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Restructuring and Acquisition-Related Costs | 9 Months Ended
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Sep. 30, 2018
Restructuring and Related Activities [Abstract] |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] |
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. Since the inception of our global restructuring program, we have incurred severance charges totaling $2.8 million and implementation costs totaling $29.6 million. We expect minimal restructuring charges in future periods related to this global restructuring plan. A summary of our restructuring activity for the first nine months of 2018 and 2017 is shown below:
| Severance Charges |  | Implementation Costs |  | Asset Impairment Charges |  | Total
| (in millions)
Accrual as of December 31, 2016 | $ | 0.6 |  |  | $ | 9.2 |  |  | $ | — |  |  | $ | 9.8 |
Charges | 1.7 |  |  | 13.5 |  |  | — |  |  | 15.2 |
Cash utilization | (2.3 | ) |  | (17.8 | ) |  | — |  |  | (20.1 | )
Accrual as of September 30, 2017 | $ | — |  |  | $ | 4.9 |  |  | $ | — |  |  | $ | 4.9 |
Accrual as of December 31, 2017 | $ | 0.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.3 |
Charges | 2.3 |  |  | 8.8 |  |  | 26.6 |  |  | 37.7 |
Cash utilization | (0.4 | ) |  | (6.6 | ) |  | — |  |  | (7.0 | )
Non-cash utilization | — |  |  | — |  |  | (26.6 | ) |  | (26.6 | )
Accrual as of September 30, 2018 | $ | 2.2 |  |  | $ | 2.2 |  |  | $ | — |  |  | $ | 4.4 |
As part of our restructuring actions, we incurred severance charges of approximately $2.3 million and $1.7 million, as well as implementation costs, including professional expenses, of approximately $8.8 million and $13.5 million, during the nine months ended September 30, 2018 and 2017, respectively. We expect to incur up to $45 million of total restructuring charges in 2018. The increase in estimated restructuring charges, which was previously disclosed as a range of $10 to $20 million for the full year 2018, is the result of the non-cash impairment charges described below. In the first nine months of 2018, we initiated actions to exit operations at manufacturing facilities in our Driveline, Metal Forming and Powertrain segments. As a result of these actions, we were required to assess the associated long-lived assets for impairment. Based on our analysis, assets that were not to be redeployed to other AAM facilities were determined to be fully impaired resulting in a charge of $26.6 million for the nine months ended September 30, 2018. See Note 8 - Fair Value for further detail. In 2017, we completed the acquisitions of Metaldyne Performance Group, Inc. (MPG) and USM Mexico Manufacturing LLC (USM Mexico). During the nine months ended September 30, 2018, we incurred the following charges related to these acquisitions:
| Acquisition-Related Costs |  | Integration Expenses |  | Total
| (in millions)
Charges | $ | 1.2 |  |  | $ | 27.9 |  |  | $ | 29.1 |
Total restructuring and acquisition-related charges | $ | 66.8 |
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 restructuring charges and acquisition-related charges of $11.7 million and $66.8 million are shown on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2018, respectively.

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- Definition The entire description for costs incurred to effect a business combination that have been expensed during the period. Such costs could include business integration costs, systems integration and conversion costs, and severance and other employee-related costs. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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