Restructuring and Acquisition-Related Costs (Notes)

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block]

2. RESTRUCTURING AND ACQUISITION-RELATED COSTS

In the first quarter of 2020, we initiated a new global restructuring program (the 2020 Program). The primary objectives of the 2020 Program are to achieve efficiencies within our corporate and business unit support teams to reduce cost in our business, and to structurally adjust our operations based on the impact of COVID-19. We expect to incur costs under the 2020 Program into 2022.

A summary of our restructuring activity for the first nine months of 2021 and 2020 is shown below:


	Severance Charges		Implementation Costs		Total
	(in millions)
Accrual at December 31, 2019	$	4.8	$	7.4	$	12.2
Charges	19.9		11.9		31.8
Cash utilization	(19.9)		(11.0)		(30.9)


Accrual at September 30, 2020	$	4.8	$	8.3	$	13.1

Accrual at December 31, 2020	$	1.7	$	9.8	$	11.5
Charges	2.7		33.2		35.9
Cash utilization	(3.9)		(39.7)		(43.6)


Accrual at September 30, 2021	$	0.5	$	3.3	$	3.8

As part of our restructuring actions, we incurred total severance charges of approximately $2.7 million and $19.9 million during the nine months ended September 30, 2021 and 2020, respectively. We also incurred total implementation costs of approximately $33.2 million and $11.9 million during the nine months ended September 30, 2021 and 2020, respectively. Implementation costs consist primarily of professional fees and plant exit costs.

Substantially all of the restructuring costs incurred during the nine months ended September 30, 2021 were under the 2020 Program. Approximately $3.9 million and $3.1 million of our total restructuring costs for the nine months ended September 30, 2021 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. Approximately $14.4 million and $13.1 million of our total restructuring costs for the nine months ended September 30, 2020 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. We expect to incur approximately $45 million to $55 million of total restructuring charges in 2021, substantially all of which are expected to be under the 2020 Program.

During the nine months ended September 30, 2021 we completed our acquisition of a manufacturing facility in Emporium, Pennsylvania, and we continue to incur integration costs related to our acquisition of MPG. The following table represents a summary of charges incurred in the nine months ended September 30, 2021 and 2020 associated with acquisition and integration costs:


	Acquisition-Related Costs		Integration Expenses		Total
	(in millions)
Charges for the nine months ended September 30, 2021	$	0.3	$	4.6	$	4.9
Charges for the nine months ended September 30, 2020	—		6.8		6.8

Acquisition-related costs primarily consist of valuation fees incurred. Integration expenses primarily reflect costs incurred for information technology infrastructure and enterprise resource planning systems. Total restructuring charges and acquisition-related charges are presented on a separate line item titled Restructuring and acquisition-related costs in our Condensed Consolidated Statements of Operations, and totaled $7.4 million and $40.8 million for the three and nine months ended September 30, 2021, respectively, and $9.7 million and $38.6 million for the three and nine months ended September 30, 2020, respectively.