Exit Activity Costs and Asset Impairments

9 Months Ended

Sep. 30, 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 nine months ended September 30, 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 exited a facility, relocating to a new one, and separately, closed one other facility during the nine months ended September 30, 2022. During the nine months ended September 30, 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 and nine months ended September 30, related to the restructuring activities described above (in thousands):

	Three months ended September 30,
	2022						2021
	Exit activity (recoveries) costs, net		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	(44)	$	—	$	(44)	$	131	$	—	$	131
Residential	—		12		12		83		—		83
Agtech	15		217		232		293		—		293
Infrastructure	—		—		—		—		—		—
Corporate	11		—		11		37		—		37
Total exit activity (recoveries) costs & asset impairments	$	(18)	$	229	$	211	$	544	$	—	$	544

	Nine months ended September 30,
	2022						2021
	Exit activity costs (recoveries), net		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	1,359	$	1,198	$	2,557	$	4,695	$	1,193	$	5,888
Residential	1,298		12		1,310		177		—		177
Agtech	103		217		320		1,784		—		1,784
Infrastructure	(63)		—		(63)		—		—		—
Corporate	93		—		93		96		—		96
Total exit activity costs & asset impairments	$	2,790	$	1,427	$	4,217	$	6,752	$	1,193	$	7,945

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 and nine months ended September 30, (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of sales	$	(39)	$	194	$	2,249	$	5,959
Selling, general, and administrative expense	250		350		1,968		1,986
Total exit activity and asset impairment charges	$	211	$	544	$	4,217	$	7,945

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	2,790		6,752
Cash payments	(2,782)		(5,970)
Balance at September 30	$	280	$	1,812