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Restructuring Charges, Asset Impairments, and Other, Net Restructuring Charges, Asset Impairments, and Other, Net
 12 Months Ended
Dec. 31, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Charges, Asset Impairments, and Other, Net Restructuring Charges, Asset Impairments, and Other, Net

Restructuring and Other Charges
The Company's restructuring activities are undertaken as necessary to execute management's strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company's business and to relocate operations to best cost locations.

The Company's restructuring charges consist primarily of employee costs (principally severance and/or termination benefits), and facility closure and exit costs.

For the years ended December 31, 2019, 2018, and 2017, restructuring charges, net and asset impairments by segment are as follows:
 
Year Ended December 31, 2019
 
Clean Air
 
Powertrain
 
Ride Performance
 
Motorparts
 
Corporate
 
Total
Severance and other charges, net
$
29

 
$
31

 
$
28

 
$
14

 
$
11

 
$
113

 
 
 
 
 
 
 
 
 
 
 
 
Restructuring asset impairments
—

 
—

 
3

 
—

 
—

 
3

Other non-restructuring asset impairments
1

 
—

 
—

 
1

 
—

 
2

Impairment of assets held for sale
—

 
—

 
—

 
8

 
—

 
8

Total asset impairment charges
1

 
—

 
3

 
9

 
—

 
13

Total restructuring charges, asset impairments, and other
$
30

 
$
31

 
$
31

 
$
23

 
$
11

 
$
126

 
Year Ended December 31, 2018
 
Clean Air
 
Powertrain
 
Ride Performance
 
Motorparts
 
Corporate
 
Total
Severance and other charges, net
$
14

 
$
(2
)
 
$
53

 
$
42

 
$
5

 
$
112

 
 
 
 
 
 
 
 
 
 
 
 
Restructuring asset impairments
—

 
—

 
3

 
—

 
—

 
3

Other non-restructuring asset impairments
—

 
—

 
—

 
—

 
2

 
2

Total asset impairment charges
—

 
—

 
3

 
—

 
2

 
5

Total restructuring charges, asset impairments, and other
$
14

 
$
(2
)
 
$
56

 
$
42

 
$
7

 
$
117

 
Year Ended December 31, 2017
 
Clean Air
 
Powertrain
 
Ride Performance
 
Motorparts
 
Corporate
 
Total
Severance and other charges, net
$
23

 
$
—

 
$
16

 
$
7

 
$
1

 
$
47

Total asset impairment charges
—

 
—

 
—

 
—

 
—

 
—

Total restructuring charges, asset impairments, and other
$
23

 
$
—

 
$
16

 
$
7

 
$
1

 
$
47



In the year ended December 31, 2019, the Company incurred charges for the following items:
•
The Company incurred $12 million in restructuring and related costs and decreased previously recorded estimates by $3 million related to a restructuring plan designed to achieve a portion of the synergies the Company anticipates achieving in connection with the Federal-Mogul Acquisition. Pursuant to the plan, the Company will reduce its
headcount globally across all segments. The Company began implementing headcount reductions in January 2019. The Federal-Mogul Acquisition is discussed further in Note 3, Acquisitions and Divestitures.
•
The Company incurred $20 million in restructuring and other costs, offset by $6 million in changes to previously recorded estimates, related to several actions in Europe within its Clean Air segment. These actions included a plant closure, plant consolidation actions, and headcount reduction initiatives. Clean Air also incurred $14 million in restructuring and other costs in Asia related to the wind-down of one of its consolidated joint ventures, a plant closure, plant consolidation, and a headcount reduction initiative.
•
The Company incurred $22 million in restructuring and other costs related to a global cost reduction program within Powertrain segment and $5 million in costs related to a plant closure.
•
The Company incurred $19 million in restructuring and other costs related to plant relocation and closures within its Ride Performance segment. The Company expects the actions to be completed by the second quarter of 2020.
•
The Company incurred $10 million in restructuring and other costs primarily related to head count reduction initiatives within its Motorparts segment.
•
The Company incurred $9 million in restructuring for the elimination of certain redundant positions within the executive management team recognized in corporate.

In the year ended December 31, 2018, the Company incurred charges for the following items:
•
The Company incurred $25 million in restructuring and related costs, related to the accelerated move of the Beijing Ride Performance plant. This move was completed in 2019.
•
The Company incurred $10 million in restructuring charges related to headcount reductions at a Clean Air manufacturing plant in Germany.
•
In October 2018, the Company announced a plan to close its ride performance plants in Owen Sound, Ontario and Hartwell, Georgia as part of an initiative to realign its manufacturing footprint to enhance operational efficiency and respond to changing market conditions and capacity requirements. The Company recorded charges of $21 million in 2018, including asset write-downs of $3 million. The charges included severance payments to employees, the cost of decommissioning equipment, and other costs associated with this action.
•
The Company incurred a $45 million charge related to a restructuring plan designed to achieve a portion of the synergies the Company anticipates achieving in connection with the acquisition of Federal-Mogul. Pursuant to the plan, the Company will reduce its headcount globally across all segments. The Company began implementing headcount reductions in January 2019 and actions continued through the end of 2019. The Federal-Mogul Acquisition is discussed further in Note 3, Acquisitions and Divestitures.
•
The Company incurred an additional $16 million in restructuring and related costs, including asset write-downs of $2 million, for cost improvement initiatives at various other operations around the world.

