Note 4 – Restructuring

The Company continuously monitors market developments, industry trends and changing customer needs and in response, has taken and may continue to undertake restructuring actions, as necessary, to execute management’s strategy, streamline operations and optimize the Company’s cost structure. Restructuring actions may include the realignment of existing manufacturing footprint, facility closures or similar actions, either in the normal course of business or pursuant to significant restructuring programs.

These actions may result in employees receiving voluntary or involuntary employee termination benefits, which are mainly statutory requirements or other contractual agreements. Voluntary termination benefits are accrued when an employee accepts the related offer. Involuntary termination benefits are accrued upon the commitment to a termination plan and when the benefit arrangement is communicated to affected employees, or when liabilities are determined to be probable and estimable, depending on the existence of a substantive plan for separation or termination.

2026 Global Production Plan

In August 2026, the Company committed to a global restructuring plan to implement a standard organizational structure in all production sites (“2026 Global Production Plan”). The 2026 Global Production Plan is expected to result in structural cost reductions impacting the Company’s global workforce.

The Company expects to incur cash restructuring costs of between $3,000 and $3,500 for employee separation costs. The actions under the 2026 Global Production Plan are expected to be substantially completed by the end of 2026.

During the three and nine months ended September 30, 2026, the Company recognized restructuring expense of $2,122 for employee separation costs.

2026 Organizational Realignment Plan

In February 2026, the Company committed to a restructuring plan to realign its operating model and organizational structure to deliver on its key financial and operational priorities (“2026 Organizational Realignment Plan”). The 2026 Organizational Realignment Plan is expected to result in structural cost reductions impacting the Company’s global salaried workforce.

The Company expects to incur cash restructuring costs of between $9,000 and $9,500 for employee separation costs. The actions under the 2026 Organizational Realignment Plan are expected to be substantially completed by the end of 2026.

During the three and nine months ended September 30, 2026, the Company recognized restructuring expense of $17 and $9,030, respectively, for employee separation costs.

2025 Manufacturing Footprint Plan

In July 2025, the Company committed to a restructuring plan to further optimize the Company’s manufacturing footprint by realigning its global manufacturing capacity (“2025 Manufacturing Footprint Plan”). As a result, the Company will relocate certain manufacturing activities between existing locations.

The Company expects to incur cash restructuring costs of between $3,000 and $4,000 for employee separation and retention costs and $1,000 of other transition costs primarily for machinery and equipment move and set up costs. Additionally, we expect to incur capital expenditures of between $1,000 and $2,000.

During the three and nine months ended September 30, 2026, the Company recognized restructuring expense of $0. During the three and nine months ended September 30, 2025, the Company recognized restructuring expense of $2,190, for employee separation costs.

Since the inception of this program, the Company has recorded $2,190 of restructuring expenses. The actions under the 2025 Manufacturing Footprint Plan are expected to be substantially completed by the end of 2027.

2025 EMEA Plan

In February 2025, the Company committed to a restructuring plan to further optimize the Company’s manufacturing footprint by realigning its manufacturing capacity in Europe (“2025 EMEA Plan”). As a result, the Company will close its facility in Plzeň, Czech Republic and relocate the manufacturing activities into other existing facilities within the region.

The Company expects to incur cash restructuring costs of between $4,000 and $6,000 for employee separation and retention costs and between $2,000 and $3,000 of other transition costs primarily for machinery and equipment move and set up costs. Additionally, we expect to incur capital expenditures of between $1,000 and $2,000.

During the three and nine months ended September 30, 2026, the Company recognized restructuring expense of $274 and $984, respectively, for employee separation costs and $420 and $1,459, respectively, for other costs. During the three and nine months ended September 30, 2025, the Company recognized restructuring expense of $413 and $3,186, respectively, for employee separation costs and $480 and $813, respectively, for other costs.

Since the inception of this program, the Company has recorded $7,225 of restructuring expenses. The remaining actions under the 2025 EMEA Plan are expected to be substantially completed by the end of 2026.

2025 Asia Plan

In February 2025, the Company committed to a restructuring plan to further optimize the Company’s manufacturing footprint by realigning its manufacturing capacity in Asia (“2025 Asia Plan”). As a result, the Company relocated certain manufacturing activities from its facility in Shanghai, China to its facility in Tianjin, China.

During the three and nine months ended September 30, 2026, the Company recognized restructuring expense of $0 and $69, respectively, for employee separation costs and $0 and $327, respectively, for other costs. During the three and nine months ended September 30, 2025, the Company recognized restructuring expense of $125 and $2,077, respectively, for employee separation costs and $273 and $390, respectively, for other costs.

Since the inception of this program, the Company has recorded $3,492 of restructuring expenses. The actions under the 2025 Asia Plan are substantially complete.

Other Restructuring Actions

The Company has undertaken several discrete restructuring actions in an effort to optimize its cost structure.

During the three and nine months ended September 30, 2026, the Company recognized $10 and $68, for employee separation costs related to structural cost reductions impacting the Company’s global salaried workforce. During the three and nine months ended September 30, 2025, the Company recognized $(2) and $1,214, for employee separation costs related to structural cost reductions impacting the Company’s global salaried workforce.

During the three and nine months ended September 30, 2026, the Company’s Automotive segment recognized $1,995 and $3,434, respectively, for other costs, primarily related to the relocation of certain manufacturing to best cost locations. During the three and nine months ended September 30, 2025, the Company’s Automotive segment recognized $0 and $(262), respectively, for employee separation costs and $507 and $1,000, respectively, for other costs, primarily related to the relocation of certain manufacturing to best cost locations.

Restructuring Expenses, Net By Reporting Segment

Restructuring Liability

Restructuring liabilities are classified as other current liabilities in the consolidated condensed balance sheets. The following table summarizes restructuring activity for all restructuring initiatives for the nine months ended September 30, 2026: