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RATIONALIZATION AND ASSET IMPAIRMENTS

6 Months Ended

Jun. 30, 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 June 30, 2024, liabilities of $7,897 and $351 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 $29,354 in International Welding in the six months ended June 30, 2024, of which $22,566 is associated with the disposal of the Company’s Russian entity. In addition, the Company incurred Rationalization and asset impairment net charges of $1,396 in The Harris Products Group in the six months ended June 30, 2024.

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 six months ended June 30, 2024:


	International		The Harris Products
	Welding		Group		Consolidated
Balance at December 31, 2023	$	15,086	$	—	$	15,086
Payments and other adjustments		(13,137)		(1,045)		(14,182)
Charged to expense		5,948		1,396		7,344
Balance at June 30, 2024	$	7,897	$	351	$	8,248