Restructuring Accruals

6 Months Ended

Jun. 30, 2025

Restructuring Accruals

Restructuring Accruals

6. Restructuring Accruals

Selected information related to the restructuring accruals for the three months ended June 30, 2025 and 2024 is as follows:

Selected information related to the restructuring accruals for the three months ended June 30, 2025 and 2024 is as follows:
			Fit to Win program									Other Restructuring
		Employee			Asset			Other			Employee			Asset			Other			Total
		Costs			Impairment			Exit Costs			Costs			Impairment			Exit Costs			Restructuring
Balance at April 1, 2025		$	78		$			$	32		$	6		$	—		$	4		$	120
Charges			8			104			1												113
Write-down of assets to net realizable value						(104)															(104)
Net cash paid, principally severance and related benefits			(46)						(2)			(1)						(1)			(50)
Other, including foreign exchange translation			7																		7
Balance at June 30, 2025		$	47		$	—		$	31		$	5		$	—		$	3		$	86


												Other Restructuring
											Employee			Asset			Other			Total
											Costs			Impairment			Exit Costs			Restructuring
Balance at April 1, 2024											$	19		$	—		$	10		$	29
Net cash paid, principally severance and related benefits												(4)						(1)			(5)
Balance at June 30, 2024											$	15		$	—		$	9		$	24

Selected information related to the restructuring accruals for the six months ended June 30, 2025 and 2024 is as follows:

Selected information related to the restructuring accruals for the six months ended June 30, 2025 and 2024 is as follows:
			Fit to Win program									Other Restructuring
		Employee			Asset			Other			Employee			Asset			Other			Total
		Costs			Impairment			Exit Costs			Costs			Impairment			Exit Costs			Restructuring
Balance at January 1, 2025		$	51		$	—		$	18		$	7		$	—		$	4		$	80
Charges			58			118			19												195
Write-down of assets to net realizable value						(118)															(118)
Net cash paid, principally severance and related benefits			(69)						(6)			(2)						(1)			(78)
Other, including foreign exchange translation			7																		7
Balance at June 30, 2025		$	47		$	—		$	31		$	5		$	—		$	3		$	86


												Other Restructuring
											Employee			Asset			Other			Total
											Costs			Impairment			Exit Costs			Restructuring
Balance at January 1, 2024											$	27		$	—		$	12		$	39
Net cash paid, principally severance and related benefits												(12)						(3)			(15)
Balance at June 30, 2024											$	15		$	—		$	9		$	24

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.

As of June 30, 2025, 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. The Fit to Win initiative began in the second half of 2024 and is expected to last at least through 2026. Details regarding charges, payments and other changes to the Fit to Win restructuring accruals are presented in the table above. Management does not yet have an estimate for the total restructuring charges to be incurred with this program, however, the total charges are expected to be material. As of June 30, 2024, no major restructuring programs were in effect.

For the three and six months ended June 30, 2025, the Company recorded restructuring, asset impairment and other charges of approximately $113 million (which included $104 million related to its decision to halt the MAGMA program) and $195 million, respectively, to Other expense, net in the Condensed Consolidated Results of Operations, of which all related to the Fit to Win program. For the three months ended June 30, 2025, 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 ($50 million), Europe segment ($3 million) and Retained corporate costs and other ($60 million). For the six months ended June 30, 2025, 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 ($56 million), Europe segment ($55 million) and Retained corporate costs and other ($84 million). As of June 30, 2025, the Company has incurred cumulative charges of approximately $396 million related to the Fit to Win program. Additional restructuring charges are expected in future quarters when management completes their assessment to reduce redundant production capacity and streamline costs. 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.

The Company’s decisions to curtail selected production capacity have resulted in write-downs of certain long-lived assets to the extent their carrying value exceeded fair value or fair value less cost to sell. The Company classified the assumptions used to determine the fair value of the impaired assets in the period that the measurement was taken as Level 3 (third-party appraisals, where applicable) in the fair value hierarchy as set forth in the general accounting principles for fair value measurements. For the asset impairments recorded during the three and six months ended June 30, 2025, the remaining carrying value of the impaired assets was approximately $0.