Restructuring

9 Months Ended

Oct. 03, 2025

Restructuring and Related Activities [Abstract]

In the third quarter of fiscal year 2025, our Board of Directors authorized, and we implemented, a corporate reorganization plan (the 2025 Plan) to reorganize our workforce and close our office located in King of Prussia, Pennsylvania. Restructuring expenses expected to be incurred under the 2025 Plan are primarily severance and employee-related costs. During the three and nine months ended September 30, 2025, we recognized $19.8 million in expenses associated with the 2025 Plan, which are presented in restructuring in the accompanying Condensed Consolidated Statements of Income. The total estimated restructuring costs are approximately $20.5 million. We incurred the majority of the charges related to the 2025 Plan during the third quarter of 2025 and expect to substantially complete the 2025 Plan by the end of the fiscal year 2025. The expected pre-tax charges are estimates and are subject to a number of assumptions and actual results may vary from the estimates provided.

The restructuring activities and balances as of and for the nine months ended September 30, 2025 and 2024 were as follows (in thousands):


			Nine Months Ended September 30, 2025
	Accrued at December 31, 2024		Initial Costs		Non-cash Charges		Cash Payments		Accrued at September 30, 2025(2)		Total Costs Incurred to Date		Total Expected Plan Costs
Severance and employee-related costs and other exit costs(1)	$	—	$	19,816	$	(395)	$	(2,798)	$	16,623	$	19,816	$	20,451
Other restructuring plans(3)	256		—		—		(256)		—		—		—
Total restructuring	$	256	$	19,816	$	(395)	$	(3,054)	$	16,623	$	19,816	$	20,451

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(1) Other exit costs will be expensed as incurred.

(2) As of September 30, 2025, substantially all restructuring liabilities have been recorded in accrued compensation and benefits in the accompanying Condensed Consolidated Balance Sheets.

(3) Consisted of severance and employee-related costs from the 2024 Plan, paid in the first quarter of 2025.

In the first quarter of fiscal year 2024, our Board of Directors authorized, and we implemented, a corporate restructuring plan (the 2024 Plan) to reduce our workforce and rebalance our cost structure in alignment with our strategic priorities. Restructuring expenses incurred under the 2024 Plan included: severance and employee-related costs; asset impairment; and contract termination and other exit costs. We incurred the majority of the charges related to the 2024 Plan during the first quarter of 2024 and substantially completed the 2024 Plan as of the end of the second quarter of 2024. During the three and nine months ended September 30, 2024, we recognized $0.1 million and $33.4 million, respectively, in

expenses associated with the 2024 Plan, which are presented in restructuring in the accompanying Condensed Consolidated Statements of Income.


			Nine Months Ended September 30, 2024
	Accrued at December 31, 2023		Initial Costs		Adj. to Costs(2)		Non-cash charges		Cash Payments		Accrued at September 30, 2024(3)		Total Costs Incurred to Date		Total Expected Plan Costs
Severance and employee-related costs	$	—	$	15,656	$	69	$	—	$	(15,469)	$	256	$	15,725	$	15,725
Contract termination and other exit costs(1)	—		5,119		(4)		—		(5,115)		—		5,115		5,201
Asset impairment	—		12,318		248		(12,566)		—		—		12,566		12,566
Total restructuring	$	—	$	33,093	$	313	$	(12,566)	$	(20,584)	$	256	$	33,406	$	33,492

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(1) Contract termination costs consist of accruals for costs to be incurred without future economic benefit, and other exit costs expensed as incurred.

(2) Adjustments to costs consist of changes in estimates whereby increases and decreases in costs were recorded to operating expenses in the period of adjustments.

(3) As of September 30, 2024, all restructuring liabilities have been recorded in accrued compensation and benefits in the accompanying Condensed Consolidated Balance Sheets.