|
|
|
|
|
|
|
|
Percentage of Total Net Sales | Accounts and Other Receivables | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | September 30, 2014 | December 31, 2013 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
GM | 18 | % | 18 | % | 18 | % | 17 | % | $ | 462 | $ | 377 | ||||||||
VW | 9 | % | 10 | % | 10 | % | 10 | % | 240 | 199 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Productive material | $ | 681 | $ | 584 | |||
Work-in-process | 145 | 142 | |||||
Finished goods | 401 | 367 | |||||
Total | $ | 1,227 | $ | 1,093 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Value added tax receivable | $ | 188 | $ | 177 | |||
Deferred income taxes | 144 | 133 | |||||
Prepaid insurance and other expenses | 62 | 59 | |||||
Reimbursable engineering costs | 66 | 76 | |||||
Notes receivable | 21 | 45 | |||||
Income and other taxes receivable | 53 | 57 | |||||
Deposits to vendors | 9 | 9 | |||||
Derivative financial instruments (Note 14) | 22 | 15 | |||||
Other | 23 | 33 | |||||
Total | $ | 588 | $ | 604 |
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Deferred income taxes | $ | 268 | $ | 283 | |||
Debt issuance costs (Note 8) | 44 | 43 | |||||
Income and other taxes receivable | 134 | 123 | |||||
Reimbursable engineering costs | 95 | 79 | |||||
Value added tax receivable | 34 | 29 | |||||
Derivative financial instruments (Note 14) | 1 | 5 | |||||
Other | 66 | 64 | |||||
Total | $ | 642 | $ | 626 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Payroll-related obligations | $ | 309 | $ | 269 | |||
Employee benefits, including current pension obligations | 108 | 130 | |||||
Income and other taxes payable | 240 | 280 | |||||
Warranty obligations (Note 6) | 75 | 75 | |||||
Restructuring (Note 7) | 115 | 94 | |||||
Customer deposits | 37 | 38 | |||||
Deferred income taxes | 4 | 1 | |||||
Derivative financial instruments (Note 14) | 18 | 16 | |||||
Accrued interest | 19 | 24 | |||||
Other | 361 | 311 | |||||
Total | $ | 1,286 | $ | 1,238 |
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Environmental (Note 10) | $ | 18 | $ | 18 | |||
Extended disability benefits | 10 | 9 | |||||
Warranty obligations (Note 6) | 82 | 94 | |||||
Restructuring (Note 7) | 22 | 45 | |||||
Payroll-related obligations | 10 | 12 | |||||
Accrued income taxes | 25 | 34 | |||||
Deferred income taxes | 162 | 151 | |||||
Derivative financial instruments (Note 14) | 8 | 6 | |||||
Other | 35 | 40 | |||||
Total | $ | 372 | $ | 409 |
|
Warranty Obligations | |||
(in millions) | |||
Accrual balance at beginning of period | $ | 169 | |
Provision for estimated warranties incurred during the period | 44 | ||
Provision for changes in estimate for pre-existing warranties | (1 | ) | |
Settlements made during the period (in cash or in kind) | (49 | ) | |
Foreign currency translation and other | (6 | ) | |
Accrual balance at end of period | $ | 157 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Electrical/Electronic Architecture | $ | 24 | $ | 7 | $ | 50 | $ | 26 | |||||||
Powertrain Systems | 9 | 8 | 48 | 20 | |||||||||||
Electronics and Safety | 13 | 19 | 22 | 44 | |||||||||||
Thermal Systems | 1 | 3 | 4 | 5 | |||||||||||
Total | $ | 47 | $ | 37 | $ | 124 | $ | 95 |
Employee Termination Benefits Liability | Other Exit Costs Liability | Total | |||||||||
(in millions) | |||||||||||
Accrual balance at January 1, 2014 | $ | 135 | $ | 4 | $ | 139 | |||||
Provision for estimated expenses incurred during the period | 124 | — | 124 | ||||||||
Payments made during the period | (112 | ) | (2 | ) | (114 | ) | |||||
Foreign currency and other | (12 | ) | — | (12 | ) | ||||||
Accrual balance at September 30, 2014 | $ | 135 | $ | 2 | $ | 137 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Accounts receivable factoring | $ | — | $ | 1 | |||
5.875%, senior notes, due 2019 | — | 500 | |||||
6.125%, senior notes, due 2021 | 500 | 500 | |||||
5.00%, senior notes, due 2023 | 800 | 800 | |||||
4.15%, senior notes, due 2024 | 698 | — | |||||
Tranche A Term Loan, due 2018 | 400 | 564 | |||||
Capital leases and other | 56 | 47 | |||||
Total debt | 2,454 | 2,412 | |||||
Less: current portion | (37 | ) | (61 | ) | |||
Long-term debt | $ | 2,417 | $ | 2,351 |
September 30, 2014 | December 31, 2013 | ||||||||||
LIBOR plus | ABR plus | LIBOR plus | ABR plus | ||||||||
Revolving Credit Facility | 1.25 | % | 0.25 | % | 1.25 | % | 0.25 | % | |||
Tranche A Term Loan | 1.25 | % | 0.25 | % | 1.25 | % | 0.25 | % |
Borrowings as of | |||||||||
September 30, 2014 | Rates effective as of | ||||||||
LIBOR plus | (in millions) | September 30, 2014 | |||||||
Revolving Credit Facility | 1.25 | % | $ | — | — | % | |||
Tranche A Term Loan | 1.25 | % | 400 | 1.4375 | % |
|
Non-U.S. Plans | U.S. Plans | ||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 14 | $ | 13 | $ | — | $ | — | |||||||
Interest cost | 23 | 22 | 1 | — | |||||||||||
Expected return on plan assets | (19 | ) | (17 | ) | — | — | |||||||||
Curtailment loss | 4 | — | — | — | |||||||||||
Amortization of actuarial losses | 2 | 1 | — | — | |||||||||||
Net periodic benefit cost | $ | 24 | $ | 19 | $ | 1 | $ | — |
Non-U.S. Plans | U.S. Plans | ||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 44 | $ | 41 | $ | — | $ | — | |||||||
Interest cost | 73 | 65 | 2 | 1 | |||||||||||
Expected return on plan assets | (59 | ) | (52 | ) | — | — | |||||||||
Curtailment loss | 4 | — | — | — | |||||||||||
Amortization of actuarial losses | 6 | 5 | — | — | |||||||||||
Net periodic benefit cost | $ | 68 | $ | 59 | $ | 2 | $ | 1 |
|
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(dollars in millions) | |||||||||||||||
Income tax expense | $ | 63 | $ | 72 | $ | 200 | $ | 182 | |||||||
Effective tax rate | 16 | % | 20 | % | 16 | % | 16 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Tax credits (1) | $ | — | $ | — | $ | (2 | ) | $ | (22 | ) | |||||
Withholding taxes (2) | — | (1 | ) | (1 | ) | 3 | |||||||||
Other change in tax reserves (3) | — | (6 | ) | (6 | ) | (5 | ) | ||||||||
Change in tax law (4) | — | 12 | — | 12 | |||||||||||
Other adjustments (5) | (7 | ) | 8 | (11 | ) | 6 | |||||||||
Income tax (benefit) expense associated with unusual or infrequent items | $ | (7 | ) | $ | 13 | $ | (20 | ) | $ | (6 | ) |
(1) | For the nine months ended September 30, 2013, the tax benefit primarily relates to the retroactive reinstatement of the U.S research and development tax credit under The American Taxpayer Relief Act of 2012. |
(2) | For the nine months ended September 30, 2014 and September 30, 2013, the tax benefits and expense, respectively, primarily relate to the adjustment of the withholding tax liability on the undistributed earnings of certain foreign subsidiaries that are not indefinitely reinvested. |
(3) | For the nine months ended September 30, 2014 and the three and nine months ended September 30, 2013, the tax benefits primarily relate to adjustments in tax reserves which were individually insignificant. |
(4) | For the three and nine months ended September 30, 2013, the tax expense relates to the enactment of the United Kingdom Finance Act 2013 on July 23, 2013, which provided for a reduction to the corporate income tax rate from 23% to 21% effective April 1, 2014, with a further reduction to 20% effective April 1, 2015. The impact of this legislation was recorded as a discrete item during the third quarter of 2013, and resulted in increased tax expense of approximately $12 million due to the resultant impact on the net deferred tax asset balances. |
(5) | For the three and nine months ended September 30, 2014 and September 30, 2013, the tax benefits and expense, respectively, primarily relate to provision to return adjustments and other items which were individually insignificant. |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||
Balance at beginning of period | $ | (8 | ) | $ | (179 | ) | $ | (17 | ) | $ | (62 | ) | |||
Aggregate adjustment for the period | (176 | ) | 110 | (167 | ) | (7 | ) | ||||||||
Balance at end of period | (184 | ) | (69 | ) | (184 | ) | (69 | ) | |||||||
Gains (losses) on derivatives: | |||||||||||||||
Balance at beginning of period | $ | 9 | $ | (25 | ) | $ | 2 | $ | 14 | ||||||
Other comprehensive income before reclassifications (net tax effect of $8 million, $10 million, $5 million and $9 million) | (30 | ) | 4 | (27 | ) | (29 | ) | ||||||||
Reclassification to income (net tax effect of $3 million, $5 million, $5 million and $1 million) | 7 | 6 | 11 | — | |||||||||||
Balance at end of period | (14 | ) | (15 | ) | (14 | ) | (15 | ) | |||||||
Pension and postretirement plans: | |||||||||||||||
Balance at beginning of period | $ | (220 | ) | $ | (173 | ) | $ | (222 | ) | $ | (189 | ) | |||
Other comprehensive income before reclassifications (net tax effect of $4 million, $2 million, $3 million and $2 million) | 10 | (7 | ) | 8 | 6 | ||||||||||
Reclassification to income (net tax effect of $0 million, $0 million, $0 million and $1 million) | 2 | 2 | 6 | 5 | |||||||||||
Balance at end of period | (208 | ) | (178 | ) | (208 | ) | (178 | ) | |||||||
Accumulated other comprehensive (loss) income, end of period | $ | (406 | ) | $ | (262 | ) | $ | (406 | ) | $ | (262 | ) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||
Details about Accumulated Other Comprehensive Income Components | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | Affected Line Item in the Statement of Operations | |||||||
(in millions) | ||||||||||
Gains (losses) on derivatives: | ||||||||||
Commodity derivatives | $ | (3 | ) | $ | (13 | ) | Cost of sales | |||
Foreign currency derivatives | 1 | 7 | Cost of sales | |||||||
Foreign currency derivatives | (2 | ) | — | Other income | ||||||
(4 | ) | (6 | ) | Income before income taxes | ||||||
(3 | ) | (5 | ) | Income tax expense | ||||||
(7 | ) | (11 | ) | Net income | ||||||
— | — | Net income attributable to noncontrolling interest | ||||||||
$ | (7 | ) | $ | (11 | ) | Net income attributable to Delphi | ||||
Pension and postretirement plans: | ||||||||||
Actuarial gains/(losses) | $ | (2 | ) | $ | (6 | ) | (1) | |||
(2 | ) | (6 | ) | Income before income taxes | ||||||
— | — | Income tax expense | ||||||||
(2 | ) | (6 | ) | Net income | ||||||
— | — | Net income attributable to noncontrolling interest | ||||||||
$ | (2 | ) | $ | (6 | ) | Net income attributable to Delphi | ||||
Total reclassifications for the period | $ | (9 | ) | $ | (17 | ) |
(1) | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 9. Pension Benefits for additional details). |
|
Commodity | Quantity Hedged | Unit of Measure | Notional Amount (Approximate USD Equivalent) | |||||
(in thousands) | (in millions) | |||||||
Copper | 85,034 | pounds | $ | 265 | ||||
Primary Aluminum | 29,125 | pounds | 25 | |||||
