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Impairment and Restructuring Charges

12 Months Ended

Dec. 31, 2020

Impairment and Restructuring Charges

Note 19. Impairment and Restructuring Charges

We recorded impairment and restructuring charges of $157.8 million in 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 (oil and natural gas) market and charges at certain of our other businesses for which our outlook had turned negative based on the continued impacts from COVID-19. The 2018 charges mainly related to our decision to downsize one of our energy businesses due to changes in competitive factors for certain products they sold.

The impairment and restructuring charges consisted of the following:


	Year Ended December 31,
	2020		2019		2018

	(in millions)
Intangible assets, net	$	98.5	$	—	$	33.2
Property, plant and equipment		9.3		1.2		3.8
Operating lease right-of-use assets		0.2		—		—
Total impairment charges		108.0		1.2		37.0
Restructuring––cost of sales		38.2		—		—
Restructuring––warehouse, delivery, selling, general and administrative expense		11.6		—		2.5
Total impairment and restructuring charges	$	157.8	$	1.2	$	39.5

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 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.