DELPHI 2015 Annual Report Download - page 161

Table of Contents
139
The Company determined that the assets and liabilities of the Thermal Systems segment met the held for sale criteria in
accordance with FASB ASC 205, Presentation of Financial Statements as of March 31, 2015. Accordingly, the held for sale
Thermal Systems assets and liabilities were reclassified in the consolidated balance sheet to assets held for sale or liabilities
held for sale, respectively, as the sale of such assets and liabilities was expected within one year, and to current or long-term
assets and liabilities held for sale, as appropriate, for prior periods. The Company ceased recording depreciation of the held for
sale Thermal Systems assets in the first quarter of 2015. As described above, Delphi completed the sale of the wholly owned
Thermal Systems business on June 30, 2015, and of its 50 percent interest in KDAC on September 24, 2015. The following
table summarizes the carrying value of the major classes of assets and liabilities of discontinued operations:
December 31,
2015
December 31,
2014
(in millions)
Cash and cash equivalents .............................................................................................................. $ 44 $ 45
Accounts receivable, net................................................................................................................. 79 228
Inventories, net ............................................................................................................................... 17 91
Property, net.................................................................................................................................... 74 322
Investments in affiliates.................................................................................................................. — 130
Intangible assets, net....................................................................................................................... 1 18
Other assets..................................................................................................................................... 8 61
Total assets of the discontinued operations classified as held for sale ...................................... $ 223 $ 895
Accounts payable............................................................................................................................ $ 97 $ 303
Accrued liabilities........................................................................................................................... 27 53
Other liabilities ............................................................................................................................... 6 35
Total liabilities of the discontinued operations classified as held for sale................................. $ 130 $ 391
As of December 31, 2015 and December 31, 2014, there was $109 million and $118 million, respectively, of
Noncontrolling interest attributable to the Company's partner in the SDAAC joint venture.
Assets and liabilities classified as held for sale were required to be recorded at the lower of carrying value or fair value
less costs to sell. Accordingly, an after-tax impairment loss of $88 million was recorded in income from discontinued
operations in the first quarter of 2015 based on the evaluation of the fair value of the Company's interest in KDAC in relation to
its carrying value. As of March 31, 2015, the fair value of this interest was estimated to be approximately $32 million,
determined primarily based on recent negotiations with a third party and based on a non-binding offer from that potential buyer
at the time. As described above, the Company subsequently completed the sale of its interest in KDAC for net cash proceeds of
$70 million. The Company's interest in KDAC is reported within investments in affiliates in the above table as of December 31,
2014.
The estimated fair value less costs to sell of the held for sale businesses exceeded their carrying value as of December 31,
2015, and therefore no adjustment to these long-lived assets was necessary. The divestiture of the businesses held for sale could
result in a gain or loss on sale to the extent the ultimate selling price differs from the current carrying value of the net assets
recorded.