Exit Activity Costs and Asset Impairments

3 Months Ended

Mar. 31, 2023

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

Exit activity costs (recoveries) were incurred during the three months ended March 31, 2023 and 2022 which related to moving and closing costs, and severance, along with asset impairment charges (recoveries) related to the write-down of inventory associated with discontinued product lines, as a result of process simplification initiatives. In conjunction with these initiatives, the Company recorded costs during the three months ended March 31, 2023 associated with the final closure and sale of a facility closed during the fourth quarter of 2022. During the three months ended March 31, 2022, the Company closed one facility as a result of these initiatives.

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



	2023						2022
	Exit activity costs		Asset impairment recovery		Total		Exit activity costs (recoveries), net		Asset impairment charges		Total
Renewables	$	—	$	(63)	$	(63)	$	1,328	$	1,198	$	2,526
Residential	114		—		114		3		—		3
Agtech	561		—		561		(9)		—		(9)
Infrastructure	—		—		—		(63)		—		(63)
Corporate	—		—		—		20		—		20
Total	$	675	$	(63)	$	612	$	1,279	$	1,198	$	2,477

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):



	2023		2022
Cost of sales	$	513	$	2,208
Selling, general, and administrative expense	99		269
Total exit activity and asset impairment charges	$	612	$	2,477

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


	2023		2022
Balance at January 1	$	2,417	$	272
Exit activity costs recognized	675		1,279
Cash payments	(1,321)		(116)
Balance at March 31	$	1,771	$	1,435