DELPHI 2011 Annual Report Download - page 94

Table of Contents
Capital IQ for the average analyst estimates for the guideline public companies. The business unit's respective multiples were selected depending on
circumstances specific to each business unit within the range of the multiples provided by the comparable companies.
Delphi utilized TTM Revenue multiples of 0.3x-1.0x, NFY Revenue multiples of 0.3x-0.8x, NFY EBITDA multiples of 4.0x-6.9x and NFY+1
EBITDA multiples of 3.2x-7.2x. The selected multiples were then applied to respective financial results of the business units to derive an implied value of
TIC. The resulting values from TTM Revenue, NFY Revenue, NFY EBITDA, and NFY+1 EBITDA multiples were weighted according to unique
characteristics of each business unit, mostly at 20%, 20%, 50%, and 10%, respectively to arrive at minority marketable value of TIC. No control premium was
applied to determine the fair value of the TIC of the business units on a controlling basis in consideration of the difficult conditions within the automotive
supplier industry.
• Cost Approach: The cost approach considers reproduction or replacement cost as an indicator of value. The cost approach is based on the assumption
that a prudent investor would pay no more for an entity than the amount for which he could replace or re-create it. Historical costs are often used to
estimate the current cost of replacing the entity valued. In doing so, adjustments for physical deterioration and obsolescence are taken into account.
When using the cost approach to value a business enterprise, the equity value is calculated as the appraised value of the individual assets that comprise
the business less the value of the liabilities that encumber those assets.
The following table summarizes the estimated provisional fair values of the assets acquired and liabilities assumed based on information that was
available at the Acquisition Date. Measurement period adjustments were completed in 2010 and reflect new information obtained about facts and
circumstances that existed as of the Acquisition Date, primarily related to changes in deferred taxes to reflect book to tax return reconciliations. Accordingly,
the carrying amount of deferred tax assets and property, plant and equipment were retrospectively adjusted as of October 6, 2009. The impact of the
retrospective adjustments was not material to Delphi's results of operations or cash flows for the period from the Acquisition Date through December 31, 2009
and, therefore, was reflected in operating results in the year ended December 31, 2010.
October 6, 2009
(As initially
reported)
Measurement
Period
Adjustments
October 6, 2009
(As adjusted)
(in millions)
Fair value of membership interests issued $ 4,932 $ — $ 4,932
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents(1) $ 2,801 $ — $ 2,801
Restricted cash 124 — 124
Accounts receivable 2,160 — 2,160
Inventory(2) 964 — 964
Property, plant and equipment(3) 2,255 (169) 2,086
Identifiable intangible assets(4) 766 — 766
Deferred tax assets 305 169 474
Other assets 896 — 896
Accounts payable (1,585) — (1,585)
Pension liabilities(5) (882) — (882)
Debt(6) (419) — (419)
Deferred tax liabilities (328) — (328)
Other liabilities(7) (1,710) — (1,710)
Noncontrolling interests (415) — (415)
Total identifiable net assets $ 4,932 $ — $ 4,932
Acquisition-related costs of $19 million were included in Other income (expense), net in the consolidated results of operations of the Successor for the period
August 19 to December 31, 2009.
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