RESTRUCTURING COSTS

At September 30, 2017 and 2016, $6 million and $16 million, respectively, of restructuring reserves primarily related to unpaid employee termination benefits remained in the consolidated balance sheet. Asset impairment charges relate to manufacturing facilities that have been sold and machinery and equipment that became idle and obsolete as a result of these actions.

The following table summarizes changes in restructuring reserves (in millions):



	Employee Termination Benefits			Asset Impairment			Plant Shutdown & Other			Total
Balance at September 30, 2014	$	11		$	—		$	—		$	11
Activity during the period:
Charges to continuing operations	15			1			—			16
Asset write-offs	—			(1		)	—			(1		)
Cash payments – continuing operations	(16		)	—			—			(16		)
Balance at September 30, 2015	10			—			—			10
Activity during the period:
Charges to continuing operations	15			—			1			16
Cash payments – continuing operations	(11		)	—			—			(11		)
Other	1			—			—			1
Balance at September 30, 2016	15			—			1			16
Activity during the period:
Charges to continuing operations	5			—			1			6
Cash payments – continuing operations	(14		)	—			(1		)	(15		)
Other	(1		)	—			—			(1		)
Total restructuring reserves, end of year	5			—			1			6
Less: non-current restructuring reserves	(1		)	—			—			(1		)
Restructuring reserves – current, at September 30, 2017	$	4		$	—		$	1		$	5

Restructuring costs attributable to the company’s business segments during fiscal years 2017, 2016 and 2015 are as follows (in millions):



	Commercial Truck & Industrial		Aftermarket & Trailer		Corporate		Total
Fiscal year 2017:
Aftermarket actions	$	—	$	4	$	—	$	4
Other	2		—		—		2
Total restructuring costs	$	2	$	4	$	—	$	6
Fiscal year 2016:
Market related actions	$	5	$	1	$	2	$	8
Aftermarket actions	—		5		—		5
Other	1		2		—		3
Total restructuring costs	$	6	$	8	$	2	$	16
Fiscal year 2015:
South America labor reduction II	$	6	$	—	$	—	$	6
M2016 footprint actions	5		—		—		5
Closure of engineering facility	—		—		2		2
European labor reductions	2		—		—		2
Other	1		—		—		1
Total restructuring costs	$	14	$	—	$	2	$	16

Aftermarket Actions: During the third quarter of fiscal year 2016, the company approved various restructuring plans in the North American and European Aftermarket businesses. The company recorded $5 million of restructuring costs during the third quarter of fiscal year 2016 and $4 million of restructuring costs during fiscal year 2017. Restructuring actions associated with these plans were substantially complete as of September 30, 2017.

Fourth Quarter 2016 Market Related Actions: In response to the decline in revenue in North America and South America, during the fourth quarter of fiscal year 2016, the company approved various headcount reduction plans targeting different areas of the business. During the fourth quarter of fiscal year 2016, the company incurred a total of $5 million in restructuring costs in the Commercial Truck & Industrial segment, $1 million in Aftermarket & Trailer segments and $2 million in their corporate locations. Restructuring actions with these plans were substantially complete as of September 30, 2017.

Other Fiscal 2016 Actions: During the first half of fiscal year 2016, the company recorded restructuring costs of $3 million primarily associated with a labor reduction program in China in the Commercial Truck & Industrial segment and a labor reduction program in the Aftermarket & Trailer segment. Restructuring actions with these plans were substantially complete as of September 30, 2016.

M2016 Footprint Actions: As part of the company's M2016 Strategy, during fiscal year 2013 the company announced a North American footprint realignment action and a European shared services reorganization. In total, the company eliminated approximately 140 hourly and salaried positions and incurred approximately $7 million of associated restructuring costs, primarily in the Commercial Truck & Industrial segment in connection with the consolidation of certain gearing and machining operations in North America and the closure of a North America manufacturing facility. Restructuring actions associated with these programs were substantially complete as of September 30, 2015.

South America Labor Reduction: During fiscal years 2014 and 2015, the company completed a South America headcount reduction plan intended to reduce labor costs in response to softening economic conditions in the region. In response to decreasing production volumes in South America, the company eliminated approximately 420 hourly and 40 salaried positions and incurred $13 million of restructuring costs, primarily severance benefits, in the Commercial Truck & Industrial segment. This plan was substantially complete as of September 30, 2015.

Closure of a Corporate Engineering Facility: During the second quarter of fiscal year 2015, the company notified approximately 30 salaried and contract employees that their positions were being eliminated due to the planned closure of a corporate engineering facility. The company recorded severance expenses of $2 million associated with this plan. Restructuring actions associated with this program were substantially complete as of September 30, 2015.

European Labor Reductions: During the second quarter of fiscal year 2015, the company initiated a European headcount reduction plan intended to reduce labor costs in response to continued soft markets in the region. The company eliminated approximately 20 hourly and 20 salaried positions and recorded $2 million of expected severance expenses in the Commercial Truck & Industrial segment in fiscal year 2015. Restructuring actions associated with this program were substantially complete as of June 30, 2015.