Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 191

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 191
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420232022 (in millions)Notional U.S. federal income taxes at statutory rate$452 $281 $208 Income taxed at other rates(236)(131)(61)Change in valuation allowance(12)1 (63)Other change in tax reserves16 (7)10 Intercompany reorganizations(27)(2,082)— Withholding taxes62 57 38 Tax credits(32)(19)(19)Change in tax law— (17)— Other adjustments— (11)8 Total income tax expense (benefit)$223 $(1,928)$121 Effective tax rate10 %(144)%12 %The Company’s tax rate is affected by the fact that its parent entity was an Irish resident taxpayer and became a Swiss resident tax payer in December 2024, the tax rates in Ireland, Switzerland and other jurisdictions in which the Company operates, the relative amount of income earned by jurisdiction and the relative amount of losses or income for which no tax benefit or expense was recognized due to a valuation allowance. Included in the non-U.S. income taxed at other rates are tax incentives obtained in various non-U.S. countries, primarily the High and New Technology Enterprise (“HNTE”) status in China and various incentives in Morocco, which totaled $27 million in 2024, $23 million in 2023 and $12 million in 2022, as well as tax benefit for income earned, and no tax benefit for losses incurred, in jurisdictions where a valuation allowance has been recorded. The Company currently benefits from tax holidays in various non-U.S. jurisdictions with expiration dates from 2025 through 2044. The income tax benefits attributable to these tax holidays are approximately $5 million ($0.02 per share) in 2024, $7 million ($0.03 per share) in 2023 and $3 million (less than $0.01 per share) in 2022.The effective tax rate in the year ended December 31, 2024 includes discrete tax benefits primarily associated with intercompany reorganizations. Also included as a discrete item in the effective tax rate for the year ended December 31, 2024 is the beneficial impact of approximately 4 points resulting from the Motional funding and ownership restructuring transactions, 

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as described further in Note 5. Investments in Affiliates. There was no tax expense associated with these gains as Aptiv’s interest in Motional is exempt from capital gains tax in the jurisdiction