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Restructuring and Impairment Charges | 9 Months Ended
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Nov. 30, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Charges | Restructuring and Impairment Charges As described in Note 11, the Company has been executing a plan to divest certain non-core businesses. During the first nine months of fiscal 2021, the Company closed on the sale of its Galvabar business and its Southern Mechanical Services business, and the board of directors approved a plan to divest certain other businesses within the Company. The Company recorded net proceeds of $8.3 million and a loss on the sale of the Galvabar business, which is included in the Metal Coatings segment, of $1.2 million. During the third quarter of fiscal 2021, the Company completed the sale of Southern Mechanical Services, which is included in the Infrastructure Solutions segment, for net proceeds of $4.1 million. The Company recognized impairment charges of $0.9 million for Southern Mechanical Services during the second quarter, and an additional loss on sale of $1.9 million during the third quarter of fiscal 2021. The loss of the sale of these businesses are included in "Restructuring and impairment charges" in the consolidated statements of operations. As of November 30, 2020, one additional business in the Infrastructure Solutions segment and two non-operating locations in the Metal Coatings segment are classified as held for sale. The assets and liabilities of the businesses expected to be disposed of within the next twelve months are included in "Assets held for sale" in the accompanying consolidated balance sheet. In addition, the Company expects to close a small number of Metal Coatings locations that were in underperforming and lower growth geographies. During the nine months ended November 30, 2020, the Company recorded certain charges related to its restructuring activities, which are summarized in the table below:
|  | Nine Months Ended November 30,
` |  | Metal Coatings |  | Infrastructure Solutions |  | Total
Write down on assets held for sale to estimated sales price |  | $ | 2,930 |  |  | $ | 4,100 |  |  | $ | 7,030 |
Write down of assets expected to be abandoned |  | 6,922 |  |  | — |  |  | 6,922 |
Loss on sale of subsidiaries |  | 1,191 |  |  | 1,859 |  |  | 3,050 |
Write down of excess inventory |  | — |  |  | 2,511 |  |  | 2,511 |
Costs associated with assets held for sale |  | — |  |  | 756 |  |  | 756 |
Total charges |  | $ | 11,043 |  |  | $ | 9,226 |  |  | $ | 20,269 |
Assets Held for Sale The strategic decision to divest of these businesses reflects the Company's longer term strategy to become a more focused metal coatings company. The historical annual sales, operating profit and net assets of these businesses were not significant enough to qualify as discontinued operations. Assets and liabilities allocated to the disposal group are as follows:
|  | As of November 30, 2020
Assets |  |
Accounts receivable |  | $ | 1,313 |
Inventories |  | 1,024 |
Contract assets |  | 3,303 |
Other current assets |  | 11 |
Property, plant and equipment |  | 1,768 |
Other assets |  | 60 |
Goodwill |  | 1,693 |
Liabilities |  |
Accounts payable |  | 365 |
Contract liabilities |  | 1,086 |
Other accrued liabilities |  | 1,050 |
Lease liability – long term |  | 3 |
Total carrying value |  | 6,668 |
Less: Impairment of carrying value of remaining assets held for sale to estimated sales price |  | (3,490) |
Fair value of disposal group |  | $ | 3,178 |
Infrastructure Solutions Segment During the first nine months of fiscal 2021, as a result of the continued market pressures in the oil and gas services market, the Company undertook an evaluation of inventory within the tubular products business. As a result of the evaluation, the Company determined certain inventories to be in excess of their net realizable value, and recorded an inventory write down of $2.5 million to record the inventory at its current market value. Metal Coatings Segment During the first nine months of fiscal 2021, the Company approved a plan to close certain locations within the Metal Coatings segment in future periods. Management performed an analysis of the assets at each location expected to be closed. For assets that will not be transferred to another location for use in operations, management wrote the assets down to reflect a decrease in the estimated useful life and lower value to the Company. The Company recognized the following charges to income from operations related to locations expected to be closed:
|  | Nine Months Ended November 30, 2020
Inventory write down |  | $ | 336 |
Property & equipment write downs |  | 2,956 |
Intangible impairment |  | 3,258 |
Other |  | 372 |
Total |  | $ | 6,922 |

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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