RESTRUCTURING

Delphi’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing Delphi’s strategy, either in the normal course of business or pursuant to significant restructuring programs.

As part of Delphi's continued efforts to optimize its cost structure, it has undertaken several restructuring programs which include workforce reductions as well as plant closures. These programs are primarily focused on the continued rotation of our manufacturing footprint to low cost locations in Europe and on reducing global overhead costs. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $328 million during the year ended December 31, 2016. These charges included $103 million for programs implemented to reduce global overhead costs, as well as $170 million for programs focused on the continued rotation of our manufacturing footprint to low cost locations in Europe, $93 million of which related to the closure of a European manufacturing site within the Powertrain Systems segment. Cash payments for this restructuring action are expected to be principally completed in 2017. Additionally, Delphi recognized non-cash asset impairment charges of $25 million during the year ended December 31, 2016 related to this plant closure, which were recorded within cost of sales.

During the year ended December 31, 2015, Delphi recorded employee-related and other restructuring charges totaling approximately $177 million, primarily related to Delphi's on-going restructuring programs focused on aligning manufacturing capacity with the levels of automotive production in Europe and South America, and the continued rotation of our manufacturing footprint to low cost locations within these regions. These charges included the recognition of approximately $68 million of employee-related and other costs related to the initiation of a workforce reduction at a European manufacturing site within the Powertrain Systems segment. During the year ended December 31, 2014, Delphi recorded employee related and other restructuring charges totaling approximately $140 million, which included the recognition of approximately $35 million of employee-related and other costs related to the initiation of a workforce reduction at a European manufacturing site within the Powertrain Systems segment.

Additionally, the Company recorded $0, $3 million and $4 million of restructuring costs within discontinued operations related to the Thermal Systems business during the years ended December 31, 2016, 2015 and 2014, respectively.

Restructuring charges for employee separation and termination benefits are paid either over the severance period or in a lump sum in accordance with either statutory requirements or individual agreements. Delphi incurred cash expenditures related to its restructuring programs of approximately $255 million and $133 million in the years ended December 31, 2016 and December 31, 2015, respectively.

The following table summarizes the restructuring charges recorded for the years ended December 31, 2016, 2015 and 2014 by operating segment:



	Year Ended December 31,
	2016		2015		2014
	(in millions)
Electrical/Electronic Architecture	$	117	$	37	$	57
Powertrain Systems	172		115		55
Electronics and Safety	39		25		28
Total	$	328	$	177	$	140

The table below summarizes the activity in the restructuring liability for the years ended December 31, 2016 and 2015:



	Employee Termination Benefits Liability			Other Exit Costs Liability			Total
	(in millions)
Accrual balance at January 1, 2015	$	95		$	2		$	97
Provision for estimated expenses incurred during the year	175			2			177
Payments made during the year	(131		)	(2		)	(133		)
Foreign currency and other	(10		)	—			(10		)
Accrual balance at December 31, 2015	$	129		$	2		$	131
Provision for estimated expenses incurred during the year	$	322		$	6		$	328
Payments made during the year	(252		)	(3		)	(255		)
Foreign currency and other	(6		)	—			(6		)
Accrual balance at December 31, 2016	$	193		$	5		$	198