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 they relate 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 $154 million and $189 million during the three and six months ended June 30, 2016, respectively. These charges include the recognition of approximately $88 million of employee-related and other costs related to the initiation of the closure of a European manufacturing site within the Powertrain Systems segment in the second quarter of 2016. Cash payments for this restructuring action are expected to be principally completed in 2017. Additionally, Delphi recognized non-cash asset impairment charges of $19 million in the second quarter of 2016 related to the initiation of this plant closure, which are recorded within cost of sales. Other restructuring charges incurred during the three months ended June 30, 2016 were primarily related to Delphi's on-going restructuring programs, which included $42 million for other programs focused on the continued rotation of our manufacturing footprint to low cost locations in Europe.

Restructuring costs of approximately $17 million and $33 million were recorded during the three and six months ended June 30, 2015, 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. Additionally, the Company recorded $1 million and $2 million of restructuring costs within discontinued operations related to the Thermal Systems business during the three and six months ended June 30, 2015, respectively.

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 $96 million and $65 million in the six months ended June 30, 2016 and 2015, respectively.

The following table summarizes the restructuring charges recorded for the three and six months ended June 30, 2016 and 2015 by operating segment:



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015

	(in millions)
Electrical/Electronic Architecture	$	17	$	5	$	35	$	9
Powertrain Systems	126		8		135		14
Electronics and Safety	11		4		19		10
Total	$	154	$	17	$	189	$	33

The table below summarizes the activity in the restructuring liability for the six months ended June 30, 2016:



	Employee Termination Benefits Liability			Other Exit Costs Liability		Total

	(in millions)
Accrual balance at January 1, 2016	$	129		$	2	$	131
Provision for estimated expenses incurred during the period	184			5		189
Payments made during the period	(96		)	—		(96		)
Foreign currency and other	1			—		1
Accrual balance at June 30, 2016	$	218		$	7	$	225