DELPHI 2014 Annual Report Download - page 107

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5.875% Senior Notes and to repay a portion of the Tranche A Term Loan. Delphi paid approximately $6 million of issuance
costs in connection with the 2014 Senior Notes. Interest is payable semi-annually on March 15 and September 15 of each year
to holders of record at the close of business on March 1 or September 1 immediately preceding the interest payment date.
Although the specific terms of each indenture governing each series of senior notes vary, the indentures contain certain
restrictive covenants, including with respect to Delphi’s (and Delphi’s subsidiaries) ability to incur liens, enter into sale and
leaseback transactions and merge with or into other entities. As of December 31, 2014, the Company was in compliance with
the provisions of all series of the outstanding senior notes.
All series of senior notes are fully and unconditionally guaranteed, jointly and severally, by Delphi Automotive PLC and
by certain of Delphi Corporation's direct and indirect parent companies, subject to customary release provisions (other than in
the case of Delphi Automotive PLC). Prior to the first quarter of 2014, certain of Delphi Corporation's direct and indirect
subsidiaries, which were directly or indirectly 100% owned by Delphi Automotive PLC, fully and unconditionally guaranteed
all series of senior notes then outstanding; however, all Delphi Corporation subsidiary guarantees were released during the first
quarter of 2014 because such guarantors no longer guaranteed the Credit Agreement.
Other Financing
Receivable factoring—Various accounts receivable factoring facilities are maintained in Europe and are accounted for as
short-term debt. These uncommitted factoring facilities are available through various financial institutions. In 2013 Delphi
entered into a new accounts receivable factoring agreement in Europe to replace and consolidate current European factoring
facilities. The new agreement is a €350 million committed facility with borrowings under the new program being subject to the
availability of eligible accounts receivable. As of December 31, 2014 and December 31, 2013, $0 million and $1 million,
respectively, were outstanding under these accounts receivable factoring facilities. Collateral is not generally required related to
these trade accounts receivable. In addition, during the year ended December 31, 2014, one of the Company’s European
subsidiaries factored, without recourse, receivables related to certain foreign research tax credits to a financial institution. This
transaction was accounted for as a true sale of the receivables, and the Company therefore derecognized approximately $73
million from Other current assets in the consolidated balance sheet as of December 31, 2014. Expenses of approximately $2
million incurred in conjunction with this transaction were recorded to Interest expense during the year ended December 31,
2014.
Capital leases and other—As of December 31, 2014 and December 31, 2013, approximately $53 million and
approximately $47 million, respectively, of other debt issued by certain non-U.S. subsidiaries and capital lease obligations were
outstanding.
Interest—Cash paid for interest related to amounts outstanding totaled $119 million, $118 million and $119 million for
the years ended December 31, 2014, 2013 and 2012, respectively.
12. PENSION BENEFITS
Certain of Delphi’s non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based
on negotiated amounts for each year of service. Delphi’s primary non-U.S. plans are located in France, Germany, Mexico,
Portugal and the United Kingdom (“U.K.”). The U.K. and certain Mexican plans are funded. In addition, Delphi has defined
benefit plans in South Korea, Turkey and Italy for which amounts are payable to employees immediately upon separation. The
obligations for these plans are recorded over the requisite service period.
Delphi sponsors a Supplemental Executive Retirement Program (“SERP”) for those employees who were U.S. executives
of DPHH prior to September 30, 2008 and were still U.S. executives of Delphi on October 7, 2009, the effective date of the
program. This program is unfunded. Executives receive benefits over 5 years after an involuntary or voluntary separation from
Delphi. The SERP is closed to new members.