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Restructuring | 6 Months Ended
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Jun. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring | Restructuring The Company has initiated a comprehensive plan to reduce existing structural costs. As actions under this plan, during the three months ended June 30, 2020, the Company decided it will close two European facilities, affecting approximately 550 employees. The Company recorded employee termination benefits of $3 million in the Engine segment and $17 million in the Drivetrain segment related to these facilities during the three months ended June 30, 2020. These benefits are subject to negotiation with labor unions, which could result in additional restructuring expenses. Also, during the three and six months ended June 30, 2020, the Company recorded $7 million and $12 million in the Engine segment as well as $3 million and $5 million, respectively, in the Drivetrain segment, primarily related to severance costs and professional fees, for other actions associated with this plan. Additionally, the Company continues a voluntary termination program in the Engine segment that resulted in restructuring expense of $5 million and $13 million during the three and six months ended June 30, 2020 and $7 million and $11 million during the three and six months ended June 30, 2019. Future cash payments for these restructuring activities are expected to continue through 2022. During the three and six months ended June 30, 2019, the Company recorded restructuring expense of $4 million and $11 million, respectively, primarily related to professional fees and employee termination benefits, as a continuation of actions within the Engine segment to improve future profitability and competitiveness and explore strategic options for non-core product lines. The Company also recorded restructuring expense of $3 million during the six months ended June 30, 2019, related to Corporate restructuring activities. 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 is evaluating numerous options across its operations and plans to take additional restructuring actions to reduce existing structural costs over the next few years. These actions are expected to result in significant restructuring expense. The following tables display a rollforward of the severance accruals recorded within the Company's Condensed Consolidated Balance Sheet and the related cash flow activity for the three and six months ended June 30, 2020 and 2019:
|  | Severance Accruals |  |  |  |
(in millions) |  | Drivetrain |  | Engine |  | Total
Balance at December 31, 2019 |  | $ | 4 |  |  | $ | 30 |  |  | $ | 34 |
Provision |  | 1 |  |  | 11 |  |  | 12 |
Cash payments |  | — |  |  | (13) |  |  | (13) |
Balance at March 31, 2020 |  | $ | 5 |  |  | $ | 28 |  |  | $ | 33 |
Provision |  | 17 |  |  | 11 |  |  | 28 |
Cash payments |  | (1) |  |  | (14) |  |  | (15) |
Balance at June 30, 2020 |  | $ | 21 |  |  | $ | 25 |  |  | $ | 46 |
|  | Severance Accruals |  |  |  |
(in millions) |  | Drivetrain |  | Engine |  | Total
Balance at December 31, 2018 |  | $ | 4 |  |  | $ | 21 |  |  | $ | 25 |
Provision |  | — |  |  | 7 |  |  | 7 |
Cash payments |  | — |  |  | (20) |  |  | (20) |
Balance at March 31, 2019 |  | $ | 4 |  |  | $ | 8 |  |  | $ | 12 |
Provision |  | — |  |  | 8 |  |  | 8 |
Cash payments |  | — |  |  | (2) |  |  | (2) |
Balance at June 30, 2019 |  | $ | 4 |  |  | $ | 14 |  |  | $ | 18 |

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- References No definition available. + Details
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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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