The Company undertakes restructuring activities, 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 following tables display the Company’s restructuring expense by reportable segment:


	Three Months Ended September 30, 2025
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Corporate		Total
Employee termination benefits	$	5	$	—	$	10	$	4	$	—	$	19
Other	—		1		2		1		—		4
Total restructuring expense	$	5	$	1	$	12	$	5	$	—	$	23

	Three Months Ended September 30, 2024
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Corporate		Total
Employee termination benefits	$	7	$	1	$	—	$	—	$	—	$	8
Other	8		—		5		—		—		13
Total restructuring expense	$	15	$	1	$	5	$	—	$	—	$	21

	Nine Months Ended September 30, 2025
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Corporate		Total
Employee termination benefits	$	18	$	1	$	19	$	13	$	1	$	52
Other	4		2		10		3		—		19
Total restructuring expense	$	22	$	3	$	29	$	16	$	1	$	71

	Nine Months Ended September 30, 2024
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Corporate		Total
Employee termination benefits	$	16	$	10	$	10	$	1	$	1	$	38
Other	14		1		12		—		—		27
Total restructuring expense	$	30	$	11	$	22	$	1	$	1	$	65


(in millions)	Employee Termination Benefits		Other		Total
Balance at January 1, 2025	$	39	$	5	$	44
Restructuring expense, net	52		19		71
Cash payments	(54)		(12)		(66)
Foreign currency translation adjustment and other	1		—		1
Balance at September 30, 2025	38		12		50
Less: Non-current restructuring liability	6		—		6
Current restructuring liability at September 30, 2025	$	32	$	12	$	44

2024 Structural Cost Plan In June 2024, the Company approved an approximately $75 million restructuring plan to address the cost structure in its PowerDrive Systems segment due to electric vehicle adoption volatility across different regions, which could include realignment of the segment’s manufacturing footprint. During the three and nine months ended September 30, 2025, the Company recorded $12 million and $29 million, respectively, of restructuring charges related to this plan. During the three and nine months ended September 30, 2024, the Company recorded $3 million and $13 million, respectively, of restructuring charges related to this plan. Cumulatively, the Company has incurred $42 million of restructuring charges related to this plan.

2023 Structural Cost Plan In 2023, the Company announced a $130 million to $150 million restructuring plan to address structural costs primarily in its Foundational products businesses. During the nine months ended September 30, 2025, the Company recorded $8 million of restructuring costs related to this plan. During the three and nine months ended September 30, 2024, the Company recorded $18 million and $52 million, respectively, of restructuring charges related to this plan. Cumulatively, the Company has incurred $148 million of restructuring charges related to this plan. The actions under this plan are complete.

•During the nine months ended September 30, 2025, the segment recorded $7 million of restructuring costs under this plan. These costs primarily related to $5 million of employee termination benefits and $2 million of professional fees for facilities in Europe and China.

•During the three and nine months ended September 30, 2024, the segment recorded $15 million and $30 million, respectively, of restructuring costs under this plan. These costs primarily related to $16 million of employee termination benefits and $14 million of professional fees and equipment relocation costs for facilities in Europe and China.

•During the three and nine months ended September 30, 2025, the Company recorded $5 million and $15 million, respectively, of restructuring costs for individually approved restructuring actions. These costs primarily related to $13 million of employee termination benefits and $2 million of contractual settlement expense for facilities in Europe and China.

•During the three and nine months ended September 30, 2024, the segment recorded $1 million and $11 million, respectively, of restructuring costs under this plan. These costs primarily related to $10 million of employee termination benefits for facilities in Europe and the U.S.

•During the three and nine months ended September 30, 2025, the segment recorded $12 million and $29 million, respectively, of restructuring costs under this plan. These costs primarily related to $19 million of employee termination benefits and $10 million of equipment relocation costs for facilities in the U.S., Mexico, Asia and Europe.

•During the three and nine months ended September 30, 2024, the segment recorded $3 million and $13 million, respectively, of restructuring costs under this plan. These costs primarily related to $9 million of employee termination benefits and $4 million of professional fees.

•During the three and nine months ended September 30, 2025, the segment recorded $5 million and $16 million, respectively, of individually approved restructuring costs. These costs primarily related to $13 million of employee termination benefits and $3 million of contract cancellations and professional fees for facilities in the U.S and China, including the consolidation of the Company’s North American battery systems business footprint and the exit of its charging business. Refer to Note 3, “Acquisitions and Dispositions” for more information.

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.