DELPHI 2012 Annual Report Download - page 124

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As of December 31, 2012 and December 31, 2011, Delphi had the following liabilities measured at fair value on a
recurring basis:
Total
Quoted Prices in
Active Markets
Level 1
Significant Other
Observable Inputs
Level 2
Significant
Unobservable
Inputs
Level 3
(in millions)
As of December 31, 2012
Commodity derivatives.............................................. $ 8 $ — $ 8 $ —
Foreign currency derivatives...................................... 5 — 5 —
Total.................................................................... $ 13 $ — $ 13 $ —
As of December 31, 2011:
Commodity derivatives.............................................. $ 28 $ — $ 28 $ —
Foreign currency derivatives...................................... 41 — 41 —
Total.................................................................... $ 69 $ — $ 69 $ —
Fair Value Measurements on a Nonrecurring Basis
In addition to items that are measured at fair value on a recurring basis, Delphi also has items in its balance sheet that are
measured at fair value on a nonrecurring basis. As these items are not measured at fair value on a recurring basis, they are not
included in the tables above. Nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis include
long-lived assets, intangible assets, asset retirement obligations, share-based compensation and liabilities for exit or disposal
activities measured at fair value upon initial recognition. Delphi recognized non-cash asset impairment charges of $15 million,
recognized in cost of sales during the year ended December 31, 2012. During the year ended December 31, 2011, Delphi
recorded impairment charges of $13 million to the carrying value of its investments and marketable securities. Fair value of
long-lived assets is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk
involved and a review of appraisals. As such, Delphi has determined that the fair value measurements of long-lived assets fall
in Level 3 of the fair value hierarchy.
17. OTHER INCOME, NET
Other income, net included:
Year Ended December 31,
2012 2011 2010
(in millions)
Interest income............................................................................................................................. $ 17 $ 31 $ 29
Costs associated with initial public offering................................................................................ — (44) —
Impairment - investment in available-for-sale security ............................................................... — (6)(9)
(Loss) gain on extinguishment of debt......................................................................................... (1)(16)(8)
Costs associated with MVL acquisition....................................................................................... (13) — —
Other, net...................................................................................................................................... 2 20 22
Other income (expense), net................................................................................................. $ 5 $ (15) $ 34
During the year ended December 31, 2012, Delphi incurred approximately $13 million in transaction costs related to the
acquisition of MVL that was completed in October 2012.
During the year ended December 31, 2011, Delphi incurred approximately $44 million in transaction costs related to our
initial public offering completed in November 2011. As further discussed in Note 11. Debt, during the year ended December 31,
2011, Delphi paid $47 million and $177 million of the Tranche A Term Loan and Tranche B Term Loan, respectively and paid
$57 million to extinguish the Notes and recognized a loss on extinguishment of debt of $16 million during the year ended
December 31, 2011.
During the year ended December 31, 2010, Delphi repaid $12 million of interest-free government-backed debt due in
2021 which required compensating cash collateral. The debt was previously adjusted to a $4 million fair value as a result of
acquisition accounting and therefore Delphi recognized an $8 million loss on early extinguishment of debt. Other, net primarily
includes insurance and other recoveries and income from royalties.