Restructuring of Operations

Our restructuring activities have historically included rationalizing our operating footprint by consolidating facilities, positioning operations in lower cost locations and reducing overhead costs. In recent years, however, in response to lower demand and other market conditions in certain businesses, our focus has primarily been headcount reduction initiatives to reduce operating costs. Restructuring expense includes costs associated with current and previously announced actions and is comprised of contractual and noncontractual separation costs and exit costs, including costs associated with lease continuation obligations and certain operating costs of facilities that we are in the process of closing.

During the second quarter of 2017, we approved plans to implement certain headcount reduction initiatives in our Off-Highway business as part of the BPT and BFP acquisition integration which resulted in restructuring expense of $8, primarily for severance and benefit costs. In each of this year's first and second quarters, we recognized restructuring expense of $2 primarily for exist costs associated with continued execution of previously announced actions.

During the second quarter of 2016, we announced closure of our Commercial Vehicle manufacturing facility in Glasgow, Kentucky. Including costs associated with this closure and other previously announced initiatives, restructuring expense during the second quarter of 2016 was $4 of severance and benefits costs and $1 of exit costs. Restructuring expense of $1 in last year's first quarter also primarily represented continuing exit costs associated with previously announced actions.

Accrued restructuring costs and activity, including noncurrent portion —



	Employee Termination Benefits			Exit Costs			Total
Balance at March 31, 2017	$	20		$	6		$	26
Charges to restructuring	8			2			10
Cash payments	(3		)	(2		)	(5		)
Currency impact	1						1
Balance at June 30, 2017	$	26		$	6		$	32

Balance at December 31, 2016	$	32		$	6		$	38
Charges to restructuring	8			4			12
Cash payments	(15		)	(4		)	(19		)
Currency impact	1						1
Balance at June 30, 2017	$	26		$	6		$	32

At June 30, 2017, the accrued employee termination benefits include costs to reduce approximately 400 employees to be completed over the next year. The exit costs relate primarily to lease continuation obligations.

Cost to complete — The following table provides project-to-date and estimated future restructuring expenses for completion of our approved restructuring initiatives for our business segments at June 30, 2017.



	Expense Recognized						Future Cost to Complete
	Prior to 2017		2017		Total to Date		Future Cost to Complete
Light Vehicle	$	10	$	1	$	11	$	1
Commercial Vehicle	41		3		44		13
Off-Highway	6		8		14
Total	$	57	$	12	$	69	$	14

The future cost to complete includes estimated separation costs, primarily those associated with one-time benefit programs, and exit costs through 2021, including lease continuation costs, equipment transfers and other costs which are required to be recognized as closures are finalized or as incurred during the closure.