Restructuring and impairment expenses, net includes restructuring costs, impairments, and other related expenses or reversal of expenses. Restructuring and impairment expenses, net for the three and nine months ended December 31, 2025 totaled a net expense of $20 million and $136 million, respectively. Restructuring and impairment expenses, net for the three and nine months ended December 31, 2024 totaled a net expense of $6 million and $46 million, respectively.


in millions	North America		Europe		Asia		South America		Other Operations		Total
Restructuring liability balance as of March 31, 2025	$	20	$	1	$	—	$	6	$	1	$	28
Restructuring and impairment expenses, net	58		8		42		2		26		136
Cash payments	(23)		(6)		(2)		(2)		(18)		(51)
Other(1)	(35)		3		(40)		1		(3)		(74)
Restructuring liability balance as of December 31, 2025(2)	$	20	$	6	$	—	$	7	$	6	$	39

in millions	North America		Europe		Asia		South America		Other Operations		Total
Restructuring liability balance as of March 31, 2024	$	16	$	2	$	—	$	6	$	—	$	24
Restructuring and impairment expenses, net	26		—		17		3		—		46
Cash payments	(9)		(1)		—		(1)		—		(11)
Other(1)	(17)		—		(17)		(2)		—		(36)
Restructuring liability balance as of December 31, 2024(2)	$	16	$	1	$	—	$	6	$	—	$	23

(1)Other includes the impact of foreign currency on our restructuring liability as well as the removal of other non-cash expenses recorded and included within restructuring and impairment expenses, net in the table above that are not recorded through the restructuring liability. For the nine months ended December 31, 2025 and December 31, 2024, impairment charges, accelerated depreciation, pension curtailment and settlement gains, and other non-cash expenses included in restructuring and impairment expenses, net were $76 million and $34 million, respectively.

(2)As of December 31, 2025, the restructuring liability totaled $39 million, with $19 million included in accrued expenses and other current liabilities and the remainder is within other long-term liabilities on our accompanying condensed consolidated balance sheet. As of December 31, 2024, the restructuring liability totaled $23 million, with $4 million included in accrued expenses and other current liabilities and the remainder was within other long-term liabilities on our condensed consolidated balance sheet.

Restructuring and impairment expenses, net for the three months ended December 31, 2025, of $20 million consist of $6 million in accelerated depreciation charges and $14 million in employee-related and other restructuring expenses. Restructuring and impairment expenses, net for the nine months ended December 31, 2025, of $136 million consist of $87 million in accelerated depreciation charges and $49 million in employee-related and other restructuring expenses, net of pension curtailment and settlement gains.

Restructuring and impairment expenses, net for the three months ended December 31, 2024, of $6 million consist of $2 million in accelerated depreciation charges and $4 million in employee-related and other restructuring expenses. Restructuring and impairment expenses, net for the nine months ended December 31, 2024, of $46 million consist of $17 million in accelerated depreciation charges, $17 million in write-off costs previously capitalized, and $12 million in employee-related and other restructuring expenses.

In fiscal 2025, the Company initiated actions to implement structural cost improvement and efficiency measures across our global operations to drive sustainable labor, operational and footprint efficiencies through the 2025 Structural Cost Improvement and Efficiency Plan (the "2025 Efficiency Plan").


in millions	North America		Europe		Asia		South America		Other Operations		Total
Charges recognized in the three months ended December 31, 2025
Employee-related expenses	$	3	$	(3)	$	—	$	1	$	4	$	5
Accelerated depreciation	—		—		6		—		—		6

Professional fees	—		—		—		—		5		5
Other	2		—		—		—		—		2
Total restructuring charges	$	5	$	(3)	$	6	$	1	$	9	$	18

Charges recognized in the nine months ended December 31, 2025
Employee-related expenses	$	12	$	7	$	1	$	1	$	13	$	34
Accelerated depreciation	46		—		40		—		—		86
Pension curtailment and settlement gains	(11)		—		—		—		—		(11)
Professional fees	—		—		—		—		14		14
Other	6		—		—		—		—		6
Total restructuring charges	$	53	$	7	$	41	$	1	$	27	$	129

Charges recognized in fiscal 2025
Employee-related expenses	$	2	$	—	$	—	$	—	$	—	$	2
Total restructuring charges	$	2	$	—	$	—	$	—	$	—	$	2

Cumulative restructuring charges through December 31, 2025	$	55	$	7	$	41	$	1	$	27	$	131

The liabilities related to employee-related expenses were recorded in accrued expenses and other current liabilities in the Company's condensed consolidated balance sheet and were as follows:


in millions	North America		Europe		Asia		South America		Other Operations		Total
Liability balance as of March 31, 2025	$	2	$	—	$	—	$	—	$	—	$	2
Expenses recognized	12		7		1		1		13		34
Cash payments	(12)		(6)		(1)		(1)		(6)		(26)
Liability balance as of December 31, 2025	$	2	$	1	$	—	$	—	$	7	$	10

As part of the 2025 Efficiency Plan, the Company announced several actions aimed at driving footprint efficiencies, consisting of shutting down the Richmond, Virginia, and Fairmont, West Virginia, plants (the "Richmond plant" and the "Fairmont plant", respectively) in the North America segment and idling one of the two automotive finishing lines at our Changzhou, China, plant (the "Changzhou plant") in the Asia segment. The Company ceased the related operations at the Richmond and Fairmont plants in the first quarter of fiscal 2026 and recognized charges of $4 million and $49 million in the three and nine months ended December 31, 2025, respectively, consisting of accelerated depreciation, employee-related expenses, and other restructuring costs, net of pension curtailment and settlement gains.

In the third quarter of fiscal 2026, the Company completed idling of one of the two Changzhou plant automotive finishing lines and recognized restructuring costs of $6 million and $41 million in the three and nine months ended December 31, 2025, respectively, consisting of accelerated depreciation and employee-related expenses.

Additionally, in the three and nine months ended December 31, 2025, the Company recognized $7 million and $38 million, respectively, in charges related to SG&A cost reduction actions, consisting primarily of $3 million and $25 million, respectively, in employee-related expenses and $4 million and $13 million, respectively, in professional fees. The Company did not recognize any material charges in connection with the 2025 Efficiency Plan in the South America region through December 31, 2025.

We expect to implement additional actions and incur additional costs in connection with the 2025 Efficiency Plan between fiscal 2026 and fiscal 2028 but we are unable to quantify such costs at this time.