In the year ended December 31, 2017, the Company incurred charges for the following items:
•
On June 29, 2017, the Company announced a restructuring initiative to close its Clean Air manufacturing plant in O'Sullivan Beach, Australia and downsize its Ride Performance plant in Clovelly Park, Australia when General Motors and Toyota ended vehicle production in the country in October 2017. All such restructuring activities related to this initiative were completed in 2018. The Company recorded total charges related to this initiative of $19 million in 2017. The charges included severance payments to employees, the cost of decommissioning equipment, a lease termination payment, and other costs associated with this action.
•
In the fourth quarter of 2017, the Company began to accelerate a required move of its Beijing Ride Performance plant outside of Beijing area. The Company incurred $6 million of restructuring and related costs due to this relocation.
•
The Company recognized a $9 million charge related to the planned closing of its Clean Air plant in Ghent, Belgium due to the scheduled end of production on a customer platform in 2020.
•
The Company incurred an additional $13 million in restructuring and related costs for cost improvement initiatives at various other operations around the world.

Restructuring Reserve Rollforward
The following table is a rollforward of amounts related to activities that were charged to restructuring reserves by reportable segments for the years ended December 31, 2019, 2018, and 2017:
 
Clean Air
 
Powertrain
 
Ride Performance
 
Motorparts
 
Total Reportable Segments
 
Corporate
 
Total
Balance at December 31, 2016
$
2

 
$
—

 
$
6

 
$
6

 
$
14

 
$
1

 
$
15

Provisions
23

 
—

 
16

 
7

 
46

 
1

 
47

Payments
(12
)
 
—

 
(16
)
 
(9
)
 
(37
)
 
(2
)
 
(39
)
Foreign currency
1

 
—

 
1

 
—

 
2

 
—

 
2

Balance at December 31, 2017
14

 
—

 
7

 
4

 
25

 
—

 
25

Federal-Mogul Acquisition
—

 
22

 
1

 
14

 
37

 
—

 
37

Provisions
14

 
1

 
53

 
42

 
110

 
5

 
115

Held for sale
—

 
—

 
—

 
(2
)
 
(2
)
 
—

 
(2
)
Revisions to estimates
—

 
(3
)
 
—

 
—

 
(3
)
 
—

 
(3
)
Payments
(10
)
 
(5
)
 
(36
)
 
(15
)
 
(66
)
 
(2
)
 
(68
)
Foreign currency
(1
)
 
—

 
—

 
—

 
(1
)
 
—

 
(1
)
Balance at December 31, 2018
17

 
15

 
25

 
43

 
100

 
3

 
103

Provisions
35

 
31

 
29

 
19

 
114

 
11

 
125

Revisions to estimates
(6
)
 
—

 
(1
)
 
(5
)
 
(12
)
 
—

 
(12
)
Payments
(23
)
 
(16
)
 
(30
)
 
(41
)
 
(110
)
 
(5
)
 
(115
)
Balance at December 31, 2019
$
23

 
$
30

 
$
23

 
$
16

 
$
92

 
$
9

 
$
101


The following table provides a summary of the Company's consolidated restructuring liabilities and related activity for each type of exit costs for the years ended December 31, 2019, 2018, and 2017:
 
Employee Costs
 
Facility Closure and Other Costs
 
Total
Balance at December 31, 2016
$
8

 
$
7

 
$
15

Provisions
31

 
16

 
47

Payments
(22
)
 
(17
)
 
(39
)
Foreign currency
2

 
—

 
2

Balance at December 31, 2017
19

 
6

 
25

Federal-Mogul Acquisition
37

 
—

 
37

Provisions
90

 
25

 
115

Held for sale
(2
)
 
—

 
(2
)
Revisions to estimates
(4
)
 
1

 
(3
)
Payments
(41
)
 
(27
)
 
(68
)
Foreign currency
(1
)
 
—

 
(1
)
Balance at December 31, 2018
98

 
5

 
103

Provisions
103

 
22

 
125

Revisions to estimates
(12
)
 
—

 
(12
)
Payments
(92
)
 
(23
)
 
(115
)
Balance at December 31, 2019
$
97

 
$
4

 
$
101