| Restructuring, Integration, and Other |
Note I – Restructuring, Integration, and Other The following table presents the components of the restructuring, integration, and other charges: | | | | | | | | | | | | | | | Quarter Ended | | Six Months Ended | | | July 4, | | June 28, | | July 4, | | June 28, | (thousands) | | 2026 | | 2025 | | 2026 | | 2025 | Restructuring, integration and related costs | | | | | | | | | | | | | Operating Expense Efficiency Plan costs (a) | | $ | 18,326 | | $ | 19,946 | | $ | 49,411 | | $ | 28,631 | Other plans | | | 2,962 | | | 582 | | | 5,053 | | | 1,883 | Other expenses | | | | | | | | | | | | | Operating expense reduction costs not related to restructuring initiatives (b) | | | (49) | | | (1,821) | | | 491 | | | 1,928 | Other charges | | | 2,900 | | | 3,212 | | | 5,848 | | | 6,790 | | | $ | 24,139 | | $ | 21,919 | | $ | 60,803 | | $ | 39,232 |
| (a) | See details related to the Operating Expense Efficiency Plan discussed below. |
| (b) | Primarily related to employee severance and benefit costs. As of July 4, 2026, the accrued liabilities related to these costs totaled $12.5 million and substantially all accrued amounts are expected to be spent in cash within two years. |
Operating Expense Efficiency Plan On October 31, 2024, in response to evolving business needs and as part of an initiative to optimize operating expenses, the company announced a multi-year restructuring plan (the “Operating Expense Efficiency Plan” or “the Plan”), which was substantially complete as of July 4, 2026. For more details on the Plan, refer to Part II, Item 8 - Note 9 “Restructuring, Integration and Other” in the company’s Annual Report on Form 10-K for the year ended December 31, 2025. The following table presents the costs related to the Operating Expense Efficiency Plan: | | | | | | | | | | | | | | | | | | | | | | Quarter Ended | | Six Months Ended | | Total Cost | | | | | July 4, | | June 28, | | July 4, | | June 28, | | Incurred to | (thousands) | | Income Statement Line | | 2026 | | 2025 | | 2026 | | 2025 | | Date | Employee severance and benefit costs | | Restructuring, integration, and other | | $ | 4,062 | | $ | 12,659 | | $ | 16,305 | | $ | 19,413 | | $ | 101,310 | Inventory (recoveries) write-downs | | Cost of sales | | | (2,970) | | | (2,172) | | | (5,218) | | | (4,639) | | | 34,860 | Business wind down costs (a) | | Restructuring, integration, and other | | | 14,264 | | | - | | | 22,830 | | | - | | | 27,475 | Other costs (b) | | Restructuring, integration, and other | | | - | | | 7,287 | | | 10,276 | | | 9,218 | | | 36,987 | | | | | $ | 15,356 | | $ | 17,774 | | $ | 44,193 | | $ | 23,992 | | $ | 200,632 |
| (a) | Business wind down costs consist primarily of CTA write-offs and asset impairments. |
| (b) | Other costs consist primarily of consulting and other professional fees and early lease termination fees. |
The following table presents the activity in the restructuring, integration, and other accruals related to the Operating Expense Efficiency Plan: | | | | | | | | | | | | | | | | (thousands) | | Employee Severance and Benefit Costs | | Inventory Recoveries | | Business Wind Down Costs | | Other Costs | | Total | Balance at December 31, 2025 | | $ | 51,247 | | $ | - | | $ | - | | $ | 5,227 | | $ | 56,474 | Restructuring related charges | | | 16,305 | | | (5,218) | | | 22,830 | | | 10,276 | | | 44,193 | Asset write-offs and other non-cash activity | | | - | | | - | | | (22,830) | | | - | | | (22,830) | Cash (payments) receipts | | | (34,626) | | | 5,218 | | | - | | | (15,294) | | | (44,702) | Foreign currency translations | | | (1,213) | | | - | | | - | | | (55) | | | (1,268) | Balance at July 4, 2026 | | $ | 31,713 | | $ | - | | $ | - | | $ | 154 | | $ | 31,867 |
Substantially all amounts accrued at July 4, 2026 related to the Operating Expense Efficiency Plan are expected to be paid in cash within two years.
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