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Restructuring charges | 6 Months Ended
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Jul. 02, 2017
Restructuring and Related Activities [Abstract] |
Restructuring charges | Note 4 — Restructuring charges The following tables provide information regarding restructuring charges recognized by the Company for the three and six months ended July 2, 2017 and June 26, 2016:
Three Months Ended July 2, 2017 |  |  |  |  |  |  |  |  |
| Termination Benefits |  | Facility Closure Costs |  | Contract Termination Costs |  | Other Exit Costs |  | Total
| (Dollars in thousands)
2017 Vascular Solutions integration program | $ | 370 |  |  | $ | — |  |  | $ | — |  |  | $ | 34 |  |  | $ | 404 |
2017 EMEA restructuring program | (584 | ) |  | — |  |  | — |  |  | — |  |  | (584 | )
2016 Footprint realignment plan | 286 |  |  | 10 |  |  | (4 | ) |  | 99 |  |  | 391 |
2014 Footprint realignment plan | (121 | ) |  | 14 |  |  | — |  |  | (7 | ) |  | (114 | )
Other restructuring programs (1) | 661 |  |  | 11 |  |  | 79 |  |  | 22 |  |  | 773 |
Total restructuring charges | $ | 612 |  |  | $ | 35 |  |  | $ | 75 |  |  | $ | 148 |  |  | $ | 870 |
Three Months Ended June 26, 2016 |  |  |  |  |  |  |  |  |
| Termination Benefits |  | Facility Closure Costs |  | Contract Termination Costs |  | Other Exit Costs |  | Total
| (Dollars in thousands)
2016 Footprint realignment plan | $ | (279 | ) |  | $ | — |  |  | $ | — |  |  | $ | 286 |  |  | $ | 7 |
2015 Restructuring programs | (442 | ) |  | 55 |  |  | 115 |  |  | 25 |  |  | (247 | )
2014 Footprint realignment plan | 112 |  |  | — |  |  | — |  |  | 9 |  |  | 121 |
Total restructuring charges | $ | (609 | ) |  | $ | 55 |  |  | $ | 115 |  |  | $ | 320 |  |  | $ | (119 | )
Six Months Ended July 2, 2017 |  |  |  |  |  |  |  |  |
| Termination Benefits |  | Facility Closure Costs |  | Contract Termination Costs |  | Other Exit Costs |  | Total
| (Dollars in thousands)
2017 Vascular Solutions integration program | $ | 4,853 |  |  | $ | — |  |  | $ | — |  |  | $ | 34 |  |  | $ | 4,887 |
2017 EMEA restructuring program | 6,536 |  |  | — |  |  | — |  |  | — |  |  | 6,536 |
2016 Footprint realignment plan | 825 |  |  | 22 |  |  | (75 | ) |  | 129 |  |  | 901 |
2014 Footprint realignment plan | 182 |  |  | 14 |  |  | — |  |  | 1 |  |  | 197 |
Other restructuring programs (1) | 965 |  |  | 58 |  |  | 209 |  |  | 62 |  |  | 1,294 |
Total restructuring charges | $ | 13,361 |  |  | $ | 94 |  |  | $ | 134 |  |  | $ | 226 |  |  | $ | 13,815 |
Six Months Ended June 26, 2016 |  |  |  |  |  |  |  |  |
| Termination Benefits |  | Facility Closure Costs |  | Contract Termination Costs |  | Other Exit Costs |  | Total
| (Dollars in thousands)
2016 Footprint realignment plan | $ | 10,068 |  |  | $ | — |  |  | $ | — |  |  | $ | 286 |  |  | $ | 10,354 |
2015 Restructuring programs | (399 | ) |  | 178 |  |  | 93 |  |  | 118 |  |  | (10 | )
2014 Footprint realignment plan | (426 | ) |  | — |  |  | — |  |  | 11 |  |  | (415 | )
Other restructuring programs (2) | — |  |  | — |  |  | (86 | ) |  | 6 |  |  | (80 | )
Total restructuring charges | $ | 9,243 |  |  | $ | 178 |  |  | $ | 7 |  |  | 421 |  |  | $ | 9,849 |
(1) | Other restructuring programs include the 2017 Pyng Integration program, the 2016 Other Restructuring programs , the 2015 Restructuring programs, and the 2014 European Restructuring plan. The Company committed to the 2017 Pyng Integration program, which relates to the integration of Pyng into Teleflex, during the second quarter 2017. For a description of the 2015 Restructuring programs, see Note 4 to the Company’s consolidated financial statements included in its annual report on Form 10-K for the year ended December 31, 2016.
