planning and forecasting purposes. Adjusted EBITDA is defined as
net income before depreciation and amortization (including asset
impairments), interest expense, income tax (expense) benefit, other
income (expense), net, equity income (loss), net of tax,
restructuring and other special items. Not all companies use
identical calculations of Adjusted EBITDA, therefore this
presentation may not be comparable to other similarly titled
measures of other companies.
|
|
Consolidated
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Net income attributable
to Aptiv
|
$
1,629
|
|
$
301
|
|
$
2,033
|
|
$
345
|
|
Interest
expense
|
75
|
|
58
|
|
214
|
|
157
|
|
Income tax (benefit)
expense
|
(1,312)
|
|
59
|
|
(1,248)
|
|
96
|
|
Net income (loss)
attributable to noncontrolling interest
|
8
|
|
5
|
|
15
|
|
(21)
|
|
Net loss attributable
to redeemable noncontrolling interest
|
—
|
|
—
|
|
(1)
|
|
—
|
|
Depreciation and
amortization
|
226
|
|
190
|
|
666
|
|
574
|
|
EBITDA
|
$
626
|
|
$
613
|
|
$
1,679
|
|
$
1,151
|
|
Other (income)
expense, net
|
(26)
|
|
(20)
|
|
(36)
|
|
44
|
|
Equity loss, net of
tax
|
72
|
|
67
|
|
227
|
|
202
|
|
Restructuring
|
28
|
|
11
|
|
81
|
|
52
|
|
Other acquisition and
portfolio project costs
|
20
|
|
2
|
|
45
|
|
13
|
|
Other charges related
to Ukraine/Russia conflict
|
—
|
|
—
|
|
—
|
|
54
|
|
Compensation expense
related to acquisitions
|
7
|
|
—
|
|
20
|
|
—
|
|
Adjusted
EBITDA
|
$
727
|
|
$
673
|
|
$
2,016
|
|
$
1,516
|
|
Adjusted Net Income
and Adjusted Net Income Per Share: Adjusted Net Income and
Adjusted Net Income Per Share, which are non-GAAP measures, are
presented as supplemental measures of the Company's financial
performance which management believes are useful to investors in
assessing the Company's ongoing financial performance that, when
reconciled to the corresponding U.S. GAAP measure, provide improved
comparability between periods through the exclusion of certain
items that management believes are not indicative of the Company's
core operating performance and which may obscure underlying
business results and trends. Management utilizes Adjusted Net
Income and Adjusted Net Income Per Share in its financial decision
making process, to evaluate performance of the Company and for
internal reporting, planning and forecasting purposes. Adjusted Net
Income is defined as net income attributable to Aptiv before
amortization, restructuring and other special items, including the
tax impact thereon. Adjusted Net Income Per Share is defined as
Adjusted Net Income divided by the Adjusted Weighted Average Number
of Diluted Shares Outstanding, as reconciled below, for the period.
Not all companies use identical calculations of Adjusted Net Income
and Adjusted Net Income Per Share, therefore this presentation may
not be comparable to other similarly titled measures of other
companies.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in millions, except
per share amounts)
|
|
Net income attributable
to ordinary shareholders
|
$
1,629
|
|
$
286
|
|
$
2,004
|
|
$
298
|
|
Mandatory convertible
preferred share dividends
|
—
|
|
15
|
|
29
|
|
47
|
|
Net income attributable
to Aptiv
|
1,629
|
|
301
|
|
2,033
|
|
345
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Amortization
|
59
|
|
37
|
|
177
|
|
112
|
|
Restructuring
|
28
|
|
11
|
|
81
|
|
52
|
|
Other acquisition and
portfolio project costs
|
20
|
|
2
|
|
45
|
|
13
|
|
Asset
impairments
|
—
|
|
5
|
|
—
|
|
8
|
|
Other charges related
to Ukraine/Russia conflict (a)
|
—
|
|
—
|
|
—
|
|
29
|
|
Compensation expense
related to acquisitions
|
7
|
|
—
|
|
20
|
|
—
|
|
Costs associated with
acquisitions and other transactions
|
—
|
|
6
|
|
4
|
|
8
|
|
Impairment of equity
investments without readily determinable fair value
