Other Expense, Net

6 Months Ended

Jun. 30, 2020

Other Income and Expenses [Abstract]

Other Expense, net

Other Expense, Net

Items included in Other expense, net consist of:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2020		2019		2020		2019
Restructuring expense	$	37	$	13	$	52	$	27
Merger, acquisition and divestiture expense	21		5		42		6
Asset impairments	17		—		26		—
Net gain on insurance proceeds for property damage	(6)		—		(6)		—
Unfavorable arbitration loss	—		—		—		14
Other income	(1)		(2)		(1)		(2)
Other expense, net	$	68	$	16	$	113	$	45

During the three and six months ended June 30, 2020, the Company recorded restructuring expense of $37 million and $52 million, respectively, primarily related to actions to reduce structural costs. During the three and six months ended June 30, 2019, the Company recorded restructuring expense of $13 million and $27 million, respectively. This restructuring expense primarily related to Drivetrain and Engine segment actions designed to improve future profitability and competitiveness. Refer to Note 18, "Restructuring," to the Condensed Consolidated Financial Statements for more information.

During the three and six months ended June 30, 2020, the Company recorded merger, acquisition and divestiture expense of $21 million and $42 million, respectively, primarily related to professional fees associated with the Company's anticipated acquisition of Delphi Technologies PLC ("Delphi Technologies"). During the three and six months ended June 30, 2019, the Company recorded merger, acquisition and divestiture expense of $5 million and $6 million, respectively, primarily related to its review of strategic acquisition targets, including its 20% equity interest in Romeo Systems, Inc. ("Romeo") and divestiture activities for non-core pipe and thermostat product lines.

During the three and six months ended June 30, 2020, the Company recorded asset impairment costs of $9 million in the Engine segment and $8 million in the Drivetrain segment, related to the write down of property, plant and equipment associated with the recently announced closures of two European facilities. During the three months ended March 31, 2020, the Company also recorded $9 million of asset impairment cost to record its investment in Romeo at its fair value of $41 million. Refer to Note 21, "Recent Transactions and Events," to the Condensed Consolidated Financial Statements for more information.

During the three and six months ended June 30, 2020, the Company recorded a $6 million net gain from insurance recovery proceeds from damages created by a tornado that struck the Company's facility in Seneca, South Carolina (the "Seneca Plant"). Refer to Note 21, "Recent Transactions and Events," to the Condensed Consolidated Financial Statements for more information.

During the six months ended June 30, 2019, the Company recorded $14 million of expense related to the receipt of a final unfavorable arbitration decision associated with the resolution of a matter related to a previous acquisition.