XML 41 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Restructuring and Other Initiatives
6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Other Initiatives
Restructuring and Other Initiatives
We have executed various restructuring and other initiatives and we may execute additional initiatives in the future, if necessary, to streamline manufacturing capacity and other costs to improve the utilization of remaining facilities. To the extent these programs involve voluntary separations, no liabilities are generally recorded until offers to employees are accepted. If employees are involuntarily terminated, a liability is generally recorded at the communication date. Related charges are recorded in Automotive and other cost of sales and Automotive and other selling, general and administrative expense. The following table summarizes the reserves and charges related to restructuring and other initiatives, including postemployment benefit reserves and charges:

Three Months Ended
 
Six Months Ended

June 30, 2018

June 30, 2017
 
June 30, 2018
 
June 30, 2017
Balance at beginning of period
$
633


$
296

 
$
227


$
268

Additions, interest accretion and other
137


250

 
592


290

Payments
(458
)

(53
)
 
(495
)

(75
)
Revisions to estimates and effect of foreign currency
(38
)


 
(50
)

10

Balance at end of period
$
274


$
493

 
$
274


$
493



In the three and six months ended June 30, 2018 restructuring and other initiatives primarily included the closure of a facility and other restructuring actions in Korea. We recorded charges of $132 million and $1.0 billion in Korea in GMI, net of noncontrolling interests in the three and six months ended June 30, 2018. These charges consisted of $73 million primarily in supplier claims and $537 million in non-cash asset impairments and other charges, not reflected in the table above, and $59 million and $495 million in employee separation charges, which are reflected in the table above, in the three and six months ended June 30, 2018. We incurred $676 million in cash outflows resulting from these Korea restructuring actions for employee separations and statutory pension payments in the six months ended June 30, 2018 and we expect to incur approximately $200 million of additional cash outflows, primarily for supplier claims and statutory pension payments in the six months ending December 31, 2018.

In the three and six months ended June 30, 2017 restructuring and other initiatives primarily included restructuring actions announced in the three months ended June 30, 2017 in GMI. These actions related primarily to the withdrawal of Chevrolet from the Indian and South African markets at the end of 2017 and the transition of our South Africa manufacturing operations to Isuzu Motors. We continue to manufacture vehicles in India for sale to certain export markets. We recorded charges of $460 million in GMI in the three months ended June 30, 2017, primarily consisting of $297 million of asset impairments, sale incentives, inventory provisions and other charges, not reflected in the table above, and $163 million of dealer restructurings, employee separations and other contract cancellation costs, which are reflected in the table above. We completed these programs in GMI in 2017. Other GMI restructuring programs reflected in the table above include separation and other programs in Australia, Korea and India and the withdrawal of the Chevrolet brand from Europe. Collectively, these programs had a total cost since inception in 2013 of $866 million through June 30, 2017 and $892 million through the completion of the programs in the year ended December 31, 2017.