EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company has incurred exit activity costs and asset impairment charges as a result of its 80/20 simplification and portfolio management initiatives. These initiatives have resulted in the identification of low-volume, low margin, internally-produced products which have been or will be outsourced or discontinued, the simplification of processes, and in the sale and exiting of less profitable businesses or products lines.

Exit activity costs were incurred during the three months ended March 31, 2019 which related to contract terminations, severance, and other moving and closing costs.

During the three months ended March 31, 2018, the Company incurred exit activity costs resulting from the above initiatives. In conjunction with these initiatives, the Company closed one facility during the first three months of 2018 and sold and leased back another facility which resulted in a gain, which was partially offset by inventory impairment charges incurred for discontinued products.

The following tables set forth the asset impairment charges and exit activity costs incurred by segment during the three months ended March 31, related to the restructuring activities described above (in thousands):



	Three months ended March 31,
	2019								2018
	Inventory write-downs &/or asset impairment charges		Exit activity costs (recoveries), net			Total			Inventory write-downs &/or asset impairment (recoveries) charges, net			Exit activity (recoveries) costs, net			Total
Residential Products	$	—	$	151		$	151		$	(43	)	$	(123	)	$	(166	)
Industrial & Infrastructure Products	—		(33		)	(33		)	(703		)	218			(485		)
Renewable Energy & Conservation	—		94			94			19			117			136
Corporate	—		7			7			—			44			44
Total exit activity costs & asset impairments	$	—	$	219		$	219		$	(727	)	$	256		$	(471	)

The following table provides a summary of where the asset impairments and exit activity costs were recorded in the consolidated statements of income for the three months ended March 31, (in thousands):



	Three Months Ended March 31,
	2019			2018
Cost of sales	$	(34	)	$	37
Selling, general, and administrative expense (recoveries)	253			(508		)
Net asset impairment and exit activity charges (recoveries)	$	219		$	(471	)

The following table reconciles the beginning and ending liability for exit activity costs relating to the Company’s facility consolidation efforts (in thousands):



	2019			2018
Balance at January 1	$	1,923		$	961
Exit activity costs recognized	219			256
Cash payments	(550		)	(739		)
Balance at March 31	$	1,592		$	478