During the first quarter of fiscal 2025, the Company initiated a headcount reduction and facility closure and consolidation plan intended to optimize its cost structure as the Company accelerated its transition from 150mm to 200mm silicon carbide devices (the "2025 Restructuring Plan"). The 2025 Restructuring Plan resulted in a cumulative total headcount reduction of approximately 28%. The Company's 150mm device fabrication facility in North Carolina has ceased production in the second quarter of fiscal 2026. The Company expects to incur additional costs over the next three months in association with the 2025 Restructuring Plan, specifically the wind-down of the 150mm device fabrication facility in Durham, North Carolina.

The Company expects to incur approximately $460 million of total restructuring and related costs, including approximately $75 million of involuntary and voluntary severance costs, $125 million of other closure-related cash costs, and approximately $260 million of charges related to long-lived assets and other non-cash costs, including accelerated depreciation and impairments upon abandonment or disposal of machinery and equipment.

A summary of the charges recognized in the consolidated statements of operations through the third quarter of fiscal 2026 and fiscal 2025, respectively, resulting from these restructuring activities is shown below:


	Successor	Predecessor
(in millions of U.S. Dollars)	Three months ended March 29, 2026	Three months ended March 30, 2025
Accelerated depreciation	$—	$4.5
Inventory write-down/scrap	—	—
Other closure-related costs	6.2	12.3
Total cost of revenue, net	$6.2	$16.8

Impairments on abandoned assets	$1.7	$30.7
Severance(1)	(0.2)	7.0
Accelerated depreciation (2)	—	(2.0)
Contract termination costs	—	—
Other closure-related costs	0.7	5.0
Other operating expense(3)	$2.2	$40.7
Total	$8.4	$57.5


	Successor	Predecessor
(in millions of U.S. Dollars)	Period from September 30, 2025 to March 29, 2026	Period from June 30, 2025 to September 29, 2025	Nine months ended March 30, 2025
Accelerated depreciation	$—	$5.6	$27.9
Inventory write-down/scrap	9.1	2.5	—
Other closure-related costs	12.1	10.0	54.6
Total cost of revenue, net	$21.2	$18.1	$82.5

Impairments on abandoned assets	$1.8	$0.1	$155.2
Severance(1)	0.4	0.1	58.5
Accelerated depreciation (2)	—	—	10.8
Contract termination costs	—	2.3	—
Other closure-related costs	1.6	1.2	25.7
Other operating expense(3)	$3.8	$3.7	$250.2
Total	$25.0	$21.8	$332.7

A summary of the balance sheet activity related to these restructuring activities recognized in accounts payable and accrued expenses in the unaudited consolidated balance sheet as of March 29, 2026 follows:


	Predecessor			Successor
(in millions of U.S. Dollars)	As of June 29, 2025	Charges	Usage	March 29, 2026
Employee severance and benefit costs(1)	$25.2	$0.5	($23.3)	$2.4
Contract termination liability	5.5	2.3	(3.3)	4.5
Total	$30.7	$2.8	($26.6)	$6.9

(1)Employee severance and benefit costs includes the early exit program activity

During the second quarter of fiscal 2026, the Company implemented and substantially completed a headcount reduction. The costs related to this initiative, primarily severance, were recorded in the second quarter of fiscal 2026. No further charges are expected.

A summary of the charges recognized in the consolidated statements of operations through the third quarter of fiscal 2026 resulting from these restructuring activities is shown below:


	Successor
(in millions of U.S. Dollars)	Three months ended March 29, 2026	Period from September 30, 2025 to March 29, 2026
Severance	(0.5)	7.5
Other operating expenses(1)	($0.5)	$7.5


	Predecessor			Successor
(in millions of U.S. Dollars)	As of June 29, 2025	Charges	Usage	March 29, 2026
Employee severance and benefit costs	$—	$7.5	($5.9)	$1.6
Total	$—	$7.5	($5.9)	$1.6