DELPHI 2011 Annual Report Download - page 103

Table of Contents
In June 2011, the FASB issued ASU 2011-05, Presentation of Comprehensive Income. This guidance requires presentation of all non-owner changes in
equity to be presented in one continuous statement of comprehensive income or in two separate but consecutive statements. It also prohibits the inclusion of
comprehensive income items in the statement of equity. Also, the amendments in this update do not change the items that must be reported in other
comprehensive income or when an item of other comprehensive income must be reclassified to net income. The guidance is effective for fiscal years, and
interim periods within those years, beginning after December 15, 2011. Early adoption is permitted and Delphi elected to adopt this ASU in 2011. The
adoption of this ASU did not have a significant impact on Delphi's financial statements other than providing the new presentation.
ASU 2011-05 was modified by the issuance of ASU 2011-12, Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of
Items out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 in December 2011. This update defers certain
paragraphs of ASU 2011-05 that require reclassifications of items from other comprehensive income (OCI) to net income by component of net income and by
component of OCI.
In September 2011, the FASB issued ASU 2011-08, Testing Goodwill for Impairment. The revised standard is intended to simplify goodwill
impairment testing by adding an option to qualitatively assess goodwill for impairment. The guidance is effective for interim and annual periods beginning
after December 15, 2011. Early adoption is permitted. Delphi adopted this guidance for its testing of goodwill for impairment effective October 1, 2011 and it
did not have a significant impact on Delphi's financial statements.
In December 2011, the FASB issued ASU 2011-10, Derecognition of In-substance Real Estate—a Scope Clarification. This guidance requires that if an
entity ceases to have a controlling interest in a subsidiary that is in substance real estate due to a default on the loan (mortgage) on that real estate, it would
continue to recognize the asset and related debt until the real estate is legally transferred to satisfy the debt. The guidance is effective for fiscal years
beginning after June 15, 2012, and early adoption is permitted. Delphi is evaluating the effects of this guidance but does not expect it to have a significant
impact on its financial statements.
Also in December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. This guidance requires entities to disclose
both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and
transactions subject to an agreement similar to a master netting arrangement. The guidance is effective for annual periods beginning on or after January 1,
2013. Early adoption is not permitted, but this guidance shall be applied retrospectively for any period presented that begins before the date of initial
application. Delphi is evaluating the effects of this guidance but does not expect it to have a significant impact on its financial statements.
3. ELEMENTS OF PREDECESSOR TRANSFORMATION PLAN
GM—The Predecessor and Old GM entered into comprehensive settlement agreements consisting of the Global Settlement Agreement dated
September 6, 2007 (as amended through December 7, 2007, (the "Original GSA")), and the Master Restructuring Agreement dated September 6, 2007 (as
amended through December 7, 2007 (the "Original MRA")). The Original GSA and the Original MRA were approved in the order confirming the
Predecessor's initial plan of reorganization on January 25, 2008. The Original GSA and the Original MRA provided that they would not be effective until and
unless the Predecessor emerged from chapter 11. However, as part of the Predecessor's overall negotiations with its stakeholders to further amend the initial
plan of reorganization and emerge from chapter 11 as soon as practicable, on September 12, 2008, the Predecessors and Old GM entered into an Amended
and Restated Global Settlement Agreement (the "Amended GSA") and an Amended and Restated Master Restructuring Agreement (the "Amended MRA").
The Court approved such amendments on September 26, 2008 and the Amended GSA and Amended MRA became effective on September 29, 2008. These
amended agreements included provisions related to the transfer of certain legacy pension and other postretirement benefit obligations and became effective
independent of and in advance of
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