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Restructuring and Acquisition-Related Costs | 12 Months Ended
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Dec. 31, 2023
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 global restructuring program (the 2020 Program). The primary objectives of the 2020 Program were to achieve efficiencies within our corporate and business unit support teams to reduce cost in our business, and to structurally adjust our operations to a new level of market demand based on the impact of COVID-19. From inception of the 2020 Program, we incurred restructuring costs totaling $112.4 million. The 2020 Program has concluded and we do not expect to incur any additional charges under this program. In 2021, we completed our acquisition of a manufacturing facility in Emporium, Pennsylvania (Emporium), and subsequently ceased production at the facility and relocated the production capacity to other AAM manufacturing facilities. As a result, we incurred a total of $16.5 million of restructuring charges related to the closure of the facility. As of December 31, 2023, we had completed our exit of Emporium and we do not expect to incur any additional charges related to Emporium. In 2022, we completed our acquisition of Tekfor Group (Tekfor) and in 2023 initiated certain restructuring actions associated with the acquired entities. In the first quarter of 2024, we initiated a new global restructuring program (the 2024 Program) focused on optimizing our cost structure. We expect to incur costs under the 2024 Program into 2026. A summary of our restructuring activity for the years 2023, 2022 and 2021 is shown below:
| Severance Charges |  | Implementation Costs |  |  |  | Total
| (in millions)
Accrual at January 1, 2021 | $ | 1.7 |  |  | $ | 9.8 |  |  |  |  | $ | 11.5 |
Charges | 2.9 |  |  | 40.3 |  |  |  |  | 43.2 |
Cash utilization | (3.9) |  |  | (47.4) |  |  |  |  | (51.3) |
Accrual at December 31, 2021 | 0.7 |  |  | 2.7 |  |  |  |  | 3.4 |
Charges | 3.5 |  |  | 18.2 |  |  |  |  | 21.7 |
Cash utilization | (1.8) |  |  | (19.5) |  |  |  |  | (21.3) |
Accrual at December 31, 2022 | 2.4 |  |  | 1.4 |  |  |  |  | 3.8 |
Charges | 7.2 |  |  | 11.1 |  |  |  |  | 18.3 |
Cash utilization | (6.6) |  |  | (10.8) |  |  |  |  | (17.4) |
Accrual at December 31, 2023 | $ | 3.0 |  |  | $ | 1.7 |  |  |  |  | $ | 4.7 |
As part of our restructuring actions during 2023, we incurred severance charges of approximately $7.2 million, as well as implementation costs, consisting primarily of plant exit costs and professional fees, of approximately $11.1 million. In 2023, we incurred $11.8 million of restructuring costs under the 2020 Program, incurred $4.4 million of costs associated with the closure of Emporium, and $2.1 million of costs related to restructuring actions associated with Tekfor. Approximately $4.9 million and $11.3 million of our total restructuring costs in 2023 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. In 2022, we incurred severance charges of approximately $3.5 million, as well as implementation costs, consisting primarily of plant exit costs and professional fees, of approximately $18.2 million. Approximately $1.6 million and $14.3 million of our total restructuring costs in 2022 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. In 2021, we incurred severance charges of approximately $2.9 million, as well as implementation costs, consisting primarily of plant exit costs and professional fees, of approximately $40.3 million. Approximately $4.7 million and $6.5 million of our total restructuring costs in 2021 related to our Driveline and Metal Forming segments, respectively, while the remainder were corporate costs. We expect to incur approximately $10 million to $20 million of total restructuring charges in 2024 as we begin restructuring actions associated with the 2024 Program and continue our restructuring actions associated with Tekfor. In 2023 and 2022, we incurred acquisition and integration costs associated with our acquisition of Tekfor, and in 2022 and 2021, we incurred acquisition and integration costs associated with our acquisition of Emporium. In 2021, we also incurred the remaining integration costs associated with our 2017 acquisition of MPG. The following table represents a summary of charges incurred in 2023, 2022 and 2021 associated with acquisition and integration costs:
| Acquisition-Related Costs |  |  |  | Integration Expenses |  | Total
| (in millions)
2023 Charges | $ | — |  |  |  |  | $ | 6.9 |  |  | $ | 6.9 |
2022 Charges | 6.0 |  |  |  |  | 2.5 |  |  | 8.5 |
2021 Charges | 0.4 |  |  |  |  | 5.8 |  |  | 6.2 |
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 integration activities. Total restructuring charges and acquisition-related charges of $25.2 million, $30.2 million and $49.4 million are shown on a separate line item titled "Restructuring and Acquisition-Related Costs" in our Consolidated Statements of Operations for 2023, 2022 and 2021, 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 -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//805/tableOfContent + Details
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