DELPHI 2015 Annual Report Download - page 162

Table of Contents
140
A reconciliation of the major classes of line items constituting pre-tax profit or loss of discontinued operations to income
from discontinued operations, net of tax as presented in the consolidated statements of operations is as follows:
Year Ended December 31,
2015 2014 2013
(in millions)
Net sales.............................................................................................................. $ 914 $ 1,524 $ 1,412
Cost of sales........................................................................................................ 828 1,379 1,293
Selling, general and administrative..................................................................... 27 45 47
Amortization ....................................................................................................... 177
Restructuring....................................................................................................... 348
Other income and expense items that are not major, net.................................... — 1 —
Income from discontinued operations before income taxes and equity income ... 55 90 57
Income tax expense on discontinued operations ................................................ (10)(27)(16)
Equity (loss) income from discontinued operations, net of tax .......................... (1)(3) 19
Gain on divestiture of discontinued operations, net of tax ................................. 318 — —
Impairment loss .................................................................................................. (88) — —
Income from discontinued operations, net of tax.................................................. 274 60 60
Income from discontinued operations attributable to noncontrolling interests..... 12 18 18
Net income from discontinued operations attributable to Delphi ......................... $ 262 $ 42 $ 42
Income from discontinued operations before income taxes attributable to Delphi was $270 million, $65 million and $56
million for the years ended December 31, 2015, 2014 and 2013, respectively, which includes $2 million, $4 million and $2
million respectively, of income tax expense attributable to noncontrolling interests.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Management of the Company, under the supervision and with the participation of the Chief Executive Officer and the
Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure
controls and procedures as of December 31, 2015. As defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the
“Exchange Act”), disclosure controls and procedures are controls and procedures designed to provide reasonable assurance that
information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized
and reported on a timely basis, and that such information is accumulated and communicated to management, including the
Company's Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure. The Company's disclosure controls and procedures include components of the Company's internal control over
financial reporting. Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that
the Company's disclosure controls and procedures were effective as of December 31, 2015.
Management's Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such
term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the Company. Under the supervision of the Chief Executive
Officer and Chief Financial Officer, management conducted an evaluation of the effectiveness of the Company's internal
control over financial reporting as of December 31, 2015 based on the framework set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in “Internal Control-Integrated Framework (2013).” Due to the timing of
the acquisition, the Company has excluded the acquired operations of HellermannTyton Group PLC ("HellermannTyton") from
its assessment of the effectiveness of the Company's internal controls over financial reporting as HellermannTyton was