Exit Activity Costs and Asset Impairments

6 Months Ended

Jun. 30, 2022

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

Exit activity costs (recoveries) were incurred during the six months ended June 30, 2022 and 2021 which related to moving and closing costs, severance, and contract terminations, 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 exited a facility, relocating to a new one, and separately, closed one other facility during the six months ended June 30, 2022. During the six months ended June 30, 2021, the Company closed two facilities as a result of these initiatives.

The following tables set forth the exit activity costs (recoveries) and asset impairment charges 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,
	2022						2021
	Exit activity costs		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	75	$	—	$	75	$	786	$	—	$	786
Residential	1,295		—		1,295		29		—		29
Agtech	97		—		97		1,287		—		1,287
Infrastructure	—		—		—		—		—		—
Corporate	62		—		62		59		—		59
Total exit activity costs & asset impairments	$	1,529	$	—	$	1,529	$	2,161	$	—	$	2,161

	Six months ended June 30,
	2022						2021
	Exit activity costs (recoveries), net		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	1,403	$	1,198	$	2,601	$	4,564	$	1,193	$	5,757
Residential	1,298		—		1,298		94		—		94
Agtech	88		—		88		1,491		—		1,491
Infrastructure	(63)		—		(63)		—		—		—
Corporate	82		—		82		59		—		59
Total exit activity costs & asset impairments	$	2,808	$	1,198	$	4,006	$	6,208	$	1,193	$	7,401

The following table provides a summary of where the exit activity costs and asset impairment charges 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,
	2022		2021		2022		2021
Cost of sales	$	80	$	718	$	2,288	$	5,765
Selling, general, and administrative expense	1,449		1,443		1,718		1,636
Total exit activity and asset impairment charges	$	1,529	$	2,161	$	4,006	$	7,401

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

	2022		2021
Balance at January 1	$	272	$	1,030
Exit activity costs recognized	2,808		6,208
Cash payments	(1,951)		(4,646)
Balance at June 30	$	1,129	$	2,592