RATIONALIZATION AND ASSET IMPAIRMENTS

6 Months Ended

Jun. 30, 2012

RATIONALIZATION AND ASSET IMPAIRMENTS

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded rationalization charges of $1,258 for the six months ended June 30, 2012 resulting from rationalization plans initiated in 2012.  A description of each plan and the related costs follows:

Australia Plan:

During June 2012, the Company initiated a plan to rationalize its Australian manufacturing operations.  This action is expected to impact 50 employees within the Asia Pacific Welding segment.  During the six months ending June 30, 2012, the Company recorded charges of $589 related to these activities.  Charges represent employee severance and other related costs.  At June 30, 2012, a liability relating to these actions of $594 was recognized in Other current liabilities, which will be substantially paid over the next 12 months.  The Company expects additional charges in the range of $800 to $1,750 to be recorded related to the completion of these activities.

Oceanside-Reno Plan:

During May 2012, the Company initiated a plan to consolidate its Oceanside, California operations and its Reno, Nevada operations to another facility in Reno, Nevada.  This action is expected to impact 22 employees within the North America Welding segment.  During the six months ending June 30, 2012, the Company recorded charges of $77 related to these activities.  Charges represent employee severance and other related costs.  At June 30, 2012, a liability relating to these actions of $77 was recognized in Other current liabilities, which will be substantially paid over the next 12 months.  The Company expects additional charges in the range of $1,000 to $1,400 to be recorded related to the completion of these activities.

Russia Plan:

During April 2012, the Company initiated a plan to rationalize and consolidate manufacturing facilities in Russia.  This action is expected to impact 225 employees within the Europe Welding segment.  During the six months ending June 30, 2012, the Company recorded charges of $592 related to these activities.  Charges represent employee severance and other related costs.  At June 30, 2012, a liability relating to these actions of $508 was recognized in Other current liabilities, which will be substantially paid over the next 12 months.  The Company expects additional charges in the range of $1,000 to $2,500 to be recorded related to the completion of these activities.

2009 Plans:

During 2009, the Company initiated rationalization actions including the consolidation of certain manufacturing operations in the Europe Welding, Asia Pacific Welding and The Harris Products Group segments.  At June 30, 2012, a liability relating to these actions of $170 was recognized in Other current liabilities.  The Company does not expect any further costs associated with these actions in 2012 as they were substantially completed in 2010 and are expected to be substantially paid by the end of 2012.

The Company continues to evaluate its cost structure, which may result in additional rationalization actions and charges in future periods.  The following table summarizes the activity related to the rationalization liabilities by segment:

	North America Welding		Europe Welding			Asia Pacific Welding		The Harris Products Group			Consolidated
Balance at December 31, 2011	$	—	$	173		$	—	$	82		$	255
Payments and other adjustments	—		(87		)	5		(82		)	(164		)
Charged to expense	77		592			589		—			1,258
Balance at June 30, 2012	$	77	$	678		$	594	$	—		$	1,349