Secondary Aluminum | 13,609 | pounds | 15 |
Foreign Currency | Quantity Hedged | Unit of Measure | Notional Amount (Approximate USD Equivalent) | |||||
(in millions) | ||||||||
Mexican Peso | 11,077 | MXN | $ | 825 | ||||
Euro | 184 | EUR | 235 | |||||
Polish Zloty | 363 | PLN | 110 | |||||
Chinese Yuan Renminbi | 538 | CNY | 85 | |||||
New Turkish Lira | 170 | TRY | 75 | |||||
Brazilian Real | 180 | BRL | 75 | |||||
Hungarian Forint | 16,194 | HUF | 65 |
Asset Derivatives | Liability Derivatives | Net Amounts of Assets and Liabilities Presented in the Balance Sheet | ||||||||||||
Balance Sheet Location | September 30, 2014 | Balance Sheet Location | September 30, 2014 | September 30, 2014 | ||||||||||
(in millions) | ||||||||||||||
Designated derivatives instruments: | ||||||||||||||
Commodity derivatives | Other current assets | $ | 1 | Accrued liabilities | $ | 11 | ||||||||
Foreign currency derivatives* | Other current assets | 3 | Other current assets | 2 | 1 | |||||||||
Foreign currency derivatives* | Accrued liabilities | 2 | Accrued liabilities | 8 | (6 | ) | ||||||||
Commodity derivatives | Other long-term assets | — | Other long-term liabilities | 3 | ||||||||||
Foreign currency derivatives* | Other long-term assets | 1 | Other long-term assets | — | 1 | |||||||||
Foreign currency derivatives* | Other long-term liabilities | — | Other long-term liabilities | 5 | (5 | ) | ||||||||
Total | $ | 7 | $ | 29 | ||||||||||
Derivatives not designated: | ||||||||||||||
Foreign currency derivatives* | Other current assets | $ | 20 | Other current assets | $ | — | 20 | |||||||
Foreign currency derivatives* | Accrued liabilities | — | Accrued liabilities | 1 | (1 | ) | ||||||||
Total | $ | 20 | $ | 1 |
Asset Derivatives | Liability Derivatives | Net Amounts of Assets and Liabilities Presented in the Balance Sheet | ||||||||||||
Balance Sheet Location | December 31, 2013 | Balance Sheet Location | December 31, 2013 | December 31, 2013 | ||||||||||
(in millions) | ||||||||||||||
Designated derivatives instruments: | ||||||||||||||
Commodity derivatives | Other current assets | $ | 2 | Accrued liabilities | $ | 9 | ||||||||
Foreign currency derivatives* | Other current assets | 16 | Other current assets | 3 | 13 | |||||||||
Foreign currency derivatives* | Accrued liabilities | 3 | Accrued liabilities | 10 | (7 | ) | ||||||||
Commodity derivatives | Other long-term assets | 1 | Other long-term liabilities | 2 | ||||||||||
Foreign currency derivatives* | Other long-term assets | 5 | Other long-term assets | 1 | 4 | |||||||||
Foreign currency derivatives* | Other long-term liabilities | 2 | Other long-term liabilities | 6 | (4 | ) | ||||||||
Total | $ | 29 | $ | 31 | ||||||||||
Derivatives not designated: | ||||||||||||||
Foreign currency derivatives* | Other current assets | $ | 3 | Other current assets | $ | 3 | — | |||||||
Total | $ | 3 | $ | 3 |
Three Months Ended September 30, 2014 | Loss Recognized in OCI (Effective Portion) | Loss Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | (13 | ) | $ | (3 | ) | $ | — | |||
Foreign currency derivatives | (25 | ) | (1 | ) | — | ||||||
Total | $ | (38 | ) | $ | (4 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives (1) | 22 | ||
Total | $ | 22 |
(1) | Primarily relates to amounts recognized in other income, which offset the losses recognized due to the remeasurement of intercompany loans. |
Three Months Ended September 30, 2013 | Gain (Loss) Recognized in OCI (Effective Portion) | Loss Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | 24 | $ | (8 | ) | $ | — | ||||
Foreign currency derivatives | (10 | ) | (3 | ) | — | ||||||
Total | $ | 14 | $ | (11 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives | 1 | ||
Total | $ | 1 |
Nine Months Ended September 30, 2014 | Loss Recognized in OCI (Effective Portion) | (Loss) Gain Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | (19 | ) | $ | (13 | ) | $ | — | |||
Foreign currency derivatives | (13 | ) | 7 | — | |||||||
Total | $ | (32 | ) | $ | (6 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives (1) | 22 | ||
Total | $ | 22 |
(1) | Primarily relates to amounts recognized in other income, which offset the losses recognized due to the remeasurement of intercompany loans. |
Nine Months Ended September 30, 2013 | Loss Recognized in OCI (Effective Portion) | (Loss) Gain Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | (31 | ) | $ | (17 | ) | $ | — | |||
Foreign currency derivatives | (7 | ) | 16 | — | |||||||
Total | $ | (38 | ) | $ | (1 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives | 1 | ||
Total | $ | 1 |
|
Total | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | ||||||||||||
(in millions) | |||||||||||||||
As of September 30, 2014: | |||||||||||||||
Commodity derivatives | $ | 1 | $ | — | $ | 1 | $ | — | |||||||
Foreign currency derivatives | 22 | — | 22 | — | |||||||||||
Total | $ | 23 | $ | — | $ | 23 | $ | — | |||||||
As of December 31, 2013: | |||||||||||||||
Commodity derivatives | $ | 3 | $ | — | $ | 3 | $ | — | |||||||
Foreign currency derivatives | 17 | — | 17 | — | |||||||||||
Total | $ | 20 | $ | — | $ | 20 | $ | — |
Total | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | ||||||||||||
(in millions) | |||||||||||||||
As of September 30, 2014: | |||||||||||||||
Commodity derivatives | $ | 14 | $ | — | $ | 14 | $ | — | |||||||
Foreign currency derivatives | 12 | — | 12 | — | |||||||||||
Total | $ | 26 | $ | — | $ | 26 | $ | — | |||||||
As of December 31, 2013: | |||||||||||||||
Commodity derivatives | $ | 11 | $ | — | $ | 11 | $ | — | |||||||
Foreign currency derivatives | 11 | — | 11 | — | |||||||||||
Total | $ | 22 | $ | — | $ | 22 | $ | — |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Interest income | $ | 2 | $ | 4 | $ | 6 | $ | 11 | |||||||
Loss on extinguishment of debt | — | — | (34 | ) | (39 | ) | |||||||||
Gain on insurance recovery | — | — | 14 | — | |||||||||||
Other, net | 3 | — | 6 | 3 | |||||||||||
Other income (expense), net | $ | 5 | $ | 4 | $ | (8 | ) | $ | (25 | ) |
|
Purchase price, net of cash acquired | $ | 978 | |
Property, plant and equipment | $ | 249 | |
Intangible assets | 278 | ||
Other assets purchased and liabilities assumed, net | (7 | ) | |
Identifiable net assets acquired | 520 | ||
Goodwill resulting from purchase | 458 | ||
Total purchase price allocation | $ | 978 |
|
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 4,144 | $ | — | $ | 4,144 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 3,388 | — | 3,388 | ||||||||||||||
Selling, general and administrative | 31 | — | 239 | — | 270 | ||||||||||||||
Amortization | — | — | 25 | — | 25 | ||||||||||||||
Restructuring | — | — | 47 | — | 47 | ||||||||||||||
Total operating expenses | 31 | — | 3,699 | — | 3,730 | ||||||||||||||
Operating (loss) income | (31 | ) | — | 445 | — | 414 | |||||||||||||
Interest (expense) income | (13 | ) | (45 | ) | (17 | ) | 42 | (33 | ) | ||||||||||
Other income (expense), net | 15 | 17 | 15 | (42 | ) | 5 | |||||||||||||
(Loss) income before income taxes and equity income | (29 | ) | (28 | ) | 443 | — | 386 | ||||||||||||
Income tax benefit (expense) | 1 | 10 | (74 | ) | — | (63 | ) | ||||||||||||
(Loss) income before equity income | (28 | ) | (18 | ) | 369 | — | 323 | ||||||||||||
Equity in net income of affiliates | — | — | 2 | — | 2 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 333 | 47 | — | (380 | ) | — | |||||||||||||
Net income (loss) | 305 | 29 | 371 | (380 | ) | 325 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 20 | — | 20 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 305 | $ | 29 | $ | 351 | $ | (380 | ) | $ | 305 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 12,871 | $ | — | $ | 12,871 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 10,507 | — | 10,507 | ||||||||||||||
Selling, general and administrative | 66 | — | 737 | — | 803 | ||||||||||||||
Amortization | — | — | 76 | — | 76 | ||||||||||||||
Restructuring | — | — | 124 | — | 124 | ||||||||||||||
Total operating expenses | 66 | — | 11,444 | — | 11,510 | ||||||||||||||
Operating (loss) income | (66 | ) | — | 1,427 | — | 1,361 | |||||||||||||
Interest (expense) income | (34 | ) | (137 | ) | (53 | ) | 123 | (101 | ) | ||||||||||
Other income (expense), net | 45 | 14 | 56 | (123 | ) | (8 | ) | ||||||||||||
(Loss) income before income taxes and equity income | (55 | ) | (123 | ) | 1,430 | — | 1,252 | ||||||||||||
Income tax benefit (expense) | 1 | 45 | (246 | ) | — | (200 | ) | ||||||||||||
(Loss) income before equity income | (54 | ) | (78 | ) | 1,184 | — | 1,052 | ||||||||||||
Equity in net income of affiliates | — | — | 20 | — | 20 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 1,061 | 189 | — | (1,250 | ) | — | |||||||||||||
Net income (loss) | 1,007 | 111 | 1,204 | (1,250 | ) | 1,072 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 65 | — | 65 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 1,007 | $ | 111 | $ | 1,139 | $ | (1,250 | ) | $ | 1,007 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 4,017 | $ | — | $ | 4,017 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 3,338 | — | 3,338 | ||||||||||||||
Selling, general and administrative | 41 | — | 187 | — | 228 | ||||||||||||||
Amortization | — | — | 27 | — | 27 | ||||||||||||||
Restructuring | — | — | 37 | — | 37 | ||||||||||||||
Total operating expenses | 41 | — | 3,589 | — | 3,630 | ||||||||||||||
Operating (loss) income | (41 | ) | — | 428 | — | 387 | |||||||||||||
Interest (expense) income | (15 | ) | (47 | ) | (17 | ) | 45 | (34 | ) | ||||||||||
Other income (expense), net | 15 | 15 | 19 | (45 | ) | 4 | |||||||||||||
(Loss) income before income taxes and equity income | (41 | ) | (32 | ) | 430 | — | 357 | ||||||||||||
Income tax benefit (expense) | — | 12 | (84 | ) | — | (72 | ) | ||||||||||||
(Loss) income before equity income | (41 | ) | (20 | ) | 346 | — | 285 | ||||||||||||
Equity in net income of affiliates | — | — | 8 | — | 8 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 312 | 74 | — | (386 | ) | — | |||||||||||||
Net income (loss) | 271 | 54 | 354 | (386 | ) | 293 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 22 | — | 22 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 271 | $ | 54 | $ | 332 | $ | (386 | ) | $ | 271 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 12,281 | $ | — | $ | 12,281 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 10,141 | — | 10,141 | ||||||||||||||
Selling, general and administrative | 120 | — | 579 | — | 699 | ||||||||||||||
Amortization | — | — | 79 | — | 79 | ||||||||||||||
Restructuring | — | — | 95 | — | 95 | ||||||||||||||
Total operating expenses | 120 | — | 10,894 | — | 11,014 | ||||||||||||||
Operating (loss) income | (120 | ) | — | 1,387 | — | 1,267 | |||||||||||||
Interest (expense) income | (41 | ) | (141 | ) | (54 | ) | 130 | (106 | ) | ||||||||||
Other income (expense), net | 45 | 9 | 51 | (130 | ) | (25 | ) | ||||||||||||
(Loss) income before income taxes and equity income | (116 | ) | (132 | ) | 1,384 | — | 1,136 | ||||||||||||
Income tax benefit (expense) | — | 49 | (231 | ) | — | (182 | ) | ||||||||||||
(Loss) income before equity income | (116 | ) | (83 | ) | 1,153 | — | 954 | ||||||||||||
Equity in net income of affiliates | — | — | 26 | — | 26 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 1,030 | 252 | — | (1,282 | ) | — | |||||||||||||
Net income (loss) | 914 | 169 | 1,179 | (1,282 | ) | 980 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 66 | — | 66 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 914 | $ | 169 | $ | 1,113 | $ | (1,282 | ) | $ | 914 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 305 | $ | 29 | $ | 371 | $ | (380 | ) | $ | 325 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | (179 | ) | — | (179 | ) | ||||||||||||
Net change in unrecognized loss on derivative instruments, net of tax | — | — | (23 | ) | — | (23 | ) | ||||||||||||
Employee benefit plans adjustment, net of tax | — | — | 12 | — | 12 | ||||||||||||||
Other comprehensive loss | — | — | (190 | ) | — | (190 | ) | ||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (187 | ) | (8 | ) | — | 195 | — | ||||||||||||
Comprehensive income (loss) | 118 | 21 | 181 | (185 | ) | 135 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 17 | — | 17 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 118 | $ | 21 | $ | 164 | $ | (185 | ) | $ | 118 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 1,007 | $ | 111 | $ | 1,204 | $ | (1,250 | ) | $ | 1,072 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | (172 | ) | — | (172 | ) | ||||||||||||
Net change in unrecognized loss on derivative instruments, net of tax | — | — | (16 | ) | — | (16 | ) | ||||||||||||
Employee benefit plans adjustment, net of tax | — | — | 14 | — | 14 | ||||||||||||||
Other comprehensive loss | — | — | (174 | ) | — | (174 | ) | ||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (169 | ) | 1 | — | 168 | — | |||||||||||||
Comprehensive income (loss) | 838 | 112 | 1,030 | (1,082 | ) | 898 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 60 | — | 60 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 838 | $ | 112 | $ | 970 | $ | (1,082 | ) | $ | 838 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 271 | $ | 54 | $ | 354 | $ | (386 | ) | $ | 293 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | 113 | — | 113 | ||||||||||||||
Net change in unrecognized gain on derivative instruments, net of tax | — | — | 10 | — | 10 | ||||||||||||||
Employee benefit plans adjustment, net of tax | — | — | (5 | ) | — | (5 | ) | ||||||||||||
Other comprehensive income | — | — | 118 | — | 118 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 115 | 12 | — | (127 | ) | — | |||||||||||||
Comprehensive income (loss) | 386 | 66 | 472 | (513 | ) | 411 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 386 | $ | 66 | $ | 447 | $ | (513 | ) | $ | 386 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 914 | $ | 169 | $ | 1,179 | $ | (1,282 | ) | $ | 980 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | (4 | ) | — | (4 | ) | ||||||||||||
Net change in unrecognized loss on derivative instruments, net of tax | — | — | (29 | ) | — | (29 | ) | ||||||||||||
Employee benefit plans adjustment, net of tax | — | — | 11 | — | 11 | ||||||||||||||
Other comprehensive loss | — | — | (22 | ) | — | (22 | ) | ||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (25 | ) | (27 | ) | — | 52 | — | ||||||||||||
Comprehensive income (loss) | 889 | 142 | 1,157 | (1,230 | ) | 958 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 69 | — | 69 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 889 | $ | 142 | $ | 1,088 | $ | (1,230 | ) | $ | 889 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 19 | $ | — | $ | 1,007 | $ | — | $ | 1,026 | |||||||||
Restricted cash | — | — | 2 | — | 2 | ||||||||||||||
Accounts receivable, net | — | — | 2,839 | — | 2,839 | ||||||||||||||
Intercompany receivables, current | 197 | 1,816 | 2,422 | (4,435 | ) | — | |||||||||||||
Inventories | — | — | 1,227 | — | 1,227 | ||||||||||||||
Other current assets | — | — | 588 | — | 588 | ||||||||||||||
Total current assets | 216 | 1,816 | 8,085 | (4,435 | ) | 5,682 | |||||||||||||
Long-term assets: | |||||||||||||||||||
Intercompany receivables, long-term | 820 | 932 | 1,291 | (3,043 | ) | — | |||||||||||||
Property, net | — | — | 3,273 | — | 3,273 | ||||||||||||||
Investments in affiliates | — | — | 243 | — | 243 | ||||||||||||||
Investments in subsidiaries | 6,073 | 656 | — | (6,729 | ) | — | |||||||||||||
Intangible assets, net | — | — | 1,083 | — | 1,083 | ||||||||||||||
Other long-term assets | — | 44 | 598 | — | 642 | ||||||||||||||
Total long-term assets | 6,893 | 1,632 | 6,488 | (9,772 | ) | 5,241 | |||||||||||||
Total assets | $ | 7,109 | $ | 3,448 | $ | 14,573 | $ | (14,207 | ) | $ | 10,923 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||
Accounts payable | — | — | 2,521 | — | 2,521 | ||||||||||||||
Intercompany payables, current | 2,913 | 74 | 1,449 | (4,436 | ) | — | |||||||||||||
Accrued liabilities | 11 | 18 | 1,257 | — | 1,286 | ||||||||||||||
Total current liabilities | 2,924 | 92 | 5,264 | (4,436 | ) | 3,844 | |||||||||||||
Long-term liabilities: | |||||||||||||||||||
Long-term debt | — | 2,398 | 19 | — | 2,417 | ||||||||||||||
Intercompany payables, long-term | 1,291 | 820 | 932 | (3,043 | ) | — | |||||||||||||
Pension benefit obligations | — | — | 911 | — | 911 | ||||||||||||||
Other long-term liabilities | — | — | 372 | — | 372 | ||||||||||||||
Total long-term liabilities | 1,291 | 3,218 | 2,234 | (3,043 | ) | 3,700 | |||||||||||||
Total liabilities | 4,215 | 3,310 | 7,498 | (7,479 | ) | 7,544 | |||||||||||||
Total Delphi shareholders’ equity | 2,894 | 138 | 6,590 | (6,728 | ) | 2,894 | |||||||||||||
Noncontrolling interest | — | — | 485 | — | 485 | ||||||||||||||
Total shareholders’ equity | 2,894 | 138 | 7,075 | (6,728 | ) | 3,379 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 7,109 | $ | 3,448 | $ | 14,573 | $ | (14,207 | ) | $ | 10,923 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 7 | $ | — | $ | 1,382 | $ | — | $ | 1,389 | |||||||||
Restricted cash | — | — | 4 | — | 4 | ||||||||||||||
Accounts receivable, net | — | — | 2,662 | — | 2,662 | ||||||||||||||
Intercompany receivables, current | 452 | 1,123 | 1,418 | (2,993 | ) | — | |||||||||||||
Inventories | — | — | 1,102 | (9 | ) | 1,093 | |||||||||||||
Other current assets | 1 | 10 | 600 | (7 | ) | 604 | |||||||||||||
Total current assets | 460 | 1,133 | 7,168 | (3,009 | ) | 5,752 | |||||||||||||
Long-term assets: | |||||||||||||||||||
Intercompany receivables, long-term | 561 | 888 | 1,283 | (2,732 | ) | — | |||||||||||||
Property, net | — | — | 3,216 | — | 3,216 | ||||||||||||||
Investments in affiliates | — | — | 234 | — | 234 | ||||||||||||||
Investments in subsidiaries | 5,181 | 1,130 | — | (6,311 | ) | — | |||||||||||||
Intangible assets, net | — | — | 1,219 | — | 1,219 | ||||||||||||||
Other long-term assets | — | 43 | 581 | 2 | 626 | ||||||||||||||
Total long-term assets | 5,742 | 2,061 | 6,533 | (9,041 | ) | 5,295 | |||||||||||||
Total assets | $ | 6,202 | $ | 3,194 | $ | 13,701 | $ | (12,050 | ) | $ | 11,047 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | — | $ | 25 | $ | 36 | $ | — | $ | 61 | |||||||||
Accounts payable | — | — | 2,595 | — | 2,595 | ||||||||||||||
Intercompany payables, current | 2,008 | 204 | 771 | (2,983 | ) | — | |||||||||||||
Accrued liabilities | — | 23 | 1,222 | (7 | ) | 1,238 | |||||||||||||
Total current liabilities | 2,008 | 252 | 4,624 | (2,990 | ) | 3,894 | |||||||||||||
Long-term liabilities: | |||||||||||||||||||
Long-term debt | — | 2,339 | 12 | — | 2,351 | ||||||||||||||
Intercompany payables, long-term | 1,283 | 571 | 888 | (2,742 | ) | — | |||||||||||||
Pension benefit obligations | — | — | 959 | — | 959 | ||||||||||||||
Other long-term liabilities | — | — | 409 | — | 409 | ||||||||||||||
Total long-term liabilities | 1,283 | 2,910 | 2,268 | (2,742 | ) | 3,719 | |||||||||||||
Total liabilities | 3,291 | 3,162 | 6,892 | (5,732 | ) | 7,613 | |||||||||||||
Total Delphi shareholders’ equity | 2,911 | 32 | 6,286 | (6,318 | ) | 2,911 | |||||||||||||
Noncontrolling interest | — | — | 523 | — | 523 | ||||||||||||||
Total shareholders’ equity | 2,911 | 32 | 6,809 | (6,318 | ) | 3,434 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 6,202 | $ | 3,194 | $ | 13,701 | $ | (12,050 | ) | $ | 11,047 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net cash provided by operating activities | $ | 37 | $ | — | $ | 1,225 | $ | — | $ | 1,262 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | — | (666 | ) | — | (666 | ) | ||||||||||||
Proceeds from sale of property/investments | — | — | 7 | — | 7 | ||||||||||||||
Decrease in restricted cash | — | — | 2 | — | 2 | ||||||||||||||
Loans to affiliates | — | (745 | ) | (848 | ) | 1,593 | — | ||||||||||||
Repayments of loans from affiliates | — | 55 | 254 | (309 | ) | — | |||||||||||||
Return of investments in subsidiaries | — | 270 | — | (270 | ) | — | |||||||||||||
Net cash (used in) provided by investing activities | — | (420 | ) | (1,251 | ) | 1,014 | (657 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net proceeds from other short-term debt agreements | — | — | 9 | — | 9 | ||||||||||||||
Repayments under long-term debt agreements | — | (164 | ) | — | — | (164 | ) | ||||||||||||
Repayment of senior notes | — | (526 | ) | — | — | (526 | ) | ||||||||||||
Proceeds from issuance of senior notes, net of issuance costs | — | 691 | — | — | 691 | ||||||||||||||
Dividend payments of consolidated affiliates to minority shareholders | — | — | (61 | ) | — | (61 | ) | ||||||||||||
Proceeds from borrowings from affiliates | 1,064 | 529 | — | (1,593 | ) | — | |||||||||||||
Payments on borrowings from affiliates | (199 | ) | (110 | ) | — | 309 | — | ||||||||||||
Capital distributions to affiliates | — | — | (270 | ) | 270 | — | |||||||||||||
Repurchase of ordinary shares | (662 | ) | — | — | — | (662 | ) | ||||||||||||
Distribution of cash dividends | (228 | ) | — | — | — | (228 | ) | ||||||||||||
