DELPHI 2015 Annual Report Download - page 104

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ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-
of-credit arrangement. The guidance is effective for fiscal years beginning after December 15, 2015, and is to be applied
retrospectively. As permitted, the Company elected to early adopt this guidance effective December 31, 2015, and has
reclassified $28 million and $25 million as of December 31, 2015 and December 31, 2014, respectively, of deferred debt
issuance costs associated with term debt from other long-term assets to long-term debt in the consolidated balance sheet.
Deferred issuance costs associated with the Company’s Revolving Credit Facility of $12 million and $17 million as of
December 31, 2015 and December 31, 2014, respectively, remain classified within other long-term assets. Refer to Note 11.
Debt for further information.
In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This
guidance requires an entity to measure inventory at the lower of cost and net realizable value, rather than at the lower of cost or
market. The guidance is effective for interim and annual periods beginning after December 15, 2016, and is to be applied
prospectively. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on
Delphi's financial statements.
In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for
Measurement-Period Adjustments. This guidance requires that an acquirer recognize adjustments to provisional amounts that
are identified during the measurement period in the reporting period in which the adjustment amounts are determined,
including that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation,
amortization, or other income effects, if any. The guidance is effective for interim and annual periods beginning after December
15, 2015, and is to be applied prospectively to adjustments to provisional amounts that occur after the effective date, with
earlier application permitted for financial statements that have not yet been made available for issuance. The adoption of this
guidance is not expected to have a significant impact on Delphi's financial statements, other than the application to adjustments
to provisional amounts resulting from business combinations for which the accounting is provisional as of the end of a
reporting period.
In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred
Taxes. This guidance requires entities to classify deferred tax liabilities and assets as noncurrent in a classified statement of
financial position. The guidance is effective for interim and annual periods beginning after December 15, 2016, and may be
applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. As permitted, the
Company elected to early adopt this guidance effective December 31, 2015, and has applied the guidance prospectively. As of
December 31, 2014, Delphi had $171 million of deferred tax assets and $8 million of deferred tax liabilities which remain
classified as current in the consolidated balance sheet. The adoption of this guidance did not have a significant impact on
Delphi's financial statements, other than the prospective classification of deferred tax liabilities and assets as long-term in
accordance with the new presentation requirements.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and
Measurement of Financial Assets and Financial Liabilities. This guidance makes targeted improvements to existing U.S.
GAAP for financial instruments, including requiring equity investments (except those accounted for under the equity method of
accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value
recognized in net income; requiring entities to use the exit price notion when measuring the fair value of financial instruments
for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and
form of financial asset and requiring entities to present separately in other comprehensive income the portion of the total
change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own
credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option. The
new guidance is effective for public companies for fiscal years beginning after December 15, 2017. Early adoption of the own
credit provision is permitted. The Company is currently evaluating the impact that the adoption of this guidance will have on its
consolidated financial statements.