DELPHI 2014 Annual Report Download - page 76

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Capital Expenditures
Supplier selection in the auto industry is generally finalized several years prior to the start of production of the vehicle.
Therefore, current capital expenditures are based on customer commitments entered into previously, generally several years ago
when the customer contract was awarded. As of December 31, 2014, we had approximately $224 million in outstanding
cancellable and non-cancellable capital commitments. Capital expenditures by operating segment and geographic region for the
periods presented were:
Year Ended December 31,
2014 2013 2012
(in millions)
Electrical/Electronic Architecture................................................................... $ 326 $ 293 $ 238
Powertrain Systems......................................................................................... 315 224 304
Electronics and Safety..................................................................................... 89 64 66
Thermal Systems............................................................................................. 76 77 63
Eliminations and Other ................................................................................... 49 24 34
Total capital expenditures............................................................................. $ 855 $ 682 $ 705
North America................................................................................................. $ 237 $ 199 $ 210
Europe, Middle East & Africa......................................................................... 320 281 308
Asia Pacific ..................................................................................................... 269 174 155
South America................................................................................................. 29 28 32
Total capital expenditures............................................................................. $ 855 $ 682 $ 705
Cash Flows
Intra-month cash flow cycles vary by region, but in general we are users of cash through the first half of a typical month
and we generate cash during the latter half of a typical month. Due to this cycle of cash flows, we may utilize short-term
financing, including our Revolving Credit Facility and European accounts receivable factoring facility, to manage our intra-
month working capital needs. Our cash balance typically peaks at month end.
We utilize a combination of strategies, including dividends, cash pooling arrangements, intercompany loan structures and
other distributions and advances to provide the funds necessary to meet our global liquidity needs. We have established a global
cash pooling arrangement to consolidate and manage our global cash balances, which has also increased our ability to
efficiently move cash into and out of a number of the countries in which we operate, including China as a result of recent
financial deregulation in the Shanghai Pilot Free Trade Zone.
Operating activities—Net cash provided by operating activities totaled $2,135 million and $1,750 million for the year
ended December 31, 2014 and 2013, respectively. The $385 million increase primarily reflects increased earnings during 2014.
Cash flow from operating activities for the year ended December 31, 2014 consisted primarily of net earnings of $1,440 million
increased by $710 million for non-cash charges for depreciation and amortization, pension and other postretirement benefit
expenses and extinguishment of debt, partially offset by $87 million related to changes in operating assets and liabilities, net of
restructuring and pension contributions. Cash flow from operating activities for the year ended December 31, 2013 consisted
primarily of net earnings of $1,301 million increased by $661 million for non-cash charges for depreciation and amortization,
pension and other postretirement benefit expenses and extinguishment of debt, partially offset by $200 million related to
changes in operating assets and liabilities, net of restructuring and pension contributions.
Net cash provided by operating activities totaled $1,478 million for the year ended December 31, 2012, which consisted
of net earnings of $1,160 million increased by $554 million for non-cash charges for depreciation and amortization, pension
and other postretirement benefit expenses and extinguishment of debt, partially offset by $207 million related to changes in
operating assets and liabilities, net of restructuring and pension contributions.
Investing activities—Net cash used in investing activities totaled $1,186 million and $655 million for the year ended
December 31, 2014 and 2013, respectively. The increase is primarily attributable to the cost of the 2014 acquisitions of
Unwired and Antaya, as well as $173 million of increased capital expenditures.
Net cash used in investing activities totaled $1,631 million for the year ended December 31, 2012 which resulted
primarily from capital expenditures of $705 million and cost of business and technology acquisitions, net of cash acquired of
$980 million, primarily related to the 2012 MVL acquisition.