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RATIONALIZATION AND ASSET IMPAIRMENTS

12 Months Ended

Dec. 31, 2024

RATIONALIZATION AND ASSET IMPAIRMENTS

NOTE 7 – RATIONALIZATION AND ASSET IMPAIRMENTS

During 2024, the Company initiated rationalization plans within International Welding, Americas Welding and The Harris Products Group. During 2023, the Company also initiated rationalization plans within International Welding. The plans in both years impacted headcount and included the consolidation of manufacturing facilities to better align with the cost structure, economic conditions and operating needs. As a result of these plans, in 2024 the Company recorded Rationalization and asset impairment net charges of $32,960 in International Welding, of which $22,566 is associated with the disposal of the Company’s Russian entity. The Company also incurred Rationalization and asset impairment net charges of $18,840 and $3,955 in Americas Welding and The Harris Products Group, respectively, in 2024. In 2023, the Company recorded a Rationalization and asset impairment net gain of $11,782 in International Welding and a net charge $468 in Americas Welding. In 2022, the Company recorded Rationalization and asset impairment net charge of $11,788 primarily related to International Welding.

At December 31, 2024 and 2023, liabilities of $14,146 and $15,086, respectively, were recognized in Other current liabilities in the Company's Consolidated Balance Sheet. The Company does not anticipate significant additional charges related to the completion of these plans.

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 the rationalization liabilities:


			International		The Harris
	Americas Welding		Welding		Products Group		Consolidated
Balance at December 31, 2022	$	—	$	2,207	$	—	$	2,207
Payments and other adjustments		(468)		(6,747)		—		(7,215)
Charged to expense		468		19,626		—		20,094
Balance at December 31, 2023	$	—	$	15,086	$	—	$	15,086
Payments and other adjustments		(11,957)		(21,893)		(2,063)		(35,913)
Charged to expense		17,585		14,369		3,019		34,973
Balance at December 31, 2024	$	5,628	$	7,562	$	956	$	14,146