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Other Income (Expense) | 12 Months Ended
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Dec. 31, 2021
Other Income and Expenses [Abstract] |
Other Income (Expense) |
3. | Other Income (Expense)
Operating We incurred $6.2 million, $46.7 million and $35.1 million of restructuring and impairment costs during the years ended December 31, 2021, 2020 and 2019, respectively. During 2021, we conducted a number of restructuring activities throughout our operations which was mostly comprised of targeted workforce reductions. All costs associated with such initiatives were incurred in 2021. Workforce reductions associated with our restructuring activities totaled 58 administrative and manufacturing positions. In the fourth quarter of 2020, we decided to exit the manufacturing of metallic gaskets. As a result of this decision, we evaluated the product line and determined the assets were impaired. We recorded a $1.5 million impairment, of which $1.4 million was related to the impairment of long-lived assets and $0.1 million was related to inventory. In the fourth quarter of 2020, we announced a restructuring and reduction in our CPI German workforce. As a result, we recorded $3.4 million in restructuring charges related to severance. In the third quarter of 2020, sales declines by businesses utilizing two of the indefinite-lived trademarks within our Sealing Technologies segment were determined to be triggering events for an interim impairment analysis. Based on the results of this analysis, we recorded a $16.1 million impairment of indefinite-lived trademarks in the third quarter. Prior to selling our bushing block business operated at the Dieuze facility, we evaluated the business and determined it was impaired and incurred restructuring charges. We recorded $8.6 million in restructuring and impairment charges, that consisted of $3.0 million of non-cash impairments of long-lived assets, $4.4 million (3.7 million EUR) of cash payments paid to the buyer at closing, and $1.2 million in severance, legal and other costs. The exit from our Motor Wheel® brake drum and Crewson® brake adjuster brands resulted in restructuring and impairment charges of $7.4 million in 2020, of which $3.6 million was related to inventory impairment charges, $3.5 million was impairment of intangible assets, and $0.3 million related to severance, contract cancellation costs, and other expenses. million. In the second quarter of 2020, we entered into an agreement to sell the Lunar® air disc brake business. As a result of this agreement, we incurred $1.9 million in impairment charges, of which $1.4 million related to impairment of long-lived assets and $0.5 million related to impairment of inventory. In addition to the above mentioned restructuring and impairment charges, we undertook various other smaller restructuring and impairment action in 2020 that resulted in recording $7.6 million of restructuring related to severance and other exit costs and $0.2 million of impairment related to inventory of discontinued product lines. Workforce reductions in 2020 associated with the aforementioned restructuring actions totaled 289 administrative and manufacturing positions. Based upon an analysis of the Motorwheel product line in the Stemco division of our Sealing Technologies segment, we determined that the long-lived assets of the Motorwheel product line were not recoverable as of December 31, 2019. As a result, we recorded an impairment of $21.0 million, of which $9.2 million related to the impairment of certain finite-lived intangible assets, $7.9 million related to the indefinite lived Motorwheel trademark, and $3.9 million related to the impairment of property, plant, and equipment. Additionally, in the fourth quarter of 2019, we recorded restructuring charges related to our decision to shut down and exit production of our ATDynamics, Aeris and BatRF product lines in the Stemco division of our Sealing Technologies segment. As a result, we recorded a $3.1 million inventory impairment, $3.1 million impairment of property, plant, and equipment and intangible assets related to these products, and $1.0 million in severance and other costs. Additionally, in the fourth quarter of 2019, we evaluated certain long-lived assets in our Commercial Vehicle Components businesses in the Stemco division of our Sealing Technologies segment and determined these assets were not recoverable. As a result, we recorded a $1.6 million impairment loss related to intangible assets associated with the business. Restructuring actions in 2019 are reflected in other (operating) expense in our Consolidated Statement of Operations other than the inventory related charges of $3.1 million, which are reflected in cost of sales. Including smaller targeted restructuring actions, total restructuring costs and impairment charges for our Stemco division were $30.8 million for the year ended December 31, 2019. Workforce reductions in 2019 associated with our exit from the ATDynamics, Aeris, and BatRF product lines as well as other smaller targeted restructuring actions totaled 121 administrative and manufacturing positions. Restructuring reserves at December 31, 2021, as well as activity during the year, consisted of:
| Balance December 31, 2020 |  | Provision |  | Payments |  | Balance December 31, 2021
| (in millions)
Personnel-related costs | $ | 4.5 |  |  | $ | 5.6 |  |  | $ | (9.1) |  |  | $ | 1.0 |
Facility relocation and closure costs | 0.2 |  |  | 0.4 |  |  | (0.6) |  |  | — |
| $ | 4.7 |  |  | $ | 6.0 |  |  | $ | (9.7) |  |  | $ | 1.0 |
Also included in restructuring costs for 2021 were asset write-downs of approximately $0.2 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2020, as well as activity during the year, consisted of:
