Restructuring Activities (Notes)

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

In late 2019, we approved a restructuring plan to resize certain resources, reduce stranded costs resulting from the spin-off of Arcosa, Inc., and better align support services with our rail-focused strategy. In the first quarter of 2020, we continued our efforts and eliminated additional positions across multiple functions, including certain corporate and operational support functions primarily at our Dallas headquarters. Additionally, we executed a lease agreement on a new headquarters facility to better suit our new organizational structure, which prompted the need to perform a recoverability test to evaluate for impairment. This test indicated that the carrying value of our corporate headquarters campus was not recoverable.The fair value of our corporate headquarters campus was measured based on a third-party valuation estimate using Level 2 and Level 3 inputs in the fair value hierarchy and resulted in a non-cash impairment charge of $5.2 million.

During the three months ended March 31, 2020, we recorded total restructuring charges of $5.5 million, consisting of $5.2 million of non-cash charges from the write-down of our corporate headquarters campus described above and $4.1 million in cash charges for severance costs, partially offset by a $3.8 million gain on the disposition of a non-operating facility.

Other restructuring actions associated with these plans are expected to be substantially completed in 2020. As we continue to reposition the organization, it is possible that we will engage in additional restructuring activities in 2020.

The following table sets forth the restructuring activity and balance of the restructuring liability, which is included in other liabilities in our Consolidated Balance Sheet:

	Accrued charges as of December 31, 2019		Charges and adjustments			Payments			Accrued charges as of March 31, 2020
	(in millions)
Cash charges:
Employee severance costs	$	3.4	$	4.1		$	(6.5	)	$	1.0
	$	3.4	$	4.1		$	(6.5	)	$	1.0
Asset impairment charges:
Write-down of assets			$	5.2
Gain on disposition of assets			(3.8		)
			$	1.4
Total restructuring activities			$	5.5

Although restructuring activities are not allocated to our reportable segments, the following table summarizes the restructuring activities by reportable segment:

	Three Months Ended March 31, 2020
	Employee Severance Costs		Gain on Disposition of Assets			Write-down of Assets		Total
	(in millions)
Railcar Leasing and Management Services Group	$	—	$	—		$	—	$	—
Rail Products Group	2.6		—			—		2.6
All Other	0.1		(3.8		)	—		(3.7		)
Corporate	1.4		—			5.2		6.6
Total restructuring activities	$	4.1	$	(3.8	)	$	5.2	$	5.5