DELPHI 2015 Annual Report Download - page 130

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Table of Contents
108
Reclassifications from accumulated other comprehensive income (loss) to income were as follows:
Reclassification Out of Accumulated Other Comprehensive Income (Loss)
Details About Accumulated Other
Comprehensive Income Components
Year Ended December 31,
Affected Line Item in the Statement of Operations2015 2014 2013
(in millions)
Gains (losses) on derivatives:
Commodity derivatives..................... $ (44) $ (17) $ (22) Cost of sales
Foreign currency derivatives ............ (74) 4 23 Cost of sales
Foreign currency derivatives ............ — — 2 Other income
(118) (13) 3 Income before income taxes
28 1 (5) Income tax expense
(90) (12) (2) Net income
— — — Net income attributable to noncontrolling interest
$ (90) $ (12) $ (2) Net income attributable to Delphi
Pension and postretirement plans:
Actuarial loss .................................... $ (18) $ (11) $ (9) (1)
Settlement loss.................................. (11) — — (1)
Curtailment gain ............................... 3 — — (1)
(26) (11) (9) Income before income taxes
3 2 2 Income tax expense
(23) (9) (7) Net income
— — — Net income attributable to noncontrolling interest
$ (23) $ (9) $ (7) Net income attributable to Delphi
Total reclassifications for the year.... $ (113) $ (21) $ (9)
(1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12. Pension Benefits for
additional details).
17. DERIVATIVES AND HEDGING ACTIVITIES
Delphi is exposed to market risk, such as fluctuations in foreign currency exchange rates, commodity prices and changes
in interest rates, which may result in cash flow risks. To manage the volatility relating to these exposures, Delphi aggregates the
exposures on a consolidated basis to take advantage of natural offsets. For exposures that are not offset within its operations,
Delphi enters into various derivative transactions pursuant to its risk management policies, which prohibit holding or issuing
derivative financial instruments for speculative purposes, and designation of derivative instruments is performed on a
transaction basis to support hedge accounting. The changes in fair value of these hedging instruments are offset in part or in
whole by corresponding changes in the fair value or cash flows of the underlying exposures being hedged. Delphi assesses the
initial and ongoing effectiveness of its hedging relationships in accordance with its documented policy. As of December 31,
2015, Delphi has entered into derivative instruments to hedge cash flows extending out to March 2018.
Additionally, the Company has designated the €700 million 2015 Euro-denominated Senior Notes as a net investment
hedge of the foreign currency exposure of its investments in certain Euro-denominated subsidiaries. Due to the high degree of
effectiveness between the hedging instrument and the exposure being hedged, fluctuations in the value of the Euro-
denominated debt due to exchange rate changes are recognized in cumulative translation adjustment within Other
comprehensive income to offset changes in the value of the net investment of these Euro-denominated operations.