DELPHI 2013 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2013 DELPHI annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

48
Share Repurchases
In January 2012, the Board of Directors authorized a share repurchase program of up to $300 million of ordinary shares,
which was fully satisfied in September 2012. Subsequently, in September 2012, the Board of Directors authorized a new share
repurchase program of up to $750 million of ordinary shares. This program will terminate when the Company attains $750
million of ordinary share repurchases and provides for share repurchases in the open market or in privately negotiated
transactions, depending on share price, market conditions and other factors, as determined by the Company. A summary of the
ordinary shares repurchased for the years ended December 31, 2013 and 2012 is as follows:
Year Ended December 31,
2013 2012
Total Number of Shares Repurchased.................................................................................. 9,106,434 13,421,742
Average Price Paid per Share................................................................................................ $ 50.14 $ 30.02
Total (in millions).......................................................................................................... $ 457 $ 403
Approximately $190 million remains available under the September 2012 share repurchase program. All repurchased
shares were retired.
New Share Repurchase Program
In January 2014, the Board of Directors authorized a new share repurchase program of up to $1 billion of ordinary shares.
This share repurchase program provides for share purchases in the open market or in privately negotiated transactions,
depending on share price, market conditions and other factors, as determined by the Company. This program will commence
following the completion of the Company's September 2012 share repurchase program described above.
Dividends to Holders of Ordinary Shares
On February 26, 2013, the Board of Directors approved the initiation of dividend payments on its ordinary shares and
declared a regular quarterly cash dividend. During the year ended December 31, 2013, the Company declared and paid cash
dividends per common share as follows:
2013
Dividend Amount
Three months ended: Per Share (in millions)
December 31 ........................................................................................................................ $ 0.17 $ 52
September 30........................................................................................................................ 0.17 53
June 30.................................................................................................................................. 0.17 53
March 31 .............................................................................................................................. 0.17 53
Total................................................................................................................................. $ 0.68 $ 211
In addition, in January 2014, the Board of Directors increased the annual dividend rate to $1.00 per ordinary share, and
declared a regular quarterly cash dividend of $0.25 per ordinary share, payable on February 27, 2014 to shareholders of record
at the close of business on February 18, 2014.
Dividends from Equity Investees
During the year ended December 31, 2013, Delphi received dividends of $30 million from two of its equity method
investments. The dividends were recognized as a reduction to the investment and represented a return on investment included
in cash flows from operating activities. During the year ended December 31, 2012, Delphi received a dividend of $62 million
from one of its equity method investments. The dividend was recognized as a reduction to the investment with $25 million
representing a return on investment included in cash flows from operating activities and $37 million representing a return of
capital investment and included in cash flows from investing activities.
Acquisition of Motorized Vehicles Division of FCI
On October 26, 2012, Delphi completed the acquisition of MVL for €765 million, or approximately $1 billion based on
exchange rates as of the date of the acquisition. MVL is a leading global manufacturer of automotive connection systems with a
focus on high-value, leading technology applications.
Upon completing the acquisition, Delphi incurred related transaction expenses totaling approximately $13 million. The
cash payments required to close the transaction were funded using existing cash on hand, including $363 million drawn in
October 2012 under the Credit Agreement.