Restructuring

3 Months Ended

Apr. 01, 2023

Restructuring and Related Activities [Abstract]

Restructuring costs include employee termination benefits, asset impairment charges and contract termination costs, as well as other incremental costs resulting from the restructuring actions. Employee termination benefits are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy. Other incremental costs principally include equipment and personnel relocation costs. In addition to restructuring costs, the Company incurs incremental manufacturing inefficiency costs at the operating locations impacted by the restructuring actions during the related restructuring implementation period. Restructuring costs are recognized in the Company's condensed consolidated financial statements in accordance with GAAP. Generally, charges are recorded when restructuring actions are approved, communicated and/or implemented.

A summary of the changes in the Company's restructuring reserves is shown below (in millions):


Balance at January 1, 2023	$	82.9
Provision for employee termination benefits	11.7
Payments, utilizations and foreign currency	(18.3)
Balance at April 1, 2023	$	76.3

Charges recorded in connection with the Company's restructuring actions are shown below (in millions):


	Three Months Ended
	April 1, 2023		April 2, 2022
Employee termination benefits	$	11.7	$	27.3
Property, plant and equipment impairments	0.1		0.5

Contract termination costs	0.8		1.0
Other related costs	2.0		1.1
	$	14.6	$	29.9

Restructuring charges by income statement line item are shown below (in millions):


	Three Months Ended
	April 1, 2023		April 2, 2022
Cost of sales	$	12.9	$	29.5
Selling, general and administrative expenses	1.7		0.4

	$	14.6	$	29.9

Restructuring charges by operating segment are shown below (in millions):


	Three Months Ended
	April 1, 2023		April 2, 2022
Seating	$	12.0	$	16.6
E-Systems	2.3		13.3
Other	0.3		—
	$	14.6	$	29.9

The Company expects to incur approximately $16 million and approximately $3 million of additional restructuring costs in its Seating and E-Systems segments, respectively, related to activities initiated as of April 1, 2023, and expects that the components of such costs will be consistent with its historical experience.