COST OPTIMIZATION PROGRAM

9 Months Ended

Sep. 30, 2023

Restructuring and Related Activities [Abstract]

During the third quarter ended September 30, 2023 the Company initiated a Cost Optimization Program to streamline operations and optimize corporate functions. This program is expected to include workforce reduction and closure of underutilized facilities.

The Company recorded $7.1 million of expenses during the three and nine months ended September 30, 2023 which are classified in Selling, general and administrative expenses in the condensed consolidated statements of income. The Company did not allocate these charges to individual segments as they are not considered by the chief operating decision maker during the review of segment results. Accordingly, such expenses are separately disclosed in our segment reporting as “Other unallocated expenses” (See Note 15 “Segment Information”).

Activity in the Company’s restructuring reserves was as follows:


	Balance at December 31, 2022		Charges		Payments Made		Balance at September 30. 2023
2023 Cost Optimization Program
Employee separation costs	$	—	$	7,116	$	(3,379)	$	3,737
Total	$	—	$	7,116	$	(3,379)	$	3,737

The Company expects to complete all restructuring actions commenced during the three months ended September 30, 2023 by the end of the first quarter of 2024 and to incur additional charges of approximately $15.0 million related primarily to employee severance and facility exit costs. The actual amount and timing of severance and other costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates.