COST OPTIMIZATION PROGRAMS

9 Months Ended

Sep. 30, 2024

Restructuring and Related Activities [Abstract]

During the quarter ended June 30, 2024, the Company initiated the 2024 Cost Optimization Program to streamline operations and optimize corporate functions. This program is expected to include workforce reductions and contract terminations. The Company expects to complete all restructuring actions commenced under the 2024 Cost Optimization Program by the end of the second quarter of 2025 and to incur additional charges of approximately $14.0 million. 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.

During the quarter ended September 30, 2023, the Company initiated the 2023 Cost Optimization Program to streamline operations and optimize corporate functions. This program included workforce reduction and closure of underutilized facilities. As of June 30, 2024, the Company has completed all restructuring actions commenced under the 2023 Cost Optimization Program.

The total costs related to the Cost Optimization Programs 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 presented in our segment reporting as part of “Other unallocated expenses” (See Note 16 “Segment Information”).

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


	Balance at December 31, 2023		Charges		Payments Made		Balance at September 30, 2024
2024 Cost Optimization Program
Employee separation costs	$	—	$	17,132	$	(13,506)	$	3,626
Contract termination charges	—		286		—		286
2023 Cost Optimization Program
Employee separation costs	6,966		9,015		(15,981)		—
Total	$	6,966	$	26,433	$	(29,487)	$	3,912