ESAB CORP, 10-Q filed on 5/1/2024
Quarterly Report
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COVER PAGE - shares
 3 Months Ended
Mar. 29, 2024
Apr. 22, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 29, 2024  
Document Transition Report false  
Entity File Number 001-41297  
Entity Registrant Name ESAB Corporation  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 87-0923837  
Entity Address, Address Line One 909 Rose Avenue  
Entity Address, Address Line Two 8th Floor  
Entity Address, City or Town North Bethesda  
Entity Address, State or Province MD  
Entity Address, Postal Zip Code 20852  
City Area Code (301)  
Local Phone Number 323-9099  
Title of 12(b) Security Common Stock, par value $0.001 per share  
Trading Symbol ESAB  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   60,424,421
Entity Central Index Key 0001877322  
Current Fiscal Year End Date --12-31  
Amendment Flag false  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2024  
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CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Income Statement [Abstract]    
Net sales $ 689,744 $ 684,000
Cost of sales 434,717 436,611
Gross profit 255,027 247,389
Selling, general and administrative expense 142,450 147,282
Restructuring and other related charges 1,924 9,444
Operating income 110,653 90,663
Pension settlement loss 12,155 0
Interest expense and other, net 17,091 19,510
Income from continuing operations before income taxes 81,407 71,153
Income tax expense 18,504 37,024
Net income from continuing operations 62,903 34,129
Loss from discontinued operations, net of taxes (1,309) (913)
Net income 61,594 33,216
Income attributable to noncontrolling interest, net of taxes (1,643) (1,313)
Net income attributable to ESAB Corporation $ 59,951 $ 31,903
Earnings (loss) per share – basic    
Income from continuing operations (in dollars per share) $ 1.01 $ 0.54
Loss on discontinued operations (in dollars per share) (0.02) (0.02)
Net income per share (in dollars per share) 0.99 0.52
Earnings (loss) per share – diluted    
Income from continuing operations (in dollars per share) 1.00 0.54
Loss on discontinued operations (in dollars per share) (0.02) (0.02)
Net income per share - diluted (in dollars per share) $ 0.98 $ 0.52
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CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 61,594 $ 33,216
Other comprehensive (loss) income:    
Foreign currency translation, net of tax expense of $1,531 and $45 (25,354) 42,084
Unrealized income (loss) on derivatives designated and qualifying as cash flow hedges, net of tax expense (benefit) of $295 and $(1,045) 1,013 (3,581)
Defined benefit pension and other post-retirement plan activity, net of tax expense of $203 and $66 629 277
Other comprehensive (loss) income (23,712) 38,780
Comprehensive income 37,882 71,996
Comprehensive income attributable to noncontrolling interest 1,320 1,814
Comprehensive income attributable to ESAB Corporation $ 36,562 $ 70,182
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CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Unrealized gain on hedging activities, tax expense $ 295 $ (1,045)
Defined benefit pension and other post-retirement plan activity, tax expense (203) 66
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest 61,594 33,216
Foreign currency translation adjustment (25,354) 42,084
Unrealized income (loss) on derivatives designated and qualifying as cash flow hedges, net of tax expense (benefit) of $295 and $(1,045) 1,013 (3,581)
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax 629 277
Other comprehensive income (loss), net of tax (expense) benefit (23,712) 38,780
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest 37,882 71,996
Comprehensive income attributable to noncontrolling interest (1,320) (1,814)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent 36,562 70,182
Foreign currency translation, tax expense (benefit) $ 1,531 $ 45
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CONSOLIDATED AND COMBINED CONDENSED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 29, 2024
Dec. 31, 2023
CURRENT ASSETS:    
Cash and cash equivalents $ 76,495 $ 102,003
Trade receivables, less allowance for credit losses of $25,424 and $25,477 430,149 385,198
Inventories, net 405,601 392,858
Prepaid expenses 60,415 61,771
Other current assets 70,088 55,890
Total current assets 1,042,748 997,720
Property, plant and equipment, net 290,431 294,305
Goodwill 1,586,943 1,588,331
Intangible assets, net 484,219 499,535
Lease assets - right of use 94,162 95,607
Other assets 328,986 353,131
Total assets 3,827,489 3,828,629
CURRENT LIABILITIES:    
Accounts payable 338,399 306,593
Accrued liabilities 292,903 313,489
Total current liabilities 631,302 620,082
Long-term debt 992,798 1,018,057
Other liabilities 521,011 542,833
Total liabilities 2,145,111 2,180,972
Equity:    
Common stock - $0.001 par value - 600,000,000 shares authorized, $60,424,421 and 60,295,634 shares outstanding as of March 29, 2024 and December 31, 2023, respectively 60 60
Additional paid-in capital 1,881,534 1,881,054
Retained earnings 406,867 350,557
Accumulated other comprehensive loss (647,661) (624,272)
Total ESAB Corporation equity 1,640,800 1,607,399
Noncontrolling interest 41,578 40,258
Total equity 1,682,378 1,647,657
Total liabilities and equity $ 3,827,489 $ 3,828,629
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CONSOLIDATED AND COMBINED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 29, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Trade receivables, allowance for doubtful accounts $ 25,424 $ 25,477
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 600,000,000 600,000,000
Common stock, shares outstanding (in shares) 60,424,421 60,295,634
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CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF EQUITY - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2022   60,094,725        
Beginning balance at Dec. 31, 2022 $ 1,388,458 $ 60 $ 1,865,904 $ 159,231 $ (674,988) $ 38,251
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 33,216     31,903   1,313
Distributions to noncontrolling owners (1,359)         (1,359)
Dividends declared (3,033)     (3,033)    
Other comprehensive income (loss), net of tax (expense) benefit 38,780       38,279 501
Common stock-based award activity (in shares)   127,538        
Common stock-based award activity 2,229   2,229      
Ending balance (in shares) at Mar. 31, 2023   60,222,263        
Ending balance at Mar. 31, 2023 1,458,291 $ 60 1,868,133 188,101 (636,709) 38,706
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive income (loss), tax expense (benefit) $ 934          
Quarterly cash dividend declared (in dollars per share) $ 0.05          
Beginning balance (in shares) at Dec. 31, 2023 60,295,634 60,295,634        
Beginning balance at Dec. 31, 2023 $ 1,647,657 $ 60 1,881,054 350,557 (624,272) 40,258
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 61,594     59,951   1,643
Dividends declared (3,641)     (3,641)    
Other comprehensive income (loss), net of tax (expense) benefit (23,712)       (23,389) (323)
Common stock-based award activity (in shares)   128,787        
Common stock-based award activity $ 480   480      
Ending balance (in shares) at Mar. 29, 2024 60,424,421 60,424,421        
Ending balance at Mar. 29, 2024 $ 1,682,378 $ 60 $ 1,881,534 $ 406,867 $ (647,661) $ 41,578
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Other comprehensive income (loss), tax expense (benefit) $ (2,029)          
Quarterly cash dividend declared (in dollars per share) $ 0.06          
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CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF EQUITY (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Statement of Stockholders' Equity [Abstract]    
Dividends on common stock (in dollars per share) $ 0.06 $ 0.05
Other comprehensive income (loss), tax expense (benefit) $ (2,029) $ 934
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CONSOLIDATED AND COMBINED CONDENSED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Cash flows from operating activities:    
Net income $ 61,594 $ 33,216
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, amortization, and other impairment charges 16,387 21,871
Stock-based compensation expense 4,133 2,994
Deferred income tax (638) 2,290
Non-cash interest expense 1,062 299
Pension settlement loss 12,155 0
Changes in operating assets and liabilities:    
Trade receivables, net (48,946) (21,048)
Inventories, net (16,078) (21,611)
Accounts payable 36,196 28,480
Other operating assets and liabilities (21,398) (8,424)
Net cash provided by operating activities 44,467 38,067
Cash flows from investing activities:    
Purchases of property, plant and equipment (7,414) (7,709)
Proceeds from sale of property, plant and equipment 368 681
Acquisition, net of cash received (18,067) (18,721)
Other (1,501) 0
Net cash used in investing activities (26,614) (25,749)
Cash flows from financing activities:    
Proceeds from borrowings on term credit facility 115,000 187,000
Repayments of borrowings on term credit facility (6,250) 0
Repayments of borrowings on revolving credit facility and other (139,035) (189,765)
Payment of dividends (3,635) (3,033)
Distributions to noncontrolling interest holders 0 (1,249)
Net cash used in financing activities (33,920) (7,047)
Effect of foreign exchange rates on Cash and cash equivalents (9,441) 4,769
(Decrease) increase in Cash and cash equivalents (25,508) 10,040
Cash and cash equivalents, beginning of period 102,003 72,024
Cash and cash equivalents, end of period $ 76,495 $ 82,064
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Organization and Basis of Presentation
 3 Months Ended
Mar. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Basis of Presentation Organization and Basis of Presentation
Founded in 1904, ESAB Corporation (“ESAB” or the “Company”) is a focused premier industrial compounder. ESAB provides its partners with fabrication technology advanced equipment, consumables, gas control equipment, robotics, and digital solutions. The Company’s rich history of innovative products and workflow solutions and its business system ESAB Business Excellence (“EBX”) enables the Company’s purpose of Shaping the world we imagineTM. The Company conducts its operations through two reportable segments. These segments consist of the “Americas,” which includes operations in North America and South America, and “EMEA & APAC,” which includes Europe, Middle East, India, Africa and Asia Pacific. On April 4, 2022, ESAB Corporation completed its spin-off from Colfax Corporation (“Colfax,” “Enovis” or “Former Parent”) and became an independent, public-traded company (the “Separation”).

The Company’s fiscal year ends December 31. The Company’s first quarter ends on the last business day of the 13th week after the end of the prior quarter. As used herein, the first quarter results for 2024 and 2023 refer to the 13-week periods ended March 29, 2024 and March 31, 2023, respectively.

Russia and Ukraine Conflict

The invasion of Ukraine by Russia and the sanctions imposed in response have increased the level of economic and political uncertainty. While ESAB continues to closely monitor the situation and evaluate options, the Company is meeting current contractual obligations while addressing applicable laws and regulations. For the three months ended March 29, 2024, Russia represented approximately 5% of the Company’s total revenue, and approximately $4 million of its Net income. Russia also has approximately 3% of the Company’s total net assets excluding any goodwill allocation as of March 29, 2024. In case of a disposition of the Russia business, a portion of goodwill would need to be allocated and disposed of at the relative fair value attributable to the Russia business. Russia has a cumulative translation loss of approximately $118 million as of March 29, 2024, which could be realized upon a transition out. The Company is closely monitoring developments in Ukraine and Russia. Changes in laws and regulations or other factors impacting the Company’s ability to fulfill contractual obligations could have an adverse effect on the results of operations.

Basis of Presentation

The Consolidated and Condensed Financial Statements included herein have been prepared by the Company pursuant to the rules and regulations of the Security and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with the accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations; however the Company believes that the disclosures are adequate to make the information presented not misleading.

