RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded rationalization net charges of $8,463, $9,354 and $282 for the years ended December 31, 2013, 2012 and 2011, respectively. The 2013 net charges include $3,658 primarily related to employee severance and $4,961 in asset impairment charges, partially offset by gains of $156 related to sale of assets. A description of each restructuring plan and the related costs follows:

North America Welding Plans:

During 2012, the Company initiated various rationalization plans within the North America Welding segment. Plans for the segment include consolidating its Oceanside, California operations and its Reno, Nevada operations to another facility in Reno, Nevada and consolidating its Baltimore, Maryland manufacturing operations into its current manufacturing operations in Cleveland, Ohio. These actions impacted 72 employees within the North America Welding segment. During the year ended December 31, 2013, the Company recorded charges of $1,052, which represent employee severance and other related costs. At December 31, 2013, a liability relating to these actions of $466 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial.

Europe Welding Plans:

During 2013, the Company announced a rationalization plan within the Europe Welding segment to relocate the manufacturing of certain consumable products from its Portuguese operations to current facilities in Italy. These actions impacted 56 employees within the Europe Welding segment. During the year ended December 31, 2013, the Company recorded charges of $1,832 related to these activities. The amount represents employee severance and other related costs of $1,599 and asset impairment charges of $233. At December 31, 2013, a liability relating to these actions of $1,209 was recognized in Other current liabilities. The Company expects to incur additional charges in the range of $400 to $700 related to the completion of this plan.

During 2012, the Company initiated various rationalization plans within the Europe Welding segment. Plans for the segment include the consolidation of manufacturing facilities in Russia, relocation of its Italian machine manufacturing operations to current facilities in Poland and headcount restructuring at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. These actions impacted 285 employees within the Europe Welding segment. During the year ended December 31, 2013, the Company recorded net charges of $213 related to these activities. The amount represents employee severance and other related costs and asset impairment charges, partially offset by a gain on sale of assets. At December 31, 2013, a liability relating to these actions of $1,226 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial.

Asia Pacific Welding Plans:

During 2012, the Company initiated various rationalization plans within the Asia Pacific Welding segment. These included the rationalization of the Australian manufacturing operations and headcount reductions at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. These actions impacted 268 employees within the Asia Pacific Welding segment. During the year ended December 31, 2013, the Company recorded net charges of $922, which represent employee severance and other related costs of $841 and asset impairment charges of $235, partially offset by gains of $154 from the sale of assets. At December 31, 2013, a liability relating to these actions of $375 was recognized in Other current liabilities, which will be substantially paid in 2014. Additional charges related to the completion of this plan are expected to be immaterial.

The Company continues evaluating its cost structure and additional rationalization actions may result in charges in future periods.

During 2013, the Company recorded long-lived asset impairment charges of $4,444 in Rationalization and asset impairment charges. The charge is the result of the Company removing capacity to align itself with current market conditions and improve operating efficiency.

The following tables summarize the activity related to the rationalization liabilities by segment for the years ended December 31, 2013 and 2012:



	North America Welding			Europe Welding			Asia Pacific Welding			The Harris Products Group			Consolidated
Balance at December 31, 2011	$	—		$	173		$	—		$	82		$	255
Payments and other adjustments	(827		)	(1,797		)	(2,107		)	(82		)	(4,813		)
Charged to expense	827			3,637			3,151			—			7,615
Balance at December 31, 2012	$	—		$	2,013		$	1,044		$	—		$	3,057
Payments and other adjustments	(586		)	(1,343		)	(1,510		)	—			(3,439		)
Charged to expense	1,052			1,765			841			—			3,658
Balance at December 31, 2013	$	466		$	2,435		$	375		$	—		$	3,276