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Restructuring and impairment charges | 3 Months Ended
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Mar. 29, 2015
Restructuring and Related Activities [Abstract] |
Restructuring and impairment charges | Restructuring and impairment charges 2015 Restructuring Plans During the first quarter 2015, the Company committed to programs associated with the reorganization of certain of its businesses as discussed in Note 14 and the consolidation of certain facilities in North America. The Company estimates that it will record pre-tax charges of $6 million to $7 million related to these programs, which represent employee termination benefits, contract termination costs and facility closure and other exit costs and will result in future cash outlays. For the three months ended March 29, 2015, the Company recorded charges of $4.2 million related to these programs. As of March 29, 2015, the Company has a reserve of $4.1 million related to these plans. 2014 Manufacturing Footprint Realignment Plan On April 28, 2014, the Board of Directors approved a restructuring plan (the “2014 Manufacturing Footprint Realignment Plan”) involving the consolidation of operations and a related reduction in workforce at certain of the Company’s facilities, and the relocation of manufacturing operations from certain higher-cost locations to existing lower-cost locations. These actions commenced in the quarter ended June 29, 2014 and are expected to be substantially completed by the end of 2017. The Company estimates that it will incur aggregate pre-tax charges in connection with these restructuring activities of approximately $37 million to $44 million, of which an estimated $26 million to $31 million are expected to result in future cash outlays. Most of these charges are expected to be incurred prior to the end of 2016. The following table provides a summary of the Company's current cost estimates by major type of expense associated with the 2014 Manufacturing Footprint Realignment Plan:
Type of expense | Total estimated amount expected to be incurred
Termination benefits | $11 million to $13 million
Facility closure and other exit costs | $2 million to $3 million
Accelerated depreciation charges | $10 million to $11 million
Other | $14 million to $17 million
| $37 million to $44 million
The Company recorded expenses of $2.3 million for the three months ended March 29, 2015 related to the 2014 Manufacturing Footprint Realignment Plan. Of this amount, $0.2 million was recorded as restructuring expense for the three months ended March 29, 2015, and $2.1 million related to accelerated depreciation and certain other costs resulting from the plan and was included in cost of goods sold. The Company incurred net aggregate restructuring and impairment charges over the term of this program of $9.4 million. Additionally, the Company incurred net aggregate accelerated depreciation and certain other costs, which were included in cost of sales, over the term of this program of $7.1 million. As of March 29, 2015, the Company has a restructuring reserve of $8.8 million in connection with this plan, all of which relates to termination benefits. As the 2014 Manufacturing Footprint Realignment Plan progresses, management will reevaluate the estimated expenses set forth above, and may revise its estimates, as appropriate, consistent with generally accepted accounting principles. 2014 European Restructuring Plan On February 27, 2014, the Company committed to a restructuring plan (the “2014 European Restructuring Plan”), which impacts certain administrative functions in Europe and involves the consolidation of operations and a related reduction in workforce at certain of the Company’s European facilities. The Company recorded no minal charges for the three months ended March 29, 2015 with respect to this program. The Company incurred net aggregate restructuring and impairment charges over the term of this program of $7.8 million. As of March 29, 2015, the Company had a reserve of $0.4 million in connection with the 2014 European Restructuring Plan. The Company expects to complete this plan in 2015. Other 2014 Restructuring Programs In June 2014, the Company initiated programs to consolidate locations in Australia and terminate certain distributor agreements in an effort to reduce costs. As a result of these actions, the Company expects to incur aggregate restructuring and impairment charges over the term of these restructuring programs of approximately $4 million, of which, $3.6 million was incurred through March 29, 2015. These programs include costs related to termination benefits, contract termination costs and other exit costs. As of March 29, 2015, the Company had a reserve of $0.9 million in connection with these programs. The Company expects to complete the programs in 2015. LMA Restructuring Program In connection with the acquisition of substantially all of the assets of LMA International N.V. (the “LMA business”) in 2012, the Company commenced a program (the "LMA Restructuring Program") related to the integration of the LMA business and the Company’s other businesses. The program focuses on the closure of the LMA business’ corporate functions and the consolidation of manufacturing, sales, marketing, and distribution functions in North America, Europe and Asia. As of March 29, 2015, the Company incurred net aggregate restructuring and impairment charges over the term of this program of $11.3 million. The Company expects future restructuring expenses associated with this program, if any, to be nominal. As of March 29, 2015, the Company had a reserve of $0.1 million associated with this program. The Company expects to complete the program in 2015. 