APTV · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

Aptiv PLC · 2026-11-03 · Importance 45 · Surprise 64

Aptiv recorded net discrete tax benefits of $8 million and $15 million for the three and nine months ended September 30, 2026, respectively, primarily from benefits associated with intangible-asset impairment charges and prior-year true-ups. The comparable 2025 periods included net discrete tax expense of $9 million and $250 million, primarily from valuation-allowance changes and legal-entity restructuring. The 2025 nine-month effective tax rate also included an unfavorable 477-point impact from a nondeductible Wind River goodwill impairment. Aptiv increased valuation allowances by $294 million in 2025 after OECD guidance reduced expected benefits from the Swiss tax incentive.

Key facts

• The OBBBA was enacted on July 4, 2025, included U.S. tax-law changes applicable to Aptiv beginning in 2025 and additional provisions applying in subsequent years, and was not expected to have a material impact on Aptiv’s consolidated financial statements. source
• Aptiv’s effective tax rate for the three and nine months ended September 30, 2026 included net discrete tax benefits of approximately $8 million and $15 million, respectively. source
• Aptiv’s effective tax rate for the three and nine months ended September 30, 2025 included net discrete tax expense of approximately $9 million and $250 million, respectively. source
• Aptiv’s nine-month 2025 effective tax rate included an unfavorable impact of approximately 477 points from the non-deductible Wind River goodwill impairment charge. source