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 which were de minimis during the three months ended June 30, 2026 and approximately $46 million during the six months ended June 30, 2026. Charges for the six months ended June 30, 2026 included the recognition of approximately $33 million for a program to downsize and close 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 $15 million for approved programs within the next twelve months.

During the three and six months ended June 30, 2025, restructuring charges approximated $25 million and $41 million, respectively, which included the recognition of approximately $9 million and $22 million, respectively, for charges incurred to downsize European 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 related to its restructuring programs of approximately $37 million and $28 million in the six months ended June 30, 2026 and 2025, respectively.

The table below summarizes the activity in the restructuring liability for the six months ended June 30, 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	57		—		57
Change in estimate	(11)		—		(11)
Payments made during the period	(37)		—		(37)
Foreign currency and other	(2)		—		(2)
Accrual balance at June 30, 2026	$	56	$	—	$	56