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OTHER OPERATING EXPENSE (INCOME), NET
 12 Months Ended
Dec. 31, 2020
Other Income and Expenses [Abstract]  
OTHER EXPENSE (INCOME), NET OTHER OPERATING EXPENSE (INCOME), NET
Items included in Other operating expense (income), net consist of:
Year Ended December 31,
(in millions)202020192018
Restructuring expense (Note 4)$203 $72 $67 
Merger, acquisition and divestiture expense96 11 6 
Intangible asset accelerated amortization (Note 12)38 — — 
Asset impairment and loss on divestiture17 7 25 
Net gain on insurance recovery for property damage(9)— — 
Gain on derecognition of subsidiary— (177)— 
Unfavorable arbitration loss— 14 — 
Asbestos-related adjustments— — 23 
Gain on sale of building— — (19)
Gain on commercial settlement— — (4)
Other expense (income), net(4)(2)(4)
Other operating expense (income), net$341 $(75)$94 

Merger, acquisition and divestiture expense: During the years ended December 31, 2020, 2019 and 2018, the Company recorded $96 million, $11 million and $6 million of merger, acquisition and divestiture expenses. The merger, acquisition and divestiture expense incurred during the year ended December 31, 2020 is comprised primarily of professional fees associated with the Company’s acquisition of Delphi Technologies completed on October 1, 2020. The merger, acquisition and divestiture expense in the year ended December 31, 2019 was comprised primarily of professional fees, related to the Company’s review of strategic acquisition and divestiture targets, including the transfer of Morse TEC, the anticipated acquisition of Delphi Technologies, the 20% equity interest in Romeo Systems, Inc. and the divestiture activities for the non-core pipes and thermostat product lines. The merger, acquisition and divestiture expense in the year ended December 31, 2018 comprised primarily of professional fees associated with divestiture activities for the non-core pipes and thermostat product lines.

Asset impairment and loss on divestiture: During the year ended December 31, 2020, the Company recorded asset impairment charges of $17 million. The impairment charges consist of $9 million in the Air Management segment and $8 million in the e-Propulsion & Drivetrain segment, related to the write down of property, plant and equipment associated with the announced closures of two European facilities.

In December 2018, the Company reached an agreement to sell its thermostat product lines for approximately $28 million. As a result, the Company recorded an asset impairment charge of $25 million in the year ended December 31, 2018 to adjust the net book value of this business to fair value less costs to sell. All closing conditions were satisfied, and the sale was closed on April 1, 2019. Based on an agreement reached in the fourth quarter of 2019 regarding the finalization of certain purchase price adjustments related to the sale, the Company recognized an additional loss on sale of $7 million.

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 e-Propulsion & 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 year ended December 31, 2020, the Company recorded a net gain of $9 million 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 December 31, 2020 have been fully recovered through these insurance proceeds. As of December 31, 2020, the Company had received a total of $145 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.

Gain on derecognition of subsidiary: On October 30, 2019, the Company entered into a definitive agreement with Enstar Holdings (US) LLC (“Enstar”), a subsidiary of Enstar Group Limited, pursuant to which Enstar acquired 100% of the equity interests of Morse TEC, a consolidated wholly-owned subsidiary of the Company that holds asbestos and certain other liabilities. In connection with the closing, the Company recorded a pre-tax gain of $177 million. Refer to Note 21 “Contingencies,” to the Consolidated Financial Statements for more information.

Unfavorable arbitration loss: During the year ended December 31, 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.

Asbestos-related adjustments: During the year ended December 31, 2018, the Company recorded asbestos-related adjustments resulting in an increase to expense of $23 million. This increase was the result of actuarial valuation changes associated with the Company's estimate of liabilities for asbestos-related claims asserted but not yet resolved and potential claims not yet asserted. Refer to Note 21, “Contingencies,” to the Consolidated Financial Statements for more information.