Business Reorganization

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Business Reorganizations

In July 2022, the Company authorized 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. Resulting pre-tax charges of $17,986 were recorded in the second half of 2022. Of the aggregate, $11,880 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 which were recorded within Selling and Administrative Expenses. The remaining $6,106 primarily related to $3,186 of accelerated depreciation of assets and $1,417 of pension curtailment losses and special termination benefits which were recorded in Cost of sales and Other expense (income), net, respectively. During the first quarter of 2023 additional pre-tax charges of $3,990, including $1,593 of accelerated depreciation of assets and $2,397, primarily related to transfer of work charges, were primarily recorded within Cost of sales in the accompanying Condensed Consolidated Statements of Income. A corresponding liability of $9,424, per below, related to the employee termination costs remained and was included within accrued liabilities as of March 31, 2023. The Company expects to incur additional costs of approximately $5,000 in 2023 related to the 2022 Actions, including approximately $2,000 of additional accelerated depreciation and $4,000 of transfer of work charges, partially offset by a $1,000 benefit related to pension curtailment and settlement gains. Of this $5,000, approximately $4,000 is payable in cash. The 2022 Actions are expected to be completed in 2023.

The following table sets forth the change in the liability for the employee termination benefits related to the 2022 Actions:


December 31, 2022	$	10,900

Payments	(1,476)
March 31, 2023	$	9,424