Restructuring of Operations

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 third quarter of 2014, we continued to execute our previously announced initiatives. Restructuring expense during the third quarter of 2014 was $2, including $1 of severance and related benefit costs and $1 of exit costs.

During the first half of 2014, we continued to implement certain headcount reduction programs, including those associated with the closure of our Commercial Vehicle foundry operation in Argentina. For the nine months ended September 30, 2014, restructuring expense was $14, including $9 of severance and related benefit costs and $5 of exit costs.

During the third quarter of 2013, we approved additional headcount reduction programs, primarily attributable to our Commercial Vehicle operations in Argentina. Including costs associated with this action and with other previously announced initiatives, restructuring expense during the third quarter of 2013 was $8, including $3 of severance and related benefit costs and $5 of exit costs.

During the first half of 2013, we implemented certain headcount reduction initiatives, primarily in our Light Vehicle and Commercial Vehicle businesses in Argentina and Australia. New customer programs and other developments in our North American Light Vehicle business and a decision by our European Off-Highway business to in-source the manufacturing of certain parts resulted in the reversal of previously accrued severance obligations. Excluding $1 of exit costs associated with discontinued operations, restructuring expense, net of the aforementioned reversals, was $14 during the first nine months of 2013 and included $6 of severance and related benefit costs and $8 of exit costs.

Accrued restructuring costs and activity, including noncurrent portion —



	Employee Termination Benefits			Exit Costs			Total
Balance at June 30, 2014	$	11		$	10		$	21
Activity during the period:
Charges to restructuring	2			1			3
Adjustments of accruals	(1		)				(1		)
Cash payments	(4		)	(1		)	(5		)
Currency impact	1						1
Balance at September 30, 2014	$	9		$	10		$	19

Balance at December 31, 2013	$	14		$	11		$	25
Activity during the period:
Charges to restructuring	10			5			15
Adjustments of accruals	(1		)				(1		)
Cash payments	(15		)	(6		)	(21		)
Currency impact	1						1
Balance at September 30, 2014	$	9		$	10		$	19

At September 30, 2014, the accrued employee termination benefits relate to the reduction of approximately 150 employees to be completed over the next two years. The exit costs relate primarily to lease continuation obligations. We estimate cash expenditures to approximate $3 during the remainder of 2014 and $16 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	$	—	$	8	$	5
Commercial Vehicle	28		13		41		12
Off-Highway	8				8
Power Technologies	2		1		3
Corporate					—		4
Discontinued operations	2				2
Total	$	48	$	14	$	62	$	21

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.