DELPHI 2015 Annual Report Download - page 79

Table of Contents
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Other Financing
Receivable factoring—Delphi maintains a €400 million European accounts receivable factoring facility, of which €350
million is available on a committed basis. This facility is accounted for as short-term debt and borrowings are subject to the
availability of eligible accounts receivable. No amounts were outstanding under this European accounts receivable factoring
facility as of December 31, 2015 and 2014. Collateral is not generally required related to these trade accounts receivable. The
maximum amount drawn under the European facility during the year ended December 31, 2015 to manage intra-period
working capital needs, and to fund a portion of the amount that was placed on deposit for the acquisition of HellermannTyton,
was €353 million.
In addition, in 2015 and 2014 one of the Company’s European subsidiaries factored, without recourse, receivables related
to certain foreign research tax credits to a financial institution. These transactions were accounted for as true sales of the
receivables, and the Company therefore derecognized approximately $27 million and $73 million from other current assets in
the consolidated balance sheet as of December 31, 2015 and December 31, 2014, respectively, as a result of these transactions.
Expenses of approximately $1 million and $2 million incurred in conjunction with these transactions were recorded to interest
expense during the years ended December 31, 2015 and December 31, 2014, respectively.
In 2015, the Company entered into arrangements with various financial institutions to sell eligible trade receivables from
certain aftermarket customers in North America. These arrangements have original terms of one year and may be renewed
annually. The receivables under these arrangements are sold without recourse to the Company and are therefore accounted for
as true sales. During the year ended December 31, 2015, $100 million of receivables were sold under these arrangements, and
expenses of $2 million were recognized within interest expense.
Capital leases and other—As of December 31, 2015 and December 31, 2014, approximately $77 million and
approximately $53 million, respectively, of other debt issued by certain non-U.S. subsidiaries and capital lease obligations were
outstanding.
Government programs—Delphi commonly seeks manufacturing development and financial assistance incentive
programs that may be awarded by government entities. Delphi has numerous technology and manufacturing development
programs that are competitively awarded from agencies of the U.S. Federal Government. These U.S. based programs are from
the U.S. Department of Transportation (“DOT”), the U.S. Department of Energy (“DOE”), and the U.S. Department of Defense
(“DoD”). We received approximately $4 million from these Federal agencies in the year ended December 31, 2015 for work
performed. These programs supplement our internal research and development funds and directly support our product focus of
Safe, Green and Connected. We continue to pursue many technology development programs by bidding on competitively
procured programs from DOT, DOE and DoD. Some of these programs were bid with us being the lead or “Prime Contractor”,
and some were bid with us as a “Subrecipient” to the Prime Contractor. For the year ended December 31, 2015, Delphi was
awarded four new programs with over $7 million of U.S. Government funds that will be received over the next 48 months.
Contractual Commitments
The following table summarizes our expected cash outflows resulting from financial contracts and commitments as of
December 31, 2015, with amounts denominated in foreign currencies translated using foreign currency rates as of
December 31, 2015. We have not included information on our recurring purchases of materials for use in our manufacturing
operations. These amounts are generally consistent from year to year, closely reflect our levels of production, and are not long-
term in nature. The amounts below exclude as of December 31, 2015, the gross liability for uncertain tax positions of $48
million. We do not expect a significant payment related to these obligations to be made within the next twelve months. We are
not able to provide a reasonably reliable estimate of the timing of future payments relating to the non-current portion of
obligations associated with uncertain tax positions. For more information, refer to Note 14. Income Taxes to the audited
consolidated financial statements included herein.