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Restructuring Charges, Net and Asset Impairments
 12 Months Ended
Dec. 31, 2021
Restructuring and Related Activities [Abstract]  
Restructuring Charges, Net and Asset Impairments Restructuring Charges, Net and Asset Impairments
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. Restructuring charges, net and asset impairments by segment are as follows:

Year Ended December 31, 2021
Year Ended December 31, 2021
Motorparts Performance SolutionsClean AirPowertrainCorporateTotal
Severance and other charges, net$5 $12 $7 $22 $2 $48 
Asset impairments related to restructuring actions2 — — — — 2 
Other non-restructuring asset impairments1 — 1 — 7 9 
Impairment of assets held for sale— — 10 — — 10 
Total asset impairment charges3 — 11 — 7 21 
Total restructuring charges, asset impairments, and other$8 $12 $18 $22 $9 $69 

Severance and other charges, net
In response to the COVID-19 global pandemic, the Company announced Project Accelerate and executed global headcount reductions. The Company began implementing these actions during the second quarter of 2020 and expects to complete them during 2022. The Company recognized a reduction of $4 million in revisions to estimates for the cash severance costs expected to be paid in connection with these actions for the year ended December 31, 2021.

The Company recognized a net charge of $27 million in severance and other charges expected to be paid for cost reduction initiatives aimed at optimizing the Company’s cost structure across all segments and regions for the year ended December 31, 2021.

The Company also recognized severance and other charges of $25 million related to plant consolidations, relocations, and closures for the year ended December 31, 2021.

During the year ended December 31, 2021, the Company made revisions to previously recorded estimates and reduced its restructuring reserves by $36 million due to various changes in the business, including natural attrition and changes in demand.

Motorparts recognized severance and other charges, and revisions to estimates as follows:
•$3 million in connection with its supply chain rationalization and distribution network initiative, which was initiated during the 2nd quarter of 2020, to achieve efficiencies and improve throughput to its customers in North America;
•$2 million, along with a reduction of $7 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and
•$7 million related to plant consolidations, relocations, and closures, primarily in Europe.

Performance Solutions recognized severance and other charges, and revisions to estimates as follows:
•$13 million, along with a reduction of $5 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe;
•$6 million, along with a reduction of $1 million in revisions to estimates, related to plant consolidations, relocations, and closures, primarily in North America; and
•$1 million reduction as a result of revisions to estimates in connection with Project Accelerate.

Clean Air recognized severance and other charges, and revisions to estimates as follows:
•$18 million, along with a reduction of $12 million in revisions to estimates, in connection with the other cost reduction initiatives primarily in Europe;
•$5 million, along with a reduction of $1 million in revisions to estimates, related to plant consolidations and closures primarily in North America and Asia Pacific; and
•$3 million reduction as a result of revisions to estimates in connection with Project Accelerate.

Powertrain recognized severance and other charges, and revisions to estimates as follows:
•$12 million, along with a reduction of $6 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe;
•$9 million related to plant consolidations, relocations, and closures, primarily in Europe; and
•$7 million restructuring costs incurred related to an approved voluntary termination program at one of its European      bearings plants aimed at reducing headcount. At December 31, 2021, total severance related restructuring charges for this program aggregate to $15 million. During the year ended December 31, 2021, an additional $5 million of special termination benefits were approved under this program. Total severance related charges are expected to be approximately $36 million, comprised of approximately $10 million for postemployment benefits, including an early retirement program, and $26 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.

The Company also incurred $2 million in cash and severance costs within its corporate component for the year ended December 31, 2021.

Asset impairments
Asset impairments related to restructuring actions
During the year ended December 31, 2021, as a result of the supply chain rationalization and distribution network in the Motorparts segment, asset impairment charges of $2 million were recognized related to the write-down of property, plant and equipment. Refer to Note 4, “Inventories” for additional information related to this action.

Other non-restructuring asset impairments
During the year ended December 31, 2021, the Motorparts and Clean Air segments recognized asset impairment charges of $1 million and $1 million related to write-down of property, plant and equipment.

During the year ended December 31, 2021, the Company assessed and concluded an impairment trigger had occurred in its corporate component and recognized an impairment charge of $7 million. The asset impairment charge included $3 million related to property, plant and equipment and $4 million related to operating lease right-of-use assets.

Year Ended December 31, 2020
Year Ended December 31, 2020
MotorpartsPerformance SolutionsClean AirPowertrainCorporateTotal
Severance and other charges, net$17 $25 $22 $50 $5 $119 
Asset impairments related to restructuring actions26 — — 3 — 29 
Other non-restructuring asset impairments— 455 — — 17 472 
Impairment of assets held for sale1 — — 1 — 2 
Total asset impairment charges27 455 — 4 17 503 
Total restructuring charges, asset impairments, and other$44 $480 $22 $54 $22 $622 

Severance and other charges, net
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. As noted above, the Company began implementing these actions during the second quarter of 2020. 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.
The Company recognized severance and other charges of $28 million related to plant consolidations, relocations, and closures for the year ended December 31, 2020.

