Restructuring

9 Months Ended

Sep. 26, 2025

Restructuring and Related Activities [Abstract]


Note 12 - Restructuring

In the third quarter of 2025, our Board of Directors approved the Consolidation Restructuring Plan (the "Plan"). The Plan includes activities and plans to align our footprint in North America with our long-term strategic plan. Key components of the Plan as of September 26, 2025 are as follows:

Impairment of inventory

As of September 26, 2025, total expected inventory impairment costs under the Plan are $16.7 million, of which $16.7 million was recognized during the three months ended September 26, 2025 in Cost of sales in the consolidated statement of operations and as a contra-asset valuation account within Inventories on the consolidated balance sheet as of September 26, 2025.

Fixed asset charges

As of September 26, 2025, total expected fixed asset charges under the Plan are approximately $4.7 million, of which $0.5 million was recognized during the three months ended September 26, 2025 in Selling, general, and administrative expenses in the consolidated statement of operations. We expect to incur approximately an additional $4.2 million of fixed asset charges under the Plan.

Impairment of operating right-of-use assets

As of September 26, 2025, total expected operating ROU asset impairment costs under the Plan are approximately $3.9 million, of which $0.4 million was recognized during the three months ended September 26, 2025 in Selling, general, and administrative expenses in the consolidated statement of operations. We expect to incur approximately an additional $3.5 million of lease ROU asset impairment costs under the Plan.

We expect the Plan to be substantially complete by the end of 2026, which will likely result in additional expenses during the periods after September 26, 2025. We may incur additional expenses due to unanticipated events or changes in Plan scope.