Exit Activity Costs and Asset Impairments

3 Months Ended

Mar. 31, 2022

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, the sale and exiting of less profitable businesses or product lines, and a reduction in our manufacturing footprint.

Exit activity costs (recoveries) were incurred during the three months ended March 31, 2022 and 2021 which related to moving and closing costs, severance, and contract terminations, along with asset impairment charges related to the write-down of inventory and impairment of machinery and equipment associated with discontinued product lines, as a result of process simplification initiatives. In conjunction with these initiatives, the Company closed one facility during the three months ended March 31, 2022. During the three months ended March 31, 2021, the Company closed two facilities as a result of these initiatives.

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

	Three months ended March 31,
	2022						2021
	Exit activity costs (recoveries), net		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	1,328	$	1,198	$	2,526	$	3,778	$	1,193	$	4,971
Residential	3		—		3		65		—		65
Agtech	(9)		—		(9)		204		—		204
Infrastructure	(63)		—		(63)		—		—		—
Corporate	20		—		20		—		—		—
Total exit activity costs & asset impairments	$	1,279	$	1,198	$	2,477	$	4,047	$	1,193	$	5,240

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

	Three Months Ended March 31,
	2022		2021
Cost of sales	$	2,208	$	5,047
Selling, general, and administrative expense	269		193
Total exit activity and asset impairment charges	$	2,477	$	5,240

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

	2022		2021
Balance at January 1	$	272	$	1,030
Exit activity costs recognized	1,279		4,047
Cash payments	(116)		(1,464)
Balance at March 31	$	1,435	$	3,613