Restructuring of Operations

3 Months Ended

Mar. 31, 2014

Restructuring and Related Activities [Abstract]

Our restructuring activities primarily include rationalizing our operating footprint by consolidating facilities, positioning operations in lower cost locations and reducing overhead costs. Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs, including costs associated with lease continuation obligations and certain operating costs of facilities that we are in the process of closing.

During the first quarter of 2014, we continued to implement certain headcount reduction programs, primarily in our Commercial Vehicle operation in Argentina. Including costs associated with this action and with other previously announced initiatives, restructuring expense during the first quarter of 2014 was $9, including $7 of severance and related benefits costs and $2 of exit costs.

Excluding $1 of costs associated with discontinued operations and attributable to exit costs, restructuring expense during the first quarter of 2013 was $2, all of which was attributable to exit costs associated with previously announced initiatives.

Restructuring charges and related payments and adjustments —



	Employee Termination Benefits			Exit Costs			Total
Balance at December 31, 2013, including noncurrent portion	$	14		$	11		$	25
Activity during the period:
Charges to restructuring	7			2			9
Cash payments	(8		)	(3		)	(11		)
Balance at March 31, 2014, including noncurrent portion	$	13		$	10		$	23

At March 31, 2014, the accrued employee termination benefits relate to the reduction of approximately 200 employees to be completed over the next three years. The exit costs relate primarily to lease continuation obligations. We estimate cash expenditures to approximate $11 during the remainder of 2014 and $12 thereafter.

Cost to complete — The following table provides project-to-date and estimated future expenses for completion of our pending restructuring initiatives.



	Expense Recognized						Future Cost to Complete
	Prior to 2014		2014		Total to Date		Future Cost to Complete
Light Vehicle	$	8	$	1	$	9	$	6
Commercial Vehicle	28		8		36		13
Off-Highway	8				8
Power Technologies	2				2		1
Corporate					—		4
Discontinued operations	2				2
Total	$	48	$	9	$	57	$	24

The future cost to complete includes estimated separation costs, primarily those associated with one-time benefit programs, and exit costs, including lease continuation costs, equipment transfers and other costs which are required to be recognized as closures are finalized or as incurred during the closure.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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