v3.26.1
Note 4 - Restructuring
6 Months Ended
Jun. 28, 2026
Notes to Financial Statements  
Restructuring and Related Activities Disclosure [Text Block]

 

4.       Restructuring

 

The $1.6 million and $3.8 million of restructuring charges recognized in the second quarter and first six months of 2026, respectively, relate to the continued execution of previously announced restructuring initiatives aimed at reducing our fixed cost structure and enhancing operational alignment, including the centralization of our North American gas cylinders and magnesium powders operations.

 

These charges comprised $1.4 million and $3.6 million in the second quarter and first six months of 2026, respectively, within the Gas Cylinders segment and $0.1 million and $0.2 million, respectively, within the Elektron segment. The Superform segment also recognized $0.1 million of restructuring costs in the second quarter of 2026.

 

The charges within the Gas Cylinders segment primarily related to follow-on costs associated with the cessation of manufacturing at our Pomona, California facility in December 2025, including equipment relocation, site reorganization, employee stay incentives and site remediation activities. The charges within the Elektron segment primarily related to shutdown costs associated with the ongoing centralization of our magnesium powders operations.

 

The $2.0 million and $1.8 million of restructuring charges recognized in the second quarter and first six months of 2025, respectively, predominantly related to initiatives aimed at reducing our fixed cost structure and generating savings through enhanced operational alignment, particularly through the reduction of our North American Gas Cylinders footprint. As part of these initiatives, we recognized accelerated depreciation charges of $1.7 million related to property, plant and equipment in the second quarter and first six months of 2025, in accordance with ASC 360. These charges resulted from the strategic decision to relocate certain operations, which shortened the expected useful lives of the affected assets.

 

Restructuring-related costs by reportable segment were as follows:

 

 

Second Quarter

 

 

Year-to-date

 

In millions

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Severance and other costs

 

 

 

 

 

 

 

 

 

 

 

 

Gas Cylinders

 

$

1.3

 

 

$

0.3

 

 

$

3.5

 

 

$

0.4

 

Elektron

 

 

0.1

 

 

 

 

 

 

0.2

 

 

 

 

Superform

 

 

0.1

 

 

 

 

 

 

 

 

 

(0.3

)

 

 

$

1.5

 

 

$

0.3

 

 

$

3.7

 

 

$

0.1

 

Accelerated depreciation charges

 

 

 

 

 

 

 

 

 

 

 

 

Gas Cylinders

 

$

 

 

$

1.7

 

 

$

 

 

$

1.7

 

 

 

$

 

 

$

1.7

 

 

$

 

 

$

1.7

 

Asset impairments

 

 

 

 

 

 

 

 

 

 

 

 

Gas Cylinders

 

$

0.1

 

 

$

 

 

$

0.1

 

 

$

 

 

 

$

0.1

 

 

$

 

 

$

0.1

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total restructuring charges

 

$

1.6

 

 

$

2.0

 

 

$

3.8

 

 

$

1.8

 

 

Activity related to restructuring, recorded in Other current liabilities in the consolidated balance sheets is summarized as follows:

 

In millions

 

2026

 

Balance at January 1,

 

$ 0.4

 

Costs incurred

 

 

3.7

 

Cash payments and other

 

 

(4.1 )

Balance at June 28,

 

$