During the fourth quarter of 2022, the Company initiated a restructuring program designed to optimize the assets, business processes, and information technology systems of the Company in relation to the Business Combination with Adtran Networks. The restructuring program included expenses specifically associated with achieving run-rate synergies as well as Business Efficiency Program expenses described below.

On November 6, 2023, due to the uncertainty around the current macroeconomic environment and its impact on customer spending levels, the Company’s management decided to implement a business efficiency program (“Business Efficiency Program”) targeting the reduction of ongoing operating expenses and focusing on capital efficiency inclusive of certain salary reductions, an early retirement program, a site consolidation plan to include lease impairments and the sale of owned real estate (including the sale of our headquarters), inventory write downs from product discontinuances, and the suspension of the quarterly dividend. The Business Efficiency Program expanded upon other recently implemented restructuring efforts and synergy costs following the Business Combination. For instance, on August 17, 2023, the Company’s management determined to discontinue its copper-based Digital Subscriber Line broadband access technology products and its fixed wireless access products in its Network Solutions segment. Furthermore, on September 29, 2023, the Company’s management decided to exit the "IoT" gateway market (indoor and outdoor), a subset of the broader IoT market (together with the other product discontinuations, the “Discontinuations”). On October 25, 2023, all employees were informed of certain personnel measures, which included the reduction of salary for select management, a reduction of approximately 5% of the workforce, an early retirement program and a hiring freeze. Additionally, on April 11, 2024, Management determined to close a facility in Greifswald, Germany which occurred in November 2024. As of December 31, 2024, the Company classified the Company's property, specifically the North and South Towers located on our Huntsville, Alabama campus, as assets held for sale, see Note 1 and Note 6 of this report for additional information. The Business Efficiency Program was substantially complete as of December 31, 2024.

During the years ended December 31, 2024 and 2023, we recognized $44.7 million and $25.1 of costs related to the Business Efficiency Program. The costs recognized during the year ended December 31, 2024, included total other renegotiated charges and inventory write-down of $8.6 million as a result of a strategy shift which included discontinuance of certain items in connection with the Business

Efficiency Program, of which, $4.1 million relates to inventory write-downs and $4.5 million relates to other charges, and are included in cost of revenue in the Consolidated Statements of Loss.

For the years ended December 31, 2023 and 2022, we recognized $21.5 million and $1.6 million of restructuring costs relating to the Business Combination under the multi-year integration program and synergy realization, respectively, that are included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Consolidated Statement of Loss.

A reconciliation of the beginning and ending restructuring liability, which is included in accrued wages and benefits and accrued expenses and other liabilities in the Consolidated Balance Sheets as of December 31, 2024 and 2023, is as follows:


(In thousands)	2024			2023
Balance at beginning of period	$	8,309		$	159
Plus: Amounts charged to cost and expense		40,545			22,241
Less: Amounts paid		(38,518	)		(14,091	)
Balance at end of period	$	10,336		$	8,309

Restructuring expenses included in the Consolidated Statements of Loss are for the years ended December 31, 2024, 2023 and 2022:


(In thousands)	2024		2023		2022
Network solutions - cost of revenue	$	3,693	$	2,910	$	8
Network solutions - inventory write-down		8,597		24,313		—
Services & support - cost of revenue		2,289		—		—
Cost of revenue	$	14,579	$	27,223	$	8
Selling, general and administrative expenses		9,128		11,603		117
Research and development expenses		20,973		7,728		1,504
Total restructuring expenses	$	44,680	$	46,554	$	1,629

The following table represents the components of restructuring expense by geographic area for the years ended December 31, 2024, 2023 and 2022:


(In thousands)	2024		2023		2022

United States	$	18,422	$	34,629	$	2
International		26,258		11,925		1,627
Total restructuring expenses	$	44,680	$	46,554	$	1,629