|
—
|
|
—
|
|
18
|
|
—
|
|
Loss on change in fair
value of publicly traded equity securities
|
—
|
|
6
|
|
6
|
|
55
|
|
Tax impact of
intra-entity transfers of intellectual property and other related
transactions (b)
|
(1,359)
|
|
—
|
|
(1,359)
|
|
—
|
|
Tax impact of
adjusting items (c)
|
(17)
|
|
(4)
|
|
(44)
|
|
(16)
|
|
Adjusted net income
attributable to Aptiv
|
$
367
|
|
$
364
|
|
$
981
|
|
$
606
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average number of diluted shares outstanding (d)
|
283.01
|
|
283.47
|
|
283.44
|
|
283.47
|
|
Diluted net income per
share attributable to ordinary shareholders
|
$
5.76
|
|
$
1.05
|
|
$
7.17
|
|
$
1.10
|
|
Adjusted net income per
share
|
$
1.30
|
|
$
1.28
|
|
$
3.46
|
|
$
2.14
|
|
|
|
(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 third quarter of 2023. Furthermore, during
the third quarter, the Company's Swiss subsidiary was granted a ten
year tax incentive, beginning in 2024. This adjustment represents
the total income tax benefit recorded as a result of these
transactions during the three and nine months ended September 30,
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 nine months ended September 30, 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Weighted average number
of diluted shares outstanding
|
283.01
|
|
271.10
|
|
283.44
|
|
271.10
|
|
Weighted average MCPS
Converted Shares
|
—
|
|
12.37
|
|
—
|
|
12.37
|
|
Adjusted weighted
average number of diluted shares outstanding
|
283.01
|
|
283.47
|
|
283.44
|
|
283.47
|
|
Cash Flow Before
Financing: Cash Flow Before Financing is presented as a
supplemental measure of the Company's liquidity which is consistent
with the basis and manner in which management presents financial
information for the purpose of making internal operating decisions,
evaluating its liquidity and determining appropriate capital
allocation strategies. Management believes this measure is useful
to investors to understand how the Company's core operating
activities generate and use cash. Cash Flow Before Financing is
defined as cash provided by (used in) operating activities plus
cash provided by (used in) investing activities, adjusted for the
purchase price of business acquisitions and other transactions, the
cost of significant technology investments and net proceeds from
the divestiture of discontinued operations and other significant
businesses. Not all companies use identical calculations of Cash
Flow Before Financing, therefore this presentation may not be
comparable to other similarly titled measures of other companies.
The calculation of Cash Flow Before Financing does not reflect cash
used to service debt, pay dividends or repurchase shares and,
therefore, does not necessarily reflect funds available for
investment or other discretionary uses.
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
(in
millions)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net income
|
$
1,637
|
|
$
306
|
|
$
2,047
|
|
$
324
|
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
226
|
|
190
|
|
666
|
|
574
|
|
Restructuring expense,
net of cash paid
|
4
|
|
(8)
|
|
4
|
|
2
|
|
Working
capital
|
72
|
|
(238)
|
|
(301)
|
|
(990)
|
|
Pension
contributions
|
(6)
|
|
(6)
|
|
(20)
|
|
(15)
|
|
Increase in deferred
income tax assets from intra-entity
transfers of intellectual property and other related
transactions
|
(1,359)
|
|
—
|
|
(1,359)
|
|
—
|
|
Other, net
|
172
|
|
193
|
|
235
|
|
435
|
|
Net cash provided by
operating activities
|
746
|
|
437
|
|
1,272
|
|
330
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(212)
|
|
(212)
|
|
(703)
|
|
(666)
|
|
Proceeds from business
divestitures, net of cash sold
|
—
|
|
—
|
|
(17)
|
|
—
|
|
Cost of business
