In the third quarter of 2025, our Board of Directors approved the Consolidation Restructuring Plan (the "Plan"), which was subsequently amended in the fourth quarter of 2025. The Plan includes activities and plans to align our geographic footprint with our long-term strategic plan. The amended restructuring plan expanded the scope of our initial plan to consolidate our footprint at additional sites. Key components of the Plan as of June 26, 2026 are as follows:

As of June 26, 2026, total expected inventory impairment costs under the Plan are $19.8 million, all of which were recognized during 2025. These costs were recognized within cost of sales on our consolidated statement of operations. As of June 26, 2026, we have disposed of $12.3 million of impaired inventory. The remaining inventory impairment costs of $7.5 million are accrued as a contra-asset valuation account within inventories on our consolidated balance sheet as of June 26, 2026.

As of June 26, 2026, total expected fixed asset charges under the Plan are approximately $4.5 million, of which $1.3 million were recognized during the second quarter of 2026 and $3.2 million were recognized in prior periods. These costs were recognized within selling, general, and administrative expenses on our consolidated statement of operations.

As of June 26, 2026, total expected operating lease ROU asset impairment charges under the Plan are approximately $1.8 million, of which $0.9 million were recognized in the second quarter of 2026 and $0.9 million were recognized in prior periods. These charges were recognized within selling, general, and administrative expenses on our consolidated statement of operations.

As of June 26, 2026, total expected severance charges under the Plan are approximately $1.7 million, all of which were recognized during 2025. Of this amount recognized, $0.9 million and $0.8 million were recognized within cost of sales and selling, general, and administrative expenses, respectively, in 2025 on our consolidated statement of operations. As of June 26, 2026, we made severance payments of $1.7 million.

Other costs include other direct and incremental costs incurred as result of the Plan, which primarily includes legal expenses, facility exit costs, and fixed asset transportation costs. As of June 26, 2026, total expected other costs under the Plan are approximately $2.1 million, of which $0.4 million were recognized during the second quarter of 2026 and $1.7 million were recognized in prior periods. These costs were recognized within selling, general, and administrative expenses on our consolidated statement of operations.