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RATIONALIZATION AND ASSET IMPAIRMENTS

3 Months Ended

Mar. 31, 2024

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 6 — RATIONALIZATION AND ASSET IMPAIRMENTS

The Company has rationalization plans within International Welding and The Harris Products Group segments. The plans include headcount restructuring and the consolidation of manufacturing operations to better align the Company’s cost structure with economic conditions and operating needs. At March 31, 2024, liabilities of $9,801 and $386 for International Welding and The Harris Products Group, respectively, were recognized in Other current liabilities in the Company’s Condensed Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.

The Company recorded Rationalization and asset impairment net charges of $3,069 and $1,536 in International Welding and The Harris Products Group in the three months ended March 31, 2024, respectively. The Company recorded Rationalization and asset impairment net charges of $877 in International Welding in the three months ended March 31, 2023. The charges are primarily related to restructuring activities.

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, 2024:


	International		The Harris Products
	Welding		Group		Consolidated
Balance at December 31, 2023	$	15,086	$	—	$	15,086
Payments and other adjustments		(8,290)		(1,150)		(9,440)
Charged to expense		3,005		1,536		4,541
Balance at March 31, 2024	$	9,801	$	386	$	10,187