RATIONALIZATION AND ASSET IMPAIRMENTS

12 Months Ended

Dec. 31, 2021

RATIONALIZATION AND ASSET IMPAIRMENTS

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 7 – RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded rationalization and asset impairment net charges of $9,827, $45,468 and $15,188 for the years ended December 31, 2021, 2020 and 2019, respectively. The charges are primarily related to employee severance, asset impairments and gains or losses on the disposal of assets. A description of each restructuring plan and the related costs follows:

During 2020 and 2021, the Company initiated rationalization plans within the Americas Welding and International Welding segments. The plans include headcount restructuring and the consolidation of manufacturing facilities to better align the cost structure with economic conditions and operating needs. At December 31, 2021, liabilities of $2,990 for

International Welding were recognized in Other current liabilities in the Company's Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.

During 2019, the Company initiated rationalization plans within International Welding. The plans include headcount restructuring and the consolidation of manufacturing operations to better align the cost structures with economic conditions and operating needs. Liabilities related to these plans were substantially paid at December 31, 2020.

The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues to evaluate its cost structure and additional rationalization actions may result in charges in future periods.

The following table summarizes the activity related to the rationalization liabilities:

			International
	Americas Welding		Welding		Consolidated
Balance at December 31, 2019	$	—	$	8,202	$	8,202
Payments and other adjustments		(4,712)		(13,501)		(18,213)
Charged to expense		4,737		18,896		23,633
Balance at December 31, 2020	$	25	$	13,597	$	13,622
Payments and other adjustments		(25)		(21,488)		(21,513)
Charged to expense		—		10,881		10,881
Balance at December 31, 2021	$	—	$	2,990	$	2,990