DELPHI 2014 Annual Report Download - page 103

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The table below summarizes the activity in the product warranty liability for the years ended December 31, 2014 and
2013:
Year Ended December 31,
2014 2013
(in millions)
Accrual balance at beginning of year ......................................................................................... $ 169 $ 166
Provision for estimated warranties incurred during the year............................................... 59 68
Provision for changes in estimate for pre-existing warranties ............................................ (4)(4)
Settlements made during the year (in cash or in kind)........................................................ (61)(68)
Foreign currency translation and other................................................................................ (8) 7
Accrual balance at end of year.................................................................................................... $ 155 $ 169
10. RESTRUCTURING
Delphi’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 the Company’s strategy, either in the normal course of business or pursuant to significant restructuring programs.
As part of Delphi's continued efforts to optimize its cost structure, it has undertaken several restructuring programs which
include workforce reductions as well as plant closures. The Company recorded employee-related and other restructuring
charges related to these programs totaling approximately $144 million during the year ended December 31, 2014. These
charges were primarily related to Delphi's on-going restructuring programs focused on aligning our manufacturing capacity and
footprint with the current automotive production levels in Europe and South America. These charges also include the
recognition of approximately $35 million of employee-related and other costs related to the initiation of a workforce reduction
at a European manufacturing site within the Powertrain Systems segment.
During the years ended December 31, 2013 and December 31, 2012, Delphi recorded employee related and other
restructuring charges totaling $145 million and $171 million, respectively, which were primarily related to European
restructuring programs, as well as to programs resulting from the integration of MVL, which was acquired in the third quarter
of 2012.
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. Delphi incurred cash expenditures for
these restructuring actions of approximately $169 million and $170 million in the years ended December 31, 2014 and
December 31, 2013, respectively.
The following table summarizes the restructuring charges recorded for the years ended December 31, 2014, 2013 and
2012 by operating segment:
Year Ended December 31,
2014 2013 2012
(in millions)
Electrical/Electronic Architecture................................................................... $ 56 $ 28 $ 49
Powertrain Systems......................................................................................... 55 52 25
Electronics and Safety..................................................................................... 28 56 89
Thermal Systems............................................................................................. 598
Total.............................................................................................................. $ 144 $ 145 $ 171