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 businesses 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. The 2019 amounts below reflect the reclassifications to the prior period as discussed in Note 2, Summary of Significant Accounting Policies.


	Three Months Ended September 30, 2020
	Clean Air		Powertrain		Ride Performance		Motorparts		Corporate		Total
Severance and other charges, net	$	1	$	13	$	—	$	—	$	—	$	14

Asset impairments related to restructuring actions	—		—		—		1		—		1

Impairment of assets held for sale	—		—		—		2		—		2
Total asset impairment charges	—		—		—		3		—		3
Total restructuring charges, net and asset impairments	$	1	$	13	$	—	$	3	$	—	$	17


	Three Months Ended September 30, 2019
	Clean Air		Powertrain		Ride Performance		Motorparts		Corporate		Total
Severance and other charges, net	$	6	$	11	$	5	$	2	$	1	$	25


Impairment of assets held for sale	—		—		—		8		—		8

Total restructuring charges, net and asset impairments	$	6	$	11	$	5	$	10	$	1	$	33


	Nine Months Ended September 30, 2020
	Clean Air		Powertrain		Ride Performance		Motorparts		Corporate		Total
Severance and other charges, net	$	23	$	50	$	24	$	17	$	5	$	119

Asset impairments related to restructuring actions	—		3		—		26		—		29
Other non-restructuring asset impairments	—		—		455		—		17		472
Impairment of assets held for sale	—		1		—		1		—		2
Total asset impairment charges	—		4		455		27		17		503
Total restructuring charges, net and asset impairments	$	23	$	54	$	479	$	44	$	22	$	622


	Nine Months Ended September 30, 2019
	Clean Air		Powertrain		Ride Performance		Motorparts		Corporate		Total
Severance and other charges, net	$	25	$	29	$	20	$	12	$	2	$	88


Other non-restructuring asset impairments	1		—		—		1		—		2
Impairment of assets held for sale	—		—		—		8		—		8

Total restructuring charges, net and asset impairments	$	26	$	29	$	20	$	21	$	2	$	98

•In addition to the actions above, the Company initiated several other cost reduction initiatives across all segments and regions aimed at optimizing the Company's cost structure. During the three months ended September 30, 2020, the Powertrain segment recognized a cash severance charge of $4 million in connection with these programs, which was offset by a revision to previously recorded estimates of $3 million in the Ride Performance segment.

•In conjunction with the Company's previously announced Project Accelerate, and in response to the COVID-19 global pandemic, the Company is executing global headcount reductions, subject to negotiation with works councils in certain jurisdictions. The Company began implementing these actions during the second quarter of 2020 and expects to complete them during 2021. During the nine months ended September 30, 2020, the Company recognized a charge of $26 million in connection with the cash severance costs expected to be paid in connections with these actions. Clean Air recognized charges of $9 million, Powertrain recognized charges of $8 million, Motorparts recognized charges of $5 million, Ride Performance recognized charges of $3 million, and corporate recognized charges of $1 million.

•In addition to the actions above, the Company initiated several other cost reduction initiatives across all segments and regions aimed at optimizing the Company's cost structure. During the nine months ended September 30, 2020, the Company recognized cash severance charges of $33 million expected to be paid under these programs. Clean Air recognized charges of $12 million, Powertrain recognized charges of $12 million, Motorparts recognized charges of $2 million, and Ride Performance recognized charges of $7 million.

•During the nine months ended September 30, 2020, the Powertrain segment incurred $16 million in restructuring and other costs related to plant relocations and closures, and $5 million related to a cost reduction program in one of its product lines.

•In the second quarter of 2020, the Motorparts segment initiated a rationalization of its supply chain and distribution network to achieve supply chain efficiencies and improve throughput to its customers; as discussed in Note 1, Description of Business. During the nine months ended September 30, 2020, the Motorparts segment recognized $4 million in restructuring charges related to cash severance expected to be paid in connection with this action. In addition, the Motorparts segment also recognized charges during the nine months ended September 30, 2020 of $4 million in connection with an infrastructure cost reduction program in one of its regions.

On June 30, 2020, the Company approved a voluntary termination program within the Powertrain segment at one of its European bearings plants aimed at reducing headcount, as negotiated with the works council and union. The Company anticipates implementing headcount reductions during 2020 and continuing into 2021 through a voluntary early retirement program and a voluntary special termination program. Restructuring and related charges are expected to be incurred during the remainder of 2020 and in 2021 aggregating to approximately $31 million. The charges are expected to be comprised of approximately $10 million for postemployment benefits, including an early retirement program, and $21 million of special termination benefits. In addition, the Company expects to incur additional costs of approximately $2 million for customer validation, equipment transfer, and related expenditures. During the three and nine months ended September 30, 2020, restructuring costs incurred related to this program were $6 million and $7 million.

During the three and nine months ended September 30, 2019, the Company incurred $3 million and $12 million in restructuring and related costs and reduced previously recorded estimates by $1 million and $3 million related to a restructuring plan designed to achieve a portion of the synergies the Company anticipated achieving in connection with the Federal-Mogul Acquisition. Pursuant to the plan, the Company reduced its headcount globally across all segments. During the three and nine months ended September 30, 2019, the Ride Performance segment incurred $5 million and $13 million in restructuring and other costs related to plant relocations and closures.


