Restructuring and Impairment Charges

9 Months Ended

Nov. 30, 2021

Restructuring and Related Activities [Abstract]

During the nine months ended November 30, 2021, the Company did not recognize any restructuring and impairment charges. In 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 first and second quarter of fiscal 2021, the Company recognized $1.6 million for impairment charges and a loss on the sale of the Galvabar business, which was included in the Metal Coatings segment. During the third quarter of fiscal 2021, the Company completed the sale of AZZ SMS LLC ("SMS"), which was included in the Infrastructure Solutions segment. The Company recognized impairment charges of $0.9 million for SMS during the second quarter of fiscal 2021, and an additional loss of $1.9 million during the third quarter of fiscal 2021. The loss on the sale of these businesses are included in "Restructuring and impairment charges" in the consolidated statements of operations.

The restructuring and impairment charges for the nine months ended November 30, 2020 are summarized in the table below (in thousands):


	Nine Months Ended November 30, 2020
		Metal Coatings		Infra- structure Solutions		Total
Write down on assets held for sale to estimated sales price		$	2,930	$	4,100	$	7,030
Write down of assets expected to be abandoned		6,922		—		6,922
(Gain)/loss on sale of subsidiaries		1,191		1,859		3,050
Write down of excess inventory		—		2,511		2,511
Costs associated with assets held for sale		—		756		756
Total charges		$	11,043	$	9,226	$	20,269

Infrastructure Solutions Segment

During the nine months ended November 30, 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 adjustment of $2.5 million to reduce the inventory to its net realizable value.

Metal Coatings Segment

During the nine months ended November 30, 2020, the Company approved a plan to close certain locations within the Metal Coatings segment. Management performed an analysis of the assets at each location expected to be closed. For assets that were not transferred to another location for use in operations, management recognized a charge to reflect a decrease in the estimated useful life and lower value to the Company.

The following table summarizes the charges recognized during the nine months ended November 30, 2020 related to locations that have been closed (in thousands):


	Nine Months Ended November 30, 2020

Inventory write down	$	336
Property & equipment write downs	2,956
Intangible impairment	3,258
Other	372
Total	$	6,922