The 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.


	Three Months Ended June 30, 2022
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Corporate		Total
Employee termination benefits	$	7	$	14	$	2	$	(1)	$	22
Other	—		3		2		—		5
Total restructuring expense	$	7	$	17	$	4	$	(1)	$	27

	Three Months Ended June 30, 2021
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Corporate		Total
Employee termination benefits	$	9	$	3	$	24	$	—	$	36
Other	3		20		—		3		26
Total restructuring expense	$	12	$	23	$	24	$	3	$	62

	Six Months Ended June 30, 2022
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Corporate		Total
Employee termination benefits	$	14	$	14	$	3	$	(1)	$	30
Other	—		10		2		—		12
Total restructuring expense	$	14	$	24	$	5	$	(1)	$	42

	Six Months Ended June 30, 2021
(in millions)	Air Management		e-Propulsion & Drivetrain		Fuel Systems		Corporate		Total
Employee termination benefits	$	23	$	7	$	27	$	—	$	57
Other	6		26		—		3		35
Total restructuring expense	$	29	$	33	$	27	$	3	$	92


(in millions)	Employee Termination Benefits		Other		Total
Balance at January 1, 2022	$	126	$	13	$	139
Restructuring expense, net	30		12		42
Cash payments	(64)		(17)		(81)
Foreign currency translation adjustment and other	(5)		2		(3)

Balance at June 30, 2022	87		10		97
Less: Non-current restructuring liability	21		1		22
Current restructuring liability at June 30, 2022	$	66	$	9	$	75

(in millions)	Employee Termination Benefits		Other		Total
Balance at January 1, 2021	$	160	$	13	$	173
Restructuring expense, net	57		35		92
Cash payments	(82)		(39)		(121)
Foreign currency translation adjustment and other	(1)		1		—
Balance at June 30, 2021	134		10		144
Less: Non-current restructuring liability	37		3		40
Current restructuring liability at June 30, 2021	$	97	$	7	$	104

2020 Structural Costs Plan In February 2020, the Company announced a restructuring plan to address existing structural costs. During the three and six months ended June 30, 2022, the Company recorded $10 million and $23 million of restructuring charges related to this plan, respectively. During the three and six months ended June 30, 2021, the Company recorded $37 million and $61 million of restructuring charges related to this plan, respectively. Cumulatively, the Company has incurred $274 million of restructuring charges related to this plan. This plan is 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.

2019 Legacy Delphi Technologies Plan In 2019, legacy Delphi Technologies announced a restructuring plan to reshape and realign its global technical center footprint and reduce salaried and contract staff. The Company continued actions under this plan post-acquisition and has recorded cumulative charges of $66 million since October 1, 2020, including approximately $4 million and $31 million in restructuring charges during the six months ended June 30, 2022, and 2021, respectively. The majority of the actions under this plan have been completed.

The following provides details of restructuring expense incurred by the Company’s reporting segments during the six months ended June 30, 2022 and 2021, related to the plans and actions discussed above:

•During the three and six months ended June 30, 2021, the segment recorded $12 million and $27 million, respectively, of restructuring costs under this plan. This primarily related to $11 million during the six months ended June 30, 2021 for a voluntary termination program pursuant to which approximately 20 employees accepted termination packages in 2021 and $16 million for other specific actions to reduce structural costs.

•During the six months ended June 30, 2022, the segment recorded $14 million of restructuring costs, primarily related to severance costs associated with the announced closure of a technical Center in Europe effecting approximately 80 employees.

•During the three and six months ended June 30, 2022, the segment recorded $3 million and $10 million, respectively, of restructuring costs, primarily related to contractual settlements and professional fees.

•During the three and six months ended June 30, 2021, the segment recorded $5 million and $10 million, respectively, of restructuring costs, primarily related to severance costs, equipment relocation and professional fees to reduce existing structural costs. During the three and six months ended June 30, 2021, the segment recorded $19 million and $23 million, respectively, of restructuring costs, primarily related to contractual settlements and professional fees and other costs associated with the announced closure of a facility in Europe.

•During the three and six months ended June 30, 2022, the segment recorded $4 million and $5 million, respectively, of restructuring costs related to this plan, primarily related to employee severance and equipment moves. During the three and six months ended June 30, 2021, the segment recorded $24 million and $27 million, respectively, of restructuring costs related to this plan. These costs were primarily for the statutory minimum benefits and incremental one-time termination benefits negotiated with local labor authorities.

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.