•During the three-and-six months ended June 30, 2026, we recorded restructuring charges of $0.9 million and $3.1 million, respectively, related to severance and facility exit activities associated with the integration of the DLR and OpSec businesses. As of June 30, 2026, cumulative restructuring charges associated with this initiative were $15.3 million. Total program costs are expected to be approximately $25 million.

•For the three-and-six months ended June 30, 2026, we recorded severance costs of $2.5 million and $3.1 million to better align CPI’s cost structure with current economic conditions. As of June 30, 2026, cumulative restructuring charges associated with this initiative were $7.8 million. We continue to evaluate and align CPI’s cost structure with existing economic conditions which could result in further actions in 2026.

2024 Restructuring - In the first and fourth quarters of 2024, in response to challenging industry conditions, we initiated workforce reductions in CPI, incurring $10.4 million of cumulative severance charges, net through June 30, 2026. We have substantially completed the restructuring program and do not expect to incur material additional costs.

We recorded restructuring charges which are reflected in the Unaudited Condensed Consolidated Statements of Operations, as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2026		2025		2026		2025
Security and Authentication Technologies	$	0.9	$	6.1	$	3.1	$	6.1
Detection and Traceability Technologies	2.5		1.2		3.4		1.2
Total restructuring charges	$	3.4	$	7.3	$	6.5	$	7.3

The following table summarizes the accrual balances related to these restructuring charges by program:


(in millions)	2025 Restructuring		2024 Restructuring		Total
Severance:
Balance as of December 31, 20251	$	7.2	$	0.8	$	8.0
Expense2	4.3		0.3		4.6

Utilization	(7.2)		(1.0)		(8.2)
Balance as of June 30, 20261	$	4.3	$	0.1	$	4.4



1 Included within Accrued Liabilities in the Unaudited Condensed Consolidated Balance Sheets.
2 Included within “Restructuring charges” in the Unaudited Condensed Consolidated Statements of Operations.