RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded net rationalization charges of $819 for the six months ended June 30, 2014. The net charges include $729 primarily related to employee severance and $125 in asset impairments, offset by gains of $35 related to the sale and disposal of assets. A description of each restructuring plan and the related costs follows:

North America Welding Plans:

During 2012, the Company initiated various rationalization plans within the North America Welding segment. Plans for the segment include consolidating its Oceanside, California operations and its Reno, Nevada operations to another facility in Reno, Nevada and consolidating its Baltimore, Maryland manufacturing operations into its current manufacturing operations in Cleveland, Ohio. During the six months ended June 30, 2014, the Company recorded gains of $68 related to these actions. At June 30, 2014, a liability relating to these actions of $53 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial.

Europe Welding Plans:

During 2014, the Company initiated a rationalization plan within the Europe Welding segment. The plan includes headcount restructuring to better align the cost structure with current economic conditions and operating needs. During the six months ended June 30, 2014, the Company recorded charges of $849, which represent employee severance costs. At June 30, 2014, a liability relating to these actions of $749 was recognized in Other current liabilities. The Company expects additional charges up to $270 to be recorded related to the completion of these activities.

During 2013, the Company initiated a rationalization plan within the Europe Welding segment to consolidate certain consumable manufacturing operations. During the six months ended June 30, 2014, the Company recorded net charges of $253, which primarily represents employee severance and other related costs. At June 30, 2014, a liability relating to these actions of $88 was recognized in Other current liabilities. Additional charges related to the completion of this plan are expected to be immaterial.

During 2012, the Company initiated various rationalization plans within the Europe Welding segment. Plans for the segment include the consolidation of manufacturing facilities in Russia, relocation of its Italian machine manufacturing operations to current facilities in Poland and headcount restructuring at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. During the six months ended June 30, 2014, the Company recorded net gains of $98 related to these activities. At June 30, 2014, a liability relating to these actions of $144 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial.

Asia Pacific Welding Plans:

During 2012, the Company initiated various rationalization plans within the Asia Pacific Welding segment. Plans for the segment include the rationalization of its Australian manufacturing operations and headcount restructuring at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. During the six months ended June 30, 2014, the Company recorded net gains of $101, which primarily represent a net reversal of $214 of previously accrued costs and $125 in asset impairment charges. At June 30, 2014, a liability relating to these actions of $35 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial.

The Company continues evaluating its cost structure and additional rationalization actions may result in charges in future periods.

The following tables summarize the activity related to the rationalization liabilities by segment for the six months ended June 30, 2014:



	North America Welding			Europe Welding			Asia Pacific Welding			Consolidated
Balance, December 31, 2013	$	466		$	2,435		$	375		$	3,276
Payments and other adjustments	(345		)	(2,465		)	(126		)	(2,936		)
Charged (credited) to expense	(68		)	1,011			(214		)	729
Balance, June 30, 2014	$	53		$	981		$	35		$	1,069