The Consolidated and Condensed Financial Statements reflect, in the opinion of management, all adjustments, which consist solely of normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations as of and for the periods indicated. Intercompany transactions and accounts are eliminated in consolidation.

In the normal course of business, the Company incurs research and development costs related to new product development, which are expensed as incurred and included in Selling, general and administrative expenses on the Company’s Consolidated and Condensed Statements of Operations. Research and development costs were $10.1 million and $9.6 million during the three months ended March 29, 2024 and March 31, 2023, respectively. These amounts do not include development and application engineering costs incurred in conjunction with fulfilling customer orders and executing customer projects, nor do they include costs related to securing third party product rights. The Company expects to continue making significant expenditures for research and development to maintain and improve its competitive positions.

The accompanying interim Consolidated and Condensed Financial Statements and the related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”), filed with the SEC on February 29, 2024.
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Discontinued Operations
 3 Months Ended
Mar. 29, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations Discontinued Operations
The Company holds certain asbestos-related contingencies and insurance coverages from divested businesses for which it does not have an interest in the ongoing operations. The Company has classified asbestos-related activity in its Consolidated and Condensed Statements of Operations as part of Loss from discontinued operations, net of taxes. This activity consists primarily of expected settlements, legal and administrative expenses associated with the above liabilities.

For the three months ended March 29, 2024 and March 31, 2023, respectively, loss from discontinued operations, net of taxes was $1.3 million and $0.9 million. See Note 14, “Commitments and Contingencies” for further information.

Cash used in operating activities related to discontinued operations for the three months ended March 29, 2024 and March 31, 2023 was $3.7 million and $5.4 million, respectively.
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Acquisition
 3 Months Ended
Mar. 29, 2024
Business Combinations [Abstract]  
Acquisition Acquisitions
On February 26, 2024, the Company completed the acquisition of Sager S.A., a welding repair and maintenance product and service leader in South America, for $18.1 million, net of cash received.

On January 11, 2023, the Company completed the acquisition of Therapy Equipment Limited, a regional leader in oxygen regulators, for $18.7 million, net of cash received.
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Revenue
 3 Months Ended
Mar. 29, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
The Company provides fabrication technology advanced equipment, consumables, gas control equipment, robotics and digital solutions. The Company’s products are utilized to solve challenges in a wide range of industries. Substantially all revenue is recognized at a point in time. The Company disaggregates its revenue into the following product groups:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Equipment$214,860 $200,219 
Consumables474,884 483,781 
Total$689,744 $684,000 

The sales mix in the above table is relatively consistent across both reportable segments. The consumables product grouping generally has less production complexity and shorter production cycles than equipment products.

Given the nature of the business, the total amount of unsatisfied performance obligations with an original contract duration of greater than one year as of March 29, 2024 is immaterial. In some circumstances, customers are billed in advance of revenue recognition, resulting in contract liabilities. As of December 31, 2023 and December 31, 2022, total contract liabilities were $31.2 million and $25.9 million, respectively, and were included in Accrued liabilities on the Consolidated and Condensed Balance Sheets. During the three months ended March 29, 2024 and March 31, 2023, revenue recognized that was included in the contract liabilities balance at the beginning of the year was $16.2 million and $11.1 million, respectively. As of March 29, 2024 and March 31, 2023, total contract liabilities were $29.5 million and $28.3 million, respectively, and were included in Accrued liabilities on the Company’s Consolidated and Condensed Balance Sheets.
Allowance for Credit Losses

A summary of the activity in the Company’s allowance for credit losses included within Trade receivables in the Consolidated and Condensed Balance Sheets is as follows:
Three Months Ended March 29, 2024
Balance at
Beginning
of Period		Charged to Expense, netWrite-Offs and DeductionsForeign
Currency
Translation		Balance at
End of
Period
(In thousands)
Allowance for credit losses$25,477 $651 $(439)$(265)$25,424 
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Earnings per Share from Continuing Operations
 3 Months Ended
Mar. 29, 2024
Earnings Per Share [Abstract]  
Earnings per Share from Continuing Operations Earnings per Share from Continuing Operations
The Company has unvested share-based payment awards with a right to receive non-forfeitable dividends, which are considered participating securities. The Company allocates earnings to participating securities and computed earnings per share using the two-class method as follows:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands, except share and per share data)
Computation of earnings per share from continuing operations – basic:
Income from continuing operations attributable to ESAB Corporation(1)
$61,260 $32,816 
Less: distributed and undistributed earnings allocated to nonvested shares(365)(237)
Income from continuing operations attributable to common stockholders$60,895 $32,579 
Weighted-average shares of Common stock outstanding – basic60,346,121 60,146,348 
Income per share from continuing operations – basic$1.01 $0.54 
Computation of earnings per share from continuing operations – diluted:
Income from continuing operations attributable to common stockholders$60,895 $32,579 
Weighted-average shares of Common stock outstanding – basic60,346,121 60,146,348 
Net effect of potentially dilutive securities(2)
641,836 339,878 
Weighted-average shares of Common stock outstanding – dilution60,987,957 60,486,226 
Net income per share from continuing operations – diluted$1.00 $0.54 
(1) Net income from continuing operations attributable to ESAB Corporation for the respective periods is calculated using Net income from continuing operations, less Income attributable to noncontrolling interest, net of taxes, of $1.6 million for the three months ended March 29, 2024 and $1.3 million for the three months ended March 31, 2023.
(2) Potentially dilutive securities include stock options, performance-based restricted stock units and non-performance-based restricted stock units.
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Income Taxes
 3 Months Ended
Mar. 29, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
During the three months ended March 29, 2024, Income from continuing operations before income taxes was $81.4 million, while Income tax expense was $18.5 million. The effective tax rate was 22.7% for the three months ended March 29, 2024. The effective tax rate differed from the 2024 U.S. federal statutory rate of 21.0% primarily due to withholding taxes.

During the three months ended March 31, 2023, Income from continuing operations before income taxes was $71.2 million, while Income tax expense was $37.0 million. The effective tax rate was 52.0% for the three months ended March 31, 2023. The effective tax rate differed from the 2023 U.S. federal statutory rate of 21.0% primarily due to discrete tax expenses in 2023 for dividend withholding taxes and an increase in the liability for uncertain tax positions as discussed below, that do not recur in 2024.
During the three months ended March 31, 2023, the Company changed its indefinite reinvestment assertion on certain undistributed earnings of the Company’s foreign subsidiaries, resulting in a total tax expense of $10.9 million, as of March 31, 2023 on such earnings that have not been indefinitely reinvested.

The Company records a liability for certain unrecognized income tax benefits for which it is more likely than not that a tax position will not be sustained upon examination by the respective taxing authority (“uncertain tax positions”). During the three months ended March 31, 2023, due to an adverse court ruling in a tax case in a foreign jurisdiction, the Company increased the related liability for uncertain tax positions by $9.4 million partially offset by changes in other positions.
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Inventories, Net
 3 Months Ended
Mar. 29, 2024
Inventory Disclosure [Abstract]  
Inventories, Net Inventories, Net
Inventories, net consisted of the following:
March 29, 2024
December 31, 2023
(In thousands)
Raw materials$153,072 $156,583 
Work in process48,627 43,561 
Finished goods253,643 244,580 
455,342 444,724 
LIFO reserve(4,980)(4,279)
Allowance for excess, slow-moving and obsolete inventory(44,761)(47,587)
$405,601 $392,858 

At March 29, 2024 and December 31, 2023, 26.0% and 27.4% of total inventories, respectively, were valued using the LIFO method.
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Accrued and Other Liabilities
 3 Months Ended
Mar. 29, 2024
Accrued Liabilities [Abstract]  
Accrued and Other Liabilities Accrued and Other Liabilities
Accrued and Other liabilities in the Consolidated and Condensed Balance Sheets consisted of the following:
March 29, 2024December 31, 2023
CurrentNoncurrentCurrentNoncurrent
(In thousands)
Accrued taxes and deferred tax liabilities$44,727 $144,214 $45,681 $144,662 
Compensation and related benefits75,906 50,750 97,052 52,589 
Asbestos liability34,111 223,829 32,908 234,796 
Contract liabilities29,548 — 31,248 — 
Lease liabilities22,936 73,995 22,794 76,609 
Warranty liability12,936 — 12,606 — 
Third-party commissions11,224 — 18,711 — 
Restructuring liability4,045 256 5,345 354 
Other57,470 27,967 47,144 33,823 
$292,903 $521,011 $313,489 $542,833 
Accrued Warranty Liability
A summary of the activity in the Company’s warranty liability included in Accrued liabilities in the Company’s Consolidated and Condensed Balance Sheets is as follows:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Warranty liability, beginning of period$12,606 $12,946 
Accrued warranty expense2,457 1,393 
Changes in estimates related to pre-existing warranties727 672 
Cost of warranty service work performed(2,647)(2,678)
Foreign exchange translation effect(207)964 
Warranty liability, end of period$12,936 $13,297 

Accrued Restructuring Liability

The Company’s restructuring programs include a series of actions to reduce the structural costs of the Company. A summary of the activity in the Company’s restructuring liability included in Accrued and Other liabilities in the Consolidated and Condensed Balance Sheets is as follows:
Three Months Ended March 29, 2024
Balance at Beginning of PeriodChargesPaymentsForeign Currency TranslationBalance at End of Period
(In thousands)
Restructuring and other related charges:
Termination benefits(1)
$4,595 $1,320 $(1,507)$(352)$4,056 
Facility closure costs and other(2)
1,104604 (1,404)(59)245 
Total$5,699 $1,924 $(2,911)$(411)$4,301 
(1) Includes severance and other termination benefits, including outplacement services.
(2) Includes the cost of relocating associates, relocating equipment, lease termination expense and other costs in connection with the closure and optimization of facilities and product lines.
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Benefit Plans
 3 Months Ended
Mar. 29, 2024
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
The Company sponsors various defined benefit plans and other post-retirement benefits plans, including health and life insurance, for certain eligible employees or former employees.

During the three months ended March 29, 2024, the Company recognized a non-cash pension settlement loss of $12.2 million related to the transfer of plan assets to a third party as part of externalizing the risk associated with a foreign defined benefit plan. This amount is reflected in Pension settlement loss in the Consolidated and Condensed Statements of Operations.
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Debt
 3 Months Ended
Mar. 29, 2024
Debt Disclosure [Abstract]  
Debt Debt
Long-term debt consisted of the following:
March 29, 2024December 31, 2023
(In thousands)
Term loans$981,250 $987,500 
Revolving credit facilities12,000 32,000 
Total debt993,250 1,019,500 
Unamortized deferred financing fees(452)(1,443)
Long-term debt$992,798 $1,018,057 
Term Loans and Revolving Credit Facility

On April 4, 2022, the Company entered into a credit agreement (as amended and restated from time-to-time, the “Credit Agreement”) in connection with the Separation. The Credit Agreement initially consisted of the following facilities:

•A $750 million revolving credit facility (the “Revolving Facility”) with a maturity date of April 4, 2027;

•A Term A-1 loan with an initial aggregate principal amount of $400 million (the “Term Loan A-1 Facility”), with a maturity date of April 4, 2027; and

•A $600 million 364-day senior term loan facility (the “Term Loan A-2 Facility”) with a maturity date of April 3, 2023.

