Restructuring and impairment expenses, net includes restructuring costs, impairments, or accelerated depreciation of certain long-lived assets and other related expenses or reversal of expenses. Restructuring and impairment expenses, net for the three months ended June 30, 2026 and June 30, 2025 totaled a net expense of $19 million and $85 million, respectively.


in millions	North America		Europe		Asia		South America		Other Operations		Total
Restructuring liability balance as of March 31, 2026	$	23	$	26	$	1	$	7	$	7	$	64
Restructuring and impairment expenses, net	4		12		—		1		2		19
Cash payments	(5)		(2)		(1)		(1)		(5)		(14)

Restructuring liability balance as of June 30, 2026(1)	$	22	$	36	$	—	$	7	$	4	$	69

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(2)	47		8		20		1		9		85
Cash payments	(5)		(1)		(1)		—		(3)		(10)
Other(3)	(35)		1		(19)		—		—		(53)
Restructuring liability balance as of June 30, 2025(1)	$	27	$	9	$	—	$	7	$	7	$	50

(1)As of June 30, 2026, the restructuring liability totaled $69 million, with $46 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 June 30, 2025, the restructuring liability totaled $50 million, with $29 million included in accrued expenses and other current liabilities and the remainder was within other long-term liabilities on our condensed consolidated balance sheet.

(2)Restructuring and impairment expenses, net for the three months ended June 30, 2025 includes $83 million, which is net of $11 million pension curtailment and settlement gains, related to the 2025 Efficiency Plan (as defined below).

(3)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 three months ended June 30, 2025, impairment charges, accelerated depreciation, pension curtailment and settlement gains, and other non-cash expenses included in restructuring and impairment expenses, net were $54 million. There were no such charges in the three months ended June 30, 2026.

Restructuring and impairment expenses, net for the three months ended June 30, 2026, of $19 million consists primarily of employee-related and other restructuring expenses.

Restructuring and impairment expenses, net for the three months ended June 30, 2025, of $85 million consist of $65 million in accelerated depreciation charges and $20 million in employee-related and other restructuring expenses, net of pension curtailment and settlement gains.

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 June 30, 2026
Employee-related expenses	$	1	$	10	$	—	$	—	$	1	$	12


Professional fees	—		2		—		—		1		3

Total restructuring charges	$	1	$	12	$	—	$	—	$	2	$	15

Charges recognized in fiscal 2026
Employee-related expenses	$	15	$	29	$	2	$	1	$	13	$	60
Accelerated depreciation	46		—		40		—		—		86
Pension curtailment and settlement gains	(11)		—		—		—		—		(11)
Professional fees	—		2		—		—		19		21
Other	7		—		—		—		—		7
Total restructuring charges	$	57	$	31	$	42	$	1	$	32	$	163

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

Cumulative restructuring charges through June 30, 2026	$	60	$	43	$	42	$	1	$	34	$	180

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		Other Operations		Total
Liability balance as of March 31, 2026	$	1	$	21	$	5	$	27
Expenses recognized	1		10		1		12
Cash payments	(1)		(2)		—		(3)
Liability balance as of June 30, 2026	$	1	$	29	$	6	$	36

As part of the 2025 Efficiency Plan, the Company announced several actions aimed at driving footprint efficiencies, consisting of closing 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 $1 million and $44 million in the three months ended June 30, 2026 and 2025, respectively, consisting of accelerated depreciation, employee-related expenses, and other restructuring costs, net of pension curtailment and settlement gains.

In fiscal 2026, the Company completed idling of one of the two Changzhou plant automotive finishing lines and recognized restructuring costs of $20 million in the three months ended June 30, 2025, consisting of accelerated depreciation and employee-related expenses.

Additionally, in the three months ended June 30, 2026 and 2025, the Company recognized $2 million and $19 million, respectively, in charges related to SG&A cost reduction actions, consisting primarily of $1 million and $18 million, respectively, in employee-related expenses and $1 million and $1 million, respectively, in professional fees. The Company also recognized $12 million related to operational efficiency initiatives in Europe in the first three months of fiscal 2027, consisting primarily of $10 million in employee-related expenses and $2 million in professional fees.

We expect to implement additional actions and incur additional costs in connection with the 2025 Efficiency Plan between fiscal 2027 and fiscal 2028 but we are unable to quantify such costs at this time.