Restructuring

In the third quarter of 2017, the Company initiated actions within its Engine segment designed to improve future profitability and competitiveness and started exploring strategic options for the non-core product lines. As a continuation of these actions, the Company recorded restructuring expense of $7 million and $5 million during the three months ended March 31, 2019 and 2018, respectively, primarily related to professional fees and employee termination benefits. Additionally, in the first quarter of 2019, the Company initiated a separate voluntary termination program in the Engine segment and recorded restructuring expense of $4 million in the three months ended March 31, 2019. The Company will continue its plan to improve the future profitability and competitiveness of its business in the Engine segment. These actions may result in the recognition of additional restructuring charges that could be material.

Additionally, the Company recorded restructuring expense of $2 million in the three months ended March 31, 2018 in the Drivetrain segment primarily related to manufacturing footprint rationalization activities.

The Company recorded restructuring expense of $3 million in the three months ended March 31, 2019 related to Corporate restructuring activities.

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 tables display a rollforward of the severance accruals recorded within the Company's Condensed Consolidated Balance Sheet and the related cash flow activity for the three months ended March 31, 2019 and 2018:



	Severance Accruals
(in millions)	Drivetrain		Engine			Total
Balance at December 31, 2018	$	4	$	21		$	25
Provision	—		7			7
Cash payments	—		(20		)	(20		)
Balance at March 31, 2019	$	4	$	8		$	12



	Severance Accruals
(in millions)	Drivetrain			Engine			Total
Balance at December 31, 2017	$	4		$	1		$	5
Provision	1			1			2
Cash payments	(1		)	(1		)	(2		)
Translation adjustment	1			—			1
Balance at March 31, 2018	$	5		$	1		$	6