Taxes withheld and paid on employees' restricted share awards | — | — | (8 | ) | — | (8 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (25 | ) | 420 | (330 | ) | (1,014 | ) | (949 | ) | ||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (19 | ) | — | (19 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 12 | — | (375 | ) | — | (363 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 7 | — | 1,382 | — | 1,389 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 19 | $ | — | $ | 1,007 | $ | — | $ | 1,026 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (100 | ) | $ | — | $ | 1,238 | $ | (68 | ) | $ | 1,070 | |||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | — | (512 | ) | — | (512 | ) | ||||||||||||
Proceeds from sale of property/investments | — | — | 24 | — | 24 | ||||||||||||||
Cost of business and technology acquisitions, net of cash acquired | — | — | (10 | ) | — | (10 | ) | ||||||||||||
Decrease in restricted cash | — | — | 3 | — | 3 | ||||||||||||||
Loans to affiliates | — | (795 | ) | (579 | ) | 1,374 | — | ||||||||||||
Repayments of loans from affiliates | — | 262 | 468 | (730 | ) | — | |||||||||||||
Return of investments in subsidiaries | — | 357 | — | (357 | ) | — | |||||||||||||
Net cash (used in) provided by investing activities | — | (176 | ) | (606 | ) | 287 | (495 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net repayments under other short-term debt agreements | — | — | (79 | ) | — | (79 | ) | ||||||||||||
Repayments under long-term debt agreements | — | (1,349 | ) | — | — | (1,349 | ) | ||||||||||||
Proceeds from issuance of senior secured term loans, net of issuance costs | — | 560 | — | — | 560 | ||||||||||||||
Proceeds from issuance of senior notes, net of issuance costs | — | 788 | — | — | 788 | ||||||||||||||
Dividend payments of consolidated affiliates to minority shareholders | — | — | (26 | ) | — | (26 | ) | ||||||||||||
Proceeds from borrowings from affiliates | 1,119 | 245 | 10 | (1,374 | ) | — | |||||||||||||
Payments on borrowings from affiliates | (493 | ) | — | (237 | ) | 730 | — | ||||||||||||
Capital distributions to affiliates | — | — | (357 | ) | 357 | — | |||||||||||||
Dividends paid to affiliates | — | (68 | ) | — | 68 | — | |||||||||||||
Repurchase of ordinary shares | (353 | ) | — | — | — | (353 | ) | ||||||||||||
Distribution of cash dividends | (159 | ) | — | — | — | (159 | ) | ||||||||||||
Taxes withheld and paid on employees' restricted share awards | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 114 | 176 | (703 | ) | (219 | ) | (632 | ) | |||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | 5 | — | 5 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 14 | — | (66 | ) | — | (52 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 2 | — | 1,103 | — | 1,105 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 16 | $ | — | $ | 1,037 | $ | — | $ | 1,053 |
|
• | Electrical/Electronic Architecture, which includes complete electrical architecture and component products. |
• | Powertrain Systems, which includes extensive systems integration expertise in gasoline, diesel and fuel handling and full end-to-end systems including fuel and air injection, combustion, electronics controls, exhaust handling, test and validation capabilities, aftermarket, and original equipment service. |
• | Electronics and Safety, which includes component and systems integration expertise in infotainment and connectivity, body controls and security systems, displays, mechatronics, passive and active safety electronics and electric and hybrid electric vehicle power electronics, as well as advanced development of software. |
• | Thermal Systems, which includes heating, ventilating and air conditioning (“HVAC”) systems, components for multiple transportation and other adjacent markets, and powertrain cooling and related technologies. |
• | Eliminations and Other, which includes i) the elimination of inter-segment transactions, and ii) certain other expenses and income of a non-operating or strategic nature. |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2014: | |||||||||||||||||||||||
Net sales | $ | 1,993 | $ | 1,131 | $ | 697 | $ | 390 | $ | (67 | ) | $ | 4,144 | ||||||||||
Depreciation and amortization | $ | 67 | $ | 50 | $ | 20 | $ | 13 | $ | — | $ | 150 | |||||||||||
Adjusted operating income | $ | 254 | $ | 118 | $ | 84 | $ | 12 | $ | — | $ | 468 | |||||||||||
Operating income | $ | 226 | $ | 108 | $ | 69 | $ | 11 | $ | — | $ | 414 | |||||||||||
Equity income (loss) | $ | 6 | $ | — | $ | — | $ | 3 | $ | (7 | ) | $ | 2 | ||||||||||
Net income attributable to noncontrolling interest | $ | 8 | $ | 6 | $ | — | $ | 6 | $ | — | $ | 20 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2013: | |||||||||||||||||||||||
Net sales | $ | 1,956 | $ | 1,048 | $ | 705 | $ | 364 | $ | (56 | ) | $ | 4,017 | ||||||||||
Depreciation and amortization | $ | 61 | $ | 48 | $ | 19 | $ | 10 | $ | — | $ | 138 | |||||||||||
Adjusted operating income | $ | 248 | $ | 94 | $ | 81 | $ | 5 | $ | — | $ | 428 | |||||||||||
Operating income | $ | 237 | $ | 86 | $ | 62 | $ | 2 | $ | — | $ | 387 | |||||||||||
Equity income (loss) | $ | 4 | $ | 1 | $ | — | $ | 4 | $ | (1 | ) | $ | 8 | ||||||||||
Net income attributable to noncontrolling interest | $ | 11 | $ | 6 | $ | — | $ | 5 | $ | — | $ | 22 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2014: | |||||||||||||||||||||||
Net sales | $ | 6,269 | $ | 3,433 | $ | 2,180 | $ | 1,176 | $ | (187 | ) | $ | 12,871 | ||||||||||
Depreciation and amortization | $ | 196 | $ | 149 | $ | 60 | $ | 36 | $ | — | $ | 441 | |||||||||||
Adjusted operating income | $ | 825 | $ | 375 | $ | 256 | $ | 42 | $ | — | $ | 1,498 | |||||||||||
Operating income | $ | 767 | $ | 326 | $ | 230 | $ | 38 | $ | — | $ | 1,361 | |||||||||||
Equity income (loss) | $ | 16 | $ | 2 | $ | — | $ | 12 | $ | (10 | ) | $ | 20 | ||||||||||
Net income attributable to noncontrolling interest | $ | 25 | $ | 24 | $ | — | $ | 16 | $ | — | $ | 65 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2013: | |||||||||||||||||||||||
Net sales | $ | 5,921 | $ | 3,316 | $ | 2,123 | $ | 1,097 | $ | (176 | ) | $ | 12,281 | ||||||||||
Depreciation and amortization | $ | 174 | $ | 140 | $ | 55 | $ | 32 | $ | — | $ | 401 | |||||||||||
Adjusted operating income | $ | 745 | $ | 354 | $ | 242 | $ | 31 | $ | — | $ | 1,372 | |||||||||||
Operating income | $ | 709 | $ | 334 | $ | 198 | $ | 26 | $ | — | $ | 1,267 | |||||||||||
Equity income (loss) | $ | 11 | $ | 4 | $ | — | $ | 12 | $ | (1 | ) | $ | 26 | ||||||||||
Net income attributable to noncontrolling interest | $ | 31 | $ | 22 | $ | — | $ | 13 | $ | — | $ | 66 |
(1) | Eliminations and Other includes the elimination of inter-segment transactions. |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2014: | |||||||||||||||||||||||
Adjusted operating income | $ | 254 | $ | 118 | $ | 84 | $ | 12 | $ | — | $ | 468 | |||||||||||
Restructuring | (24 | ) | (9 | ) | (13 | ) | (1 | ) | — | (47 | ) | ||||||||||||
Other acquisition-related costs | (3 | ) | — | — | — | — | (3 | ) | |||||||||||||||
Asset impairments | (1 | ) | (1 | ) | (2 | ) | — | — | (4 | ) | |||||||||||||
Operating income | $ | 226 | $ | 108 | $ | 69 | $ | 11 | $ | — | 414 | ||||||||||||
Interest expense | (33 | ) | |||||||||||||||||||||
Other income, net | 5 | ||||||||||||||||||||||
Income before income taxes and equity income | 386 | ||||||||||||||||||||||
Income tax expense | (63 | ) | |||||||||||||||||||||
Equity income, net of tax | 2 | ||||||||||||||||||||||
Net income | 325 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 20 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 305 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2013: | |||||||||||||||||||||||
Adjusted operating income | $ | 248 | $ | 94 | $ | 81 | $ | 5 | $ | — | $ | 428 | |||||||||||
Restructuring | (7 | ) | (8 | ) | (19 | ) | (3 | ) | — | (37 | ) | ||||||||||||
Other acquisition-related costs | (4 | ) | — | — | — | — | (4 | ) | |||||||||||||||
Operating income | $ | 237 | $ | 86 | $ | 62 | $ | 2 | $ | — | 387 | ||||||||||||
Interest expense | (34 | ) | |||||||||||||||||||||
Other income, net | 4 | ||||||||||||||||||||||
Income before income taxes and equity income | 357 | ||||||||||||||||||||||
Income tax expense | (72 | ) | |||||||||||||||||||||
Equity income, net of tax | 8 | ||||||||||||||||||||||
Net income | 293 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 22 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 271 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2014: | |||||||||||||||||||||||
Adjusted operating income | $ | 825 | $ | 375 | $ | 256 | $ | 42 | $ | — | $ | 1,498 | |||||||||||
Restructuring | (50 | ) | (48 | ) | (22 | ) | (4 | ) | — | (124 | ) | ||||||||||||
Other acquisition-related costs | (6 | ) | — | — | — | — | (6 | ) | |||||||||||||||
Asset impairments | (2 | ) | (1 | ) | (4 | ) | — | — | (7 | ) | |||||||||||||
Operating income | $ | 767 | $ | 326 | $ | 230 | $ | 38 | $ | — | 1,361 | ||||||||||||
Interest expense | (101 | ) | |||||||||||||||||||||
Other income, net | (8 | ) | |||||||||||||||||||||
Income before income taxes and equity income | 1,252 | ||||||||||||||||||||||
Income tax expense | (200 | ) | |||||||||||||||||||||
Equity income, net of tax | 20 | ||||||||||||||||||||||
Net income | 1,072 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 65 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 1,007 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2013: | |||||||||||||||||||||||
Adjusted operating income | $ | 745 | $ | 354 | $ | 242 | $ | 31 | $ | — | $ | 1,372 | |||||||||||
Restructuring | (26 | ) | (20 | ) | (44 | ) | (5 | ) | — | (95 | ) | ||||||||||||
Other acquisition-related costs | (10 | ) | — | — | — | — | (10 | ) | |||||||||||||||
Operating income | $ | 709 | $ | 334 | $ | 198 | $ | 26 | $ | — | 1,267 | ||||||||||||
Interest expense | (106 | ) | |||||||||||||||||||||
Other income, net | (25 | ) | |||||||||||||||||||||
Income before income taxes and equity income | 1,136 | ||||||||||||||||||||||
Income tax expense | (182 | ) | |||||||||||||||||||||
Equity income, net of tax | 26 | ||||||||||||||||||||||
Net income | 980 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 66 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 914 |
|
Percentage of Total Net Sales | Accounts and Other Receivables | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | September 30, 2014 | December 31, 2013 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
GM | 18 | % | 18 | % | 18 | % | 17 | % | $ | 462 | $ | 377 | ||||||||
VW | 9 | % | 10 | % | 10 | % | 10 | % | 240 | 199 |
|
Percentage of Total Net Sales | Accounts and Other Receivables | |||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | September 30, 2014 | December 31, 2013 | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
(in millions) | ||||||||||||||||||||
GM | 18 | % | 18 | % | 18 | % | 17 | % | $ | 462 | $ | 377 | ||||||||
VW | 9 | % | 10 | % | 10 | % | 10 | % | 240 | 199 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Productive material | $ | 681 | $ | 584 | |||