	Reportable Segments
	Clean Air		Powertrain		Ride Performance		Motorparts		Total Reportable Segments		Corporate		Total
Balance at December 31, 2019	$	23	$	30	$	23	$	16	$	92	$	9	$	101
Provisions	—		2		7		2		11		4		15
Revisions to estimates	—		(1)		(1)		—		(2)		—		(2)
Payments	(4)		(4)		(9)		(4)		(21)		(9)		(30)
Foreign currency	—		—		(1)		—		(1)		—		(1)
Balance at March 31, 2020	19		27		19		14		79		4		83
Provisions	24		36		18		17		95		1		96
Revisions to estimates	(2)		—		—		(2)		(4)		—		(4)
Payments	(6)		(6)		(17)		(5)		(34)		(1)		(35)

Balance at June 30, 2020	35		57		20		24		136		4		140
Provisions	1		14		3		1		19		—		19
Revisions to estimates	—		(1)		(3)		(1)		(5)		—		(5)
Payments	(5)		(11)		(3)		(6)		(25)		(3)		(28)
Foreign currency	—		—		—		—		—		1		1
Balance at September 30, 2020	$	31	$	59	$	17	$	18	$	125	$	2	$	127


	Reportable Segments
	Clean Air		Powertrain		Ride Performance		Motorparts		Total Reportable Segments		Corporate		Total
Balance at December 31, 2018	$	17	$	15	$	25	$	43	$	100	$	3	$	103
Provisions	5		1		5		4		15		1		16
Payments	(6)		(3)		(5)		(14)		(28)		(2)		(30)
Balance at March 31, 2019	16		13		25		33		87		2		89
Provisions	14		17		10		8		49		—		49
Revisions to estimates	—		—		—		(2)		(2)		—		(2)
Payments	(2)		(4)		(7)		(7)		(20)		(1)		(21)

Balance at June 30, 2019	28		26		28		32		114		1		115
Provisions	6		11		5		4		26		1		27
Revisions to estimates	—		—		—		(2)		(2)		—		(2)
Payments	(7)		(4)		(9)		(13)		(33)		(2)		(35)
Foreign currency	(1)		—		—		—		(1)		—		(1)
Balance at September 30, 2019	$	26	$	33	$	24	$	21	$	104	$	—	$	104


	Nine Months Ended September 30, 2020						Nine Months Ended September 30, 2019
	Employee Costs		Facility Closure and Other Costs		Total		Employee Costs		Facility Closure and Other Costs		Total
Balance at beginning of period	$	97	$	4	$	101	$	98	$	5	$	103
Provisions	10		5		15		11		5		16
Revisions to estimates	(2)		—		(2)		—		—		—
Payments	(23)		(7)		(30)		(25)		(5)		(30)
Foreign currency	(1)		—		(1)		—		—		—
Balance at March 31	81		2		83		84		5		89
Provisions	90		6		96		44		5		49
Revisions to estimates	(4)		—		(4)		(2)		—		(2)
Payments	(31)		(4)		(35)		(16)		(5)		(21)

Balance at June 30	136		4		140		110		5		115
Provisions	16		3		19		22		5		27
Revisions to estimates	(4)		(1)		(5)		(2)		—		(2)
Payments	(24)		(4)		(28)		(29)		(6)		(35)
Foreign currency	1		—		1		(1)		—		(1)
Balance at end of period	$	125	$	2	$	127	$	100	$	4	$	104

During the nine months ended September 30, 2020, as a result of the actions in the Motorparts segment discussed above, asset impairment charges of $25 million were recognized which included $16 million related to the write-down of property, plant, and equipment to its fair value, and $9 million of impairment charge to its operating lease right-of-use assets. Refer to Note 1, Description of Business, for additional information.

The Company evaluates its long-lived assets for impairment whenever events or circumstances indicate the value of these long-lived asset groups are not recoverable. During the first quarter of 2020, the Company concluded impairment triggers had occurred for certain long-lived asset groups in the Ride Performance segment as a result of the effects of the COVID-19 global pandemic on the Company's projected financial information. Accordingly, the Company tested these long-lived asset groups for recoverability by performing undiscounted cash flow analyses. Based on these analyses, the net carrying values of these asset groups exceeded their undiscounted future cash flows. As such, the Company estimated the fair values of these asset groups at March 31, 2020 and compared them to their carrying values. As the net carrying values of these long-lived asset groups exceeded their fair values, the Company recorded long-lived asset impairment charges for property, plant, and equipment of $455 million during the nine months ended September 30, 2020. Refer to Note 9, Fair Value for additional information on the fair value estimates used in these analyses.

As a result of changes in the business, during the first quarter of 2020, the Company assessed and concluded an impairment trigger had occurred for certain long-lived asset groups in its corporate component. Accordingly, the Company tested these long-lived asset groups for recoverability. The Company estimated the fair value of these asset groups and compared it to the carrying value. As the net carrying value exceeded fair value, the Company recorded long-lived asset impairment charges of $17 million during the nine months ended September 30, 2020. Included in the asset impairment charges for the nine months ended September 30, 2020 are $11 million related to property, plant, and equipment and $6 million related to operating lease right-of-use assets.

There are many uncertainties regarding the COVID-19 global pandemic that could negatively affect the Company's results of operations, financial position, and cash flows. As a result, if there is an adverse change to the Company’s projected financial information, due to business performance or market conditions, this may be indicative the value of its long-lived assets are not recoverable, which may result in additional non-cash long-lived asset impairment charges in a future period.