DELPHI 2015 Annual Report Download - page 27

Table of Contents
5
Our Company
We believe the automotive industry is being shaped by increasing government regulations for vehicle safety, fuel
efficiency and emissions control, as well as rapidly increasing consumer demand for connectivity. These industry mega-trends,
which we refer to as “Safe,” “Green” and “Connected,” are driving higher growth in products that address these trends than
growth in the automotive industry overall. We have organized our business into three diversified segments, which enable us to
develop solutions and manufacture highly-engineered products that enable our customers to respond to these mega-trends:
• Electrical/Electronic Architecture—This segment provides complete design of the vehicle’s electrical architecture,
including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety
distribution systems. Our products provide the critical electrical and electronics backbone that supports increased
vehicle content and electrification, reduced emissions and higher fuel economy through weight savings.
• Powertrain Systems—This segment provides systems integration of full end-to-end gasoline and diesel engine
management systems including fuel handling, fuel injection, combustion, electronic controls, test and validation
capabilities, aftermarket, and original equipment services. We design solutions to optimize powertrain power and
performance while helping our customers meet new emissions and fuel economy regulations.
• Electronics and Safety—This segment provides critical components, systems and advanced software for passenger
safety, security, comfort and infotainment, as well as vehicle operation, including body controls, infotainment and
connectivity systems, hybrid vehicle power electronics, passive and active safety electronics, displays and
mechatronics. Our products integrate and optimize electronic content, which improves fuel economy, reduces
emissions, increases safety and provides occupant infotainment and connectivity.
We previously reported the results of our former Thermal Systems business as a segment. The Thermal Systems business
provided powertrain cooling and heating, ventilating and air conditioning (“HVAC”) systems, such as compressors, systems
and controls, and heat exchangers for vehicle markets. As part of our strategy to focus on a high-growth product portfolio, and
as further described in Note 25. Discontinued Operations to the audited consolidated financial statements herein, we completed
the sale of the wholly owned Thermal Systems business to MAHLE GmbH ("MAHLE") on June 30, 2015. The assets and
liabilities, operating results and operating and investing cash flows for the previously reported Thermal Systems segment are
presented as discontinued operations separate from the Company’s continuing operations for all periods presented. Our
description and discussion of financial amounts within this Item 1. Business reflect the results of continuing operations, unless
otherwise noted.
Financial Information about Business Segments
We operate our core business along three operating segments, which are grouped on the basis of similar product, market
and operating factors.
Net Sales by Segment
Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013
Net Sales % of Total Net Sales % of Total Net Sales % of Total
(in millions, excluding percentages)
Electrical/Electronic Architecture ........................ $ 8,180 54 % $ 8,274 53 % $ 7,972 53 %
Powertrain Systems .............................................. 4,377 29 % 4,535 29 % 4,392 29 %
Electronics and Safety .......................................... 2,774 18 % 2,885 19 % 2,878 19 %
Eliminations and Other......................................... (166) (1)% (195) (1)% (191) (1)%
Total................................................................... $ 15,165 $ 15,499 $ 15,051
Refer to Results of Operations by Segment in Item 7. Management’s Discussion and Analysis and Note 23. Segment
Reporting of the notes to the consolidated financial statements, included in Item 8. Financial Statements and Supplementary
Data of this Annual Report for further financial information about business segments.
Our business is diversified across end-markets, regions, customers, vehicle platforms and products. Our customer base
includes all 25 of the largest automotive OEMs in the world, and in 2015, 25% of our net sales came from the Asia Pacific
region, which we have identified as a key market likely to experience substantial long-term growth. Our ten largest platforms in
2015 were with five different OEMs. In addition, in 2015 our products were found in 18 of the 20 top-selling vehicle models in
the United States, in 19 of the 20 top-selling vehicle models in Europe and in 18 of the 20 top-selling vehicle models in China.
We have diversified our business into the commercial vehicle market, which is typically on a different business cycle than the
light vehicle market. In addition, approximately 6% of our 2015 net sales were to the aftermarket, which meets the ongoing
need for replacement parts required for vehicle servicing.