DELPHI 2013 Annual Report Download - page 46

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24
Of our 126 major manufacturing sites and 15 major technical centers, which include facilities owned or leased by our
consolidated subsidiaries, 81 are primarily owned and 60 are primarily leased.
Delphi operates regional offices in Bascharage, Luxembourg; São Paulo, Brazil; Shanghai, China; and Troy, Michigan.
We frequently review our real estate portfolio and develop footprint strategies to support our customers’ global plans,
while at the same time supporting our technical needs and controlling operating expenses. We believe our evolving portfolio
will meet current and anticipated future needs.
ITEM 3. LEGAL PROCEEDINGS
We are from time to time subject to various actions, claims, suits, government investigations, and other proceedings
incidental to our business, including those arising out of alleged defects, breach of contracts, competition and antitrust matters,
product warranties, intellectual property matters, personal injury claims and employment-related matters. It is our opinion that
the outcome of such matters will not have a material adverse impact on our consolidated financial position, results of
operations, or cash flows. With respect to warranty matters, although we cannot ensure that the future costs of warranty claims
by customers will not be material, we believe our established reserves are adequate to cover potential warranty settlements.
However, the final amounts required to resolve these matters could differ materially from our recorded estimates.
Brazil Matters
Delphi conducts significant business operations in Brazil that are subject to the Brazilian federal labor, social security,
environmental, tax and customs laws, as well as a variety of state and local laws. While Delphi believes it complies with such
laws, they are complex, subject to varying interpretations, and the Company is often engaged in litigation with government
agencies regarding the application of these laws to particular circumstances. As of December 31, 2013, the majority of claims
asserted against Delphi in Brazil relate to such litigation. The remaining claims in Brazil relate to commercial and labor
litigation with private parties. As of December 31, 2013, claims totaling approximately $200 million (using December 31, 2013
foreign currency rates) have been asserted against Delphi in Brazil. As of December 31, 2013, the Company maintains accruals
for these asserted claims of $31 million (using December 31, 2013 foreign currency rates). The amounts accrued represent
claims that are deemed probable of loss and are reasonably estimable based on the Company’s analyses and assessment of the
asserted claims and prior experience with similar matters. While the Company believes its accruals are adequate, the final
amounts required to resolve these matters could differ materially from the Company’s recorded estimates and Delphi’s results
of operations could be materially affected.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.