SUPPLY CHAIN OPTIMIZATION

6 Months Ended

Jun. 30, 2024

Restructuring and Related Activities [Abstract]

During the three months ended June 30, 2024, the Company completed a supply chain optimization initiative with the goal of aligning the Company’s distribution footprint with current demand levels. On June 28, 2024, the Company closed its Maryland Distribution Center located in Ridgely, Maryland. The Company is currently assessing options for the disposition of the land and building, but the associated asset group that includes the land and building is not impaired. The assets within the facility are being actively marketed for sale and were written down to fair value less cost to sell, with the impact reflected below as the loss of impairment of equipment held for sale. The Company identified certain other supply chain assets at other locations within its distribution network that will no longer be utilized and are no longer useful to the Company’s operations, and adjusted their respective useful lives accordingly, with the impact reflected below in the accelerated depreciation charges.

For the three months ended June 30, 2024, the components of the Company’s supply chain optimization charges were as follows:


	Three Months Ended June 30, 2024

Loss on impairment of equipment held for sale	$	2,499
Accelerated depreciation charges	9,190

Non-cash charges for supply chain optimization	11,689
One-time severance costs	813
Total supply chain optimization	$	12,502

For the three months ended June 30, 2024, the supply chain optimization charges were recorded in the Company’s Condensed Consolidated Statements of Operations as follows:


	Three Months Ended June 30, 2024

Selling, general, and administrative	$	12,502
Total supply chain optimization	$	12,502