COST OPTIMIZATION PROGRAM

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

COST OPTIMIZATION PROGRAM

COST OPTIMIZATION PROGRAM

During the 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 total costs related to the Cost Optimization Program are classified in Selling, general and administrative expenses in the 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 18 “Segment Information”).

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

	Balance at December 31, 2022		Charges		Payments Made		Balance at December 31. 2023
2023 Cost Optimization Program
Employee separation costs	$	—	$	28,990	$	(22,024)	$	6,966
Total	$	—	$	28,990	$	(22,024)	$	6,966

The charges reflected in the above activity of the restructuring reserves do not include 2023 Cost Optimization Program charges recorded directly to expenses during the year ended December 31, 2023, including facility exit costs of $6.1 million, as these charges are not recorded in the restructuring reserves on the consolidated balance sheet. Facility exit costs generally reflect the accelerated rent expense for ROU assets, expected lease termination costs, or costs that will continue to be incurred under the facility lease without future economic benefit to the Company.

The Company expects to complete all restructuring actions commenced during the twelve months ended December 31, 2023 by the end of the first half of 2024 and to incur additional charges of approximately $2.3 million related primarily to employee severance. 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.