Note 4. Restructuring Activities

During the three months ended March 31, 2016 and 2015, the Company recorded $10 million, net of reversals, and $4 million of restructuring expenses, respectively, including $1 million for the three months ended March 31, 2015 related to discontinued operations. Given the economically-sensitive and highly competitive nature of the automotive electronics industry, the Company continues to closely monitor current market factors and industry trends taking action as necessary, including but not limited to, additional restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows.

Electronics

During the first quarter of 2016, the Company announced a restructuring program to transform the Company's engineering organization and supporting functional areas to focus on execution and technology. The organization will be comprised of regional engineering, product management and advanced technologies, and global centers of competence. Through March 31, 2016, the Company has recorded approximately $11 million of restructuring expenses under this program, associated with approximately 90 employees, which remains accrued as of March 31, 2016. The Company expects to record additional restructuring costs related to this program as the underlying plan is finalized.

During the fourth quarter of 2015, the Company announced a restructuring program designed to reduce the workforce at a European Electronics facility. The Company recorded $12 million of severance and termination benefits under this program associated with approximately 100 employees, of which $11 million remains accrued as of March 31, 2016. The Company expects to record additional restructuring costs related to this program as the underlying plan is finalized.

In connection with the Electronics Acquisition, the Company commenced a restructuring program designed to achieve annual cost savings through transaction synergies of approximately $70 million. During the three months ended March 31, 2015, the Company recorded $2 million of severance and termination benefits under this program associated with approximately 55 employees and $1 million in legal and consulting fees. As of March 31, 2016, $9 million remains accrued for this program and charges are considered substantially complete.

Other

During the three months ended March 31, 2015, the Company recorded $1 million of restructuring expenses, classified as discontinued operations, related to employee and severance termination benefits in connection with the reorganization of the Company's Climate operations in France.

Restructuring Reserves

Restructuring reserve balances of $36 million and $38 million at March 31, 2016 and December 31, 2015, respectively, are classified as "Other current liabilities" on the consolidated balance sheets. The Company anticipates that the activities associated with the restructuring reserve balance will be substantially completed by the end of 2016. The Company’s consolidated restructuring reserves and related activity are summarized below, including amounts associated with discontinued operations.



	Electronics			Other		Total
	(Dollars in Millions)
December 31, 2015	$	33		$	5	$	38
Expense	11			—		11
Utilization	(13		)	—		(13		)
Reversals	(1		)	—		(1		)
Foreign currency	1			—		1
March 31, 2016	$	31		$	5	$	36

Utilization represents payments for severance and other employee termination benefits and special termination benefits reclassified to pension and other postretirement employee benefit liabilities, where such payments are made from the Company’s benefit plans.