DELPHI 2011 Annual Report Download - page 155

Table of Contents
• 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.
The accounting policies of the segments are the same as those described in Note 2. Significant Accounting Policies, except that the disaggregated
financial results for the segments have been prepared using a management approach, which is consistent with the basis and manner in which management
internally disaggregates financial information for the purposes of assisting internal operating decisions. Generally, Delphi evaluates performance based on
stand-alone segment net income before depreciation and amortization (including long-lived asset and goodwill impairment), interest expense, other income
(expense), net, income tax expense, equity income, net of tax, transformation and rationalization charges related to plant consolidations, plant wind-downs
and discontinued operations ("Adjusted EBITDA") and accounts for inter-segment sales and transfers as if the sales or transfers were to third parties, at
current market prices. Through December 31, 2010, Delphi's management believed that Adjusted EBITDA was a meaningful measure of performance and it
was used by management to analyze Company and stand-alone segment operating performance. Management also used Adjusted EBITDA for planning and
forecasting purposes. Effective January 1, 2011, Delphi's management began utilizing net income before depreciation and amortization (including long-lived
asset and goodwill impairment), interest expense, other income (expense), net, income tax expense and equity income, net of tax ("EBITDA") as a key
performance measure because its restructuring was substantially completed in 2010. Segment EBITDA and Adjusted EBITDA should not be considered
substitutes for results prepared in accordance with U.S. GAAP and should not be considered alternatives to net income (loss) attributable to Successor/
Predecessor, which is the most directly comparable financial measure to EBITDA and Adjusted EBITDA that is in accordance with U.S. GAAP. Segment
EBITDA and Adjusted EBITDA, as determined and measured by Delphi, should also not be compared to similarly titled measures reported by other
companies.
Included below are sales and operating data for Delphi's segments for the years ended December 31, 2011 and 2010, and periods from August 19 to
December 31, 2009 and January 1 to October 6, 2009, as well as balance sheet data as of December 31, 2011 and 2010.
Successor
Electrical/
Electronic
Architecture
Powertrain
Systems
Electronics
and Safety
Thermal
Systems
Eliminations
and
Other(1) Total
2011: (in millions)
Net sales $ 6,642 $ 4,970 $ 2,931 $ 1,755 $ (257) $ 16,041
EBITDA $ 868 $ 710 $ 369 $ 172 $ — $ 2,119
Depreciation & Amortization $ 131 $ 195 $ 105 $ 44 $ — $ 475
Operating income (2) $ 737 $ 515 $ 264 $ 128 $ — $ 1,644
Equity income (loss) $ 20 $ 3 $ 1 $ 6 $ (8) $ 22
Net income attributable to noncontrolling interest $ 33 $ 33 $ — $ 12 $ — $ 78
Successor
Electrical/
Electronic
Architecture
Powertrain
Systems
Electronics
and Safety
Thermal
Systems
Eliminations
and
Other(1) Total
2010: (in millions)
Net sales $ 5,620 $ 4,086 $ 2,721 $ 1,603 $ (213) $ 13,817
EBITDA $ 650 $ 361 $ 247 $ 109 $ (6) $ 1,361
Adjusted EBITDA $ 758 $ 423 $ 293 $ 165 $ (6) $ 1,633
Depreciation & Amortization $ 108 $ 170 $ 100 $ 42 $ 1 $ 421
Operating income (loss) (3) $ 542 $ 191 $ 147 $ 67 $ (7) $ 940
Equity income (loss) $ 7 $ 2 $ (3) $ 8 $ 3 $ 17
Net income attributable to noncontrolling interest $ 31 $ 28 $ 1 $ 12 $ — $ 72
153