RATIONALIZATION AND ASSET IMPAIRMENTS

9 Months Ended

Sep. 30, 2024

RATIONALIZATION AND ASSET IMPAIRMENTS

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS

During 2024, the Company initiated rationalization plans within International Welding, Americas Welding and The Harris Products Group. During 2023, the Company also initiated rationalization plans within International Welding. The plans in both years impacted headcount and included the consolidation of manufacturing facilities to better align with the cost structure, economic conditions and operating needs. As a result of these plans, in the nine months ended September 30, 2024, the Company recorded Rationalization and asset impairment net charges of $32,030 in International Welding, of which $22,566 is associated with the disposal of the Company’s Russian entity. The Company also incurred Rationalization and asset impairment net charges of $16,521 in Americas Welding and $2,666 in The Harris Products Group in the same period. In the comparable 2023 period, the Company recorded Rationalization and asset impairment net charges of $10,210 in International Welding and $408 in Americas Welding.

At September 30, 2024 and December 31, 2023, liabilities of $19,046 and $15,086, respectively, were recognized in Other current liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company anticipates approximately $6,000 of additional charges in the fourth quarter of 2024 related to the completion of these plans.

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 rationalization liabilities for the nine months ended September 30, 2024:

	Americas		International		The Harris Products
	Welding		Welding		Group		Consolidated
Balance at December 31, 2023	$	—	$	15,086	$	—	$	15,086
Payments and other adjustments		(3,488)		(16,994)		(961)		(21,443)
Charged to expense		15,288		8,383		1,732		25,403
Balance at September 30, 2024	$	11,800	$	6,475	$	771	$	19,046