DELPHI 2015 Annual Report Download - page 62

Table of Contents
40
Restructuring
Year Ended December 31,
2015 2014
Favorable/
(unfavorable)
(dollars in millions)
Restructuring............................................................................................................... $ 177 $ 140 $ (37)
Percentage of net sales ................................................................................................ 1.2% 0.9%
Restructuring charges recorded during 2015 were primarily related to on-going restructuring programs, which include
workforce reductions as well as plant closures, which are focused on aligning our manufacturing capacity with the current
automotive production levels in Europe and South America and the continued rotation of our manufacturing footprint to low
cost locations within these regions. These charges include the recognition of approximately $68 million of employee-related
and other costs related to the initiation of a plant closure of a European manufacturing site within the Powertrain Systems
segment in the fourth quarter of 2015. We expect to make cash payments of approximately $85 million in 2016 pursuant to
these implemented restructuring programs.
Restructuring expenses recorded during the year ended December 31, 2014 were primarily attributable to the expenses
incurred in conjunction with our on-going restructuring programs focused on aligning our manufacturing capacity and footprint
with the automotive production levels in Europe and South America. These charges included the recognition of employee-
related and other costs of $35 million during the year ended December 31, 2014 for the initiation of a new restructuring
program at a European manufacturing site within the Powertrain Systems segment in the second quarter of 2014.
As we continue to operate in a cyclical industry that is impacted by movements in the global and regional economies, we
continually evaluate opportunities to further adjust our cost structure. The Company plans to implement additional restructuring
activities in the future, if necessary, in order to align manufacturing capacity and other costs with prevailing regional
automotive production levels and locations, and to improve the efficiency and utilization of other locations. Such future
restructuring actions are dependent on market conditions, customer actions and other factors.
Refer to Note 10. Restructuring to the audited consolidated financial statements included herein for additional
information.
Interest Expense
Year Ended December 31,
2015 2014
Favorable/
(unfavorable)
(in millions)
Interest expense........................................................................................................... $ 127 $ 135 $ 8
The decrease in interest expense for the year ended December 31, 2015 as compared to the year ended December 31,
2014 reflects a reduction in interest expense from the redemption of the 6.125% Senior Notes, partially offset by the issuance of
€700 million of 1.50% 2015 Euro-denominated Senior Notes in February 2015 and the issuance of the $1.3 billion 2015 Senior
Notes in November 2015.
Refer to Note 11. Debt to the audited consolidated financial statements included herein for additional information.
Other Income, Net
Year Ended December 31,
2015 2014
Favorable/
(unfavorable)
(in millions)
Other (expense) income, net ....................................................................................... $(88) $ (8) $ (80)
During the year ended December 31, 2015, Delphi redeemed for cash the entire aggregate principal amount outstanding
of the 6.125% Senior Notes and cancelled the Senior Bridge Credit Agreement, resulting in losses on extinguishment of debt of
approximately $52 million and $6 million, respectively. Delphi also incurred approximately $23 million in transaction costs
related to the acquisition of HellermannTyton and, as further discussed in Note 17. Derivatives and Hedging Activities,