Acquisitions

3 Months Ended

Jun. 30, 2020

Business Combination, Step Acquisition [Abstract]

Restructuring, Impairment, and Other Activities Disclosure

2. Disposals

As part of its business strategy, the Company is consolidating its manufacturing footprint. The Company previously announced in fiscal 2019 the closure of its Salem, Ohio facility. In fiscal 2020 the Company announced that it plans to consolidate its hoist manufacturing facility in Lisbon, Ohio with its Wadesboro, North Carolina and Damascus, Virginia facilities in fiscal 2021. The Salem, Ohio facility consolidation was completed during the first quarter of fiscal 2020 and the Lisbon, Ohio consolidation is expected to be complete next quarter. In total, $1,113,000 and $506,000 are included in Cost of products sold on the Condensed Consolidated Statements of Operations during the three months ended June 30, 2020 and June 30, 2019, respectively, related to the consolidation of the Salem and Lisbon facilities. Costs incurred include accelerated depreciation, accelerated lease costs, severance and other payroll related costs, and a potential refund of a previously recorded tax credit which may need to be refunded to the state.

Further, the Company is closing one of its facilities located in France and consolidating these operations into one of its German facilities. $815,000 of costs included in Cost of products sold, $233,000 in General and administrative expenses, and $94,000 included in Selling expenses on the Condensed Consolidated Statements of Operations during the three months ended June 30, 2020, are related to this consolidation, which primarily are severance costs.

The Company is in the process of selling one of its owned manufacturing facilities in China as a result of its plan to consolidate two of its Hangzhou, China manufacturing facilities into one and reorganize its Asia Pacific operations. During the three months ended June 30, 2020, the Company received cash in the amount of 45 million RMB (approximately $6,363,000) from a buyer to purchase the facility, however, the sale was not finalized as transfer of the title deed was not completed. The net book value of the building was $2,396,000 and is included in the Property, plant, and equipment, net line of the Condensed Consolidated Balance Sheet at June 30, 2020. The new owner will take possession when title transfers in the second quarter of fiscal 2021. The Company recorded an offsetting Accrued liability to the cash received from the buyer as of June 30, 2020. The Company expects the title deed to the facility to be transferred and the sale of the building to be completed at a gain, net of direct sale expenses, during the second quarter of fiscal 2021.