Exit Activity Costs and Asset Impairments

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Exit Activity Costs and Asset Impairments

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 2020 related to moving and closing costs, severance and contract terminations incurred as a result of process simplification initiatives. In conjunction with these initiatives, in 2020, the Company closed two facilities and, separately, sold a facility closed in 2017. The Company closed and

consolidated one facility during 2019. In 2018, the Company sold and leased back a facility which resulted in a gain, and closed four other facilities. These closures resulted in asset impairment charges and exit activity costs.

The following table sets forth the asset impairment charges and exit activity costs incurred by segment during the years ended December 31 related to the restructuring activities described above (in thousands):

	2020						2019						2018
	Inventory write-downs &/or asset impairment charges		Exit activity costs		Total		Inventory write-downs &/or asset impairment (recoveries) charges, net		Exit activity costs		Total		Inventory write-downs &/or asset impairment charges		Exit activity (recoveries) costs, net		Total
Renewable Energy & Conservation	$	72	$	875	$	947	$	(9)	$	66	$	57	$	105	$	(33)	$	72
Residential Products	9		731		740		417		3,440		3,857		1,586		1,321		2,907
Infrastructure Products	—		226		226		—		—		—		227		1,075		1,302
Corporate	—		375		375		—		1,660		1,660		—		438		438
Total exit activity costs & asset impairments	$	81	$	2,207	$	2,288	$	408	$	5,166	$	5,574	$	1,918	$	2,801	$	4,719

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):

	2020		2019		2018
Cost of sales	$	1,059	$	767	$	1,320
Selling, general, and administrative expense	1,229		4,807		3,399
Total exit activity costs and asset impairments	$	2,288	$	5,574	$	4,719

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 as of January 1	$	2,083	$	1,865
Exit activity costs recognized	2,207		5,166
Cash payments	(3,260)		(3,799)
Non-cash charges	—		(1,149)
Balance as of December 31	$	1,030	$	2,083

On June 30, 2020, the Company sold its self-guided apartment tour application business to a third party from its Residential Products segment. The $2.0 million net proceeds from the sale resulted in pre-tax net gain of $1.9 million and has been presented within other (income) expense in the consolidated statements of income. This divestiture does not meet the criteria to be reported as a discontinued operation nor will it have a major effect on the Company's operations.