Restructuring Activities and Other Inventory-Related Charges

6 Months Ended

Jun. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring Activities and Other Inventory-Related Charges

In July 2023, the Board of Directors authorized the Company's management team to undertake restructuring activities to simplify and streamline our organization and strengthen the overall effectiveness of our operations. Since the initial streamlining and rebalancing efforts contemplated in July 2023, and with the introduction of new management in the second half of 2024, the Company continued to undertake further restructuring activities (collectively, the “Restructuring Plan”) which has included consolidating a portion of our manufacturing operations between certain U.S. locations, writing-off abandoned equipment with the rationalization of excess production line capacity and discontinuing the sale of certain product SKUs. In addition, the Company evaluated the net realizable value of finished goods and raw materials to meet rapidly changing demand during a challenging supply chain environment in the industry during 2023 and 2024.

The Company recorded pre-tax restructuring activity of $2.2 million and $1.0 million for the three months ended June 30, 2025 and 2024, respectively and $4.1 million and $2.4 million for the six months ended June 30, 2025 and 2024, respectively, related to the 2023 Restructuring Plan, which was completed in the second quarter of 2025. As of June 30, 2025, the total pre-tax restructuring activity incurred related to the Restructuring Plan and other inventory-related charges is $83.3 million, of which $59.7 million related to other inventory-related charges. For more information regarding the other inventory related charges, see Note 6, “Restructuring Activities and Other Inventory-Related Charges” included in Part II, Item 8, “Financial Statements and Supplementary Data” to the Company’s Form 10-K.

The following tables summarize the charges related to restructuring activities by type of cost for the periods presented on the Company’s condensed consolidated statements of comprehensive income:


	Three Months Ended June 30, 2025
	Severance and Employee-Related Costs			Facility and Other Exit Costs		Total
	(Amounts in thousands)
Cost of goods sold	$	139		$	1,714	$	1,853
Research and development		(12	)		—		(12	)
Selling, general and administrative		58			263		321
	$	185		$	1,977	$	2,162


	Six Months Ended June 30, 2025
	Severance and Employee-Related Costs			Facility and Other Exit Costs		Total
	(Amounts in thousands)
Cost of goods sold	$	217		$	2,250	$	2,467
Research and development		(69	)		867		798
Selling, general and administrative		49			821		870
	$	197		$	3,938	$	4,135


	Three Months Ended June 30, 2024
	Severance and Employee-Related Costs		Facility and Other Exit Costs		Total
	(Amounts in thousands)
Cost of goods sold	$	371	$	143	$	514
Research and development		284		—		284
Selling, general and administrative		157		17		174
	$	812	$	160	$	972


	Six Months Ended June 30, 2024
	Severance and Employee-Related Costs		Accelerated Depreciation		Facility and Other Exit Costs		Total
	(Amounts in thousands)
Cost of goods sold	$	853	$	19	$	201	$	1,073
Research and development		449		—		—		449
Selling, general and administrative		856		—		17		873
	$	2,158	$	19	$	218	$	2,395

Severance and employee-related costs under the Restructuring Plan are primarily associated with actual headcount reductions. Costs incurred include cash severance and non-cash severance, including other termination benefits. Severance and other termination benefit packages are based on established benefit arrangements or local statutory requirements and we recognized the contractual component of these benefits when payment was probable and could be reasonably estimated.

The Company’s manufacturing strategy and footprint were reviewed as a part of our 2024 annual strategic planning and budget session. These exit activities initiated in 2024 were completed in the second quarter of 2025.

As of June 30, 2025, there was no restructuring liability remaining in the condensed consolidated balance sheet. Activity related to the Restructuring Plan for the six months ended June 30, 2025 was as follows (amounts in thousands):


	Restructuring Liability December 31, 2024		Restructuring Costs		Amounts Paid in 2025			Noncash Restructuring Items			Restructuring Liability June 30, 2025

Severance & employee-related costs	$	516	$	197	$	(395	)	$	(318	)	$	—
Facility and other exit costs		—		3,938		(505	)		(3,433	)		—
Total	$	516	$	4,135	$	(900	)	$	(3,751	)	$	—