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 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. We classify the incremental depreciation associated with a planned closure as accelerated depreciation/impairment and also include this cost in restructuring expense.

During 2011, we reached an agreement with the lessor to settle our LVD lease associated with the previously announced planned closure of the Yennora, Australia facility. Under the terms of the agreement, we recognized $20 of lease termination costs. Additionally, we approved the realignment of several manufacturing operations, including the planned closure of our LVD manufacturing facility in Marion, Indiana, our Power Technologies manufacturing facility in Milwaukee, Wisconsin and our Structural Products manufacturing facility in Longview, Texas. We also implemented other work force reduction initiatives at certain manufacturing facilities, primarily in our LVD and Commercial Vehicle businesses in South America, and in certain corporate and functional areas, primarily in North America and Europe. Total work force reductions from these 2011 actions, when completed, will approximate 1,200, including 1,000 manufacturing positions and 200 corporate and functional area positions.

In connection with our 2011 actions and other previously announced initiatives, we expensed $87 during 2011, including $35 of severance and related benefit costs, $45 of exit costs, $2 of accelerated depreciation/impairment cost and $5 associated with pension settlement costs related to the previously announced closure of certain of our operations in Canada (see Note 10).

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 approved certain business realignment and headcount reduction initiatives, primarily in our European and Venezuelan operations. Including costs associated with previously announced initiatives, we expensed $73 for restructuring actions during 2010, including $42 of severance and related benefit costs, $22 of exit costs and $9 of accelerated depreciation/

impairment costs.

During 2009, we continued with our employee reduction programs and our global business realignment activities, including closures in our LVD, Power Technologies and Commercial Vehicle businesses. These actions resulted in a total charge of $118, including $83 for severance and related benefit costs, $17 of exit costs and $18 of accelerated depreciation/impairment costs.

Restructuring charges and related payments and adjustments —

	Employee			Accelerated
	Termination			Depreciation/			Exit
	Benefits			Impairment			Costs			Total
Balance at December 31, 2008	$	55		$	—		$	10		$	65
Activity during the period:
Charges to restructuring		91			18			23			132
Adjustments of accruals		(8	)					(6	)		(14	)
Non-cash write-off					(18	)					(18	)
Cash payments		(114	)					(24	)		(138	)
Currency impact		2									2
Balance at December 31, 2009		26						3			29
Activity during the period:
Charges to restructuring		52			9			24			85
Adjustments of accruals		(10	)					(2	)		(12	)
Non-cash write-off					(9	)					(9	)
Cash payments		(46	)					(21	)		(67	)
Currency impact		2									2
Balance at December 31, 2010		24						4			28
Activity during the period:
Charges to restructuring		44			2			45			91
Adjustments of accruals		(4	)								(4	)
Non-cash write-off					(2	)					(2	)
Pension settlements		(5	)								(5	)
Cash payments		(30	)					(47	)		(77	)
Currency impact		1						1			2
Balance at December 31, 2011	$	30		$	—		$	3		$	33

At December 31, 2011, the accrued employee termination benefits relate to the reduction of approximately 1,300 employees to be completed over the next two years. The exit costs relate primarily to lease terminations. We estimate cash expenditures to approximate $21 in 2012 and $12 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	$	47	$	93	$	13
Power Technologies		14		7		21		6
Commercial Vehicle		42		13		55		10
Off-Highway		6		4		10		2
Structures				5		5		5
Corporate				11		11		3
Total	$	108	$	87	$	195	$	39

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. Included in the future cost to complete is the lease continuation obligation associated with the previously announced closure of our Commercial Vehicle facility in Kalamazoo, Michigan, which we expect to cease using in 2012.