The Company’s restructuring activities are undertaken, as necessary, to execute management’s strategy and streamline operations, consolidate and take advantage of available capacity and resources, and ultimately achieve net cost reductions. Restructuring activities include efforts to integrate and rationalize the Company’s business and to relocate operations to best cost locations.

The Company’s restructuring expenses consist primarily of employee termination benefits (principally severance and/or termination benefits) and other costs, which are primarily professional fees and costs related to facility closures and exits.


	Three Months Ended June 30, 2021
(in millions	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	9	$	3	$	24	$	—	$	36
Other	3		20		—		3		26
Total restructuring expense	$	12	$	23	$	24	$	3	$	62

	Three Months Ended June 30, 2020
	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	11	$	17	$	—	$	—	$	28
Other	5		4		—		—		9
Total restructuring expense	$	16	$	21	$	—	$	—	$	37

	Six Months Ended June 30, 2021
	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	23	$	7	$	27	$	—	$	57
Other	6		26		—		3		35
Total restructuring expense	$	29	$	33	$	27	$	3	$	92

	Six Months Ended June 30, 2020
	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	22	$	18	$	—	$	—	$	40
Other	7		5		—		—		12
Total restructuring expense	$	29	$	23	$	—	$	—	$	52


(in millions	Employee Benefit Terminations		Other		Total
Balance at January 1, 2021	$	160	$	13	$	173
Restructuring expense, net	57		35		92
Cash payments	(82)		(39)		(121)
Foreign currency translation adjustment	(1)		1		—

Balance at June 30, 2021	134		10		144
Less: Non-current restructuring liability	37		3		40
Current restructuring liability at June 30, 2021	$	97	$	7	$	104

	Employee Benefit Terminations		Other		Total
Balance at January 1, 2020	$	34	$	—	$	34
Restructuring expense, net	40		12		52
Cash payments	(28)		(2)		(30)

Balance at June 30, 2020	46		10		56
Less: Non-current restructuring liability	13		—		13
Current restructuring liability at June 30, 2020	$	33	$	10	$	43

In February 2020, the Company announced a restructuring plan to address existing structural costs. During the three and six months ended June 30, 2021, the Company recorded $37 million and $61 million of restructuring charges related to this plan, respectively. During the three and six months ended June 30, 2020, the Company recorded $37 million and $52 million of restructuring charges related to this plan, respectively. Cumulatively, the Company has incurred $209 million of restructuring charges related to this plan. This plan is expected to result in a total of $300 million of restructuring costs through 2022. Nearly all of the restructuring charges associated with this plan are expected to be cash expenditures.

In 2019, legacy Delphi Technologies announced a restructuring plan to reshape and realign its global technical center footprint and reduce salaried and contract staff. The Company continued actions under this program post-acquisition and has recorded cumulative charges of $33 million since October 1, 2020, including approximately $31 million in restructuring charges during the six months ended June 30, 2021. Although a majority of the actions under this program have been completed, the Company does expect additional charges, which could be significant, for actions subject to negotiations with employee works council and other employee representatives.

During the three and six months ended June 30, 2021 and 2020, the Company incurred restructuring expenses primarily related to the following actions, related to the two plans discussed above:

•During the three and six months ended June 30, 2021, the segment recorded $12 million and $27 million of restructuring cost, respectively, primarily related to severance costs, professional fees and a voluntary termination program to reduce existing structural costs.

•During the six months ended June 30, 2021, the segment recorded $2 million primarily related to severance costs under a legacy Delphi Technologies restructuring plan to realign its global technical center footprint and implement headcount reductions.

•During the three and six months ended June 30, 2020, the segment recorded $16 million and $29 million of restructuring costs, respectively, of which $5 million and $13 million related to a voluntary termination program where approximately 350 employees accepted termination packages and $7 million and $12 million related to severance costs and professional fees for specific actions to reduce structural costs. During the three and six months ended June 30, 2020, the segment also recorded $3 million of employee termination benefits related to the announced closure of a facility in Europe affecting approximately 200 employees.

•During the three and six months ended June 30, 2021, the segment recorded $5 million and $10 million, respectively, primarily related to severance costs, equipment relocation and professional fees to reduce existing structural costs. During the three and six months ended June 30, 2021, the segment recorded $19 million and $23 million related to contractual settlements, professional fees and other costs associated with the announced closure of a facility in Europe.

•During the three and six months ended June 30, 2020, the segment recorded $3 million and $5 million, respectively, primarily related to professional fees for actions to reduce structural costs and severance costs. During the three and six months ended June 30, 2020, the segment also recorded $17 million of employee termination benefits related to the announced closure of a facility in Europe affecting approximately 350 employees.

•During the three and six months ended June 30, 2021, the segment recorded $24 million and $27 million, respectively, primarily related to severance costs under a legacy Delphi Technologies restructuring plan to realign its global technical center footprint and implement headcount reductions. These benefits are subject to negotiation with labor unions, which could result in additional restructuring expenses.

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 continues to evaluate different options across its operations to reduce existing structural costs over the next few years. The Company will recognize restructuring expense associated with any future actions at the time they are approved and become probable or are incurred. Any future actions could result in significant restructuring expense.