Plant Closure and Consolidation

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

Plant Closure and Consolidation

Plant Closure and Consolidation

In the three and nine months ended September 30, 2021, the Company recorded expenses totaling $1.8 million and $3.1 million, respectively, in its Assembly Components segment. These charges were recorded in connection with actions taken to close and consolidate its extrusion operations in Tennessee and its fuel operations in Michigan, and to complete other cost-reduction actions in this segment. In the three and nine months ended September 30, 2021, the expenses included facility-related costs of $1.8 million and $2.8 million, respectively, which were included in cost of sales in the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2021, expenses also included severance costs of $0.3 million, which were included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The Company expects to incur additional moving and other facility-related costs related to these initiatives of approximately $1.9 million in the fourth quarter of 2021.

In the three and nine months ended September 30, 2021, the Company recorded expenses related to plant closure and consolidation in its Engineered Products segment totaling $0.6 million and $1.9 million, respectively, which are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The Company expects to incur additional costs related to these initiatives of approximately $1.6 million in the fourth quarter of 2021.

During the third quarter of 2021, in connection with the plant closure and consolidation activities in its Engineered Products segment, the Company committed to a plan to sell real estate at two operating locations. The Company determined that these assets met the criteria to be classified as held for sale during the third quarter and, therefore, the aggregate carrying value of approximately $4.9 million is included in assets held for sale and presented in Prepaid and other current assets in the Condensed Consolidated Balance Sheet at September 30, 2021. The Company believes that the fair value less costs to sell of these assets exceeds their respective carrying values.