Restructuring and Impairment Charges

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Impairment Charges

Note 14 – Restructuring and Impairment Charges

On September 10, 2020, the Company announced its plan to permanently close its Shoals Facility in light of the ongoing cyclical industry downturn, which has been magnified by the COVID-19 pandemic. On October 8, 2020, the Company reached an agreement with the Shoals facility owner and landlord, to shorten the Shoals lease term by amending the expiration date to the end of February 2021. In addition, the landlord agreed to waive the base rent payable under the original lease for the months of October 2020 through February 2021. Property, plant and equipment with an estimated fair value of $10,148 was sold or transferred to the Shoals landlord during the nine months ended September 30, 2021 as consideration for the landlord’s entry into the lease amendment and the aforementioned rent waiver. Restructuring and impairment charges related to the plant closure for the nine months ended September 30, 2021 primarily represented costs related to relocating some of the facility’s equipment to Castaños.

On July 22, 2019, the Company announced its intention to close its Roanoke, Virginia manufacturing facility as part of its “Back to Basics” strategy. The Company ceased operations at the facility as of November 29, 2019 and terminated its leases for the facility effective as of March 31, 2020. Restructuring and impairment charges related to the plant closure for the nine months ended September 30, 2020 primarily represented impairment charges for property, plant and equipment and costs related to relocating some of the facility’s equipment to other manufacturing locations.

Restructuring and impairment charges are reported as a separate line item on the Company’s condensed consolidated statements of operations for the three and nine months ended September 30, 2021 and 2020, and are detailed below:

	Three Months Ended				Nine Months Ended
	September 30,					September 30,
	2021		2020			2021			2020
Impairment and loss on right of use asset	$	-	$	17,540		$	-		$	17,540
Impairment and loss on disposal of machinery and equipment	$	-	$	9,031		$	1,591		$	9,469
Employee severance and retention		-		3,381			(5	)		3,378
Other charges related to facility closure		-		151			4,944			863
Total restructuring and impairment costs	$	-	$	30,103		$	6,530		$	31,250

	Accrued as of December 31, 2020		Cash Charges		Non-cash charges			Cash payments			Accrued as of September 30, 2021
Impairment and loss on disposal of machinery and    equipment	$	-	$	-	$	269		$	-		$	-
Employee severance and retention		1,596		-		(80	)		(1,297	)		219
Other charges related to facility closure		251		6,437		(96	)		(6,688	)		-
Total restructuring and impairment costs	$	1,847	$	6,437	$	93		$	(7,985	)	$	219

	Accrued as of December 31, 2019		Cash Charges		Non-cash charges			Cash payments			Accrued as of September 30, 2020
Impairment and loss on right of use asset	$	-	$	-	$	17,540		$	-		$	-
Loss on disposal of machinery and equipment		-		-		9,469			-			-
Employee severance and retention		647		3,371		-			(659	)		3,359
Other charges related to facility closure		359		798		(86	)		(1,157	)		-
Total restructuring and impairment costs	$	1,006	$	4,169	$	26,923		$	(1,816	)	$	3,359