In November 2024, we announced the creation of a Strategic Business Operations office focused on accelerating our growth and driving operating efficiencies in all areas of our business while increasing organizational agility. We intend to: modernize and optimize our processes and systems, including through advanced technology and automation; increase sales efficiency and inventory optimization; and capture significant savings from initiatives related to procurement and corporate overhead.

During the first quarter of 2025, we incurred $10 million of restructuring charges associated with these efforts and as of March 31, 2025, $5 million was accrued on our Balance Sheet related to these charges.

In addition, we recorded a $2 million impairment related to an operating lease and related assets.

During the first quarter of 2024, we incurred $2 million of restructuring charges associated with the elimination of certain positions as a result of the realignment of our management structure and headcount reductions in 2023.