DELPHI 2015 Annual Report Download - page 43

Table of Contents
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have a material adverse effect on our financial condition or results of operations, or cause significant fluctuations in quarterly
and annual results of operations.
We face risks associated with doing business in non-U.S. jurisdictions.
The majority of our manufacturing and distribution facilities are in countries outside of the U.S., including Mexico, China
and other countries in Asia Pacific, Eastern and Western Europe, South America and Northern Africa. We also purchase raw
materials and other supplies from many different countries around the world. For the year ended December 31, 2015,
approximately 63% of our net revenue came from sales outside the United States. International operations are subject to certain
risks inherent in doing business abroad, including:
• exposure to local economic, political and labor conditions;
• unexpected changes in laws, regulations, trade or monetary or fiscal policy, including interest rates, foreign currency
exchange rates and changes in the rate of inflation in the U.S. and other foreign countries;
• tariffs, quotas, customs and other import or export restrictions and other trade barriers;
• expropriation and nationalization;
• difficulty of enforcing agreements, collecting receivables and protecting assets through non-U.S. legal systems;
• reduced intellectual property protection;
• limitations on repatriation of earnings;
• withholding and other taxes on remittances and other payments by subsidiaries;
• investment restrictions or requirements;
• export and import restrictions;
• violence and civil unrest in local countries; and
• compliance with the requirements of an increasing body of applicable anti-bribery laws, including the U.S. Foreign
Corrupt Practices Act, the U.K. Bribery Act and similar laws of various other countries.
Additionally, our global operations may also be adversely affected by political events, domestic or international terrorist
events and hostilities or complications due to natural or nuclear disasters. These uncertainties could have a material adverse
effect on the continuity of our business and our results of operations and financial condition.
Increasing our manufacturing footprint in Asian markets, including China, and our business relationships with Asian
automotive manufacturers are important elements of our long term strategy. In addition, our strategy includes increasing
revenue and expanding our manufacturing footprint in lower-cost regions. As a result, our exposure to the risks described above
may be greater in the future. The likelihood of such occurrences and their potential impact on us vary from country to country
and are unpredictable.
If we fail to manage our growth effectively or to integrate successfully any new or future business ventures,
acquisitions, or strategic alliance into our business, our business could be materially adversely harmed.
We expect to pursue business ventures, acquisitions, and strategic alliances that leverage our technology capabilities,
enhance our customer base, geographic penetration and scale to complement our current businesses and we regularly evaluate
potential opportunities, some of which could be material. While we believe that such transactions are an integral part of our
long-term strategy, there are risks and uncertainties related to these activities. Assessing a potential growth opportunity involves
extensive due diligence. However, the amount of information we can obtain about a potential growth opportunity may be
limited, and we can give no assurance that new business ventures, acquisitions, and strategic alliances will positively affect our
financial performance or will perform as planned. We may not be able to successfully assimilate or integrate companies that we
acquire, including their personnel, financial systems, distribution, operations and general operating procedures. We may also
encounter challenges in achieving appropriate internal control over financial reporting in connection with the integration of an
acquired company. If we fail to assimilate or integrate acquired companies successfully, our business, reputation and operating
results could be materially impacted. Likewise, our failure to integrate and manage acquired companies successfully may lead
to future impairment of any associated goodwill and intangible asset balances.
We depend on information technology to conduct our business. Any significant disruption could impact our business.
Our ability to keep our business operating effectively depends on the functional and efficient operation of information
technology and telecommunications systems. We rely on these systems to make a variety of day-to-day business decisions as
well as to track transactions, billings, payments and inventory. Our systems, as well as those of our customers, suppliers,
partners, and service providers, are susceptible to interruptions (including those caused by systems failures, cyber attack,
malicious computer software (malware), and other natural or man-made incidents or disasters), which may be prolonged. We