Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

The following selected consolidated financial data were derived from our audited consolidated financial statements and should be read in conjunction with, and are qualified by reference to, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included elsewhere in this Annual Report. The financial information presented may not be indicative of our future performance.

The assets and liabilities and operating results for the previously reported Thermal Systems segment have been reclassified as discontinued operations separate from the Company’s continuing operations for all periods presented. For further information regarding discontinued operations, see Note 25. Discontinued Operations to the audited consolidated financial statements included herein.



	Year Ended December 31,
	2016			2015 (1)			2014			2013			2012 (2)
	(dollars and shares in millions, except per share data)
Statements of operations data:
Net sales	$	16,661		$	15,165		$	15,499		$	15,051		$	14,070
Depreciation and amortization (3)	704			540			540			499			445
Operating income	1,947			1,723			1,758			1,627			1,390
Interest expense	(156		)	(127		)	(135		)	(143		)	(136		)
Income from continuing operations	1,218			1,261			1,380			1,241			1,095
Income from discontinued operations, net of tax	108			274			60			60			65
Net income	1,326			1,535			1,440			1,301			1,160
Net income attributable to noncontrolling interest	69			85			89			89			83
Net income attributable to Delphi	1,257			1,450			1,351			1,212			1,077

Net income per share data:
Basic net income per share:
Continuing operations	$	4.22		$	4.16		$	4.36		$	3.76		$	3.19
Discontinued operations	0.38			0.92			0.14			0.14			0.15
Basic net income per share attributable to Delphi	$	4.60		$	5.08		$	4.50		$	3.90		$	3.34
Diluted net income per share:
Continuing operations	$	4.21		$	4.14		$	4.34		$	3.75		$	3.18
Discontinued operations	0.38			0.92			0.14			0.14			0.15
Diluted net income per share attributable to Delphi	$	4.59		$	5.06		$	4.48		$	3.89		$	3.33
Weighted average shares outstanding	273			285			300			311			323
Cash dividends declared and paid	$	1.16		$	1.00		$	1.00		$	0.68		$	—

Other financial data:
Capital expenditures	$	828		$	704		$	779		$	605		$	642
Adjusted operating income (4)	2,223			1,971			1,925			1,779			1,577
Adjusted operating income margin (5)	13.3		%	13.0		%	12.4		%	11.8		%	11.2		%
Net cash provided by operating activities (6)	$	1,941		$	1,703		$	2,135		$	1,750		$	1,478
Net cash used in investing activities (6)	(578		)	(1,699		)	(1,186		)	(655		)	(1,631		)
Net cash used in financing activities (6)	(1,081		)	(284		)	(1,398		)	(822		)	(105		)



	As of December 31,
	2016		2015		2014		2013		2012
	(in millions, except employee data)
Balance sheet and employment data:
Cash and cash equivalents	$	838	$	535	$	859	$	1,337	$	1,019
Total assets (7)	$	12,292	$	11,973	$	10,721	$	11,016	$	10,126
Total debt (7)	$	3,971	$	4,008	$	2,426	$	2,381	$	2,414
Working capital, as defined (8)	$	1,607	$	1,390	$	1,135	$	1,152	$	1,213
Shareholders’ equity	$	2,763	$	2,733	$	3,013	$	3,434	$	2,830
Global employees (9)	145,000		139,000		127,000		117,000		118,000



(1)	On December 18, 2015, we completed the acquisition of HellermannTyton Group PLC, a leading global manufacturer of high-performance and innovative cable management solutions. Given the timing of the acquisition it is not fully reflected in our 2015 results and impacts comparability to 2016 results.
(2)	On October 26, 2012, we completed the acquisition of the Motorized Vehicles Division of FCI (“MVL”), 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.
(3)	Includes long-lived asset and goodwill impairments.
(4)	Adjusted Operating Income represents 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 is presented as a supplemental measure of the Company's financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which may obscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecasting purposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes this measure is most reflective of the operational profitability or loss of our 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,
	2016			2015			2014			2013			2012
	(in millions)
Adjusted operating income	$	2,223		$	1,971		$	1,925		$	1,779		$	1,577
Restructuring	(328		)	(177		)	(140		)	(137		)	(163		)
Other acquisition and portfolio project costs	(59		)	(47		)	(20		)	(15		)	(9		)
Asset impairments	(30		)	(16		)	(7		)	—			(15		)
Gain (loss) on business divestitures, net	141			(8		)	—			—			—
Operating income	$	1,947		$	1,723		$	1,758		$	1,627		$	1,390
Interest expense	$	(156	)	$	(127	)	$	(135	)	$	(143	)	$	(136	)
Other (expense) income, net	(366		)	(88		)	(8		)	(18		)	5
Income from continuing operations before income taxes and equity income	1,425			1,508			1,615			1,466			1,259
Income tax expense	(242		)	(263		)	(255		)	(240		)	(174		)
Equity income, net of tax	35			16			20			15			10
Income from continuing operations	1,218			1,261			1,380			1,241			1,095
Income from discontinued operations, net of tax	108			274			60			60			65
Net income	1,326			1,535			1,440			1,301			1,160
Net income attributable to noncontrolling interest	69			85			89			89			83
Net income attributable to Delphi	$	1,257		$	1,450		$	1,351		$	1,212		$	1,077



(5)	Adjusted operating income margin is defined as adjusted operating income as a percentage of Net sales.
(6)	Includes amounts attributable to discontinued operations.
(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 in 2015, 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, 2016, we employed approximately 21,000 temporary and contract workers. Periods prior to December 31, 2015 include employees of discontinued operations.

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