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Note 4 - Restructuring of Operations

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities Disclosure [Text Block]

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, our focus has been primarily headcount reduction initiatives to reduce operating costs, including actions taken at acquired businesses to rationalize cost structures and achieve operating synergies. Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs, including certain operating costs of facilities that we are in the process of closing.

Net restructuring charges of $34 and $29 in 2020 and 2019 were comprised of severance and benefit costs related to integration of recent acquisitions, headcount reductions across our operations and exit costs related to previously announced actions.

Net restructuring charges of $25 in 2018 were primarily comprised of severance and benefit costs related to a voluntary retirement program in North America, headcount reduction actions in our operations and corporate functions in Brazil and administrative cost reduction initiatives primarily in Europe and North America. In response to continued market recovery in our Off-Highway business in Europe, management re-evaluated the economic conditions of our global Off-Highway business and determined that $7 of the previously approved restructuring actions were no longer economically prudent.

Accrued restructuring costs and activity, including noncurrent portion —

	Employee
	Termination			Exit
	Benefits			Costs			Total
Balance, December 31, 2017	$	21		$	5		$	26
Charges to restructuring		28			4			32
Adjustments of accruals		(7	)					(7	)
Cash payments		(16	)		(5	)		(21	)
Currency impact		(1	)					(1	)
Balance, December 31, 2018		25			4			29
Charges to restructuring		21			10			31
Adjustments of accruals		(2	)					(2	)
Cash payments		(31	)		(9	)		(40	)
Currency impact								—
Lease cease-use reclassification					(4	)		(4	)
Balance, December 31, 2019		13			1			14
Charges to restructuring		30			6			36
Adjustments of accruals		(2	)					(2	)
Cash payments		(12	)		(7	)		(19	)
Currency impact		1						1
Balance, December 31, 2020	$	30		$	—		$	30

At December 31, 2020, accrued employee termination benefits include costs to reduce approximately 500 employees to be completed over the next year.

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 December 31, 2020.

	Expense Recognized						Future
	Prior to				Total		Cost to
	2020		2020		to Date		Complete
Commercial Vehicle	$	39	$	2	$	41	$	2
Light Vehicle	$	—	$	1	$	1	$	1

The future cost to complete includes estimated separation costs, primarily those associated with one-time benefit programs, and exit costs through 2021, equipment transfers and other costs which are required to be recognized as closures are finalized or as incurred during the closure.