Business Reorganization

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Business Reorganizations

In June 2020, the Company announced restructuring and workforce reduction actions ("Actions") which were implemented across its businesses and functions in response to the macroeconomic disruption in global industrial and aerospace end markets arising from COVID-19. During 2020, a resulting pre-tax charge of $19,116 was recorded ($18,158 through operating profit), primarily related to employee severance and termination benefits (recorded largely during the second quarter of 2020). These actions were substantially complete as of December 31, 2020 and reduced the Company’s global workforce by approximately 8%. A corresponding liability of $4,240, per below, was included within accrued liabilities as of June 30, 2021. The Company does not expect any additional costs related to the Actions to be significant.

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


December 31, 2020	$	13,151
Severance expense	(600)
Payments	(8,311)
June 30, 2021	$	4,240

In June 2021, the Company initiated additional restructuring actions ("Restructurings") at two locations. The Restructurings include a transfer of manufacturing capabilities to leverage existing manufacturing capacity which is expected to reduce labor and infrastructure costs. The Restructurings resulted in pre-tax charges of $1,118, primarily related to employee severance and termination benefits, and have been recorded within Selling and Administrative Expenses in the accompanying Consolidated Statements of Income. The Company expects to incur additional charges of approximately $3,000 related to these actions through 2022.

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