Impairments, Restructuring Charges and Other Items

The charges (gains) recorded as impairments, restructuring charges, and other items are as follows:



	For the years ended December 31,
(in millions)	2012			2011		2010
Severance, restructuring costs, and special termination benefits	$	3.8		$	8.0	$	2.5
Impairment of investment and assets	—			0.4		0.4
Environmental reserve for sold building	0.6			0.1		1.2
Legal settlement	—			—		7.3
Curtailment and settlement gain on postretirement benefits	(45.0		)	—		(0.4		)
Refund of settlement notice and administrative costs	(0.1		)	—		—
Moving costs	0.1			—		—
Settlement loss on hourly pension plan reversion	—			—		29.4
Tax expense on proceeds from hourly retirement plan reversion	—			—		10.9
Final settlement of previously terminated salary retirement plan, net of excise tax	—			—		(1.0		)
Total impairments, restructuring charges, and other items	$	(40.6	)	$	8.5	$	50.3

2012

Operating income included $40.6 million of income from impairments, restructuring charges and other items in 2012. This included $3.8 million related to severance associated with a reduction in force at our Brazilian ($2.6 million), North American ($0.3 million), French ($0.6 million) and Corporate ($0.3 million) locations, postretirement curtailment gains of $45.0 million (see Note 5, "Pension and Other Postretirement Benefit Plans", for additional information), an increase of $0.6 million for additional estimated environmental costs associated with the remediation activities at our former Tecumseh, Michigan facility, income of $0.1 million related to a refund of notice and administrative costs related to the antitrust investigation settlement agreement which we entered in October, 2012 (see Note 15, "Commitments and Contingencies", for additional information) and $0.1 million of costs related to relocation of our corporate office.

2011

Operating net loss included $8.5 million of impairments, restructuring charges and other items in 2011. This included $8.0 million related to severance associated with a reduction in force at our Brazilian ($4.1 million), North American ($0.1 million), French ($0.2 million), Indian ($0.1 million) and Corporate ($3.5 million) locations, an increase of $0.1 million for additional estimated environmental costs associated with the remediation activities at our former Tecumseh, Michigan facility and an impairment of asset for $0.4 million. On March 7, 2011, our President and Chief Executive Officer and our Board of Directors mutually determined to separate our President and Chief Executive Officer’s employment with us after a transition period. The $3.5 million severance associated with a reduction in force at our Corporate location includes $1.35 million relating to our former President and Chief Executive Officer’s separation.

2010

Operating net loss included $50.3 million of impairments, restructuring charges and other items in 2010. This included a legal settlement of $7.3 million, an environmental reserve increase of $1.2 million, a curtailment gain of $0.4 million, the $40.3 million of non-cash settlement charges and excise tax related to the reversion of our hourly pension plan, a $0.4 million impairment of an investment, and severance payments associated with a reduction in force at our Brazilian ($0.7 million), Indian ($0.1 million) and Corporate ($1.7 million) locations. In addition, a final settlement gain of $1.0 million, net of excise tax, was received in February 2010 from our previous salaried pension plan that was terminated in 2008.

The following table reconciles cash activities for the years ended December 31, 2012 and 2011 for accrued impairments, restructuring charges and other items:



(in millions)	Severance			Other			Total
Balance at January 1, 2011	$	0.6		$	2.4		$	3.0
Accruals	8.0			0.1			8.1
Payments	(8.5		)	(0.7		)	(9.2		)
Balance at December 31, 2011	$	0.1		$	1.8		$	1.9
Accruals	3.8			0.6			4.4
Payments	(3.8		)	(0.9		)	(4.7		)
Balance at December 31, 2012	$	0.1		$	1.5		$	1.6

The accrued severance balance at December 31, 2012 includes $0.1 million of accrued severance payments to be made related to our European reduction in force and is expected to be settled in 2013. The environmental reserve balance at December 31, 2012, included in other, represents the estimated costs associated with remediation activities at our former Tecumseh, Michigan facility, and is expected to be paid over the next 18 to 24 months.