Company: APTV
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001521332-25-000051
Chunk: 199

Company: Aptiv PLC
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 8
Chunk 199
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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, which is non-deductible for tax purposes. The Company’s effective tax rate for the three and nine months ended September 30, 2024 includes net discrete tax benefits of approximately $45 million and $65 million, respectively, primarily related to changes in valuation allowances. Also included as discrete items in the effective tax rate for the nine months ended September 30, 2024 are the beneficial impacts of a business reorganization that occurred in the second quarter of 2024 and approximately 5 points resulting from the Motional AD LLC (“Motional”) funding and ownership restructuring transactions, as described further in Note 21. Investment in Affiliates. There was no tax expense associated with the gain on the Motional transactions as Aptiv’s interest in Motional is exempt from capital gains tax in the jurisdiction in which it is owned. Aptiv PLC is a Swiss resident taxpayer and not a domestic corporation for U.S. federal income tax purposes. As such, it is not subject to U.S. tax on remitted foreign earnings and, as a result of its capital structure, is also generally not subject to Swiss tax on the repatriation of foreign earnings.Cash paid or withheld for income taxes was $208 million and $202 million for the nine months ended September 30, 2025 and 2024, respectively.

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On December 15, 2022, the European Union (the “E.U.”) Member States formally adopted the Pillar Two Framework (the “Framework”), which generally provides for a minimum effective tax rate of 15%, as established by the Organisation for Economic Co-operation and Development (the “OECD”). Many countries have enacted legislation consistent with the Framework effective at the beginning of 2024. The OECD continues to release additional guidance on these rules. The Company has proactively responded to these tax policy changes and will continue to closely monitor developments. Our effective tax rate for the nine months ended September 30, 2025 includes an unfavorable impact from the enacted Framework. On January 15, 2025, the