The Company’s restructuring activities are undertaken as necessary to execute management’s strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company’s businesses and to relocate operations to best cost locations.

The Company’s restructuring charges consist primarily of employee costs (principally severance and/or termination benefits), and facility closure and exit costs. Restructuring charges, net and asset impairments by segment are as follows:

Three and Nine Months Ended September 30, 2022


	Three Months Ended September 30, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	1	$	(1)	$	2	$	2	$	(1)	$	3





Total restructuring charges, net and asset impairments	$	1	$	(1)	$	2	$	2	$	(1)	$	3


	Nine Months Ended September 30, 2022
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	5	$	4	$	10	$	20	$	2	$	41


Other non-restructuring asset impairments	2		—		—		—		—		2
Impairment of assets held for sale	—		—		—		2		—		2
Total asset impairment charges	2		—		—		2		—		4
Total restructuring charges, net and asset impairments	$	7	$	4	$	10	$	22	$	2	$	45

The Company recognized net charges of $18 million in severance and other charges expected to be paid for cost reduction initiatives aimed at optimizing the Company’s cost structure across all segments and regions during the nine months ended September 30, 2022. The Company also recognized net charges of $3 million and $23 million in severance and other charges related to plant consolidations, relocations, and closures during the three and nine months ended September 30, 2022.

•$1 million and $7 million for the three and nine months ended September 30, 2022, along with a reduction of $1 million in revisions to estimates for the nine months ended September 30, 2022, in connection with cost reduction initiatives, primarily in North America and Europe; and

•$1 million reduction in severance and other charges due to a revision in estimates related to plant consolidations, relocations, and closures for the nine months ended September 30, 2022, primarily in Europe.

•$1 million and $7 million, along with a reduction of $2 million and $4 million in revisions to estimates, for the three and nine months ended September 30, 2022 in connection with cost reduction initiatives in North America and Europe; and

•$2 million and $6 million for the three and nine months ended September 30, 2022 related to plant consolidations, relocations, and closures in North America and Asia Pacific.

•$1 million and $6 million for the three and nine months ended September 30, 2022 related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount. At September 30, 2022, the inception-to-date severance related restructuring charges for this program aggregate to $26 million, $21 million under the current voluntary program and $5 million related to other cost reduction initiatives. Total severance related charges are expected to be approximately $36 million;

•$1 million and $17 million for the three and nine months ended September 30, 2022 related to plant consolidations, relocations, and closures, primarily in Europe; and

•$3 million reduction in severance and other charges due to a revision in estimates for the nine months ended September 30, 2022 in connection with other cost reduction initiatives, primarily in Asia Pacific and Europe.

The Company also incurred $3 million in cash severance costs within its corporate component for the nine months ended September 30, 2022, along with a reduction of $1 million in revisions to estimates for the three and nine months ended September 30, 2022.

During the nine months ended September 30, 2022, the Motorparts segment recognized asset impairment charges of $2 million related to the write-down of property, plant and equipment.


	Three Months Ended September 30, 2021
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	(1)	$	(5)	$	(2)	$	2	$	1	$	(5)


Other non-restructuring asset impairments	1		—		—		—		—		1


Total restructuring charges, net and asset impairments	$	—	$	(5)	$	(2)	$	2	$	1	$	(4)


	Nine Months Ended September 30, 2021
	Motorparts		Performance Solutions		Clean Air		Powertrain		Corporate		Total
Severance and other charges, net	$	6	$	7	$	9	$	20	$	2	$	44

Asset impairments related to restructuring actions	1		—		—		—		—		1
Other non-restructuring asset impairments	1		—		—		—		2		3

Total asset impairment charges	2		—		—		—		2		4
Total restructuring charges, net and asset impairments	$	8	$	7	$	9	$	20	$	4	$	48

The Company recognized a net reduction of $5 million and a net charge of $27 million in severance and other charges expected to be paid for cost reduction initiatives during the three and nine months ended September 30, 2021. The Company also recognized $1 million and $21 million in severance and other charges related to plant consolidations, relocations, and closures during the three and nine months ended September 30, 2021.

In response to the COVID-19 pandemic, and in conjunction with the Company’s previously announced Project Accelerate, the Company executed global headcount reductions. The Company recognized a reduction of $1 million and $4 million in revisions to estimates in connection with cash and severance payments expected to be paid in connection with these actions during the three and nine months ended September 30, 2021.

•$3 million for the nine months ended September 30, 2021 in connection with its supply chain rationalization and distribution network initiative to achieve efficiencies and improve throughput to its customers in North America;

•$1 million for the nine months ended September 30, 2021, along with a reduction of $1 million and $5 million in revisions to estimates, for the three and nine months ended September 30, 2021 in connection with cost reduction initiatives primarily in Europe; and

•$11 million for the nine months ended September 30, 2021, along with a reduction of $4 million revisions to estimates for the three and nine months ended September 30, 2021, in connection with cost reduction initiatives primarily in Europe;

•$1 million reduction in severance and other charges due to revision in estimates for the three and nine months ended September 30, 2021 in connection with Project Accelerate.

•$17 million for the nine months ended September 30, 2021, along with a reduction of $3 million and $9 million in revisions to estimates for the three and nine months ended September 30, 2021, in connection with cost reduction initiatives primarily in Europe;

•$1 million and $4 million for the three and nine months ended September 30, 2021 related to plant consolidations, relocations and closures primarily in North America and Asia Pacific; and

•$3 million reduction in severance and other charges for the nine months ended September 30, 2021 due to a revision in estimates in connection with Project Accelerate.

•$2 million for the three and nine months ended September 30, 2021, along with a reduction of $1 million and $5 million reduction in severance and other charges due to revision in estimates for the three and nine months ended September 30, 2021 in connection with other cost reduction initiatives primarily in Europe;

•$1 million and $5 million restructuring costs incurred for the three and nine months ended September 30, 2021 related to an approved voluntary termination program at one of its European bearings plants aimed at reducing headcount.

During the nine months ended September 30, 2021, as a result of actions in the Motorparts segment, asset impairment charges of $1 million were recognized related to the write-down of property, plant and equipment.

During the three and nine months ended September 30, 2021, the Motorparts segment recognized asset impairment charges of $1 million related to the write-down of property, plant and equipment.

As a result of changes in the business, during the second quarter of 2021, the Company assessed and concluded an impairment trigger had occurred for certain long-lived asset groups in its corporate component and recognized an impairment charge of $2 million related to operating lease right-of-use assets during the nine months ended September 30, 2021.


	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
	Employee Costs		Facility Closure and Other Costs		Total		Employee Costs		Facility Closure and Other Costs		Total
Balance at beginning of period	$	63	$	—	$	63	$	99	$	1	$	100
Provisions	10		1		11		31		3		34
Revisions to estimates	(2)		—		(2)		(9)		—		(9)
Payments	(17)		(1)		(18)		(21)		(4)		(25)
Foreign currency	—		—		—		(1)		—		(1)
Balance at March 31	54		—		54		99		—		99
Provisions	33		1		34		30		2		32
Revisions to estimates	(5)		—		(5)		(8)		—		(8)
Payments	(6)		(1)		(7)		(22)		(2)		(24)
Foreign currency	(1)		—		(1)		—		—		—
Balance at June 30	75		—		75		99		—		99
Provisions	4		2		6		2		3		5
Revisions to estimates	(3)		—		(3)		(10)		—		(10)
Payments	(5)		(2)		(7)		(13)		(3)		(16)
Foreign currency	(2)		—		(2)		(1)		—		(1)
Balance at end of period	$	69	$	—	$	69	$	77	$	—	$	77