Restructuring and Impairment Charges

6 Months Ended

Aug. 31, 2021

Restructuring and Related Activities [Abstract]

Restructuring and Impairment ChargesIn the second quarter of fiscal 2021, the Company developed and began the implementation of a plan to divest certain non-core businesses and later, divested several non-core businesses. During the six months ended August 31, 2021, the Company did not recognize any restructuring and impairment charges. During the six months ended August 31, 2020, the Company recognized $18.7 million for impairment charges and a loss on the sale of the Galvabar business, which are included in "Restructuring and impairment charges" in the consolidated statements of operations.

The restructuring and impairment charges for the six months ended August 31, 2020 are summarized in the table below (in thousands):


	Six Months Ended August 31, 2020
`	Metal Coatings		Infrastructure Solutions		Total
Write down on assets held for sale to estimated sales price	$	3,161	$	4,100	$	7,261
Write down of assets expected to be abandoned	6,965		—		6,965
Loss on sale of subsidiaries	1,198		—		1,198
Write down of excess inventory	—		2,511		2,511
Costs associated with assets held for sale	—		758		758
Total charges	$	11,324	$	7,369	$	18,693

Infrastructure Solutions Segment

During the six months ended August 31, 2020, as a result of the continued market pressures in the oil and gas services market, the Company undertook an evaluation of inventory within the tubular products business. As a result of the evaluation, the Company determined certain inventories to be in excess of their net realizable value, and recorded an inventory write down of $2.5 million to record the inventory at its current market value.

Metal Coatings Segment

During the six months ended August 31, 2020, the Company approved a plan to close certain locations within the Metal Coatings segment in future periods. Management performed an analysis of the assets at each location expected to be closed. For assets that will not be transferred to another location for use in operations, management wrote the assets down to reflect a decrease in the estimated useful life and lower value to the Company.

The following table summarizes the charges recognized during the six months ended August 31, 2020 related to locations that have been closed (in thousands):


	Six Months Ended August 31, 2020

Inventory write down	$	336
Property & equipment write downs	2,999
Intangible impairment	3,258
Other	372
Total	$	6,965