Work-in-process | 145 | 142 | |||||
Finished goods | 401 | 367 | |||||
Total | $ | 1,227 | $ | 1,093 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Value added tax receivable | $ | 188 | $ | 177 | |||
Deferred income taxes | 144 | 133 | |||||
Prepaid insurance and other expenses | 62 | 59 | |||||
Reimbursable engineering costs | 66 | 76 | |||||
Notes receivable | 21 | 45 | |||||
Income and other taxes receivable | 53 | 57 | |||||
Deposits to vendors | 9 | 9 | |||||
Derivative financial instruments (Note 14) | 22 | 15 | |||||
Other | 23 | 33 | |||||
Total | $ | 588 | $ | 604 |
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Deferred income taxes | $ | 268 | $ | 283 | |||
Debt issuance costs (Note 8) | 44 | 43 | |||||
Income and other taxes receivable | 134 | 123 | |||||
Reimbursable engineering costs | 95 | 79 | |||||
Value added tax receivable | 34 | 29 | |||||
Derivative financial instruments (Note 14) | 1 | 5 | |||||
Other | 66 | 64 | |||||
Total | $ | 642 | $ | 626 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Payroll-related obligations | $ | 309 | $ | 269 | |||
Employee benefits, including current pension obligations | 108 | 130 | |||||
Income and other taxes payable | 240 | 280 | |||||
Warranty obligations (Note 6) | 75 | 75 | |||||
Restructuring (Note 7) | 115 | 94 | |||||
Customer deposits | 37 | 38 | |||||
Deferred income taxes | 4 | 1 | |||||
Derivative financial instruments (Note 14) | 18 | 16 | |||||
Accrued interest | 19 | 24 | |||||
Other | 361 | 311 | |||||
Total | $ | 1,286 | $ | 1,238 |
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Environmental (Note 10) | $ | 18 | $ | 18 | |||
Extended disability benefits | 10 | 9 | |||||
Warranty obligations (Note 6) | 82 | 94 | |||||
Restructuring (Note 7) | 22 | 45 | |||||
Payroll-related obligations | 10 | 12 | |||||
Accrued income taxes | 25 | 34 | |||||
Deferred income taxes | 162 | 151 | |||||
Derivative financial instruments (Note 14) | 8 | 6 | |||||
Other | 35 | 40 | |||||
Total | $ | 372 | $ | 409 |
|
Warranty Obligations | |||
(in millions) | |||
Accrual balance at beginning of period | $ | 169 | |
Provision for estimated warranties incurred during the period | 44 | ||
Provision for changes in estimate for pre-existing warranties | (1 | ) | |
Settlements made during the period (in cash or in kind) | (49 | ) | |
Foreign currency translation and other | (6 | ) | |
Accrual balance at end of period | $ | 157 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Electrical/Electronic Architecture | $ | 24 | $ | 7 | $ | 50 | $ | 26 | |||||||
Powertrain Systems | 9 | 8 | 48 | 20 | |||||||||||
Electronics and Safety | 13 | 19 | 22 | 44 | |||||||||||
Thermal Systems | 1 | 3 | 4 | 5 | |||||||||||
Total | $ | 47 | $ | 37 | $ | 124 | $ | 95 |
Employee Termination Benefits Liability | Other Exit Costs Liability | Total | |||||||||
(in millions) | |||||||||||
Accrual balance at January 1, 2014 | $ | 135 | $ | 4 | $ | 139 | |||||
Provision for estimated expenses incurred during the period | 124 | — | 124 | ||||||||
Payments made during the period | (112 | ) | (2 | ) | (114 | ) | |||||
Foreign currency and other | (12 | ) | — | (12 | ) | ||||||
Accrual balance at September 30, 2014 | $ | 135 | $ | 2 | $ | 137 |
|
September 30, 2014 | December 31, 2013 | ||||||
(in millions) | |||||||
Accounts receivable factoring | $ | — | $ | 1 | |||
5.875%, senior notes, due 2019 | — | 500 | |||||
6.125%, senior notes, due 2021 | 500 | 500 | |||||
5.00%, senior notes, due 2023 | 800 | 800 | |||||
4.15%, senior notes, due 2024 | 698 | — | |||||
Tranche A Term Loan, due 2018 | 400 | 564 | |||||
Capital leases and other | 56 | 47 | |||||
Total debt | 2,454 | 2,412 | |||||
Less: current portion | (37 | ) | (61 | ) | |||
Long-term debt | $ | 2,417 | $ | 2,351 |
September 30, 2014 | December 31, 2013 | ||||||||||
LIBOR plus | ABR plus | LIBOR plus | ABR plus | ||||||||
Revolving Credit Facility | 1.25 | % | 0.25 | % | 1.25 | % | 0.25 | % | |||
Tranche A Term Loan | 1.25 | % | 0.25 | % | 1.25 | % | 0.25 | % |
Borrowings as of | |||||||||
September 30, 2014 | Rates effective as of | ||||||||
LIBOR plus | (in millions) | September 30, 2014 | |||||||
Revolving Credit Facility | 1.25 | % | $ | — | — | % | |||
Tranche A Term Loan | 1.25 | % | 400 | 1.4375 | % |
|
Non-U.S. Plans | U.S. Plans | ||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 14 | $ | 13 | $ | — | $ | — | |||||||
Interest cost | 23 | 22 | 1 | — | |||||||||||
Expected return on plan assets | (19 | ) | (17 | ) | — | — | |||||||||
Curtailment loss | 4 | — | — | — | |||||||||||
Amortization of actuarial losses | 2 | 1 | — | — | |||||||||||
Net periodic benefit cost | $ | 24 | $ | 19 | $ | 1 | $ | — |
Non-U.S. Plans | U.S. Plans | ||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 44 | $ | 41 | $ | — | $ | — | |||||||
Interest cost | 73 | 65 | 2 | 1 | |||||||||||
Expected return on plan assets | (59 | ) | (52 | ) | — | — | |||||||||
Curtailment loss | 4 | — | — | — | |||||||||||
Amortization of actuarial losses | 6 | 5 | — | — | |||||||||||
Net periodic benefit cost | $ | 68 | $ | 59 | $ | 2 | $ | 1 |
Non-U.S. Plans | U.S. Plans | ||||||||||||||
Three Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 14 | $ | 13 | $ | — | $ | — | |||||||
Interest cost | 23 | 22 | 1 | — | |||||||||||
Expected return on plan assets | (19 | ) | (17 | ) | — | — | |||||||||
Curtailment loss | 4 | — | — | — | |||||||||||
Amortization of actuarial losses | 2 | 1 | — | — | |||||||||||
Net periodic benefit cost | $ | 24 | $ | 19 | $ | 1 | $ | — |
Non-U.S. Plans | U.S. Plans | ||||||||||||||
Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Service cost | $ | 44 | $ | 41 | $ | — | $ | — | |||||||
Interest cost | 73 | 65 | 2 | 1 | |||||||||||
Expected return on plan assets | (59 | ) | (52 | ) | — | — | |||||||||
Curtailment loss | 4 | — | — | — | |||||||||||
Amortization of actuarial losses | 6 | 5 | — | — | |||||||||||
Net periodic benefit cost | $ | 68 | $ | 59 | $ | 2 | $ | 1 |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(dollars in millions) | |||||||||||||||
Income tax expense | $ | 63 | $ | 72 | $ | 200 | $ | 182 | |||||||
Effective tax rate | 16 | % | 20 | % | 16 | % | 16 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Tax credits (1) | $ | — | $ | — | $ | (2 | ) | $ | (22 | ) | |||||
Withholding taxes (2) | — | (1 | ) | (1 | ) | 3 | |||||||||
Other change in tax reserves (3) | — | (6 | ) | (6 | ) | (5 | ) | ||||||||
Change in tax law (4) | — | 12 | — | 12 | |||||||||||
Other adjustments (5) | (7 | ) | 8 | (11 | ) | 6 | |||||||||
Income tax (benefit) expense associated with unusual or infrequent items | $ | (7 | ) | $ | 13 | $ | (20 | ) | $ | (6 | ) |
(1) | For the nine months ended September 30, 2013, the tax benefit primarily relates to the retroactive reinstatement of the U.S research and development tax credit under The American Taxpayer Relief Act of 2012. |
(2) | For the nine months ended September 30, 2014 and September 30, 2013, the tax benefits and expense, respectively, primarily relate to the adjustment of the withholding tax liability on the undistributed earnings of certain foreign subsidiaries that are not indefinitely reinvested. |
(3) | For the nine months ended September 30, 2014 and the three and nine months ended September 30, 2013, the tax benefits primarily relate to adjustments in tax reserves which were individually insignificant. |
(4) | For the three and nine months ended September 30, 2013, the tax expense relates to the enactment of the United Kingdom Finance Act 2013 on July 23, 2013, which provided for a reduction to the corporate income tax rate from 23% to 21% effective April 1, 2014, with a further reduction to 20% effective April 1, 2015. The impact of this legislation was recorded as a discrete item during the third quarter of 2013, and resulted in increased tax expense of approximately $12 million due to the resultant impact on the net deferred tax asset balances. |
(5) | For the three and nine months ended September 30, 2014 and September 30, 2013, the tax benefits and expense, respectively, primarily relate to provision to return adjustments and other items which were individually insignificant. |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||
Balance at beginning of period | $ | (8 | ) | $ | (179 | ) | $ | (17 | ) | $ | (62 | ) | |||
Aggregate adjustment for the period | (176 | ) | 110 | (167 | ) | (7 | ) | ||||||||
Balance at end of period | (184 | ) | (69 | ) | (184 | ) | (69 | ) | |||||||
Gains (losses) on derivatives: | |||||||||||||||
Balance at beginning of period | $ | 9 | $ | (25 | ) | $ | 2 | $ | 14 | ||||||
Other comprehensive income before reclassifications (net tax effect of $8 million, $10 million, $5 million and $9 million) | (30 | ) | 4 | (27 | ) | (29 | ) | ||||||||
Reclassification to income (net tax effect of $3 million, $5 million, $5 million and $1 million) | 7 | 6 | 11 | — | |||||||||||
Balance at end of period | (14 | ) | (15 | ) | (14 | ) | (15 | ) | |||||||
Pension and postretirement plans: | |||||||||||||||
Balance at beginning of period | $ | (220 | ) | $ | (173 | ) | $ | (222 | ) | $ | (189 | ) | |||
Other comprehensive income before reclassifications (net tax effect of $4 million, $2 million, $3 million and $2 million) | 10 | (7 | ) | 8 | 6 | ||||||||||
Reclassification to income (net tax effect of $0 million, $0 million, $0 million and $1 million) | 2 | 2 | 6 | 5 | |||||||||||
Balance at end of period | (208 | ) | (178 | ) | (208 | ) | (178 | ) | |||||||
Accumulated other comprehensive (loss) income, end of period | $ | (406 | ) | $ | (262 | ) | $ | (406 | ) | $ | (262 | ) |
Reclassification out of Accumulated Other Comprehensive Income | ||||||||||
Details about Accumulated Other Comprehensive Income Components | Three Months Ended September 30, 2014 | Nine Months Ended September 30, 2014 | Affected Line Item in the Statement of Operations | |||||||
(in millions) | ||||||||||
Gains (losses) on derivatives: | ||||||||||
Commodity derivatives | $ | (3 | ) | $ | (13 | ) | Cost of sales | |||
Foreign currency derivatives | 1 | 7 | Cost of sales | |||||||
Foreign currency derivatives | (2 | ) | — | Other income | ||||||
(4 | ) | (6 | ) | Income before income taxes | ||||||
(3 | ) | (5 | ) | Income tax expense | ||||||
(7 | ) | (11 | ) | Net income | ||||||
— | — | Net income attributable to noncontrolling interest | ||||||||
$ | (7 | ) | $ | (11 | ) | Net income attributable to Delphi | ||||
Pension and postretirement plans: | ||||||||||
Actuarial gains/(losses) | $ | (2 | ) | $ | (6 | ) | (1) | |||
(2 | ) | (6 | ) | Income before income taxes | ||||||
— | — | Income tax expense | ||||||||
