RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

12 Months Ended

Dec. 31, 2024

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

NOTE 12.           RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

Details of restructuring, asset impairments, and other charges are as follows:

	Years Ended December 31,
	2024		2023		2022
	(in thousands)
Restructuring	$	28,074	$	25,134	$	6,814
Asset impairments		—		1,446		—
Other charges		2,244		397		—
Total restructuring, asset impairments, and other charges	$	30,318	$	26,977	$	6,814

Restructuring

We have several restructuring plans in process:

2024 Plan

On July 29, 2024, we approved actions in furtherance of our manufacturing consolidation initiatives intended to optimize our manufacturing footprint and cost structure, including the closure of our Zhongshan, China manufacturing facility (the “2024 Plan”). In connection with the 2024 Plan, we recorded a $29.6 million charge primarily associated with expected employment-related charges for, among other things, one-time cash payments for severance, benefits expenses, payroll taxes, and other ancillary costs. The charge includes estimated liabilities for lease termination and facility exit costs, which could be subject to further adjustments. The remaining contractual rental obligations under the lease agreements are recorded in current portion of operating lease liabilities and operating lease liabilities on our Consolidated Balance Sheets.

The amounts incurred as a result of the approved actions are estimates and actual results may differ, which could result in incremental restructuring charges in future periods. We anticipate the 2024 Plan will be substantially completed by the end of second quarter of 2025, with final activities expected to conclude in 2026.

2023 Plan

In 2023, we approved a plan intended to optimize and further consolidate our manufacturing operations and functional support groups as well as a general reduction-in-force to align our expenses to revenue levels (the “2023 Plan”). We expect to incur approximately $1.0 million in additional charges through the second quarter of 2025. The 2023 Plan is substantially complete, with the final activities expected to conclude in 2026.

2022 Plan

This plan was approved to improve our operating efficiencies and drive the realization of synergies from our business combinations by consolidating our operations, optimizing our factory footprint, including moving certain production into our higher volume factories, reducing redundancies, and lowering our cost structure. The 2022 Plan is now complete.

Changes in restructuring liabilities were as follows:

	2024 Plan		2023 Plan		2022 Plan		2018 Plan		Total
	(in thousands)
December 31, 2022	$	—	$	—	$	5,788	$	1,422	$	7,210
Costs incurred and charged to expense		—		17,103		8,199		(168)		25,134
Costs paid or otherwise settled		—		(2,879)		(11,057)		(1,066)		(15,002)
December 31, 2023		—		14,224		2,930		188		17,342
Costs incurred and charged to expense		29,649		(1,663)		88		—		28,074
Costs paid		(5,057)		(7,593)		(3,018)		(188)		(15,856)
Foreign currency translation		457		—		—		—		457
December 31, 2024	$	25,049	$	4,968	$	—	$	—	$	30,017

The above restructuring liability of $30.0 million is comprised of $23.9 million in other accrued expenses and $6.1 million included in other long-term liabilities on our Consolidated Balance Sheets.

Charges related to our restructuring plans are as follows:

	Years Ended December 31,
	2024		2023		2022
	(in thousands)
Severance and related charges	$	27,977	$	25,134	$	6,469
Facility relocation and closure charges		97		—		345
Total restructuring charges	$	28,074	$	25,134	$	6,814

	Cumulative Cost Through
	December 31, 2024
	2024 Plan		2023 Plan		2022 Plan		Total
	(in thousands)
Severance and related charges	$	29,552	$	15,440	$	14,075	$	59,067
Facility relocation and closure charges		97		—		—		97
Total restructuring charges	$	29,649	$	15,440	$	14,075	$	59,164

Other Charges

Other charges relate to vacating and relocating facilities.