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.

The following tables display the Company’s restructuring expense by reportable segment:


	Three Months Ended March 31, 2025
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Corporate		Total
Employee termination benefits	$	5	$	—	$	8	$	6	$	1	$	20
Other	2		1		8		—		—		11
Total restructuring expense	$	7	$	1	$	16	$	6	$	1	$	31

	Three Months Ended March 31, 2024
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Corporate		Total
Employee termination benefits	$	5	$	8	$	—	$	—	$	—	$	13
Other	2		1		3		—		—		6
Total restructuring expense	$	7	$	9	$	3	$	—	$	—	$	19

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, 2025	$	39	$	5	$	44
Restructuring expense, net	20		11		31
Cash payments	(28)		(4)		(32)

Balance at March 31, 2025	31		12		43
Less: Non-current restructuring liability	7		—		7
Current restructuring liability at March 31, 2025	$	24	$	12	$	36

2024 Structural Cost Plan In June 2024, the Company approved an approximately $75 million restructuring plan to address the cost structure in its PowerDrive Systems segment due to electric vehicle adoption volatility across different regions, which could include realignment of the segment’s manufacturing footprint. During the three months ended March 31, 2025, the Company recorded $16 million of restructuring charges related to this plan. Cumulatively, the Company has incurred $29 million of restructuring charges related to this plan.

2023 Structural Cost 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 months ended March 31, 2025 and 2024, the Company recorded $8 million and $19 million, respectively, of restructuring charges related to this plan. Cumulatively, the Company has incurred $148 million of restructuring charges related to this plan. The actions under this plan are complete.

During the three months ended March 31, 2025, the Company recorded $7 million of restructuring costs for individually approved restructuring actions, primarily related to the consolidation of the Company’s North American battery systems business footprint and the exit of its charging business, as more fully described in Note 3, “Acquisitions and Dispositions.”

The following provides details of restructuring expense incurred by the Company’s reportable segments during the three months ended March 31, 2025 and 2024, related to the plans discussed above:

•During the three months ended March 31, 2025, the segment recorded $7 million of restructuring costs under this plan. These costs primarily related to $5 million of employee termination benefits and $2 million of professional fees for facilities in Europe and China.

•During the three months ended March 31, 2024, the segment recorded $7 million of restructuring costs under this plan. These costs primarily related to $5 million of employee termination benefits for facilities in Europe and China.

•During the three months ended March 31, 2024, the segment recorded $9 million of restructuring costs under this plan. These costs primarily related to $8 million of employee termination benefits for facilities in Europe and the U.S.

•During the three months ended March 31, 2025, the segment recorded $16 million of restructuring costs under this plan. These costs primarily related to $8 million of employee termination benefits and $7 million of equipment relocation costs and professional fees for facilities in the U.S., Asia and Europe.

•During the three months ended March 31, 2024, the segment recorded $3 million of restructuring costs under this plan, primarily related to contract cancellations and equipment relocation costs.

•During the three months ended March 31, 2025, the segment recorded $6 million of individually approved restructuring costs. These costs primarily related to employee termination benefits for facilities in the U.S and China, including the consolidation of the Company’s North American battery systems business footprint and the exit of its charging business.

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.