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Restructuring charges and impairment charges | 9 Months Ended
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Sep. 30, 2018
Restructuring and Related Activities [Abstract] |
Restructuring charges and impairment charges | Note 5 — Restructuring and impairment charges (credits) The following tables provide information regarding restructuring and impairment charges (credits) recognized by the Company for the three and nine months ended September 30, 2018 and October 1, 2017:
Three Months Ended September 30, 2018 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
| (Dollars in thousands)
2018 Footprint realignment plan | $ | 1,119 |  |  | $ | 145 |  |  | $ | 1,264 |
Other restructuring programs (2) | 468 |  |  | 232 |  |  | 700 |
Restructuring charges | $ | 1,587 |  |  | $ | 377 |  |  | $ | 1,964 |
Asset impairment charges | — |  |  | 17,245 |  |  | 17,245 |
Restructuring and impairment charges | $ | 1,587 |  |  | $ | 17,622 |  |  | $ | 19,209 |
Three Months Ended October 1, 2017 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
| (Dollars in thousands)
Restructuring (credits) charges (3) | $ | (554 | ) |  | $ | 462 |  |  | $ | (92 | )
Nine Months Ended September 30, 2018 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
| (Dollars in thousands)
2018 Footprint realignment plan | $ | 53,463 |  |  | $ | 275 |  |  | $ | 53,738 |
2016 Footprint realignment plan | 2,379 |  |  | 417 |  |  | 2,796 |
Other restructuring programs (4) | 1,318 |  |  | 663 |  |  | 1,981 |
Restructuring charges | $ | 57,160 |  |  | $ | 1,355 |  |  | $ | 58,515 |
Asset impairment charges | — |  |  | 19,110 |  |  | 19,110 |
Restructuring and impairment charges | $ | 57,160 |  |  | $ | 20,465 |  |  | $ | 77,625 |
Nine Months Ended October 1, 2017 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
| (Dollars in thousands)
2017 Vascular Solutions integration program | $ | 4,534 |  |  | $ | 92 |  |  | $ | 4,626 |
2017 EMEA restructuring program | 5,822 |  |  | 84 |  |  | 5,906 |
2016 Footprint realignment plan | 1,099 |  |  | 233 |  |  | 1,332 |
Other restructuring programs (5) | 1,352 |  |  | 507 |  |  | 1,859 |
Restructuring charges | $ | 12,807 |  |  | $ | 916 |  |  | $ | 13,723 |
(1) | Other costs include facility closure, contract termination, and other exit costs.
(2) Other restructuring programs include the 2016 and 2014 Footprint realignment plans, the 2017 Vascular Solutions integration program, the 2017 EMEA restructuring program and the other 2016 restructuring programs.
(3) | Restructuring charges (credits) include activity related to the 2017 Vascular Solutions integration program, the 2017 EMEA restructuring program, the 2016 and 2014 footprint realignment plans, the 2017 Pyng integration program and the other 2016 restructuring programs. The Company committed to the 2017 Pyng integration program, which relates to the integration of Pyng Medical Corp. (“Pyng”) into the Company, during the second quarter of 2017, following the Company’s acquisition of Pyng in April 2017.
(4) Other restructuring programs include the 2014 Footprint realignment plan, the 2017 Vascular Solutions integration program, the 2017 EMEA restructuring program and the other 2016 restructuring programs. (5) Other restructuring programs include the 2014 Footprint realignment plan, the 2017 Pyng integration program and the other 2016 restructuring programs. 2018 Footprint Realignment Plan On May 1, 2018, the Company initiated a restructuring plan involving the relocation of certain European manufacturing operations to existing lower-cost locations, the outsourcing of certain of the Company’s European distribution operations and related workforce reductions (the “2018 Footprint realignment plan"). These actions are expected to be substantially completed by the end of 2024. The following table provides a summary of the Company’s cost estimates by major type of expense associated with the 2018 Footprint realignment plan:
Type of expense | Total estimated amount expected to be incurred
Termination benefits | $60 million to $70 million
Other exit costs (1) | $2 million to $4 million
Restructuring charges | $62 million to $74 million
Restructuring related charges (2) | $40 million to $59 million
Total restructuring and restructuring related charges | $102 million to $133 million
(1) | Includes contract termination, facility closure, employee relocation, equipment relocation and outplacement costs.
