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Fair Value | 12 Months Ended
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Dec. 31, 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 values of our financial assets and liabilities that are recognized at fair value on a recurring basis, using available market information and other observable data are as follows:
| December 31, 2011 |  | December 31, 2010 |  |
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value |  | Input
| (in millions) |  | (in millions) |  |
Balance Sheet Classification |  |  |  |  |  |  |  |  |
Cash equivalents | $ | 36.0 |  |  | $ | 36.0 |  |  | $ | 152.5 |  |  | $ | 152.5 |  |  | Level 1
Prepaid expenses and other |  |  |  |  |  |  |  |  |
Currency forward contracts | 0.1 |  |  | 0.1 |  |  | 1.3 |  |  | 1.3 |  |  | Level 2
Other assets and deferred charges |  |  |  |  |  |  |  |  |
Currency forward contracts | 0.1 |  |  | 0.1 |  |  | — |  |  | — |  |  | Level 2
Other accrued expenses |  |  |  |  |  |  |  |  |
Currency forward contracts | 5.6 |  |  | 5.6 |  |  | — |  |  | — |  |  | Level 2
The carrying values 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 our outstanding debt using available market information and other observable data to be as follows:
| December 31, 2011 |  | December 31, 2010 |  |
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value |  | Input
| (in millions) |  | (in millions) |  |
Revolving Credit Facility | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Level 2
9.25% Notes | 379.0 |  |  | 415.0 |  |  | 420.3 |  |  | 473.9 |  |  | Level 2
7.875% Notes | 300.0 |  |  | 295.5 |  |  | 300.0 |  |  | 306.0 |  |  | Level 2
7.75% Notes | 200.0 |  |  | 195.0 |  |  | — |  |  | — |  |  | Level 2
5.25% Notes | 249.9 |  |  | 243.8 |  |  | 249.9 |  |  | 245.0 |  |  | Level 2
Investments in our defined benefit plans are stated at fair value. See Note 8 - Employee Benefit Plans for additional fair value disclosures of our pension plan assets as of December 31, 2011 and December 31, 2010. LONG-LIVED ASSETS In 2011 and 2010, as part of our impairment analysis, we were required to measure the fair value of certain long-lived assets. In 2011, 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. In 2010, we utilized the income approach, which determines fair value through a discounted cash flow analysis based on the assumptions a market participant would use in pricing these assets. Significant inputs used by management when determining the fair value of long-lived assets for impairment include general economic conditions, future expected production volumes, product pricing and cost estimates, working capital and capital investment requirements, discount rates and estimated liquidation values. The following table summarizes impairments of long-lived assets measured at fair value on a nonrecurring basis subsequent to initial recognition:
Balance Sheet Classification |  | Fair Value Measurements using Level 3 Inputs |  | Asset Impairment Recorded in Twelve Months ended December 31, 2011 |  | Fair Value Measurements using Level 3 Inputs |  | Asset Impairment Recorded in Twelve Months ended December 31, 2010
|  | (in millions)
Property, plant and equipment, net |  | $ | — |  |  | $ | 8.1 |  |  | $ | — |  |  | $ | 7.6 |
Other assets and deferred charges |  | — |  |  | 0.5 |  |  | — |  |  | 0.8 |
In the fourth quarter of 2011, we elected to buyout the remaining leases at our Detroit Manufacturing Complex. We paid $18.6 million to purchase these assets. As part of our fair value measurement, we considered the expected future use of these long-lived assets and recorded them at their estimated fair value. Assets that will not be redeployed to other AAM facilities were written down to their estimated net realizable value, which resulted in a net charge to cost of goods sold of $5.3 million in 2011. In 2010, we classified certain administrative and engineering facilities located in Detroit, Michigan as held-for-sale and wrote these assets down to their estimated fair value using available market data. As a result, we recorded a loss of $5.1 million in 2010, of which $3.3 million was recorded to selling, general and administrative expenses and $1.8 million was recorded to cost of goods sold. In 2010, we reclassified $1.1 million from property, plant and equipment, net to other assets and deferred charges on our Condensed Consolidated Balance Sheet. The following table summarizes the loss on remeasurement of long-lived assets held-for-sale measured at fair value on a nonrecurring basis subsequent to initial recognition:
Balance Sheet Classification |  | Fair Value Measurements using Level 3 Inputs |  | Loss on Remeasurement Recorded in Twelve Months ended December 31, 2010
|  | (in millions)
Other assets and deferred charges |  | $ | 1.1 |  |  | $ | 5.1 |
Finite-lived Intangibles In the third quarter of 2011, 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 finite-lived intangible assets measured at fair value on a nonrecurring basis subsequent to initial recognition:
Balance Sheet Classification |  | Fair Value Measurement Using Level 3 Inputs |  | Impairment Recorded in the Twelve Months Ended December 31, 2011
|  | (in millions)
Other assets and deferred charges |  | $ | — |  |  | $ | 1.6 |

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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