Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 59

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 1A
Chunk 59
---
Finally, Aptiv is also subject to a Swiss issuance stamp tax levied at a rate of 1% on the fair value of share issuances and increases of our equity, other than in connection with qualifying restructurings like the Transaction. In addition, Aptiv is subject to certain other Swiss indirect taxes (e.g., VAT and Swiss securities transfer stamp tax).

Refer to Item 1. Business of this Annual Report on Form 10-K for further information on the Company’s reorganization transaction.

Planned Spin-off of Electrical Distribution Systems Business

We are pursuing a plan to separate our Electrical Distributions Systems business into an independent, publicly traded company. The proposed separation is contingent upon the satisfaction of a number of conditions, may not be completed on the currently contemplated timeline, or at all, and may not achieve the intended benefits.

On January 22, 2025, we announced our intent to pursue a separation of our Electrical Distribution Systems business through a spin-off to our shareholders. The proposed spin-off is subject to various conditions, is complex in nature, and may be affected by unanticipated developments, credit and equity markets, or changes in market conditions. As independent, publicly traded companies, each business will be smaller and less diversified, with a narrower business focus and may be more vulnerable to changing market conditions. The planned separation is intended to qualify as a tax-free transaction for both Swiss and U.S. federal income tax purposes. Completion of the spin-off will be contingent upon customary closing conditions. 

These or other unanticipated developments could delay or prevent the proposed spin-off or cause the proposed spin-off to occur on terms or conditions that are less favorable than anticipated. Further, our Board of Directors could decide, either because of a failure to satisfy closing conditions or because of market or other factors, to abandon the proposed spin-off.

We may not be able to achieve the full strategic and financial benefits that we anticipate to result from the spin-off, or such benefits may be delayed or not occur at all. The anticipated benefits of the spin-off are based on a number of assumptions, some of which may prove incorrect. We also expect to incur significant expenses in connection with the spin-off, certain of which will be incurred even if the spin-off is not completed. Executing the spin-off will require significant resources, time and attention from our senior management and employees, which could divert attention and resources away from other projects and the day-to-day operation of our business We may experience negative reactions from financial markets if we do not complete the spin-off in