RESTRUCTURING

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURINGThe 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 September 30, 2021
(in millions	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	7	$	2	$	29	$	—	$	38
Other	4		9		—		—		13
Total restructuring expense	$	11	$	11	$	29	$	—	$	51

	Three Months Ended September 30, 2020
	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	9	$	—	$	—	$	1	$	10
Other	5		4		—		1		10
Total restructuring expense	$	14	$	4	$	—	$	2	$	20

	Nine Months Ended September 30, 2021
	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	30	$	9	$	56	$	—	$	95
Other	10		35		—		3		48
Total restructuring expense	$	40	$	44	$	56	$	3	$	143

	Nine Months Ended September 30, 2020
	Air Management		e-Propulsion & Drivetrain		Fuel Injection		Corporate		Total
Employee termination benefits	$	31	$	18	$	—	$	1	$	50
Other	12		9		—		1		22
Total restructuring expense	$	43	$	27	$	—	$	2	$	72

The following tables display a rollforward of the restructuring liability recorded within the Company’s Condensed Consolidated Balance Sheets and the related cash flow activity:


(in millions	Employee Termination Benefits		Other		Total
Balance at January 1, 2021	$	160	$	13	$	173
Restructuring expense, net	95		48		143
Cash payments	(107)		(52)		(159)
Foreign currency translation adjustment	2		—		2

Balance at September 30, 2021	150		9		159
Less: Non-current restructuring liability	47		2		49
Current restructuring liability at September 30, 2021	$	103	$	7	$	110

	Employee Termination Benefits		Other		Total
Balance at January 1, 2020	$	34	$	—	$	34
Restructuring expense, net	50		22		72
Cash payments	(40)		(6)		(46)
Foreign currency translation adjustment and other	—		2		2

Balance at September 30, 2020	44		18		62
Less: Non-current restructuring liability	16		3		19
Current restructuring liability at September 30, 2020	$	28	$	15	$	43

In February 2020, the Company announced a restructuring plan to address existing structural costs. During the three and nine months ended September 30, 2021, the Company recorded $20 million and $81 million of restructuring charges related to this plan, respectively. During the three and nine months ended September 30, 2020, the Company recorded $20 million and $72 million of restructuring charges related to this plan, respectively. Cumulatively, the Company has incurred $229 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 $64 million since October 1, 2020, including approximately $62 million in restructuring charges during the nine months ended September 30, 2021. The majority of the actions under this program have been completed.

The following provides details of restructuring expense incurred by the Company’s reporting segments during the three and nine months ended September 30, 2021 and 2020, related to the two plans discussed above:

Air Management

•During the three and nine months ended September 30, 2021, the segment recorded $10 million and $36 million of restructuring cost, respectively, primarily related to severance costs, professional fees and a voluntary termination program to reduce existing structural costs.

•During the nine months ended September 30, 2021, the segment recorded $4 million primarily related to severance costs under the legacy Delphi Technologies plan.

•During the three and nine months ended September 30, 2020, the segment recorded $14 million

and $43 million of restructuring costs, respectively, of which $8 million and $21 million related to a voluntary termination program where approximately 350 employees accepted termination packages, and $7 million and $19 million related to severance costs and professional fees for specific actions to reduce structural costs. During the nine months ended September 30, 2020 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.

e-Propulsion & Drivetrain

•During the three and nine months ended September 30, 2021, the segment recorded $7 million and $17 million, respectively, primarily related to severance costs, equipment relocation and professional fees to reduce existing structural costs. During the three and nine months ended September 30, 2021, the segment recorded $4 million and $27 million related to contractual settlements, professional fees and other costs associated with the announced closure of a facility in Europe.

•During the three and nine months ended September 30, 2020, the segment recorded $3 million and $8 million, respectively, primarily related to professional fees for actions to reduce structural costs and severance costs. During the nine months ended September 30, 2020, the segment also recorded $19 million of employee termination benefits related to the announced closure of a facility in Europe affecting approximately 350 employees.

Fuel Injection

•During the three and nine months ended September 30, 2021, the segment recorded $29 million and $56 million, respectively, primarily for the statutory minimum benefits and incremental one-time termination benefits negotiated with local labor authorities related to the legacy Delphi Technologies restructuring plan.

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.