The Company has undertaken initiatives to restructure its business operations to improve utilization and realize cost savings. These initiatives have included changing the number and location of production facilities, largely to align capacity and infrastructure with current and anticipated customer demand. This alignment includes transferring programs from higher cost geographies to lower cost geographies. The Company’s restructuring process entails moving production between facilities, reducing staff levels, realigning business processes, reorganizing management and other activities.

During the six months ended June 30, 2025, the Company recognized $3.3 million of restructuring charges, which primarily related to capacity and workforce reductions at its sites in the Americas. Accrued restructuring costs are included in accrued liabilities on the consolidated balance sheet. Additionally, the Company agreed to a $10.7 million settlement related to a tax assessment in the Americas. See Note 15 for further information on the tax assessment.

The Company recognized $4.8 million of restructuring charges during the six months ended June 30, 2024 primarily related to capacity and workforce reductions at its sites in the Americas.

The components of restructuring charges were as follows:


	Six Months Ended June 30, 2025
(in thousands)	Americas		Asia		Europe		Total
Severance costs	$	2,923	$	—	$	—	$	2,923
Other exit costs		358		—		—		358
Total restructuring charges	$	3,281	$	—	$	—	$	3,281

The changes in the Company’s accrued restructuring costs were as follows:


(in thousands)	Balances as of December 31, 2024		Restructuring Charges		Cash Payments			Non-Cash Activity		Balances as of June 30, 2025
Severance costs	$	209	$	2,923	$	(2,804	)	$	—	$	328
Other exit costs		—		358		(358	)		—		—
Total accrued restructuring costs	$	209	$	3,281	$	(3,162	)	$	—	$	328