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RESTRUCTURING
 6 Months Ended
Jun. 30, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
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. The balances for the three and six months ended June 30, 2022 have been recast for a change in reportable segments that was made during the first quarter of 2023. Refer to Note 22, “Reportable Segments And Related Information,” to the Condensed Consolidated Financial Statements for more information.

Three Months Ended June 30, 2023
(in millions)Air ManagementDrivetrain & Battery SystemsFuel SystemsePropulsionAftermarketCorporateTotal
Employee termination benefits$7 $— $1 $— $1 $— $9 
Other2 — 1 — — — 3 
Total restructuring expense$9 $— $2 $— $1 $— $12 
Three Months Ended June 30, 2022
(in millions)Air ManagementDrivetrain & Battery SystemsFuel SystemsePropulsionAftermarketCorporateTotal
Employee termination benefits$7 $14 $2 $— $— $(1)$22 
Other— 2 2 1 — — 5 
Total restructuring expense$7 $16 $4 $1 $— $(1)$27 
Six Months Ended June 30, 2023
(in millions)Air ManagementDrivetrain & Battery SystemsFuel SystemsePropulsionAftermarketCorporateTotal
Employee termination benefits$9 $— $5 $— $1 $— $15 
Other3 — 1 — — — 4 
Total restructuring expense$12 $— $6 $— $1 $— $19 
Six Months Ended June 30, 2022
(in millions)Air ManagementDrivetrain & Battery SystemsFuel SystemsePropulsionAftermarketCorporateTotal
Employee termination benefits$14 $14 $3 $— $— $(1)$30 
Other— 9 2 1 — — 12 
Total restructuring expense$14 $23 $5 $1 $— $(1)$42 
The following tables display a roll forward of the restructuring liability recorded within the Company’s Condensed Consolidated Balance Sheets and the related cash flow activity:

(in millions)Employee Termination BenefitsOtherTotal
Balance at January 1, 2023$59 $9 $68 
Restructuring expense, net15 4 19 
Cash payments(38)(6)(44)
Foreign currency translation adjustment and other— 1 1 
Balance at June 30, 202336 8 44 
Less: Non-current restructuring liability9 — 9 
Current restructuring liability at June 30, 2023$27 $8 $35 
(in millions)Employee Termination BenefitsOtherTotal
Balance at January 1, 2022$126 $13 $139 
Restructuring expense, net30 12 42 
Cash payments(64)(17)(81)
Foreign currency translation adjustment and other(5)2 (3)
Balance at June 30, 202287 10 97 
Less: Non-current restructuring liability21 1 22 
Current restructuring liability at June 30, 2022$66 $9 $75 
    
2023 Structural Costs Plan In 2023, the Company announced a $130 million to $150 million restructuring plan to address structural costs in its Foundational product businesses. Foundational products include all products utilized on internal combustion engines plus those same products and components that are also included in hybrid powertrains. During the three and six months ended June 30, 2023, the Company recorded $9 million and $12 million of restructuring costs related to this plan, respectively.

2020 Structural Costs Plan In 2020, the Company announced a $300 million restructuring plan to address its structural costs. During the three and six months ended June 30, 2023, the Company recorded $3 million and $7 million of restructuring charges related to this plan, respectively. 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. Cumulatively, the Company has incurred $294 million of restructuring charges related to this plan. The actions under this plan are complete.

2019 Legacy Delphi Technologies Plan In 2019, legacy Delphi Technologies PLC (“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 following its October 1, 2020 acquisition of Delphi Technologies and has recorded cumulative charges of $67 million since October 1, 2020, including approximately $4 million in restructuring charges during the six months ended June 30, 2022. The actions under this plan are complete.

The following provides details of restructuring expense incurred by the Company’s reportable segments during the three and six months ended June 30, 2023 and 2022, related to the plans and actions discussed above:
Air Management
2023 Structural Costs Plan
•During the three and six months ended June 30, 2023, the segment recorded $9 million and $12 million of restructuring costs under this plan, primarily related to employee severance.

2020 Structural Costs Plan
•During the three and six months ended June 30, 2022, the segment recorded $7 million and $13 million, respectively, of restructuring costs under this plan. This primarily related to $8 million during the six months ended June 30, 2022 for a voluntary termination program pursuant to which approximately 36 employees accepted termination packages in 2022.

Drivetrain & Battery Systems
2020 Structural Costs Plan
•During the three and six months ended June 30, 2022, the segment recorded $2 million and $9 million of restructuring costs, primarily related to severance costs associated with the announced closure of a technical center in Europe affecting approximately 80 employees.
ePropulsion
2020 Structural Costs Plan
•During the three and six months ended June 30, 2022, the segment recorded $1 million of restructuring costs under this plan, primarily related to legal fees, equipment moves, and validation and testing costs.
Fuel Systems
2020 Structural Costs Plan
•During the three and six months ended June 30, 2023, the segment recorded $2 million and $6 million of restructuring costs under this plan, primarily related to employee severance.

2019 Legacy Delphi Technologies Plan
•During the three and six months ended June 30, 2022, the segment recorded $4 million and $5 million, respectively, of restructuring costs under this plan, primarily related to employee severance and equipment moves.
Aftermarket
2020 Structural Costs Plan
•During the six months ended June 30, 2023, the segment recorded $1 million of restructuring costs under this plan, primarily related to employee severance.

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.