NOTE 22 — RESTRUCTURING

During the first quarter of 2018, the Company conducted a review of its business strategies and product plans given the outlook of the industries it serves and its business environment. As a result, the Company began to execute a restructuring plan to rationalize its facility capacity and management structure, and to consolidate and increase the efficiencies of its Abilene operations. The Company exited the CNG and Fabrication Manufacturing location in Abilene, TX in 2018 as soon as it fully complied with the requirements established as part of the NMTC Transaction agreement and consolidate these manufacturing activities into other locations. All remaining costs associated with this facility have been recorded as restructuring expenses. All costs will be incurred solely within the Process Systems segment.

The Company expects that any additional costs related to the 2018 restructuring initiative will be immaterial. The Company anticipates annual cost savings going forward of approximately $575 in facility expenses related to the restructuring.

The Company’s total net restructuring charges for the year ended December 31, 2018 consist of the following:


	Year Ended
	December 31, 2018
Cost of sales:
Facility costs	$	249
Moving and remediation		33
Salary and severance		17
Depreciation		332
Total cost of sales		631
Selling, general, and administrative expenses:
Salary and severance		37
Total selling, general, and administrative expenses		37
Grand Total	$	668