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| RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES | NOTE 10. RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES Details of restructuring, asset impairments, and other charges are as follows:
Restructuring We have the following restructuring plans in process. The amounts incurred as a result of the approved actions are estimates, and actual results may differ, which could result in incremental restructuring charges in future periods. 2026 Plan In 2026, we reorganized our Global Sales, Marketing and Operations team to meet our current and future needs including geographic needs (the “2026 Plan”). We expect these activities to conclude in 2026 and do not expect to incur significant additional charges. 2025 Plan During the second quarter of 2025, we approved actions related to consolidating our research and development, sales, and administrative functions in connection with our manufacturing and footprint consolidation (the “2025 Plan”). We expect these actions to be substantially complete during 2027 and do not expect to incur significant additional charges. 2024 Plan In 2024, we approved actions in furtherance of our manufacturing consolidation initiatives intended to optimize our manufacturing footprint and cost structure, including the closure of our Zhongshan, China manufacturing facility (the “2024 Plan”). Manufacturing operations in Zhongshan ceased during the second quarter of 2025. Final closure activities are in progress and expected to conclude in 2026. During the first six months of 2026, we recognized expenses of $0.5 million related to these actions and may incur additional charges to complete the closure. 2023 Plan In 2023, we approved a plan intended to optimize and further consolidate our manufacturing operations and functional support groups as well as a general reduction-in-force to align our expenses to revenue levels (the “2023 Plan”). We expect final activities to conclude in the first quarter of 2027 and do not expect to incur significant additional charges. Changes in restructuring liabilities were as follows:
The above restructuring liability of $10.8 million is comprised of $6.4 million in other accrued expenses and $4.4 million in other long-term liabilities on our Consolidated Balance Sheets.
Asset Impairments During the three months ended June 30, 2026, we recorded a $0.5 million impairment charge in connection with vacating a facility. Other Charges Other charges relate to personnel transition costs and costs related to organizational restructuring activities of our legal entities. |
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