DELPHI 2015 Annual Report Download - page 122

Table of Contents
100
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, 2015, 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, 2015, claims totaling approximately $135 million (using December 31, 2015
foreign currency rates) have been asserted against Delphi in Brazil. As of December 31, 2015, the Company maintains accruals
for these asserted claims of $23 million (using December 31, 2015 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.
Environmental Matters
Delphi is subject to the requirements of U.S. federal, state, local and non-U.S. environmental and safety and health laws
and regulations. As of December 31, 2015 and December 31, 2014, the undiscounted reserve for environmental investigation
and remediation was approximately $4 million (of which $1 million was recorded in accrued liabilities and $3 million was
recorded in other long-term liabilities) and $5 million (of which $1 million was recorded in accrued liabilities and $4 million
was recorded in other long-term liabilities). Additionally, approximately $6 million and $16 million as of December 31, 2015
and December 31, 2014, respectively, of undiscounted reserve for environmental investigation and remediation attributable to
discontinued operations was included within liabilities held for sale. Delphi cannot ensure that environmental requirements will
not change or become more stringent over time or that its eventual environmental remediation costs and liabilities will not
exceed the amount of its current reserves. In the event that such liabilities were to significantly exceed the amounts recorded,
Delphi’s results of operations could be materially affected. At December 31, 2015, the difference between the recorded
liabilities and the reasonably possible range of loss was not material.
Operating Leases
Rental expense totaled $95 million, $105 million and $99 million for the years ended December 31, 2015, 2014 and
2013, respectively. As of December 31, 2015, Delphi had minimum lease commitments under non-cancellable operating leases
totaling $328 million, which become due as follows:
Minimum Future
Operating Lease Commitments
(in millions)
2016.................................................................................................................................................... $ 90
2017.................................................................................................................................................... 70
2018.................................................................................................................................................... 48
2019.................................................................................................................................................... 31
2020.................................................................................................................................................... 25
Thereafter ........................................................................................................................................... 64
Total............................................................................................................................................... $ 328
14. INCOME TAXES
Income from continuing operations before income taxes and equity income for U.S. and non-U.S. operations are as
follows:
Year Ended December 31,
2015 2014 2013
(in millions)
U.S. income........................................................................................................... $ 356 $ 232 $ 246
Non-U.S. income................................................................................................... 1,152 1,383 1,220
Income from continuing operations before income taxes and equity income .... $ 1,508 $ 1,615 $ 1,466