XML 50 R32.htm IDEA: XBRL DOCUMENT v3.25.4
Restructuring Costs
 12 Months Ended
Dec. 31, 2025
Restructuring and Related Activities [Abstract]  
Restructuring Costs Restructuring Costs
Voluntary Bridge to Retirement
During the second quarter of 2025, the Company initiated a VBR program to reduce operating costs and bridge certain long-tenured eligible employees to retirement. As part of this program, eligible employees were offered severance in the form of salary and benefit continuation.
The activity related to the VBR program was as follows:
(in thousands)December 31, 2025
Balance at beginning of period$— 
Provision13,687 
Payments(3,832)
Balance at end of period$9,855 
The provision for costs associated with the VBR program was included in selling, general and administrative on the consolidated statement of operations. The total costs associated with the VBR program was $13.7 million. There are no further material costs expected to be incurred in relation to the VBR program. Payments are expected to continue through the first half of 2027.
The VBR program liabilities recognized on the consolidated balance sheet were as follows:
(in thousands)December 31, 2025
Accrued expenses and other liabilities$9,033 
Other noncurrent liabilities822 
Lionscore
During the first quarter of 2024, Lionscore approved a plan to permanently close certain production lines at its FDL factory in Fuzhou, China and involuntarily separate certain direct and indirect manufacturing employees, as footwear production volume was shifted to a third-party supplier in Vietnam affiliated with the Company's Lionscore joint venture partner. The remaining direct and indirect manufacturing employees at the FDL factory continued to service the remaining production lines. During the fourth quarter of 2024, Lionscore approved an additional plan to permanently cease manufacturing at the FDL factory, including all remaining production lines, in the first quarter of 2025 and to shift the remaining footwear production volume to the aforementioned third-party supplier in Vietnam. As a result, Lionscore involuntarily separated substantially all of the remaining employees of the FDL factory during the first quarter of 2025.
The activity related to these plans was as follows:
December 31,
(in thousands)20252024
Balance at beginning of period$12,431 $— 
Provision— 18,000 
Payments(5,439)(5,569)
Deconsolidation of VIE (Note 8)
(6,992)— 
Balance at end of period$— $12,431 

The provision for involuntary employee termination costs associated with these restructuring plans was included in selling, general and administrative on the consolidated statement of operations. The total employee termination costs associated with these restructuring plans were $18.0 million. There are no further costs expected to be incurred in relation to these restructuring plans. The liabilities for involuntary employee termination costs associated with these restructuring plans were included within accrued expenses and other liabilities on the consolidated balance sheet as of December 31, 2024. See Note 8 for further information.