RATIONALIZATION AND ASSET IMPAIRMENTS

The Company recorded rationalization net charges of $19,958, $30,053 and $8,463 for the years ended December 31, 2015, 2014 and 2013, respectively. The 2015 net charges include $13,719 primarily related to employee severance and other related costs and $6,239 in asset impairment charges. A description of each restructuring plan and the related costs follows:

North America Welding Plans:

During 2015, the Company initiated a rationalization plan within North America Welding that includes a voluntary separation incentive program covering certain U.S.-based employees. The Company recorded rationalization charges of $3,298 for the year ended December 31, 2015 related to the program, which represent employee severance and other related costs. The Company does not expect further costs associated with these actions to be material as they were substantially completed and paid during 2015.

Due to the presence of impairment indicators during 2015, the Company performed an impairment test of certain long-lived assets of a business unit. The Company determined that for certain long-lived assets the carrying value of the assets exceeded the fair value, resulting in a $3,417 non-cash impairment charge. This result was considered a possible indication of goodwill impairment, therefore, the Company performed an interim goodwill impairment test, using a combination of income and market valuation approaches, resulting in a $6,315 non-cash impairment charge to the carrying value of goodwill.

Europe Welding Plans:

During 2015, the Company initiated a rationalization plan within Europe Welding. The plan includes headcount restructuring to better align the cost structures with economic conditions and operating needs. During the year ended December 31, 2015, the Company recorded charges relating to the Europe Welding plans of $1,507, which represent employee severance and other related costs. The Company does not expect further costs associated with these actions to be material as they were substantially completed and paid during 2015.

Asia Pacific Welding Plans:

During 2014, the Company identified net assets within the segment for planned divestiture which were classified as held for sale. During 2015, the Company initiated a rationalization plan to restructure headcount and better align the cost structures with economic conditions and operating needs. As part of this plan, the net assets held for sale were reclassified as held for use as the sale was no longer deemed probable. During the year ended December 31, 2015, the Company recorded net charges relating to these actions of $5,421, which primarily represent employee severance and other related costs partially offset by costs and adjustments to reclassify a potential divestiture that was previously held-for-sale. The Company does not expect additional charges related to the completion of these actions to be material. At December 31, 2015, liabilities relating to the Asia Pacific Welding plan of $7,440 were recognized in Other current liabilities.

The following tables summarize the activity related to the rationalization liabilities by segment for the year ended December 31, 2015:



	North America Welding			Europe Welding			Asia Pacific Welding			South America Welding			Consolidated
Balance at December 31, 2013	$	466		$	2,435		$	375		$	—		$	3,276
Payments and other adjustments	(398		)	(3,041		)	(191		)	(582		)	(4,212		)
Charged (credited) to expense	(68		)	911			(184		)	582			1,241
Balance at December 31, 2014	$	—		$	305		$	—		$	—		$	305
Payments and other adjustments	(3,231		)	(1,654		)	(1,474		)	—			(6,359		)
Charged (credited) to expense	3,298			1,507			8,914			—			13,719
Balance at December 31, 2015	$	67		$	158		$	7,440		$	—		$	7,665

The Company believes the rationalization actions will positively impact future results of operations and will not have a material effect on liquidity and sources and uses of capital. The Company continues evaluating its cost structure and additional rationalization actions may result in charges in future periods.