Restructuring

In the fourth quarter of 2013, the Company initiated actions primarily in the Drivetrain segment designed to improve future profitability and competitiveness. As a continuation of these actions, the Company finalized severance agreements with two labor unions at separate facilities in Western Europe for approximately 350 employees. The Company recorded $39.5 million of restructuring expense in the first quarter of 2014, primarily related to one of these facilities. Included in this restructuring expense are employee termination benefits of $32.8 million and other expense of $6.7 million.

The Company expects an additional $26.0 million of employee termination benefits to be incurred over the next two years as employees render service in accordance with terms of the agreements. Future cash payments for these restructuring activities are expected to be complete by the end of 2015.

Estimates of restructuring expense are based on information available at the time such charges are recorded. Due to the inherent uncertainty involved in estimating restructuring expenses, actual amounts paid for such activities may differ from amounts initially recorded. Accordingly, the Company may record revisions of previous estimates by adjusting previously established accruals.

The following table displays a rollforward of the employee related restructuring accruals recorded within the Company's Consolidated Balance Sheet and the related cash flow activity for the three months ended March 31, 2014:



	Employee Related Costs
(millions of dollars)	Drivetrain			Engine			Total
Balance at December 31, 2013	$	8.4		$	2.8		$	11.2
Provision	32.1			0.7			32.8
Cash payments	(1.2		)	(1.6		)	(2.8		)
Translation adjustment	—			—			—
Balance at March 31, 2014	$	39.3		$	1.9		$	41.2