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 2014, the Company finalized severance agreements with two labor unions at separate facilities in Western Europe for approximately 350 employees. The Company recorded restructuring expense related to these facilities of $7.9 million and $15.2 million for the three and six months ended June 30, 2015, respectively, and $9.4 million and $44.8 million for the three and six months ended June 30, 2014, respectively. Included in this restructuring expense are employee termination benefits of $6.8 million and $13.2 million for the three and six months ended June 30, 2015, respectively, and $6.4 million and $38.5 million for the three and six months ended June 30, 2014, respectively. Also included is other restructuring expense of $1.1 million and $2.0 million for the three and six months ended June 30, 2015, respectively, and $3.0 million and $6.3 million for the three and six months ended June 30, 2014 respectively.

The Company expects negligible restructuring expense related to employee termination benefits to be incurred in the remainder of 2015 related to the Drivetrain segment. Cash payments for these restructuring activities are expected to be complete by the end of 2015.

In the second quarter of 2014, the Company initiated actions to improve the future profitability and competitiveness of Gustav Wahler GmbH u. Co. KG and its general partner ("Wahler") and recorded $3.1 million of employee termination benefits in the three and six months ended June 30, 2014. These termination benefits relate to approximately 60 employees in Germany, Brazil and China.

The Company recorded restructuring expense of $9.4 million and $12.1 million for the three and six months ended June 30, 2015, respectively, and $2.0 million and $3.1 million for the three and six months ended June 30, 2014, respectively, related to a global realignment plan intended to enhance treasury management flexibility by creating a legal entity structure that better aligns with the Company's business strategy.

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 severance accruals recorded within the Company's Condensed Consolidated Balance Sheet and the related cash flow activity for the three and six months ended June 30, 2015 and 2014:



	Severance Accruals
(in millions)	Drivetrain			Engine			Total
Balance at December 31, 2014	$	41.9		$	2.0		$	43.9
Provision	7.4			0.4			7.8
Cash payments	(10.7		)	(0.9		)	(11.6		)
Translation adjustment	(4.7		)	(0.2		)	(4.9		)
Balance at March 31, 2015	$	33.9		$	1.3		$	35.2
Provision	6.8			2.6			9.4
Cash payments	(25.9		)	(1.7		)	(27.6		)
Translation adjustment	1.3			—			1.3
Balance at June 30, 2015	$	16.1		$	2.2		$	18.3



	Severance Accruals
(in millions)	Drivetrain			Engine			Total
Balance at December 31, 2013	$	8.4		$	2.9		$	11.3
Provision	32.1			0.7			32.8
Cash payments	(1.2		)	(1.7		)	(2.9		)
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