DELPHI 2011 Annual Report Download - page 112

Table of Contents
11. RESTRUCTURING
Delphi continually evaluates alternatives to align its business with the changing needs of its customers and to lower the operating costs of the Company.
This includes the realignment of its existing manufacturing capacity, facility closures, or similar actions in the normal course of business. These actions may
result in voluntary or involuntary employee termination benefits, which are mainly pursuant to union or other contractual agreements. Voluntary termination
benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued when Delphi commits to a termination plan and
the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence
of a substantive plan for severance or termination. Contract termination costs are recorded when contracts are terminated or when Delphi ceases to use the
leased facility and no longer derives economic benefit from the contract. All other exit costs are accrued when incurred.
Delphi's restructuring costs are undertaken as necessary to implement management's strategy, streamline operations, take advantage of available
capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and
closure of facilities and other exit or disposal activities, as it relates to executing the Company's strategy in the normal course of business and transforming the
salaried workforce to reduce general and administrative expenses.
The following table summarizes the restructuring charges recorded for the years ended December 31, 2011 and 2010, and the periods from August 19 to
December 31 and January 1 to October 6, 2009 by operating segment:
Successor Predecessor
Segment
Year ended
December 31,
2011
Year ended
December 31,
2010
Period from
August 19 to
December 31,
2009
Period from
January 1 to
October 6,
2009
(in millions) (in millions)
Electronics and Safety $ 5 $ 29 $ 20 $ 91
Powertrain Systems 12 49 50 45
Electrical/Electronic Architecture 12 94 50 99
Thermal Systems 2 52 5 11
Eliminations and Other — — 1 (11)
Continuing operations 31 224 126 235
Discontinued operations — — — 14
Total $ 31 $ 224 $ 126 $ 249
110