(2 | ) | (6 | ) | Net income | ||||||
— | — | Net income attributable to noncontrolling interest | ||||||||
$ | (2 | ) | $ | (6 | ) | Net income attributable to Delphi | ||||
Total reclassifications for the period | $ | (9 | ) | $ | (17 | ) |
(1) | These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 9. Pension Benefits for additional details). |
|
Commodity | Quantity Hedged | Unit of Measure | Notional Amount (Approximate USD Equivalent) | |||||
(in thousands) | (in millions) | |||||||
Copper | 85,034 | pounds | $ | 265 | ||||
Primary Aluminum | 29,125 | pounds | 25 | |||||
Secondary Aluminum | 13,609 | pounds | 15 |
Foreign Currency | Quantity Hedged | Unit of Measure | Notional Amount (Approximate USD Equivalent) | |||||
(in millions) | ||||||||
Mexican Peso | 11,077 | MXN | $ | 825 | ||||
Euro | 184 | EUR | 235 | |||||
Polish Zloty | 363 | PLN | 110 | |||||
Chinese Yuan Renminbi | 538 | CNY | 85 | |||||
New Turkish Lira | 170 | TRY | 75 | |||||
Brazilian Real | 180 | BRL | 75 | |||||
Hungarian Forint | 16,194 | HUF | 65 |
Asset Derivatives | Liability Derivatives | Net Amounts of Assets and Liabilities Presented in the Balance Sheet | ||||||||||||
Balance Sheet Location | September 30, 2014 | Balance Sheet Location | September 30, 2014 | September 30, 2014 | ||||||||||
(in millions) | ||||||||||||||
Designated derivatives instruments: | ||||||||||||||
Commodity derivatives | Other current assets | $ | 1 | Accrued liabilities | $ | 11 | ||||||||
Foreign currency derivatives* | Other current assets | 3 | Other current assets | 2 | 1 | |||||||||
Foreign currency derivatives* | Accrued liabilities | 2 | Accrued liabilities | 8 | (6 | ) | ||||||||
Commodity derivatives | Other long-term assets | — | Other long-term liabilities | 3 | ||||||||||
Foreign currency derivatives* | Other long-term assets | 1 | Other long-term assets | — | 1 | |||||||||
Foreign currency derivatives* | Other long-term liabilities | — | Other long-term liabilities | 5 | (5 | ) | ||||||||
Total | $ | 7 | $ | 29 | ||||||||||
Derivatives not designated: | ||||||||||||||
Foreign currency derivatives* | Other current assets | $ | 20 | Other current assets | $ | — | 20 | |||||||
Foreign currency derivatives* | Accrued liabilities | — | Accrued liabilities | 1 | (1 | ) | ||||||||
Total | $ | 20 | $ | 1 |
Asset Derivatives | Liability Derivatives | Net Amounts of Assets and Liabilities Presented in the Balance Sheet | ||||||||||||
Balance Sheet Location | December 31, 2013 | Balance Sheet Location | December 31, 2013 | December 31, 2013 | ||||||||||
(in millions) | ||||||||||||||
Designated derivatives instruments: | ||||||||||||||
Commodity derivatives | Other current assets | $ | 2 | Accrued liabilities | $ | 9 | ||||||||
Foreign currency derivatives* | Other current assets | 16 | Other current assets | 3 | 13 | |||||||||
Foreign currency derivatives* | Accrued liabilities | 3 | Accrued liabilities | 10 | (7 | ) | ||||||||
Commodity derivatives | Other long-term assets | 1 | Other long-term liabilities | 2 | ||||||||||
Foreign currency derivatives* | Other long-term assets | 5 | Other long-term assets | 1 | 4 | |||||||||
Foreign currency derivatives* | Other long-term liabilities | 2 | Other long-term liabilities | 6 | (4 | ) | ||||||||
Total | $ | 29 | $ | 31 | ||||||||||
Derivatives not designated: | ||||||||||||||
Foreign currency derivatives* | Other current assets | $ | 3 | Other current assets | $ | 3 | — | |||||||
Total | $ | 3 | $ | 3 |
Three Months Ended September 30, 2014 | Loss Recognized in OCI (Effective Portion) | Loss Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | (13 | ) | $ | (3 | ) | $ | — | |||
Foreign currency derivatives | (25 | ) | (1 | ) | — | ||||||
Total | $ | (38 | ) | $ | (4 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives (1) | 22 | ||
Total | $ | 22 |
(1) | Primarily relates to amounts recognized in other income, which offset the losses recognized due to the remeasurement of intercompany loans. |
Three Months Ended September 30, 2013 | Gain (Loss) Recognized in OCI (Effective Portion) | Loss Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | 24 | $ | (8 | ) | $ | — | ||||
Foreign currency derivatives | (10 | ) | (3 | ) | — | ||||||
Total | $ | 14 | $ | (11 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives | 1 | ||
Total | $ | 1 |
Nine Months Ended September 30, 2014 | Loss Recognized in OCI (Effective Portion) | (Loss) Gain Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | (19 | ) | $ | (13 | ) | $ | — | |||
Foreign currency derivatives | (13 | ) | 7 | — | |||||||
Total | $ | (32 | ) | $ | (6 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives (1) | 22 | ||
Total | $ | 22 |
(1) | Primarily relates to amounts recognized in other income, which offset the losses recognized due to the remeasurement of intercompany loans. |
Nine Months Ended September 30, 2013 | Loss Recognized in OCI (Effective Portion) | (Loss) Gain Reclassified from OCI into Income (Effective Portion) | Gain Recognized in Income (Ineffective Portion Excluded from Effectiveness Testing) | ||||||||
(in millions) | |||||||||||
Designated derivatives instruments: | |||||||||||
Commodity derivatives | $ | (31 | ) | $ | (17 | ) | $ | — | |||
Foreign currency derivatives | (7 | ) | 16 | — | |||||||
Total | $ | (38 | ) | $ | (1 | ) | $ | — |
Gain Recognized in Income | |||
(in millions) | |||
Derivatives not designated: | |||
Commodity derivatives | $ | — | |
Foreign currency derivatives | 1 | ||
Total | $ | 1 |
|
Total | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | ||||||||||||
(in millions) | |||||||||||||||
As of September 30, 2014: | |||||||||||||||
Commodity derivatives | $ | 1 | $ | — | $ | 1 | $ | — | |||||||
Foreign currency derivatives | 22 | — | 22 | — | |||||||||||
Total | $ | 23 | $ | — | $ | 23 | $ | — | |||||||
As of December 31, 2013: | |||||||||||||||
Commodity derivatives | $ | 3 | $ | — | $ | 3 | $ | — | |||||||
Foreign currency derivatives | 17 | — | 17 | — | |||||||||||
Total | $ | 20 | $ | — | $ | 20 | $ | — |
Total | Quoted Prices in Active Markets Level 1 | Significant Other Observable Inputs Level 2 | Significant Unobservable Inputs Level 3 | ||||||||||||
(in millions) | |||||||||||||||
As of September 30, 2014: | |||||||||||||||
Commodity derivatives | $ | 14 | $ | — | $ | 14 | $ | — | |||||||
Foreign currency derivatives | 12 | — | 12 | — | |||||||||||
Total | $ | 26 | $ | — | $ | 26 | $ | — | |||||||
As of December 31, 2013: | |||||||||||||||
Commodity derivatives | $ | 11 | $ | — | $ | 11 | $ | — | |||||||
Foreign currency derivatives | 11 | — | 11 | — | |||||||||||
Total | $ | 22 | $ | — | $ | 22 | $ | — |
|
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
(in millions) | |||||||||||||||
Interest income | $ | 2 | $ | 4 | $ | 6 | $ | 11 | |||||||
Loss on extinguishment of debt | — | — | (34 | ) | (39 | ) | |||||||||
Gain on insurance recovery | — | — | 14 | — | |||||||||||
Other, net | 3 | — | 6 | 3 | |||||||||||
Other income (expense), net | $ | 5 | $ | 4 | $ | (8 | ) | $ | (25 | ) |
|
Purchase price, net of cash acquired | $ | 978 | |
Property, plant and equipment | $ | 249 | |
Intangible assets | 278 | ||
Other assets purchased and liabilities assumed, net | (7 | ) | |
Identifiable net assets acquired | 520 | ||
Goodwill resulting from purchase | 458 | ||
Total purchase price allocation | $ | 978 |
|
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 4,144 | $ | — | $ | 4,144 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 3,388 | — | 3,388 | ||||||||||||||
Selling, general and administrative | 31 | — | 239 | — | 270 | ||||||||||||||
Amortization | — | — | 25 | — | 25 | ||||||||||||||
Restructuring | — | — | 47 | — | 47 | ||||||||||||||
Total operating expenses | 31 | — | 3,699 | — | 3,730 | ||||||||||||||
Operating (loss) income | (31 | ) | — | 445 | — | 414 | |||||||||||||
Interest (expense) income | (13 | ) | (45 | ) | (17 | ) | 42 | (33 | ) | ||||||||||
Other income (expense), net | 15 | 17 | 15 | (42 | ) | 5 | |||||||||||||
(Loss) income before income taxes and equity income | (29 | ) | (28 | ) | 443 | — | 386 | ||||||||||||
Income tax benefit (expense) | 1 | 10 | (74 | ) | — | (63 | ) | ||||||||||||
(Loss) income before equity income | (28 | ) | (18 | ) | 369 | — | 323 | ||||||||||||
Equity in net income of affiliates | — | — | 2 | — | 2 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 333 | 47 | — | (380 | ) | — | |||||||||||||
Net income (loss) | 305 | 29 | 371 | (380 | ) | 325 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 20 | — | 20 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 305 | $ | 29 | $ | 351 | $ | (380 | ) | $ | 305 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 12,871 | $ | — | $ | 12,871 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 10,507 | — | 10,507 | ||||||||||||||
Selling, general and administrative | 66 | — | 737 | — | 803 | ||||||||||||||
Amortization | — | — | 76 | — | 76 | ||||||||||||||
Restructuring | — | — | 124 | — | 124 | ||||||||||||||
Total operating expenses | 66 | — | 11,444 | — | 11,510 | ||||||||||||||
Operating (loss) income | (66 | ) | — | 1,427 | — | 1,361 | |||||||||||||
Interest (expense) income | (34 | ) | (137 | ) | (53 | ) | 123 | (101 | ) | ||||||||||
Other income (expense), net | 45 | 14 | 56 | (123 | ) | (8 | ) | ||||||||||||
(Loss) income before income taxes and equity income | (55 | ) | (123 | ) | 1,430 | — | 1,252 | ||||||||||||
Income tax benefit (expense) | 1 | 45 | (246 | ) | — | (200 | ) | ||||||||||||
(Loss) income before equity income | (54 | ) | (78 | ) | 1,184 | — | 1,052 | ||||||||||||
Equity in net income of affiliates | — | — | 20 | — | 20 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 1,061 | 189 | — | (1,250 | ) | — | |||||||||||||
Net income (loss) | 1,007 | 111 | 1,204 | (1,250 | ) | 1,072 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 65 | — | 65 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 1,007 | $ | 111 | $ | 1,139 | $ | (1,250 | ) | $ | 1,007 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 4,017 | $ | — | $ | 4,017 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 3,338 | — | 3,338 | ||||||||||||||
Selling, general and administrative | 41 | — | 187 | — | 228 | ||||||||||||||
Amortization | — | — | 27 | — | 27 | ||||||||||||||
Restructuring | — | — | 37 | — | 37 | ||||||||||||||
Total operating expenses | 41 | — | 3,589 | — | 3,630 | ||||||||||||||
Operating (loss) income | (41 | ) | — | 428 | — | 387 | |||||||||||||
Interest (expense) income | (15 | ) | (47 | ) | (17 | ) | 45 | (34 | ) | ||||||||||
Other income (expense), net | 15 | 15 | 19 | (45 | ) | 4 | |||||||||||||
(Loss) income before income taxes and equity income | (41 | ) | (32 | ) | 430 | — | 357 | ||||||||||||
