DELPHI 2015 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2015 DELPHI annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

Table of Contents
50
Net sales, gross margin as a percentage of net sales and Adjusted Operating Income by segment for the years ended
December 31, 2014 and 2013 are as follows:
Net Sales by Segment
Year Ended December 31, Variance Due To:
2014 2013
Favorable/
(unfavorable)
Volume, net of
contractual
price
reductions FX
Commodity
Pass-
through Other Total
(in millions) (in millions)
Electrical/Electronic
Architecture......................... $ 8,274 $ 7,972 $ 302 $ 373 $ (32) $ (62) $ 23 $ 302
Powertrain Systems ................ 4,535 4,392 143 110 45 — (12) 143
Electronics and Safety ............ 2,885 2,878 7 7 5 — (5) 7
Eliminations and Other ........... (195) (191) (4)(14)(6) — 16 (4)
Total ................................... $ 15,499 $ 15,051 $ 448 $ 476 $ 12 $ (62) $ 22 $ 448
Gross Margin Percentage by Segment
Year Ended December 31,
2014 2013
Electrical/Electronic Architecture....................................................................................................... 19.3% 18.3%
Powertrain Systems ............................................................................................................................ 19.6% 18.7%
Electronics and Safety ........................................................................................................................ 18.9% 17.3%
Eliminations and Other ....................................................................................................................... —% —%
Total ............................................................................................................................................... 19.5% 18.5%
Adjusted Operating Income by Segment
Year Ended December 31, Variance Due To:
2014 2013
Favorable/
(unfavorable)
Volume, net of
contractual
price
reductions
Operational
performance Other Total
(in millions) (in millions)
Electrical/Electronic Architecture....... $ 1,060 $ 982 $ 78 $ 28 $ 158 $ (108) $ 78
Powertrain Systems............................. 518 470 48 (28) 126 (50) 48
Electronics and Safety......................... 347 327 20 (85) 139 (34) 20
Eliminations and Other ....................... — — — — — — —
Total................................................ $ 1,925 $ 1,779 $ 146 $ (85) $ 423 $ (192) $ 146
As noted in the table above, Adjusted Operating Income for the year ended December 31, 2014 as compared to the year
ended December 31, 2013 was impacted by volume and contractual price reductions, including product mix and operational
performance improvements, as well as the following items included in Other in the table above:
• Approximately $41 million of increased depreciation and amortization;
• $120 million of increased SG&A expenses, primarily related to accruals for incentive compensation, information
technology costs and costs for other service providers; and
• The absence of a prior period gain on the disposal of property of approximately $11 million from the sale of a
manufacturing site that was closed as a result of Delphi's overall restructuring program.