Business Reorganization

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

In June 2020, the Company announced restructuring and workforce reduction actions ("actions") to be implemented across its businesses and functions in response to the macroeconomic disruption in global industrial and aerospace end markets arising from COVID-19. A resulting pre-tax charge of $18,493 was recorded through the third quarter of 2020, primarily related to employee severance and other termination benefits, with the amounts expected to be paid by the end of 2021. These actions are expected to be substantially completed in 2020 and reduce the Company’s global workforce by approximately 8%. A corresponding liability of $15,119, per below, was included within accrued liabilities as of September 30, 2020. The Company expects to incur additional costs of approximately $2,000 through the first half of 2021 related to these actions. The employee termination costs are recorded primarily within Selling and Administrative Expenses in the accompanying Consolidated Statements of Income. Of the aggregate charges recorded, $2,243 is reflected within the results of the Aerospace segment, $15,766 is reflected within the results of the Industrial segment and $484, a pension curtailment loss, is included in Other expense (income), net.

The following table sets forth the change in the liability related to these actions:


December 31, 2019	$	—
Employee severance and other termination benefits	17,614
Payments	(2,495)
September 30, 2020	$	15,119