Motorparts recognized severance and other charges, and revisions to estimates as follows:
•$5 million in connection with Project Accelerate;
•$7 million, along with a reduction of $2 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe;
•$4 million, along with a reduction of $1 million in revisions to estimates related to plant consolidations, relocations, and closures primarily in Europe; and
• $4 million in connection with its supply chain rationalization and distribution network initiative to achieve efficiencies and improve throughput to its customers in North America.

Performance Solutions recognized severance and other charges, and revisions to estimates as follows:
•$3 million in connection with Project Accelerate;
•$11 million, along with a reduction of $3 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and
•$15 million, along with a reduction of $1 million in revisions to estimates, related to plant consolidations, relocations, and closures, primarily in North America.

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

Powertrain recognized severance and other charges, and revisions to estimates as follows:
•$8 million in connection with Project Accelerate;
•$23 million, along with a reduction of $1 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe;
•$17 million, along with a reduction of $5 million in revisions to estimates 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 continued 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.

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.

Asset impairments
Asset impairments related to restructuring actions
In the second quarter of 2020, the Motorparts segment initiated a rationalization of its supply chain and distribution network resulting in asset impairment charges of $25 million, 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.

During the year ended December 31, 2020, as a result of actions in the Motorparts and Powertrain segments, asset impairment charges of $1 million and $3 million were recognized related to the write-down of property, plant and equipment.
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 Performance Solutions 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 8, “Financial Instruments and 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 for the year ended December 31, 2020. Included in the asset impairment charges for the year ended December 31, 2020 are $11 million related to property, plant and equipment and $6 million related to operating lease right-of-use assets.

Year Ended December 31, 2019
Year Ended December 31, 2019
MotorpartsPerformance SolutionsClean AirPowertrainCorporateTotal
Severance and other charges, net$14 $28 $29 $31 $11 $113 
Asset impairments related to restructuring actions— 3 — — — 3 
Other non-restructuring asset impairments1 — 1 — — 2 
Impairment of assets held for sale8 — — — — 8 
Total asset impairment charges9 3 1 — — 13 
Total restructuring charges, asset impairments, and other$23 $31 $30 $31 $11 $126 

The Company initiated several cost reduction initiatives across all segments and regions aimed at optimizing the Company’s cost structure. The Company recognized cash severance charges of $69 million expected to be paid under these programs for the year ended December 31, 2019. In addition, the Company recognized severance and other charges of $44 million related to plant consolidations, relocations, and closures for the year ended December 31, 2019.

Severance and other charges, net
Motorparts recognized severance and other charges, and revisions to estimates as follows:
•$13 million, along with a reduction of $3 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and
•$6 million, along with a reduction of $2 million in revisions to estimates related to plant consolidations, relocations, and closures primarily in North America and Europe.

Performance Solutions recognized severance and other charges, and revisions to estimates as follows:
•$10 million, along with a reduction of $1 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and
•$19 million related to plant consolidations, relocations, and closures, primarily in North America.

Clean Air recognized severance and other charges, and revisions to estimates as follows:
•$18 million, along with a reduction of $4 million in revisions to estimates, in connection with cost reduction initiatives primarily in Europe; and
•$17 million, along with a reduction of $2 million in revisions to estimates, related to plant consolidations and closures primarily in Europe and Asia Pacific.

Powertrain recognized severance and other charges as follows:
•$25 million in connection with cost reduction initiatives primarily in Europe; and
•$6 million related to plant consolidations, relocations, and closures, primarily in North America.
The Company also incurred $11 million in cash and severance costs within its corporate component for the year ended December 31, 2019.

Asset impairments
Asset impairments related to restructuring actions
During the year ended December 31, 2019, as a result of actions in the Performance Solutions segment, an asset impairment charge of $3 million was recognized related to the write-down of property, plant and equipment.

Other non-restructuring asset impairments
During the year ended December 31, 2019, the Motorparts and Clean Air segments recognized asset impairment charges of $1 million and $1 million related to write-down of property, plant and equipment.

Restructuring Reserve Rollforward
The following table provides a summary of the Company’s consolidated restructuring liabilities and related activity for each type of exit costs:
Employee CostsFacility Closure and Other CostsTotal
Balance at December 31, 2018$98 $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, 202099 1 100 
Provisions74 10 84 
Revisions to estimates(36)— (36)
Payments(72)(11)(83)
Foreign currency(2)— (2)
Balance at December 31, 2021$63 $— $63