DELPHI 2015 Annual Report Download - page 53

Table of Contents
31
As of December 31,
2015 (6) 2014 2013 2012 2011
(in millions, except employee data)
Balance sheet and employment data:
Cash and cash equivalents ............................................................................. $ 535 $ 859 $ 1,337 $ 1,019 $ 1,299
Total assets (7) ............................................................................................... $ 11,973 $ 10,721 $ 11,016 $ 10,126 $ 9,069
Total debt (7).................................................................................................. $ 4,008 $ 2,426 $ 2,381 $ 2,414 $ 2,044
Working capital, as defined (8)...................................................................... $ 1,390 $ 1,135 $ 1,152 $ 1,213 $ 1,086
Shareholders’ equity....................................................................................... $ 2,733 $ 3,013 $ 3,434 $ 2,830 $ 2,171
Global employees (9)..................................................................................... 139,000 127,000 117,000 118,000 104,000
(1) On October 26, 2012, we completed the acquisition of the Motorized Vehicles Division of FCI (“MVL”). MVL is a leading global manufacturer of
automotive connection systems with a focus on high-value, leading technology applications. Given the timing of the acquisition it is not fully reflected
in our 2012 results and impacts comparability to 2013 results.
(2) Includes long-lived asset and goodwill impairments.
(3) Our management utilizes net income before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, income
(loss) from discontinued operations, net of tax, restructuring, other acquisition and portfolio project costs (which includes costs incurred to integrate
acquired businesses and to plan and execute product portfolio transformation actions, including business and product acquisitions and divestitures),
asset impairments and gains (losses) on business divestitures (“Adjusted Operating Income”) to evaluate performance. Management utilizes Adjusted
Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes, as management believes this
measure is most reflective of the operational profitability or loss of Delphi's operating segments. Adjusted Operating Income should not be considered a
substitute for results prepared in accordance with U.S. GAAP and should not be considered an alternative to net income attributable to Delphi, which is
the most directly comparable financial measure to Adjusted Operating Income that is in accordance with U.S. GAAP. Adjusted Operating Income, as
determined and measured by Delphi, should also not be compared to similarly titled measures reported by other companies.
The reconciliation of Adjusted Operating Income to Operating Income includes restructuring, other acquisition and portfolio project costs (which
includes costs incurred to integrate acquired businesses and to plan and execute product portfolio transformation actions, including business and product
acquisitions and divestitures), asset impairments and gains (losses) on business divestitures. The reconciliation of Adjusted Operating Income to net
income (loss) attributable to the Company is as follows:
Year Ended December 31,
2015 2014 2013 2012 2011
(in millions)
Adjusted operating income ................................................................... $ 1,971 $ 1,925 $ 1,779 $ 1,577 $ 1,532
Restructuring......................................................................................... (177) (140) (137) (163) (30)
Other acquisition and portfolio project costs........................................ (47) (20) (15) (9) —
Asset impairments................................................................................. (16) (7) — (15) (13)
Gain (loss) on business divestitures, net............................................... (8) — — — —
Operating income.................................................................................. $ 1,723 $ 1,758 $ 1,627 $ 1,390 $ 1,489
Interest expense..................................................................................... $ (127) $ (135) $ (143) $ (136) $ (123)
Other (expense) income, net ................................................................. (88) (8) (18) 5 (15)
Income from continuing operations before income taxes and equity
income................................................................................................... 1,508 1,615 1,466 1,259 1,351
Income tax expense............................................................................... (263) (255) (240) (174) (275)
Equity income, net of tax...................................................................... 16 20 15 10 20
Income from continuing operations...................................................... 1,261 1,380 1,241 1,095 1,096
Income from discontinued operations, net of tax.................................. 274 60 60 65 127
Net income............................................................................................ 1,535 1,440 1,301 1,160 1,223
Net income attributable to noncontrolling interest ............................... 85 89 89 83 78
Net income attributable to Delphi......................................................... $ 1,450 $ 1,351 $ 1,212 $ 1,077 $ 1,145
(4) Adjusted operating income margin is defined as adjusted operating income as a percentage of revenues.
(5) Includes amounts attributable to discontinued operations.
(6) On December 18, 2015, we completed the acquisition of HellermannTyton Group PLC, a leading global manufacturer of high-performance and
innovative cable management solutions, impacting comparability of our 2015 and 2014 results.
(7) Prior year amounts have been recast to reflect the adoption of ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the
Presentation of Debt Issuance Costs, as further described in Note 2. Significant Accounting Policies to the audited consolidated financial statements
included herein.
(8) Working capital is calculated herein as accounts receivable plus inventories less accounts payable.
(9) Excludes temporary and contract workers. As of December 31, 2015, we employed approximately 34,000 temporary and contract workers. Prior periods
include employees of discontinued operations.