DELPHI 2011 Annual Report Download - page 128

Table of Contents
Romania Value Added Tax ("VAT") Assessment
During the first quarter of 2010, as a result of a tax audit for years 2006–2008, we received a tax assessment from the Romanian tax authorities in the
amount of approximately $42 million based on the taxing authority's assessment that we underpaid its VAT (mostly on export sales) by approximately $24
million and owe accrued interest and penalties of $18 million. We filed an appeal contesting the assessment and in October 2010, the Romanian tax
authorities substantially reduced the amount of the assessment and decided to re-audit us. In December 2011, the Company received $13 million from the tax
authorities related to the outstanding VAT credit. As of December 31, 2011, we maintain a reserve for this contingency that is substantially less than the
amount of the remaining balance under assessment. While we believe our reserve is adequate, the final amounts required to resolve this initial assessment
could differ materially from our recorded estimate.
Operating leases
Rental expense totaled $95 million, $98 million, $34 million and $76 million for the years ended December 31, 2011 and 2010, and the periods from
August 19 to December 31, 2009 and January 1 to October 6, 2009, respectively. As of December 31, 2011, Delphi had minimum lease commitments under
non-cancellable operating leases totaling $325 million, which become due as follows:
Year
Minimum Future
Operating Lease Commitments
(in millions)
2012 $ 82
2013 67
2014 57
2015 48
2016 38
Thereafter 33
Total $ 325
15. INCOME TAXES
Income (loss) from continuing operations before income taxes and equity income (loss) for U.S. and non-U.S. operations are as follows:
Successor Predecessor
Year ended
December 31,
2011
Year ended
December 31,
2010
Period from
August 19 to
December 31,
2009
Period from
January 1 to
October 6,
2009
(in millions) (in millions)
U.S. income (loss) $ 149 $ 313 $ (86) $ 9,460
Non-U.S. income (loss) 1,357 631 51 (344)
Income (loss) from continuing operations before income taxes and equity income (loss) $ 1,506 $ 944 $ (35) $ 9,116
The Predecessor's U.S. income of $9,460 million for the period from January 1 to October 6, 2009 includes a reorganization gain of $10,210 million
primarily relating to the extinguishment of liabilities subject to compromise.
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