v2.4.0.6
Segment Reporting
 3 Months Ended
Mar. 31, 2012
Segment Reporting [Abstract]  
Segment Reporting

18. SEGMENT REPORTING

Delphi operates its core business along the following operating segments, which are grouped on the basis of similar product, market and operating factors:

 

  •  

Electrical/Electronic Architecture, which includes complete electrical architecture and component products.

 

  •  

Powertrain Systems, which includes extensive systems integration expertise in gasoline, diesel and fuel handling and full end-to-end systems including fuel and air injection, combustion, electronics controls, exhaust handling, test and validation capabilities, diesel and automotive aftermarket, and original equipment service.

 

  •  

Electronics and Safety, which includes component and systems integration expertise in infotainment and connectivity, body controls and security systems, displays, mechatronics, passive and active safety electronics and electric and hybrid electric vehicle power electronics, as well as advanced development of software.

 

  •  

Thermal Systems, which includes heating, ventilating and air conditioning ("HVAC") systems, components for multiple transportation and other adjacent markets, and powertrain cooling and related technologies.

 

  •  

Eliminations and Other, which includes i) the elimination of inter-segment transactions, and ii) certain other expenses and income of a non-operating or strategic nature.

The accounting policies of the segments are the same as those described in Note 2. Significant Accounting Policies, except that the disaggregated financial results for the segments have been prepared using a management approach, which is consistent with the basis and manner in which management internally disaggregates financial information for the purposes of assisting internal operating decisions. The Company's management utilizes net income before depreciation and amortization (including long-lived asset and goodwill impairment), interest expense, other income (expense), net, income tax expense and equity income, net of tax ("EBITDA") as a key performance measure. Segment EBITDA 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 EBITDA that is in accordance with U.S. GAAP. Segment EBITDA, as determined and measured by Delphi, should also not be compared to similarly titled measures reported by other companies.

Included below are sales and operating data for Delphi's segments for the three months ended March 31, 2012 and 2011.

 

                                                 
    Electrical/
Electronic
Architecture 		    Powertrain
Systems		     Electronics
and Safety		     Thermal
Systems		     Eliminations
and Other (1)		     Total  
    (in millions)  

For the Three Months Ended March 31, 2012:

                                                

Net sales

   $ 1,696      $ 1,264      $   725      $   407      $     —      $ 4,092   

Inter-segment net sales

     34        —        16        12        (62 )      —   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net sales

   $ 1,730      $ 1,264      $ 741      $ 419      $ (62 )    $ 4,092   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

   $ 247      $ 200      $ 98      $ 33      $     —      $ 578   

Depreciation & Amortization

   $ 36      $ 44      $ 22      $ 12      $     —      $ 114   

Operating income

   $ 211      $ 156      $ 76      $ 21      $     —      $ 464   

Equity income (loss)

   $ 3      $ 1      $     —      $ 1      $ (1 )    $ 4   

Net income attributable to noncontrolling interest

   $ 8      $ 9      $     —      $ 4      $     —      $ 21   

 

                                                 
    Electrical/
Electronic
Architecture 		    Powertrain
Systems		     Electronics
and Safety		     Thermal
Systems		     Eliminations
and Other (1)		     Total  
    (in millions)  

For the Three Months Ended March 31, 2011:

        

Net sales

   $ 1,578      $ 1,236      $   746      $   437      $     —      $ 3,997   

Inter-segment net sales

     35        1        16        12        (64 )      —   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total net sales

   $ 1,613      $ 1,237      $ 762      $ 449      $ (64 )    $ 3,997   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

EBITDA

   $ 240      $ 132      $ 105      $ 52      $     —      $ 529   

Depreciation & Amortization

   $ 32      $ 47      $ 27      $ 11      $     —      $ 117   

Operating income

   $ 208      $ 85      $ 78      $ 41      $     —      $ 412   

Equity income (loss)

   $ 7      $ 1      $ 8      $ 2      $ (1 )    $ 17   

Net income attributable to noncontrolling interest

   $ 8      $ 8      $     —      $ 3      $     —      $ 19   

(1) Eliminations and Other includes the elimination of inter-segment transactions.

The reconciliation of EBITDA to net income attributable to Delphi for the three months ended March 31, 2012 and 2011 are as follows:

 

                                                 
    Electrical/
Electronic
Architecture		     Powertrain
Systems		     Electronics
and Safety		     Thermal
Systems		     Eliminations
and Other		     Total  
    (in millions)  

For the Three Months Ended March 31, 2012:

                                                

EBITDA

   $   247      $   200      $ 98      $ 33      $     —      $ 578   

Depreciation and amortization

     (36 )      (44 )      (22 )      (12 )      —        (114 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

   $ 211      $ 156      $ 76      $ 21      $     —        464   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          

Interest expense

                                             (35 ) 

Other income, net

                                             7   
                                           

 

 

  

Income before income taxes and equity income

                                             436   

Income tax expense

                                             (77 ) 

Equity income, net of tax

                                             4   
                                           

 

 

  

Net income

                                           $ 363   

Net income attributable to noncontrolling interest

                                             21   
                                           

 

 

  

Net income attributable to Delphi

                                           $ 342   
                                           

 

 

  

 

                                                 
    Electrical/
Electronic
Architecture		     Powertrain
Systems		     Electronics
and Safety		     Thermal
Systems		     Eliminations
and Other		     Total  
    (in millions)  

For the Three Months Ended March 31, 2011:

                                                

EBITDA

   $   240      $   132      $ 105      $ 52      $     —      $   529   

Depreciation and amortization

     (32 )      (47 )      (27 )      (11 )      —        (117 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

   $ 208      $ 85      $ 78      $ 41      $     —        412   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

          

Interest expense

                                             (6 ) 

Other income, net

                                             3   
                                           

 

 

  

Income before income taxes and equity income

                                             409   

Income tax expense

                                             (116 ) 

Equity income, net of tax

                                             17   
                                           

 

 

  

Net income

                                           $ 310   

Net income attributable to noncontrolling interest

                                             19   
                                           

 

 

  

Net income attributable to Delphi

                                           $ 291