EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company has incurred exit activity costs and asset impairment charges as a result of its 80/20 simplification and portfolio management initiatives. These initiatives have resulted in the identification of low-volume, low margin, internally-produced products which have been or will be outsourced or discontinued, and in the sale and exiting of less profitable businesses or products lines.

Exit activity costs were incurred during the three months ended March 31, 2018 which related to contract terminations, severance, and other moving and closing costs. In addition, the Company sold and leased back a facility which resulted in a gain, which was partially offset by inventory impairment charges incurred for discontinued products.

During the three months ended March 31, 2017, the Company incurred asset impairment charges and exit activity costs resulting from the above initiatives. Also, as a result of these initiatives, the Company closed three facilities during the first quarter of 2017.

The following tables set forth the asset impairment charges and exit activity costs incurred by segment during the three months ended March 31, related to the restructuring activities described above (in thousands):



	2018									2017
	Inventory write-downs &/or asset impairment recoveries, net			Exit activity costs, net			Total			Inventory write-downs &/or asset impairment recoveries			Exit activity costs		Total
Residential Products	$	(43	)	$	(123	)	$	(166	)	$	(21	)	$	185	$	164
Industrial & Infrastructure Products	(703		)	218			(485		)	(896		)	2,656		1,760
Renewable Energy & Conservation	19			117			136			—			1,050		1,050
Corporate	—			44			44			—			28		28
Total exit activity costs & asset impairments	$	(727	)	$	256		$	(471	)	$	(917	)	$	3,919	$	3,002

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



	2018			2017
Cost of sales	$	37		$	994
Selling, general, and administrative (recoveries) expense	(508		)	2,008
Net asset impairment and exit activity (recoveries) charges	$	(471	)	$	3,002

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



	2018			2017
Balance at January 1	$	961		$	3,744
Exit activity costs recognized	256			3,919
Cash payments	(739		)	(4,617		)
Balance at March 31	$	478		$	3,046