(2) Other restructuring programs includes the 2014 European Restructuring Plan, the Other 2014 restructuring programs, the 2013 Restructuring programs and the LMA restructuring program. For a description of these plans, see Note 4 to the Company’s consolidated financial statements included in its annual report on Form 10-K for the year ended December 31, 2016. 2017 Vascular Solutions Integration Program During the first quarter 2017, the Company committed to a restructuring program related to the integration of Vascular Solutions into Teleflex. The Company initiated the program in the first quarter 2017 and expects the program to be substantially completed by the end of the second quarter 2018. The Company estimates that it will record aggregate pre-tax restructuring charges of $6.0 million to $7.5 million related to this program, of which $4.5 million to $5.3 million will constitute termination benefits, while $1.5 million to $2.2 million will relate to other exit costs, including employee relocation and outplacement costs. Additionally, the Company expects to incur $2.5 million to $3.0 million of restructuring related charges consisting primarily of retention bonuses offered to certain employees expected to remain with the Company after completion of the program. All of these charges will result in future cash outlays. 2017 EMEA Restructuring Program During the first quarter 2017, the Company committed to a restructuring program to centralize certain administrative functions in Europe. The program commenced in the second quarter 2017 and is expected to be substantially completed by the end of 2018. The Company estimates that it will record aggregate pre-tax restructuring charges of $7.1 million to $8.5 million related to this program, almost all of which constitute termination benefits, and all of which will result in future cash outlays. 2016 Other Restructuring Programs During 2016, the Company committed to programs designed to improve operating efficiencies and reduce costs. The programs involve the consolidation of certain global administrative functions and manufacturing operations. The programs commenced in the second half of 2016 and are expected to be substantially complete by the end of the first quarter 2018. The Company estimates that it will record aggregate pre-tax charges of $3.8 million to $4.7 million related to these programs, substantially all of which constitute termination benefits that will result in future cash outlays. Additionally, the Company expects to incur approximately $1.5 million of accelerated depreciation and other costs directly related to these programs and anticipates these costs will be recognized in cost of goods sold, of which approximately $1.0 million is expected to result in future outlays. As of July 2, 2017, the Company has a restructuring reserve of $1.2 million related to these programs. 2016 Footprint Realignment Plan In 2016, the Company initiated a restructuring plan (the “2016 footprint realignment plan") designed to reduce costs, improve operating efficiencies and enhance the Company’s long term competitive position. The plan involves the relocation of certain manufacturing operations, the relocation and outsourcing of certain distribution operations and a related workforce reduction at certain of the Company's facilities. These actions commenced in the first quarter of 2016 and are expected to be substantially completed by the end of 2018. The Company estimates that it will incur aggregate pre-tax restructuring and restructuring related charges in connection with the 2016 footprint realignment plan of between approximately $34 million to $44 million, of which an estimated $27 million to $31 million are expected to result in future cash outlays. Most of these charges, and the related cash outlays, are expected to be made prior to the end of 2018. In addition to the restructuring charges shown in the tables above, the Company recorded restructuring related charges of $2.0 million and $4.1 million for the three and six months ended July 2, 2017, respectively, and $1.8 million and $2.4 million for the three and six months ended June 26, 2016, respectively, related to the 2016 footprint realignment plan. The majority of charges in both periods constituted accelerated depreciation and other costs, principally as a result of the transfer of manufacturing operations to the new locations. As of July 2, 2017, the Company has incurred net aggregate restructuring charges related to the 2016 footprint realignment plan of $13.4 million. Additionally, as of July 2, 2017, the Company has incurred net aggregate accelerated depreciation and certain other costs, principally as a result of the transfer of manufacturing operations to new locations, of $10.5 million. These costs primarily were included in cost of goods sold. As of July 2, 2017, the Company has a restructuring reserve of $8.7 million related to this plan, the majority of which relates to termination benefits. 2014 Footprint Realignment Plan In 2014, the Company initiated a restructuring plan (“the 2014 footprint realignment plan”) involving the consolidation of operations and a related reduction in workforce at certain facilities, and the relocation of manufacturing operations from certain higher-cost locations to existing lower-cost locations. These actions commenced in the second quarter 2014 and are expected to be substantially completed by the end of the first half of 2020.The Company estimates that it will incur aggregate pre-tax restructuring and restructuring related charges in connection with the 2014 footprint realignment plan of approximately $43 million to $48 million, of which an estimated $33 million to $38 million are expected to result in future cash outlays. The Company expects to incur $24 million to $30 million in aggregate capital expenditures under the plan. In addition to the restructuring charges set forth in the tables above, the Company recorded restructuring related charges of $0.5 million and $2.1 million for the three and six months ended July 2, 2017, respectively, and $2.3 million and $4.4 million for the three and six months ended June 26, 2016, respectively, related to the 2014 footprint realignment plan. The majority of charges in both periods constituted accelerated depreciation and other costs principally resulting from the transfer of manufacturing operations to new locations. As of July 2, 2017, the Company has incurred net aggregate restructuring charges related to the 2014 footprint realignment plan of $11.3 million. Additionally, as of July 2, 2017, the Company has incurred net aggregate accelerated depreciation and certain other costs of $25.0 million, principally resulting from the transfer of manufacturing operations from the existing locations to the new locations in connection with the plan. These costs primarily were included in cost of goods sold. As of July 2, 2017, the Company has a restructuring reserve of $4.5 million in connection with the plan, all of which relates to termination benefits. For additional information regarding the Company's restructuring programs, see Note 4 to the Company's consolidated financial statements included in its annual report on Form 10-K for the year ended December 31, 2016. Restructuring charges by reportable operating segment for the three and six months ended July 2, 2017 and June 26, 2016 are set forth in the following table:
| Three Months Ended |  | Six Months Ended
| July 2, 2017 |  | June 26, 2016 |  | July 2, 2017 |  | June 26, 2016
| (Dollars in thousands) |  | (Dollars in thousands)
Restructuring charges |  |  |  |  |  |  |
Vascular North America | $ | 361 |  |  | $ | 351 |  |  | $ | 1,109 |  |  | $ | 4,514 |
Anesthesia North America | 564 |  |  | 364 |  |  | 811 |  |  | 2,239 |
Surgical North America | — |  |  | — |  |  | — |  |  | (20 | )
EMEA | (365 | ) |  | (949 | ) |  | 7,135 |  |  | 2,923 |
Asia | — |  |  | (2 | ) |  | — |  |  | — |
OEM | — |  |  | (1 | ) |  | — |  |  | 4 |
All other | 310 |  |  | 118 |  |  | 4,760 |  |  | 189 |
Total restructuring charges | $ | 870 |  |  | $ | (119 | ) |  | $ | 13,815 |  |  | $ | 9,849 |

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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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