Business Reorganization

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Business Reorganizations

In July 2022, the Company authorized restructuring actions (“2022 Actions”) focused on the consolidation of two manufacturing sites and a number of branch offices and changes in infrastructure to eliminate certain roles across a number of locations in the Industrial segment businesses. Resulting pre-tax charges of $17,986 were recorded in the second half of 2022. Of the aggregate, $11,880 related to employee termination costs, primarily employee severance and other termination benefits, which are expected to be paid in cash by the end of 2023 and which were recorded within Selling and administrative expenses. The remaining $6,106 primarily related to $3,186 of accelerated depreciation of assets and $1,417 of pension curtailment losses and special termination benefits which were recorded in Cost of sales and Other expense (income), net, respectively. During the second quarter of 2023, additional pre-tax charges of $1,974, including $796 of accelerated depreciation of assets and $2,108, primarily related to transfer of work charges, were recorded within Cost of sales, $214 of special employee termination benefits, were recorded within Selling and administrative expenses, and $1,144 of pension settlement and curtailment gains were included within Other income (expense), net, in the accompanying Condensed Consolidated Statements of Income (Loss). During the first half of 2023, additional pre-tax charges of $5,964, including $2,389 of accelerated depreciation of assets and $3,961, primarily related to transfer of work charges, were recorded within Cost of sales, $758 of special employee termination benefits, were recorded within Selling and administrative expenses, and $1,144 of pension curtailment and settlement gains recorded were included within Other income (expense), net, in the accompanying Condensed Consolidated Statements of Income (Loss). A corresponding liability of $6,302, per below, related to the employee termination costs remained and was included within accrued liabilities as of June 30, 2023. The Company expects to incur additional costs of approximately $2,000 in 2023 related to the 2022 Actions, including approximately $1,000 of additional accelerated depreciation and $1,000 of transfer of work charges. Of this $2,000, approximately $1,000 is payable in cash. The 2022 Actions are expected to be predominately completed in 2023.

The following table sets forth the change in the liability for the employee termination benefits related to the 2022 Actions:


December 31, 2022	$	10,900
Employee severance and other termination benefits	(184)
Payments	(4,414)
June 30, 2023	$	6,302

In April 2023, the Company authorized additional restructuring actions (“2023 Actions”) focused on manufacturing footprint optimization, including the consolidation of manufacturing sites and optimization of production. The 2023 Actions include the geographic transfer of certain programs within both the Industrial and Aerospace segments and changes in infrastructure to drive improvements and efficiencies in business processes, including the elimination of certain roles across several locations. Resulting pre-tax charges of $9,519 were recorded in the second quarter of 2023. Of the aggregate, $9,163 related to employee

termination costs, primarily employee severance and other termination benefits, which are expected to be paid in cash by the end of 2025 and which were recorded within Selling and administrative Expenses. The remaining $356 primarily related to accelerated rent expenses and consulting fees, which were recorded within Selling and administrative expenses, in the accompanying Condensed Consolidated Statements of Income (Loss). Of the aggregate charges recorded, $9,294 was reflected within the results of the Industrial segment and $225 was reflected within the results of the Aerospace segment. A corresponding liability of $9,024, per below, related to the employee termination costs remained and was included within accrued liabilities as of June 30, 2023. The Company expects to incur additional costs of approximately $7,000 in 2023 related to the 2023 Actions, including approximately $4,000 of additional severance and other termination benefits related to the Aerospace segment and $3,000 of additional transfer of work charges and other restructuring costs related to the Industrial segment, all of which is payable in cash. The Company also expects to incur additional costs beyond 2023 of approximately $12,000 related to the 2023 Actions, which are primarily related to transfer of work charges. Of the aggregate, approximately $8,000 and $4,000 relate to the Aerospace and Industrial segments, respectively. The 2023 Actions are expected to be completed throughout multiple periods, with completion in 2025.

The following table sets forth the change in the liability for the employee termination benefits related to the 2023 Actions:


December 31, 2022	$	—
Employee severance and other termination benefits	9,163
Payments	(139)
June 30, 2023	$	9,024