RATIONALIZATION AND ASSET IMPAIRMENTS

12 Months Ended

Dec. 31, 2022

RATIONALIZATION AND ASSET IMPAIRMENTS

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 7 – RATIONALIZATION AND ASSET IMPAIRMENTS

During 2020 and 2021, the Company initiated rationalization plans within the Americas Welding and International Welding segments. The plans include headcount restructuring and the consolidation of manufacturing facilities to better align the cost structure with economic conditions and operating needs. At December 31, 2022, liabilities of $2,207 for International Welding were recognized in Other current liabilities in the Company's Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.

The Company recorded rationalization and asset impairment net charges of $11,788, $9,827 and $45,468 for the years ended December 31, 2022, 2021 and 2020, respectively, related to these plans. The charges are primarily related to employee severance, asset impairments and gains or losses on the disposal of assets.

The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues to evaluate its cost structure and additional rationalization actions may result in charges in future periods.

The following table summarizes the activity related to the rationalization liabilities:

	International
	Welding		Consolidated
Balance at December 31, 2020	$	13,597	$	13,622
Payments and other adjustments		(21,488)		(21,513)
Charged to expense		10,881		10,881
Balance at December 31, 2021	$	2,990	$	2,990
Payments and other adjustments		(4,471)		(4,471)
Charged to expense		3,688		3,688
Balance at December 31, 2022	$	2,207	$	2,207