The Revolving Facility contains a $300 million foreign currency sublimit and a $50 million swing line loan sub-facility.

On April 4, 2022, the Company drew down $1.2 billion available under the credit facilities consisting of (i) $200 million under the Revolving Facility, (ii) $400 million under the Term Loan A-1 Facility and (iii) $600 million under the Term Loan A-2 Facility. The Company used these proceeds to make payments to Enovis of $1.2 billion, which was used as part of the consideration for the contribution of certain assets and liabilities to the Company by Enovis in connection with the Separation.

On June 28, 2022, the Company amended and restated the Credit Agreement by entering into Amendment No. 2 to Credit Agreement (“Credit Agreement Amendment”). The Credit Agreement Amendment provides for a $600 million term loan facility (the “Term Loan A-3 Facility” and, together with the Term Loan A-1 Facility, the “Term Facilities”, and together with the Revolving Facility, the “Facilities”) with a maturity date of April 3, 2025 to refinance the Company’s existing Term Loan A-2 Facility. Also on June 28, 2022, the Company borrowed the entire $600 million under Term Loan A-3 Facility to fund the repayment of the Term Loan A-2 Facility.

As March 29, 2024, the Credit Agreement consisted of the following facilities:

•A $750 million revolving credit facility (the “Revolving Facility”) with a maturity date of April 4, 2027, of which $12 million was drawn;

•A Term A-1 loan with an aggregate principal amount of $393 million (the “Term Loan A-1 Facility”) with a maturity date of April 4, 2027; and

• A Term A-3 loan with an aggregate principal amount of $589 million (the “Term Loan A-3 Facility”) with a maturity date of April 3, 2025. Refer to Note 16, “Subsequent Events” for further information.

The draw-down and repayment related to these term facilities are presented net within the Consolidated and Condensed Statements of Cash Flows.

The Credit Agreement contains customary covenants limiting the ability of the Company and its subsidiaries to, among other things, incur debt or liens, merge or consolidate with others, dispose of assets, make investments or pay dividends. In addition, the Credit Agreement contains financial covenants requiring the Company to maintain (i) a maximum total leverage ratio of not more than 4.00:1.00, with step-downs to, commencing with the fiscal quarter ending June 30, 2023, 3.75:1.00, and commencing with the fiscal quarter ending June 30, 2024, 3.50:1.00, and (ii) a minimum interest coverage ratio of 3.00:1.00. The Credit Agreement contains various events of default (including failure to comply with the covenants under the Credit Agreement and related agreements) and upon an event of default the lenders may, subject to various customary cure rights, require the immediate payment of all amounts outstanding under the Term Facilities and the Revolving Facility. Certain United States subsidiaries of the Company have agreed to guarantee the obligations of the Company under the Credit Agreement.

Loans made under the Term Facilities will bear interest, at the election of the Company, at either the base rate (as defined in the Credit Agreement) or at the term Secured Overnight Financing Rate (“SOFR”) rate plus an adjustment (as defined in the Credit Agreement), in each case, plus the applicable interest rate margin. Loans made under the Revolving Facility will bear interest, at the election of the Company, at either the base rate or, (i) in the case of loans denominated in dollars, the term SOFR rate plus an adjustment or the daily simple SOFR plus an adjustment, (ii) in the case of loans denominated in euros, the adjusted Euro Interbank Offered Rate (“EURIBOR”) rate and, (iii) in the case of loans denominated in sterling, Sterling Overnight Index
Average (“SONIA”) plus an adjustment (as all such rates are defined in the Credit Agreement Amendment), in each case, plus the applicable interest rate margin. The applicable interest rate margin changes based upon the Company’s total leverage ratio (consolidated total debt divided by EBITDA, as defined in the credit agreement and ranging from 1.125% to 1.750% or in the case of the base rate margin, 0.125% to 0.750%). Each swing line loan denominated in dollars will bear interest at the base rate plus the applicable interest rate margin.

To manage exposures to currency exchange rates and interest rates arising in Long-term debt, the Company entered into interest rate and cross currency swap agreements during the year ended December 31, 2022. Refer to Note 11, “Derivatives” for additional information.

As of March 29, 2024, the weighted-average interest rate of borrowings under the Credit Agreement was 5.09%, including the net impact from the interest rate and cross currency swaps and excluding accretion of deferred financing fees, and there was $738 million of borrowing capacity available under the Revolving Facility, subject to meeting financial covenants and other requirements.

Other Indebtedness

In addition to the debt agreements discussed above, the Company also has the ability to incur approximately $77 million of indebtedness pursuant to certain uncommitted credit lines, consisting of an uncommitted credit line that the Company has used from time to time in the past for short-term working capital needs.

The Company is party to letter of credit facilities with an aggregate capacity of $109.0 million. Total letters of credit of $28.3 million were outstanding as of March 29, 2024.

Deferred Financing Fees

The Company had total deferred financing fees of $1.3 million included in its Consolidated Balance Sheet as of March 29, 2024, which will be charged to Interest expense and other, net, using the straight-line method. The costs associated with the Term Facilities will be amortized over the contractual term of the Term Facilities and the costs associated with the Revolving Facility will be amortized over the life of the Credit Agreement. Of the $1.3 million, $0.8 million of deferred financing fees relating to the Revolving Facility are included in Other assets and $0.5 million of deferred financing fees relating to the Term Facilities are recorded as a contra-liability within Long-term debt.
v3.24.1.u1
Derivatives
 3 Months Ended
Mar. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Derivatives
The Company uses derivative instruments to manage exposures to currency exchange rates and interest rates arising in connection with Long-term debt and the normal course of business. The Company has established policies and procedures that govern the risk management of these exposures. Both at inception and on an ongoing basis, the derivative instruments that qualify for hedge accounting are assessed as to their effectiveness, when applicable.

The Company is subject to the credit risk of counterparties to derivative instruments. Counterparties include a number of major banks and financial institutions. None of the concentrations of risk with an individual counterparty was considered significant as of March 29, 2024. The Company does not expect any counterparties to fail to meet their obligations. The Company records derivatives in the Consolidated and Condensed Balance Sheets at fair value.

Cash Flow Hedges

On July 14, 2022, the Company entered into two interest rate swap agreements to manage interest rate risk exposure. The aggregate notional amount of these contracts is $600 million and they mature in April 2025. These interest rate swap agreements utilized by the Company effectively modify the Company’s exposure to interest rate risk by converting a portion of the Company’s floating-rate debt to a fixed rate of 3.293%, plus a spread, thus reducing the impact of interest-rate changes on future interest expense. The applicable spread may vary between 1.125% to 1.750%, depending on the total leverage ratio of the Company.

In March 2024, the Company received $5.5 million to settle one of the interest rate swaps associated with the Company’s floating-rate debt. The termination of the interest rate swap related to the anticipated repayment of the Term A-3 Facility when
completed in April with the proceeds of the April 2024 $700 million Senior Note Offering. Refer to Note 16, “Subsequent Events” for further information. As this interest rate swap was designated as a cash flow hedge, $5.5 million was deferred in accumulated other comprehensive income (loss) (“AOCI”) and will be recognized in earnings over the period the originally forecasted hedged transaction impacts earnings. The remaining $300 million swap will continue to be hedged against the remaining floating-rate debt.

For the remaining swap, the spread was 1.250% as of March 29, 2024. This agreement involves the receipt of floating-rate amounts in exchange for fixed-rate interest payments over the life of the agreement without an exchange of the underlying principal amount. This interest rate swap agreement is designated and qualifies as a cash flow hedge and as such, the gain or loss on the derivative instrument due to the change in fair value is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. If a derivative is deemed to be ineffective, the change in fair value of the derivative is recognized directly in earnings. The Company did not have any ineffectiveness related to the cash flow hedges during the three months ended March 29, 2024.

The cash inflows and outflows associated with the Company’s interest rate swap agreement designated as cash flow hedges are classified in cash flows from operating activities in the accompanying Consolidated and Condensed Statements of Cash Flows.

The Company expects a gain of $4.0 million, net of tax, related to interest rate swap agreements to be reclassified from AOCI to earnings over the next 12 months as the hedged transactions are realized. The expected gain to be reclassified is based on current forward rates in active markets as of March 29, 2024.

The effects of designated cash flow hedges on the Company’s Consolidated and Condensed Statements of Operations consisted of the following:
Three Months Ended
Derivative type(Gain) recognized in the Consolidated and Condensed Statements of Operations:March 29, 2024March 31, 2023
(In thousands)
Interest rate swap agreementsInterest expense and other, net$(2,722)$(1,977)

Net Investment Hedges

On July 22, 2022, the Company entered into two cross-currency swap agreements to partially hedge its net investment in its Euro-denominated subsidiaries against adverse movements in exchange rates between the U.S. Dollar and the Euro. In addition, the cross-currency swap agreements include provisions to exchange fixed-rate payments in U.S. Dollar for fixed-rate payments in Euro and are designated and qualify as a net investment hedge. These contracts have a Euro aggregate notional amount of approximately €270 million and a U.S. Dollar aggregate notional amount of $275 million at March 29, 2024, and they mature in April 2025.

The changes in the spot rate of these instruments are recorded in AOCI in equity, partially offsetting the foreign currency translation adjustment of the Company’s related net investment that is also recorded in AOCI. The Company uses the spot method of assessing hedge effectiveness and as such, the initial value of the hedge components excluded from the assessment of effectiveness is recognized in the Interest expense and other, net line item in the Consolidated and Condensed Statement of Operations under a systematic and rational method over the life of the cross-currency swap agreements. Any ineffective portions of net investment hedges are reclassified from AOCI into earnings during the period of change. The Company did not have any ineffectiveness related to net investment hedges during the three months ended March 29, 2024.

The cash inflows and outflows associated with the excluded components of the Company’s cross-currency swap agreements designated as net investment hedges are classified in operating activities in the accompanying Consolidated and Condensed Statements of Cash Flows.
The effects of the excluded components of designated net investment hedges on the Company’s Consolidated and Condensed Statements of Operations consisted of the following:
Three Months Ended
Derivative type(Gain) recognized in the Consolidated and Condensed Statements of Operations:March 29, 2024March 31, 2023
(In thousands)
Cross currency swap agreementsInterest expense and other, net$(1,179)$(1,201)

The table below shows the fair value of the derivatives recognized in the Consolidated Balance Sheet:
March 29, 2024December 31, 2023
Designated as hedging instrumentsOther LiabilitiesOther AssetsOther LiabilitiesOther Assets
(In thousands)
Cross currency swap agreements$15,783 $— $22,232 $— 
Interest rate swap agreements— 5,174 — 9,522 
Total $15,783 $5,174 $22,232 $9,522 

Derivatives Not Designated as Hedging Instruments

The Company has certain foreign currency contracts that are not designated as hedges. As of March 29, 2024 and December 31, 2023, the Company had foreign currency contracts related to purchases and sales with notional values of $267.2 million and $232.5 million, respectively.

