Note 3. Restructuring of Operations

We continue to focus on rationalizing our operating footprint — consolidating facilities, positioning operations in lower cost locations and reducing overhead costs. Restructuring expense includes costs associated with current and previously announced actions. We classify the incremental depreciation associated with a planned closure as accelerated depreciation/impairment in restructuring expense.

During 2010, we announced our plans to consolidate our Heavy Vehicle operations and close the Kalamazoo, Michigan and Statesville, North Carolina facilities. Certain costs associated with this consolidation were accrued in 2009. We also announced the planned closure of the Yennora, Australia facility in our LVD business and the associated transfer of certain production activity to other global operations. In addition, we approved certain business realignment and headcount reduction initiatives, primarily in our European and Venezuelan operations. Including costs associated with previously announced initiatives, we expensed $60 for restructuring actions during the first nine months of 2010, including $36 of severance and related benefit costs, $17 of exit costs and $7 of accelerated depreciation/impairment costs.

In the first quarter of 2011, we reached an agreement with the lessor to settle our LVD facility lease in Yennora, Australia. Under the terms of the agreement, we recognized $20 of lease termination costs. Additionally, during the first quarter of 2011, we announced the planned closure of our LVD manufacturing facility in Marion, Indiana and the consolidation of the associated manufacturing activity in other North American facilities. We continued to incur costs in the second quarter of 2011 associated with previously announced initiatives, including pension settlement costs associated with the previously announced closure of certain of our operations in Canada (see Note 8).

During the third quarter of 2011, we approved plans to realign certain operations in our LVD, Power Technology and Structural Products businesses. These plans include work force reductions of approximately 800 employees primarily in the U.S., including 200 employees at our Longview, Texas manufacturing facility. Additionally, we implemented work force reductions in certain corporate and functional areas in North America to further streamline our business support activities. In connection with our 2011 actions and other previously announced initiatives, we expensed $65 during the first nine months of 2011, including $23 of severance and related benefit costs, $40 of exit costs and $2 of accelerated depreciation/impairment cost.

Restructuring charges and related payments and adjustments —

	Employee			Accelerated
	Termination			Depreciation/			Exit
	Benefits			Impairment			Costs			Total
Balance at June 30, 2011	$	17		$	-		$	22		$	39
Activity during the period:
Charges to restructuring		15						9			24
Cash payments		(9	)					(26	)		(35	)
Currency impact								1			1
Balance at September 30, 2011	$	23		$	-		$	6		$	29

Balance at December 31, 2010	$	24		$	-		$	4		$	28
Activity during the period:
Charges to restructuring		26			2			40			68
Adjustments of accruals		(3	)								(3	)
Non-cash write-off					(2	)					(2	)
Pension settlements		(5	)								(5	)
Cash payments		(20	)					(39	)		(59	)
Currency impact		1						1			2
Balance at September 30, 2011	$	23		$	-		$	6		$	29

At September 30, 2011, the accrued employee termination benefits relate to the reduction of approximately 1,200 employees to be completed over the next two years. The exit costs relate primarily to lease terminations. We estimate cash expenditures to approximate $8 in 2011 and $21 thereafter.

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
	Prior to				Total		Cost to
	2011		2011		to Date		Complete
LVD	$	46	$	37	$	83	$	15
Power Technologies		14		7		21		6
Commercial Vehicle		42		9		51		11
Off-Highway		6		1		7		3
Structures				5		5		4
Corporate				6		6		5
Total	$	108	$	65	$	173	$	44

The future cost to complete includes estimated contractual and noncontractual separation payments, lease continuation costs, equipment transfers and other costs which are required to be recognized as closures are finalized or as incurred during the closure.