Business Reorganizations

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

In 2021, the Company authorized restructuring actions ("2021 Actions") at a number of locations. The 2021 Actions included a transfer of manufacturing capabilities to leverage existing capacity which is expected to reduce labor and infrastructure costs. The 2021 Actions resulted in pre-tax charges of $2,869, primarily related to employee severance and termination benefits, in 2021 and net benefits of $465 and $269 in 2022 and 2023, respectively, have been recorded within Selling and Administrative Expenses in the accompanying Consolidated Statements of Income. The Company does not expect to incur any additional costs related to the 2021 Actions.

In July 2022, Company management commenced a systematic multi-phased initiative to significantly reduce costs and integrate the Company's operations, decreasing complexity and focusing on improved performance across Industrial. More specifically, at this time, the Company announced a restructuring program to further reduce costs within the Industrial segment and, more broadly, transform our businesses in response to macroeconomic disruptions. Additional actions were subsequently announced in October 2022, April 2023 (including Aerospace) and September 2023 (including Aerospace). Management continues to adjust its cost structures to align with market conditions.

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 in July and October 2022. Resulting pre-tax charges of $17,986 were recorded in 2022. Of the aggregate, $11,880 related to employee termination costs, primarily employee severance and other termination benefits, which were substantially paid in cash by the end of 2023 and which are recorded within Selling and Administrative Expenses in the accompanying Consolidated Statements of Income. The remaining $6,106 included $3,186 of accelerated depreciation of assets and $1,417 of pension curtailment losses and special termination benefits which are recorded in Cost of sales and Other expense (income), net, respectively, in the accompanying Consolidated Statements of Income.

During 2023, additional pre-tax charges of $10,328, including $3,802 of accelerated depreciation of assets, $7,291 primarily related to site consolidation and transfer of work charges, were recorded within Cost of sales, $1,229 primarily related to employee and other termination benefits and $850 gain on sale of property, plant and equipment, 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 Consolidated Statements of Income.

A corresponding liability of $538, per below, related to the employee termination costs remained and was included within accrued liabilities as of December 31, 2023. The Company does not expect any additional costs related to the 2022 actions to be significant.

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


January 1, 2022	$	—
Employee severance and other termination benefits	11,880
Payments	(980)
December 31, 2022	$	10,900
Employee severance and other termination benefits	(357)
Payments	(10,005)
December 31, 2023	$	538

In April 2023, the Company authorized restructuring actions (“April 2023 Actions”) focused on manufacturing footprint optimization, including the consolidation of manufacturing sites and optimization of production. These 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 $13,783 were recorded in 2023. Of the aggregate, $10,791 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 $657 primarily related to accelerated rent expenses and consulting fees, which were recorded within Selling and administrative Expenses, in the accompanying Consolidated Statements of Income. The remaining $2,336 primarily related to site consolidation and transfer of work charges, were recorded within Cost of sales, in the accompanying Consolidated Statements of Income. Of the aggregate charges recorded, $13,088 was reflected within the results of the Industrial segment and $695 was reflected within the results of the Aerospace segment.

A corresponding liability of $6,247, per below, related to the employee termination costs remained and was included within accrued liabilities as of December 31, 2023. The Company expects to incur additional costs beyond 2023 of approximately $13,000 related to the April 2023 Actions, which are primarily related to transfer of work charges. Of the aggregate, approximately $10,000 and $3,000 relate to the Aerospace and Industrial segments, respectively. The April 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 April 2023 Actions:


January 1, 2023	$	—
Employee severance and other termination benefits	10,492
Payments	(4,245)
December 31, 2023	$	6,247

In September 2023, the Company authorized restructuring actions (“September 2023 Actions”) including organizational realignment within a Barnes Industrial business and within Barnes Aerospace following the MB Aerospace acquisition. Resulting pre-tax charges of $7,878 were recorded in 2023 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 in the accompanying Consolidated Statements of Income. Of the aggregate charges recorded, $5,056 was reflected within the results of the Industrial segment and $2,821 was reflected within the results of the Aerospace segment. A corresponding liability of $2,736, per below, related to the employee termination costs remained and was included within accrued liabilities as of December 31, 2023. The Company does not expect any additional costs related to the September 2023 Actions to be significant.

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


January 1, 2023	$	—
Employee severance and other termination benefits	7,878
Payments	(5,142)
December 31, 2023	$	2,736