The table below shows the fair value of derivative instruments not designated in a hedging relationship recognized in the Consolidated Balance Sheet:
March 29, 2024December 31, 2023
Not designated as hedging instrumentsAccrued LiabilitiesOther Current AssetsAccrued LiabilitiesOther Current Assets
(In thousands)
Foreign currency contracts$431 $874 $596 $1,088 

The amounts in the table above as of March 29, 2024 reflect the fair value of the Company’s foreign currency contracts on a net basis where allowable under master netting agreements. Had these amounts been recognized on a gross basis, the impact would have been a $0.6 million increase in Other current assets with a corresponding increase in Accrued liabilities.

The Company recognized the following in its Consolidated and Condensed Financial Statements related to its derivative instruments not designated in a hedging relationship:
Three Months Ended
Foreign currency contractsMarch 29, 2024March 31, 2023
(In thousands)
Change in unrealized gains (losses)$(49)$143 
Realized gains (losses)(394)1,027 

The above gains or losses on foreign currency contracts are usually offset by foreign exchange exposure on cash and intercompany positions, all of which are recognized in Interest expense and other, net, in the Consolidated and Condensed Statements of Operations.
v3.24.1.u1
Fair Value Measurements
 3 Months Ended
Mar. 29, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The carrying values of financial instruments, including Trade receivables and Accounts payable, approximate their fair values due to their short-term maturities. The estimated fair values may not represent actual values of the financial instruments that could be realized as of the balance sheet date or that will be realized in the future.
A summary of the Company’s assets and liabilities that are measured at fair value for each fair value hierarchy level for the periods presented is as follows:
March 29, 2024
Level
One		Level
Two		Level
Three		Total
(In thousands)
Assets:
Cash equivalents$2,968 $— $— $2,968 
Foreign currency contracts - not designated as hedges— 1,457 — 1,457 
Interest rate swap agreements— 5,174 — 5,174 
Deferred compensation plans— 4,281 — 4,281 
$2,968 $10,912 $— $13,880 
Liabilities:
Foreign currency contracts - not designated as hedges$— $1,014 $— $1,014 
Cross currency swap agreements— 15,783 — 15,783 
Deferred compensation plans— 4,281 — 4,281 
$— $21,078 $— $21,078 

December 31, 2023
Level
One		Level
Two		Level
Three		Total
(In thousands)
Assets:
Cash equivalents$6,027 $— $— $6,027 
Foreign currency contracts - not designated as hedges— 2,261 — 2,261 
Interest rate swap agreements— 9,522 — 9,522 
Deferred compensation plans— 3,488 — 3,488 
$6,027 $15,271 $— $21,298 
Liabilities:
Foreign currency contracts - not designated as hedges$— $1,769 $— $1,769 
Cross currency swap agreements — 22,232 — 22,232 
Deferred compensation plans— 3,488 — 3,488 
$— $27,489 $— $27,489 

The Company measures the fair value of foreign currency contracts, cross currency swap agreements and interest rate swap agreements using Level Two inputs based on observable spot and forward rates in active markets. Additionally, the fair value of derivatives designated in hedging relationships includes a credit valuation adjustment to appropriately incorporate nonperformance risk for the Company and the respective counterparty. For the three months ended March 29, 2024, the impact of the credit valuation adjustment on the Company’s derivatives is immaterial. Refer to Note 11, “Derivatives” for additional information.

There were no transfers in or out of Level One, Two or Three during the three months ended March 29, 2024.
v3.24.1.u1
Equity
 3 Months Ended
Mar. 29, 2024
Equity [Abstract]  
Equity Equity
Accumulated Other Comprehensive Loss

The following tables present the changes in the balances of each component of AOCI including reclassifications out of AOCI for the three months ended March 29, 2024 and March 31, 2023. All amounts are net of tax and noncontrolling interest, if any.
Accumulated Other Comprehensive Loss Components
Net Unrecognized Pension and Other Post-Retirement Benefit CostForeign Currency Translation AdjustmentNet Investment HedgesCash Flow HedgesTotal
(In thousands)
Balance at December 31, 2023
$(59,805)$(554,622)$(17,215)$7,370 $(624,272)
Other comprehensive income (loss) before reclassifications:
Foreign currency translation adjustment243 (38,265)4,995 — (33,027)
Gain on long-term intra-entity foreign currency transactions— 7,996 — — 7,996 
Unrealized loss on cash flow hedges— — — 3,920 3,920 
Other comprehensive income (loss) before reclassifications243 (30,269)4,995 3,920 (21,111)
Amounts reclassified from Accumulated other comprehensive loss(1)(2)
629 — — (2,907)(2,278)
Net current period Other comprehensive income (loss)872 (30,269)4,995 1,013 (23,389)
Balance at March 29, 2024
$(58,933)$(584,891)$(12,220)$8,383 $(647,661)
(1) The amounts on this line within the Net Unrecognized Pension and Other Post-Retirement Benefit Cost column are included in the computation of net periodic benefit cost.
(2) During the three months ended March 29, 2024, the amount within Cash Flow Hedges is a component of Interest expense and other, net. See Note 11, “Derivatives” for additional details.
Accumulated Other Comprehensive Loss Components
Net Unrecognized Pension and Other Post-Retirement Benefit CostForeign Currency Translation AdjustmentNet Investment HedgesCash Flow HedgesTotal
(In thousands)
Balance at December 31, 2022
$(63,847)$(613,907)$(8,336)$11,102 $(674,988)
Other comprehensive income (loss) before reclassifications:
Net actuarial loss(2)— — — (2)
Foreign currency translation adjustment(108)31,276 (2,086)— 29,082 
Gain on long-term intra-entity foreign currency transactions— 12,501 — — 12,501 
Unrealized loss on cash flow hedges— — — (2,051)(2,051)
Other comprehensive (loss) income before reclassifications(110)43,777 (2,086)(2,051)39,530 
Amounts reclassified from Accumulated other comprehensive loss(1)(2)
279 — — (1,530)(1,251)
Net current period Other comprehensive (loss) income169 43,777 (2,086)(3,581)38,279 
Balance at March 31, 2023
$(63,678)$(570,130)$(10,422)$7,521 $(636,709)
(1) The amounts on this line within the Net Unrecognized Pension and Other Post-Retirement Benefit Cost column are included in the computation of net periodic benefit cost.
(2) During the three months ended March 31, 2023, the amount within Cash Flow Hedges is a component of Interest expense and other, net. See Note 11, “Derivatives” for additional details.
v3.24.1.u1
Commitments and Contingencies
 3 Months Ended
Mar. 29, 2024
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Asbestos Contingencies

Certain entities that became subsidiaries of ESAB Corporation in connection with the Separation are the legal obligor, or owner, for certain asbestos obligations including long-term asbestos insurance assets, long-term asbestos insurance receivables, accrued asbestos liabilities, long-term asbestos liabilities, asbestos indemnity expenses, asbestos-related defense costs and asbestos insurance recoveries related to the asbestos obligations from the Former Parent’s other legacy industrial businesses. As a result, the Company holds certain asbestos-related contingencies and insurance coverages.

These subsidiaries are each one of many defendants in a large number of lawsuits that claim personal injury as a result of exposure to asbestos from products manufactured or used with components that are alleged to have contained asbestos. Such components were acquired from third-party suppliers, and were not manufactured by any of the Company’s, or Former Parent’s, subsidiaries, nor were the subsidiaries, producers or direct suppliers of asbestos. The manufactured products that are alleged to have contained or used asbestos generally were provided to meet the specifications of the subsidiaries’ customers, including the U.S. Navy. The subsidiaries settle asbestos claims for amounts the Company considers reasonable given the facts and circumstances of each claim. The annual average settlement payment per asbestos claimant has fluctuated during the past several years while the number of cases has steadily declined. The Company expects such settlement value fluctuations to continue in the future based upon, among other things, the number and type of claims settled in a particular period and the jurisdictions in which such claims arise. To date, the majority of settled claims have been dismissed for no payment to plaintiffs.

The Company has classified asbestos-related activity in Loss from discontinued operations, net of taxes in the Consolidated and Condensed Statements of Operations. This is consistent with the Former Parent’s classification on the basis that, pursuant to the purchase agreement from the Former Parent’s Fluid Handling business divestiture, the Former Parent retained its asbestos-related contingencies and insurance coverages. However, as the Former Parent did not retain an interest in the ongoing operations of the business subject to the contingencies, asbestos-related activity was classified as part of Loss from discontinued operations, net of taxes in the Condensed Consolidated Statements of Operations of the Former Parent.

The Company has projected each subsidiary’s future asbestos-related liability costs with regard to pending and future unasserted claims based upon the Nicholson methodology. The Nicholson methodology is a standard approach used by experts and has been accepted by numerous courts. Consistent with the Former Parent, it is ESAB’s policy to record a liability for asbestos-related liability costs for the longest period of time that ESAB management can reasonably estimate.

The Company believes that it can reasonably estimate the asbestos-related liability for pending and future claims that will be resolved in the next 15 years and has recorded that liability as its best estimate. While it is reasonably possible that the subsidiaries will incur costs after this period, the Company does not believe the reasonably possible loss or a range of reasonably possible losses is estimable at the current time. Accordingly, no accrual has been recorded for any costs that may be paid after the next 15 years. Defense costs associated with asbestos-related liabilities as well as costs incurred related to efforts to recover insurance from the subsidiaries’ insurers are expensed as incurred.

Each subsidiary has separate insurance coverage acquired prior to Company ownership. The Company estimates the insurance assets for each subsidiary based upon the applicable policy language, expected recoveries and allocation methodologies, and law pertaining to the affected subsidiary’s insurance policies.
Asbestos-related claims activity since December 31 is as follows:
Three Months Ended
March 29, 2024March 31, 2023
(Number of claims)
Claims unresolved, beginning of period13,648 14,106 
Claims filed(1)
1,297 986 
Claims resolved(2)
(714)(749)
Claims unresolved, end of period14,231 14,343 
(1) Claims filed include all asbestos claims for which notification have been received or a file has been opened.
(2) Claims resolved include all asbestos claims that have been settled, dismissed or that are in the process of being settled or dismissed based upon agreements or understandings in place with counsel for the claimants.

The Company’s Consolidated Balance Sheet included the following amounts related to asbestos-related litigation:
March 29, 2024December 31, 2023
(In thousands)
Long-term asbestos insurance asset(1)
$213,323 $221,489 
Long-term asbestos insurance receivable(1)
18,306 17,868 
Accrued asbestos liability(2)
34,111 32,908 
Long-term asbestos liability(3)
223,829 234,796 
(1) Included in Other assets in the Consolidated Balance Sheets.
(2) Represents current accruals for probable and reasonably estimable asbestos-related liability costs that the Company believes the subsidiaries will pay, and unpaid legal costs related to defending themselves against asbestos-related liability claims and legal action against the Company’s insurers, which is included in Accrued liabilities in the Consolidated Balance Sheets.
(3) Included in Other liabilities in the Consolidated Balance Sheets.

