XML 32 R21.htm IDEA: XBRL DOCUMENT

Impairment and Restructuring Charge

9 Months Ended

Sep. 30, 2020

Note 13. Impairment and Restructuring Charges

We recorded impairment and restructuring charges of $157.7 million in the nine months ended September 30, 2020, which was mainly comprised of a $137.5 million impairment and restructuring charge recognized during the first quarter of 2020 due to our reduced long-term outlook for our businesses serving the energy market and charges at certain of our other businesses for which our outlook has turned negative based on the continued impacts from COVID-19.

The impairment and restructuring charges consisted of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019

	(in millions)
Intangible assets, net	$	9.5	$	—	$	98.5	$	—
Property, plant and equipment		0.5		—		9.2		1.2
Operating lease right-of-use assets		—		—		0.2		—
Total impairment charges		10.0		—		107.9		1.2
Restructuring––cost of sales		(0.2)		—		39.6		—
Restructuring––warehouse, delivery, selling, general and administrative expense		4.8		—		10.2		—
Total impairment and restructuring charges	$	14.6	$	—	$	157.7	$	1.2

The 2020 property, plant and equipment and restructuring – cost of sales charges relate to the closure of certain locations where we anticipated losses on the disposition of certain real property, machinery and equipment and inventories. The measurement of the intangible assets at fair value was determined using discounted cash flow techniques. The use of discounted cash flow models requires significant judgment and requires the use of inputs by management that are unobservable, including revenue forecasts, discount rates and long-term growth rates. Unobservable inputs are inputs that reflect the Company’s expectations of the assumptions market participants would use in pricing the eventual recovery of the oil and natural gas and aerospace industries based on the best information available in the circumstances.