DELPHI 2015 Annual Report Download - page 137

Table of Contents
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impairment charges of $5 million in cost of sales and $2 million in selling, general and administrative expense related to
declines in the fair values of certain fixed assets and for capitalized software no longer being utilized. No significant
impairment charges were recorded during the year ended December 31, 2013. Fair value of long-lived assets is determined
primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved and a review of appraisals.
As such, Delphi has determined that the fair value measurements of long-lived assets fall in Level 3 of the fair value hierarchy.
Additionally, as further described in Note 25. Discontinued Operations, an after-tax impairment loss of approximately
$88 million was recorded in income from discontinued operations in the first quarter of 2015 based on the evaluation and
estimate of the fair value of the Company's interest in KDAC of approximately $32 million, which was determined primarily
based on negotiations with a third party and on a non-binding offer from that potential buyer at the time, in relation to the
carrying value of this interest. Subsequently, in September 2015 the Company closed the sale of this interest for net cash
proceeds of $70 million. As a result, for the year ended December 31, 2015, the Company recorded a net loss of $41 million on
the KDAC divestiture within income from discontinued operations, which includes the $88 million impairment loss recorded in
the first quarter of 2015.
19. OTHER INCOME, NET
Other income, net included:
Year Ended December 31,
2015 2014 2013
(in millions)
Interest income................................................................................................ $ 5 $ 10 $ 14
Loss on extinguishment of debt ...................................................................... (58)(34)(39)
Costs associated with acquisitions .................................................................. (41)(6) —
Gain on insurance recovery............................................................................. — 14 —
Contingent consideration liability fair value adjustment ................................ 7——
Other, net......................................................................................................... (1) 8 7
Other (expense) income, net....................................................................... $(88) $ (8) $ (18)
During the year ended December 31, 2015, as further discussed in Note 11. Debt, Delphi redeemed for cash the entire
aggregate principal amount outstanding of the 6.125% Senior Notes and, as further discussed in Note 20. Acquisitions and
Divestitures, cancelled the Senior Bridge Credit Agreement, resulting in losses on extinguishment of debt of approximately $52
million and $6 million, respectively. During the year ended December 31, 2015, Delphi incurred approximately $23 million in
transaction costs related to the acquisition of HellermannTyton and, as further discussed in Note 17. Derivatives and Hedging
Activities, recorded a loss of $15 million on option contracts entered into in order to hedge portions of the currency risk
associated with the acquisition of HellermannTyton, which are reflected within costs associated with acquisitions in the above
table. Also, as further discussed in Note 21. Discontinued Operations, during the year ended December 31, 2015, Delphi
recorded $8 million for certain fees earned pursuant to the transition services agreement in connection with the sale of the
Company's wholly owned Thermal Systems business.
During the year ended December 31, 2014, Delphi redeemed for cash the entire aggregate principal amount outstanding
of the 5.875% Senior Notes and repaid a portion of its indebtedness on the Tranche A Term Loan, resulting in a loss on
extinguishment of debt of approximately $34 million. Additionally, during the year ended December 31, 2014, Delphi incurred
approximately $6 million in transaction costs related to its 2014 acquisitions, which are further discussed in Note 20.
Acquisitions and Divestitures. Delphi also reached a final settlement with its insurance carrier related to a business interruption
insurance claim, and received proceeds from this settlement of approximately $14 million, net of related costs and expenses.
During the year ended December 31, 2013, Delphi amended its Credit Agreement and repaid the entire balance of the
Tranche B Term Loan from the Original Credit Agreement, resulting in a loss on extinguishment of debt of approximately $39
million.