Impairments, Restructuring Charges and Other Items

12 Months Ended

Dec. 31, 2011

Impairments, Restructuring Charges and Other Items [Abstract]

Impairments, Restructuring Charges and Other Items

NOTE 12. Impairments, Restructuring Charges and Other Items

The charges (gains) recorded as restructuring, impairment and other charges for the years ended December 31 are as follows:

( in millions)	2011		2010			2009
Severance, restructuring costs, and special termination benefits	$	8.0	$	2.5		$	18.1
Impairment of investment and asset		0.4		0.4			1.0
Environmental reserve on held-for-sale building		0.1		1.2			2.3
Legal settlement		—		7.3			—
Curtailment gain		—		(0.4	)		—
Settlement loss on the hourly pension plan reversion		—		29.4			—
Excise 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	)		—
Impairment of prepaid outside sales expense		—		—			1.5
Repayment of legal fees		—		—			1.1
Loss on transfer of surplus land		—		—			0.4
Total impairments, restructuring charges, and other items	$	8.5	$	50.3		$	24.4

2011

Operating net loss included $8.5 million of impairments, restructuring charges and other items in 2011. This included 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 (as more fully described in See Note 5, “Pension and Other Postretirement Benefit Plans”); 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.

2009

Operating net loss included $24.4 million of impairments, restructuring charges and other items in 2009. The amounts reported under “severance, restructuring costs, and special termination benefits” of $18.1 million represent severance payments made to employees, payroll taxes, and other benefit-related costs for employees terminated during the period. This amount includes the $2.6 million severance payment to our former Chief Executive Officer and $1.8 million for certain key employees covered by severance agreements. The remaining severance expense was a result of restructuring costs at our European ($7.9 million), Brazilian ($3.8 million), North America ($1.3 million), and Indian ($0.7 million) locations during the year.

The other expenses include an environmental reserve of $2.3 million, which was established in the first quarter of 2009 and represents estimated costs associated with remediation activities at some of our former facilities based on information derived from a Phase II environmental study. The timing and amount of cash expenditures related to this estimated liability cannot currently be determined. Also included in other is $1.1 million for reimbursements to the Herrick Foundation for its expenses in connection with our 2009 annual meeting of shareholders and the $0.4 million relates to a loss on the sale of surplus land in 2009.

Also included in impairments, restructuring charges and other items are non-cash items of $2.5 million for the write-off of prepaid outside sales expense determined to no longer provide benefit to us in the future of $1.5 million and impairment of our investment in an unconsolidated subsidiary of $1.0 million.

The following table reconciles cash activities for the years ended December 31, 2011 and 2010 for accrued impairment, restructuring charges and other items.

(In Millions)	Severance			Excise Tax			Legal			Other			Total
Balance at January 1, 2010	$	9.7		$	—		$	—		$	1.8		$	11.5
Accruals		2.1			10.9			7.3			1.2			21.5
Payments		(11.2	)		(10.9	)		(7.3	)		(0.6	)		(30.0	)
Balance at December 31, 2010	$	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

The accrued severance balance at December 31, 2011 includes $0.1 million of accrued severance payments to be made related to our European reduction in force and is expected to be paid in 2012. The environmental reserve balance at December 31, 2011, 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 6 to 12 months.