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RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

6 Months Ended

Jun. 30, 2024

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

NOTE 11. RESTRUCTURING, ASSET IMPAIRMENTS, AND OTHER CHARGES

Details of restructuring, asset impairments, and other charges are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Restructuring	$	84	$	3,154	$	53	$	4,197
Other charges		541		—		817		—
Total restructuring, asset impairments, and other charges	$	625	$	3,154	$	870	$	4,197

Restructuring

We have two restructuring plans in process:

2023 Plan

In 2023, we approved a plan intended to optimize and further consolidate our manufacturing operations and functional support groups as well as a general reduction-in-force to align our expenses to revenue levels (the “2023 Plan”). We expect additional charges of $1.0 million to $2.0 million to be incurred in future periods through the second quarter of 2025. We anticipate the 2023 Plan will be substantially completed by the end of 2024, with the final activities concluding in the second quarter of 2025.

On July 29, 2024, we approved actions in furtherance of our previously announced manufacturing consolidation initiatives intended to optimize our manufacturing network and cost structure. In connection with these actions, we estimate we will incur $25.0 million to $30.0 million primarily associated with employment-related charges for, among other things, one-time cash payments for severance, benefits expenses, payroll taxes, facility exit costs, and other ancillary costs. We expect to recognize the majority of these charges during calendar year 2024 with any remaining charges to be recognized in the first half of 2025.

2022 Plan

This plan was approved to further improve our operating efficiencies and drive the realization of synergies from our business combinations by consolidating our operations, optimizing our factory footprint, including moving certain production into our higher volume factories, reducing redundancies, and lowering our cost structure. We anticipate the 2022 Plan will be substantially completed by the end of 2024.

Our restructuring liabilities are included in other accrued expenses in our Consolidated Balance Sheets. Changes in restructuring liabilities were as follows:


	2023 Plan		2022 Plan		Other		Total
December 31, 2023	$	14,224	$	2,930	$	188	$	17,342
Costs incurred and charged to expense		(4)		57		—		53
Costs paid or otherwise settled		(6,994)		(2,987)		(188)		(10,169)
June 30, 2024	$	7,226	$	—	$	—	$	7,226

Charges related to our restructuring plans are as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Severance and related charges	$	84	$	3,154	$	53	$	4,197


	Cumulative Cost Through
	June 30, 2024
	2023 Plan		2022 Plan		Total
Severance and related charges	$	17,099	$	14,044	$	31,143

Other Charges

Other charges relate to vacating and relocating facilities.