Exit Activity Costs and Asset Impairments

12 Months Ended

Dec. 31, 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, in the sale and exiting of less profitable businesses or products lines, and the reduction in our manufacturing footprint.

Exit activity costs were incurred during 2019 related to contract terminations, severance, and other moving and closing costs incurred as a result of process simplification initiatives. In conjunction with these initiatives, the Company closed and consolidated one facility in 2019. In 2018, the Company sold and leased back a facility which resulted in a gain, and closed four other facilities. The Company closed three facilities during 2017. These closures resulted in asset impairment charges and exit activity costs.

The following table sets forth the asset impairment charges and exit activity costs incurred by segment during the years ended December 31 related to the restructuring activities described above (in thousands):

	2019							2018								2017
	Inventory write-downs &/or asset impairment (recoveries) charges, net			Exit activity costs		Total		Inventory write-downs &/or asset impairment charges (recoveries), net			Exit activity (recoveries) costs, net			Total		Inventory write-downs &/or asset impairment charges (recoveries), net			Exit activity costs		Total
Renewable Energy & Conservation	$	(9	)	$	66	$	57	$	105		$	(33	)	$	72	$	509		$	2,986	$	3,495
Residential Products	417			3,440		3,857		1,586			1,321			2,907		345			1,058		1,403
Industrial & Infrastructure Products	—			4,978		4,978		(347		)	1,749			1,402		(2,484		)	2,820		336
Corporate	—			1,660		1,660		—			438			438		—			261		261
Total exit activity costs & asset impairments	$	408		$	10,144	$	10,552	$	1,344		$	3,475		$	4,819	$	(1,630	)	$	7,125	$	5,495

The following table provides a summary of where the above exit activity costs and asset impairments are recorded in the consolidated statements of operations for the years ended December 31 (in thousands):

	2019		2018		2017
Cost of sales	$	4,255	$	1,906	$	911
Selling, general, and administrative expense	6,297		2,913		4,584
Total exit activity costs and asset impairments	$	10,552	$	4,819	$	5,495

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 as of January 1	$	1,923		$	961
Exit activity costs recognized	10,144			3,475
Cash payments	(4,629		)	(2,513		)
Non-cash charges	(1,989		)	—
Balance as of December 31	$	5,449		$	1,923

During the three years ended December 31, 2019, none of the Company's exit activities met the criteria to be reported as discontinued operations, as these actions do not represent a strategic shift that has or will have a major effect on the Company’s operations. Therefore, prior period results of continuing operations have not been restated to exclude the impact of any divested business’s financial results.