RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded net rationalization charges of $1,902 for the six months ended June 30, 2013. The charges include $1,819 primarily related to employee severance and $206 in asset impairment charges, partially offset by gains of $123 related to sale of assets. A description of each restructuring plan and the related costs follows:

North America Welding Plans:

During 2012, the Company initiated various rationalization plans within the North America Welding segment. Plans for the segment include consolidating its Oceanside, California operations and its Reno, Nevada operations to another facility in Reno, Nevada and consolidating its Baltimore, Maryland manufacturing operations into its current manufacturing operations in Cleveland, Ohio. These actions impacted 72 employees within the North America Welding segment. During the six months ended June 30, 2013, the Company recorded charges of $1,126 which represent employee severance and other related costs. At June 30, 2013, a liability relating to these actions of $775 was recognized in Other current liabilities, which will be substantially paid in 2013. Additional charges related to the completion of this plan are expected to be immaterial.

Europe Welding Plans:

During 2012, the Company initiated various rationalization plans within the Europe Welding segment. Plans for the segment include the consolidation of manufacturing facilities in Russia, relocation of its Italian machine manufacturing operations to current facilities in Poland and headcount restructuring at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. These actions impacted 285 employees within the Europe Welding segment. During the six months ended June 30, 2013, the Company recorded net charges of $69 related to these activities. The amount represents employee severance and other related costs partially offset by a gain on sale of assets. At June 30, 2013, a liability relating to these actions of $1,354 was recognized in Other current liabilities, which will be substantially paid in 2013. Additional charges related to the completion of this plan are expected to be immaterial.

Asia Pacific Welding Plans:

During 2012, the Company initiated various rationalization plans within the Asia Pacific Welding segment. Plans for the segment include the rationalization of its Australian manufacturing operations and headcount restructuring at various other manufacturing operations within the segment to better align the cost structure and capacity requirements with current economic needs and conditions. These actions impacted 268 employees within the Asia Pacific Welding segment. During the six months ended June 30, 2013, the Company recorded net charges of $707, which represent employee severance and other related costs of $622 and asset impairment charges of $206, partially offset by gains of $121 from the sale of assets. At June 30, 2013, a liability relating to these actions of $684 was recognized in Other current liabilities, which will be substantially paid in 2013. Additional charges related to the completion of this plan are expected to be immaterial.

The Company continues evaluating its cost structure and additional rationalization actions may result in charges in future periods. The following tables summarize the activity related to the rationalization liabilities by segment for the six months ended June 30, 2013:



	North America Welding			Europe Welding			Asia Pacific Welding			Consolidated
Balance, December 31, 2012	$	—		$	2,013		$	1,044		$	3,057
Payments and other adjustments	(351		)	(730		)	(982		)	(2,063		)
Charged to expense	1,126			71			622			1,819
Balance, June 30, 2013	$	775		$	1,354		$	684		$	2,813