NOTE 6. Restructuring

During the three and nine-months ended September 30, 2014, the Company recorded restructuring expenses of $9 million and $23 million, respectively. Given the economically-sensitive and highly competitive nature of the automotive industry, the Company continues to closely monitor current market factors and industry trends taking action as necessary, including but not limited to, additional restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows.

Restructuring reserve balances of $15 million and $29 million at September 30, 2014 and December 31, 2013, respectively, are classified as Other current liabilities on the consolidated balance sheets. The Company anticipates that the activities associated with these reserves will be substantially completed by the end of 2014. The Company’s restructuring reserves and related activity, including amounts attributable to discontinued operations, are as follows.



	Climate			Electronics			Corporate			Other			Total
	(Dollars in Millions)
Balance at December 31, 2013	$	1		$	—		$	3		25			$	29
Expenses	1			—			1			—			2
Utilization	(1		)	—			(3		)	(6		)	(10		)
Balance at March 31, 2014	$	1		$	—		$	1		$	19		$	21
Expenses	12			—			—			5			17
Utilization	—			—			(1		)	(11		)	(12		)
Balance at June 30, 2014	$	13		$	—		$	—		$	13		$	26
Expenses	4			5			—			6			15
Utilization	(16		)	(1		)	—			(8		)	(25		)
Foreign currency	—			—			—			(1		)	(1		)
Balance at September 30, 2014	$	1		$	4		$	—		$	10		$	15

Restructuring Activities - Three and Nine Months Ended September 30, 2014

In connection with the Electronics Acquisition, the Company commenced a restructuring program designed to achieve cost savings through transaction synergies. The Company expects to incur approximately $40 million to $60 million of restructuring costs during the program. During the three-months ended September 30, 2014, the Company recorded $5 million of severance and termination benefits under this program associated with approximately 115 employees. The Company anticipates recording additional restructuring charges related to this program in future periods as underlying plans are finalized. Approximately $4 million remains accrued at September 30, 2014.

The Company previously announced a $100 million restructuring program designed to reduce fixed costs and to improve operational efficiency by addressing certain under-performing operations. In connection with that program, the Company announced plans to restructure three European Interiors facilities, to consolidate its Climate operations and to realign its corporate and administrative functions directly to their corresponding operational beneficiary. As of September 30, 2014, this $100 million restructuring program has been substantially completed. During the three-months ended September 30, 2014, the Company recorded $10 million of restructuring expenses, including amounts associated with discontinued operations, primarily related to the following activities:


•	The previously announced closure of the Climate facility located in Quilmes, Argentina. In connection with the closure, the Company recorded an additional $3 million of restructuring expenses, related to severance and termination benefits.


•	The Company recorded $6 million of severance and termination benefits associated with approximately 100 employees at two European Interiors facilities. This amount has been classified within discontinued operations on the Consolidated Statements of Comprehensive (Loss) Income for the three-month period ended September 30, 2014. Approximately $3 million remains accrued as of September 30, 2014.

During the second quarter of 2014, the Company recorded $17 million of restructuring expenses, including amounts associated with discontinued operations, among which $10 million and $2 million were primarily related to severance and termination benefits in connection with the previously announced closure of the Climate facilities in Quilmes, Argentina and Port Elizabeth, South Africa, respectively, and $5 million was in connection with the previously announced restructuring of three Interiors facilities in France.

Utilization represents payments for severance and other employee termination benefits and special termination benefits reclassified to pension and other postretirement employee benefit liabilities, where such payments are made from the Company’s benefit plans.

Restructuring Activities - Three and Nine Months Ended September 30, 2013

During the third quarter of 2013, the Company recorded $10 million of restructuring expenses, net of reversals, primarily related to severance and termination benefits associated with approximately 250 employees, including $7 million related to the reorganization of the operations at a facility in Brazil and $2 million in connection with the reorganization of the Company's Climate operations.

During the first quarter of 2013, the Company recorded $20 million of restructuring expenses, net of reversal, primarily related to severance and termination benefits associated with approximately 140 employees, including $14 million in connection with the reorganization of the Company's Climate operations in France and $6 million related to the transformation of its corporate and administrative functions. The Company recorded $2 million of additional restructuring expenses associated with these programs during the first quarter of 2014.