acquisitions and other transactions, net of
cash acquired
|
—
|
|
—
|
|
(83)
|
|
(220)
|
|
Proceeds from sale of
technology investments
|
—
|
|
—
|
|
—
|
|
3
|
|
Cost of technology
investments
|
—
|
|
(1)
|
|
(1)
|
|
(42)
|
|
Settlement of
derivatives
|
7
|
|
5
|
|
6
|
|
9
|
|
Other, net
|
—
|
|
—
|
|
3
|
|
3
|
|
Net cash used in
investing activities
|
(205)
|
|
(208)
|
|
(795)
|
|
(913)
|
|
|
|
|
|
|
|
|
|
Adjusting
items:
|
|
|
|
|
|
|
|
|
Adjustment for cost of
business acquisitions and other
transactions, net of cash acquired
|
—
|
|
—
|
|
83
|
|
220
|
|
Adjustment for cost of
significant technology investments
|
—
|
|
—
|
|
—
|
|
40
|
|
Cash flow before
financing
|
$
541
|
|
$
229
|
|
$
560
|
|
$
(323)
|
|
Financial
Guidance: The reconciliation of the forward-looking non-GAAP
financial measures provided in the Company's financial guidance to
the most comparable forward-looking GAAP measure is as
follows:
|
|
Estimated Full
Year
|
|
2023
(a)
|
|
($ in
millions)
|
|
Adjusted Operating
Income
|
$
|
|
Margin
(b)
|
|
Net income attributable
to Aptiv
|
$
2,275
|
|
|
|
Interest
expense
|
285
|
|
|
|
Other income,
net
|
(40)
|
|
|
|
Income tax
benefit
|
(1,180)
|
|
|
|
Equity loss, net of
tax
|
300
|
|
|
|
Net income
attributable to noncontrolling interest (c)
|
20
|
|
|
|
Operating
income
|
$
1,660
|
|
8.3 %
|
|
Amortization
|
240
|
|
|
|
Restructuring
|
140
|
|
|
|
Other acquisition and
portfolio project costs
|
55
|
|
|
|
Compensation expense
related to acquisitions
|
30
|
|
|
|
Adjusted operating
income
|
$
2,125
|
|
10.6 %
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
Net income attributable
to Aptiv
|
$
2,275
|
|
|
|
Interest
expense
|
285
|
|
|
|
Income tax
benefit
|
(1,180)
|
|
|
|
Net income
attributable to noncontrolling interest (c)
|
20
|
|
|
|
Depreciation and
amortization
|
920
|
|
|
|
EBITDA
|
$
2,320
|
|
11.5 %
|
|
Other income,
net
|
(40)
|
|
|
|
Equity loss, net of
tax
|
300
|
|
|
|
Restructuring
|
140
|
|
|
|
Other acquisition and
portfolio project costs
|
55
|
|
|
|
Compensation expense
related to acquisitions
|
30
|
|
|
|
Adjusted
EBITDA
|
$
2,805
|
|
14.0 %
|
|
|
|
(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
|
|
2023
(a)
|
|
Adjusted Net Income
Per Share
|
($ and shares in
millions, except per
share amounts)
|
|
Net income attributable
to ordinary shareholders
|
$
2,245
|
|
Mandatory convertible
preferred share dividends
|
30
|
|
Net income attributable
to Aptiv
|
2,275
|
|
Adjusting
items:
|
|
|
Amortization
|
240
|
|
Restructuring
|
140
|
|
Other acquisition and
portfolio project costs
|
55
|
|
Compensation expense
related to acquisitions
|
30
|
|
Costs associated with
acquisitions and other transactions
|
5
|
|
Loss on change in fair
value of publicly traded equity securities
|
5
|
|
Loss on change in fair
value of equity investments without readily determinable fair
value
|
20
|
|
Tax impact of
adjusting items (b)
|
(1,420)
|
|
Adjusted net income
attributable to Aptiv
|
$
1,350
|
|
|
|
Adjusted weighted
average number of diluted shares outstanding
|
284.00
|
|
Diluted net income per
share attributable to ordinary shareholders
|
$
8.00
|
|
Adjusted net income per
share
|
$
4.75
|
|
|
|
(a)
|
Prepared at the
estimated mid-point of the Company's financial guidance
range.
|
|
(b)
|
Represents the expected
income tax impacts of the adjustments made for amortization,
restructuring and other special items, including the tax impact of
intra-entity
transfers of certain intellectual property and other related
transactions, by calculating the income tax impact of these items
using the appropriate tax rate for the jurisdiction where the
charges are expected to be incurred.
|
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SOURCE Aptiv PLC
