Restructuring, Integration, and Other

9 Months Ended

Sep. 27, 2025

Restructuring, Integration, and Other

Restructuring, Integration, and Other

Note I – Restructuring, Integration, and Other

The following table presents the components of the restructuring, integration, and other charges:

	Quarter Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
(thousands)	2025		2024		2025		2024
Restructuring, integration and related costs
Operating Expense Efficiency Plan costs (a)	$	34,628	$	—	$	63,259	$	—
Other plans		170		741		2,053		841
Other expenses
Operating expense reduction costs not related to restructuring initiatives (b)		(1,382)		31,895		546		107,503
Early lease termination costs		215		289		1,546		6,814
Other charges		2,017		1,541		7,476		6,701
	$	35,648	$	34,466	$	74,880	$	121,859

(a) See details related to the Operating Expense Efficiency Plan discussed below.

(b) Primarily related to employee severance and benefit costs. As of September 27, 2025, the accrued liabilities related to these costs totaled $20.0 million and substantially all accrued amounts are expected to be spent in cash within two years.

Operating Expense Efficiency Plan

On October 31, 2024, in response to evolving business needs and as part of an initiative to optimize operating expenses, the company announced a multi-year restructuring plan (the “Operating Expense Efficiency Plan” or “the Plan”). The Plan is designed to improve operational efficiency through the following measures: (i) reorganizing and consolidating certain areas of the company’s operations to centralize functions and streamline resources, with a focus on more cost-efficient regions; (ii) enhancing warehouse and logistics operations; (iii) investing in information technology to support automation and process improvements; (iv) consolidating the company’s global real estate footprint; (v) reducing third-party spending; and (vi) winding down certain non-core businesses that are not aligned with the company’s strategic objectives. The company expects to substantially complete the Plan by the end of fiscal year 2026, subject to, among other things, local legal and consultation requirements.

Under the Plan, the company anticipates to incur pre-tax restructuring charges of approximately $185.0 million. While the composition of these costs will continue to evolve over time, the company currently expects to incur approximately $80.0 million of employee severance and other personnel cash expenditures; approximately $75.0 million of non-cash asset impairments, inventory write-downs and foreign currency translation adjustment write-offs related to the wind down of certain business operations; and approximately $30.0 million of other related cash expenditures. As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, restructuring, integration, and related costs are included in the corporate line item for management and segment reporting as they are not attributable to the individual reportable segments.

The following table presents the costs related to the Operating Expense Efficiency Plan:

			Quarter Ended		Nine Months Ended		Total Cost
			September 27,		September 27,		Incurred to
(thousands)	Income Statement Line		2025		2025		Date
Employee severance and benefit costs		Restructuring, integration, and other	$	28,334	$	47,747	$	49,095
Inventory (recoveries) write-downs		Cost of sales		(1,989)		(6,628)		43,716
Asset impairments		Restructuring, integration, and other		-		-		1,416
Other costs (a)		Restructuring, integration, and other		6,294		15,512		23,027
			$	32,639	$	56,631	$	117,254

(a) Other costs consist primarily of consulting and other professional fees, early lease termination fees, and foreign currency translation adjustment write-offs.

The following table presents the activity in the restructuring, integration, and other accruals related to the Operating Expense Efficiency Plan:

(thousands)	Employee Severance and Benefit Costs		Inventory Recoveries		Other Costs		Total
Balance at December 31, 2024	$	384	$	-	$	202	$	586
Restructuring related charges		47,747		(6,628)		15,512		56,631
Cash (payments) receipts		(15,195)		6,628		(14,345)		(22,912)
Foreign currency translations		979		-		79		1,058
Balance at September 27, 2025	$	33,915	$	-	$	1,448	$	35,363

Substantially all amounts accrued at September 27, 2025 related to the Operating Expense Efficiency Plan are expected to be paid in cash within one year.