Restructuring

12 Months Ended

Dec. 31, 2025

Restructuring

10. Restructuring

The Company continually reviews its manufacturing footprint and operating cost structure and may decide to close operations or reduce headcount to gain efficiencies, integrate acquired operations, reduce future expenses and address other market factors. The Company incurs costs associated with these actions including employee severance and benefits, other exit costs such as those related to contract terminations, and asset impairment charges. The Company also may incur other costs related to closed facilities including clean-up, dismantling and preparation for sale or other disposition.

The Company accounts for restructuring and other costs under applicable provisions of generally accepted accounting principles. Charges for employee severance and related benefits are generally accrued based on contractual arrangements with employees or their representatives. Other exit costs are accrued based on the estimated cost to settle related contractual arrangements. Estimated environmental remediation costs are accrued when specific claims have been received or are probable of being received.

The Company’s decisions to curtail selected production capacity have resulted in write-downs of certain long-lived assets to the extent their carrying amounts exceeded fair value or fair value less cost to sell. The Company classified the significant assumptions used to determine the fair value of the impaired assets in the period that the measurement was taken as Level 3 (third-party appraisal, where applicable) in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. For the asset impairments recorded through December 31, 2025 and December 31, 2024, the remaining carrying value of the impaired assets was $0.

When a decision is made to take restructuring actions, the Company manages and accounts for them programmatically apart from the ongoing operations of the business. Information related to major programs is presented separately while minor initiatives are presented on a combined basis.

Since 2024, the Company’s only major restructuring program was the Fit to Win initiative, which is expected to reduce redundant production capacity and begin to optimize the network, as well as streamline other cost areas, such as selling, general and administrative expenses. Details regarding charges, payments and other changes to the Fit to Win restructuring accruals are presented in the table below. This major restructuring program is expected to last at least through 2026, and management expects approximately $50 million of additional restructuring charges will be incurred with this program in 2026 (approximately $700 million cumulative charges) when management completes their assessment to reduce redundant production capacity and streamline costs.

For the year ended December 31, 2025, the Company recorded restructuring, asset impairment and other charges of approximately $445 million to Other expense, net in the Consolidated Results of Operations, related to the Fit to Win initiative. These charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($112 million), Europe segment ($245 million) and Retained corporate costs and other ($88 million). As of December 31, 2025, the Company has incurred cumulative charges of approximately $646 million related to the Fit to Win initiative. The Company expects that the majority of the remaining cash expenditures related to the accrued employee and other exit costs will be paid out over the next several years.

For the year ended December 31, 2024, the Company recorded restructuring, asset impairment and other charges of approximately $208 million to Other expense, net ($206 million) and Equity earnings ($2 million) in the Consolidated Results of Operations, of which $201 million related to the Fit to Win initiative. These charges consisted of employee costs, such as severance and benefit-related costs, write-down of assets and other exit costs in the Americas segment ($79 million), Europe segment ($115 million) and Retained corporate costs and other ($14 million). As of December 31, 2024, the Company has incurred cumulative charges of $201 million related to the Fit to Win initiative.

The following table presents information related to restructuring, asset impairment and other costs related to closed facilities from January 1, 2024 through December 31, 2025:


		Fit to Win Initiative										Other Restructuring
		Employee			Asset			Other				Employee			Asset			Other			Total
		Costs			Impairment			Exit Costs				Costs			Impairment			Exit Costs			Restructuring
Balance at January 1, 2024		$	—		$	—		$	—			$	27		$	—		$	12		$	39
Charges			73			109			19				1			4			2			208
Write-down of assets to net realizable value						(109)										(4)						(113)
Net cash paid, principally severance and related benefits			(14)						(1)				(19)						(7)			(41)
Other, including foreign exchange translation			(8)										(2)						(3)			(13)
Balance at December 31, 2024		$	51		$	—		$	18			$	7		$	—		$	4		$	80
Charges			157			217			71													445
Write-down of assets to net realizable value						(217)																(217)
Net cash paid, principally severance and related benefits			(106)						(18)				(3)						(1)			(128)
Other, including foreign exchange translation			11						(1)				(4)						(3)			3
Balance at December 31, 2025		$	113		$	—		$	70			$	—		$	—		$	—		$	183