Restructuring and Other Initiatives

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

We have executed various restructuring and other initiatives and we may execute additional initiatives in the future, if necessary, to streamline manufacturing capacity and reduce other costs to improve the utilization of remaining facilities. To the extent these programs involve voluntary separations, a liability is generally recorded at the time offers to employees are accepted. To the extent these programs provide separation benefits in accordance with pre-existing agreements, a liability is recorded once the amount is probable and reasonably estimable. 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, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Balance at beginning of period	$	830		$	633		$	1,122		$	227
Additions, interest accretion and other	242			137			288			592
Payments	(166		)	(458		)	(483		)	(495		)
Revisions to estimates and effect of foreign currency	13			(38		)	(8		)	(50		)
Balance at end of period	$	919		$	274		$	919		$	274

In the three and six months ended June 30, 2019 restructuring and other initiatives primarily included actions related to our announced transformation activities, which includes the unallocation of products to certain manufacturing facilities and other employee separation programs. We recorded charges of $361 million, primarily in GMNA, in the three months ended June 30, 2019 consisting of $231 million primarily in supplier-related charges, which are reflected in the table above, and $130 million primarily in non-cash accelerated depreciation, not reflected in the table above. We recorded charges of $1.2 billion, primarily in GMNA, in the six months ended June 30, 2019 consisting of $911 million primarily in non-cash accelerated depreciation, not reflected in the table above, and $240 million primarily in supplier-related charges, which are reflected in the table above. These programs have a total cost since inception of $2.5 billion and we expect to incur additional restructuring and other charges in the six months ending December 31, 2019 that range from $500 million to $1.1 billion, primarily related to employee-related separation charges, accelerated depreciation and supplier-related charges. We incurred $487 million in cash outflows resulting from these restructuring actions, primarily for employee separation payments, in the six months ended June 30, 2019. We expect additional cash outflows related to these activities of approximately $1.3 billion to be substantially complete by the end of 2020.

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 in the six months ended June 30, 2018 and $775 million in cash outflows in the year ended December 31, 2018 resulting from these Korea restructuring actions primarily for employee separations and statutory pension payments. These programs were substantially complete at December 31, 2018.