XML 111 R23.htm IDEA: XBRL DOCUMENT v2.4.1.9
Exit Activity Costs and Asset Impairments
12 Months Ended
Dec. 31, 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. The Company consolidated two facilities each year during 2014, 2013, and 2012, respectively, in this effort.
During this process, the Company has incurred 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.

During 2014, the Company incurred a net change in asset impairment charges of $455,000, 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. The following table sets forth the asset impairment charges (recovery) incurred by segment during the years ended December 31 related to the restructuring activities described above (in thousands):
 
2014
 
2013
 
2012
Residential Products
$
(580
)
 
$
1,616

 
$
1,932

Industrial and Infrastructure Products
125

 

 

Corporate

 

 
140

Total asset impairment charges (recovery) related to restructuring activities
$
(455
)
 
$
1,616

 
$
2,072


The following table provides a summary of exit activity costs and asset impairments by segment for the years ended December 31 (in thousands):
 
2014
 
2013
 
2012
Residential Products
$
752

 
$
2,521

 
$
2,457

Industrial and Infrastructure Products
919

 
113

 
1,407

Corporate

 

 
140

Total exit activity costs and asset impairments
$
1,671

 
$
2,634

 
$
4,004


The following table provides a summary of where the above exit activity costs and asset impairments are recorded in the consolidated statements of operations for the years ended December 31 (in thousands):
 
2014
 
2013
 
2012
Cost of sales
$
843

 
$
2,519

 
$
3,741

Selling, general, and administrative expense
828

 
115

 
263

Total exit activity costs and asset impairments
$
1,671

 
$
2,634

 
$
4,004


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 as of January 1
$
1,092

 
$
1,323

Exit activity costs recognized
2,126

 
1,018

Cash payments
(2,643
)
 
(1,249
)
Balance as of December 31
$
575

 
$
1,092