In January 1998, the Company completed the acquisition of Nelson Industries, Inc., for $453 million. Nelson, a filtration and exhaust manufacturer, was consolidated on the date of acquisi- tion. In accordance with APB No. 16, NelsonGLYPH<213>s net assets were recorded at fair value, and the purchase price in excess of net assets is amortized over 40 years. In 1998, the Company recorded special charges of $92 million for product coverage costs and inventory write-downs. The product coverage special charges of $78 million included  $43 million primarily attributable to the recent experience of  higher than anticipated base warranty costs to repair certain automotive engines manufactured in previous years, and  $35 million related to a revised estimate of product coverage cost liability primarily for extended warranty programs. The special charges also included $14 million for inventory write- downs associated with the CompanyGLYPH<213>s restructuring and exit activities. These write-downs related to amounts of inventory rendered excess or unusable due to the closing or consolida- tion of facilities. The 2000 financial results included charges of $160 million ($103 million after tax, or $2.71 per share) reflecting restructur- ing actions, asset impairments and other activities largely focused in the Engine Business. These actions were taken in response to the downturn in the North American heavy-duty truck market and related conditions. The charges included  $42 million attributable to employee severance actions,  $72 million for impairment of equipment and other assets,  $30 million for impairment of software developed for internal  use where the programs were cancelled prior to implementation and $16 million associated with exit costs to close or consoli- date a number of smaller business operations. Of the $160 million charge, $131 million was assigned to the Engine Business, $19 million to the Power Generation Business and $10 million to the Filtration Business and Other. Exit costs of $16 million to close or consolidate a number of small businesses and operations included $6 million for equipment removal costs, $5 million to satisfy contractual obli- gations and $5 million for other exit costs. As the restructuring actions consist primarily of the closing or consolidation of smaller operations, the Company does not expect these actions to have a material effect on future revenues. The asset impairment charge of $30 million consisted of capital- ized software-in-process being developed for internal use. The charge was related to manufacturing, financial and administra- tive information technology programs cancelled during program development and prior to implementation. The asset impairment loss of $72 million was calculated in accordance with the provisions of SFAS 121. Asset impairment of equipment from discontinuing operations was primarily for engine assembly and fuel system manufacturing equipment  to be disposed of upon the closure or consolidation of produc- tion operations. The asset impairment charge included a write-down of $38 million for manufacturing equipment that will continue to be used for approximately two years. Depreciation will continue on these assets over that period of time. The expected recovery value of equipment to be disposed of was based on estimated salvage value and was excluded from the write-down. The charge also included $11 million for equipment available for disposal, $6 million for properties available for disposal, $10 million for investments and $7 million for intangi- bles and minority interest positions related to divesting smaller operations and investments. The carrying value of assets held for disposal and the effect from suspending depreciation on such assets is immaterial. Workforce reduction actions included overall cutbacks  in staffing levels plus the impacts of closing and consolidating operations. Restructuring charges for workforce reductions included the severance costs and related benefits of  terminating 600 salaried employees and 830 hourly employees.  Costs for workforce reductions were based on amounts pursuant to benefit programs or statutory requirements of  the affected operations.  25 Note 4. Restructuring, Asset Impairment and  Other Special Charges: Note 3. Special Charges: Note 2. Acquisition: