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Restructuring Charges, Net and Asset Impairments
 12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
Restructuring Charges, Net and Asset Impairments Restructuring Charges, Net and Asset Impairments
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, 2020, 2019, and 2018, restructuring charges, net and asset impairments by segment are as follows:
Year to Date December 31, 2020
Clean AirPowertrainRide PerformanceMotorpartsCorporateTotal
Severance and other charges, net$22 $50 $25 $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, asset impairments, and other$22 $54 $480 $44 $22 $622 
Year Ended December 31, 2019
Clean AirPowertrainRide PerformanceMotorpartsCorporateTotal
Severance and other charges, net$29 $31 $28 $14 $11 $113 
Asset impairments related to restructuring actions— — 3 — — 3 
Other non-restructuring asset impairments1 — — 1 — 2 
Impairment of assets held for sale— — — 8 — 8 
Total asset impairment charges1 — 3 9 — 13 
Total restructuring charges, asset impairments, and other$30 $31 $31 $23 $11 $126 
Year Ended December 31, 2018
Clean AirPowertrainRide PerformanceMotorpartsCorporateTotal
Severance and other charges, net$14 $(2)$53 $42 $5 $112 
Asset impairments related to restructuring actions— — 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 

In conjunction with the Company's previously announced Project Accelerate, and in response to the COVID-19 global pandemic, the Company executed global headcount reductions. The Company began implementing these actions during the second quarter of 2020 and expects to complete them during 2021. The Company recognized charges of $26 million in connection with the cash severance costs expected to be paid in connection with these actions for the year ended December 31, 2020.

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. The Company recognized cash severance charges of $65 million expected to be paid under these programs for the year ended December 31, 2020.
Restructuring activities are also 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 recognized severance and other charges of $28 million and $4 million in asset impairment charges related to plant consolidations, relocations, and closures for the year ended December 31, 2020.

Clean Air recognized severance and other charges, and revisions to estimates for the year ended December 31, 2020 as follows:
•$9 million in severance and other charges in connection with Project Accelerate;
•$16 million in severance and other charges, along with a reduction of $2 million in revisions to estimates, in connection with the other cost reduction initiatives primarily in Europe; and
•$5 million in severance and other charges, along with a reduction of $6 million in revisions to estimates, for plant consolidations and closures primarily in Europe and Asia Pacific.

Powertrain recognized severance and other charges, revisions to estimates, and asset impairments related to restructuring actions for the year ended December 31, 2020 as follows:
•$8 million in severance and other charges in connection with Project Accelerate;
•$23 million in severance and other charges, along with a reduction of $1 million in revisions to estimates, in connection with the other cost reduction initiatives primarily in Europe;
•$17 million in severance and other charges, along with a reduction of $5 million in revisions to estimates, and $3 million in asset impairment charges related to plant consolidations, relocations, and closures, primarily in Europe and North America; and
•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 began implementing headcount reductions during 2020 and the program will continue into 2021 through a voluntary early retirement program and a voluntary special termination program. During the year ended December 31, 2020, restructuring costs incurred related to this program were $8 million. Restructuring and related charges expected to be incurred in 2021 aggregate 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.

Ride Performance recognized severance and other charges, and revisions to estimates for the year ended December 31, 2020 as follows:
•$3 million in severance and other charges in connection with Project Accelerate;
•$11 million in severance and other charges, along with a reduction of $3 million in revisions to estimates, in connection with the other cost reduction initiatives primarily in Europe; and
•$15 million in severance and other charges, along with a reduction of $1 million in revisions to estimates, in connection with previously announced plant consolidations, relocations, and closures, primarily in North America.

Motorparts recognized severance and other charges, revisions to estimates, and asset impairments related to restructuring actions for the year ended December 31, 2020 as follows:
•$5 million in severance and other charges in connection with Project Accelerate;
•$7 million in severance and other charges, along with a reduction of $2 million in revisions to estimates, in connection with the other cost reduction initiatives primarily in Europe;
•$4 million in severance and other charges, along with a reduction of $1 million in revisions to estimates, and $1 million in asset impairment charges related to plant consolidations, relocations, and closures primarily in Europe; and
•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. In connection with this action, the Motorparts segment recognized $4 million in restructuring charges related to cash severance expected to be paid. Additionally, 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.

The Company also incurred $4 million in cash severance costs for the elimination of certain redundant positions and $1 million in cash severance costs in connection with Project Accelerate within its corporate component for the year ended December 31, 2020.
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 anticipated achieving in connection with the Federal-Mogul Acquisition. Pursuant to the plan, the Company reduced 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 and decreased previously reported estimates by $6 million, 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 completed these actions in 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.
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, 2020, 2019, and 2018:
Clean AirPowertrainRide PerformanceMotorpartsTotal Reportable SegmentsCorporateTotal
Balance at December 31, 2017$14 $— $7 $4 $25 $— $25 
Federal-Mogul Acquisition— 22 1 14 37 — 37 
Provisions14 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, 201817 15 25 43 100 3 103 
Provisions35 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, 201923 30 23 16 92 9 101 
Provisions30 56 29 20 135 5 140 
Revisions to estimates(8)(6)(4)(3)(21)— (21)
Payments(22)(38)(30)(19)(109)(13)(122)
Foreign currency2 — — — 2 — 2 
Balance at December 31, 2020$25 $42 $18 $14 $99 $1 $100 

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, 2020, 2019, and 2018:
Employee CostsFacility Closure and Other CostsTotal
Balance at December 31, 2017$19 $6 $25 
Federal-Mogul Acquisition37 — 37 
Provisions90 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, 201898 5 103 
Provisions103 22 125 
Revisions to estimates(12)— (12)
Payments(92)(23)(115)
Balance at December 31, 201997 4 101 
Provisions124 16 140 
Revisions to estimates(18)(3)(21)
Payments(106)(16)(122)
Foreign currency2 — 2 
Balance at December 31, 2020$99 $1 $100 
Other non-restructuring asset impairments
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 year ended December 31, 2020. Refer to Note 10, “Fair Value of Financial Instruments” 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 for the year ended December 31, 2020. Included in the asset impairment charges 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.

Impairment of assets held for sale
Refer to Note 3, “Acquisitions and Divestitures”, for additional information on impairments of assets held for sale.