DELPHI 2012 Annual Report Download - page 95

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73
is legally transferred to satisfy the debt. The guidance is effective for fiscal years beginning after June 15, 2012. The adoption
of this guidance did not have a significant impact on Delphi's financial statements.
The FASB amended ASC 820, “Fair Value Measurements,” with ASU 2011-04, Fair Value Measurement (Topic 820) -
Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This update
provides converged guidance on how to measure fair value, which is largely consistent with existing U.S. GAAP. This update
also requires additional fair value measurement disclosures. The provisions of this update were effective as of January 1, 2012.
The adoption of this guidance did not have a significant impact on Delphi's financial statements.
In July 2012, the FASB issued ASU 2012-02, Testing Indefinite-lived Intangible Assets for Impairment. The revised
standard is intended to simplify impairment testing of indefinite-lived intangible assets by adding an option to qualitatively
assess the asset for impairment. The guidance is effective for interim and annual impairment tests performed for fiscal years
beginning after September 15, 2012. Delphi adopted this guidance for its testing of indefinite-lived intangible assets for
impairment effective October 1, 2012 and it did not have a significant impact on Delphi's financial statements.
Also in December 2011, the FASB issued ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. This
guidance requires entities to disclose both gross and net information about both instruments and transactions eligible for offset
in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting
arrangement. In January 2013, the FASB issued ASU 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and
Liabilities, which clarified that the scope of ASU 2011-11 applies to derivatives and securities borrowing or lending
transactions subject to an agreement similar to a master netting arrangement. The guidance is effective for annual periods
beginning on or after January 1, 2013. Early adoption is not permitted, but this guidance shall be applied retrospectively for any
period presented that begins before the date of initial application. The adoption of this guidance is not expected to have a
significant impact on Delphi's financial statements.
In February 2013, the FASB issued ASU 2013-2, Reporting of Amounts Reclassified Out of Accumulated Other
Comprehensive Income. This guidance requires an organization to present the effects on the line items of net income of
significant amounts reclassified out of accumulated other comprehensive income, but only if the item reclassified is required
under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The guidance is effective for
fiscal years beginning after December 15, 2012. The adoption of this guidance is not expected to have a significant impact on
Delphi's financial statements.
3. INVENTORIES
Inventories are stated at the lower of cost, determined on a first-in, first-out basis, or market, including direct material
costs and direct and indirect manufacturing costs. A summary of inventories is shown below:
December 31,
2012 December 31,
2011
(in millions)
Productive material......................................................................................................................... $ 586 $ 594
Work-in-process.............................................................................................................................. 128 144
Finished goods................................................................................................................................ 352 316
Total......................................................................................................................................... $ 1,066 $ 1,054