v3.26.1
Restructuring, Asset Impairments and Other, Net
 6 Months Ended
Jul. 03, 2026
Restructuring Charges [Abstract]  
Restructuring, Asset Impairments and Other, Net
Note 5: Restructuring, Asset Impairments and Other, Net

Details of restructuring, asset impairments and other, net were as follows (in millions):    
RestructuringAsset ImpairmentsOtherTotal
For the quarter ended July 3, 2026:
2026 Manufacturing Realignment Program$2.5 $16.3 $22.4 $41.2 
Total$2.5 $16.3 $22.4 $41.2 
RestructuringAsset ImpairmentsOther ChargesTotal
For the quarter ended July 4, 2025:
2025 Manufacturing Realignment Program$2.9 $40.6 $5.6 $49.1 
2024 Business Realignment(0.2)— 0.3 0.1 
Total$2.7 $40.6 $5.9 $49.2 
RestructuringAsset ImpairmentsOtherTotal
For the six months ended July 3, 2026:
2026 Manufacturing Realignment Program$22.7 $163.3 $184.5 $370.5 
Total$22.7 $163.3 $184.5 $370.5 
RestructuringAsset ImpairmentsOther ChargesTotal
For the six months ended July 4, 2025:
2025 Manufacturing Realignment Program$63.1 $472.1 $50.5 $585.7 
2024 Business Realignment0.7 — 2.1 2.8 
Total$63.8 $472.1 $52.6 $588.5 

A summary of changes in the accrued restructuring balance by program was as follows (in millions):
As ofAs of
December 31, 2025ChargesUsageJuly 3, 2026
2026 Manufacturing Realignment Program$— $22.7 $(18.6)$4.1 
2025 Manufacturing Realignment Program2.7 — (2.0)0.7 
Other3.3 — (1.3)2.0 
Total$6.0 $22.7 $(21.9)$6.8 

The amounts recorded under the 2026 Manufacturing Realignment Program represent new restructuring activities that expand upon the Company’s 2025 Manufacturing Realignment Program for actions and decisions taken in 2026.

2026 Manufacturing Realignment Program

During the quarter and six months ended July 3, 2026, the Company continued to engage in additional restructuring and cost reduction initiatives under its previously disclosed multi‑year manufacturing realignment program to better align manufacturing capacity and capabilities with anticipated long‑term needs. These initiatives resulted in a reduction of global workforce, impairments of certain long-lived assets that met the held-for-sale criteria, and certain other charges primarily relating to the accelerated amortization and depreciation of assets for actions taken previously, during the quarter and six months ended July 3, 2026.

Restructuring

Restructuring charges include estimated severance payments and related benefit expenses for employees who were notified of their employment termination or terminated during the period.

In January 2026, as part of the 2026 Manufacturing Realignment Program, the Company initiated a restructuring plan to further reduce its global workforce by approximately 650 employees, and, in connection with such plan, the Company expects to incur total severance and other related benefit expenses of approximately $25 million in 2026. Of this, approximately $2.5 million and $22.7 million was recognized during the quarter and six months ended July 3, 2026, respectively, with the remaining amount expected to be recognized during the remainder of 2026.

Of the aggregate expenses relating to these actions, the Company paid approximately $18.6 million to approximately 600 terminated employees and had approximately $4.1 million accrued as of July 3, 2026.

Asset Impairment

The Company recorded impairment charges of $16.3 million and $163.3 million during the quarter and six months ended July 3, 2026, respectively, related to previous investments in manufacturing equipment at certain manufacturing facilities
pursuant to held-for-sale accounting guidance due to the assets no longer being needed to meet anticipated long-term customer demand. Of the $163.3 million of asset impairment charges, $80.6 million and $69.1 million were for assets held in South Korea and the Czech Republic, respectively. During the respective quarters in 2026, it was determined that the assets identified by the Company met all criteria to be classified as assets held-for-sale with the expectation that these assets would be disposed of within 12 months from the end of the quarter. The impairment charges were determined as the difference between the carrying value of these long-lived assets and their estimated fair values, less estimated costs to sell such assets. Fair values were determined primarily by using unobservable inputs such as estimated sales prices based on available market prices, underlying equipment condition and market demand for similar equipment, inputs categorized as Level 3 within the fair value hierarchy. The Company utilized a third-party valuation specialist to assist in the determination of assets held-for-sale. Fair value was estimated primarily using market and income approaches, including third-party appraisals where available. Key unobservable inputs included expected sales proceeds, estimated equipment condition, and discount adjustments for certain specialized tooling.

Additional impairment charges for manufacturing equipment may be incurred in future periods pursuant to the timing of meeting the necessary criteria for being classified as held-for-sale.

Other

Other charges amounted to $22.4 million and $184.5 million for the quarter and six months ended July 3, 2026, respectively. The charges for the quarter ended July 3, 2026 primarily relate to contract termination costs and other facility exit activities associated with the restructuring programs. Of the $184.5 million for the six months ended July 3, 2026, $81.7 million and $54.8 million related to the accelerated depreciation and amortization of one lease in each of the Czech Republic and the United States, respectively, that were abandoned in connection with the 2025 and 2026 Manufacturing Realignment Programs. The identified assets were fully depreciated and amortized as of April 3, 2026.

The Company also recorded $13.4 million of restructuring-related charges for the quarter ended July 3, 2026 within Cost of revenue in the Consolidated Statement of Operations.

The Company continues to evaluate for potential operating improvements and efficiencies.