Restructuring, Integration, and Other

12 Months Ended

Dec. 31, 2025

Restructuring, Integration, and Other

Restructuring, Integration, and Other

9. Restructuring, Integration, and Other

The following table presents the components of the restructuring, integration, and other charges for the years ended December 31:


(thousands)		2025			2024			2023
Restructuring, integration and related costs
Operating Expense Efficiency Plan costs (a)		$	106,082		$	10,279		$	—
Other plans			2,075			3,848			8,877
Other expenses
Operating expense reduction costs not related to restructuring initiatives (b)			(1,418)			84,510			19,077
Environmental remediation liabilities			4,463			756			23,336
Early lease termination costs			1,546			6,814			29,400
Consulting costs (c)			—			25,306			—
Other charges			3,371			11,404			3,226
		$	116,119		$	142,917		$	83,916

(a)	See details related to the Operating Expense Efficiency Plan discussed below.

(b)	Primarily related to employee severance and benefit costs. As of December 31, 2025, the accrued liabilities related to these costs totaled $15.7 million and substantially all accrued amounts are expected to be spent in cash within two years.

(c)	Consulting costs are related to operating expense reduction costs not related to the restructuring initiative.

Operating Expense Efficiency Plan

On October 31, 2024, in response to evolving business needs and as part of an initiative to optimize operating expenses, the company announced a multi-year restructuring plan (the “Operating Expense Efficiency Plan” or “the Plan”). The Plan is designed to improve operational efficiency through the following measures: (i) reorganizing and consolidating certain areas of the company’s operations to centralize functions and streamline resources, with a focus on more cost-efficient regions; (ii) enhancing warehouse and logistics operations; (iii) investing in information technology to support automation and process improvements; (iv) consolidating the company’s global real estate footprint; (v) reducing third-party spending; and (vi) winding down certain non-core businesses that are not aligned with the company’s strategic objectives. The company expects to substantially complete the Plan by the end of fiscal year 2026, subject to, among other things, local legal and consultation requirements.

Under the Plan, the company anticipates to incur pre-tax restructuring charges of approximately $200.0 million which is an increase of $15.0 million compared to the original estimate of $185.0 million previously disclosed in Item 2.05 Form 8K filed on October 31, 2024. While the expected cash charges are in line with original expectations, the increase is primarily related to non-cash write-offs due to changes in foreign currencies. The composition of these costs will continue to evolve over time the company currently expects to incur approximately $100.0 million of employee severance and other personnel cash expenditures; approximately $65.0 million of non-cash asset impairments, inventory write-downs and foreign currency translation adjustment write-offs related to the wind down of certain business operations; and approximately $35.0 million of other related cash expenditures. As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, restructuring, integration, and related costs are included in the corporate line item for management and segment reporting as they are not attributable to the individual reportable segments.

The following table presents the costs related to the Operating Expense Efficiency Plan:


(thousands)		Income Statement line			Year Ended December 31, 2025			Year Ended December 31, 2024			Total Cost Incurred to Date
Employee severance and benefit costs			Restructuring, integration, and other		$	83,658		$	1,348		$	85,006
Inventory (recoveries) write-downs			Cost of sales			(10,266)			50,344			40,078
Asset impairments			Restructuring, integration, and other			-			1,416			1,416
Other costs (a)			Restructuring, integration, and other			22,424			7,515			29,939
					$	95,816		$	60,623		$	156,439

(a)	Other costs consist primarily of consulting and other professional fees, early lease termination fees, and foreign currency translation adjustment write-offs.

The following table presents the activity in the restructuring and integration accruals related to the Operating Expense Efficiency Plan:


(thousands)		Employee Severance and Benefit Costs			Inventory Recoveries			Other Costs			Total
Balance at December 31, 2024		$	384		$	-		$	202		$	586
Restructuring related charges			83,658			(10,266)			22,424			95,816
Cash (payments) receipts			(34,288)			10,266			(17,508)			(41,530)
Foreign currency translations			1,493			-			109			1,602
Balance at December 31, 2025		$	51,247		$	-		$	5,227		$	56,474

Substantially all amounts accrued at December 31, 2025 related to the Operating Expense Efficiency Plan are expected to be paid in cash within one year.