Management’s analyses are based on currently known facts and assumptions. Projecting future events, such as new claims to be filed each year, the average cost of resolving each claim, coverage issues among layers of insurers, the method in which losses will be allocated to the various insurance policies, interpretation of the effect on coverage of various policy terms and limits and their interrelationships, the continuing solvency of various insurance companies, the amount of remaining insurance available, as well as the numerous uncertainties inherent in asbestos litigation could cause the actual liabilities and insurance recoveries to be higher or lower than those projected or recorded that could materially affect the Company’s financial condition, results of operations or cash flow.

General Litigation

The Company is involved in various pending legal proceedings arising out of the ordinary course of the Company’s business. None of these legal proceedings is expected to have a material adverse effect on the financial condition, results of operations or cash flow of the Company. With respect to these proceedings, and the litigation and claims described in the preceding paragraphs, management of the Company believes that it will either prevail, has adequate insurance coverage or has established appropriate accruals to cover potential liabilities. Legal costs related to proceedings or claims are recorded when incurred. Other costs that management estimates may be paid related to the claims are accrued when the liability is considered probable and the amount can be reasonably estimated. There can be no assurance, however, as to the ultimate outcome of any of these matters, and if all or substantially all of these legal proceedings were to be determined adverse to the Company, there could be a material adverse effect on the financial condition, results of operations or cash flow of the Company.
v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 29, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
ESAB is a focused premier industrial compounder. ESAB provides its partners with fabrication technology, advanced equipment, consumables, gas control equipment, welding robotics and digital solutions.

The Company conducts its operations through two reportable segments. These segments consist of the “Americas,” which includes operations in North America and South America, and “EMEA & APAC,” which includes Europe, Middle East, India, Africa and Asia Pacific.
The Company’s management evaluates the operating results of each of its reportable segments based upon Net sales and Adjusted EBITDA, which represents Net income from continuing operations excluding the impact of Income tax expense, Interest expense and other, net, Pension settlement (loss), Restructuring and other related charges, acquisition - amortization and other related charges and depreciation and other amortization.

The Company’s segment results were as follows:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Net sales:
Americas$296,047 $291,569 
EMEA & APAC393,697 392,431 
$689,744 $684,000 
Adjusted EBITDA(1):
Americas$54,098 $49,442 
EMEA & APAC75,039 68,547 
$129,137 $117,989 
(1) The following is a reconciliation of Net income from continuing operations to Adjusted EBITDA.
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Net income from continuing operations$62,903 $34,129 
Income tax expense 18,504 37,024 
Interest expense and other, net(1)
17,091 19,510 
Pension settlement loss12,155 — 
Restructuring and other related charges1,924 9,444 
Acquisition - amortization and other related charges(2)
7,777 9,289 
Depreciation and other amortization8,783 8,593 
Adjusted EBITDA$129,137 $117,989 
(1) Relates to removal of interest expense, net included within the Interest expense and other, net line within the Consolidated and Condensed Statements of Operations.
(2) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
v3.24.1.u1
Subsequent Events
 3 Months Ended
Mar. 29, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
On April 9, 2024, the Company completed a $700.0 million Senior Note Offering (“the Offering”). The Offering has a contractual interest rate of 6.25% and expected maturity date of April 15, 2029. The Company used the net proceeds from the Offering to repay $588.8 million of borrowings under its Term Loan A-3 Facility and pay fees associated with the Offering. The Company intends to use the remaining proceeds received to repay borrowings under its Revolving Facility and other general corporate purposes. The Offering did not have any material changes to the required financial covenants for the Company.

The dividend of $3.6 million included in Accrued liabilities in the Consolidated Balance Sheet at March 29, 2024 was paid on April 12, 2024 to stockholders of record as of March 29, 2024.

On April 30, 2024, the Company reached an agreement to acquire SUMIG Soluções para Solda e Corte Ltda, a South American light automation and equipment business for approximately $74 million of cash consideration. This acquisition is expected to be completed during the second half of 2024, subject to the receipt of applicable regulatory approvals and customary closing conditions.
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net income $ 59,951 $ 31,903
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 29, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.u1
Organization and Basis of Presentation (Policies)
 3 Months Ended
Mar. 29, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fiscal Period The Company’s fiscal year ends December 31. The Company’s first quarter ends on the last business day of the 13th week after the end of the prior quarter. As used herein, the first quarter results for 2024 and 2023 refer to the 13-week periods ended March 29, 2024 and March 31, 2023, respectively.
Basis of Presentation
The Consolidated and Condensed Financial Statements included herein have been prepared by the Company pursuant to the rules and regulations of the Security and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the financial statements prepared in accordance with the accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations; however the Company believes that the disclosures are adequate to make the information presented not misleading.
The accompanying interim Consolidated and Condensed Financial Statements and the related notes should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Form 10-K”), filed with the SEC on February 29, 2024.
Consolidation
The Consolidated and Condensed Financial Statements reflect, in the opinion of management, all adjustments, which consist solely of normal recurring adjustments, necessary to present fairly the Company’s financial position and results of operations as of and for the periods indicated. Intercompany transactions and accounts are eliminated in consolidation.
v3.24.1.u1
Revenue (Tables)
 3 Months Ended
Mar. 29, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments The Company disaggregates its revenue into the following product groups:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Equipment$214,860 $200,219 
Consumables474,884 483,781 
Total$689,744 $684,000 
Schedule of Allowance for Credit Losses
A summary of the activity in the Company’s allowance for credit losses included within Trade receivables in the Consolidated and Condensed Balance Sheets is as follows:
Three Months Ended March 29, 2024
Balance at
Beginning
of Period		Charged to Expense, netWrite-Offs and DeductionsForeign
Currency
Translation		Balance at
End of
Period
(In thousands)
Allowance for credit losses$25,477 $651 $(439)$(265)$25,424 
v3.24.1.u1
Earnings per Share from Continuing Operations (Tables)
 3 Months Ended
Mar. 29, 2024
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share from Continuing Operations The Company allocates earnings to participating securities and computed earnings per share using the two-class method as follows:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands, except share and per share data)
Computation of earnings per share from continuing operations – basic:
Income from continuing operations attributable to ESAB Corporation(1)
$61,260 $32,816 
Less: distributed and undistributed earnings allocated to nonvested shares(365)(237)
Income from continuing operations attributable to common stockholders$60,895 $32,579 
Weighted-average shares of Common stock outstanding – basic60,346,121 60,146,348 
Income per share from continuing operations – basic$1.01 $0.54 
Computation of earnings per share from continuing operations – diluted:
Income from continuing operations attributable to common stockholders$60,895 $32,579 
Weighted-average shares of Common stock outstanding – basic60,346,121 60,146,348 
Net effect of potentially dilutive securities(2)
641,836 339,878 
Weighted-average shares of Common stock outstanding – dilution60,987,957 60,486,226 
Net income per share from continuing operations – diluted$1.00 $0.54 
(1) Net income from continuing operations attributable to ESAB Corporation for the respective periods is calculated using Net income from continuing operations, less Income attributable to noncontrolling interest, net of taxes, of $1.6 million for the three months ended March 29, 2024 and $1.3 million for the three months ended March 31, 2023.
(2) Potentially dilutive securities include stock options, performance-based restricted stock units and non-performance-based restricted stock units.
v3.24.1.u1
Inventories, Net (Tables)
 3 Months Ended
Mar. 29, 2024
Inventory Disclosure [Abstract]  
Schedule of Inventory, Net
Inventories, net consisted of the following:
March 29, 2024
December 31, 2023
(In thousands)
Raw materials$153,072 $156,583 
Work in process48,627 43,561 
Finished goods253,643 244,580 
455,342 444,724 
LIFO reserve(4,980)(4,279)
Allowance for excess, slow-moving and obsolete inventory(44,761)(47,587)
$405,601 $392,858 
v3.24.1.u1
Accrued and Other Liabilities (Tables)
 3 Months Ended
Mar. 29, 2024
Accrued Liabilities [Abstract]  
Schedule of Accrued and Other Liabilities
Accrued and Other liabilities in the Consolidated and Condensed Balance Sheets consisted of the following:
March 29, 2024December 31, 2023
CurrentNoncurrentCurrentNoncurrent
(In thousands)
Accrued taxes and deferred tax liabilities$44,727 $144,214 $45,681 $144,662 
Compensation and related benefits75,906 50,750 97,052 52,589 
Asbestos liability34,111 223,829 32,908 234,796 
Contract liabilities29,548 — 31,248 — 
Lease liabilities22,936 73,995 22,794 76,609 
Warranty liability12,936 — 12,606 — 
Third-party commissions11,224 — 18,711 — 
Restructuring liability4,045 256 5,345 354 
Other57,470 27,967 47,144 33,823 
$292,903 $521,011 $313,489 $542,833 
Schedule of Product Warranty Liability
A summary of the activity in the Company’s warranty liability included in Accrued liabilities in the Company’s Consolidated and Condensed Balance Sheets is as follows:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Warranty liability, beginning of period$12,606 $12,946 
Accrued warranty expense2,457 1,393 
Changes in estimates related to pre-existing warranties727 672 
Cost of warranty service work performed(2,647)(2,678)
Foreign exchange translation effect(207)964 
Warranty liability, end of period$12,936 $13,297 
Schedule of Restructuring Reserve by Type of Cost A summary of the activity in the Company’s restructuring liability included in Accrued and Other liabilities in the Consolidated and Condensed Balance Sheets is as follows:
Three Months Ended March 29, 2024
Balance at Beginning of PeriodChargesPaymentsForeign Currency TranslationBalance at End of Period
(In thousands)
Restructuring and other related charges:
Termination benefits(1)
$4,595 $1,320 $(1,507)$(352)$4,056 
Facility closure costs and other(2)
1,104604 (1,404)(59)245 
Total$5,699 $1,924 $(2,911)$(411)$4,301 
(1) Includes severance and other termination benefits, including outplacement services.
(2) Includes the cost of relocating associates, relocating equipment, lease termination expense and other costs in connection with the closure and optimization of facilities and product lines.
v3.24.1.u1
Debt (Tables)
 3 Months Ended
Mar. 29, 2024
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt consisted of the following:
March 29, 2024December 31, 2023
(In thousands)
Term loans$981,250 $987,500 
Revolving credit facilities12,000 32,000 
Total debt993,250 1,019,500 
Unamortized deferred financing fees(452)(1,443)
Long-term debt$992,798 $1,018,057 
v3.24.1.u1
Derivatives (Tables)
 3 Months Ended
Mar. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The effects of designated cash flow hedges on the Company’s Consolidated and Condensed Statements of Operations consisted of the following:
Three Months Ended
Derivative type(Gain) recognized in the Consolidated and Condensed Statements of Operations:March 29, 2024March 31, 2023
(In thousands)
Interest rate swap agreementsInterest expense and other, net$(2,722)$(1,977)
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location
The effects of the excluded components of designated net investment hedges on the Company’s Consolidated and Condensed Statements of Operations consisted of the following:
Three Months Ended
Derivative type(Gain) recognized in the Consolidated and Condensed Statements of Operations:March 29, 2024March 31, 2023
(In thousands)
Cross currency swap agreementsInterest expense and other, net$(1,179)$(1,201)
Schedule of Fair Values of Derivative Instruments in the Financial Statements
The table below shows the fair value of the derivatives recognized in the Consolidated Balance Sheet:
March 29, 2024December 31, 2023
Designated as hedging instrumentsOther LiabilitiesOther AssetsOther LiabilitiesOther Assets
(In thousands)
Cross currency swap agreements$15,783 $— $22,232 $— 
Interest rate swap agreements— 5,174 — 9,522 
Total $15,783 $5,174 $22,232 $9,522 
Derivatives Not Designated as Hedging Instruments
The table below shows the fair value of derivative instruments not designated in a hedging relationship recognized in the Consolidated Balance Sheet:
March 29, 2024December 31, 2023
Not designated as hedging instrumentsAccrued LiabilitiesOther Current AssetsAccrued LiabilitiesOther Current Assets
(In thousands)
Foreign currency contracts$431 $874 $596 $1,088 
Schedule of Derivative Instruments
The Company recognized the following in its Consolidated and Condensed Financial Statements related to its derivative instruments not designated in a hedging relationship:
Three Months Ended
Foreign currency contractsMarch 29, 2024March 31, 2023
(In thousands)
Change in unrealized gains (losses)$(49)$143 
Realized gains (losses)(394)1,027 

