Exit Activity Costs and Asset Impairments

9 Months Ended

Sep. 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 nine months ended September 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. During 2013, the Company consolidated two facilities in this effort, and also identified two other facilities to close or consolidate. During the nine months ended September 30,2013, the Company incurred $1,628,000 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 incurred by segment during the three and nine months ended September 30, (in thousands):

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Residential Products	$	487	$	1,341	$	632	$	2,051
Industrial and Infrastructure Products	175		—		634		75
Total exit activity costs	$	662	$	1,341	$	1,266	$	2,126

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

	Three Months Ended   September 30,				Nine Months Ended   September 30,
	2014		2013		2014		2013
Cost of sales	$	378	$	1,341	$	580	$	2,051
Selling, general, and administrative expense	284		—		686		75
Total exit activity costs	$	662	$	1,341	$	1,266	$	2,126

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	1,820			498
Cash payments	(2,275		)	(947		)
Balance at September 30	$	637		$	874