Exit Activity Costs and Asset Impairments

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

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, the sale and exiting of less profitable businesses or product lines, and a reduction in our manufacturing footprint.

Exit activity costs were incurred during the six months ended June 30, 2021 and 2020 which related to moving and closing costs, contract terminations, and severance, along with asset impairment charges related to the write-down of inventory and impairment of machinery and equipment associated with discontinued product lines, as a result of process simplification initiatives. In conjunction with these initiatives, the Company closed two facilities during the six months ended June 30, 2021, and one facility during the six months ended June 30, 2020.

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,
	2021						2020
	Exit activity costs		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	786	$	—	$	786	$	—	$	—	$	—
Residential	29		—		29		263		—		263
Agtech	1,287		—		1,287		316		72		388
Infrastructure	—		—		—		—		—		—
Corporate	59		—		59		45		—		45
Total exit activity costs & asset impairments	$	2,161	$	—	$	2,161	$	624	$	72	$	696


	Six months ended June 30,
	2021						2020
	Exit activity costs		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	4,564	$	1,193	$	5,757	$	18	$	—	$	18
Residential	94		—		94		484		—		484
Agtech	1,491		—		1,491		316		72		388
Infrastructure	—		—		—		—		—		—
Corporate	59		—		59		99		—		99
Total exit activity costs & asset impairments	$	6,208	$	1,193	$	7,401	$	917	$	72	$	989

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 and six months ended June 30, (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of sales	$	718	$	472	$	5,765	$	541
Selling, general, and administrative expense	1,443		224		1,636		448
Total asset impairment and exit activity charges	$	2,161	$	696	$	7,401	$	989

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


	2021		2020
Balance at January 1	$	1,030	$	2,083
Exit activity costs recognized	6,208		917
Cash payments	(4,646)		(2,171)
Balance at June 30	$	2,592	$	829