DELPHI 2011 Annual Report Download - page 113

Table of Contents
The table below summarizes the activity in the restructuring liability for the years ended December 31, 2011 and 2010:
Employee
Termination
Benefits
Liability
Other Exit
Costs Liability Total
(in millions)
Accrual balance at January 1, 2010 $ 210 $ 19 $ 229
Provision for estimated expenses incurred during the period 194 31 225
Provision for changes in estimates for preexisting programs (1) — (1)
Payments made during the period (260) (31) (291)
Foreign currency and other 5 2 7
Accrual balance at December 31, 2010 $ 148 $ 21 $ 169
Provision for estimated expenses incurred during the period 25 6 31
Payments made during the period (89) (16) (105)
Foreign currency and other 2 (1) 1
Accrual balance at December 31, 2011 $ 86 $ 10 $ 96
Delphi has initiated several programs to streamline operations and lower costs. The following are details of significant charges during 2011.
• Realignment of existing manufacturing capacity and closure of facilities. As part of Delphi's ongoing efforts to lower costs and operate efficiently,
the Company recorded $10 million of restructuring costs in North America and South America, primarily related to the Electrical/Electronic
Architecture segment. The Company also recorded $10 million of restructuring costs in conjunction with workforce reduction and programs related
to the rationalization of manufacturing and engineering processes, including plant closures in Europe, primarily related to the Powertrain segment.
Additionally, $5 million of costs were incurred related to workforce reduction efforts resulting from prior divestitures.
Delphi and the Predecessor have initiated several programs to streamline operations and lower costs. The following are details of significant charges
during 2010.
• Realignment of existing manufacturing capacity and closure of facilities. As part of Delphi's ongoing efforts to lower costs and operate efficiently,
the Company recorded $28 million of restructuring costs in North America, primarily related to the Electrical/Electronic Architecture segment's
continued efforts to reduce the workforce. The four reporting segments recorded $174 million of restructuring costs in conjunction with workforce
reduction and programs related to the rationalization of manufacturing and engineering processes, including plant closures, primarily in Europe.
The Electronics and Safety segment also incurred $8 million of costs related to the ongoing sales and wind-down of its occupant protection
systems businesses during the year ended December 31, 2010.
The following are details of significant charges during 2009.
• Realignment of existing manufacturing capacity and closure of facilities. As part of Delphi and the Predecessor's ongoing efforts to lower costs and
operate efficiently, the Electronics and Safety, Powertrain Systems, Electrical/Electronic Architecture and Thermal Systems segments executed
initiatives to realign manufacturing operations within North America to lower cost markets and to reduce the workforce in line with the realigned
manufacturing operations, and incurred approximately $34 million and $69 million of restructuring costs during the periods from August 19 to
December 31, 2009 and January 1 to October 6, 2009, respectively. Additionally, European, South American and Asian operations in the
Electronics and Safety and Electrical/Electronic Architecture segments incurred $78 million and $99 million of restructuring costs in the periods
from August 19 to December 31, 2009
111