v3.26.1
Restructuring, Acquisition, and Related Costs
6 Months Ended
Jul. 03, 2026
Restructuring and Related Activities [Abstract]  
Restructuring, Acquisition, and Related Costs

15. Restructuring, Acquisition, and Related Costs

The following table summarizes restructuring, acquisition, and related costs in the accompanying consolidated statements of operations (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

July 3,

 

 

June 27,

 

 

July 3,

 

 

June 27,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

2025 restructuring

$

3,675

 

 

$

6,836

 

 

$

4,717

 

 

$

6,836

 

2024 restructuring

 

997

 

 

 

3,385

 

 

 

1,480

 

 

 

3,975

 

2020 restructuring

 

 

 

 

 

 

 

 

 

 

(3,595

)

Total restructuring charges

 

4,672

 

 

 

10,221

 

 

 

6,197

 

 

 

7,216

 

Acquisition and related charges

 

7,827

 

 

 

2,351

 

 

 

8,907

 

 

 

2,901

 

Total restructuring, acquisition, and related costs

$

12,499

 

 

$

12,572

 

 

$

15,104

 

 

$

10,117

 

2025 Restructuring

The Company initiated the 2025 restructuring program in the second quarter of 2025 in order to streamline operations and align with its long-term goals. The 2025 restructuring program includes measures to regionalize manufacturing operations to better serve its customers, expedite the closure of certain sites, streamline management structures, and implement cost-saving strategies in areas anticipated to have a minimal long-term impact on the Company's overall business performance. As part of the 2025 restructuring program, the Company announced the closure of five manufacturing sites. During the six months ended July 3, 2026, the Company recorded $4.7 million in severance, facility related and other charges in connection with the 2025 restructuring program. As of July 3, 2026, the Company had incurred cumulative costs of $18.7 million related to this restructuring program. The Company anticipates substantially completing the 2025 restructuring program by the first quarter of 2027. Total restructuring charges related to this program are expected to be approximately $30.0 million.

The following table summarizes restructuring costs associated with the 2025 restructuring program by reportable segment (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

July 3,

 

 

June 27,

 

 

July 3,

 

 

June 27,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Automation Enabling Technologies

$

1,984

 

 

$

940

 

 

$

2,570

 

 

$

940

 

Medical Solutions

 

402

 

 

 

4,202

 

 

 

680

 

 

 

4,202

 

Unallocated

 

1,289

 

 

 

1,694

 

 

 

1,467

 

 

 

1,694

 

Total

$

3,675

 

 

$

6,836

 

 

$

4,717

 

 

$

6,836

 

 

2024 Restructuring

As a result of the Company’s acquisitions and ongoing integration activities, the Company initiated the 2024 restructuring program in the first quarter of 2024 in order to reduce operating complexity. During the six months ended July 3, 2026, the Company recorded $1.5 million in severance, facility related and other charges in connection with the 2024 restructuring program. As of July 3, 2026, the Company had incurred cumulative costs of $17.7 million related to this restructuring program. The Company anticipates substantially completing the 2024 restructuring program by the end of 2026 and expects to incur additional restructuring charges of $1.0 million to $2.0 million related to the 2024 restructuring program.

The following table summarizes restructuring costs associated with the 2024 restructuring program by reportable segment (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

July 3,

 

 

June 27,

 

 

July 3,

 

 

June 27,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Automation Enabling Technologies

$

36

 

 

$

445

 

 

$

13

 

 

$

931

 

Medical Solutions

 

961

 

 

 

2,930

 

 

 

1,467

 

 

 

3,012

 

Unallocated

 

 

 

 

10

 

 

 

 

 

 

32

 

Total

$

997

 

 

$

3,385

 

 

$

1,480

 

 

$

3,975

 

2020 Restructuring

As a result of the Company’s ongoing evaluations and efforts to reduce its operating costs, while improving efficiency and effectiveness, the Company initiated the 2020 restructuring program in the third quarter of 2020. This program was focused on reducing operating complexity in the Company, including reducing infrastructure costs and streamlining the Company’s operating model to better serve its customers. In addition, the program was focused on cost reduction actions to improve gross margins for the overall company. As of July 3, 2026, the Company had incurred cumulative costs of $13.1 million related to the 2020 restructuring program. The 2020 restructuring program activities were completed in the fourth quarter of 2023. In January 2025, the Company sold a facility from the 2020 restructuring program and recorded a $3.6 million gain in the Company’s Automation Enabling Technologies segment.

Roll-forward of Accrued Expenses Related to Restructuring

The following table summarizes the accrual activities, by component, related to the Company’s restructuring plans recorded in the accompanying consolidated balance sheets (in thousands):

 

Total

 

 

Employee Related

 

 

Facility Related

 

 

Other

 

Balance at December 31, 2025

$

10,582

 

 

$

9,889

 

 

$

693

 

 

$

 

Restructuring charges

 

6,197

 

 

 

4,002

 

 

 

1,299

 

 

 

896

 

Cash payments

 

(9,562

)

 

 

(8,342

)

 

 

(408

)

 

 

(812

)

Non-cash write-offs and other adjustments(1)

 

(1,742

)

 

 

(652

)

 

 

(1,070

)

 

 

(20

)

Balance at July 3, 2026

$

5,475

 

 

$

4,897

 

 

$

514

 

 

$

64

 

(1) Non-cash charges primarily related to accelerated depreciation on a facility.

Acquisition and Related Charges

Acquisition costs in connection with business combinations, including advisor, legal, valuation, and other professional or consulting fees, totaled $7.8 million and $8.9 million for the three and six months ended July 3, 2026, and $2.4 million and $2.9 million for the three and six months ended June 27, 2025. The majority of acquisition and related costs for the three and six months ended July 3, 2026 and the three and six months ended June 27, 2025 were included in unallocated costs.