ASSETS HELD FOR SALE

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

ASSETS HELD FOR SALE

HELD FOR SALE AND DISCONTINUED OPERATIONS

Held for Sale Operations

The Company classifies assets and liabilities as held for sale ("disposal group") when management, having the authority to approve the action, commits to a plan to sell the disposal group, the sale is probable within one year, and the disposal group is available for immediate sale in its present condition. The Company also considers whether an active program to locate a buyer has been initiated, whether the disposal group is marketed actively for sale at a price that is reasonable in relation to its current fair value, and whether actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or the plan will be withdrawn.

The Company aggregates the assets and aggregates the liabilities of all held for sale disposal groups on the balance sheet for the period in which the disposal group is held for sale. The Company has classified assets of $3 million as held for sale. These held for sale assets have been recorded in "Prepaid expenses and other current assets" as of June 30, 2016. As part of the evaluation to classify these assets as held for sale, the Company recorded an impairment loss in the amount of $3 million during the six months ended June 30, 2016 which has been included in "Restructuring charges and asset impairments, net" in the condensed consolidated statements of operations.

In 2015, the Company entered into a share agreement to sell 100% of the shares of one of its subsidiaries in the Powertrain segment along with certain related assets of another subsidiary. The Company classified the assets and liabilities related to this transaction as held for sale. Prior to December 31, 2015, the Company contributed $12 million in cash to the subsidiary. The transaction closed on January 1, 2016 with no additional amounts recognized for the six months ended June 30, 2016.

Discontinued Operations

In connection with its strategic planning process, the Company assesses its operations for market position, product technology and capability, and profitability. Those businesses not core to the Company’s long-term portfolio may be considered for divestiture or other exit activities. During the three months ended June 30, 2015, the Company recognized a $7 million adjustment (no income tax effect) which is included in “Gain from discontinued operations, net of income tax” during the three and six months ended June 30, 2015.