XML 25 R12.htm IDEA: XBRL DOCUMENT v3.20.4
RESTRUCTURING
12 Months Ended
Dec. 31, 2020
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURINGThe Company’s restructuring activities are undertaken as necessary to execute management’s strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company’s business and to relocate operations to best cost locations.
The Company’s restructuring expenses consist primarily of employee termination benefits (principally severance and/or termination benefits) and other costs, which are primarily professional fees and costs related to facility closures and exits.

(in millions)Air Managemente-Propulsion & DrivetrainFuel InjectionAftermarketCorporateTotal
Year ended December 31, 2020
Employee termination benefits$50 $54 $$$44 $157 
Other29 16 — — 46 
Total restructuring expense$79 $70 $$$45 $203 
Year ended December 31, 2019
Employee termination benefits$43 $$— $— $— $44 
Other17 — — 28 
Total restructuring expense$60 $$— $— $$72 
Year ended December 31, 2018
Employee termination benefits$35 $$— $— $— $42 
Other14 — — 25 
Total restructuring expense$49 $10 $— $— $$67 

The following table displays a rollforward of the restructuring liability recorded within the Company's Consolidated Balance Sheets and the related cash flow activity:
(in millions)Employee termination benefitsOtherTotal
Balance at January 1, 2019$25 $$31 
Restructuring expense, net44 28 72 
Cash payments(35)(33)(68)
Foreign currency translation adjustment— — — 
Balance at December 31, 201934 35 
Delphi Technologies acquisition73 75 
Restructuring expense, net157 46 203 
Cash payments(113)(22)(135)
Foreign currency translation adjustment and other(14)(5)
Balance at December 31, 2020$160 $13 $173 
Less: Non-current restructuring liability59 62 
Current restructuring liability at December 31, 2020$101 $10 $111 

In February 2020, the Company announced a cost restructuring plan to address existing structural costs. During the year ended December 31, 2020, the Company recorded $148 million of restructuring related to this plan. These actions are expected to result in a total of $300 million of restructuring costs through 2022. Nearly all of the restructuring charges are expected to be cash expenditures.

In April 2019, the Company announced a cost restructuring plan including several actions to reduce existing structural costs. These actions were primarily completed during fourth quarter 2019 and resulted in approximately $50 million of restructuring expense.

The Company recorded approximately $54 million in restructuring during the three months ended December 31, 2020, related to legacy Delphi Technologies. In conjunction with the acquisition, there were
contractually required severance and post-combination stock-based compensation cash payments to legacy Delphi Technologies executive officers and other employee termination benefits. Additionally, in 2019, legacy Delphi Technologies announced a restructuring plan to reshape and realign its global technical center footprint and reduce salaried and contract staff, with expected charges of up to $175 million. Certain of these actions are subject to consultation with employee works councils and other employee representatives. The majority of these actions are expected to be completed by the end of 2021. Nearly all of the restructuring charges are expected to be cash expenditures.

During the years ended December 31, 2020, 2019 and 2018, the Company incurred restructuring expenses primarily related to these actions:

Air Management
$59 million during the year ended December 31, 2020, primarily related to severance costs, professional fees and a voluntary termination program to reduce existing structural costs.
$19 million during the year ended December 31, 2020, related to the announced closure of a facility in Europe affecting approximately 200 employees, primarily for the statutory minimum benefits and incremental one-time termination benefits negotiated with local labor authorities.
$37 million during the year ended December 31, 2019, related to a voluntary termination program where approximately 350 employees accepted termination packages.
$18 million during the year ended December 31, 2019, primarily for actions related to improving future profitability and competitiveness. This includes professional fees, employee termination benefits and relocation costs.
$5 million during the year ended December 31, 2019, primarily related to severance costs and professional fees for actions to reduce structural costs.
$49 million for the year ended December 31, 2018, primarily related to actions related to improving future profitability and competitiveness. This includes professional fees, employee termination benefits and relocation costs. The largest portion was $28 million of employee severance expense related to a voluntary termination program in the European emissions business where approximately 140 employees accepted the termination packages.

e-Propulsion & Drivetrain
$55 million during the year ended December 31, 2020, related to the announced closure of a facility in Europe affecting approximately 350 employees, primarily for the statutory minimum benefits and incremental one-time termination benefits negotiated with local labor authorities.
$14 million during the year ended December 31, 2020, primarily related to severance costs, equipment relocation and professional fees to reduce existing structural costs.
$6 million for the year ended December 31, 2019, primarily related to professional fees for actions to reduce structural costs and severance costs.
$10 million for the year ended December 31, 2018, primarily related to manufacturing footprint rationalization activities.

Fuel Injection
$8 million during the three months ended December 31, 2020, following the Delphi Technologies acquisition, related to a legacy Delphi Technologies restructuring plan to realign its global technical center footprint and implement headcount reductions.

Corporate
$44 million during the year ended December 31, 2020, primarily related to contractually required severance and stock-based compensation cash payments associated with Delphi Technologies executive officers and other employee termination benefits.
$6 million during the year ended December 31, 2019, primarily for various corporate restructuring actions.
$8 million during the year ended December 31, 2018, primarily related to contractually required severance costs associated with the executive officers of an acquired company and other employee termination benefits.

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 Company continues to evaluate different options across its operations to reduce existing structural costs over the next few years. The Company will recognize restructuring expense associated with any future actions at the time they are approved and become probable or are incurred. Any future actions could result in significant restructuring expense.