Restructuring Activities and Other Inventory-Related Charges

12 Months Ended

Dec. 31, 2025

Restructuring and Related Activities [Abstract]

Restructuring Activities and Other Inventory-Related Charges

In July 2023, the Board of Directors (the “Board”) 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 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 in 2023 and 2024.

The Company recorded pre-tax restructuring charges of $4.1 million, $46.9 million and $32.2 million during the years ended December 31, 2025, 2024 and 2023, respectively, related to the Restructuring Plan. The Restructuring Plan was completed during the second quarter of 2025. The Company does not expect to incur further significant charges related to the Restructuring Plan. As of December 31, 2025, the total pre-tax restructuring activity incurred related to the Restructuring Plan and other inventory-related charges is $83.3 million, of which $59.7 million related to other inventory-related charges.

The following table summarizes the charges related to restructuring activities and other inventory-related charges by type of cost for the periods presented within the consolidated statements of comprehensive income or loss:


	Year Ended December 31, 2025
	Severance and Employee-Related Costs			Facility and Other Exit Costs		Total
	(Amounts in thousands)
Cost of goods sold	$	217		$	2,250	$	2,467
Research and development		(69	)		867		798
Selling, general and administrative		49			821		870
	$	197		$	3,938	$	4,135


	Year Ended December 31, 2024
	Severance and Employee-Related Costs		Inventory Write-Off		Accelerated Depreciation		Facility and Other Exit Costs			Total
	(Amounts in thousands)
Cost of goods sold	$	876	$	36,082	$	19	$	7,051		$	44,028
Research and development		449		—		—		—			449
Selling, general and administrative		1,604		—		—		1,088			2,692
Other income (expense), net		—		—		—		(234	)		(234	)
	$	2,929	$	36,082	$	19	$	7,905		$	46,935


	Year Ended December 31, 2023
	Severance and Employee-Related Costs		Inventory Write-Off		Accelerated Depreciation		Facility and Other Exit Costs		Total
	(Amounts in thousands)
Cost of goods sold	$	2,077	$	23,588	$	3,788	$	933	$	30,386
Research and development		116		—		—		-		116
Selling, general and administrative		1,532		—		28		138		1,698
	$	3,725	$	23,588	$	3,816	$	1,071	$	32,200

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. These exit activities initiated in 2024 were completed in the second quarter of 2025.

As of December 31, 2025, there was no restructuring liability remaining within the consolidated balance sheet. Activity related to the Restructuring Plan for the year ended December 31, 2025 was as follows:


	Restructuring Liability December 31, 2024		Restructuring Costs		Amounts Paid in 2025			Non-cash Restructuring Items			Restructuring Liability December 31, 2025
	(Amounts in thousands)
Severance & employee-related costs	$	516	$	197	$	(395	)	$	(318	)	$	—
Facility and other exit costs		—		3,938		(505	)		(3,433	)		—
Total	$	516	$	4,135	$	(900	)	$	(3,751	)	$	—