RESTRUCTURING

Aptiv’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 Aptiv’s strategy, either in the normal course of business or pursuant to significant restructuring programs.

As part of Aptiv'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 best cost locations in Europe and on reducing global overhead costs, including programs implemented to realign the Company's organizational structure due to changes in roles and workforce as a result of the spin-off of the former Powertrain Systems segment. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $129 million during the year ended December 31, 2017, of which $89 million was recognized for programs focused on the continued rotation of our manufacturing footprint to best cost locations in Europe. The charges recorded during the the year ended December 31, 2017 included the recognition of approximately $36 million of employee-related and other costs related to the initiation of a program to close a Western European Advanced Safety and User Experience manufacturing site, pursuant to the Company's on-going European footprint rotation strategy. Cash payments for this restructuring action are expected to be principally completed by 2019.

During the year ended December 31, 2016, Aptiv recorded employee-related and other restructuring charges totaling approximately $167 million, primarily focused on the continued rotation of our manufacturing footprint to best cost locations in Europe and on reducing global overhead costs. These charges included $91 million for programs implemented to reduce global overhead costs, as well as $39 million for programs focused on the continued rotation of our manufacturing footprint to best cost locations in Europe. During the year ended December 31, 2015, the Company recorded employee-related and other restructuring charges totaling approximately $65 million, primarily related to 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.

Additionally, the Company recorded $90 million, $161 million and $115 million of restructuring costs within discontinued operations, primarily related to the Powertrain Systems business, during the years ended December 31, 2017, 2016 and 2015, respectively. These amounts were primarily incurred related to the Company's on-going European footprint rotation strategy, and included charges for the closures of European manufacturing sites in each year, which totaled $54 million, $93 million and $68 million during the years ended December 31, 2017, 2016 and 2015, 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. Aptiv incurred cash expenditures related to its restructuring programs of approximately $127 million and $90 million in the years ended December 31, 2017 and December 31, 2016, respectively.

The following table summarizes the restructuring charges recorded for the years ended December 31, 2017, 2016 and 2015 by operating segment:



	Year Ended December 31,
	2017		2016		2015
	(in millions)
Signal and Power Solutions	$	67	$	125	$	39
Advanced Safety and User Experience	62		42		26
Total	$	129	$	167	$	65

The table below summarizes the activity in the restructuring liability for the years ended December 31, 2017 and 2016:



	Employee Termination Benefits Liability			Other Exit Costs Liability		Total
	(in millions)
Accrual balance at January 1, 2016	$	37		$	—	$	37
Provision for estimated expenses incurred during the year	166			1		167
Payments made during the year	(90		)	—		(90		)
Foreign currency and other	1			—		1
Accrual balance at December 31, 2016	$	114		$	1	$	115
Provision for estimated expenses incurred during the year	$	129		$	—	$	129
Payments made during the year	(127		)	—		(127		)
Foreign currency and other	15			—		15
Accrual balance at December 31, 2017	$	131		$	1	$	132