DELPHI 2011 Annual Report Download - page 24

Table of Contents
include the discount rate and the expected long-term rate of return on pension assets. If the actual trends in these factors are less favorable than our
assumptions, this could have an adverse effect on our results of operations and financial condition.
We may suffer future asset impairment and other restructuring charges.
We have taken restructuring actions in recent years to realign and resize our production capacity and cost structure to meet current and projected
operational and market requirements. If we are required to take further restructuring actions, the charges related to these actions may have a material adverse
effect on our results of operations and financial condition. We cannot assure that any future restructurings will be completed as planned or achieve the desired
results. Additionally, from time to time in the past, we have recorded asset impairment losses relating to specific plants and operations. Generally, we record
asset impairment losses when we determine that our estimates of the future undiscounted cash flows from an operation will not be sufficient to recover the
carrying value of that facility's building, fixed assets and production tooling. We cannot assure that we will not incur such charges in the future.
Employee strikes and labor-related disruptions involving us or one or more of our customers or suppliers may adversely affect our operations.
Our business is labor-intensive and utilizes a number of work councils and other represented employees. A strike or other form of significant work
disruption by our employees would likely have an adverse effect on our ability to operate our business. A labor dispute involving us or one or more of our
customers or suppliers or that could otherwise affect our operations could reduce our sales and harm our profitability. A labor dispute involving another
supplier to our customers that results in a slowdown or a closure of our customers' assembly plants where our products are included in the assembled parts or
vehicles could also adversely affect our business and harm our profitability. In addition, our inability or the inability of any of our customers, our suppliers or
our customers' suppliers to negotiate an extension of a collective bargaining agreement upon its expiration could reduce our sales and harm our profitability.
Significant increases in labor costs as a result of the renegotiation of collective bargaining agreements could also adversely affect our business and harm our
profitability.
We may lose or fail to attract and retain key salaried employees and management personnel.
An important aspect of our competitiveness is our ability to attract and retain key salaried employees and management personnel. Our ability to do so is
influenced by a variety of factors, including the compensation we award and the competitive market position of our overall compensation package. We may
not be as successful as competitors at recruiting, assimilating and retaining highly skilled personnel. The loss of the services of any member of senior
management or a key salaried employee could have an adverse effect on our business.
We are exposed to foreign currency fluctuations as a result of our substantial global operations, which may affect our financial results.
We have currency exposures related to buying, selling and financing in currencies other than the local currencies of the countries in which we operate.
Approximately 69% of our net revenue for the year ended December 31, 2011 was invoiced in currencies other than the U.S. dollar, and we expect net
revenue from non-U.S. markets to continue to represent a significant portion of our net revenue. Price increases caused by currency exchange rate fluctuations
may make our products less competitive or have an adverse effect on our margins. Currency exchange rate fluctuations may also disrupt the business of our
suppliers by making their purchases of raw materials more expensive and more difficult to finance.
Historically, we have reduced our exposure by aligning our costs in the same currency as our revenues or, if that is impracticable, through financial
instruments that provide offsets or limits to our exposures, which are opposite to the underlying transactions. However, any measures that we may implement
to reduce the effect of volatile currencies and other risks of our global operations may not be effective.
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