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, and in the sale and exiting of less profitable businesses or products lines.

Exit activity costs were incurred during 2018 which related to contract terminations, severance, and other moving and closing costs. During this time, the Company also incurred asset impairment charges related to the write-down of inventory, impairment of machinery and equipment and intangible assets associated with either discontinued product lines or reduced sales of lower margin products. In conjunction with these initiatives, the Company also sold and leased back a facility which resulted in a gain, as well as closed and consolidated four other facilities in 2018.

The Company closed and consolidated three facilities during 2017 and seven facilities during 2016 as a result of these initiatives, which resulted in asset impairment charges and exit activity costs in both years.

The following table sets forth the asset impairment charges and exit activity costs incurred by segment during the years ended December 31 related to the restructuring activities described above (in thousands):



	2018								2017							2016
	Inventory write-downs &/or asset impairment charges (recoveries), net			Exit activity costs (recoveries), net			Total		Inventory write-downs &/or asset impairment charges (recoveries), net			Exit activity costs		Total		Inventory write-downs &/or asset impairment charges		Exit activity costs		Total
Residential Products	$	1,586		$	1,321		$	2,907	$	345		$	1,058	$	1,403	$	1,459	$	1,074	$	2,533
Industrial & Infrastructure Products	(347		)	1,749			1,402		(2,484		)	2,820		336		4,221		4,546		8,767
Renewable Energy & Conservation	105			(33		)	72		509			2,986		3,495		1,850		539		2,389
Corporate	—			438			438		—			261		261		—		58		58
Total exit activity costs & asset impairments	$	1,344		$	3,475		$	4,819	$	(1,630	)	$	7,125	$	5,495	$	7,530	$	6,217	$	13,747

The following table provides a summary of where the above exit activity costs and asset impairments are recorded in the consolidated statements of operations for the years ended December 31 (in thousands):



	2018		2017		2016
Cost of sales	$	1,906	$	911	$	9,922
Selling, general, and administrative expense	2,913		4,584		3,825
Total exit activity costs and asset impairments	$	4,819	$	5,495	$	13,747

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



	2018			2017
Balance as of January 1	$	961		$	3,744
Exit activity costs recognized	3,475			7,125
Cash payments	(2,513		)	(9,908		)
Balance as of December 31	$	1,923		$	961

During the three years ended December 31, 2018, none of the Company's exit activities met the criteria to be reported as discontinued operations, as these actions do not represent a strategic shift that has or will have a major effect on the Company’s operations. Therefore, prior period results of continuing operations have not been restated to exclude the impact of any divested business’s financial results.