XML 35 R17.htm IDEA: XBRL DOCUMENT

Restructuring, Integration, and Other

12 Months Ended

Dec. 31, 2024

Restructuring, Integration, and Other

Restructuring, Integration, and Other

9. Restructuring, Integration, and Other

The following table presents the components of the restructuring, integration, and other charges for the years ended December 31:


(thousands)		2024			2023			2022
Restructuring, integration and related costs
Operating Expense Efficiency Plan costs (a)		$	10,279		$	—		$	—
Other plans			3,848			8,877			6,994
Other expenses
Operating expense reduction costs not related to restructuring initiatives (b)			84,510			19,077			(370)
Increases to environmental remediation liabilities (c)			756			23,336			2,544
Early lease termination costs			6,814			29,400			3,162
Consulting costs (d)			25,306			—			—
Other charges			11,404			3,226			1,411
		$	142,917		$	83,916		$	13,741

(a)	See details related to the Operating Expense Efficiency Plan discussed below.

(b)	These costs are primarily related to the termination of personnel. As of December 31, 2024, the accrued liabilities related to these costs totaled $6.6 million and substantially all accrued amounts are expected to be spent in cash within one year.

(c)	Refer to Note 15 for further discussion of environmental liabilities.

(d)	Consulting costs are related to operating expense reduction costs not related to the restructuring initiative.

Operating Expense Efficiency Plan

On October 31, 2024, in response to evolving business needs and as part of an initiative to optimize operating expenses, the company announced a multi-year restructuring plan (the “Operating Expense Efficiency Plan” or “the Plan”). The Plan is designed to improve operational efficiency through the following measures: (i) reorganizing and consolidating certain areas of the company’s operations to centralize functions and streamline resources, with a focus on more cost-efficient regions; (ii) enhancing warehouse and logistics operations; (iii) investing in information technology to support automation and process improvements; (iv) consolidating the company’s global real estate footprint; (v) reducing third-party spending; and (vi) winding down certain non-core businesses that are not aligned with the company’s strategic objectives. The company expects to substantially complete the Plan by the end of fiscal year 2026, subject to, among other things, local legal and consultation requirements.

Under the Plan, the company expects to incur pre-tax restructuring charges of approximately $185.0 million, consisting of approximately $110.0 million of employee severance and other personnel cash expenditures; approximately $50.0 million of non-cash asset impairments, accelerated depreciation and inventory write-downs related to the wind-down of certain business operations; and approximately $25.0 million of other related cash expenditures. As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, restructuring, integration, and related costs are included in the corporate line item for management and segment reporting as they are not attributable to the individual reportable segments.

The following table presents the costs related to the Operating Expense Efficiency Plan:


(thousands)		Income Statement line			Year Ended December 31, 2024			Total Cost Incurred to Date
Employee severance and benefit costs			Restructuring, integration, and other		$	1,348		$	1,348
Inventory write-downs			Cost of sales			50,344			50,344
Asset impairments			Restructuring, integration, and other			1,416			1,416
Other costs (a)			Restructuring, integration, and other			7,515			7,515
					$	60,623		$	60,623

(a)	Other costs consist primarily of consulting and other professional fees and lease terminations.

The following table presents the activity in the restructuring and integration accruals related to the Operating Expense Efficiency Plan:


(thousands)		Employee severance and benefit costs			Inventory write-downs and asset impairments			Other costs			Total
Balance at December 31, 2023		$	-		$	-		$	-		$	-
Restructuring related charges			1,348			51,760			7,515			60,623
Asset write-offs and other non-cash activity			-			(51,760)			(177)			(51,937)
Cash payments			(964)			-			(7,136)			(8,100)
Balance at December 31, 2024		$	384		$	-		$	202		$	586

Substantially all amounts accrued at December 31, 2024 related to the Operating Expense Efficiency Plan are expected to be paid in cash within one year.