NOTE 18 — RESTRUCTURING

During the first quarter of 2018, the Company conducted a review of its business strategies and product plans given the outlook of the industries it serves and its business environment. As a result, the Company began to execute a restructuring plan to rationalize its facility capacity and management structure, and to consolidate and increase the efficiencies of its Abilene operations. Management has decided to exit the CNG and Fabrication Manufacturing location in Abilene as soon as it fully complies with the requirements established as part of the NMTC Transaction agreement and consolidate these manufacturing activities into other locations. The NMTC Transaction agreement requires operations to remain at that facility until at least July 2018 and the Company expects to vacate the facility by the end of 2018. All remaining costs associated with this facility will be recorded as restructuring expenses going forward. All costs will be incurred solely within the Process Systems segment.

The Company expects to incur restructuring costs associated with the restructuring plan totaling an estimated $738, of which $267 has been incurred to date. The Company anticipates annual cost savings going forward of approximately $575 in facility expenses related to the restructuring.

The Company’s total net restructuring charges for the six months ended June 30, 2018, in addition to the total projected restructuring costs, consist of the following:


	Three Months Ended		Six Months Ended		Total
	June 30, 2018		June 30, 2018		Projected
Cost of sales:
Facility costs	$	64	$	146	$	270
Moving and remediation		1		1		176
Salary and severance		—		17		17
Depreciation		51		67		239
Total cost of sales		116		231		702
Selling, general, and administrative expenses:
Salary and severance		—		36		36
Total selling, general, and administrative expenses		—		36		36
Grand Total	$	116	$	267	$	738