Restructuring and Impairment Charges

12 Months Ended

Dec. 31, 2022

Restructuring and Related Activities [Abstract]

Note 8 – Restructuring and Impairment Charges

In September 2020, the Company announced its plan to permanently close its Shoals Facility in light of the ongoing cyclical industry downturn, which had been magnified by the COVID-19 pandemic. In October 2020, the Company reached an agreement with the Shoals Facility owner and landlord to shorten the Shoals lease term by amending the expiration date to the end of February 2021. In addition, the landlord agreed to waive the base rent payable under the original lease for the months of October 2020 through February 2021. Property, plant and equipment with an estimated fair value of $10,148 was sold or transferred to the Shoals landlord during 2021 as consideration for the landlord’s entry into the lease amendment and the aforementioned rent waiver. Restructuring and impairment charges (benefits) related to the plant closure for 2021 were primarily due to relocating some of the facility’s equipment to Castaños.

Restructuring and impairment charges are reported as a separate line item on the Company’s consolidated statements of operations for the years ended December 31, 2022 and 2021, and are detailed below:


	Year Ended
	December 31,
	2022		2021
Impairment and loss on disposal of machinery and equipment	$	-	$	1,591
Employee severance and retention		-		(5	)
Other charges related to facility closure		-		4,944
Total restructuring and impairment costs	$	-	$	6,530

Accrued restructuring and impairment charges primarily related to the Manufacturing segment and are detailed below:


	Accrued as of December 31, 2021		Cash Charges		Non-cash charges		Cash payments			Accrued as of December 31, 2022

Impairment and loss on disposal of machinery and equipment	$	-	$	-	$	-	$	-		$	-
Employee severance and retention		163		-		-		(163	)		-
Other charges related to facility closure		-		-		-		-			-
Total restructuring and impairment costs	$	163	$	-	$	-	$	(163	)	$	-


	Accrued as of December 31, 2020		Cash Charges		Non-cash charges			Cash payments			Accrued as of December 31, 2021

Impairment and loss on disposal of machinery and equipment	$	-	$	-	$	269		$	-		$	-
Employee severance and retention		1,596		-		(80	)		(1,353	)		163
Other charges related to facility closure		251		6,437		(96	)		(6,688	)		-
Total restructuring and impairment costs	$	1,847	$	6,437	$	93		$	(8,041	)	$	163