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, in the first quarter of 2014, the Company finalized severance agreements with two labor unions at separate facilities in Western Europe for approximately 350 employees. The Company recorded $9.4 million and $44.8 million of restructuring expense in the three and six months ended June 30, 2014, respectively, related to these facilities. Included in this restructuring expense are employee termination benefits of $6.4 million and $38.5 million, respectively, and other expense of $3.0 million and $6.3 million, respectively.

The Company expects additional restructuring expenses to be incurred over the next two years related to the Drivetrain segment, including approximately $20.0 million of employee termination benefits associated with the severance agreements discussed above. These expenses will be recognized 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.

On February 28, 2014, the Company acquired 100% of the equity interests in Gustav Wahler GmbH u. Co. KG and its general partner ("Wahler"). In the second quarter of 2014, the Company initiated actions to improve the future profitability and competitiveness of Wahler and recorded $3.1 million of employee termination benefits for approximately 60 employees in the three and six months ended June 30, 2014. The Company expects additional restructuring expenses to be incurred over the next two years related to the Wahler acquisition.

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 six months ended June 30, 2014:



	Employee Related Accruals
(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
Provision	6.4			3.6			10.0
Cash payments	(2.7		)	(3.9		)	(6.6		)
Translation adjustment	(0.2		)	—			(0.2		)
Balance at June 30, 2014	$	42.8		$	1.6		$	44.4