Exit Activity Costs and Asset Impairments

9 Months Ended

Sep. 30, 2021

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 our manufacturing footprint.

Exit activity costs were incurred during the nine months ended September 30, 2021 and 2020 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 closed two facilities during the nine months ended September 30, 2021. During the nine months ended September 30, 2020, the Company closed one facility and, separately, sold a facility closed in 2017, as a result of these initiatives.

The following tables set forth the exit activity costs 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,
	2021						2020
	Exit activity costs		Asset impairment charges		Total		Exit activity (recoveries) costs, net		Asset impairment charges		Total
Renewables	$	131	$	—	$	131	$	(3)	$	—	$	(3)
Residential	83		—		83		165		21		186
Agtech	293		—		293		175		—		175
Infrastructure	—		—		—		—		—		—
Corporate	37		—		37		17		—		17
Total exit activity costs & asset impairments	$	544	$	—	$	544	$	354	$	21	$	375


	Nine months ended September 30,
	2021						2020
	Exit activity costs		Asset impairment charges		Total		Exit activity costs		Asset impairment charges		Total
Renewables	$	4,695	$	1,193	$	5,888	$	15	$	—	$	15
Residential	177		—		177		649		21		670
Agtech	1,784		—		1,784		491		72		563
Infrastructure	—		—		—		—		—		—
Corporate	96		—		96		116		—		116
Total exit activity costs & asset impairments	$	6,752	$	1,193	$	7,945	$	1,271	$	93	$	1,364

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,
	2021		2020		2021		2020
Cost of sales	$	194	$	222	$	5,959	$	763
Selling, general, and administrative expense	350		153		1,986		601
Total exit activity and asset impairment charges	$	544	$	375	$	7,945	$	1,364

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


	2021		2020
Balance at January 1	$	1,030	$	2,083
Exit activity costs recognized	6,752		1,271
Cash payments	(5,970)		(2,708)
Balance at September 30	$	1,812	$	646