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RESTRUCTURING CHARGES AND ASSET IMPAIRMENTS
 12 Months Ended
Dec. 31, 2016
Restructuring and Related Activities [Abstract]  
RESTRUCTURING CHARGES AND ASSET IMPAIRMENTS
RESTRUCTURING CHARGES 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 productivity improvements and 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), facility closure and other costs, curtailment losses (gains) related to reductions of pension and postretirement medical benefit obligations as a result of headcount reductions, and asset impairments related to restructuring activities.

For the years ended December 31, 2016, 2015, and 2014, restructuring charges and asset impairments,net include the following:
 
 
Year Ended December 31,
 
 
2016
 
2015
 
2014
 
 
Powertrain
Motorparts
Total
 
Powertrain
Motorparts
Total
 
Powertrain
Motorparts
Corporate
Total
Severance and other charges, net
 
$
(21
)
$
(6
)
$
(27
)
 
$
(33
)
$
(56
)
$
(89
)
 
$
(59
)
$
(26
)
$
(1
)
$
(86
)
Asset impairments related to restructuring activities
 
—

—

—

 
(1
)
(2
)
(3
)
 
(2
)
(1
)
—

(3
)
Total Restructuring charges
 
(21
)
(6
)
(27
)
 
(34
)
(58
)
(92
)
 
(61
)
(27
)
(1
)
(89
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other asset impairments
 
—

—

—

 
(16
)
(1
)
(17
)
 
(5
)
(11
)
—

(16
)
Impairment of assets held for sale
 
—

(17
)
(17
)
 
(12
)
—

(12
)
 
—

—

—

—

Impairment of nonconsolidated affiliate
 
—

—

—

 
—

—

—

 
—

(5
)
—

(5
)
Total asset impairment charges
 
—

(17
)
(17
)
 
(28
)
(1
)
(29
)
 
(5
)
(16
)
—

(21
)
Total restructuring charges and asset impairments
 
$
(21
)
$
(23
)
$
(44
)
 
$
(62
)
$
(59
)
$
(121
)
 
$
(66
)
$
(43
)
$
(1
)
$
(110
)


Restructuring
Estimates of restructuring charges are based on information available at the time such charges are recorded. In certain countries where the Company operates, statutory requirements include involuntary termination benefits that extend several years into the future. Accordingly, severance payments continue well past the date of termination at many international locations. Thus, restructuring programs appear to be ongoing when terminations and other activities have been substantially completed.

Restructuring opportunities include potential plant closures and employee headcount reductions in various countries and require consultation with various parties including, but not limited to, unions/works councils, local governments, and/or customers. The consultation process can take a significant amount of time and affect the final outcome and timing. The Company's policy is to record a provision for qualifying restructuring costs in accordance with the applicable accounting guidance when the outcome of such consultations becomes probable.

Management expects to finance its restructuring programs through cash generated from its ongoing operations or through cash available under its existing credit facilities, subject to the terms of applicable covenants. Management does not expect the execution of these programs will have an adverse effect on its liquidity position.
 
The following table is a summary of the Company’s consolidated restructuring liabilities and related activity as of and for the years ended December 31, 2016, 2015, and 2014 by reporting segment.
 
 
Powertrain
 
Motorparts
 
Total
Reporting
Segment
 
Corporate
 
Total
Company
Balance at December 31, 2013
 
$
8

 
$
14

 
$
22

 
$
2

 
$
24

Provisions
 
59

 
27

 
86

 
1

 
87

Reversals
 
—

 
(1
)
 
(1
)
 
—

 
(1
)
Payments
 
(27
)
 
(24
)
 
(51
)
 
(2
)
 
(53
)
Foreign currency
 
(4
)
 
—

 
(4
)
 
—

 
(4
)
Balance at December 31, 2014
 
36

 
16

 
52

 
1

 
53

Provisions
 
38

 
55

 
93

 
—

 
93

Reversals
 
(4
)
 
—

 
(4
)
 
—

 
(4
)
Payments
 
(35
)
 
(22
)
 
(57
)
 
(1
)
 
(58
)
Acquisition
 
2

 
—

 
2

 
—

 
2

Foreign currency
 
(4
)
 
(2
)
 
(6
)
 
—

 
(6
)
Balance at December 31, 2015
 
33

 
47

 
80

 
—

 
80

Provisions
 
21

 
13

 
34

 
—

 
34

Reversals
 
—

 
(7
)
 
(7
)
 
—

 
(7
)
Payments
 
(26
)
 
(24
)
 
(50
)
 


 
(50
)
Foreign currency
 
—

 
(2
)
 
(2
)
 
—

 
(2
)
Balance at December 31, 2016
 
$
28

 
$
27

 
$
55

 
$
—

 
$
55




The following table provides a summary of the Company’s consolidated restructuring liabilities and related activity for each type of exit cost as of and for the years ended December 31, 2016, 2015, and 2014. As the table indicates, facility closure costs are typically paid within the year of incurrence.
 
