Aptiv PLCAPTV
Aptiv PLC Goodwill & Intangibles Disclosure
INTANGIBLE ASSETS AND GOODWILL
(1)Represents goodwill impairment charge attributable to the Company’s Wind River reporting unit.
The changes in the carrying amount of intangible assets and goodwill were as follows as of December 31, 2025 and 2024. See Note 20. Acquisitions and Divestitures for a further description of the goodwill and intangible assets resulting from Aptiv’s acquisitions.
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Estimated Useful Lives | Gross Carrying Amount | Accumulated Amortization and Impairments (1) | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization and Impairments | Net Carrying Amount | |||||||||||||||||||||||||||||||||||
| (Years) | (in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||
| Amortized intangible assets: | |||||||||||||||||||||||||||||||||||||||||
| Patents and developed technology | 3-16 | $ | 1,580 | $ | 816 | $ | 764 | $ | 1,531 | $ | 724 | $ | 807 | ||||||||||||||||||||||||||||
| Customer relationships | 7-22 | 2,009 | 1,060 | 949 | 1,931 | 888 | 1,043 | ||||||||||||||||||||||||||||||||||
| Trade names | 15-20 | 210 | 85 | 125 | 204 | 72 | 132 | ||||||||||||||||||||||||||||||||||
| Total | 3,799 | 1,961 | 1,838 | 3,666 | 1,684 | 1,982 | |||||||||||||||||||||||||||||||||||
| Unamortized intangible assets: | |||||||||||||||||||||||||||||||||||||||||
| In-process research and development | — | 4 | — | 4 | 4 | — | 4 | ||||||||||||||||||||||||||||||||||
| Trade names | — | 162 | — | 162 | 154 | — | 154 | ||||||||||||||||||||||||||||||||||
| Goodwill | — | 5,244 | 648 | 4,596 | 5,024 | — | 5,024 | ||||||||||||||||||||||||||||||||||
| Total | $ | 9,209 | $ | 2,609 | $ | 6,600 | $ | 8,848 | $ | 1,684 | $ | 7,164 | |||||||||||||||||||||||||||||
(1)Includes accumulated goodwill impairments attributable to the Company’s Wind River reporting unit.
Estimated amortization expense for the years ending December 31, 2026 through 2030 is presented below:
| Year Ending December 31, | |||||||||||||||||||||||||||||
| 2026 | 2027 | 2028 | 2029 | 2030 | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Estimated amortization expense | $ | 215 | $ | 205 | $ | 170 | $ | 115 | $ | 110 | |||||||||||||||||||
A roll-forward of the gross carrying amounts of intangible assets for the years ended December 31, 2025 and 2024 is presented below:
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Balance at January 1 | $ | 8,848 | $ | 9,036 | |||||||
| Foreign currency translation and other | 361 | (188) | |||||||||
| Balance at December 31 | $ | 9,209 | $ | 8,848 | |||||||
A roll-forward of the accumulated amortization and impairments for the years ended December 31, 2025 and 2024 is presented below:
| 2025 | 2024 | ||||||||||
| (in millions) | |||||||||||
| Balance at January 1 | $ | 1,684 | $ | 1,486 | |||||||
| Amortization | 208 | 211 | |||||||||
| Impairment (1) | 648 | — | |||||||||
| Foreign currency translation and other | 69 | (13) | |||||||||
| Balance at December 31 | $ | 2,609 | $ | 1,684 | |||||||
(1)Represents goodwill impairment charge attributable to the Company’s Wind River reporting unit. See disclosures below for a description of the impairment charge.
The Company assessed changes in circumstances that occurred during the third quarter of 2025 related to increased discount rates and a reduction in forecasted cash flows, which led the Company to conclude that, when considering the events and factors in totality, it was more likely than not that the estimated fair value of its Wind River reporting unit within the Advanced Safety and User Experience segment would be below its carrying value at September 30, 2025. Accordingly, we performed an interim quantitative assessment for goodwill impairment. The modifications to forecasted reporting unit cash flows were attributable to the impacts resulting from market and industry delays in the broader adoption of software-defined vehicles. For example, certain of our OEM customers have recently announced delays in their software-defined vehicle investment strategies amidst reduced expectations for consumer demand for these products. Additionally, the Company is making incremental investments to further develop and grow the aerospace & defense and telecommunications businesses and product offerings for the reporting unit.
The estimated fair value of this reporting unit was primarily determined using discounted cash flow projections. Significant assumptions included management’s forecasted cash flows, including estimated future revenue growth, EBITDA margins and the discount rate. Forecasts of future cash flows are based on management’s best estimates. The discount rate was determined using a weighted average cost of capital adjusted for risk factors specific to the reporting unit. The estimated fair value of the reporting unit was developed based on current and future market conditions and the best information available at the impairment assessment date.
The assessment indicated that the carrying value of this reporting unit exceeded its estimated fair value, and as a result, during the third quarter of 2025, the Company recorded a non-cash, pre-tax goodwill impairment charge of approximately $648 million related to the Wind River reporting unit. Following the impairment, goodwill related to this reporting unit was approximately $1,631 million. The Company concluded there were no other goodwill impairments for the year ended December 31, 2025. No goodwill impairments were recorded in 2024 or 2023.
A roll-forward of the carrying amount of goodwill, by operating segment, for the years ended December 31, 2025 and 2024 is presented below:
Advanced Safety and User Experience | Engineered Components Group | Electrical Distribution Systems | Total | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Balance at January 1, 2024 | $ | 2,326 | $ | 2,237 | $ | 588 | $ | 5,151 | |||||||||||||||
| Foreign currency translation and other | — | (127) | — | (127) | |||||||||||||||||||
| Balance at December 31, 2024 | $ | 2,326 | $ | 2,110 | $ | 588 | $ | 5,024 | |||||||||||||||
| Foreign currency translation and other | 1 | 219 | — | 220 | |||||||||||||||||||
| Impairment (1) | (648) | — | — | (648) | |||||||||||||||||||
| Balance at December 31, 2025 | $ | 1,679 | $ | 2,329 | $ | 588 | $ | 4,596 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 6, 2024 | |
| 2022 | Feb 8, 2023 | |
| 2021 | Feb 7, 2022 | |
| 2020 | Feb 8, 2021 | |
| 2019 | Feb 3, 2020 | |
| 2018 | Feb 4, 2019 | |
| 2016 | Feb 6, 2017 | |
| 2015 | Feb 8, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.