During the third quarter of fiscal 2025, the Company announced a strategic organizational restructuring within its North American Towable segment to realign certain brands formerly produced by Heartland Recreation Vehicles to Jayco to optimize its enterprise structure. The restructuring plan included workforce reductions, brand rationalization, and the closure, sale or internal transfer of certain facilities. Costs associated with this restructuring as well as other ancillary initiatives are included in the financial statements for fiscal years 2026 and 2025 as summarized below in the North American Towable RVs table.

During the third and fourth quarter of fiscal 2026, the Company undertook certain restructuring initiatives within its North American Motorized segment to reduce its operational footprint and improve labor efficiencies. These actions included workforce reductions and the closure of a facility. Costs associated with this initiative are included in the financial statements for fiscal year 2026 as summarized below in the North American Motorized RVs table.

During fiscal 2026 and 2025, the Company undertook various restructuring initiatives within its European segment across multiple operating entities to reduce its operational footprint and improve labor efficiencies. These actions included workforce reductions, brand rationalization, and the closure of certain facilities. Costs associated with these initiatives are included in the financial statements for fiscal years 2026 and 2025 as summarized below in the European RVs table.

During fiscal 2026 and 2025, the Company restructured various departments and management levels within Other & Corporate to reduce costs and streamline certain functions. These actions included workforce reductions and the elimination of certain management levels. Costs associated with these departmental and managerial restructurings are included in the financial statements for fiscal years 2026 and 2025 as summarized below in the Other & Corporate table.

Any changes to the Company's estimates or additional charges associated with the initiatives and restructurings described above that are in process as of July 31, 2026, which are not expected to be material, will be reflected in the Company's results of operations in future periods, as appropriate.

We anticipate additional restructuring costs will be incurred and recognized in one or more of the Company’s reportable segments as actions associated with additional initiatives are implemented and/or approved in the future.


North American Towable RVs	Fiscal Years Ended July 31,
	2026		2025
Employee severance and related benefits	$	7,512	$	3,449
Long-lived asset costs	8,382		3,276
Inventory valuation expenses	1,515		6,134
Other restructuring expenses	11,938		3,071
Total	$	29,347	$	15,930


North American Motorized RVs	Fiscal Years Ended July 31,
	2026		2025
Employee severance and related benefits	$	656	$	—
Long-lived asset costs	3,234		—


Total	$	3,890	$	—


European RVs	Fiscal Years Ended July 31,
	2026		2025
Employee severance and related benefits	$	18,160	$	6,625
Long-lived asset costs	4,248		686
Inventory valuation expenses	2,020		3,647
Other restructuring expenses	774		—
Total	$	25,202	$	10,958

In addition to the expenses outlined in the tables above, the Company realized gains on the sale of fixed assets related to restructuring initiatives. For the years ended July 31, 2026 and July 31, 2025, the North American Towable segment realized gains from the sale of fixed assets of $36,942 and $24,068, respectively, which primarily related to the restructuring activities described above. For the years ended July 31, 2026 and July 31, 2025, the realized gains and losses from the sale of fixed assets relating to restructuring activities in the North American Motorized, European and Other segments were not material.

Restructuring costs appear on the Consolidated Statements of Income as follows: Employee severance and related benefits are located within Selling, general and administrative expenses; Long-lived asset costs, which include asset impairment and accelerated depreciation costs, are located within Other income (expense), net and Cost of products sold, respectively; and inventory valuation expenses are located within Cost of products sold. Other restructuring expenses primarily includes building costs, promotional activities, and other expenses associated with the conclusion of business operations. These expenses are located within Net Sales, Cost of products sold and Selling, general and administrative expenses on the Consolidated Statements of Income.

The following table presents the changes in restructuring liabilities for employee severance and related benefits, located within Compensation and related items on the Consolidated Balance Sheets:


	Fiscal Years Ended July 31,
	2026		2025
Beginning balance	$	9,665	$	180
Additions	26,778		25,309
Payments	(29,826)		(15,824)

Ending balance	$	6,617	$	9,665