Exit Activity Costs and Asset Impairments

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

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, the simplification of processes, in the sale and exiting of less profitable businesses or products lines, and the reduction in our manufacturing footprint.

Exit activity costs were incurred during the three months ended March 31, 2020 and 2019 which related to moving and closing costs, contract terminations, and severance incurred as a result of process simplification initiatives. No facilities were closed as a result of these initiatives during these respective periods.

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



	Three months ended March 31,
	2020			2019
Renewable Energy and Conservation	$	18		$	94
Residential Products	221			151
Industrial and Infrastructure Products	(2		)	(33		)
Corporate	54			7
Total exit activity costs	$	291		$	219

The following table provides a summary of where the exit activity costs (recoveries) were recorded in the consolidated statements of income for the three months ended March 31, (in thousands):



	Three Months Ended March 31,
	2020		2019
Cost of sales	$	87	$	(34	)
Selling, general, and administrative expense	204		253
Net exit activity charges	$	291	$	219

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



	2020			2019
Balance at January 1	$	5,449		$	1,923
Exit activity costs recognized	291			219
Cash payments	(4,728		)	(550		)
Balance at March 31	$	1,012		$	1,592