Restructuring of Operations

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring of Operations [Text Block]

Restructuring of Operations

Our restructuring activities have historically included rationalizing our operating footprint by consolidating facilities, positioning operations in lower cost locations and reducing overhead costs. In recent years, however, in response to lower demand and other market conditions in certain businesses, our focus has primarily been headcount reduction initiatives to reduce operating 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 2017, we continued to execute our previously announced actions. Restructuring expense during the first quarter of 2017 was $2 and primarily represented continuing exit costs.

During the first quarter of 2016, restructuring expense of $1 also primarily represented continuing exit costs associated with previously announced actions.

Accrued restructuring costs and activity, including noncurrent portion —

	Employee Termination Benefits			Exit Costs			Total
Balance at December 31, 2016	$	32		$	6		$	38
Charges to restructuring	—			2			2
Cash payments	(12		)	(2		)	(14		)
Balance at March 31, 2017	$	20		$	6		$	26

At March 31, 2017, the accrued employee termination benefits include costs to reduce approximately 400 employees to be completed over the next year. The exit costs relate primarily to lease continuation obligations.

Cost to complete — The following table provides project-to-date and estimated future restructuring expenses for completion of our approved restructuring initiatives for our business segments at March 31, 2017.

	Expense Recognized						Future Cost to Complete
	Prior to 2017		2017		Total to Date
Light Vehicle	$	10	$	1	$	11	$	1
Commercial Vehicle	41		1		42		14
Off-Highway	6				6
Total	$	57	$	2	$	59	$	15

The future cost to complete includes estimated separation costs, primarily those associated with one-time benefit programs, and exit costs through 2021, 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.