RATIONALIZATION AND ASSET IMPAIRMENTS

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

The Company recorded Rationalization and asset impairment net charges of $6,521 and $3,535 in the three months ended March 31, 2020 and 2019, respectively. The charges are primarily related to employee severance, asset impairments and gains or losses on the disposal of assets.

During 2020, the Company initiated rationalization plans within Americas Welding and International Welding segments. The plans include headcount restructuring and the consolidation of manufacturing facilities to better align the cost structure with economic conditions and operating needs. At March 31, 2020, liabilities of $854 and $6,168 for Americas Welding and International Welding, respectively, were recognized in Other current liabilities in the Company's Condensed Consolidated Balance Sheet.

During 2019, the Company initiated rationalization plans within International Welding. The plans include headcount restructuring and the consolidation of manufacturing operations to better align the cost structure with economic conditions and operating needs. At March 31, 2020, liabilities of $6,616 were recognized in Other current liabilities in the Company's Condensed Consolidated Balance Sheet.

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 to evaluate its cost structure and additional rationalization actions may result in charges in future periods.

The following table summarizes the activity related to rationalization liabilities for the three months ended March 31, 2020:



	Americas Welding		International Welding			Consolidated
Balance, December 31, 2019	$	—	$	8,202		$	8,202
Payments and other adjustments	—		(1,321		)	(1,321		)
Charged to expense	854		5,903			6,757
Balance, March 31, 2020	$	854	$	12,784		$	13,638