DELPHI 2011 Annual Report Download - page 14

Table of Contents
meaningful protection for our products and technical innovations. Similarly, while our trademarks (particularly those protecting the Delphi brand) are
important to identify our position in the industry, we do not believe that any of these are individually material to our business. We are actively pursuing
marketing opportunities to commercialize and license our technology to both automotive and non-automotive industries and we have selectively taken
licenses from others to support our business interests. These activities foster optimization of intellectual property rights.
Materials
We procure our raw materials from a variety of suppliers around the world. Generally, we seek to obtain materials in the region in which our products
are manufactured in order to minimize transportation and other costs. The most significant raw materials we use to manufacture our products include
aluminum, copper and resins. As of December 31, 2011, we have not experienced any significant shortages of raw materials and normally do not carry
inventories of such raw materials in excess of those reasonably required to meet our production and shipping schedules.
Commodity cost volatility, most notably related to copper, aluminum, petroleum-based resin products and fuel is a challenge for us and our industry.
We are continually seeking to manage these and other material-related cost pressures using a combination of strategies, including working with our suppliers
to mitigate costs, seeking alternative product designs and material specifications, combining our purchase requirements with our customers and/or suppliers,
changing suppliers, hedging of certain commodities and other means. In the case of copper, which primarily affects our Electrical/Electronic Architecture
segment, and aluminum, which primarily affects our Thermal segment, contract escalation clauses have enabled us to pass on some of the price increases to
our customers and thereby partially offset the impact of increased commodity costs on operating income for the related products. However, other than in the
case of copper and aluminum, our overall success in passing commodity cost increases on to our customers has been limited. We will continue our efforts to
pass market-driven commodity cost increases to our customers in an effort to mitigate all or some of the adverse earnings impacts, including by seeking to
renegotiate terms as contracts with our customers expire.
Seasonality
Our business is moderately seasonal, as our primary North American customers historically halt operations for approximately two weeks in July and
approximately one week in December. Our European customers generally reduce production during the months of July and August and for one week in
December. Shut-down periods in the rest of the world generally vary by country. In addition, automotive production is traditionally reduced in the months of
July, August and September due to the launch of parts production for new vehicle models. Accordingly, our results reflect this seasonality.
Employees
As of December 31, 2011, we employed approximately 104,000 people (5,000 in the U.S., and 99,000 outside of the U.S.): 24,000 salaried employees
and 80,000 hourly employees. In addition, we maintain an alternative workforce of 39,000 contract and temporary workers. Our employees are represented
worldwide by numerous unions and works councils, including the IUE-CWA, the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied
Industrial and Service Workers International Union and its Local Union 87L (together, the "USW"), and Confederacion De Trabajadores Mexicanos. In the
U.S., our employees are represented by only the IUE-CWA and the USW, with which we have competitive wage and benefit packages.
Environmental Compliance
We are subject to the requirements of U.S. federal, state and local, and non-U.S., environmental and safety and health laws and regulations. These
include laws regulating air emissions, water discharge, hazardous materials and waste management. We have an environmental management structure
designed to facilitate and
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