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 six months ended June 30, 2018 which related to contract terminations, severance, and other moving and closing costs. The Company closed 1 facility during the first half of 2018 as a result of these initiatives. 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 six months ended June 30, 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 half of 2017.

The following tables set forth the asset impairment charges and exit activity costs incurred by segment during the three and six months ended June 30, related to the restructuring activities described above (in thousands):



	Three months ended June 30,
	2018								2017
	Inventory write-downs &/or asset impairment charges		Exit activity (recoveries) costs, net			Total			Inventory write-downs &/or asset impairment recoveries			Exit activity costs		Total
Residential Products	$	—	$	(29	)	$	(29	)	$	(126	)	$	207	$	81
Industrial & Infrastructure Products	—		(28		)	(28		)	(1,694		)	315		(1,379		)
Renewable Energy & Conservation	65		(68		)	(3		)	—			1,369		1,369
Corporate	—		223			223			—			135		135
Total exit activity costs & asset impairments	$	65	$	98		$	163		$	(1,820	)	$	2,026	$	206



	Six months ended June 30,
	2018									2017
	Inventory write-downs &/or asset impairment (recoveries) charges, net			Exit activity (recoveries) costs, net			Total			Inventory write-downs &/or asset impairment recoveries			Exit activity costs		Total
Residential Products	$	(43	)	$	(152	)	$	(195	)	$	(147	)	$	392	$	245
Industrial & Infrastructure Products	(703		)	190			(513		)	(2,590		)	2,971		381
Renewable Energy & Conservation	84			49			133			—			2,419		2,419
Corporate	—			267			267			—			163		163
Total exit activity costs & asset impairments	$	(662	)	$	354		$	(308	)	$	(2,737	)	$	5,945	$	3,208

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 and six months ended June 30, (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Cost of sales	$	(193	)	$	(1,472	)	$	(156	)	$	(478	)
Selling, general, and administrative expense (recoveries)	356			1,678			(152		)	3,686
Net asset impairment and exit activity charges (recoveries)	$	163		$	206		$	(308	)	$	3,208

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	354			5,945
Cash payments	(1,256		)	(8,288		)
Balance at June 30	$	59		$	1,401