Exit and Restructuring Costs

12 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]

Exit and Restructuring Costs

Exit and Restructuring Costs

In the fourth quarter of 2025, the Company decided to dispose of or exit its robotics automation solutions business in an effort to better align resources with its strategic priorities. In relation to this decision, the Company incurred approximately $55 million in total one-time costs during the year ended December 31, 2025, principally consisting of long-lived asset impairments of $45 million, including an intangible asset impairment of $34 million, an ROU lease asset impairment of $8 million, and property, plant and equipment impairment of $3 million. The other one-time costs consisted of employee severance and working capital charges.

In the fourth quarter of 2025, the Company committed to organizational design changes intended to better meet its strategic objectives and improve cost efficiency (referred to as the “2025 Productivity Plan”), principally within the Europe, Middle East, and Africa (“EMEA”) and North America regions. Exit and restructuring charges associated with the 2025 Productivity Plan, which primarily consisted of employee severance and benefits, were $21 million during the year ended December 31, 2025.

The one-time costs associated with the planned disposal or exit of our robotics automation solutions business and the 2025 Productivity Plan are classified within Exit and restructuring on the Consolidated Statements of Operations.

The Company’s outstanding payment obligations of $23 million associated with the above actions are reflected within Accrued liabilities on the Consolidated Balance Sheets.

A rollforward of the liability associated with the Company’s Exit and restructuring activities is as follows (in millions):

	Year Ended December 31,
	2025		2024		2023
Balance as of the beginning of the year	$	4	$	22	$	9
Exit and restructuring charges, excluding long-lived asset impairments and working capital charges	27		17		98
Non-cash utilization	—		(3)		(13)
Cash payments	(8)		(32)		(72)
Balance as of the end of the year	$	23	$	4	$	22

Exit and restructuring costs incurred during the years ended December 31, 2024 and 2023 related to the Company’s 2022 Productivity Plan and 2023 voluntary retirement plan.