Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 196

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 196
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icable to determine the unrecognized deferred tax liability on these temporary differences. There are no other material liabilities for income taxes on the undistributed earnings of foreign subsidiaries, as the Company has concluded that such earnings are either indefinitely reinvested or should not give rise to additional income tax liabilities as a result of the distribution of such earnings.Uncertain Tax PositionsThe Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in the Company’s tax returns that do not meet these recognition and measurement standards.A reconciliation of the gross change in the unrecognized tax benefits balance, excluding interest and penalties is as follows:Year Ended December 31,202420232022 (in millions)Balance at beginning of year$222 $224 $224 Additions related to current year3 4 12 Additions related to prior years14 11 29 Reductions related to prior years(9)(12)(33)Reductions due to expirations of statute of limitations(1)(2)(7)Settlements(2)(3)(1)Balance at end of year$227 $222 $224 A portion of the Company’s unrecognized tax benefits would, if recognized, reduce its effective tax rate. The remaining unrecognized tax benefits relate to tax positions that, if recognized, would result in an offsetting change in valuation allowance 

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and for which only the timing of the benefit is uncertain. Recognition of these tax benefits would reduce the Company’s effective tax rate only through a reduction of accrued interest and penalties. As of December 31, 2024 and 2023, the amounts of unrecognized tax benefit that would reduce the Company’s effective tax rate were $196 million and $185 million, respectively. For 2024 and 2023, respectively, $92 million and $74 million of reserves for uncertain tax positions would be offset by the write-off of a related deferred tax asset, if recognized.The Company recognizes interest and penalties relating to unrecognized tax benefits as part of income tax expense. Total accrued liabilities for interest and penalties were $31 million and $27 million at December 31, 2024 and 2023, respectively. Total interest and penalties recognized as part of income tax expense were an expense of $6 million, expense of $1 million, and benefit of $2 million for