The Company undertakes restructuring activities, 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, 2024
(in millions)	Air Management		Drivetrain & Battery Systems		ePropulsion		Corporate		Total
Employee termination benefits	$	6	$	—	$	10	$	1	$	17
Other	4		—		4		—		8
Total restructuring expense	$	10	$	—	$	14	$	1	$	25

	Three Months Ended June 30, 2023
(in millions)	Air Management		Drivetrain & Battery Systems		ePropulsion		Corporate		Total
Employee termination benefits	$	7	$	—	$	—	$	—	$	7
Other	2		—		—		—		2
Total restructuring expense	$	9	$	—	$	—	$	—	$	9


	Six Months Ended June 30, 2024
(in millions)	Air Management		Drivetrain & Battery Systems		ePropulsion		Corporate		Total
Employee termination benefits	$	12	$	7	$	10	$	1	$	30
Other	7		—		7		—		14
Total restructuring expense	$	19	$	7	$	17	$	1	$	44

	Six Months Ended June 30, 2023
(in millions)	Air Management		Drivetrain & Battery Systems		ePropulsion		Corporate		Total
Employee termination benefits	$	9	$	—	$	—	$	—	$	9
Other	3		—		—		—		3
Total restructuring expense	$	12	$	—	$	—	$	—	$	12

The following tables display rollforwards of the restructuring liability recorded within the Company’s Condensed Consolidated Balance Sheets and the related cash flow activity:


(in millions)	Employee Termination Benefits		Other		Total
Balance at January 1, 2024	$	68	$	7	$	75
Restructuring expense, net	30		14		44
Cash payments	(21)		(14)		(35)
Foreign currency translation adjustment and other	(2)		—		(2)
Balance at June 30, 2024	75		7		82
Less: Non-current restructuring liability	8		—		8
Current restructuring liability at June 30, 2024	$	67	$	7	$	74

(in millions)	Employee Termination Benefits		Other		Total
Balance at January 1, 2023	$	39	$	9	$	48
Restructuring expense, net	9		3		12
Cash payments	(26)		(5)		(31)
Foreign currency translation adjustment and other	—		1		1
Balance at June 30, 2023	22		8		30
Less: Non-current restructuring liability	7		—		7
Current restructuring liability at June 30, 2023	$	15	$	8	$	23

2023 Structural Costs Plan In 2023, the Company announced a $130 million to $150 million restructuring plan to address structural costs primarily in its Foundational products businesses. During the three and six months ended June 30, 2024, the Company recorded $15 million and $34 million, respectively, of restructuring charges related to this plan. During the three and six months ended June 30, 2023, the Company recorded $9 million and $12 million, respectively, of restructuring costs related to this plan. Cumulatively, the Company has incurred $113 million of restructuring charges related to this plan.

2024 Structural Costs Plan In June 2024, the Company approved an approximately $75 million restructuring plan to address the cost structure in its ePropulsion segment due to increased market volatility. During the three and six months ended June 30, 2024, the Company recorded $10 million of restructuring charges related to this plan.

The following provides details of restructuring expense incurred by the Company’s reportable segments during the three and six months ended June 30, 2024 and 2023, related to the plans discussed above:

•During the three and six months ended June 30, 2024, the segment recorded $10 million and $19 million, respectively, of restructuring costs under this plan. These costs primarily related to $12 million of employee termination benefits and $7 million of professional fees and equipment relocation costs for programs in Europe, China and the U.S.

•During the three and six months ended June 30, 2023, the segment recorded $9 million and $12 million, respectively, of restructuring costs under this plan. These costs primarily

•During the six months ended June 30, 2024, the segment recorded $7 million of restructuring costs under this plan, primarily related to employee termination benefits for a program in Europe.

•During the three and six months ended June 30, 2024, the segment recorded $4 million and $7 million of restructuring costs under this plan, respectively, primarily related to contract cancellations and equipment relocation costs.

•During the six months ended June 30, 2024, the segment recorded $10 million of restructuring costs under this plan, primarily related to employee termination benefits.

The Company estimates restructuring expense 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.