Restructuring and integration expense consists of costs incurred in connection with initiatives to improve operating efficiency and support earnings and cash flow growth. These costs primarily include consulting and project management

services, internal labor, facility closure and consolidation costs, and employee severance costs across functional areas. Restructuring and integration expense is not allocated to our reportable business segments.

The expense recorded during the quarter ended March 31, 2025 consisted primarily of costs related to our North Star program, a comprehensive, multi-year initiative designed to enhance shareholder value by accelerating adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth, increasing cash flow, reducing debt, and improving our leverage ratio. The material components of the North Star program were completed by the end of 2025, and no further restructuring and integration expense related to this program was incurred during the quarter ended March 31, 2026. Further information can be found under the caption "Note 8: Restructuring and Integration Expense" in the Notes to Consolidated Financial Statements located in the 2025 Form 10-K.


	Quarter Ended March 31,
(in millions)	2026		2025
Total cost of revenue	$	0.3	$	0.7
Operating expenses	3.4		7.7
Restructuring and integration expense	$	3.7	$	8.4


	Quarter Ended March 31,
(in millions)	2026		2025
Employee severance benefits	$	2.5	$	4.5
External consulting and other costs	0.8		2.5
Internal labor	0.1		1.0
Other	0.3		0.4
Restructuring and integration expense	$	3.7	$	8.4

Our restructuring and integration accruals are included in accrued liabilities on the consolidated balance sheets. These accruals represent the anticipated cash payments necessary to fulfill the remaining severance obligations for employees who have already been terminated, as well as those expected to be terminated under our various initiatives. We expect that the majority of employee reductions and the associated severance payments will be completed by the end of 2026.

The charges and reversals shown in the rollforward of our restructuring and integration accruals exclude items that are expensed as incurred, as these items are not included in accrued liabilities on the consolidated balance sheets.