The following selected consolidated financial data were derived from our audited consolidated financial statements and should be read in conjunction with, and are qualified by reference to, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included elsewhere in this Annual Report. The financial information presented may not be indicative of our future performance.
The assets and liabilities and operating results for the previously reported Powertrain Systems and Thermal Systems segments have been reclassified as discontinued operations separate from the Company’s continuing operations for all periods presented. For further information regarding discontinued operations, see Note 25. Discontinued Operations to the audited consolidated financial statements included herein.
Year Ended December 31,
2018
2017
2016
2015 (1)
2014
(dollars and shares in millions, except per share data)
Statements of operations data:
Net sales
$
14,435
$
12,884
$
12,274
$
10,864
$
11,083
Depreciation and amortization (2)
676
546
489
344
338
Operating income
1,473
1,416
1,539
1,235
1,225
Interest expense
(141
)
(140
)
(155
)
(124
)
(131
)
Income from continuing operations
1,107
1,063
868
852
927
Income from discontinued operations, net of tax
—
365
458
683
513
Net income
1,107
1,428
1,326
1,535
1,440
Net income attributable to noncontrolling interest
40
73
69
85
89
Net income attributable to Aptiv
1,067
1,355
1,257
1,450
1,351
Net income per share data:
Basic net income per share:
Continuing operations
$
4.04
$
3.82
$
3.05
$
2.85
$
2.97
Discontinued operations
—
1.25
1.55
2.23
1.53
Basic net income per share attributable to Aptiv
$
4.04
$
5.07
$
4.60
$
5.08
$
4.50
Diluted net income per share:
Continuing operations
$
4.02
$
3.81
$
3.05
$
2.84
$
2.95
Discontinued operations
—
1.25
1.54
2.22
1.53
Diluted net income per share attributable to Aptiv
$
4.02
$
5.06
$
4.59
$
5.06
$
4.48
Weighted average shares outstanding
264
267
273
285
300
Cash dividends declared and paid
$
0.88
$
1.16
$
1.16
$
1.00
$
1.00
Other financial data:
Capital expenditures
$
846
$
698
$
657
$
503
$
457
Adjusted operating income (3)
1,751
1,594
1,623
1,360
1,340
Adjusted operating income margin (4)
12.1
%
12.4
%
13.2
%
12.5
%
12.1
%
Net cash provided by operating activities (5)
$
1,628
$
1,468
$
1,941
$
1,703
$
2,135
Net cash used in investing activities (5)
(2,048
)
(1,252
)
(578
)
(1,699
)
(1,186
)
Net cash (used in) provided by financing activities (5)
(555
)
456
(1,081
)
(284
)
(1,398
)
As of December 31,
2018
2017
2016
2015
2014
(in millions, except employee data)
Balance sheet and employment data:
Cash and cash equivalents
$
567
$
1,596
$
737
$
427
$
698
Total assets
$
12,480
$
12,169
$
12,292
$
11,973
$
10,721
Total debt
$
4,344
$
4,149
$
3,963
$
3,976
$
2,389
Working capital, as defined (6)
$
1,430
$
1,296
$
1,169
$
943
$
713
Shareholders’ equity
$
3,670
$
3,517
$
2,763
$
2,733
$
3,013
Global employees (7)
143,000
129,000
145,000
139,000
127,000
(1)
On December 18, 2015, we completed the acquisition of HellermannTyton Group PLC, a leading global manufacturer of high-performance and innovative cable management solutions. Given the timing of the acquisition it is not fully reflected in our 2015 results and impacts comparability to 2016 results.
(2)
Includes long-lived and intangible asset impairments.
(3)
Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, income (loss) from discontinued operations, net of tax, 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, gains (losses) on business divestitures and deferred compensation related to acquisitions. 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 should not be considered a substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Aptiv, which is the most directly comparable financial measure to Adjusted Operating Income that is in accordance with U.S. GAAP. Adjusted Operating Income, as determined and measured by Aptiv, should also not be compared to similarly titled measures reported by other companies.
The reconciliation of Adjusted Operating Income to operating income includes 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, gains (losses) on business divestitures and deferred compensation related to acquisitions. The reconciliation of Adjusted Operating Income to net income (loss) attributable to the Company is as follows:
Year Ended December 31,
2018
2017
2016
2015
2014
(in millions)
Net income attributable to Aptiv
$
1,067
$
1,355
$
1,257
$
1,450
$
1,351
Net income attributable to noncontrolling interest
40
73
69
85
89
Income from discontinued operations, net of tax
—
(365
)
(458
)
(683
)
(513
)
Income from continuing operations
1,107
1,063
868
852
927
Equity income, net of tax
(23
)
(31
)
(35
)
(16
)
(21
)
Income tax expense
250
223
167
161
146
Other (income) expense, net (a)
(2
)
21
384
114
42
Interest expense
141
140
155
124
131
Operating income (b)
1,473
1,416
1,539
1,235
1,225
Restructuring
109
129
167
65
88
Other acquisition and portfolio project costs
78
28
57
45
20
Asset impairments
34
9
1
7
7
(Gain) loss on business divestitures, net
—
—
(141
)
8
—
Deferred compensation related to nuTonomy acquisition
57
12
—
—
—
Adjusted operating income (b)
$
1,751
$
1,594
$
1,623
$
1,360
$
1,340
(a)
During the year ended December 31, 2016, the Company recorded a reserve of $300 million for litigation related to general unsecured claims against DPHH, as further described in Note 13. Commitments and Contingencies to the audited consolidated financial statements included herein.
(b)
On December 30, 2016, we completed the sale of our Mechatronics business, as further described in Note 20. Acquisitions and Divestitures to the audited consolidated financial statements included herein. Given the timing of the divestiture, the operating results of this business are reflected in our 2016 results and impacts comparability to 2017 results.
(4)
Adjusted operating income margin is defined as adjusted operating income as a percentage of net sales.
(5)
Includes amounts attributable to discontinued operations.
(6)
Working capital is calculated herein as accounts receivable plus inventories less accounts payable.
(7)
Excludes temporary and contract workers. As of December 31, 2018, we employed approximately 19,000 temporary and contract workers. Periods prior to December 31, 2017 include employees of discontinued operations.
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