DELPHI 2011 Annual Report Download - page 59

Table of Contents
Successor
The annual effective tax rate in the year ended December 31, 2010 was impacted by a $2 million benefit related to tax contingencies for favorable tax
settlements in various jurisdictions, a $21 million benefit related to valuation allowance changes in various countries outside the U.S., a $29 million benefit
for U.S. primarily related to research and development credit, and a $15 million benefit due to changes in estimate related to tax law changes in Mexico.
During the Successor period of 2009, our tax rate was affected by the tax rates in non-U.S. jurisdictions, the relative amount of income we earn in such
jurisdictions and the relative amount of losses for which no tax benefit would be recognized due to a valuation allowance.
Predecessor
The annual effective tax rate and the income tax benefit for the Predecessor Period of 2009 were favorably impacted by the recognition of $306 million
and $52 million of tax benefits in continuing operations due to the elimination of the disproportionate tax effects in accumulated other comprehensive income
related to the salaried pension and OPEB obligations, respectively, which were settled during the same period. Refer to Note 15. Income Taxes to the audited
consolidated financial statements included herein.
Equity Income (Loss), Net of Tax
Successor Predecessor
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)
Equity income (loss), net of tax $ 17 $ 5 $ (36)
Successor
During both the year ended 2010 and the Successor Period of 2009, equity income reflects our interest in the results of ongoing operations of entities
accounted for as equity-method investments, principally from our South Korean and Mexican joint ventures.
Predecessor
Equity income (loss), net of tax in the Predecessor Period of 2009 includes a $23 million impairment charge related to an investment in a non-
consolidated affiliate, as well as the overall negative economic impact resulting from the industry downturn during 2009.
Loss from Discontinued Operations, Net of Tax
Predecessor
Period from
January 1 to
October 6, 2009
(in millions)
Loss from discontinued operations, net of tax $ (44)
Predecessor
The loss from discontinued operations for the Predecessor Period of 2009 includes the losses related to the operations and assets held for sale of the
halfshaft and steering system products (the "Steering Business") and the Automotive Holdings Group ("AHG"), which included various non-core product
lines and plant sites that did not fit our or the Predecessor's strategic framework.
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