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Impairment, Restructuring and Other Exit Costs | 3 Months Ended
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Mar. 31, 2020
Restructuring and Related Activities [Abstract] |
Impairment, Restructuring and Other Exit Costs | Impairment, Restructuring and Other Exit Costs Restructuring and Other Exit Costs During 2019, we initiated a broad restructuring plan designed to optimize costs and improve operational efficiency. These efforts primarily relate to the rationalization of resources, investments, real estate and overhead across various geographies, as well as the liquidation of certain components of the AMECO business that are being excluded from sale. We expect that our restructuring activities will be substantially completed in 2020. The company did not recognize any material restructuring costs during the three months ended March 31, 2020. Restructuring costs of $27 million, primarily related to severance, were recognized during the three months ended March 31, 2019. Costs recognized to date and the cumulative total cost expected to be incurred under the plan are reflected below:
(in millions) |  | Recognized to Date |  | Expected to be Incurred
Restructuring and other exit costs: |  |  |  |
Severance |  | $ | 63.9 |  |  | $ | 70.0 |
Asset impairments |  | 90.4 |  |  | 90.4 |
Entity liquidation costs (including the recognition of cumulative translation adjustments) |  | 83.7 |  |  | 85.0 |
Other exit costs |  | 2.0 |  |  | 5.0 |
Total restructuring and other exit costs |  | $ | 240.0 |  |  | $ | 250.4 |
A reconciliation of the restructuring liabilities follows:
(in thousands) | Severance | Lease Exit Costs | Other | Total
Balance as of December 31, 2019 | $ | 46,303 |  | $ | 570 |  | $ | 307 |  | $ | 47,180 |
Restructuring charges accrued during the period | (67 | ) | 94 |  | 506 |  | 533 |
Cash payments / settlements during the period | (3,636 | ) | (640 | ) | (213 | ) | (4,489 | )
Currency translation | (172 | ) | — |  | — |  | (172 | )
Balance as of March 31, 2020 | $ | 42,428 |  | $ | 24 |  | $ | 600 |  | $ | 43,052 |
Impairment Certain of our businesses have been adversely affected by the economic impacts of the outbreak of COVID-19 and the steep decline in commodity prices that occurred in the first quarter of 2020. Both of these events have created significant uncertainty and economic volatility and disruption, which have impacted and may continue to impact our business operations. We have experienced, and may continue to experience, reductions in demand for certain of our services and the delay or abandonment of ongoing or anticipated projects due to our clients’, suppliers’ and other third parties’ diminished financial condition or financial distress, as well as governmental budget constraints. These impacts are expected to continue or worsen if stay-at-home, social distancing, travel restrictions and other similar orders or restrictions remain in place for an extended period of time or are re-imposed after being relaxed. Significant uncertainty still exists concerning the magnitude of the impact and duration of these events. Because of these events and their impact on our operations through the date of this filing, we performed interim impairment testing of our goodwill, intangible assets and investments and recognized the following charges during the first quarter of 2020, which were included in “Impairment, restructuring and other exit costs”: •Impairment of goodwill associated with the Diversified Services reporting unit of approximately $169 million; •Impairment of intangible customer relationships associated with the Stork business of $27 million;
• | Other-than-temporary impairment of equity method investments in the Energy & Chemicals business of $86 million; and
•Impairment of information technology assets totaling $16 million. As part of our assessment of goodwill, the fair value of the reporting units was determined using an income based approach that utilized unobservable Level 3 inputs, including significant management assumptions such as expected awards, forecasted revenue and operating margins, weighted average cost of capital, working capital assumptions and general market trends and conditions. The customer relationships' valuation approach utilized unobservable Level 3 inputs including ranges of assumptions of long-term revenue growth from 2% to 5.5% with a weighted average of 2.4%, weighted average cost of capital of 12% and a customer attrition factor of 10%. The valuation of the equity method investments utilized unobservable Level 3 inputs based on the forecast of anticipated volumes and overhead absorption in a cyclical business.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 420 -URI http://asc.fasb.org/topic&trid=2175745 + Details
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