During the fourth quarter of 2022, to further our ongoing efforts to improve operating efficiencies and reduce costs, we announced plans for a reduction in our sales force, and initiated plans to relocate certain product lines from our Independence, Kansas manufacturing facility and from our St. Thomas, Canada manufacturing facility to our manufacturing facilities in Reynosa, Mexico. In 2025, we extended the program for plans to relocate additional product lines from certain plants in the United States and Canada to our existing manufacturing facilities in Mexico. We anticipate that the Cost Reduction Initiative will be substantially complete by the end of 2026. Additional restructuring costs related to the initiative are expected to be immaterial. The total restructuring expenses recorded to date are $7.2 million.


		Workforce Reduction		Other Exit Costs	Total
Exit activity liability at December 31, 2025		$	206	—	$	206
Restructuring costs provided for during 2026	(a)	55		527	582
Cash payments		(222)		(527)	(749)
Exit activity liability at September 30, 2026		$	39	—	$	39

Restructuring activities are included within “sundry payables and accrued expenses” and “other accrued liabilities” on the consolidated balance sheet. We regularly evaluate productivity initiatives and may either extend existing restructuring programs or initiate new restructuring programs in the future.

In 2024, we offered a voluntary retirement incentive package of severance and other benefit enhancements to eligible employees in the United States and Canada and later expanded the program to include involuntary separations. This program is substantially complete with total restructuring expenses recorded to date of $7.8 million and additional restructuring costs are expected to be immaterial. During the nine months ended September 30, 2026 cash payments were $0.2 million and the exit activity liability at September 30, 2026 was $0.4 million.