The above gains or losses on foreign currency contracts are usually offset by foreign exchange exposure on cash and intercompany positions, all of which are recognized in Interest expense and other, net, in the Consolidated and Condensed Statements of Operations.
v3.24.1.u1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 29, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value
A summary of the Company’s assets and liabilities that are measured at fair value for each fair value hierarchy level for the periods presented is as follows:
March 29, 2024
Level
One		Level
Two		Level
Three		Total
(In thousands)
Assets:
Cash equivalents$2,968 $— $— $2,968 
Foreign currency contracts - not designated as hedges— 1,457 — 1,457 
Interest rate swap agreements— 5,174 — 5,174 
Deferred compensation plans— 4,281 — 4,281 
$2,968 $10,912 $— $13,880 
Liabilities:
Foreign currency contracts - not designated as hedges$— $1,014 $— $1,014 
Cross currency swap agreements— 15,783 — 15,783 
Deferred compensation plans— 4,281 — 4,281 
$— $21,078 $— $21,078 

December 31, 2023
Level
One		Level
Two		Level
Three		Total
(In thousands)
Assets:
Cash equivalents$6,027 $— $— $6,027 
Foreign currency contracts - not designated as hedges— 2,261 — 2,261 
Interest rate swap agreements— 9,522 — 9,522 
Deferred compensation plans— 3,488 — 3,488 
$6,027 $15,271 $— $21,298 
Liabilities:
Foreign currency contracts - not designated as hedges$— $1,769 $— $1,769 
Cross currency swap agreements — 22,232 — 22,232 
Deferred compensation plans— 3,488 — 3,488 
$— $27,489 $— $27,489 
v3.24.1.u1
Equity (Tables)
 3 Months Ended
Mar. 29, 2024
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
The following tables present the changes in the balances of each component of AOCI including reclassifications out of AOCI for the three months ended March 29, 2024 and March 31, 2023. All amounts are net of tax and noncontrolling interest, if any.
Accumulated Other Comprehensive Loss Components
Net Unrecognized Pension and Other Post-Retirement Benefit CostForeign Currency Translation AdjustmentNet Investment HedgesCash Flow HedgesTotal
(In thousands)
Balance at December 31, 2023
$(59,805)$(554,622)$(17,215)$7,370 $(624,272)
Other comprehensive income (loss) before reclassifications:
Foreign currency translation adjustment243 (38,265)4,995 — (33,027)
Gain on long-term intra-entity foreign currency transactions— 7,996 — — 7,996 
Unrealized loss on cash flow hedges— — — 3,920 3,920 
Other comprehensive income (loss) before reclassifications243 (30,269)4,995 3,920 (21,111)
Amounts reclassified from Accumulated other comprehensive loss(1)(2)
629 — — (2,907)(2,278)
Net current period Other comprehensive income (loss)872 (30,269)4,995 1,013 (23,389)
Balance at March 29, 2024
$(58,933)$(584,891)$(12,220)$8,383 $(647,661)
(1) The amounts on this line within the Net Unrecognized Pension and Other Post-Retirement Benefit Cost column are included in the computation of net periodic benefit cost.
(2) During the three months ended March 29, 2024, the amount within Cash Flow Hedges is a component of Interest expense and other, net. See Note 11, “Derivatives” for additional details.
Accumulated Other Comprehensive Loss Components
Net Unrecognized Pension and Other Post-Retirement Benefit CostForeign Currency Translation AdjustmentNet Investment HedgesCash Flow HedgesTotal
(In thousands)
Balance at December 31, 2022
$(63,847)$(613,907)$(8,336)$11,102 $(674,988)
Other comprehensive income (loss) before reclassifications:
Net actuarial loss(2)— — — (2)
Foreign currency translation adjustment(108)31,276 (2,086)— 29,082 
Gain on long-term intra-entity foreign currency transactions— 12,501 — — 12,501 
Unrealized loss on cash flow hedges— — — (2,051)(2,051)
Other comprehensive (loss) income before reclassifications(110)43,777 (2,086)(2,051)39,530 
Amounts reclassified from Accumulated other comprehensive loss(1)(2)
279 — — (1,530)(1,251)
Net current period Other comprehensive (loss) income169 43,777 (2,086)(3,581)38,279 
Balance at March 31, 2023
$(63,678)$(570,130)$(10,422)$7,521 $(636,709)
(1) The amounts on this line within the Net Unrecognized Pension and Other Post-Retirement Benefit Cost column are included in the computation of net periodic benefit cost.
(2) During the three months ended March 31, 2023, the amount within Cash Flow Hedges is a component of Interest expense and other, net. See Note 11, “Derivatives” for additional details.
v3.24.1.u1
Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 29, 2024
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Loss Contingencies by Number of Claims
Asbestos-related claims activity since December 31 is as follows:
Three Months Ended
March 29, 2024March 31, 2023
(Number of claims)
Claims unresolved, beginning of period13,648 14,106 
Claims filed(1)
1,297 986 
Claims resolved(2)
(714)(749)
Claims unresolved, end of period14,231 14,343 
(1) Claims filed include all asbestos claims for which notification have been received or a file has been opened.
(2) Claims resolved include all asbestos claims that have been settled, dismissed or that are in the process of being settled or dismissed based upon agreements or understandings in place with counsel for the claimants.
Schedule of Asbestos Related Litigation
The Company’s Consolidated Balance Sheet included the following amounts related to asbestos-related litigation:
March 29, 2024December 31, 2023
(In thousands)
Long-term asbestos insurance asset(1)
$213,323 $221,489 
Long-term asbestos insurance receivable(1)
18,306 17,868 
Accrued asbestos liability(2)
34,111 32,908 
Long-term asbestos liability(3)
223,829 234,796 
(1) Included in Other assets in the Consolidated Balance Sheets.
(2) Represents current accruals for probable and reasonably estimable asbestos-related liability costs that the Company believes the subsidiaries will pay, and unpaid legal costs related to defending themselves against asbestos-related liability claims and legal action against the Company’s insurers, which is included in Accrued liabilities in the Consolidated Balance Sheets.
(3) Included in Other liabilities in the Consolidated Balance Sheets.
v3.24.1.u1
Segment Information (Tables)
 3 Months Ended
Mar. 29, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The Company’s segment results were as follows:
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Net sales:
Americas$296,047 $291,569 
EMEA & APAC393,697 392,431 
$689,744 $684,000 
Adjusted EBITDA(1):
Americas$54,098 $49,442 
EMEA & APAC75,039 68,547 
$129,137 $117,989 
(1) The following is a reconciliation of Net income from continuing operations to Adjusted EBITDA.
Three Months Ended
March 29, 2024March 31, 2023
(In thousands)
Net income from continuing operations$62,903 $34,129 
Income tax expense 18,504 37,024 
Interest expense and other, net(1)
17,091 19,510 
Pension settlement loss12,155 — 
Restructuring and other related charges1,924 9,444 
Acquisition - amortization and other related charges(2)
7,777 9,289 
Depreciation and other amortization8,783 8,593 
Adjusted EBITDA$129,137 $117,989 
(1) Relates to removal of interest expense, net included within the Interest expense and other, net line within the Consolidated and Condensed Statements of Operations.
(2) Includes transaction expenses, amortization of intangibles, fair value charges on acquired inventories and integration expenses.
v3.24.1.u1
Organization and Basis of Presentation (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended
Apr. 04, 2022
USD ($)
Mar. 29, 2024
USD ($)
segment
$ / shares
Mar. 31, 2023
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
Concentration Risk [Line Items]        
Number of reportable segments | segment   2    
Quarterly cash dividend declared (in dollars per share) | $ / shares   $ 0.06 $ 0.05  
Payment of dividends   $ 3,635 $ 3,033  
Net income   59,951 31,903  
Cumulative translation loss   (1,640,800)   $ (1,607,399)
Research and development expense   10,100 $ 9,600  
Foreign Currency Translation Adjustment        
Concentration Risk [Line Items]        
Cumulative translation loss   118,000    
Russia        
Concentration Risk [Line Items]        
Net income   $ 4,000    
Russia | Assets | Geographic Concentration Risk        
Concentration Risk [Line Items]        
Concentration risk (as a percent)   3.00%    
Russia | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk        
Concentration Risk [Line Items]        
Concentration risk (as a percent)   5.00%    
Enovis Corporation        
Concentration Risk [Line Items]        
Cash consideration $ 1,200,000      
v3.24.1.u1
Discontinued Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Loss from discontinued operations, net of taxes $ (1,309) $ (913)
Cash used in operating activities, discontinued operations $ 3,700 5,400
Discontinued Operations Discontinued Operations
The Company holds certain asbestos-related contingencies and insurance coverages from divested businesses for which it does not have an interest in the ongoing operations. The Company has classified asbestos-related activity in its Consolidated and Condensed Statements of Operations as part of Loss from discontinued operations, net of taxes. This activity consists primarily of expected settlements, legal and administrative expenses associated with the above liabilities.

For the three months ended March 29, 2024 and March 31, 2023, respectively, loss from discontinued operations, net of taxes was $1.3 million and $0.9 million. See Note 14, “Commitments and Contingencies” for further information.

Cash used in operating activities related to discontinued operations for the three months ended March 29, 2024 and March 31, 2023 was $3.7 million and $5.4 million, respectively.
  
Asbestos Related Activity    
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]    
Loss from discontinued operations, net of taxes $ 1,300 $ 900
v3.24.1.u1
Discontinued Operations (Details)
 3 Months Ended
Mar. 29, 2024
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]  
Discontinued Operations Discontinued Operations
The Company holds certain asbestos-related contingencies and insurance coverages from divested businesses for which it does not have an interest in the ongoing operations. The Company has classified asbestos-related activity in its Consolidated and Condensed Statements of Operations as part of Loss from discontinued operations, net of taxes. This activity consists primarily of expected settlements, legal and administrative expenses associated with the above liabilities.

