RESTRUCTURING

3 Months Ended

Mar. 31, 2024

RESTRUCTURING

RESTRUCTURING

NOTE 15. RESTRUCTURING

Starting in 2023, the Company began incurring expenses to facilitate long-term sustainable growth through cost reduction actions, consisting of employee reductions, facility rationalization and contract termination costs. During the three months ended March 31, 2024 and 2023, the Company incurred $370 and $0, respectively, of restructuring charges related to these actions. The Company has incurred $3,593 of cumulative restructuring charges since the commencement of restructuring actions in 2023. The Company accrues for restructuring costs when they are probable and reasonably estimable. These costs include severance costs, exit costs, and other restructuring costs and are included in Restructuring charges in the condensed consolidated statements of comprehensive income. Severance costs primarily consist of severance benefits through payroll continuation, conditional separation costs and employer tax liabilities, while exit costs primarily consist

of lease exit and contract termination costs. Other costs consist primarily of costs related to the discontinuance of certain product lines and are distinguishable and directly attributable to the Company’s restructuring initiative and not a result of external market factors associated with the ongoing business. We estimate that we will continue to incur restructuring costs related to employee-related costs and facility exit costs during the year 2024; however, the Company cannot estimate the total amount expected to be incurred as cost reduction actions continue to be evaluated. The Company anticipates completing these restructuring activities in 2024.

The following table summarizes the restructuring charges, payments and the remaining liabilities related to restructuring costs at March 31, 2024, which are included within accrued liabilities in the condensed consolidated balance sheets:

	Outdoor		Adventure		Corporate		Total
Balance at December 31, 2023		1,246		-		-		1,246
Charges to expense:
Employee termination benefits	$	212	$	146	$	-	$	358
Exit costs		12		-		-		12
Total restructuring charges	$	224	$	146	$	-	$	370
Cash payments and non-cash charges:
Cash payments		(815)		(146)		-		(961)
Asset impairments		(12)		-		-		(12)
Balance at March 31, 2024	$	643	$	-	$	-	$	643