Restructuring

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

On an ongoing basis, the Company evaluates its business and objectives to ensure that it is properly configured and sized based on changing market conditions. Accordingly, the Company has implemented several restructuring initiatives, including the closure or consolidation of facilities throughout the world and the reorganization of its operating structure.

In May 2024, the Board of Directors of the Company approved a restructuring plan that will eliminate up to 400 salaried, contract and open positions based on the Company’s recently announced product line organizational structure and current and anticipated market demands. The restructuring effort aims to further improve and maximize the Company’s operational efficiency by streamlining business practices and deployed resources, and improving the organization’s overall cost structure.

During the three and nine months ended September 30, 2024, the Company recognized total restructuring expenses of $1,516 and $20,430, respectively, $17,200 of which related to the restructuring plan approved in May 2024. The Company anticipates total expense related to the restructuring plan approved in May 2024 of approximately $17,200 to $19,000 to be primarily recognized in 2024. The cash expenditures include severance and other related costs directly attributable to the restructuring activities which will be paid in 2024 and 2025. The Company anticipates these restructuring activities to provide approximately $40,000 to $45,000 in annualized savings upon completion.

The Company’s restructuring charges consist of severance, retention and outplacement services, and severance-related postemployment benefits (collectively, “employee separation costs”), along with other related exit costs and asset impairments related to restructuring activities (collectively, “other exit costs”). Employee separation costs are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy.

As further described in Note 16. “Segment Reporting”, effective January 1, 2024, the Company changed its management reporting structure with the launch of global product line-focused business segments. As a result, the Company established two reportable segments: Sealing Systems and Fluid Handling Systems. Accordingly, prior period restructuring charges have been revised to conform to the Company’s current period presentation. Restructuring charges by segment were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Sealing systems	$	1,087	$	3,262	$	12,261	$	7,527
Fluid handling systems	(27)		216		2,798		6,458
Corporate and other	456		(1,432)		5,371		(1,061)
Total	$	1,516	$	2,046	$	20,430	$	12,924

Restructuring activity for the nine months ended September 30, 2024 was as follows:

	Employee Separation Costs		Other Exit Costs		Total
Balance as of December 31, 2023	$	18,960	$	5,333	$	24,293
Expense	18,949		1,481		20,430
Cash payments	(16,852)		(4,367)		(21,219)
Foreign exchange translation and other	363		(241)		122
Balance as of September 30, 2024	$	21,420	$	2,206	$	23,626