Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 194

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 194
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 Switzerland enacted in the fourth quarter of 2023, which increased the statutory income tax rate, resulting in additional deferred tax benefit impacts of approximately $365 million, net of valuation allowances (which are reflected in the amounts above), during the three months ended December 31, 2023, from the amounts disclosed as of September 30, 2023.Deferred Income TaxesThe Company accounts for income taxes and the related accounts under the liability method. Deferred income tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and the bases of such assets and liabilities as measured by tax laws. Significant components of the deferred tax assets and liabilities are as follows: December 31, 20242023 (in millions)Deferred tax assets:Pension$61 $73 Employee benefits57 54 Net operating loss carryforwards578 1,756 Warranty and other liabilities72 85 Operating lease liabilities109 126 Capitalized R&D110 125 Tax credit carryforwards1,605 1,597 Intangibles1,634 1,773 Other175 193 Total gross deferred tax assets4,401 5,782 Less: valuation allowances(1,704)(3,032)Total deferred tax assets (1)$2,697 $2,750 Deferred tax liabilities:Fixed assets$27 $49 Tax on unremitted profits of certain foreign subsidiaries82 74 Intangibles496 550 Operating lease right-of-use assets101 120 Total gross deferred tax liabilities706 793 Net deferred tax assets$1,991 $1,957 (1)Reflects gross amount before jurisdictional netting of deferred tax assets and liabilities.Deferred tax assets and liabilities are classified as long-term in the consolidated balance sheets. Net deferred tax assets and liabilities are included in the consolidated balance sheets as follows: December 31, 20242023 (in millions)Long-term assets$2,281 $2,351 Long-term liabilities(290)(394)Total deferred tax asset$1,991 $1,957 The net deferred tax asset of $1,991 million as of December 31, 2024 is primarily comprised of deferred tax asset amounts in Switzerland, Mexico, Brazil and India, partially offset by deferred tax liabilities primarily in the U.S., Italy, Luxembourg and Ireland.

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Net Operating Loss and Tax Credit CarryforwardsAs of December