Acquisitions

9 Months Ended

Dec. 31, 2019

Business Combination, Step Acquisition [Abstract]

Acquisitions

2.    Disposals

As part of our business strategy, Blueprint for Growth, in the first quarter of fiscal 2019 the Company started the process to sell its Tire Shredder business, its crane builder business, Crane Equipment and Service Inc., and Stahlhammer Bommern GmbH, its European forging business acquired in 2014 (the "Sold Businesses") as they were no longer considered part of the core business or a strategic fit with the Company's long-term growth and operational objectives. On December 28, 2018, the Company sold its Tire Shredder business and recognized a gain. On February 28, 2019, the Company sold the remaining two businesses, Crane Equipment and Service Inc. and Stahlhammer Bommern GmbH, and recognized a loss. As such, there are no remaining businesses which meet the criteria as being held for sale in accordance with ASC 360-10-45-9, "Property, Plant, and Equipment." The businesses were not deemed a strategic shift or significant to be considered discontinued operations.

When businesses or asset groups meet the criteria as held for sale, they are recorded at the lesser of their carrying value or fair value less cost to sell. The Company recognized a gain on the sale of its Tire Shredder business in the amount of $1,103,000 during the three months ended December 31, 2018. An impairment loss was recorded on the remaining held for sale businesses in the amount of $27,753,000 during the nine months ended December 31, 2018, of which $16,653,000 was recorded during the three months ended December 31, 2018. The fiscal 2019 third quarter impairment loss of $16,653,000 included a $9,835,000 reduction to property, plant, and equipment and a $6,818,000 reduction to inventory. Both the gain and impairment loss were recorded in Net loss on sales of businesses, including impairment on the Condensed Consolidated Statements of Operations during the nine months ended December 31, 2018 to reduce the carrying value of these asset groups to their fair values less estimated costs to sell. Net sales and pre-tax income for the three Held for Sale Businesses was $8,983,000 and $29,320,000 and $990,000 and $3,106,000 for the three and nine months ended December 31, 2018, respectively. In the nine months ending December 31, 2019, the Company recognized an additional loss of $176,000 as a result of a final working capital adjustment.

For additional information on the sold businesses refer to the Company's 2019 10-K.

As part of its business strategy, the Company is consolidating its manufacturing footprint. The Company previously announced in fiscal 2019 the closure of its Salem, Ohio facility. In fiscal 2020 the Company announced that it plans to consolidate its hoist manufacturing facility in Lisbon, Ohio with its Wadesboro, North Carolina and Damascus, Virginia facilities in fiscal 2021. The Salem, Ohio facility consolidation was completed during the first quarter of fiscal 2020. In total $696,000 and $1,451,000 are included in Cost of products sold on the Condensed Consolidated Statements of Operations during the three and nine months ended December 31, 2019, respectively, related to the consolidation of the Lisbon and Salem facilities.

The Company also announced during fiscal 2020 its plan to consolidate two of its Hangzhou, China manufacturing facility into one and reorganize its Asia Pacific operations. $792,000 and $1,253,000 are included in General and administrative expenses and $45,000 and $257,000 are included in Selling expenses on the Consolidated Statements of Operations during the three and nine months ended December 31, 2019, respectively, related to this consolidation.