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Fair Value
9 Months Ended
Sep. 30, 2011
Fair Value [Abstract] 
Fair Value Disclosures [Text Block]
FAIR VALUE

The fair value accounting guidance defines fair value as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”  The definition is based on an exit price rather than an entry price, regardless of whether the entity plans to hold or sell the asset.  This guidance also establishes a fair value hierarchy to prioritize inputs used in measuring fair value as follows:

•
Level 1:  Observable inputs such as quoted prices in active markets;
•
Level 2:  Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
•
Level 3:  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

Financial instruments   The estimated fair value of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data, as of September 30, 2011, are as follows:
 
 
 
September 30, 2011
 
December 31, 2010
 
 
 
 
  Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
 
Input
 
 
(in millions)
 
  (in millions)
 
 
Balance Sheet Classification
 
 
 
 
 
 
 
 
 
 
Cash equivalents
 
$
11.8

 
$
11.8

 
$
152.5

 
$
152.5

 
Level 1
Accrued expenses and other current
    liabilities
 
 

 
 

 
 

 
 

 
 
Currency forward contracts
 
(5.3
)
 
(5.3
)
 
—

 
—

 
Level 2
Postretirement benefits and other long-term liabilities
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
 
(1.3
)
 
(1.3
)
 
—

 
—

 
Level 2
Prepaid expenses and other current
    assets
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
 
—

 
—

 
1.3

 
1.3

 
Level 2
 
The carrying value of our cash, accounts receivable, accounts payable and accrued liabilities approximates their fair values due to the short-term maturities of these instruments.  The carrying value of our borrowings under the foreign credit facilities approximates their fair value due to the frequent resetting of the interest rates.  We estimated the fair value of the amounts outstanding on our debt using available market information and other observable data, to be as follows:
 
 
 
September 30, 2011
 
December 31, 2010
 
 
 
 
Carrying  Amount
 
Fair Value
 
Carrying  Amount
 
Fair Value
 
 
Input
 
 
(in millions)
 
(in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
Amended Revolving Credit Facility
 
$
70.0

 
$
63.7

 
$
—

 
$
—

 
Level 2
9.25% Notes
 
378.8

 
388.2

 
420.3

 
473.9

 
Level 2
7.875% Notes
 
300.0

 
274.5

 
300.0

 
306.0

 
Level 2
5.25% Notes
 
249.9

 
233.8

 
249.9

 
245.0

 
Level 2
 
Long-lived assets In the third quarter of 2011, as part of our impairment analysis, we were required to measure the fair value of certain long-lived assets. In this analysis we considered the expected future use of the long-lived assets located at our Cheektowaga Manufacturing Facility. Assets that will not be redeployed to other AAM facilities were determined to be fully impaired. The following table summarizes impairments of long-lived assets measured at fair value on a nonrecurring basis subsequent to initial recognition (in millions):
 
 
Fair Value Measurement Using Level 3 Inputs
 
Asset Impairments Recorded in the Third Quarter of 2011
Balance Sheet Classification
 
 
 
 
Property, plant and equipment, net
 
$
—

 
$
8.1

Other assets and deferred charges
 
—

 
0.5


Indefinite-lived Intangibles In the third quarter of 2011, Saab Automobile AB (Saab), our partner in the e-AAM joint venture, entered a voluntary reorganization process. As a result, in the third quarter of 2011, we recorded a $1.6 million impairment charge to selling, general and administrative expenses to write off the intangible asset associated with the long-term supply agreement with Saab acquired as part of our joint venture formation in 2010. The following table summarizes the impairment of indefinite-lived intangible assets measured at fair value on a nonrecurring basis subsequent to initial recognition (in millions):

 
 
Fair Value Measurement Using Level 3 Inputs
 
Impairment Recorded in the Nine Months Ended September 30, 2011
Balance Sheet Classification
 
 
 
 
Other assets and deferred charges
 
$
—

 
$
1.6