Restructuring Activities

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring Activities

Given the economically-sensitive and highly competitive nature of the automotive electronics industry, the Company continues to closely monitor current market factors and industry trends, taking action as necessary which may include restructuring actions. However, there can be no assurance that any such actions will be sufficient to fully offset the impact of adverse factors on the Company or its results of operations, financial position and cash flows.

Electronics

During January 2020, the Company approved a restructuring program impacting primarily European engineering and administrative functions to improve the Company’s efficiency and rationalize its footprint. During the three months ended March 31, 2020, the Company recorded $21 million in relation to the program and expects to incur up to $24 million under this program. The total expected costs include employee severance, retention and termination costs. As of March 31, 2020, $20 million remains accrued for the program.

During March 2020, the Company approved a global restructuring program impacting engineering, administrative and manufacturing facilities to improve efficiency and further rationalize the Company’s footprint. During the three months ended March 31, 2020, the Company recorded $11 million in relation to the program and expects to incur up to $15 million under this program. The total expected costs include employee severance, retention and termination costs. As of March 31, 2020, $9 million remains accrued for the program.

Additionally, during 2020 the Company recorded and paid $1 million related to restructuring expenses at two North American manufacturing facilities.

During the first quarter of 2019, the Company approved a restructuring program impacting two European manufacturing facilities due to the end of life of certain product lines. During the three months ended March 31, 2019, the Company recorded $2 million of restructuring expenses for this program.

During the second quarter of 2018, the Company approved a restructuring program impacting legacy employees at a South America facility and employees at North America manufacturing facilities due to the wind-down of certain products, as of March 31, 2020, $3 million remains accrued related to this program.

During the third quarter of 2018, the Company approved a restructuring program impacting engineering and administrative functions to optimize operations, as of March 31, 2020, $2 million remains accrued for the program.

Other and Discontinued Operations

As of March 31, 2020, the Company retained restructuring reserves as part of the Company's divestiture of the majority of its global Interiors business (the "Interiors Divestiture") of $2 million associated with completed programs for the fundamental reorganization of operations at facilities in Brazil and France.

Restructuring Reserves

Restructuring reserve balances of $36 million and $10 million as of March 31, 2020 and December 31, 2019, respectively, are classified as "Other current liabilities" on the consolidated balance sheets. The Company anticipates that the activities associated with the current restructuring reserve balance will be substantially complete by mid-2021. The Company’s consolidated restructuring reserves and related activity are summarized below, including amounts associated with discontinued operations.



(In millions)	Electronics			Other and Discontinued Operations		Total
December 31, 2019	$	8		$	2	$	10
Expense	33			—		33
Utilization	(6		)	—		(6		)
Foreign currency	(1		)	—		(1		)
March 31, 2020	$	34		$	2	$	36