
3.	RESTRUCTURING AND ACQUISITION-RELATED COSTS

In 2016, AAM initiated actions under a global restructuring program focused on creating a more streamlined organization in addition to reducing our cost structure and preparing for acquisition integration activities. A summary of this activity for the first three months of 2018 and 2017 is shown below:



	Severance Charges			Implementation Costs			Total
	(in millions)
Accrual as of December 31, 2016	$	0.6		$	9.2		$	9.8
Charges	1.2			5.6			6.8
Cash utilization	(1.1		)	(1.5		)	(2.6		)
Accrual as of March 31, 2017	$	0.7		$	13.3		$	14.0

Accrual as of December 31, 2017	$	0.3		$	—		$	0.3
Charges	0.2			3.9			4.1
Cash utilization	(0.4		)	(0.5		)	(0.9		)
Accrual as of March 31, 2018	$	0.1		$	3.4		$	3.5

As part of our restructuring actions, we incurred severance charges of approximately $0.2 million and $1.2 million, as well as implementation costs, including professional expenses, of approximately $3.9 million and $5.6 million, during the three months ended March 31, 2018 and 2017, respectively. Since the inception of our global restructuring program, we have incurred severance charges totaling $2.8 million and implementation costs totaling $28.0 million. We expect to incur $10 to $20 million of additional charges under our global restructuring program in 2018.

In 2017, we completed the acquisitions of Metaldyne Performance Group, Inc. (MPG) and USM Mexico Manufacturing LLC (USM Mexico). During the three months ended March 31, 2018, we incurred the following charges related to these acquisitions:



	Acquisition-Related Costs		Integration Expenses		Total
	(in millions)
Charges	$	1.1	$	13.1	$	14.2

Total restructuring and acquisition-related charges					$	18.3

Acquisition-related costs primarily consist of advisory, legal, accounting, valuation and certain other professional or consulting fees incurred. Integration expenses reflect costs incurred for information technology systems, ongoing operational activities, and consulting fees incurred in conjunction with the acquisitions. Total charges associated with our global restructuring program and acquisition-related charges of $18.3 million are shown on a separate line item titled "Restructuring and Acquisition-Related Costs" in our Condensed Consolidated Statement of Income for the three months ended March 31, 2018.