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Restructuring and Impairment Expense
3 Months Ended
Mar. 31, 2016
Restructuring and Related Activities [Abstract]  
Restructuring and Impairment Expense
RESTRUCTURING AND IMPAIRMENT EXPENSE
Restructuring and impairment expense were as follows:
 
Three Months Ended March 31,
(In millions)
2016
 
2015
Restructuring expense:
 
 
 
Subsea Technologies
$
0.1

 
$
0.7

Surface Technologies
3.9

 
4.4

Energy Infrastructure
1.9

 
1.4

Total restructuring expense
5.9

 
6.5

Impairment expense:
 
 
 
Subsea Technologies
0.1

 
0.3

Surface Technologies
34.3

 
3.6

Energy Infrastructure

 

Total impairment expense
34.4

 
3.9

Total restructuring and impairment expense
$
40.3

 
$
10.4


Restructuring—As a result of the decline in crude oil prices and its effect on the demand for products and services in the oilfield services industry worldwide, beginning in 2015, we initiated a company-wide reduction in workforce intended to reduce costs and better align our workforce with current and anticipated activity levels, which resulted in the continued recognition of severance costs relating to termination benefits and other restructuring charges.
Asset impairments—We conduct impairment tests on long-lived assets whenever events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition over the asset’s remaining useful life. Our review of recoverability of the carrying value of our assets considers several assumptions including the intended use and service potential of the asset.
The prolonged downturn in the energy market and its corresponding impact on our business outlook led us to conclude the carrying amount of certain long-lived assets in our United States surface integrated services business exceeded their fair values. The low commodity price environment’s impact on our outlook for revenue growth and profitability of our U.S. surface integrated services business led us to record impairment charges in our Surface Technologies segment during the three months ended March 31, 2016. These asset impairments included impairment charges of our flowback plant, property and equipment and related customer relationships intangible assets of $12.4 million and $3.4 million, respectively, to record the assets to their combined fair value of $44.7 million as of March 31, 2016.
Also, we recorded impairment charges of $15.3 million and $2.8 million, to our wireline equipment and allocated goodwill, respectively, to record the assets to their combined fair value of $20.0 million as of March 31, 2016. The impairment charges, recorded in our Surface Technologies segment, include wireline operations in both the United States and Canada and relate to the classification of the assets as held for sale. Refer to Note 5 for information related to the classification of these assets as held for sale.