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RESTRUCTURING AND OTHER CHARGES
 6 Months Ended
Jul. 03, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES
Restructuring and other charges comprise the following (in thousands):
Three Months EndedSix Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Restructuring charges$1,841 $637 $2,448 $1,301 
Acquisition and integration costs
173 2,007 1,615 6,749 
Other general expenses7,423 7 8,146 6 
Total restructuring and other charges
$9,437 $2,651 $12,209 $8,056 
Restructuring programs
Operational excellence
The Company’s operational excellence initiatives mainly consist of costs associated with executing on its sales force, manufacturing, business process and performance excellence operational strategic imperatives. These projects focus on changing the Company’s organizational structure to match product line growth strategies and customer needs, transitioning its manufacturing process into a competitive advantage and standardizing and optimizing its business processes.
Strategic reorganization and alignment
The Company’s strategic reorganization and alignment initiatives primarily include those that align resources with market conditions and the Company’s strategic direction in order to enhance the profitability of its portfolio of products.
Manufacturing alignment to support growth
The Company’s manufacturing alignment to support growth initiatives are designed to reduce costs, improve operating efficiencies or increase capacity to accommodate growth, which may involve relocation or consolidation of manufacturing operations.
The following table comprises restructuring and restructuring-related charges (gains) by classification in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (in thousands):
Three Months EndedSix Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Restructuring charges:
Restructuring and other charges
$1,841 $637 $2,448 $1,301 
Restructuring-related expenses(a):
Cost of sales1,753 1,439 2,755 1,840 
Selling, general and administrative513 499 598 542 
Research, development and engineering290 — 444 (6)
Total restructuring and restructuring-related charges
$4,397 $2,575 $6,245 $3,677 
__________
(a) Restructuring-related expenses primarily include retention bonuses, consulting expenses, professional fees and equipment relocation costs.
(8.)     RESTRUCTURING AND OTHER CHARGES (Continued)
The following table summarizes the activity for restructuring reserves (in thousands):
Operational
excellence		Strategic reorganization and alignmentManufacturing alignment to support growthTotal
December 31, 2025$122 $10 $27 $159 
Charges incurred, net of reversals2,016 5 427 2,448 
Non-cash charges incurred (included above)(344)— — (344)
Cash payments(312)(15)(450)(777)
July 3, 2026$1,482 $— $4 $1,486 
Acquisition and integration costs
Acquisition and integration costs primarily consist of professional fees directly related to completed and contemplated business acquisitions and costs to integrate the systems, processes and organizations acquired. During the three and six months ended July 3, 2026, acquisition and integration costs included a benefit of $1.2 million to adjust the fair value of acquisition-related contingent consideration liabilities. In addition, acquisition and integration costs included $0.7 million recorded during the first quarter of 2026 related to an investment in a convertible debt instrument. See Note 13, “Financial Instruments and Fair Value Measurements,” for additional information related to the fair value measurement of the contingent consideration and the convertible debt instrument.
Acquisition and integration costs comprise the following (in thousands):
Three Months EndedSix Months Ended
July 3,
2026		June 27,
2025		July 3,
2026		June 27,
2025
Acquisition costs$(642)$548 $331 $3,392 
Integration costs815 1,459 1,284 3,357 
Acquisition and integration costs$173 $2,007 $1,615 $6,749 
Fair value adjustments included in acquisition costs$(1,179)$(309)$(1,179)$(309)
Other general expenses
During the six months ended July 3, 2026 and June 27, 2025, the Company recorded expenses related to other initiatives not described above, which primarily include gains and losses in connection with the disposal of property, plant and equipment.
During the three months ended July 3, 2026, the Company recognized fixed asset impairment charges of $5.9 million related to certain manufacturing equipment. The impairment was triggered by revised expectations and cash flow projections during the quarter regarding the future use of these assets, which indicated that their carrying values were no longer recoverable. The impairment charge was recorded within Restructuring and other charges in the Condensed Consolidated Statement of Operations. The fair value of the impaired assets was determined using both an income-based and a market-based valuation approach, based on a combination of company-specific projected cash flows, market participant assumptions, estimated proceeds from disposition, and other relevant market information, all of which are Level 3 unobservable inputs within the fair value hierarchy. As a result, the carrying value of the affected assets were written down to their respective fair values.