The Company has undertaken initiatives to restructure its business operations to improve utilization and realize cost savings. These initiatives have included changing the number and location of production facilities, largely to align capacity and infrastructure with current and anticipated customer demand. This alignment includes transferring programs from higher cost geographies to lower cost geographies. The Company’s restructuring process entails moving production between facilities, reducing staff levels, realigning business processes, reorganizing management and other activities.

During the six months ended June 30, 2026, the Company recognized $4.9 million of restructuring charges, which primarily related to a planned closure of our site in Phoenix, Arizona and other smaller activities involving capacity reductions and reductions in workforce in certain facilities across various regions. Phoenix, Arizona operations ceased during the second quarter of 2026 and all related restructuring activity is expected to be substantially complete in 2026. Additionally, the Company recorded a $0.3 million net recovery related to the settlement of a tax assessment in the Americas.

During the six months ended June 30, 2025, the Company recognized $3.3 million of restructuring charges, which primarily related to capacity and workforce reductions at its sites in the Americas. Additionally, the Company agreed to a $10.7 million settlement related to tax assessments in the Americas.

Accrued restructuring costs are included in accrued liabilities on the consolidated balance sheets.

The components of restructuring charges were as follows:


	Six Months Ended June 30, 2026
(in thousands)	Americas		Asia		Europe		Total
Severance costs	$	3,791	$	55	$	64	$	3,910
Other exit costs		963		—		—		963
Total restructuring charges	$	4,754	$	55	$	64	$	4,873

The changes in the Company’s accrued restructuring costs were as follows:


(in thousands)	Balances as of December 31, 2025		Restructuring Charges		Cash Payments			Non-Cash Activity		Balances as of June 30, 2026
Severance costs	$	1,575	$	3,910	$	(4,067	)	$	—	$	1,418
Other exit costs		—		963		(963	)		—		—
Total accrued restructuring costs	$	1,575	$	4,873	$	(5,030	)	$	—	$	1,418