14. Restructuring Activities

In 2021, the Company initiated a global transformation program to optimize global processes for future growth, or the Transformation Program. The Transformation Program involved the investment in certain new technologies and the realignment of infrastructure and the locations of certain functions to better support distributors and customers. The Company incurred total pre-tax expenses of approximately $92.5 million from inception through the end of the Transformation Program, which was completed as of December 31, 2024. During the years ended December 31, 2024 and 2023, the Company incurred $13.3 million and $54.2 million, respectively, of pre-tax expenses which were recognized in general and administrative expenses within its consolidated statements of income.

During the first quarter of 2024, the Company initiated an organizational redesign project, or the Restructuring Program, to streamline its organizational structure to make it more efficient and effective and to allow the Company’s management team to work more closely with the markets, distributors, and customers. The Company incurred total pre-tax expenses of approximately $76.1 million through the end of the Restructuring Program, which was completed as of December 31, 2025. During the years ended December 31, 2025 and 2024, the Company incurred $7.0 million and $69.1 million, respectively, of pre-tax expenses which were recognized in general and administrative expenses within its consolidated statement of income.

During April 2025, the Company initiated a process and organizational redesign project of its global technology infrastructure, or the Technology Realignment Program, to better align with new technologies, enhance operational efficiency, and optimize support of business goals and processes. The Company has incurred total pre-tax expenses of approximately $9.1 million through December 31, 2025, all of which was recognized in general and administrative expenses within its consolidated statements of income during the year ended December 31, 2025. The Company expects to incur total pre-tax expenses of approximately $11 million based on actual expenses incurred to date and expected future expenses. Since the Technology Realignment Program is still ongoing and is expected to be completed in 2026, these estimated amounts are preliminary and based on the Company’s estimates and actual results could differ from such estimates.