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Other Expense, Net | 9 Months Ended
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Sep. 30, 2020
Other Income and Expenses [Abstract] |
Other Expense, Net | Other Expense, Net Items included in Other expense, net consist of:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Restructuring expense | $ | 20 |  |  | $ | 14 |  |  | $ | 72 |  |  | $ | 41 |
Merger, acquisition and divestiture expense | 16 |  |  | 4 |  |  | 58 |  |  | 10 |
Asset impairments | — |  |  | — |  |  | 26 |  |  | — |
Net gain on insurance recovery for property damage | (3) |  |  | — |  |  | (9) |  |  | — |
Unfavorable arbitration loss | — |  |  | — |  |  | — |  |  | 14 |
Other income, net | (4) |  |  | — |  |  | (5) |  |  | (2) |
Other expense, net | $ | 29 |  |  | $ | 18 |  |  | $ | 142 |  |  | $ | 63 |
Restructuring expense: During the three and nine months ended September 30, 2020, the Company recorded restructuring expense of $20 million and $72 million, respectively, primarily related to actions to reduce structural costs. During the three and nine months ended September 30, 2019, the Company recorded restructuring expense of $14 million and $41 million, respectively. This restructuring expense primarily related to Drivetrain and Engine segment actions designed to improve future profitability and competitiveness. Refer to Note 18, "Restructuring," to the Condensed Consolidated Financial Statements for more information. Merger, acquisition and divestiture expense: During the three and nine months ended September 30, 2020, the Company recorded merger, acquisition and divestiture expense of $16 million and $58 million, respectively, primarily related to professional fees associated with the Company's acquisition of Delphi Technologies PLC ("Delphi Technologies") completed on October 1, 2020. During the three and nine months ended September 30, 2019, the Company recorded merger, acquisition and divestiture expense of $4 million and $10 million, respectively, primarily professional fees related to its review of strategic acquisition targets, including its 20% equity interest in Romeo Systems, Inc. ("Romeo") and divestiture activities for non-core pipe and thermostat product lines. Asset impairments: During the nine months ended September 30, 2020, the Company recorded asset impairment charges of $26 million. In the first quarter of 2020, the Company recorded a $9 million charge to reduce its investment in Romeo to the estimated fair value of $41 million. Refer to Note 21, "Recent Transactions and Events," to the Condensed Consolidated Financial Statements for more information. The remaining asset impairment charges of $9 million in the Engine segment and $8 million in the Drivetrain segment, related to the write down of property, plant and equipment associated with the announced closures of two European facilities. Net gain on insurance recovery: On April 13, 2020, a tornado struck the Company's facility in Seneca, South Carolina (the "Seneca Plant") causing damage to the Company's assets. The Seneca Plant, which is one of the Company's largest Drivetrain plants, was not in operation at the time. The Company expects its insurance policies to cover the full repair or replacement of the Company's assets that incurred loss or damage. During the three and nine months ended September 30, 2020, the Company recorded a net gain of $3 million and $9 million, respectively, from insurance recovery proceeds, which primarily represents the amount received for replacement cost in excess of carrying value (net of deductible expense of $1 million). In addition, all clean-up and repair costs incurred through September 30, 2020 have been fully recovered through these insurance proceeds. As of September 30, 2020, the Company had received a total of $110 million in cash proceeds from insurance carriers related to this event, substantially all of which have been applied to losses and expenses associated with clean-up and repair costs and capital expenditures. The Company expects its insurance policies to provide coverage for interruption to its business and reimbursement for other expenses and costs that will be incurred relating to the damages and losses sustained. Unfavorable arbitration loss: During the nine months ended September 30, 2019, the Company recorded $14 million of expense related to the receipt of a final unfavorable arbitration decision associated with the resolution of a matter related to a previous acquisition.

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- Definition The entire disclosure for other income or other expense items (both operating and nonoperating). Sources of nonoperating income or nonoperating expense that may be disclosed, include amounts earned from dividends, interest on securities, profits (losses) on securities, net and miscellaneous other income or income deductions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 720 -URI http://asc.fasb.org/topic&trid=2122503 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 610 -URI http://asc.fasb.org/topic&trid=49130413 + Details
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