| Balance December 31, 2019 |  | Provision |  | Payments |  | Balance December 31, 2020
| (in millions)
Personnel-related costs | $ | 1.4 |  |  | $ | 12.0 |  |  | $ | (8.9) |  |  | $ | 4.5 |
Facility relocation and closure costs | — |  |  | 5.4 |  |  | (5.2) |  |  | 0.2 |
| $ | 1.4 |  |  | $ | 17.4 |  |  | $ | (14.1) |  |  | $ | 4.7 |
Also included in restructuring costs for 2020 were asset write-downs of approximately $29.3 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2019, as well as activity during the year, consisted of:
| Balance, December 31, 2018 |  | Provision |  | Payments |  | Balance December 31, 2019
| (in millions)
Personnel-related costs | $ | — |  |  | $ | 5.1 |  |  | $ | (3.7) |  |  | $ | 1.4 |
Facility relocation and closure costs | 1.0 |  |  | 1.2 |  |  | (2.2) |  |  | — |
| $ | 1.0 |  |  | $ | 6.3 |  |  | $ | (5.9) |  |  | $ | 1.4 |
Also included in restructuring costs for 2019 were asset write-downs of approximately $28.8 million that did not affect the restructuring reserve liability. Restructuring costs by reportable segment are as follows:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
| (in millions)
Sealing Technologies | $ | 2.4 |  |  | $ | 30.3 |  |  | $ | 32.2 |
Advanced Surface Technologies | — |  |  | 0.1 |  |  | 0.1 |
Engineered Materials | 3.6 |  |  | 16.3 |  |  | 2.1 |
Corporate | 0.2 |  |  | — |  |  | 0.7 |
| $ | 6.2 |  |  | $ | 46.7 |  |  | $ | 35.1 |
Also included in other operating income (expense) for the year ended December 31, 2021 was income of $0.2 million related to the sale of fixed assets. Included in other operating income (expense) for the years ended December 31, 2020 and 2019 were expenses of $7.8 million and $0.2 million, respectively, primarily consisting of legal fees and the settlement in 2020 of a legal claim with respect to products last supplied in 2008. Non-Operating During 2021, 2020 and 2019, we recorded expense of $8.7 million, $38.2 million and $14.5 million, respectively, due to environmental reserve increases based on additional information at several specific sites and other ongoing obligations of previously owned businesses. Refer to Note 19, "Commitments and Contingencies - Environmental," for additional information about our environmental liabilities. We report the service cost component of pension and other postretirement benefits expense in operating income in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are presented in other income (expense). For the years ended December 31, 2021, 2020 and 2019, we reported approximately $(8.3) million, $(3.0) million and $3.3 million, respectively, of expense (income) on the Consolidated Statements of Operations related to the components of net benefit cost other than service cost. Refer to Note 1 4, "Pensions and Postretirement Benefits," for additional information regarding net benefit costs. In connection with the acquisition of Aseptic in 2019, we recognized a liability for uncertain tax positions and a related indemnification asset for the portion of that liability recoverable from the seller. We determined the statute of limitations expired on some of the uncertain tax positions in 2021 and, accordingly, removed a portion of the liability and receivable. For the year ended December 31, 2021, the release of the related liability was recorded as part of our tax expense and we recorded a $3.0 million expense related to the reversal of the receivable in other non-operating income (expense) on our consolidated statement of operations. In 2021, we recorded a pre-tax gain of $135.2 million primarily related to the sale of the CPI Business reported in our Engineered Materials segment and the sale of our polymer components business unit, which was principally located in Houston, Texas and included in our Sealing Technologies segment. Sales reported for these divested businesses included in our net sales for the years ended December 31, 2021, 2020, and 2019 were $112.5 million, $117.6 million, and $130.7 million, respectively. In 2020, we recorded a pretax loss of $2.6 million related to the sale of several businesses, including the Technetics Group UK Limited business, the Air Springs portion of our heavy-duty trucking business, our Motor Wheel® brake drum and Crewson® brake adjuster brands, and our Lunar ® air disc brake business located in our Sealing Technologies segment as well as our bushing block business principally located in Dieuze, France from our Engineered Materials segment. Sales reported for the divested businesses included in our net sales for the years ended December 31, 2020 and 2019 were $110.1 million and $161.2 million, respectively. For a further discussion on businesses disposed of, see Note 2, "Acquisitions and Dispositions." In 2019, we recorded a pre-tax loss of $16.3 million related to the sale of certain assets and certain liabilities of our brake products business unit located in Rome, Georgia, which was included in our Sealing Technologies segment. The loss is composed of the loss on the sale of the business, which closed in the third quarter of 2019, and the loss on the sale of the facility, which closed in the first quarter of 2020. The sales reported by the business and included in our net sales for the year ended December 31 2019 were $37.5 million. Additional disclosures are not presented since the assets, liabilities and results of our disposed operations are not significant to our consolidated financial position or results of operations.

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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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