For the three months ended March 29, 2024 and March 31, 2023, respectively, loss from discontinued operations, net of taxes was $1.3 million and $0.9 million. See Note 14, “Commitments and Contingencies” for further information.

Cash used in operating activities related to discontinued operations for the three months ended March 29, 2024 and March 31, 2023 was $3.7 million and $5.4 million, respectively.
v3.24.1.u1
Acquisition (Details) - USD ($)
$ in Millions
Feb. 26, 2024
Jan. 11, 2023
Therapy Equipment Limited    
Business Acquisition [Line Items]    
Consideration transferred for acquisition   $ 18.7
Sager S.A.    
Business Acquisition [Line Items]    
Consideration transferred for acquisition $ 18.1  
v3.24.1.u1
Revenue - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Total $ 689,744 $ 684,000
Equipment    
Disaggregation of Revenue [Line Items]    
Total 214,860 200,219
Consumables    
Disaggregation of Revenue [Line Items]    
Total $ 474,884 $ 483,781
v3.24.1.u1
Revenue - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Revenue [Abstract]        
Contract liability $ 29.5 $ 28.3 $ 31.2 $ 25.9
Revenue recognized, contract liability $ 16.2 $ 11.1    
v3.24.1.u1
Revenue - Allowance for Credit Loss Rollforward (Details)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
USD ($)
Financing Receivable, Allowance for Credit Loss [Roll Forward]  
Balance at Beginning of Period $ 25,477
Charged to Expense, net 651
Write-Offs and Deductions (439)
Foreign Currency Translation (265)
Balance at End of Period $ 25,424
v3.24.1.u1
Earnings per Share from Continuing Operations (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Computation of earnings per share from continuing operations – basic:    
Income from continuing operations attributable to ESAB Corporation $ 61,260 $ 32,816
Less: distributed and undistributed earnings allocated to nonvested shares (365) (237)
Net Income (Loss) Available to Common Stockholders $ 60,895 $ 32,579
Weighted-average shares of common stock outstanding - basic (in shares) 60,346,121 60,146,348
Income per share from continuing operations – basic (in dollars per share) $ 1.01 $ 0.54
Computation of earnings per share from continuing operations – diluted:    
Net effect of potentially dilutive securities (in shares) 641,836 339,878
Weighted-average shares of common stock outstanding - assuming dilution (in shares) 60,987,957 60,486,226
Income per share from continuing operations – assuming dilution (in dollars per share) $ 1.00 $ 0.54
Net income from continuing operations attributable to noncontrolling interest, net of taxes $ 1,600 $ 1,300
v3.24.1.u1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Income Tax Disclosure [Abstract]    
Income from continuing operations before income taxes $ 81,407 $ 71,153
Income tax expense $ 18,504 $ 37,024
Effective tax rate (as a percent) 22.70% 52.00%
Undistributed foreign earnings, tax expense $ 10,900  
Increase in the net liability for uncertain tax positions $ 9,400  
v3.24.1.u1
Inventories, Net (Details) - USD ($)
$ in Thousands
Mar. 29, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 153,072 $ 156,583
Work in process 48,627 43,561
Finished goods 253,643 244,580
Inventories, gross 455,342 444,724
LIFO reserve (4,980) (4,279)
Allowance for excess, slow-moving and obsolete inventory (44,761) (47,587)
Inventories, net $ 405,601 $ 392,858
Percentage of inventory valued at LIFO 26.00% 27.40%
v3.24.1.u1
Accrued and Other Liabilities - Current and Noncurrent (Details) - USD ($)
$ in Thousands
Mar. 29, 2024
Dec. 31, 2023
Current    
Accrued taxes and deferred tax liabilities $ 44,727 $ 45,681
Compensation and related benefits 75,906 97,052
Asbestos liability 34,111 32,908
Contract liabilities $ 29,548 31,248
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Total accrued and other liabilities, Current  
Lease liabilities $ 22,936 22,794
Warranty liability 12,936 12,606
Third-party commissions 11,224 18,711
Restructuring liability 4,045 5,345
Other 57,470 47,144
Total accrued and other liabilities, Current 292,903 313,489
Noncurrent    
Accrued taxes and deferred tax liabilities 144,214 144,662
Compensation and related benefits 50,750 52,589
Asbestos liability 223,829 234,796
Contract liabilities $ 0 0
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Total accrued and other liabilities, Noncurrent  
Lease liabilities $ 73,995 76,609
Warranty liability 0 0
Third-party commissions 0 0
Restructuring liability 256 354
Other 27,967 33,823
Total accrued and other liabilities, Noncurrent $ 521,011 $ 542,833
v3.24.1.u1
Accrued and Other Liabilities - Warranty Liability Rollforward (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Movement in Standard Product Warranty Accrual [Roll Forward]    
Warranty liability, beginning of period $ 12,606 $ 12,946
Accrued warranty expense 2,457 1,393
Changes in estimates related to pre-existing warranties 727 672
Cost of warranty service work performed (2,647) (2,678)
Foreign exchange translation effect 207 (964)
Warranty liability, end of period $ 12,936 $ 13,297
v3.24.1.u1
Accrued and Other Liabilities - Restructuring Rollforward (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Restructuring Reserve [Roll Forward]    
Balance at Beginning of Period $ 5,699  
Payments (2,911)  
Foreign Currency Translation (411)  
Balance at End of Period 4,301  
Total 1,924 $ 9,444
Termination benefits    
Restructuring Reserve [Roll Forward]    
Balance at Beginning of Period 4,595  
Payments (1,507)  
Foreign Currency Translation (352)  
Balance at End of Period 4,056  
Total 1,320  
Facility closure costs and other    
Restructuring Reserve [Roll Forward]    
Balance at Beginning of Period 1,104  
Payments (1,404)  
Foreign Currency Translation (59)  
Balance at End of Period 245  
Total $ 604  
v3.24.1.u1
Benefit Plans (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Retirement Benefits [Abstract]    
Pension settlement loss $ 12,155 $ 0
v3.24.1.u1
Debt - Schedule of Long-Term Debt (Details) - USD ($)
Mar. 29, 2024
Dec. 31, 2023
Apr. 04, 2022
Debt Instrument [Line Items]      
Long-term debt $ 992,798,000 $ 1,018,057,000  
Long-Term Debt, Gross 993,250,000 1,019,500,000  
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net (452,000) (1,443,000)  
Long-term Debt 992,798,000 1,018,057,000  
Term loans | The Credit Agreement | Line of Credit      
Debt Instrument [Line Items]      
Long-Term Debt, Gross 981,250,000 987,500,000  
Revolving credit facilities | The Credit Agreement | Line of Credit      
Debt Instrument [Line Items]      
Long-Term Debt, Gross 12,000,000 $ 32,000,000  
Long-term Debt 12,000,000    
Aggregate principal amount $ 750,000,000   $ 750,000,000
v3.24.1.u1
Debt - Narrative (Details)
Apr. 04, 2022
USD ($)
Jun. 30, 2024
Mar. 29, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jun. 30, 2023
Jun. 28, 2022
USD ($)
Debt Instrument [Line Items]            
Deferred financing fees     $ 1,300,000      
Letters of credit outstanding     28,300,000      
Long-term Debt     992,798,000 $ 1,018,057,000    
Long-Term Debt            
Debt Instrument [Line Items]            
Deferred financing fees     500,000      
Other Liabilities            
Debt Instrument [Line Items]            
Deferred financing fees     $ 800,000      
Enovis Corporation            
Debt Instrument [Line Items]            
Cash consideration $ 1,200,000,000          
The Credit Agreement            
Debt Instrument [Line Items]            
Indebtedness incurred $ 1,200,000,000          
Weighted-average interest rate (as a percent)     5.09%      
The Credit Agreement | SOFR | Minimum            
Debt Instrument [Line Items]            
Basis spread on variable rate (as a percent) 1.125%          
The Credit Agreement | SOFR | Maximum            
Debt Instrument [Line Items]            
Basis spread on variable rate (as a percent) 1.75%          
The Credit Agreement | Base Rate | Minimum            
Debt Instrument [Line Items]            
Basis spread on variable rate (as a percent) 0.125%          
The Credit Agreement | Base Rate | Maximum            
Debt Instrument [Line Items]            
Basis spread on variable rate (as a percent) 0.75%          
The Credit Agreement | Line of Credit            
Debt Instrument [Line Items]            
Maximum total leverage ratio     4      
Maximum step-down leverage ratio         3.75  
Minimum interest coverage ratio     3      
The Credit Agreement | Line of Credit | Scenario, Forecast            
Debt Instrument [Line Items]            
Maximum step-down leverage ratio   3.5        
Revolving credit facilities | The Credit Agreement | Line of Credit            
Debt Instrument [Line Items]            
Aggregate principal amount $ 750,000,000   $ 750,000,000      
Repayments of borrowings on revolving credit facility and other 200,000,000          
Capacity for additional indebtedness     738,000,000      
Long-term Debt     12,000,000      
Term loans | The Credit Agreement | Senior Notes            
Debt Instrument [Line Items]            
Principal amount $ 600,000,000   589,000,000     $ 600,000,000
Debt term 364 days          
Indebtedness incurred $ 600,000,000          
Term loans | The Credit Agreement | Line of Credit            
Debt Instrument [Line Items]            
Principal amount 400,000,000   393,000,000      
Indebtedness incurred 400,000,000          
Letter of Credit            
Debt Instrument [Line Items]            
Aggregate principal amount     109,000,000      
Letter of Credit | The Credit Agreement | Line of Credit            
Debt Instrument [Line Items]            
Aggregate principal amount 300,000,000          
Letter of Credit | Uncommitted Credit Line            
Debt Instrument [Line Items]            
Aggregate principal amount     $ 77,000,000      
Bridge Loan | The Credit Agreement | Line of Credit            
Debt Instrument [Line Items]            
Aggregate principal amount $ 50,000,000          
v3.24.1.u1
Derivatives - Narratives (Details)
€ in Millions, $ in Millions
 3 Months Ended
Mar. 29, 2024
USD ($)
Apr. 09, 2024
USD ($)
Apr. 01, 2024
USD ($)
Dec. 31, 2023
USD ($)
Jul. 22, 2022
USD ($)
agreement
Jul. 22, 2022
EUR (€)
agreement
Jul. 14, 2022
USD ($)
agreement
Derivatives, Fair Value [Line Items]              
Increase in derivative assets and liabilities $ 0.6            
Senior Note Offering | Senior Notes | Subsequent Event              
Derivatives, Fair Value [Line Items]              
Principal amount   $ 700.0          
Cash Flow Hedging | Designated as hedging instruments              
Derivatives, Fair Value [Line Items]              
Notional amount         $ 275.0 € 270  
Basis spread on variable rate (as a percent)             3.293%
Cash Flow Hedging | Designated as hedging instruments | Minimum              
Derivatives, Fair Value [Line Items]              
Basis spread on variable rate (as a percent)             1.125%
Cash Flow Hedging | Designated as hedging instruments | Maximum              
Derivatives, Fair Value [Line Items]              
Basis spread on variable rate (as a percent)             1.75%
Interest rate swap agreements              
