COST OPTIMIZATION PROGRAM

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

During the quarter ended September 30, 2023, the Company initiated a Cost Optimization Program to streamline operations and optimize corporate functions. This program is expected to include workforce reduction and closure of underutilized facilities.

The total costs related to the Cost Optimization Program are classified in Selling, general and administrative expenses in the condensed consolidated statements of income. The Company did not allocate these charges to individual segments as they are not considered by the chief operating decision maker during the review of segment results. Accordingly, such expenses are presented in our segment reporting as part of “Other unallocated expenses” (See Note 15 “Segment Information”).

Activity in the Company’s restructuring reserves was as follows:


	Balance at December 31, 2023		Charges		Payments Made		Balance at March 31, 2024
2023 Cost Optimization Program
Employee separation costs	$	6,966	$	7,017	$	(11,326)	$	2,657
Total	$	6,966	$	7,017	$	(11,326)	$	2,657

The Company expects to complete all restructuring actions commenced during the year ended December 31, 2023 by the end of the first half of 2024 and to incur additional charges of approximately $3.0 million related primarily to employee severance. The actual amount and timing of severance and other costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates.