RESTRUCTURING

The Company’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, either in the normal course of business or pursuant to significant restructuring programs.

As part of Delphi Technologies’ 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. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $12 million and $23 million during the three and six months ended June 30, 2018, respectively, of which $5 million and $13 million was recognized for programs focused on the continued rotation of our manufacturing footprint to best cost locations in Europe and $1 million and $2 million was recognized for programs implemented to reduce global overhead costs. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $66 million and $76 million during the three and six months ended June 30, 2017, respectively, which included the recognition of approximately $53 million for employee-related and other costs for approximately 500 employees due to the initiation of the closure of a Western European manufacturing site within the Powertrain Systems segment pursuant to the Company’s on-going European footprint rotation strategy. Cash payments for this restructuring action are expected to be principally completed by 2020.

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 Technologies incurred cash expenditures related to its restructuring programs of approximately $40 million and $46 million in the six months ended June 30, 2018 and 2017, respectively.

The following table summarizes the restructuring charges recorded for the three and six months ended June 30, 2018 and 2017 by operating segment:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017

	(in millions)
Powertrain Systems	$	11	$	64	$	22	$	68
Delphi Technologies Aftermarket	1		2		1		8
Total	$	12	$	66	$	23	$	76

The table below summarizes the activity in the restructuring liability for the six months ended June 30, 2018:



	Employee Termination Benefits Liability			Other Exit Costs Liability			Total

	(in millions)
Accrual balance at January 1, 2018	$	98		$	3		$	101
Provision for estimated expenses incurred during the period	21			2			23
Payments made during the period	(37		)	(3		)	(40		)
Foreign currency and other	(1		)	(1		)	(2		)
Accrual balance at June 30, 2018	$	81		$	1		$	82