(2) | Consists of pre-tax charges related to accelerated depreciation and other costs directly related to the plan, primarily project management costs and costs to transfer manufacturing operations to the new locations, as well as a charge associated with the Company’s exit from the facilities that is expected to be imposed by the taxing authority in the affected jurisdiction. Excluding this tax charge, substantially all of the charges are expected to be recognized within costs of goods sold.
In addition to the restructuring charges shown in the tables above, the Company recorded restructuring related charges with respect to the 2018 Footprint realignment plan of $1.8 million and $2.8 million for the three and nine months ended September 30, 2018, respectively, within cost of goods sold. As of September 30, 2018, the Company has a restructuring reserve of $51.6 million related to this plan, all of which related to termination benefits. 2016 Footprint Realignment Plan In 2016, the Company initiated a restructuring plan (the “2016 Footprint realignment plan") involving 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. In addition to the restructuring charges shown in the tables above, the Company recorded restructuring related charges with respect to the 2016 Footprint realignment plan of $1.7 million and $5.1 million for the three and nine months ended September 30, 2018 and $1.4 million and $5.5 million for the three and nine months ended October 1, 2017, respectively. The majority of these restructuring related charges in both periods constituted accelerated depreciation and other costs arising principally as a result of the transfer of manufacturing operations to new locations. The Company estimates that it will incur aggregate pre-tax restructuring and restructuring related charges in connection with the 2016 Footprint realignment plan of approximately $43 million. As of September 30, 2018, the Company has incurred aggregate restructuring charges in connection with the 2016 Footprint realignment plan of $17.4 million. Additionally, as of September 30, 2018, the Company has incurred aggregate restructuring related charges of $19.8 million with respect to the 2016 Footprint realignment plan, consisting of accelerated depreciation and certain other costs that principally resulted from the transfer of manufacturing operations to new locations. The restructuring related charges primarily were included in cost of goods sold. As of September 30, 2018, the Company has a restructuring reserve of $5.9 million related to this plan, all of which related 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. In addition to the restructuring charges set forth in the tables above, the Company recorded restructuring related charges with respect to the 2014 Footprint realignment plan of $0.8 million and $1.8 million for the three and nine months ended September 30, 2018, respectively, and $1.0 million and $3.1 million for the three and nine months ended October 1, 2017, respectively. The majority of these restructuring related charges in both periods constituted accelerated depreciation and other costs arising principally as a result of the transfer of manufacturing operations to new locations. The Company estimates that it will incur aggregate pre-tax restructuring and restructuring related charges in connection with the 2014 Footprint realignment plan of $46 million to $51 million. As of September 30, 2018, the Company has incurred aggregate restructuring charges of $12.4 million in connection with the 2014 Footprint realignment plan. Additionally, as of September 30, 2018, the Company has incurred aggregate restructuring related charges of $28.7 million related to the 2014 Footprint realignment plan, consisting of accelerated depreciation and certain other costs that principally resulted from the transfer of manufacturing operations from the existing locations to new locations. These restructuring related charges primarily were included in cost of goods sold. As of September 30, 2018, the Company has a restructuring reserve of $3.8 million in connection with the plan, all of which related to termination benefits. As the restructuring programs progress, management will reevaluate the estimated expenses and charges set forth above, and may revise its estimates, as appropriate, consistent with GAAP. For additional information related to 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, 2017. Restructuring charges (credits) by reportable operating segment, and by all other operating segments in the aggregate, for the three and nine months ended September 30, 2018 and October 1, 2017 are set forth in the following table:
| Three Months Ended |  | Nine Months Ended
| September 30, 2018 |  | October 1, 2017 |  | September 30, 2018 |  | October 1, 2017
| (Dollars in thousands)
Vascular North America | $ | 203 |  |  | $ | 582 |  |  | $ | 725 |  |  | $ | 1,663 |
Interventional North America | (26 | ) |  | (228 | ) |  | 881 |  |  | 4,178 |
Anesthesia North America | 38 |  |  | 220 |  |  | 164 |  |  | 1,031 |
EMEA | 1,520 |  |  | (632 | ) |  | 54,310 |  |  | 6,483 |
All other | 229 |  |  | (34 | ) |  | 2,435 |  |  | 368 |
Restructuring charges | $ | 1,964 |  |  | $ | (92 | ) |  | $ | 58,515 |  |  | $ | 13,723 |
Asset Impairment Charges During the third quarter 2018, the Company decided to abandon certain intellectual property and other assets associated with products that will be eliminated from the Company's interventional product portfolio. As a result, the Company recognized pre-tax impairment charges of $17.2 million ($9.2 million after tax) for the three months ended September 30, 2018.

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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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