Derivatives, Fair Value [Line Items]              
Number of derivative instruments held | agreement             2
Notional amount             $ 600.0
Basis spread on variable rate (as a percent) 1.25%            
Loss related to interest rate swap agreements $ 4.0            
Interest rate swap agreements | Scenario, Forecast              
Derivatives, Fair Value [Line Items]              
Notional amount     $ 300.0        
Interest rate swap agreements | Cash Flow Hedging              
Derivatives, Fair Value [Line Items]              
Proceeds from settlement of interest rate swap 5.5            
Deferred AOCI impact from interest rate swap 5.5            
Cross currency swap agreements              
Derivatives, Fair Value [Line Items]              
Number of derivative instruments held | agreement         2 2  
Cross currency swap agreements | Not Designated as Hedging Instrument              
Derivatives, Fair Value [Line Items]              
Notional amount $ 267.2     $ 232.5      
v3.24.1.u1
Derivatives - Schedule of Derivative Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Interest rate swap agreements    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Realized loss $ (1,179) $ (1,201)
Interest rate swap agreements | Interest Expense (Income) and Other, Net    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax (2,722) (1,977)
Cross currency swap agreements | Not Designated as Hedging Instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Realized loss (394) 1,027
Change in unrealized gains (losses) $ (49) $ 143
v3.24.1.u1
Derivatives - Derivatives Not Designated as Hedging Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Dec. 31, 2023
Derivative [Line Items]    
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] Accrued liabilities Accrued liabilities
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Other current assets Other current assets
Increase in derivative assets and liabilities $ 600  
Foreign currency contracts | Not Designated as Hedging Instrument    
Derivative [Line Items]    
Derivative liability, current 431 $ 596
Derivative asset, current $ 874 $ 1,088
v3.24.1.u1
Derivatives - Schedule of Fair Values of Derivative Instruments in the Financial Statements (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Dec. 31, 2023
Derivatives, Fair Value [Line Items]      
Derivative assets $ 5,174   $ 9,522
Derivative liabilities 15,783   22,232
Cross currency swap agreements      
Derivatives, Fair Value [Line Items]      
Derivative assets 0   0
Derivative liabilities 15,783   22,232
Interest rate swap agreements      
Derivatives, Fair Value [Line Items]      
Derivative assets 5,174   9,522
Derivative liabilities 0   $ 0
Realized loss (1,179) $ (1,201)  
Not Designated as Hedging Instrument | Cross currency swap agreements      
Derivatives, Fair Value [Line Items]      
Change in unrealized gains (losses) (49) 143  
Realized loss $ (394) $ 1,027  
v3.24.1.u1
Fair Value Measurements - Fair Value Hierarchy (Details) - USD ($)
$ in Thousands
Mar. 29, 2024
Dec. 31, 2023
Assets:    
Cash equivalents $ 2,968 $ 6,027
Deferred compensation plans 4,281 3,488
Total assets at fair value 13,880 21,298
Liabilities:    
Deferred compensation plans 4,281 3,488
Total liabilities at fair value 21,078 27,489
Cross currency swap agreements | Not Designated as Hedging Instrument    
Assets:    
Derivative assets 1,457 2,261
Liabilities:    
Derivative liabilities 1,014 1,769
Cross currency swap agreements | Designated as hedging instruments    
Liabilities:    
Derivative liabilities 15,783 22,232
Interest rate swap agreements    
Assets:    
Derivative assets 5,174 9,522
Level One    
Assets:    
Cash equivalents 2,968 6,027
Deferred compensation plans 0 0
Total assets at fair value 2,968 6,027
Liabilities:    
Deferred compensation plans 0 0
Total liabilities at fair value 0 0
Level One | Cross currency swap agreements | Not Designated as Hedging Instrument    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0 0
Level One | Cross currency swap agreements | Designated as hedging instruments    
Liabilities:    
Derivative liabilities 0 0
Level One | Interest rate swap agreements    
Assets:    
Derivative assets 0 0
Level Two    
Assets:    
Cash equivalents 0 0
Deferred compensation plans 4,281 3,488
Total assets at fair value 10,912 15,271
Liabilities:    
Deferred compensation plans 4,281 3,488
Total liabilities at fair value 21,078 27,489
Level Two | Cross currency swap agreements | Not Designated as Hedging Instrument    
Assets:    
Derivative assets 1,457 2,261
Liabilities:    
Derivative liabilities 1,014 1,769
Level Two | Cross currency swap agreements | Designated as hedging instruments    
Liabilities:    
Derivative liabilities 15,783 22,232
Level Two | Interest rate swap agreements    
Assets:    
Derivative assets 5,174 9,522
Level Three    
Assets:    
Cash equivalents 0 0
Deferred compensation plans 0 0
Total assets at fair value 0 0
Liabilities:    
Deferred compensation plans 0 0
Total liabilities at fair value 0 0
Level Three | Cross currency swap agreements | Not Designated as Hedging Instrument    
Assets:    
Derivative assets 0 0
Liabilities:    
Derivative liabilities 0 0
Level Three | Cross currency swap agreements | Designated as hedging instruments    
Liabilities:    
Derivative liabilities 0 0
Level Three | Interest rate swap agreements    
Assets:    
Derivative assets $ 0 $ 0
v3.24.1.u1
Equity (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance $ 1,647,657 $ 1,388,458
Net actuarial loss   (2)
Foreign currency translation adjustment (33,027) 29,082
Gain on long-term intra-entity foreign currency transactions 7,996 12,501
Unrealized gain on cash flow hedges 3,920 (2,051)
Other comprehensive income (loss) before reclassifications (21,111) 39,530
Amounts reclassified from Accumulated other comprehensive loss (2,278) (1,251)
Net current period Other comprehensive (loss) income (23,389) 38,279
Ending balance 1,682,378 1,458,291
Total    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (624,272) (674,988)
Ending balance (647,661) (636,709)
Net Unrecognized Pension and Other Post-Retirement Benefit Cost    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (59,805) (63,847)
Net actuarial loss   (2)
Foreign currency translation adjustment 243 (108)
Gain on long-term intra-entity foreign currency transactions 0 0
Unrealized gain on cash flow hedges 0 0
Other comprehensive income (loss) before reclassifications (243) 110
Amounts reclassified from Accumulated other comprehensive loss 629 279
Net current period Other comprehensive (loss) income 872 169
Ending balance (58,933) (63,678)
Foreign Currency Translation Adjustment    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (554,622) (613,907)
Net actuarial loss   0
Foreign currency translation adjustment (38,265) 31,276
Gain on long-term intra-entity foreign currency transactions 7,996 12,501
Unrealized gain on cash flow hedges 0 0
Other comprehensive income (loss) before reclassifications 30,269 (43,777)
Amounts reclassified from Accumulated other comprehensive loss 0 0
Net current period Other comprehensive (loss) income (30,269) 43,777
Ending balance (584,891) (570,130)
Net Investment Hedges    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance (17,215) (8,336)
Net actuarial loss   0
Foreign currency translation adjustment 4,995 (2,086)
Gain on long-term intra-entity foreign currency transactions 0 0
Unrealized gain on cash flow hedges 0 0
Other comprehensive income (loss) before reclassifications (4,995) 2,086
Amounts reclassified from Accumulated other comprehensive loss 0 0
Net current period Other comprehensive (loss) income 4,995 (2,086)
Ending balance (12,220) (10,422)
Cash Flow Hedges    
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]    
Beginning balance 7,370 11,102
Net actuarial loss   0
Foreign currency translation adjustment 0 0
Gain on long-term intra-entity foreign currency transactions 0 0
Unrealized gain on cash flow hedges 3,920 (2,051)
Other comprehensive income (loss) before reclassifications (3,920) 2,051
Amounts reclassified from Accumulated other comprehensive loss (2,907) (1,530)
Net current period Other comprehensive (loss) income 1,013 (3,581)
Ending balance $ 8,383 $ 7,521
v3.24.1.u1
Commitments and Contingencies - Narrative (Details)
 3 Months Ended
Mar. 29, 2024
Commitments and Contingencies Disclosure [Abstract]  
Future claims period 15 years
v3.24.1.u1
Commitments and Contingencies - Asbestos-Related Claims Activity (Details) - claim
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Loss Contingency Accrual [Roll Forward]    
Claims unresolved, beginning of period 13,648 14,106
Claims filed 1,297 986
Claims resolved (714) (749)
Claims unresolved, end of period 14,231 14,343
v3.24.1.u1
Commitments and Contingencies - Asbestos Litigation (Details) - USD ($)
$ in Thousands
Mar. 29, 2024
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]    
Long-term asbestos liability $ 223,829 $ 234,796
Loss Contingency, Receivable, Current 213,323 221,489
Loss Contingency, Receivable, Noncurrent 18,306 17,868
Loss Contingency, Accrual, Current 34,111 32,908
Loss Contingency, Accrual, Noncurrent $ 223,829 $ 234,796
v3.24.1.u1
Segment Information - Narrative (Details)
 3 Months Ended
Mar. 29, 2024
segment
Segment Reporting [Abstract]  
Number of reportable segments 2
v3.24.1.u1
Segment Information - Segment Results (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2024
Mar. 31, 2023
Net sales $ 689,744 $ 684,000
Adjusted EBITA 129,137 117,989
Net income from continuing operations 62,903 34,129
Income tax expense 18,504 37,024
Interest expense and other, net 17,091 19,510
Restructuring and other related charges 1,924 9,444
Acquisition - amortization and other related charges 7,777 9,289
Depreciation and other amortization 8,783 8,593
Pension settlement loss 12,155 0
Americas Segment    
Net sales 296,047 291,569
Adjusted EBITA 54,098 49,442
EMEA and APAC Segment    
Net sales 393,697 392,431
Adjusted EBITA $ 75,039 $ 68,547
v3.24.1.u1
Subsequent Events (Details) - USD ($)
 3 Months Ended
Apr. 30, 2024
Apr. 09, 2024
Mar. 29, 2024
Mar. 31, 2023
Jun. 28, 2022
Apr. 04, 2022
Subsequent Event [Line Items]            
Repayments of borrowing on term credit facility     $ 6,250,000 $ 0    
Dividends payable included in accrued liabilities     3,600,000      
Subsequent Event | SUMIG Soluções para Solda Ltda            
Subsequent Event [Line Items]            
Purchase price for business combination agreement $ 74,000,000          
Senior Note Offering | Subsequent Event | Senior Notes            
Subsequent Event [Line Items]            
Outstanding borrowings   $ 700,000,000        
Contractual interest rate   6.25%        
Term loans | The Credit Agreement | Senior Notes            
Subsequent Event [Line Items]            
Outstanding borrowings     $ 589,000,000   $ 600,000,000 $ 600,000,000
Term loans | The Credit Agreement | Senior Notes | Subsequent Event            
Subsequent Event [Line Items]            
Repayments of borrowing on term credit facility   $ 588,800,000