2013 Restructuring Charges In 2013, the Company initiated restructuring programs to consolidate administrative and manufacturing facilities in North America and warehouse facilities in Europe and terminate certain European distributor agreements in an effort to reduce costs. As a result of these actions, the Company has incurred an aggregate of $11.1 million in restructuring and impairment charges over the term of these restructuring programs. These programs entail costs related to termination benefits, contract termination costs and charges related to post-closing obligations associated with its acquired businesses. Future restructuring expenses associated with these programs are expected to be nominal. As of March 29, 2015, the Company has a reserve of $0.8 million in connection with these programs. The Company expects to complete the programs in 2015. 2012 Restructuring Program In 2012, the Company identified opportunities to improve its supply chain strategy by consolidating its three North American warehouses into one centralized warehouse; and lower costs and improve operating efficiencies through the termination of certain distributor agreements in Europe, the closure of certain North American facilities and workforce reductions. As of March 29, 2015, the Company has incurred net aggregate restructuring and impairment charges of $6.4 million over the term of this program, and expect future restructuring expenses associated with the program, if any, to be nominal. As of March 29, 2015, the Company has a reserve of $0.5 million in connection with the program. The Company expects to complete this program in 2015. Impairment Charges There were no impairment charges recorded for the three months ended March 29, 2015 or March 30, 2014. The restructuring and impairment charges recognized for the three months ended March 29, 2015 and March 30, 2014 consisted of the following:
Three Months Ended March 29, 2015 |  |  |  |  |  |  |  |  |
(in thousands) | Termination Benefits |  | Facility Closure Costs |  | Contract Termination Costs |  | Other Exit Costs |  | Total
2015 Restructuring programs | $ | 3,550 |  |  | $ | 67 |  |  | $ | 621 |  |  | $ | — |  |  | $ | 4,238 |
2014 Manufacturing footprint realignment plan | 137 |  |  | 22 |  |  | — |  |  | 4 |  |  | 163 |
2014 European restructuring plan | 9 |  |  | — |  |  | — |  |  | 17 |  |  | 26 |
Other 2014 restructuring programs | — |  |  | — |  |  | 49 |  |  | — |  |  | 49 |
LMA restructuring program | — |  |  | — |  |  | (31 | ) |  | — |  |  | (31 | )
2013 Restructuring programs | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |
Total restructuring and impairment charges | $ | 3,699 |  |  | $ | 89 |  |  | $ | 639 |  |  | $ | 21 |  |  | $ | 4,448 |
Three Months Ended March 30, 2014 |  |  |  |  |  |  |  |  |
(in thousands) | Termination Benefits |  | Facility Closure Costs |  | Contract Termination Costs |  | Other Exit Costs |  | Total
LMA restructuring program | $ | — |  |  | $ | 42 |  |  | $ | (472 | ) |  | $ | — |  |  | $ | (430 | )
2014 European restructuring program | 8,318 |  |  | — |  |  | — |  |  | — |  |  | 8,318 |
2013 Restructuring programs | 168 |  |  | — |  |  | — |  |  | — |  |  | 168 |
2012 Restructuring program | (610 | ) |  | 320 |  |  | — |  |  | — |  |  | (290 | )
2011 Restructuring program | — |  |  | 14 |  |  | — |  |  | — |  |  | 14 |
Total restructuring and impairment charges | $ | 7,876 |  |  | $ | 376 |  |  | $ | (472 | ) |  | $ | — |  |  | $ | 7,780 |
Termination benefits include estimated employee retention, severance and benefit payments for terminated employees. Facility closure costs include general operating costs incurred subsequent to production shut-down as well as equipment relocation and other associated costs. Contract termination costs include costs associated with terminating existing leases and distributor agreements. Other costs include legal, outplacement and employee relocation costs and other employee-related costs. Restructuring and impairment charges by reportable segment for the three months ended March 29, 2015 and March 30, 2014 are set forth in the following table:
| Three Months Ended
| March 29, 2015 |  | March 30, 2014
| (Dollars in thousands)
Restructuring and impairment charges |  |  |
Vascular North America | $ | 830 |  |  | $ | 14 |
Anesthesia/Respiratory North America | (40 | ) |  | 27 |
Surgical North America | 23 |  |  | — |
EMEA | (32 | ) |  | 7,889 |
Asia | — |  |  | 78 |
OEM | — |  |  | — |
All other | 3,667 |  |  | (228 | )
Total restructuring and impairment charges | $ | 4,448 |  |  | $ | 7,780 |

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- Definition The entire disclosure of costs incurred for restructuring including, but not limited to, exit and disposal activities, remediation, implementation, integration, asset impairment, and charges against earnings from the write-down of assets. + References No definition available. + Details
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