Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 96

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 1
Chunk 96
---
 gain on equity method transactions$— $— $—  Nine Months Ended September 30, 20252024Favorable/(unfavorable) (in millions)Net gain on equity method transactions$46 $641 $(595)

Net gain on equity method transactions for the nine months ended September 30, 2025 includes a gain of approximately $33 million recorded as a result of the Motional funding transaction completed in May 2025 and a gain of approximately $13 million from the closing of the sale of TTTech Auto AG (“TTTech Auto”) in June 2025. 

Net gain on equity method transactions for the nine months ended September 30, 2024 includes a gain of approximately $641 million recorded as a result of the Motional funding and ownership restructuring transactions completed in May 2024. 

Refer to Note 21. Investments in Affiliates to the consolidated financial statements contained herein for additional information.

67

Income TaxesThree Months Ended September 30,20252024Favorable/(unfavorable)(in millions)Income tax expense$103 $32 $(71) Nine Months Ended September 30, 20252024Favorable/(unfavorable) (in millions)Income tax expense$504 $159 $(345)

The Company’s tax rate is affected by the fact that its parent entity was an Irish resident tax payer and became a Swiss resident tax payer in December 2024, the tax rates in Switzerland, Ireland 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. The Company’s effective tax rate is also impacted by the receipt of certain tax incentives and holidays that reduce the effective tax rate for certain subsidiaries below the statutory rate.

The Company’s effective tax rate for the three and nine months ended September 30, 2025 includes net discrete tax expense of approximately $12 million and $253 million, respectively, primarily related to a change in valuation allowance on the Swiss tax incentive, as described below, and the tax impact of legal entity restructuring, partially offset by changes in other valuation allowances and changes in reserves. The effective tax rate for the nine months ended September 30, 2025 also includes an unfavorable impact of approximately 48 points resulting from the Wind River non-cash goodwill impairment charge, as described further in Note 2. Significant Accounting Policies to the consolidated financial statements