DELPHI 2014 Annual Report Download - page 77

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Financing activities—Net cash used in financing activities totaled $1,398 million and $822 million for the year ended
December 31, 2014 and 2013, respectively. The increase in net cash used in financing activities during the year ended
December 31, 2014 is primarily due to the use of an incremental $567 million of cash on hand in 2014 as compared to 2013 to
repurchase ordinary shares and the increase of $90 million in cash dividends paid on Delphi's ordinary shares. Additionally, the
net proceeds of approximately $691 million received from the issuance of the 2014 Senior Notes were primarily used to redeem
the 5.875% Senior Notes and to repay a portion of the Tranche A Term Loan. In the year ended December 31, 2013, the net
proceeds of approximately $790 million received from the issuance of the 2013 Senior Notes were used in conjunction with the
amendment of the 2012 Credit Agreement to pay off in its entirety the $773 million of the Tranche B Term Loan.
Net cash used in financing activities totaled $105 million for the year ended December 31, 2012, which resulted primarily
from the repurchase of ordinary shares of $403 million, partially offset by proceeds from issuance of senior secured term loans,
net of issuance costs of $358 million.
Off-Balance Sheet Arrangements and Other Matters
We do not engage in any off-balance sheet financial arrangements that have or are reasonably likely to have a material
current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.
Pension Benefits
Certain of our non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based on
negotiated amounts for each year of service. Our 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, we have 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. We anticipate making pension contributions of approximately $81
million for non-U.S. plans in 2015.
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 and was frozen effective September 30, 2008. There are no required contributions
for the SERP in 2014, although we anticipate making benefit payments of approximately $9 million for the SERP in 2015.
Refer to Note 12. Pension Benefits to the audited consolidated financial statements included herein for further
information on (1) historical benefit costs of the pension plans, (2) the principal assumptions used to determine the pension
benefit expense and the actuarial value of the projected benefit obligation for the U.S. and non-U.S. pension plans, (3) a
sensitivity analysis of potential changes to pension obligations and expense that would result from changes in key assumptions
and (4) funding obligations.
Environmental Matters
We are subject to the requirements of U.S. federal, state and local, and non-U.S., environmental and safety and health
laws and regulations. These include laws regulating air emissions, water discharge, hazardous materials and waste
management. We have an environmental management structure designed to facilitate and support our compliance with these
requirements globally. Although it is our intent to comply with all such requirements and regulations, we cannot provide
assurance that we are at all times in compliance. Environmental requirements are complex, change frequently and have tended
to become more stringent over time. Accordingly, we cannot assure that environmental requirements will not change or become
more stringent over time or that our eventual environmental remediation costs and liabilities will not be material.
Certain environmental laws assess liability on current or previous owners or operators of real property for the cost of
removal or remediation of hazardous substances. In addition to clean-up actions brought by U.S. federal, state, local and non-
U.S. agencies, plaintiffs could raise personal injury or other private claims due to the presence of hazardous substances on or
from a property. We are currently in the process of investigating and cleaning up some of our current or former sites. In
addition, there may be soil or groundwater contamination at several of our properties resulting from historical, ongoing or
nearby activities.
As of December 31, 2014 and 2013, the undiscounted reserve for environmental investigation and remediation was
approximately $21 million (of which $3 million was recorded in accrued liabilities and $18 million was recorded in other long-
term liabilities) and $21 million (of which $3 million was recorded in accrued liabilities and $18 million was recorded in other
long-term liabilities). Delphi cannot ensure that environmental requirements will not change or become more stringent over
time or that its eventual environmental remediation costs and liabilities will not exceed the amount of its current reserves. In the
event that such liabilities were to significantly exceed the amounts recorded, Delphi’s results of operations could be materially
affected.