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 2014, we implemented various cost reduction programs, including the closure of our Commercial Vehicle foundry in Argentina and other headcount reduction programs in our Light Vehicle and Commercial Vehicle businesses in South America and Europe. Total restructuring expense in 2014 associated with these actions and with other previously announced initiatives was $21 and included $15 of severance and related benefits costs and $6 of exit costs.

During 2013, we implemented certain headcount reduction programs, primarily in our Light Vehicle and Commercial Vehicle businesses in Argentina and Australia and in our Off-Highway business in Europe. 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 in 2013 was $24, net of the aforementioned reversals, and was attributable to the cost of newly implemented and previously announced initiatives. Restructuring expense includes $14 of severance and related benefits costs and $10 of exit costs.

During 2012, we implemented certain cost reduction programs, including headcount reduction initiatives at several of our manufacturing operations in all regions, the most significant of which impacted the Light Vehicle and Commercial Vehicle businesses in South America and Europe. Included in these actions was the planned closure of our Light Vehicle manufacturing facility in Austria, which was completed during 2013. Additionally, we exited our Commercial Vehicle facility in Kalamazoo, Michigan in June 2012 and recognized the fair value of the associated lease continuation obligation. Excluding $3 of exit costs associated with discontinued operations, restructuring expense in 2012 to recognize the costs of these actions and those of previously announced initiatives was $47 and included $27 of severance and related benefit costs and $20 of exit costs.

Accrued restructuring costs activity, including noncurrent portion —



	Employee Termination Benefits			Exit Costs			Total
Balance at December 31, 2011	$	30		$	3		$	33
Charges to restructuring	31			20			51
Adjustments of accruals	(4		)				(4		)
Discontinued operations charges				3			3
Non-cash write-off				(2		)	(2		)
Cash payments	(30		)	(11		)	(41		)
Balance at December 31, 2012	27			13			40
Charges to restructuring	23			11			34
Adjustments of accruals	(9		)	(1		)	(10		)
Discontinued operations charges				1			1
Cash payments	(27		)	(13		)	(40		)
Balance at December 31, 2013	14			11			25
Charges to restructuring	17			6			23
Adjustments of accruals	(2		)				(2		)
Cash payments	(18		)	(8		)	(26		)
Currency impact	1						1
Balance at December 31, 2014	$	12		$	9		$	21

At December 31, 2014, the accrued employee termination benefits relate to the reduction of approximately 200 employees to be completed over the next two years. The exit costs relate primarily to lease continuation obligations.

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



	Expense Recognized							Future Cost to Complete
	Prior to 2014		2014			Total to Date		Future Cost to Complete
Light Vehicle	$	8	$	2		$	10	$	2
Commercial Vehicle	28		19			47		11
Off-Highway	8		(1		)	7
Power Technologies	2		1			3
Discontinued operations	2					2
Total	$	48	$	21		$	69	$	13

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.