Company: APTV
Filing Date: 2025-02-07
Form Type: 10-K
Source: 0001521332-25-000010
Chunk: 216

Company: Aptiv PLC
Filing Date: 2025-02-07
Form: 10-K
Item: Item 8
Chunk 216
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, for total consideration of $609 million. Intercable Automotive was formerly a subsidiary of Intercable S.r.l. The results of operations of Intercable Automotive are reported within the Signal and Power Solutions segment from the date of acquisition. The Company acquired its interest in Intercable Automotive utilizing cash on hand. Upon completion of the acquisition, Aptiv incurred transaction related expenses totaling approximately $10 million, which were recorded within other income (expense), net in the consolidated statements of operations in the fourth quarter of 2022.The acquisition was accounted for as a business combination, with the total purchase price allocated on a preliminary basis using information available, in the fourth quarter of 2022. The purchase price was increased by a net working capital adjustment of approximately $3 million, which was paid to the seller and recorded in the second quarter of 2023, and was allocated to goodwill. Additional adjustments recorded from the amounts disclosed as of December 31, 2022 also included an increase to property, plant and equipment of $9 million and minor adjustments to various other assets acquired and liabilities assumed, which, together with the net working capital adjustment described above, resulted in a net reduction to goodwill of $7 million. The final purchase price and related allocation to the acquired net assets of Intercable Automotive based on their estimated fair values is shown below (in millions):Assets acquired and liabilities assumedPurchase price, cash consideration, net of cash acquired$609 Inventory$78 Property, plant and equipment86 Intangible assets286 Deferred tax liabilities(83)Other liabilities, net(13)Identifiable net assets acquired354 Goodwill resulting from purchase350 Total704 Less: redeemable noncontrolling interest(95)Total purchase price allocation$609 Intangible assets include $202 million recognized for the fair value of customer-based assets with approximate useful lives of nineteen years, $63 million of technology-related assets with estimated useful lives of approximately fifteen years and $21 million recognized for the fair value of the trade name license with an approximate useful life of fifteen years. The estimated fair value of these assets was based on third-party valuations and management’s estimates, generally utilizing income and market approaches. Goodwill recognized in this transaction is primarily attributable to synergies expected to arise after the acquisition and the assembled workforce of Intercable Automotive and is not deductible for tax purposes.Concurrent with the acquisition, the Company entered into an agreement with the noncontrolling interest holders that provides the Company with the right to purchase, and the noncont