Income tax benefit (expense) | — | 12 | (84 | ) | — | (72 | ) | ||||||||||||
(Loss) income before equity income | (41 | ) | (20 | ) | 346 | — | 285 | ||||||||||||
Equity in net income of affiliates | — | — | 8 | — | 8 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 312 | 74 | — | (386 | ) | — | |||||||||||||
Net income (loss) | 271 | 54 | 354 | (386 | ) | 293 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 22 | — | 22 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 271 | $ | 54 | $ | 332 | $ | (386 | ) | $ | 271 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net sales | $ | — | $ | — | $ | 12,281 | $ | — | $ | 12,281 | |||||||||
Operating expenses: | |||||||||||||||||||
Cost of sales | — | — | 10,141 | — | 10,141 | ||||||||||||||
Selling, general and administrative | 120 | — | 579 | — | 699 | ||||||||||||||
Amortization | — | — | 79 | — | 79 | ||||||||||||||
Restructuring | — | — | 95 | — | 95 | ||||||||||||||
Total operating expenses | 120 | — | 10,894 | — | 11,014 | ||||||||||||||
Operating (loss) income | (120 | ) | — | 1,387 | — | 1,267 | |||||||||||||
Interest (expense) income | (41 | ) | (141 | ) | (54 | ) | 130 | (106 | ) | ||||||||||
Other income (expense), net | 45 | 9 | 51 | (130 | ) | (25 | ) | ||||||||||||
(Loss) income before income taxes and equity income | (116 | ) | (132 | ) | 1,384 | — | 1,136 | ||||||||||||
Income tax benefit (expense) | — | 49 | (231 | ) | — | (182 | ) | ||||||||||||
(Loss) income before equity income | (116 | ) | (83 | ) | 1,153 | — | 954 | ||||||||||||
Equity in net income of affiliates | — | — | 26 | — | 26 | ||||||||||||||
Equity in net income (loss) of subsidiaries | 1,030 | 252 | — | (1,282 | ) | — | |||||||||||||
Net income (loss) | 914 | 169 | 1,179 | (1,282 | ) | 980 | |||||||||||||
Net income attributable to noncontrolling interest | — | — | 66 | — | 66 | ||||||||||||||
Net income (loss) attributable to Delphi | $ | 914 | $ | 169 | $ | 1,113 | $ | (1,282 | ) | $ | 914 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 305 | $ | 29 | $ | 371 | $ | (380 | ) | $ | 325 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | (179 | ) | — | (179 | ) | ||||||||||||
Net change in unrecognized loss on derivative instruments, net of tax | — | — | (23 | ) | — | (23 | ) | ||||||||||||
Employee benefit plans adjustment, net of tax | — | — | 12 | — | 12 | ||||||||||||||
Other comprehensive loss | — | — | (190 | ) | — | (190 | ) | ||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (187 | ) | (8 | ) | — | 195 | — | ||||||||||||
Comprehensive income (loss) | 118 | 21 | 181 | (185 | ) | 135 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 17 | — | 17 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 118 | $ | 21 | $ | 164 | $ | (185 | ) | $ | 118 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 1,007 | $ | 111 | $ | 1,204 | $ | (1,250 | ) | $ | 1,072 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | (172 | ) | — | (172 | ) | ||||||||||||
Net change in unrecognized loss on derivative instruments, net of tax | — | — | (16 | ) | — | (16 | ) | ||||||||||||
Employee benefit plans adjustment, net of tax | — | — | 14 | — | 14 | ||||||||||||||
Other comprehensive loss | — | — | (174 | ) | — | (174 | ) | ||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (169 | ) | 1 | — | 168 | — | |||||||||||||
Comprehensive income (loss) | 838 | 112 | 1,030 | (1,082 | ) | 898 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 60 | — | 60 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 838 | $ | 112 | $ | 970 | $ | (1,082 | ) | $ | 838 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 271 | $ | 54 | $ | 354 | $ | (386 | ) | $ | 293 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | 113 | — | 113 | ||||||||||||||
Net change in unrecognized gain on derivative instruments, net of tax | — | — | 10 | — | 10 | ||||||||||||||
Employee benefit plans adjustment, net of tax | — | — | (5 | ) | — | (5 | ) | ||||||||||||
Other comprehensive income | — | — | 118 | — | 118 | ||||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 115 | 12 | — | (127 | ) | — | |||||||||||||
Comprehensive income (loss) | 386 | 66 | 472 | (513 | ) | 411 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 25 | — | 25 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 386 | $ | 66 | $ | 447 | $ | (513 | ) | $ | 386 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net income (loss) | $ | 914 | $ | 169 | $ | 1,179 | $ | (1,282 | ) | $ | 980 | ||||||||
Other comprehensive income (loss): | |||||||||||||||||||
Currency translation adjustments | — | — | (4 | ) | — | (4 | ) | ||||||||||||
Net change in unrecognized loss on derivative instruments, net of tax | — | — | (29 | ) | — | (29 | ) | ||||||||||||
Employee benefit plans adjustment, net of tax | — | — | 11 | — | 11 | ||||||||||||||
Other comprehensive loss | — | — | (22 | ) | — | (22 | ) | ||||||||||||
Equity in other comprehensive (loss) income of subsidiaries | (25 | ) | (27 | ) | — | 52 | — | ||||||||||||
Comprehensive income (loss) | 889 | 142 | 1,157 | (1,230 | ) | 958 | |||||||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 69 | — | 69 | ||||||||||||||
Comprehensive income (loss) attributable to Delphi | $ | 889 | $ | 142 | $ | 1,088 | $ | (1,230 | ) | $ | 889 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 19 | $ | — | $ | 1,007 | $ | — | $ | 1,026 | |||||||||
Restricted cash | — | — | 2 | — | 2 | ||||||||||||||
Accounts receivable, net | — | — | 2,839 | — | 2,839 | ||||||||||||||
Intercompany receivables, current | 197 | 1,816 | 2,422 | (4,435 | ) | — | |||||||||||||
Inventories | — | — | 1,227 | — | 1,227 | ||||||||||||||
Other current assets | — | — | 588 | — | 588 | ||||||||||||||
Total current assets | 216 | 1,816 | 8,085 | (4,435 | ) | 5,682 | |||||||||||||
Long-term assets: | |||||||||||||||||||
Intercompany receivables, long-term | 820 | 932 | 1,291 | (3,043 | ) | — | |||||||||||||
Property, net | — | — | 3,273 | — | 3,273 | ||||||||||||||
Investments in affiliates | — | — | 243 | — | 243 | ||||||||||||||
Investments in subsidiaries | 6,073 | 656 | — | (6,729 | ) | — | |||||||||||||
Intangible assets, net | — | — | 1,083 | — | 1,083 | ||||||||||||||
Other long-term assets | — | 44 | 598 | — | 642 | ||||||||||||||
Total long-term assets | 6,893 | 1,632 | 6,488 | (9,772 | ) | 5,241 | |||||||||||||
Total assets | $ | 7,109 | $ | 3,448 | $ | 14,573 | $ | (14,207 | ) | $ | 10,923 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | — | $ | — | $ | 37 | $ | — | $ | 37 | |||||||||
Accounts payable | — | — | 2,521 | — | 2,521 | ||||||||||||||
Intercompany payables, current | 2,913 | 74 | 1,449 | (4,436 | ) | — | |||||||||||||
Accrued liabilities | 11 | 18 | 1,257 | — | 1,286 | ||||||||||||||
Total current liabilities | 2,924 | 92 | 5,264 | (4,436 | ) | 3,844 | |||||||||||||
Long-term liabilities: | |||||||||||||||||||
Long-term debt | — | 2,398 | 19 | — | 2,417 | ||||||||||||||
Intercompany payables, long-term | 1,291 | 820 | 932 | (3,043 | ) | — | |||||||||||||
Pension benefit obligations | — | — | 911 | — | 911 | ||||||||||||||
Other long-term liabilities | — | — | 372 | — | 372 | ||||||||||||||
Total long-term liabilities | 1,291 | 3,218 | 2,234 | (3,043 | ) | 3,700 | |||||||||||||
Total liabilities | 4,215 | 3,310 | 7,498 | (7,479 | ) | 7,544 | |||||||||||||
Total Delphi shareholders’ equity | 2,894 | 138 | 6,590 | (6,728 | ) | 2,894 | |||||||||||||
Noncontrolling interest | — | — | 485 | — | 485 | ||||||||||||||
Total shareholders’ equity | 2,894 | 138 | 7,075 | (6,728 | ) | 3,379 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 7,109 | $ | 3,448 | $ | 14,573 | $ | (14,207 | ) | $ | 10,923 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 7 | $ | — | $ | 1,382 | $ | — | $ | 1,389 | |||||||||
Restricted cash | — | — | 4 | — | 4 | ||||||||||||||
Accounts receivable, net | — | — | 2,662 | — | 2,662 | ||||||||||||||
Intercompany receivables, current | 452 | 1,123 | 1,418 | (2,993 | ) | — | |||||||||||||
Inventories | — | — | 1,102 | (9 | ) | 1,093 | |||||||||||||
Other current assets | 1 | 10 | 600 | (7 | ) | 604 | |||||||||||||
Total current assets | 460 | 1,133 | 7,168 | (3,009 | ) | 5,752 | |||||||||||||
Long-term assets: | |||||||||||||||||||
Intercompany receivables, long-term | 561 | 888 | 1,283 | (2,732 | ) | — | |||||||||||||
Property, net | — | — | 3,216 | — | 3,216 | ||||||||||||||
Investments in affiliates | — | — | 234 | — | 234 | ||||||||||||||
Investments in subsidiaries | 5,181 | 1,130 | — | (6,311 | ) | — | |||||||||||||
Intangible assets, net | — | — | 1,219 | — | 1,219 | ||||||||||||||
Other long-term assets | — | 43 | 581 | 2 | 626 | ||||||||||||||
Total long-term assets | 5,742 | 2,061 | 6,533 | (9,041 | ) | 5,295 | |||||||||||||
Total assets | $ | 6,202 | $ | 3,194 | $ | 13,701 | $ | (12,050 | ) | $ | 11,047 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Short-term debt | $ | — | $ | 25 | $ | 36 | $ | — | $ | 61 | |||||||||
Accounts payable | — | — | 2,595 | — | 2,595 | ||||||||||||||
Intercompany payables, current | 2,008 | 204 | 771 | (2,983 | ) | — | |||||||||||||
Accrued liabilities | — | 23 | 1,222 | (7 | ) | 1,238 | |||||||||||||
Total current liabilities | 2,008 | 252 | 4,624 | (2,990 | ) | 3,894 | |||||||||||||
Long-term liabilities: | |||||||||||||||||||
Long-term debt | — | 2,339 | 12 | — | 2,351 | ||||||||||||||
Intercompany payables, long-term | 1,283 | 571 | 888 | (2,742 | ) | — | |||||||||||||
Pension benefit obligations | — | — | 959 | — | 959 | ||||||||||||||
Other long-term liabilities | — | — | 409 | — | 409 | ||||||||||||||
Total long-term liabilities | 1,283 | 2,910 | 2,268 | (2,742 | ) | 3,719 | |||||||||||||
Total liabilities | 3,291 | 3,162 | 6,892 | (5,732 | ) | 7,613 | |||||||||||||
Total Delphi shareholders’ equity | 2,911 | 32 | 6,286 | (6,318 | ) | 2,911 | |||||||||||||
Noncontrolling interest | — | — | 523 | — | 523 | ||||||||||||||
Total shareholders’ equity | 2,911 | 32 | 6,809 | (6,318 | ) | 3,434 | |||||||||||||
Total liabilities and shareholders’ equity | $ | 6,202 | $ | 3,194 | $ | 13,701 | $ | (12,050 | ) | $ | 11,047 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net cash provided by operating activities | $ | 37 | $ | — | $ | 1,225 | $ | — | $ | 1,262 | |||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | — | (666 | ) | — | (666 | ) | ||||||||||||
Proceeds from sale of property/investments | — | — | 7 | — | 7 | ||||||||||||||
Decrease in restricted cash | — | — | 2 | — | 2 | ||||||||||||||
Loans to affiliates | — | (745 | ) | (848 | ) | 1,593 | — | ||||||||||||
Repayments of loans from affiliates | — | 55 | 254 | (309 | ) | — | |||||||||||||
Return of investments in subsidiaries | — | 270 | — | (270 | ) | — | |||||||||||||
