Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 195

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 195
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31, 2024, the Company has gross deferred tax assets of approximately $553 million for non-U.S. net operating loss (“NOL”) carryforwards with recorded valuation allowances of $368 million. These NOLs are available to offset future taxable income and realization is dependent on generating sufficient taxable income prior to expiration of the loss carryforwards. The NOLs primarily relate to Luxembourg, Poland, Switzerland, Germany, the U.K. and France. The NOL carryforwards have expiration dates ranging from one year to an indefinite period.Deferred tax assets include $1,605 million and $1,597 million of tax credit carryforwards with recorded valuation allowances of $1,267 million and $1,263 million at December 31, 2024 and 2023, respectively. The tax credits are primarily related to Switzerland and the U.S. These tax credit carryforwards expire at various times from 2025 through 2044.OECD Pillar Two Framework Amendment On January 15, 2025, the OECD released Administrative Guidance (the “Guidance) on Article 9.1 of the Global Anti-Base Erosion Model Rules (the “Model Rules”) which amends the Pillar Two Framework. Jurisdictions that have adopted the Framework may implement and administer their domestic laws consistent with the Model Rules and guidance. The Guidance eliminates the tax basis in certain deferred tax assets and tax credit carryforwards for purposes of global minimum tax established under the Framework. This Guidance may lead to an adjustment to the tax incentive granted to the Company’s Swiss subsidiary in 2023 under the terms of the incentive agreement and a reduction of deferred tax assets of up to approximately $300 million, net of valuation allowance. The Company is continuing to analyze the impacts of the Guidance and will recognize any resulting provisions in the first quarter of 2025.Cumulative Undistributed Foreign EarningsNo income taxes have been provided on indefinitely reinvested earnings of certain foreign subsidiaries at December 31, 2024.Taxes of $82 million have been accrued on undistributed earnings that are not indefinitely reinvested and are primarily related to China, Honduras, Morocco and Germany. As of December 31, 2024, taxes have not been provided on approximately $624 million of temporary differences related to undistributed earnings in various subsidiaries as those earnings have been indefinitely invested. If, in the future, these earnings were to be repatriated to Switzerland, additional tax provisions would be required. It is not pract