Exit Activity Costs and Asset Impairments

6 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Exit Activity Costs And Asset Impairments

EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company focuses on being the low-cost provider of its products by reducing operating costs and implementing lean manufacturing initiatives, which have in part led to the consolidation of facilities and product lines. During the six months ended June 30, 2014, the Company consolidated two facilities. As a result, the Company incurred a net change in asset impairment charges of $554,000, the net result of a gain on the sale of one of the consolidated facilities previously impaired in 2013, partially offset by impairment charges for the other facility consolidated during 2014. In 2013, the Company consolidated two facilities in this effort, and also identified two other facilities to close or consolidate, resulting in $616,000 of asset impairment charges along with exit activity costs, including contract termination costs, severance costs, and other moving and closing costs. If future opportunities for cost savings are identified, other facility consolidations and closings will be considered.

The following table provides a summary of asset impairments and exit activity costs (recoveries) incurred by segment during the three and six months ended June 30, (in thousands):

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014		2013
Residential Products	$	(182	)	$	679	$	145	$	710
Industrial and Infrastructure Products	357			72		459		75
Corporate	—			8		—		—
Total exit activity costs and asset impairments	$	175		$	759	$	604	$	785

The following table provides a summary of where the asset impairments and exit activity costs (recoveries) were recorded in the statement of operations for the three and six months ended June 30, (in thousands):

	Three Months Ended   June 30,					Six Months Ended   June 30,
	2014			2013		2014		2013
Cost of sales	$	(123	)	$	679	$	202	$	710
Selling, general, and administrative expense	298			80		402		75
Total exit activity costs and asset impairments	$	175		$	759	$	604	$	785

The following table reconciles the beginning and ending liability for exit activity costs relating to the Company’s facility consolidation efforts (in thousands):

	2014			2013
Balance at January 1	$	1,092		$	1,323
Exit activity costs recognized	1,158			169
Cash payments	(1,522		)	(610		)
Balance at June 30	$	728		$	882