Impairment and Restructuring Charge

3 Months Ended

Mar. 31, 2020

Impairment and Restructuring Charge

Impairment and Restructuring Charge

Note 12.  Impairment and Restructuring Charge

We recorded an impairment and restructuring charge of $137.5 million in the first quarter of 2020. The recent significant decline in crude oil prices that is expected to result in reduced drilling activity and decreased demand for the products we sell informed our decision to close three of our energy-related businesses and reduce our long-term outlook for our businesses servicing the energy market.

The impairment and restructuring charge consisted of the following:

	Three Months Ended
	March 31,
	2020		2019
	(in millions)
Intangible assets, net	$	88.8	$	—
Property, plant and equipment		8.7		—
Operating lease right-of-use assets		0.2		—
Total impairment charge		97.7		—
Restructuring––cost of sales		39.8		—
Total impairment and restructuring charge	$	137.5	$	—

The property, plant and equipment and restructuring – cost of sales charges relate to the planned closure of certain locations where we anticipate losses on the disposition of certain real property, machinery and equipment and inventories. The measurement of the intangible assets at fair value was determined using discounted cash flow techniques. The use of discounted cash flow models requires significant judgement and requires the use of inputs by management that are unobservable, including revenue forecasts, discount rates and long-term growth rates. Unobservable inputs are inputs that reflect the Company’s expectations of the assumptions market participants would use in pricing the eventual recovery of the oil and gas industry based on the best information available in the circumstances.