DELPHI 2013 Annual Report Download - page 59
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37
Restructuring
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(dollars in millions)
Restructuring............................................................................................................... $ 145 $ 171 $ 26
Percentage of net sales................................................................................................ 0.9% 1.1%
The decrease in restructuring expense in 2013 as compared to 2012 is due to the initiation of various restructuring
actions, primarily in Europe, in the fourth quarter of 2012 which are expected to total approximately $300 million. Additional
restructuring programs totaling approximately $75 million were initiated in the first quarter of 2013. These restructuring actions
were initiated in response to lower OEM production volumes in Europe and continued economic uncertainties, and include
workforce reductions, as well as plant closures, and are expected to be substantially completed during the first half of 2014.
Refer to Note 10. Restructuring to the audited consolidated financial statements included herein for additional
information.
Interest Expense
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(in millions)
Interest expense .......................................................................................................... $ 143 $ 136 $ (7)
The increase in interest expense for the year ended December 31, 2013 as compared to the year ended December 31,
2012 reflects the issuance of $800 million of 10-year, 5.0% unsecured senior notes in the first quarter of 2013, partially offset
by a reduction in interest expense from the repayment of the senior secured Tranche B Term Loan with the proceeds.
Refer to Note 11. Debt, to the audited consolidated financial statements included herein for additional information.
Other Income, net
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(in millions)
Other (expense) income, net....................................................................................... $ (18) $ 5 $ (23)
The decrease in other income, net is a result of Delphi amending its Credit Agreement and repaying the entire balance of
the Tranche B Term Loan from the Original Credit Agreement, resulting in a loss on extinguishment of debt of $39 million,
partially offset by the absence of transaction costs of $13 million incurred in 2012 related to the acquisition of MVL.
Refer to Note 19. Other income, net and Note 11. Debt to the audited consolidated financial statements included herein
for additional information.
Income Taxes
Year Ended December 31,
2013 2012 Favorable/
(unfavorable)
(in millions)
Income tax expense..................................................................................................... $ 256 $ 212 $ (44)