Exit Activity Costs and Asset Impairments

6 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

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 six months ended June 30, 2019 which related to contract terminations, moving and closing costs, and severance incurred as a result of process simplification initiatives. No facilities were closed during the six months ended June 30, 2019.

During the six months ended June 30, 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 half 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 and six months ended June 30, related to the restructuring activities described above (in thousands):

	Three months ended June 30,
	2019								2018
	Inventory write-downs &/or asset impairment charges		Exit activity costs (recoveries), net			Total			Inventory write-downs &/or asset impairment charges		Exit activity (recoveries) costs, net			Total
Residential Products	$	—	$	219		$	219		$	—	$	(29	)	$	(29	)
Industrial and Infrastructure Products	—		1,346			1,346			—		(28		)	(28		)
Renewable Energy and Conservation	—		(95		)	(95		)	65		(68		)	(3		)
Corporate	—		666			666			—		223			223
Total exit activity costs & asset impairments	$	—	$	2,136		$	2,136		$	65	$	98		$	163

	Six months ended June 30,
	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	$	—	$	370		$	370		$	(43	)	$	(152	)	$	(195	)
Industrial and Infrastructure Products	—		1,313			1,313			(703		)	190			(513		)
Renewable Energy and Conservation	—		(1		)	(1		)	84			49			133
Corporate	—		673			673			—			267			267
Total exit activity costs & asset impairments	$	—	$	2,355		$	2,355		$	(662	)	$	354		$	(308	)

The following table provides a summary of where the asset impairments and exit activity costs (recoveries) were recorded in the consolidated statements of income for the three and six months ended June 30, (in thousands):

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2019		2018			2019		2018
Cost of sales	$	319	$	(193	)	$	285	$	(156	)
Selling, general, and administrative expense	1,817		356			2,070		(152		)
Net asset impairment and exit activity charges (recoveries)	$	2,136	$	163		$	2,355	$	(308	)

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	2,355			354
Cash payments	(1,329		)	(1,256		)
Balance at June 30	$	2,949		$	59