Business Reorganization

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Business Reorganizations

In June 2020, the Company announced restructuring and workforce reduction actions ("2020 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 $100, per below, remained and was included within accrued liabilities as of September 30, 2022. The Company does not expect any additional costs related to the 2020 Actions to be significant.

The following table sets forth the change in the liability related to the 2020 Actions:


December 31, 2021	$	1,222
Employee severance and other termination benefits	(321)
Payments	(801)
September 30, 2022	$	100

In 2021, the Company initiated additional restructuring actions ("2021 Actions") at a number of locations. The 2021 Actions included a transfer of manufacturing capabilities to leverage existing capacity which is expected to reduce labor and infrastructure costs. The 2021 Actions resulted in pre-tax charges of $2,869, primarily related to employee severance and termination benefits, in 2021 (recorded primarily during the second and fourth quarters of 2021), and $382 in the first nine months of 2022. The Company does not expect any additional costs related to the 2021 Actions to be significant.

In July 2022, the Company authorized additional restructuring actions (“2022 Actions”) focused on the consolidation of two manufacturing sites and a number of branch offices, and changes in infrastructure to eliminate certain roles across a number of locations in the Industrial segment businesses. A resulting pre-tax charge of $11,377 was recorded ($9,960 through operating profit) in the third quarter of 2022. Of the aggregate, $8,169 related to employee termination costs, primarily employee severance and other termination benefits, which are expected to be paid in cash by the end of 2023, and $3,208 related to other associated costs, primarily including $1,417 of pension expense and $1,593 of accelerated depreciation of assets. A corresponding liability of $7,976, per below, remained and was included within accrued liabilities as of September 30, 2022. The Company expects to incur additional costs of approximately $4,000 in 2022 and $8,000 in 2023 related to the 2022 Actions, which are expected to be completed in 2023. The Company anticipates annualized cost savings of approximately $14,000 from the 2022 Actions.

The following table sets forth the change in the liability related to the 2022 Actions:


December 31, 2021	$	—
Employee severance and other termination benefits	8,169
Payments	(193)
September 30, 2022	$	7,976