Payment for Contingent Consideration Liability, Operating Activities

[Table of Contents](#i5ec3aabfaa534f9c8fa2d2a5b7677d19_7)  
The changes in the contingent consideration liability classified as a Level 3 measurement for the years ended December 31, 2021 and 2020 were as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | Year Ended December 31, |
|  | 2021 |  | 2020 |
|   | (in millions) |
| Fair value at beginning of year | $ | 52  |  |  | $ | 51  |  |
| Additions | 10  |  |  | —  |  |
| Payments | (52) |  |  | —  |  |
| Interest accretion | —  |  |  | 1  |  |
|  |  |  |  |
| Fair value at end of year | $ | 10  |  |  | $ | 52  |  |

During the year ended December 31, 2021, Aptiv recorded liabilities of $10 million for the estimated fair values of contingent consideration related to our acquisitions, as further described in Note 20. Acquisitions and Divestitures.In accordance with previous agreements, the Company was required to deposit $52 million related to the contingent consideration liability into an escrow account (of which $16 million was deposited in 2019, $16 million was deposited in 2020 and $20 million was deposited in 2021). These amounts were classified as restricted cash in the consolidated balance sheets upon being deposited into the escrow account. During the year ended December 31, 2021, the Company released $52 million from the escrow account which represented the maximum required amount to be paid under these agreements. In accordance with ASC Topic 230-10-45, $24 million of this payment was recorded as a cash outflow from financing activities in the consolidated statement of cash flows, which represents the acquisition date fair value of the contingent consideration liability, with the remaining $28 million recorded as a cash outflow from operating activities for year ended December 31, 2021.Publicly traded equity securities—All publicly traded equity securities are reported at fair value as of each reporting date. The measurement of the asset is based on quoted prices for identical assets on active market exchanges. Gains and losses from changes in the fair value of these securities are recorded within other income (expense), net on the consolidated statement of operations.As of December 31, 2021 and 2020, Aptiv had the following assets measured at fair value on a recurring basis:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Total |  | Quoted Prices in Active MarketsLevel 1 |  | Significant Other Observable InputsLevel 2 |  | Significant Unobservable InputsLevel 3 |
|   | (in millions) |
| As of December 31, 2021 |  |
| Commodity derivatives | $ | 34  |  |  | $ | —  |  |  | $ | 34  |  |  | $ | —  |  |
| Foreign currency derivatives | 7  |  |  | —  |  |  | 7  |  |  | —  |  |
| Publicly traded equity securities | 66  |  |  | 66  |  |  | —  |  |  | —  |  |
| Total | $ | 107  |  |  | $ | 66  |  |  | $ | 41  |  |  | $ | —  |  |
| As of December 31, 2020 |  |  |  |  |  |  |  |
| Commodity derivatives | $ | 35  |  |  | $ | —  |  |  | $ | 35  |  |  | $ | —  |  |
| Foreign currency derivatives | 35  |  |  | —  |  |  | 35  |  |  | —  |  |
|  |  |  |  |  |  |  |  |
| Total | $ | 70  |  |  | $ | —  |  |  | $ | 70  |  |  | $ | —  |  |

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