RESTRUCTURING

Delphi’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing Delphi’s strategy, either in the normal course of business or pursuant to significant restructuring programs.

As part of Delphi's continued efforts to optimize its cost structure, it has undertaken several restructuring programs which include workforce reductions as well as plant closures. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $55 million and $77 million during the three and six months ended June 30, 2014, respectively. These charges were primarily related to Delphi's on-going restructuring programs focused on aligning manufacturing capacity and footprint with the current automotive production levels in Europe and South America. These charges also include the recognition of approximately $32 million of employee-related and other costs during the three months ended June 30, 2014 related to the initiation of a workforce reduction at a European manufacturing site within the Powertrain Systems segment.

Restructuring costs of approximately $26 million and $58 million were recorded during the three and six months ended June 30, 2013, respectively, primarily related to European restructuring programs, as well as to programs resulting from the integration of Motorized Vehicle Division (“MVL”), which was acquired in the third quarter of 2012.

Restructuring charges for employee separation and termination benefits are paid either over the severance period or in a lump sum in accordance with either statutory requirements or individual agreements. Delphi incurred cash expenditures related to its restructuring programs of approximately $84 million and $75 million in the six months ended June 30, 2014 and 2013, respectively.

The following table summarizes the restructuring charges recorded for the three and six months ended June 30, 2014 and 2013 by operating segment:



	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013

	(in millions)
Electrical/Electronic Architecture	$	13	$	8	$	26	$	19
Powertrain Systems	37		4		39		12
Electronics and Safety	3		14		9		25
Thermal Systems	2		—		3		2
Total	$	55	$	26	$	77	$	58

The table below summarizes the activity in the restructuring liability for the six months ended June 30, 2014:



	Employee Termination Benefits Liability			Other Exit Costs Liability			Total

	(in millions)
Accrual balance at January 1, 2014	$	135		$	4		$	139
Provision for estimated expenses incurred during the period	76			1			77
Payments made during the period	(83		)	(1		)	(84		)
Foreign currency and other	(2		)	(1		)	(3		)
Accrual balance at June 30, 2014	$	126		$	3		$	129