DELPHI 2011 Annual Report Download - page 51

Table of Contents
• Electronics and Safety, which includes component and systems integration expertise in infotainment and connectivity, body controls and security
systems, displays, mechatronics, passive and active safety electronics and electric and hybrid electric vehicle power electronics, as well as
advanced development of software.
• Thermal Systems, which includes heating, ventilating and air conditioning systems, components for multiple transportation and other adjacent
markets, and powertrain cooling and related technologies.
• Eliminations and Other, which includes i) the elimination of inter-segment transactions, and ii) certain other expenses and income of a non-
operating or strategic nature.
Through December 31, 2010, we evaluated performance based on stand-alone segment Adjusted EBITDA and accounted for inter-segment sales and
transfers as if the sales or transfers were to third parties, at current market prices. Our management believed that Adjusted EBITDA was a meaningful
measure of performance and it was used by management to analyze Company and stand-alone segment operating performance. Management also used
Adjusted EBITDA for planning and forecasting purposes. Effective January 1, 2011, our management began utilizing segment EBITDA as a key performance
measure because our restructuring was substantially completed by the end of 2010. Segment EBITDA and Adjusted EBITDA should not be considered
substitutes for results prepared in accordance with U.S. GAAP and should not be considered alternatives to net income attributable to Delphi, which is the
most directly comparable financial measure to EBITDA and Adjusted EBITDA that is in accordance with U.S. GAAP. Segment EBITDA and Adjusted
EBITDA, as determined and measured by us, should also not be compared to similarly titled measures reported by other companies.
The reconciliation of EBITDA to net income attributable to Delphi for the year ended December 31, 2011 is as follows:
Electrical/
Electronic
Architecture
Powertrain
Systems
Electronics
and Safety
Thermal
Systems
Eliminations
and Other Total
(in millions)
For the year ended December 31, 2011:
EBITDA $ 868 $ 710 $ 369 $ 172 $ — $ 2,119
Depreciation and amortization (131) (195) (105) (44) — (475)
Operating income $ 737 $ 515 $ 264 $ 128 $ — $ 1,644
Interest expense (123)
Other expense, net (15)
Income before income taxes and equity income 1,506
Income tax expense (305)
Equity income 22
Net income $ 1,223
Net income attributable to noncontrolling interest 78
Net income attributable to Delphi $ 1,145
For the year ended December 31, 2010, the reconciliation of Adjusted EBITDA to EBITDA includes other restructuring costs related to 1) the
implementation of projects aimed at reducing the cost and improving the functionality of information technology systems to support finance, manufacturing
and product development initiatives, 2) certain plant consolidations and closures costs, 3) continued consolidation of many staff administrative activities, and
4) employee benefit plan settlements in Mexico.
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