XML 45 R12.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Restructuring and Acquisition-Related Costs | 12 Months Ended
--- | ---
Dec. 31, 2019
Restructuring and Related Activities [Abstract] |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | 4. RESTRUCTURING AND ACQUISITION-RELATED COSTS In 2016, AAM initiated actions under a global restructuring program (the 2016 Program) focused on creating a more streamlined organization in addition to reducing our cost structure and preparing for acquisition and integration activities. From inception of the 2016 Program, we incurred severance charges totaling $2.8 million and implementation costs totaling $29.6 million. We do not expect to incur any additional restructuring charges in future periods related to the 2016 Program. In addition to costs incurred under the 2016 program, we initiated actions in 2018 to exit operations at manufacturing facilities in our Driveline, Metal Forming and former Powertrain segments. In the first quarter of 2019, we initiated a new global restructuring program (the 2019 Program) to further streamline our business by consolidating our four existing segments into three segments. This activity occurred through the disaggregation of our former Powertrain segment, with a portion moving into our Driveline segment and a portion moving into our Metal Forming segment. The primary objectives of this consolidation are to further the integration of MPG, align AAM's product and process technologies, and to achieve efficiencies within our corporate and business unit support teams to reduce cost in our business. We expect to complete restructuring activities under the 2019 Program by December 31, 2020. A summary of our restructuring activity for the years 2019, 2018 and 2017 is shown below:
| Severance Charges |  | Implementation Costs |  | Asset Impairment Charges |  | Total
| (in millions)
Accrual at January 1, 2017 | $ | 0.6 |  |  | $ | 9.2 |  |  | $ | — |  |  | $ | 9.8 |
Charges | 2.0 |  |  | 13.9 |  |  | 1.5 |  |  | 17.4 |
Cash utilization | (2.3 | ) |  | (23.1 | ) |  | — |  |  | (25.4 | )
Non-cash utilization | — |  |  | — |  |  | (1.5 | ) |  | (1.5 | )
Accrual at December 31, 2017 | 0.3 |  |  | — |  |  | — |  |  | 0.3 |
Charges | 2.5 |  |  | 11.7 |  |  | 30.0 |  |  | 44.2 |
Cash utilization | (0.4 | ) |  | (10.1 | ) |  | — |  |  | (10.5 | )
Non-cash utilization | — |  |  | — |  |  | (30.0 | ) |  | (30.0 | )
Accrual at December 31, 2018 | 2.4 |  |  | 1.6 |  |  | — |  |  | 4.0 |
Charges | 19.4 |  |  | 20.4 |  |  | — |  |  | 39.8 |
Cash utilization | (17.0 | ) |  | (14.6 | ) |  | — |  |  | (31.6 | )
Non-cash utilization | — |  |  | — |  |  | — |  |  | — |
Accrual at December 31, 2019 | $ | 4.8 |  |  | $ | 7.4 |  |  | $ | — |  |  | $ | 12.2 |
As part of our total restructuring actions during 2019, we incurred severance charges of approximately $19.4 million, as well as implementation costs, consisting primarily of plant exit costs, of approximately $20.4 million. Approximately $18 million of the restructuring costs incurred in 2019 were under the 2019 Program. Approximately $6.4 million, $21.5 million, and $0.7 million of our total restructuring costs in 2019 related to our Driveline, Metal Forming and Casting segments, respectively, while the remainder were corporate costs. In 2018, we incurred severance charges of approximately $2.5 million, as well as implementation costs, consisting primarily of plant exit costs and professional fees, of approximately $11.7 million, and long-lived asset impairment charges of $30.0 million. In 2017, severance charges were approximately $2.0 million, while implementation costs, including professional fees, were $13.9 million and long-lived asset impairment charges were $1.5 million. We expect to incur approximately $20 million to $30 million of total restructuring charges in 2020, substantially all of which are under the 2019 Program. In 2019, we completed our acquisition of Mitec, and in 2017, we completed our acquisitions of MPG and USM Mexico. The following table represents a summary of charges incurred in 2019, 2018 and 2017 associated with acquisition and integration costs:
| Acquisition-Related Costs |  | Severance Charges |  | Integration Expenses |  | Total
2019 Charges | $ | 1.8 |  |  | $ | — |  |  | $ | 16.2 |  |  | $ | 18.0 |
2018 Charges | 1.2 |  |  | 0.5 |  |  | 33.0 |  |  | 34.7 |
2017 Charges | 40.7 |  |  | 7.2 |  |  | 45.4 |  |  | 93.3 |
Acquisition-related costs primarily consist of advisory, legal, accounting, valuation and certain other professional or consulting fees incurred. Integration expenses primarily reflect costs incurred for information technology infrastructure and enterprise resource planning systems, and consulting fees incurred in conjunction with the acquisitions. Total restructuring charges and acquisition-related charges of $57.8 million, $78.9 million and $110.7 million are shown on a separate line item titled "Restructuring and Acquisition-Related Costs" in our Consolidated Statements of Operations for 2019, 2018 and 2017, respectively.

X
- 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
Name: | us-gaap_BusinessAcquisitionIntegrationRestructuringAndOtherRelatedCostsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration