DELPHI 2011 Annual Report Download - page 25

Table of Contents
In addition, we have significant business in Europe and transact much of this business in the Euro currency, including sales and purchase contracts.
There have been recent concerns over the stability of the Euro as a currency and the economic outlook for both Euro functional countries as well as non-Euro
countries. Given the broad range of possible outcomes it is difficult to fully assess the implications on our business. Some of the potential outcomes could
significantly impact our operations. In the event of a country redenominating its currency away from the Euro the potential impact could be material to
operations. We cannot provide assurance that fluctuations in currency exposures will not have a material adverse effect on our financial condition or results of
operations, or cause significant fluctuations in quarterly and annual results of operations.
We face risks associated with doing business in non-U.S. jurisdictions.
The majority of our manufacturing and distribution facilities are in countries outside of the U.S., including Mexico and countries in Asia Pacific,
Eastern and Western Europe, South America and Northern Africa. We also purchase raw materials and other supplies from many different countries around
the world. For the year ended December 31, 2011, approximately 69% of our net revenue came from sales outside the United States. International operations
are subject to certain risks inherent in doing business abroad, including:
• exposure to local economic, political and labor conditions;
• unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency exchange rates and changes
in the rate of inflation in the U.S. and other foreign countries;
• tariffs, quotas, customs and other import or export restrictions and other trade barriers;
• expropriation and nationalization;
• difficulty of enforcing agreements, collecting receivables and protecting assets through non-U.S. legal systems;
• reduced intellectual property protection;
• limitations on repatriation of earnings;
• withholding and other taxes on remittances and other payments by subsidiaries;
• investment restrictions or requirements;
• export and import restrictions;
• violence and civil unrest in local countries; and
• compliance with the requirements of applicable anti-bribery laws, including the U.S. Foreign Corrupt Practices Act.
Additionally, our global operations may also be adversely affected by political events, domestic or international terrorist events and hostilities or
complications due to natural or nuclear disasters. These uncertainties could have a material adverse effect on the continuity of our business and our results of
operations and financial condition.
Increasing our manufacturing footprint in Asian markets, including China, and our business relationships with Asian automotive manufacturers are
important elements of our strategy. In addition, our strategy includes
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