Exit Activity Costs And Asset Impairments

3 Months Ended

Mar. 31, 2014

Exit Activity Costs And Asset Impairments [Abstract]

Exit Activity Costs And Asset Impairments

11. EXIT ACTIVITY COSTS AND ASSET IMPAIRMENTS

The Company focuses on being the low-cost provider of its products by reducing operating costs and implementing lean manufacturing initiatives, which have in part led to the consolidation of facilities and product lines. During 2013, the Company consolidated two facilities in this effort, and also identified two other facilities to close or consolidate. During this process in 2014, the Company incurred $83,000 of asset impairment charges along with exit activity costs, including contract termination costs, severance costs, and other moving and closing costs, and expects to incur approximately $700,000 of additional costs related to these efforts. If future opportunities for cost savings are identified, other facility consolidations and closings will be considered.

The following table provides a summary of exit activity costs and asset impairments incurred by segment during the three months ended March 31 (in thousands):

		2014		2013
Residential Products	$	327	$	29
Industrial and Infrastructure Products		102		–
Corporate		–		–
Total exit activity costs and asset impairments	$	429	$	29

The following table provides a summary of where the exit activity costs and asset impairments were recorded in the statement of operations for the three months ended March 31 (in thousands):

		2014		2013
Cost of sales	$	325	$	29
Selling, general, and administrative expense		104		–
Total exit activity costs and asset impairments	$	429	$	29

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

		2014			2013
Balance as of January 1	$	1,092		$	1,323
Exit activity costs recognized		346			29
Cash payments		(536	)		(315	)
Balance as of March 31	$	902		$	1,037