RESTRUCTURING AND OTHER CHARGES

3 Months Ended

Apr. 03, 2026

Restructuring and Related Activities [Abstract]

Restructuring and other charges comprise the following (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Restructuring charges	$	607	$	664
Acquisition and integration costs	1,442		4,742
Other general expenses	723		(1)
Total restructuring and other charges	$	2,772	$	5,405

Restructuring programs

Operational excellence

The Company’s operational excellence initiatives mainly consist of costs associated with executing on its sales force, manufacturing, business process and performance excellence operational strategic imperatives. These projects focus on changing the Company’s organizational structure to match product line growth strategies and customer needs, transitioning its manufacturing process into a competitive advantage and standardizing and optimizing its business processes.

Strategic reorganization and alignment

The Company’s strategic reorganization and alignment initiatives primarily include those that align resources with market conditions and the Company’s strategic direction in order to enhance the profitability of its portfolio of products.

Manufacturing alignment to support growth

The Company’s manufacturing alignment to support growth initiatives are designed to reduce costs, improve operating efficiencies or increase capacity to accommodate growth, which may involve relocation or consolidation of manufacturing operations.

The following table comprises restructuring and restructuring-related charges (gains) by classification in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Restructuring charges:
Restructuring and other charges	$	607	$	664
Restructuring-related expenses(a):
Cost of sales	1,002		401
Selling, general and administrative	85		43
Research, development and engineering	154		(6)
Total restructuring and restructuring-related charges	$	1,848	$	1,102

__________

(a) Restructuring-related expenses primarily include retention bonuses, consulting expenses, professional fees and equipment relocation costs.

(8.) RESTRUCTURING AND OTHER CHARGES (Continued)

The following table summarizes the activity for restructuring reserves (in thousands):


	Operational excellence		Strategic reorganization and alignment		Manufacturing alignment to support growth		Total
December 31, 2025	$	122	$	10	$	27	$	159
Charges incurred, net of reversals	391		—		216		607
Non-cash charges incurred (included above)	(214)		—		—		(214)
Cash payments	(134)		(4)		(219)		(357)

April 3, 2026	$	165	$	6	$	24	$	195

Acquisition and integration costs

Acquisition and integration costs primarily consist of professional fees directly related to completed and contemplated business acquisitions and costs to integrate the systems, processes and organizations acquired. During the three months ended April 3, 2026, acquisition and integration costs included $0.7 million related to an investment in a convertible debt instrument. See Note 13, “Financial Instruments and Fair Value Measurements,” for additional information related to the convertible debt instrument.

Acquisition and integration costs comprise the following (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Acquisition costs	$	973	$	2,844
Integration costs	469		1,898
Acquisition and integration costs	$	1,442	$	4,742

Other general expenses

During the three months ended April 3, 2026 and March 28, 2025, the Company recorded expenses related to other initiatives not described above, which primarily include gains and losses in connection with the disposal of property, plant and equipment.