DELPHI 2015 Annual Report Download - page 127

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Table of Contents
105
dividends we pay to non-U.S. shareholders could also be subject to U.S. federal income tax withholding at a rate of 30%
(unless reduced or eliminated by an income tax treaty), and it is possible that tax may be withheld on such dividends in certain
circumstances even before a final determination has been made with respect to the Company's U.S. income tax status. In
addition, we could be liable for the failure by Delphi Automotive LLP to withhold U.S. federal income taxes on distributions to
its non-U.S. members for periods beginning on or after the Acquisition Date. If we are unsuccessful in contesting the IRS’s
assertion, we expect any unfavorable final outcome to adversely impact our tax position by increasing our long-term effective
tax rate to approximately 20% to 22%. For the year ended December 31, 2015, our effective tax rate was 17%. Although the
outcome currently remains uncertain, the Company continues to maintain its position that neither Delphi Automotive LLP nor
Delphi Automotive PLC should be treated as a domestic corporation for U.S. tax purposes. Accordingly, no adjustment for this
matter has been recorded as of December 31, 2015.
15. SHAREHOLDERS’ EQUITY AND NET INCOME PER SHARE
Net Income Per Share
Basic net income per share is computed by dividing net income attributable to Delphi by the weighted average number of
ordinary shares outstanding during the period. Diluted net income per share reflects the weighted average dilutive impact of all
potentially dilutive securities from the date of issuance and is computed using the treasury stock method by dividing net income
attributable to Delphi by the diluted weighted average number of ordinary shares outstanding. For all periods presented, the
calculation of net income per share contemplates the dilutive impacts, if any, of the Company’s share-based compensation
plans. Refer to Note 21. Share-Based Compensation for additional information.
Weighted Average Shares
The following table illustrates net income per share attributable to Delphi and the weighted average shares outstanding
used in calculating basic and diluted income per share:
Year Ended December 31,
2015 2014 2013
(in millions, except per share data)
Numerator:
Income from continuing operations ................................................................. $ 1,188 $ 1,309 $ 1,170
Income from discontinued operations .............................................................. 262 42 42
Net income attributable to Delphi .................................................................... $ 1,450 $ 1,351 $ 1,212
Denominator:
Weighted average ordinary shares outstanding, basic...................................... 285.20 300.27 310.82
Dilutive shares related to RSUs ....................................................................... 1.44 1.62 0.98
Weighted average ordinary shares outstanding, including dilutive shares....... 286.64 301.89 311.80
Basic net income per share:
Continuing operations ...................................................................................... $ 4.16 $ 4.36 $ 3.76
Discontinued operations................................................................................... 0.92 0.14 0.14
Basic net income per share attributable to Delphi............................................ $ 5.08 $ 4.50 $ 3.90
Diluted net income per share:
Continuing operations ...................................................................................... $ 4.14 $ 4.34 $ 3.75
Discontinued operations................................................................................... 0.92 0.14 0.14
Diluted net income per share attributable to Delphi ........................................ $ 5.06 $ 4.48 $ 3.89
Anti-dilutive securities share impact..................................................................... ———
Share Repurchase Program
In January 2015, the Board of Directors authorized a share repurchase program of up to $1.5 billion of ordinary shares,
which commenced in March 2015 following the completion of the Company's $1 billion January 2014 share repurchase
program. This share repurchase program provides for share repurchases in the open market or in privately negotiated
transactions, depending on share price, market conditions and other factors, as determined by the Company.