DELPHI 2013 Annual Report Download - page 123

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101
Reclassifications from accumulated other comprehensive income to income for the year ended December 31, 2013 were
as follows:
Reclassification out of Accumulated Other Comprehensive Income
Details about Accumulated Other Comprehensive
Income Components
Year Ended
December 31,
2013 Affected Line Item in the Statement of Operations
(in millions)
Gains (losses) on derivatives:
Commodity derivatives .................................... $(22) Cost of sales
Foreign currency derivatives............................ 23 Cost of sales
Foreign currency derivatives............................ 2 Other income
3 Total income before income taxes
(5) Income tax expense
(2) Net loss
— Net income attributable to noncontrolling interest
$(2) Net loss attributable to Delphi
Pension and postretirement plans:
Actuarial gains/(losses) .................................... $(9) (1)
(9) Total loss before income taxes
2 Income tax benefit
(7) Net loss
— Net income attributable to noncontrolling interest
$(7) Net loss attributable to Delphi
Total reclassifications for the year.................... $(9)
(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12. Pension Benefits for
additional details).
17. DERIVATIVES AND HEDGING ACTIVITIES
Delphi is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices and changes
in interest rates, which may result in cash flow risks. To manage the volatility relating to these exposures, Delphi aggregates the
exposures on a consolidated basis to take advantage of natural offsets. For exposures that are not offset within its operations,
Delphi enters into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing
derivative financial instruments for speculative purposes, and designation of derivative instruments is performed on a
transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in
whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. Delphi assesses the
initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy. As of December 31,
2013, Delphi has entered into derivative instruments to hedge cash flows extending out to January 2016.