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Impairment and Restructuring Charges

3 Months Ended

Mar. 31, 2021

Impairment and Restructuring Charges

Note 12. Impairment and Restructuring Charges

We recorded an impairment and restructuring charge of $137.5 million in 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 had turned negative based on the impacts of COVID-19.

The impairment and restructuring charges consisted of the following:


	Three Months Ended
	March 31,
	2021		2020

	(in millions)
Intangible assets, net	$	—	$	88.8
Property, plant and equipment		—		8.7
Operating lease right-of-use assets		—		0.2
Total impairment charges		—		97.7
Restructuring––cost of sales		—		39.8
Restructuring––warehouse, delivery, selling, general and administrative expense		0.1		—
Total impairment and restructuring charges	$	0.1	$	137.5

The 2020 property, plant and equipment and restructuring – cost of sales charges related 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 in the first quarter of 2020 was determined using discounted cash flow techniques. The use of discounted cash flow models requires judgment and the use of inputs by management that are unobservable, including revenue forecasts, discount rates and long-term growth rates. Unobservable inputs are inputs that reflected 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 at that time.