During 2024, following the sale of our Respiratory Health business to SunMed Group Holdings in October 2023 (the “RH Divestiture”), we initiated restructuring activities aimed at aligning our organizational structure, our manufacturing and distribution activities, and our operational footprint with our remaining business (“the Plan”). In the first six months of 2025, the Plan was expanded to accommodate additional manufacturing and operational initiatives.

In the fourth quarter of 2025, the assessment of our organization performed in conjunction with the appointment of our new Chief Executive Officer in April 2025 was completed and the Plan was expanded to align our organizational structure with our business needs. As a result, we expect to incur up to $10.0 million of incremental expenses consisting primarily of employee severance and benefits. The initiatives associated with the expansion of the Plan are expected to run through 2026.

In the three months ended March 31, 2026, we incurred $1.8 million of costs related to the Plan, compared to $3.1 million in the three months ended March 31, 2025. These costs are included in “Cost of products sold” and “Selling and general expenses” in the accompanying condensed consolidated income statements. Since its initiation, we have incurred expenses of $43.1 million in connection with the Plan, including $31.5 million of cash expenses.

Our liability for costs associated with our restructuring initiatives as of March 31, 2026 is summarized below (in millions):


	Restructuring Liability
Balance, December 31, 2025	$	7.2
Restructuring and transformation costs, excluding non-cash charges	1.4
Payments and adjustments, net	(7.6)
Balance, March 31, 2026	$	1.0