DELPHI 2013 Annual Report Download - page 75

53
Net cash provided by operating activities totaled $1,377 million for the year ended December 31, 2011, which consisted
of net earnings of $1,223 million increased by $475 million for non-cash charges for depreciation and amortization, partially
offset by $370 million related to changes in operating assets and liabilities, net of restructuring and pension contributions.
Investing Activities. Net cash used in investing activities totaled $655 million and $1,631 million for the years ended
December 31, 2013 and 2012, respectively. The decrease is primarily due to a decrease of $970 million in the cost of
acquisitions, net of cash acquired, primarily related to the 2012 MVL acquisition.
Net cash used in investing activities totaled $10 million for the year ended December 31, 2011 which resulted primarily
from capital expenditures of $630 million, partially offset by the maturity of $550 million of time deposits .
Financing Activities. Net cash used in financing activities totaled $822 million and $105 million for the years ended
December 31, 2013 and 2012, respectively. The increase in net cash used in financing activities during the year ended
December 31, 2013 is primarily due to the use of an incremental $54 million of cash on hand in 2013 as compared to 2012 to
repurchase ordinary shares, the $211 million payment of cash dividends on Delphi's ordinary shares, and the increased
borrowings in 2012 of $363 million related to the acquisition of MVL. Additionally, the net proceeds of approximately $790
million received from the issuance of the 5.00% senior unsecured notes due in 2023 were used in conjunction with the
amendment of the 2012 Credit Agreement to pay off in its entirety the $773 million of the Tranche B Term Loan.
Net cash used in financing activities totaled $3,194 million for the year ended December 31, 2011, which resulted from
the redemption of membership interests for $4,747 million offset by the proceeds received, net of repayments, from the
issuance of debt to partially fund the redemption transaction and the repayment of the Senior Notes and senior unsecured five-
year notes, of $1,689 million.
Off-Balance Sheet Arrangements and Other Matters
We do not engage in any off-balance sheet financial arrangements that have or are reasonably likely to have a material
current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.
Pension Benefits
Certain of our non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based on
negotiated amounts for each year of service. Our primary non-U.S. plans are located in France, Germany, Mexico, Portugal and
the United Kingdom. The United Kingdom and certain Mexican plans are funded. In addition, we have defined benefit plans in
South Korea and Turkey for which amounts are payable to employees immediately upon separation. The obligations for these
plans are recorded based on the vested obligation. We anticipate making pension contributions of approximately $78 million for
non-U.S. plans in 2014.
Delphi sponsors a Supplemental Executive Retirement Program (“SERP”) for those employees who were U.S. executives
prior to September 30, 2008 and were still U.S. executives on October 7, 2009, the effective date of the program. This program
is unfunded. Executives receive benefits over 5 years after an involuntary or voluntary separation from Delphi. The SERP is
closed to new members and was frozen effective September 30, 2008. There are no required contributions for the SERP in
2014, although we anticipate making benefit payments of approximately $12 million for the SERP in 2014.
Refer to Note 12. Pension Benefits to the audited consolidated financial statements included herein for further
information on (1) historical benefit costs of the pension plans, (2) the principal assumptions used to determine the pension
benefit expense and the actuarial value of the projected benefit obligation for the U.S. and non-U.S. pension plans, (3) a
sensitivity analysis of potential changes to pension obligations and expense that would result from changes in key assumptions
and (4) funding obligations.
Environmental Matters
We are subject to the requirements of U.S. federal, state and local, and non-U.S., environmental and safety and health
laws and regulations. These include laws regulating air emissions, water discharge, hazardous materials and waste
management. We have an environmental management structure designed to facilitate and support our compliance with these
requirements globally. Although it is our intent to comply with all such requirements and regulations, we cannot provide
assurance that we are at all times in compliance. Environmental requirements are complex, change frequently and have tended
to become more stringent over time. Accordingly, we cannot assure that environmental requirements will not change or become
more stringent over time or that our eventual environmental remediation costs and liabilities will not be material.
Certain environmental laws assess liability on current or previous owners or operators of real property for the cost of
removal or remediation of hazardous substances. In addition to clean-up actions brought by U.S. federal, state, local and non-
U.S. agencies, plaintiffs could raise personal injury or other private claims due to the presence of hazardous substances on or
from a property. We are currently in the process of investigating and cleaning up some of our current or former sites. In