Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

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 audited 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.


	Year Ended December 31,
	2020			2019			2018			2017			2016
	(dollars and shares in millions, except per share data)
Statements of operations data:
Net sales	$	13,066		$	14,357		$	14,435		$	12,884		$	12,274
Depreciation and amortization (1)	764			717			676			546			489
Operating income (2)	2,118			1,276			1,473			1,416			1,539
Interest expense	(164)			(164)			(141)			(140)			(155)
Income from continuing operations	1,822			1,009			1,107			1,063			868
Income from discontinued operations, net of tax	—			—			—			365			458
Net income	1,822			1,009			1,107			1,428			1,326
Net income attributable to noncontrolling interest	18			19			40			73			69
Net income attributable to Aptiv	1,804			990			1,067			1,355			1,257
Mandatory Convertible Preferred Share dividends	(35)			—			—			—			—
Net income attributable to ordinary shareholders	1,769			990			1,067			1,355			1,257

Net income per share data:
Basic net income per share:
Continuing operations	$	6.72		$	3.85		$	4.04		$	3.82		$	3.05
Discontinued operations	—			—			—			1.25			1.55
Basic net income per share attributable to ordinary shareholders	$	6.72		$	3.85		$	4.04		$	5.07		$	4.60
Diluted net income per share:
Continuing operations	$	6.66		$	3.85		$	4.02		$	3.81		$	3.05
Discontinued operations	—			—			—			1.25			1.54
Diluted net income per share attributable to ordinary shareholders	$	6.66		$	3.85		$	4.02		$	5.06		$	4.59
Weighted average shares outstanding	263			257			264			267			273
Cash dividends declared and paid per ordinary share	$	0.22		$	0.88		$	0.88		$	1.16		$	1.16


Other financial data:
Capital expenditures	$	584		$	781		$	846		$	698		$	657
Adjusted operating income (3)	867			1,548			1,751			1,594			1,623
Adjusted operating income margin (4)	6.6		%	10.8		%	12.1		%	12.4		%	13.2		%
Net cash provided by operating activities (5)	$	1,413		$	1,624		$	1,628		$	1,468		$	1,941
Net cash used in investing activities (5)	(626)			(1,111)			(2,048)			(1,252)			(578)
Net cash provided by (used in) financing activities (5)	1,613			(649)			(555)			456			(1,081)


	As of December 31,
	2020		2019		2018		2017		2016
	(in millions, except employee data)
Balance sheet and employment data:
Cash and cash equivalents	$	2,821	$	412	$	567	$	1,596	$	737
Total assets (6)	$	17,522	$	13,459	$	12,480	$	12,169	$	12,292
Total debt	$	4,101	$	4,364	$	4,344	$	4,149	$	3,963
Working capital, as defined (7)	$	1,538	$	1,392	$	1,430	$	1,296	$	1,169
Shareholders’ equity	$	8,100	$	4,011	$	3,670	$	3,517	$	2,763
Global employees (8)	151,000		141,000		143,000		129,000		145,000


(1)			Includes long-lived and intangible asset impairments.

(2)			The year ended December 31, 2020 includes a pre-tax gain of $1.4 billion for the completion of the Motional autonomous driving joint venture, as further discussed in Note 24. Held for Sale to the audited consolidated financial statements contained herein.
(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 other transactions 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 other transactions and deferred compensation related to acquisitions. The reconciliation of Adjusted Operating Income to net income attributable to the Company is as follows:


	Year Ended December 31,
	2020		2019		2018		2017		2016
	(in millions)
Net income attributable to Aptiv	$	1,804	$	990	$	1,067	$	1,355	$	1,257
Net income attributable to noncontrolling interest	18		19		40		73		69
Income from discontinued operations, net of tax	—		—		—		(365)		(458)
Income from continuing operations	1,822		1,009		1,107		1,063		868
Equity loss (income), net of tax	83		(15)		(23)		(31)		(35)
Income tax expense	49		132		250		223		167
Other (income) expense, net (a)	—		(14)		(2)		21		384
Interest expense	164		164		141		140		155
Operating income (b)	2,118		1,276		1,473		1,416		1,539
Restructuring	136		148		109		129		167

Other acquisition and portfolio project costs	23		71		78		28		57
Asset impairments	10		11		34		9		1
Gain on business divestitures and other transactions	(1,434)		—		—		—		(141)
Deferred compensation related to acquisitions	14		42		57		12		—
Adjusted operating income (b)	$	867	$	1,548	$	1,751	$	1,594	$	1,623

(a) During the year ended December 31, 2016, the Company recorded a reserve of $300 million for litigation related to general unsecured claims against the former Delphi Corporation.

(b) On December 30, 2016, we completed the sale of our Mechatronics business. 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)			The adoption of Accounting Standards Update (“ASU”) 2016-02, Leases, resulted in the recognition of operating lease right-of-use assets in the consolidated balance sheet as of December 31, 2019, which impacts comparability to 2018 and prior periods.
(7)			Working capital is calculated herein as accounts receivable plus inventories less accounts payable.
(8)			Excludes temporary and contract workers. As of December 31, 2020, we employed approximately 33,000 temporary and contract workers. Periods prior to December 31, 2017 include employees of discontinued operations.

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