DELPHI 2011 Annual Report Download - page 28

Table of Contents
In addition, as we adopt new technology, we face an inherent risk of exposure to the claims of others that we have allegedly violated their intellectual
property rights. We cannot assure that we will not experience any material warranty, product liability or intellectual property claim losses in the future or that
we will not incur significant costs to defend such claims.
We may be adversely affected by environmental regulation, litigation or other liabilities.
We are subject to various U.S. federal, state and local, and non-U.S., environmental, health and safety laws and regulations governing, among other
things:
• the generation, storage, handling, use, transportation, presence of, or exposure to hazardous materials;
• the emission and discharge of hazardous materials into the ground, air or water;
• the incorporation of certain chemical substances into our products, including electronic equipment; and
• the health and safety of our employees.
We are also required to obtain permits from governmental authorities for certain operations. We cannot assure you that we have been or will be at all
times in complete compliance with such laws, regulations and permits. If we violate or fail to comply with these laws, regulations or permits, we could be
fined or otherwise sanctioned by regulators. We could also be held liable for any and all consequences arising out of human exposure to hazardous substances
or other environmental damage.
Certain environmental laws impose liability, sometimes regardless of fault, for investigating or cleaning up contamination on or emanating from our
currently or formerly owned, leased or operated property, as well as for damages to property or natural resources and for personal injury arising out of such
contamination. These environmental laws also assess liability on persons who arrange for hazardous substances to be sent to third party disposal or treatment
facilities when such facilities are found to be contaminated. At this time, we are involved in various stages of investigation and cleanup related to
environmental remediation matters at a number of present and former facilities in the U.S. and abroad. The ultimate cost to us of site cleanups is difficult to
predict given the uncertainties regarding the extent of the required cleanup, the potential for ongoing environmental monitoring and maintenance that could be
required for many years, the interpretation of applicable laws and regulations, alternative cleanup methods, and potential agreements that could be reached
with governmental and third parties. While we have environmental reserves of approximately $22 million at December 31, 2011 for the cleanup of presently-
known environmental contamination conditions, it cannot be guaranteed that actual costs will not significantly exceed these reserves. We also could be named
a potentially responsible party at additional sites in the future and the costs associated with such future sites may be material.
In addition, environmental laws are complex, change frequently and have tended to become more stringent over time. While we have budgeted for
future capital and operating expenditures to maintain compliance with environmental laws, we cannot assure that environmental laws will not change or
become more stringent in the future. Therefore, we cannot assure that our costs of complying with current and future environmental and health and safety
laws, and our liabilities arising from past or future releases of, or exposure to, hazardous substances will not adversely affect our business, results of
operations or financial condition. For example, adoption of greenhouse gas rules in jurisdictions in which we operate facilities could require installation of
emission controls, acquisition of emission credits, emission reductions, or other measures that could be costly, and could also impact utility rates and increase
the amount we spend annually for energy.
We may identify the need for additional environmental remediation or demolition obligations relating to facility divestiture, closure and
decommissioning activities.
As we sell, close and/or demolish facilities around the world, environmental investigations and assessments will continue to be performed. We may
identify previously unknown environmental conditions or further
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