Exit Activity Costs and Asset Impairments

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Exit Activity Costs And Asset Impairments

EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company focuses on being the most efficient 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 three months ended March 31, 2015, the Company sold one facility and eliminated one product line. As a result, the Company recorded a net reduction of selling, general and administrative expense of $6,691,000, the net result of a gain on the sale of this facility, partially offset by impairment charges due to the elimination of the product line, along with other exit activity costs incurred during the quarter. During 2014, the Company consolidated two facilities in this effort. During the three months ended March 31, 2014, the Company incurred $83,000 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 (gains) costs incurred by segment during the three months ended March 31, (in thousands):



	Three Months Ended March 31,
	2015			2014
Residential Products	$	(6,580	)	$	327
Industrial and Infrastructure Products	—			102
Net asset impairment and exit activity (gains) charges	$	(6,580	)	$	429

The following table provides a summary of where the asset impairments and exit activity (gains) costs were recorded in the statement of operations for the three months ended March 31, (in thousands):



	Three Months Ended March 31,
	2015			2014
Cost of sales	$	188		$	325
Selling, general, and administrative expense	(6,768		)	104
Net asset impairment and exit activity (gains) charges	$	(6,580	)	$	429

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



	2015			2014
Balance at January 1	$	575		$	1,092
Exit activity costs recognized	111			346
Cash payments	(323		)	(536		)
Balance at March 31	$	363		$	902

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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