RATIONALIZATION AND ASSET IMPAIRMENTS

3 Months Ended

Mar. 31, 2025

RATIONALIZATION AND ASSET IMPAIRMENTS

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS

The Company has rationalization plans within International Welding, Americas Welding and The Harris Products Group. The plans impacted headcount and included the consolidation of manufacturing facilities to better align with the cost structure, economic conditions and operating needs of the business. As a result of these plans, in the three months ended March 31, 2025, the Company recorded Rationalization and asset impairment net charges of $2,135 in Americas Welding, $1,552 in International Welding and $178 in The Harris Products Group. In the three months ended March 31, 2024, the Company recorded Rationalization and asset impairment net charges of $3,069 in International Welding and $1,536 in The Harris Products Group.

At March 31, 2025 and December 31, 2024, rationalization liabilities of $7,598 and $14,146, respectively, were recognized in Other current liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.

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 rationalization liabilities for the three months ended March 31, 2025:

	Americas		International		The Harris Products
	Welding		Welding		Group		Consolidated
Balance at December 31, 2024	$	5,628	$	7,562	$	956	$	14,146
Payments and other adjustments		(6,693)		(2,974)		(746)		(10,413)
Charged to expense		2,135		1,552		178		3,865
Balance at March 31, 2025	$	1,070	$	6,140	$	388	$	7,598