DELPHI 2015 Annual Report Download - page 81

Table of Contents
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Operating activities—Net cash provided by operating activities from continuing operations totaled $1,667 million and
$2,045 million for the year ended December 31, 2015 and 2014, respectively. The $378 million decrease primarily reflects
decreased earnings and increased working capital usage in 2015. Cash flow from operating activities from continuing
operations for the year ended December 31, 2015 consisted primarily of net earnings from continuing operations of $1,261
million, increased by $673 million for non-cash charges for depreciation and amortization, pension and other postretirement
benefit expenses and extinguishment of debt, partially offset by $336 million related to changes in operating assets and
liabilities, net of restructuring and pension contributions. Cash flow from operating activities from continuing operations for the
year ended December 31, 2014 consisted primarily of net earnings from continuing operations of $1,380 million, increased by
$662 million for non-cash charges for depreciation and amortization, pension and other postretirement benefit expenses and
extinguishment of debt, partially offset by $54 million related to changes in operating assets and liabilities, net of restructuring
and pension contributions.
Net cash provided by operating activities from continuing operations totaled $1,656 million for the year ended
December 31, 2013, which consisted of net earnings from continuing operations of $1,241 million, increased by $618 million
for non-cash charges for depreciation and amortization, pension and other postretirement benefit expenses and extinguishment
of debt, partially offset by $208 million related to changes in operating assets and liabilities, net of restructuring and pension
contributions.
Investing activities—Net cash used in investing activities from continuing operations totaled $1,630 million and $1,112
million for the year ended December 31, 2015 and 2014, respectively. The increase is primarily attributable to $1,654 million
paid for business acquisitions in 2015, principally HellermannTyton, partially offset by the net proceeds of $730 million
received from the sales of our wholly owned Thermal Systems business and KDAC joint venture and reduced capital
expenditures.
Net cash used in investing activities from continuing operations totaled $577 million for the year ended December 31,
2013 which resulted primarily from capital expenditures of $605 million, partially offset by proceeds from the sale of property /
investments of $33 million.
Financing activities—Net cash used in financing activities totaled $284 million and $1,398 million for the years ended
December 31, 2015 and 2014, respectively. The decrease in net cash used in financing activities is primarily attributable to the
net proceeds of $1.3 billion received from the issuance of the 2015 Senior Notes in order to fund a portion of the acquisition of
HellermannTyton, and net proceeds of $753 million received from the issuance of the 2015 Euro-denominated Senior Notes,
which were partially utilized to redeem the 6.125% Senior Notes. In the year ended December 31, 2014, the net proceeds of
approximately $691 million received from the issuance of the 2014 Senior Notes were primarily used to redeem the 5.875%
Senior Notes and to repay a portion of the Tranche A Term Loan. Additionally, an incremental $135 million of cash on hand
was used in 2015 to repurchase ordinary shares as compared to 2014.
Net cash used in financing activities totaled $822 million for the year ended December 31, 2013, which resulted primarily
from the repurchase of ordinary shares of $457 million, the payment of cash dividends on Delphi's ordinary shares of $211
million and the receipt of net proceeds of approximately $790 million received from the issuance of the 2013 Senior Notes,
which were used in conjunction with the amendment of the 2012 Credit Agreement to pay off in its entirety the $773 million of
the Tranche B Term Loan.
Off-Balance Sheet Arrangements and Other Matters
We do not engage in any off-balance sheet financial arrangements that have or are reasonably likely to have a material
current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources.
Pension Benefits
Certain of our non-U.S. subsidiaries sponsor defined benefit pension plans, which generally provide benefits based on
negotiated amounts for each year of service. Our primary non-U.S. plans are located in France, Germany, Mexico, Portugal and
the United Kingdom ("U.K."). The U.K. and certain Mexican plans are funded. In addition, we have defined benefit plans in
South Korea, Turkey and Italy for which amounts are payable to employees immediately upon separation. The obligations for
these plans are recorded over the requisite service period. We anticipate making pension contributions and benefit payments of
approximately $77 million for non-U.S. plans in 2016.
Delphi sponsors a Supplemental Executive Retirement Program (“SERP”) for those employees who were U.S. executives
of DPHH prior to September 30, 2008 and were still U.S. executives of Delphi on October 7, 2009, the effective date of the
program. This program is unfunded. Executives receive benefits over 5 years after an involuntary or voluntary separation from
Delphi. The SERP is closed to new members and was frozen effective September 30, 2008. There are no required contributions
for the SERP in 2015, although we anticipate making benefit payments of approximately $12 million for the SERP in 2016.