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Restructuring Activities and Other Inventory-Related Charges | 3 Months Ended
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Mar. 31, 2025
Restructuring and Related Activities [Abstract] |
Restructuring Activities and Other Inventory-Related Charges | 5. Restructuring Activities and Other Inventory-Related Charges In July 2023, the Board of Directors authorized the Company's management team to undertake restructuring activities to simplify and streamline our organization and strengthen the overall effectiveness of our operations. Since the initial streamlining and rebalancing efforts contemplated in July 2023, and with the introduction of new management in the second half of 2024, the Company continued to undertake further restructuring activities (collectively, the “Restructuring Plan”) which has included consolidating a portion of our manufacturing operations between certain U.S. locations, writing-off abandoned equipment with the rationalization of excess production line capacity and discontinuing the sale of certain product SKUs. In addition, the Company evaluated the net realizable value of finished goods and raw materials to meet rapidly changing demand during a challenging supply chain environment in the industry during 2023 and 2024. The Company recorded pre-tax restructuring activity of $2.0 million for the three months ended March 31, 2025 and $1.4 million for the three months ended March 31, 2024, related to the 2023 Restructuring Plan, which will be complete in the second quarter of 2025. As of March 31, 2025, the total pre-tax restructuring activity incurred related to the Restructuring Plan and other inventory-related charges is $81.1 million, of which $59.7 million related to other inventory-related charges. For more information regarding the other inventory related charges, see Note 6, “Restructuring Activities and Other Inventory-Related Charges” included in Part II, Item 8, “Financial Statements and Supplementary Data” to the Company’s Form 10-K. The following tables summarize the charges related to restructuring activities by type of cost for the periods presented on the Company’s condensed consolidated statements of comprehensive income (loss):
|  | Three Months Ended March 31, 2025 |
|  | Severance and Employee-Related Costs |  |  | Facility and Other Exit Costs |  |  | Total |
|  | (Amounts in thousands) |
Cost of goods sold |  | $ | 78 |  |  | $ | 536 |  |  | $ | 614 |
Research and development |  |  | (57 | ) |  |  | 867 |  |  |  | 810 |
Selling, general and administrative |  |  | (9 | ) |  |  | 558 |  |  |  | 549 |
|  | $ | 12 |  |  | $ | 1,961 |  |  | $ | 1,973 |
|  | Three Months Ended March 31, 2024 |
|  | Severance and Employee-Related Costs |  |  | Accelerated Depreciation |  |  | Facility and Other Exit Costs |  |  | Total |
|  | (Amounts in thousands) |
Cost of goods sold |  | $ | 482 |  |  | $ | 19 |  |  | $ | 58 |  |  | $ | 559 |
Research and development |  |  | 165 |  |  |  | — |  |  |  | — |  |  |  | 165 |
Selling, general and administrative |  |  | 699 |  |  |  | — |  |  |  | — |  |  |  | 699 |
|  | $ | 1,346 |  |  | $ | 19 |  |  | $ | 58 |  |  | $ | 1,423 |
Severance and employee-related costs under the Restructuring Plan are primarily associated with actual headcount reductions. Costs incurred include cash severance and non-cash severance, including other termination benefits. Severance and other termination benefit packages are based on established benefit arrangements or local statutory requirements and we recognized the contractual component of these benefits when payment was probable and could be reasonably estimated. The Company’s manufacturing strategy and footprint were reviewed as a part of our 2024 annual strategic planning and budget session. We continued executing these exit activities initiated in 2024 in the first quarter of 2025. The restructuring accrual is included in accrued liabilities in the condensed consolidated balance sheet as of March 31, 2025. Activity related to the Restructuring Plan for the three months ended March 31, 2025 was as follows (amounts in thousands):
|  | Restructuring Liability December 31, 2024 |  |  | Restructuring Costs |  |  | Amounts Paid in 2025 |  |  | Noncash Restructuring Items |  |  | Restructuring Liability March 31, 2025 |
Severance & employee-related costs |  | $ | 516 |  |  | $ | 12 |  |  | $ | (395 | ) |  | $ | (5 | ) |  | $ | 128 |
Facility and other exit costs |  |  | — |  |  |  | 1,961 |  |  |  | (208 | ) |  |  | (1,456 | ) |  |  | 297 |
Total |  | $ | 516 |  |  | $ | 1,973 |  |  | $ | (603 | ) |  | $ | (1,461 | ) |  | $ | 425 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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