 
Employee
Costs
 
Facility Closure and Other Costs
 
Total
Balance at December 31, 2013
 
$
24

 
$
—

 
$
24

Provisions
 
77

 
10

 
87

Reversals
 
(1
)
 
—

 
(1
)
Payments
 
(45
)
 
(8
)
 
(53
)
Foreign Currency
 
(4
)
 
—

 
(4
)
Balance at December 31, 2014
 
51

 
2

 
53

Provisions
 
85

 
8

 
93

Reversals
 
(4
)
 
—

 
(4
)
Payments
 
(49
)
 
(9
)
 
(58
)
Acquisitions
 
2

 
—

 
2

Foreign Currency
 
(6
)
 
—

 
(6
)
Balance at December 31, 2015
 
79

 
1

 
80

Provisions
 
30

 
4

 
34

Reversals
 
(7
)
 
—

 
(7
)
Payments
 
(46
)
 
(4
)
 
(50
)
Acquisitions
 
—

 
—

 
—

Foreign Currency
 
(2
)
 
—

 
(2
)
Balance at December 31, 2016
 
$
54

 
$
1

 
$
55



Restructuring charges and asset impairments for the year ended December 31, 2016 were comprised of $21 million related to the Powertrain segment and $23 million related to the Motorparts segment. The specific components of the restructuring and asset impairment charges by region are as follows:
 
December 31, 2016
 
Severance Related Charges
 
Exit and Other Charges
 
Impairment Charges
 
Total Restructuring Charges
 
Motorparts(a)
 
Powertrain
 
Motorparts
 
Powertrain
 
Motorparts
 
Powertrain
 
EMEA
$
1

 
$
(16
)
 
$
(1
)
 
$
(2
)
 
$
(4
)
 
$
—

 
$
(22
)
North America
(3
)
 
(2
)
 
(3
)
 
—

 
(1
)
 
—

 
(9
)
ROW
—

 
(1
)
 
—

 
—

 
(12
)
 
—

 
(13
)
 
$
(2
)
 
$
(19
)
 
$
(4
)
 
$
(2
)
 
$
(17
)
 
$
—

 
$
(44
)
(a) The EMEA region in the Motorparts segment recognized $6 million in severance related charges offset by a reduction in previously recorded estimates of $7 million during the year ended December 31, 2016.


Restructuring expenses for the year ended December 31, 2016 are aimed at optimizing the Company's cost structure. The Company expects to complete these programs in 2017 and does not expect to incur additional restructuring charges for these programs. For programs previously initiated in prior years, the Company expects to complete the majority of these programs in 2018 and does not expect to incur additional restructuring charges for these programs

Restructuring charges and asset impairments for the year ended December 31, 2015 were comprised of $62 million related to the Powertrain segment and $59 million related to the Motorparts segment. The specific components of the restructuring and asset impairment charges by region are as follows:
 
December 31, 2015
 
Severance Related Charges
 
Exit and Other Charges
 
Impairment Charges
 
Total Restructuring Charges
 
Motorparts
 
Powertrain
 
Motorparts
 
Powertrain
 
Motorparts
 
Powertrain
 
EMEA
$
(45
)
 
$
(27
)
 
$
(1
)
 
$
(3
)
 
$
(2
)
 
$
(20
)
 
$
(98
)
North America
(5
)
 
—

 
(3
)
 
—

 
—

 
(1
)
 
(9
)
ROW
(2
)
 
(2
)
 
—

 
(1
)
 
(1
)
 
(8
)
 
(14
)
 
$
(52
)
 
$
(29
)
 
$
(4
)
 
$
(4
)
 
$
(3
)
 
$
(29
)
 
$
(121
)


Restructuring charges and asset impairments for the year ended December 31, 2014 were comprised of $66 million related to the Powertrain segment $43 million related to the Motorparts segment and $1 million in corporate charges. The specific components of the restructuring and asset impairment charges by region are as follows:
 
December 31, 2014
 
Severance Related Charges
 
Exit and Other Charges
 
Impairment Charges
 
Total Restructuring Charges (a)
 
Motorparts
 
Powertrain
 
Motorparts
 
Powertrain
 
Motorparts
 
Powertrain
 
EMEA
$
(15
)
 
$
(44
)
 
$
(2
)
 
$
(5
)
 
$
(14
)
 
$
(7
)
 
$
(87
)
North America
(7
)
 
(3
)
 
(2
)
 
(1
)
 
(1
)
 
—

 
(14
)
ROW
—

 
(6
)
 
—

 
—

 
(2
)
 
—

 
(8
)
 
$
(22
)
 
$
(53
)
 
$
(4
)
 
$
(6
)
 
$
(17
)
 
$
(7
)
 
$
(109
)
(a) Corporate charges of $1 million are excluded from total restructuring charges in above table.

Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially estimated. Accordingly, the Company reduced its liability previously recorded in 2016, 2015, and 2014 by $7 million, $4 million, and $1 million.

See Note 6, Held for Sale and Discontinued Operations, for further details related to the $17 million impairment loss on assets held for sale.

See Note 8, Fair Value Measurements and Financial Instruments, for further details related to property, plant, and equipment fair value measurements.