DELPHI 2011 Annual Report Download - page 57

Table of Contents
Successor
During the year ended December 31, 2010, we continued our restructuring actions to align our manufacturing operations with current OEM production
levels as well as continuing to relocate our manufacturing and engineering processes to lower cost locations. As such, we recognized employee termination
and other related exit costs in conjunction with workforce reduction programs primarily in Europe of $174 million and $78 million during the year ended
December 31, 2010 and the Successor Period of 2009, respectively. Similar actions to appropriately align North American manufacturing operations were also
undertaken, resulting in $28 million and $34 million of charges during the year ended December 31, 2010 and the Successor Period of 2009, respectively.
Predecessor
As part of the Predecessor's continuing restructuring activities in 2009 and in response to the depressed OEM production volumes of 2009, the
Predecessor undertook significant restructuring actions. As a result, during the Predecessor Period of 2009, restructuring included approximately $69 million
to realign manufacturing operations within North America to lower cost markets and reduce the workforce in line with the realigned manufacturing
operations. Additionally, approximately $99 million of employee termination benefits and other exit costs were incurred in Europe, South America and Asia.
The Predecessor also incurred $58 million for employee termination benefits resulting from the separation of certain salaried employees in North America.
Refer to Note 11. Restructuring to the audited consolidated financial statements included herein for additional information.
Interest Expense
Successor Predecessor
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)
Interest expense $ 30 $ 8 $ —
Percentage of net sales 0.2% 0.2% — %
Successor
Interest expense for the year ended December 31, 2010 and the Successor Period of 2009 reflects the financing costs relating to our outstanding
indebtedness subsequent to the Acquisition, including the $41 million in the Old Notes issued as part of the Acquisition as well as receivable factoring
programs.
Predecessor
Interest expense for the Predecessor Period of 2009 includes the amortization of financing costs related to outstanding debtor-in-possession financing
during the period and interest on debtor-in-possession financing, offset by the reversal of $415 million of accrued postpetition interest on prepetition debt and
allowed unsecured claims, as more fully described in Note 2. Significant Accounting Policies to the audited consolidated financial statements included herein.
Other Income, Net
Successor Predecessor
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)
Other income (expense), net $ 34 $ (17) $ 24
56