RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded rationalization net charges of $30,053, $8,463 and $9,354 for the years ended December 31, 2014, 2013 and 2012, respectively. The 2014 net charges include $1,241 primarily related to employee severance and $32,742 in asset impairment charges, partially offset by gains of $3,930 related to the sale 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 year ended December 31, 2014, the Company recorded credits of $68, which represent employee severance and other related costs. The Company does not expect further costs associated with these actions as they were substantially completed and paid during 2014.

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. These actions impacted 16 employees within the Europe Welding segment. During the year ended December 31, 2014, the Company recorded charges of $701 which represent employee severance costs.

During 2013, the Company initiated a rationalization plan within the Europe Welding segment to consolidate certain consumable manufacturing operations. During the year ended December 31, 2014, the Company recorded net charges of $347 which primarily represent employee severance costs.

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 year ended December 31, 2014, the Company recorded net credits of $144 related to these activities.

At December 31, 2014, liabilities relating to the Europe Welding plans were immaterial. Additional charges related to the completion of these plans are expected to be immaterial.

Asia Pacific Welding Plans:

During 2014, the Company identified assets within the segment for planned divestiture. In anticipation of the divestiture, the Company reviewed the carrying values and future cash flows of certain long-lived assets and indefinite-lived intangible assets for potential impairment. The Company determined that for certain assets, including the planned divestiture, the carrying values of the assets exceeded the fair values resulting in non-cash impairment charges of $32,617 recorded in Rationalization and asset impairment charges. This result was considered a possible indication of goodwill impairment. As such, the Company performed a goodwill impairment test for the Asia Pacific reporting unit ahead of the annual impairment tests, which resulted in no impairment to the carrying value of goodwill. As of December 31, 2014, the assets identified for divestiture were classified as held for sale. As of December 31, 2014, $30,437 and $11,345 of assets and liabilities held for sale were recorded in Other current assets and Other current liabilities, respectively.

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 year ended December 31, 2014, the Company recorded net gains of $3,982, which primarily represent a gain of $3,911 on the sale of real estate, a net reversal of $184 of previously accrued costs and $125 in asset impairment charges. Additional charges related to the completion of this plan are expected to be immaterial.

South America Welding Plans:

During 2014, the Company initiated a rationalization plan within the South America Welding segment to restructure headcount to better align the cost structure with current economic conditions and operating needs. These actions impacted 15 employees within the South America Welding segment. During the year ended December 31, 2014, the Company recorded net charges of $582, which primarily represents employee severance and other related costs. The Company does not expect further costs associated with these actions as they were substantially completed and paid during 2014.

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 year ended December 31, 2014:



	North America Welding			Europe Welding			Asia Pacific Welding			South America Welding			Consolidated
Balance at December 31, 2012	$	—		$	2,013		$	1,044		$	—		$	3,057
Payments and other adjustments	(586		)	(1,343		)	(1,510		)	—			(3,439		)
Charged (credited) to expense	1,052			1,765			841			—			3,658
Balance at December 31, 2013	$	466		$	2,435		$	375		$	—		$	3,276
Payments and other adjustments	(398		)	(3,041		)	(191		)	(582		)	(4,212		)
Charged (credited) to expense	(68		)	911			(184		)	582			1,241
Balance at December 31, 2014	$	—		$	305		$	—		$	—		$	305