DELPHI 2011 Annual Report Download - page 62

Table of Contents
• Eliminations and Other includes $75 million of keep site facilitation reimbursements recognized by the Predecessor during the period from
January 1 to October 6, 2009 as a result of the Amended MRA, which became effective in September 2008 (refer to Note 3. Elements of
Predecessor Transformation Plan to the audited consolidated financial statements included herein for more information.)
• Foreign exchange fluctuations are primarily related to the Euro.
Gross Margin Percentage by Segment
Successor Predecessor
Year ended
December 31, 2010
Period from
August 19 to
December 31, 2009
Period from
January 1 to
October 6, 2009
Electrical/Electronic Architecture 16.8% 14.5% 1.4%
Powertrain Systems 13.8% 10.1% 2.6%
Electronics and Safety 12.8% 7.9% (12.9)%
Thermal Systems 12.4% 5.5% 3.2%
Eliminations and Other 1.4% 38.5% 49.1%
Total 14.8% 10.9% (1.8)%
EBITDA by Segment
Successor Predecessor Variance due to:
Year ended
December 31,
2010
Period from
August 19 to
December 31,
2009
Period from
January 1
to
October 6,
2009
2010 versus
full year 2009
favorable/
(unfavorable)
Operations
not acquired
Volume, net
of
contractual
price
reductions
Operational
performance Other Total
(in millions) (in millions) (in millions)
Electrical/ Electronic Architecture $ 650 $ 94 $ (132) $ 688 $ — $ 358 $ 161 $ 169 $ 688
Powertrain Systems 361 9 (71) 423 23 283 70 47 423
Electronics and Safety 247 17 (319) 549 (10) 118 211 230 549
Thermal Systems 109 8 4 97 14 75 41 (33) 97
Eliminations and Other (6) 1 4 (11) (99) — — 88 (11)
Total $ 1,361 $ 129 $ (514) $ 1,746 $ (72) $ 834 $ 483 $ 501 $ 1,746
As noted in the table above, 2010 EBITDA as compared to Full Year 2009 EBITDA was impacted by Operations Not Acquired by the Successor,
volume and contractual price reductions, and operational performance improvements, which include favorable manufacturing and engineering performance
offset by unfavorable material and freight economics, as well as the following items included in Other in the table above:
• $137 million of decreased costs associated with restructuring activities resulting in employee termination benefit cost reductions, including $82
million, $46 million and $55 million in the Electronics and Safety, Powertrain Systems and Electrical/Electronic Architecture, respectively, offset
by increased costs of $36 million and $10 million in the Thermal Systems and Eliminations and Other segments, respectively.
• Favorable foreign currency exchange impact of $29 million primarily due to the Euro, Brazilian Real, Polish Zloty and British pound, including
$24 million, $4 million and $10 million in the Electronics and Safety, Powertrain Systems and Electrical/Electronic Architecture segments,
respectively, which were partially offset by $9 million of unfavorable foreign currency exchange in the Thermal Systems segment.
• $150 million of decreases in pension and OPEB, offset by favorable EBITDA from discontinued operations of $64 million in the Eliminations
and Other segment.
• Approximately $60 million of decreased SG&A as a result of the positive effects of cost savings initiatives.
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