Restructuring

12 Months Ended

Jan. 02, 2026

Restructuring and Related Activities [Abstract]

In August 2025, our Board of Directors authorized, and we implemented, a corporate reorganization plan (the 2025 Plan) to reorganize our workforce and close our office located in King of Prussia, Pennsylvania. Restructuring expenses incurred under the 2025 Plan are primarily severance and employee-related costs. The total restructuring costs, incurred during the year ended December 31, 2025, associated with the 2025 Plan were $20.5 million and are presented in the restructuring expense line item within our Consolidated Statements of Income. We incurred the majority of the costs related to the 2025 Plan during the third quarter of 2025 and substantially completed the 2025 Plan by the end of the fiscal year 2025.

The restructuring activities and balances as of and for the year ended December 31, 2025, were as follows (in thousands):


			Year Ended December 31, 2025
	Accrued at December 31, 2024		Initial Costs		Adj. to Costs(2)		Non-cash charges		Cash Payments		Accrued at December 31, 2025(3)		Total Costs Incurred to Date		Total Expected Plan Costs
Severance and employee-related costs and other exit costs(1)	$	—	$	20,337	$	173	$	(395)	$	(17,470)	$	2,645	$	20,510	$	20,510
Other restructuring plan(4)	256		—		—		—		(256)		—		—		—
Total restructuring	$	256	$	20,337	$	173	$	(395)	$	(17,726)	$	2,645	$	20,510	$	20,510

__________________

(1) Other exit costs expensed as incurred.

(2) Adjustments to costs consist of changes in estimates whereby increases and decreases in costs were recorded to operating expenses in the period of adjustments.

(3) As of December 31, 2025, substantially all restructuring liabilities have been recorded in accrued compensation and benefits in the accompanying Consolidated Balance Sheets.

(4) Consisted of severance and employee-related costs from the 2024 Plan (as defined below), paid in the first quarter of 2025.

In January 2024, our Board of Directors authorized, and we implemented, a corporate restructuring plan (the 2024 Plan) to reduce our workforce and rebalance our cost structure in alignment with our strategic priorities. Restructuring expenses incurred under the 2024 Plan included: severance and employee-related costs; impairment of long-lived assets; and contract termination and other exit costs. The total restructuring costs, incurred during the year ended December 31, 2024, associated with the 2024 Plan were $33.7 million in expenses and were recorded to the restructuring expense line item within our Consolidated Statements of Income as they were incurred through the end of the plan. We incurred the majority of the costs related to the 2024 Plan during the first quarter of 2024.

In connection with the 2024 Plan, we exited two leases in the Greater Philadelphia area and the right-of-use assets, related leasehold improvements and certain other long-lived assets were remeasured and recorded at fair value, see “Note 12. Commitments and Contingencies” for additional information.

The restructuring activities and balances as of and for the year ended December 31, 2024, were as follows (in thousands):


			Year Ended December 31, 2024
	Accrued at December 31, 2023		Initial Costs		Adj. to Costs(2)		Non-cash charges		Cash Payments		Accrued at December 30, 2024(3)		Total Costs Incurred to Date		Total Expected Plan Costs
Severance and employee-related costs	$	—	$	15,656	$	69	$	—	$	(15,469)	$	256	$	15,725	$	15,725
Contract termination and other exit costs(1)	—		5,220		(4)		—		(5,216)		—		5,216		5,216
Asset impairment	—		12,318		401		(12,719)		—		—		12,719		12,719
Total restructuring	$	—	$	33,194	$	466	$	(12,719)	$	(20,685)	$	256	$	33,660	$	33,660

__________________

(1) Contract termination costs consist of accruals for costs to be incurred without future economic benefit, and other exit costs expensed as incurred.

(2) Adjustments to costs consist of changes in estimates whereby increases and decreases in costs were recorded to operating expenses in the period of adjustments.

(3) As of December 31, 2024, all restructuring liabilities have been recorded in accrued compensation and benefits in the accompanying Consolidated Balance Sheets.