Versigent’s restructuring activities are undertaken as necessary to implement management’s strategy, streamline operations, take advantage of available capacity and resources, and ultimately achieve net cost reductions. These activities generally relate to the realignment of existing manufacturing capacity and closure of facilities and other exit or disposal activities, as it relates to executing Versigent’s strategy, pursuant to significant restructuring programs.

As part of the Company’s continued efforts to optimize its cost structure, it has undertaken several restructuring programs which include workforce reductions as well as plant closures. These programs are primarily focused on reducing global overhead costs, the continued rotation of our manufacturing footprint to best cost locations in Europe and aligning our manufacturing capacity with the current levels of automotive production in each region. The Company recorded employee-related and other restructuring charges related to these programs totaling approximately $46 million during the three months ended March 31, 2026. The charges recorded during the three months ended March 31, 2026 included approximately $33 million for the planned closure of a European manufacturing site.

There have been no changes in previously initiated programs that have resulted (or are expected to result) in a material change to our restructuring costs. The Company expects to incur additional restructuring costs of approximately $4 million for approved programs within the next twelve months.

During the three months ended March 31, 2025, the Company recorded employee-related and other restructuring charges totaling approximately $16 million, of which approximately $13 million was recognized for charges incurred for programs to downsize and close European manufacturing sites.

Restructuring charges for employee separation and termination benefits are paid either over the severance period or in a lump sum in accordance with either statutory requirements or individual agreements. Versigent incurred cash expenditures

The table below summarizes the activity in the restructuring liability for the three months ended March 31, 2026:


	Employee Termination Benefits Liability		Other Exit Costs Liability		Total
	(in millions)
Accrual balance at January 1, 2026	$	49	$	—	$	49
Provision for estimated expenses incurred during the period	46		—		46
Payments made during the period	(26)		—		(26)


Accrual balance at March 31, 2026	$	69	$	—	$	69