On an ongoing basis, the Company evaluates its business and objectives to ensure it is appropriately structured and sized in response to changing market conditions. As a result, the Company has implemented several restructuring initiatives, including closure or consolidation of facilities throughout the world and the reorganization of its operating structure.

The Company’s restructuring charges consist of severance, retention and outplacement services, and severance-related postemployment benefits (collectively, “employee separation costs”), along with other related exit costs and asset impairments related to restructuring activities (collectively, “other exit costs”). Employee separation costs are recorded based on existing union and employee contracts, statutory requirements, completed negotiations and Company policy.

Restructuring charges for the three and six months ended June 30, 2026 primarily consisted of employee separation and other costs associated with the closure and downsizing of certain plants in Europe and North America.

Restructuring charges by segment for the three and six months ended June 30, 2026 and 2025 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Sealing Systems (a)	$	6,224	$	2,735	$	7,967	$	4,256
Fluid Handling Systems	9,770		79		12,002		533
Corporate and other	1,069		38		1,726		174
Total	$	17,063	$	2,852	$	21,695	$	4,963

(a) Restructuring charges incurred during the three and six months ended June 30, 2026 are net of reimbursement already received and reimbursement expected to be received in the future.

Restructuring activity for all restructuring initiatives for the six months ended June 30, 2026 was as follows:


	Employee Separation Costs		Other Exit Costs		Total
Balance as of December 31, 2025	$	12,200	$	1,930	$	14,130
Expense (a)	33,080		8,017		41,097
Cash payments	(14,567)		(6,924)		(21,491)

Foreign exchange translation and other	(361)		(441)		(802)
Balance as of June 30, 2026	$	30,352	$	2,582	$	32,934

(a) Restructuring charges incurred during the six months ended June 30, 2026 exclude reimbursement already received and reimbursement expected to be received in the future, which is presented gross in other current assets in the condensed consolidated balance sheet as of June 30, 2026.