Net cash (used in) provided by investing activities | — | (420 | ) | (1,251 | ) | 1,014 | (657 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net proceeds from other short-term debt agreements | — | — | 9 | — | 9 | ||||||||||||||
Repayments under long-term debt agreements | — | (164 | ) | — | — | (164 | ) | ||||||||||||
Repayment of senior notes | — | (526 | ) | — | — | (526 | ) | ||||||||||||
Proceeds from issuance of senior notes, net of issuance costs | — | 691 | — | — | 691 | ||||||||||||||
Dividend payments of consolidated affiliates to minority shareholders | — | — | (61 | ) | — | (61 | ) | ||||||||||||
Proceeds from borrowings from affiliates | 1,064 | 529 | — | (1,593 | ) | — | |||||||||||||
Payments on borrowings from affiliates | (199 | ) | (110 | ) | — | 309 | — | ||||||||||||
Capital distributions to affiliates | — | — | (270 | ) | 270 | — | |||||||||||||
Repurchase of ordinary shares | (662 | ) | — | — | — | (662 | ) | ||||||||||||
Distribution of cash dividends | (228 | ) | — | — | — | (228 | ) | ||||||||||||
Taxes withheld and paid on employees' restricted share awards | — | — | (8 | ) | — | (8 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (25 | ) | 420 | (330 | ) | (1,014 | ) | (949 | ) | ||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | (19 | ) | — | (19 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 12 | — | (375 | ) | — | (363 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 7 | — | 1,382 | — | 1,389 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 19 | $ | — | $ | 1,007 | $ | — | $ | 1,026 |
Parent Guarantors | Subsidiary Issuer | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
(in millions) | |||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (100 | ) | $ | — | $ | 1,238 | $ | (68 | ) | $ | 1,070 | |||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital expenditures | — | — | (512 | ) | — | (512 | ) | ||||||||||||
Proceeds from sale of property/investments | — | — | 24 | — | 24 | ||||||||||||||
Cost of business and technology acquisitions, net of cash acquired | — | — | (10 | ) | — | (10 | ) | ||||||||||||
Decrease in restricted cash | — | — | 3 | — | 3 | ||||||||||||||
Loans to affiliates | — | (795 | ) | (579 | ) | 1,374 | — | ||||||||||||
Repayments of loans from affiliates | — | 262 | 468 | (730 | ) | — | |||||||||||||
Return of investments in subsidiaries | — | 357 | — | (357 | ) | — | |||||||||||||
Net cash (used in) provided by investing activities | — | (176 | ) | (606 | ) | 287 | (495 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net repayments under other short-term debt agreements | — | — | (79 | ) | — | (79 | ) | ||||||||||||
Repayments under long-term debt agreements | — | (1,349 | ) | — | — | (1,349 | ) | ||||||||||||
Proceeds from issuance of senior secured term loans, net of issuance costs | — | 560 | — | — | 560 | ||||||||||||||
Proceeds from issuance of senior notes, net of issuance costs | — | 788 | — | — | 788 | ||||||||||||||
Dividend payments of consolidated affiliates to minority shareholders | — | — | (26 | ) | — | (26 | ) | ||||||||||||
Proceeds from borrowings from affiliates | 1,119 | 245 | 10 | (1,374 | ) | — | |||||||||||||
Payments on borrowings from affiliates | (493 | ) | — | (237 | ) | 730 | — | ||||||||||||
Capital distributions to affiliates | — | — | (357 | ) | 357 | — | |||||||||||||
Dividends paid to affiliates | — | (68 | ) | — | 68 | — | |||||||||||||
Repurchase of ordinary shares | (353 | ) | — | — | — | (353 | ) | ||||||||||||
Distribution of cash dividends | (159 | ) | — | — | — | (159 | ) | ||||||||||||
Taxes withheld and paid on employees' restricted share awards | — | — | (14 | ) | — | (14 | ) | ||||||||||||
Net cash provided by (used in) financing activities | 114 | 176 | (703 | ) | (219 | ) | (632 | ) | |||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | — | — | 5 | — | 5 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 14 | — | (66 | ) | — | (52 | ) | ||||||||||||
Cash and cash equivalents at beginning of period | 2 | — | 1,103 | — | 1,105 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 16 | $ | — | $ | 1,037 | $ | — | $ | 1,053 |
|
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2014: | |||||||||||||||||||||||
Net sales | $ | 1,993 | $ | 1,131 | $ | 697 | $ | 390 | $ | (67 | ) | $ | 4,144 | ||||||||||
Depreciation and amortization | $ | 67 | $ | 50 | $ | 20 | $ | 13 | $ | — | $ | 150 | |||||||||||
Adjusted operating income | $ | 254 | $ | 118 | $ | 84 | $ | 12 | $ | — | $ | 468 | |||||||||||
Operating income | $ | 226 | $ | 108 | $ | 69 | $ | 11 | $ | — | $ | 414 | |||||||||||
Equity income (loss) | $ | 6 | $ | — | $ | — | $ | 3 | $ | (7 | ) | $ | 2 | ||||||||||
Net income attributable to noncontrolling interest | $ | 8 | $ | 6 | $ | — | $ | 6 | $ | — | $ | 20 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2013: | |||||||||||||||||||||||
Net sales | $ | 1,956 | $ | 1,048 | $ | 705 | $ | 364 | $ | (56 | ) | $ | 4,017 | ||||||||||
Depreciation and amortization | $ | 61 | $ | 48 | $ | 19 | $ | 10 | $ | — | $ | 138 | |||||||||||
Adjusted operating income | $ | 248 | $ | 94 | $ | 81 | $ | 5 | $ | — | $ | 428 | |||||||||||
Operating income | $ | 237 | $ | 86 | $ | 62 | $ | 2 | $ | — | $ | 387 | |||||||||||
Equity income (loss) | $ | 4 | $ | 1 | $ | — | $ | 4 | $ | (1 | ) | $ | 8 | ||||||||||
Net income attributable to noncontrolling interest | $ | 11 | $ | 6 | $ | — | $ | 5 | $ | — | $ | 22 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2014: | |||||||||||||||||||||||
Net sales | $ | 6,269 | $ | 3,433 | $ | 2,180 | $ | 1,176 | $ | (187 | ) | $ | 12,871 | ||||||||||
Depreciation and amortization | $ | 196 | $ | 149 | $ | 60 | $ | 36 | $ | — | $ | 441 | |||||||||||
Adjusted operating income | $ | 825 | $ | 375 | $ | 256 | $ | 42 | $ | — | $ | 1,498 | |||||||||||
Operating income | $ | 767 | $ | 326 | $ | 230 | $ | 38 | $ | — | $ | 1,361 | |||||||||||
Equity income (loss) | $ | 16 | $ | 2 | $ | — | $ | 12 | $ | (10 | ) | $ | 20 | ||||||||||
Net income attributable to noncontrolling interest | $ | 25 | $ | 24 | $ | — | $ | 16 | $ | — | $ | 65 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other (1) | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2013: | |||||||||||||||||||||||
Net sales | $ | 5,921 | $ | 3,316 | $ | 2,123 | $ | 1,097 | $ | (176 | ) | $ | 12,281 | ||||||||||
Depreciation and amortization | $ | 174 | $ | 140 | $ | 55 | $ | 32 | $ | — | $ | 401 | |||||||||||
Adjusted operating income | $ | 745 | $ | 354 | $ | 242 | $ | 31 | $ | — | $ | 1,372 | |||||||||||
Operating income | $ | 709 | $ | 334 | $ | 198 | $ | 26 | $ | — | $ | 1,267 | |||||||||||
Equity income (loss) | $ | 11 | $ | 4 | $ | — | $ | 12 | $ | (1 | ) | $ | 26 | ||||||||||
Net income attributable to noncontrolling interest | $ | 31 | $ | 22 | $ | — | $ | 13 | $ | — | $ | 66 |
(1) | Eliminations and Other includes the elimination of inter-segment transactions. |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2014: | |||||||||||||||||||||||
Adjusted operating income | $ | 254 | $ | 118 | $ | 84 | $ | 12 | $ | — | $ | 468 | |||||||||||
Restructuring | (24 | ) | (9 | ) | (13 | ) | (1 | ) | — | (47 | ) | ||||||||||||
Other acquisition-related costs | (3 | ) | — | — | — | — | (3 | ) | |||||||||||||||
Asset impairments | (1 | ) | (1 | ) | (2 | ) | — | — | (4 | ) | |||||||||||||
Operating income | $ | 226 | $ | 108 | $ | 69 | $ | 11 | $ | — | 414 | ||||||||||||
Interest expense | (33 | ) | |||||||||||||||||||||
Other income, net | 5 | ||||||||||||||||||||||
Income before income taxes and equity income | 386 | ||||||||||||||||||||||
Income tax expense | (63 | ) | |||||||||||||||||||||
Equity income, net of tax | 2 | ||||||||||||||||||||||
Net income | 325 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 20 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 305 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Three Months Ended September 30, 2013: | |||||||||||||||||||||||
Adjusted operating income | $ | 248 | $ | 94 | $ | 81 | $ | 5 | $ | — | $ | 428 | |||||||||||
Restructuring | (7 | ) | (8 | ) | (19 | ) | (3 | ) | — | (37 | ) | ||||||||||||
Other acquisition-related costs | (4 | ) | — | — | — | — | (4 | ) | |||||||||||||||
Operating income | $ | 237 | $ | 86 | $ | 62 | $ | 2 | $ | — | 387 | ||||||||||||
Interest expense | (34 | ) | |||||||||||||||||||||
Other income, net | 4 | ||||||||||||||||||||||
Income before income taxes and equity income | 357 | ||||||||||||||||||||||
Income tax expense | (72 | ) | |||||||||||||||||||||
Equity income, net of tax | 8 | ||||||||||||||||||||||
Net income | 293 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 22 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 271 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2014: | |||||||||||||||||||||||
Adjusted operating income | $ | 825 | $ | 375 | $ | 256 | $ | 42 | $ | — | $ | 1,498 | |||||||||||
Restructuring | (50 | ) | (48 | ) | (22 | ) | (4 | ) | — | (124 | ) | ||||||||||||
Other acquisition-related costs | (6 | ) | — | — | — | — | (6 | ) | |||||||||||||||
Asset impairments | (2 | ) | (1 | ) | (4 | ) | — | — | (7 | ) | |||||||||||||
Operating income | $ | 767 | $ | 326 | $ | 230 | $ | 38 | $ | — | 1,361 | ||||||||||||
Interest expense | (101 | ) | |||||||||||||||||||||
Other income, net | (8 | ) | |||||||||||||||||||||
Income before income taxes and equity income | 1,252 | ||||||||||||||||||||||
Income tax expense | (200 | ) | |||||||||||||||||||||
Equity income, net of tax | 20 | ||||||||||||||||||||||
Net income | 1,072 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 65 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 1,007 |
Electrical/ Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Eliminations and Other | Total | ||||||||||||||||||
(in millions) | |||||||||||||||||||||||
For the Nine Months Ended September 30, 2013: | |||||||||||||||||||||||
Adjusted operating income | $ | 745 | $ | 354 | $ | 242 | $ | 31 | $ | — | $ | 1,372 | |||||||||||
Restructuring | (26 | ) | (20 | ) | (44 | ) | (5 | ) | — | (95 | ) | ||||||||||||
Other acquisition-related costs | (10 | ) | — | — | — | — | (10 | ) | |||||||||||||||
Operating income | $ | 709 | $ | 334 | $ | 198 | $ | 26 | $ | — | 1,267 | ||||||||||||
Interest expense | (106 | ) | |||||||||||||||||||||
Other income, net | (25 | ) | |||||||||||||||||||||
Income before income taxes and equity income | 1,136 | ||||||||||||||||||||||
Income tax expense | (182 | ) | |||||||||||||||||||||
Equity income, net of tax | 26 | ||||||||||||||||||||||
Net income | 980 | ||||||||||||||||||||||
Net income attributable to noncontrolling interest | 66 | ||||||||||||||||||||||
Net income attributable to Delphi | $ | 914 |
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