XML 31 R14.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Restructuring and other impairment charges | 12 Months Ended
--- | ---
Dec. 31, 2018
Restructuring and Related Activities [Abstract] |
Restructuring and impairment charges | Restructuring and impairment charges The restructuring and impairment charges recognized for the years ended December 31, 2018, 2017, and 2016 consisted of the following:
| 2018
| Termination benefits |  | Other Costs |  | Total
| (Dollars in thousands)
2018 Footprint realignment plan | $ | 53,992 |  |  | $ | 1,001 |  |  | $ | 54,993 |
2016 Footprint realignment plan | 2,318 |  |  | 543 |  |  | 2,861 |
Other restructuring programs (1) | 1,502 |  |  | 764 |  |  | 2,266 |
Total restructuring charges | $ | 57,812 |  |  | $ | 2,308 |  |  | $ | 60,120 |
Asset impairment charges | — |  |  | 19,110 |  |  | 19,110 |
Total restructuring and impairment charges | $ | 57,812 |  |  | $ | 21,418 |  |  | $ | 79,230 |
(1) | Includes activity related to the 2014 Footprint realignment plan, the 2017 Vascular Solutions integration program, the 2017 EMEA restructuring program and the other 2016 restructuring programs.
| 2017
| Termination benefits |  | Other Costs |  | Total
| (Dollars in thousands)
2017 Vascular Solutions integration program | $ | 5,377 |  |  | $ | 118 |  |  | $ | 5,495 |
2017 EMEA restructuring program | 4,921 |  |  | 280 |  |  | 5,201 |
2016 Footprint realignment plan | 1,314 |  |  | 783 |  |  | 2,097 |
Other restructuring programs (1) | 1,704 |  |  | 293 |  |  | 1,997 |
Total restructuring charges | $ | 13,316 |  |  | $ | 1,474 |  |  | $ | 14,790 |
(1) | Includes activity primarily related to the other 2016 restructuring programs, the 2014 Footprint realignment plan and the 2017 Pyng integration program. 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 2017, following the Company's acquisition of Pyng in April 2017.
| 2016
| Termination benefits |  | Other Costs |  | Total
| (Dollars in thousands)
Other 2016 restructuring programs | $ | 2,531 |  |  | $ | 683 |  |  | $ | 3,214 |
2016 Footprint realignment plan | 11,176 |  |  | 1,334 |  |  | 12,510 |
Other restructuring programs (1) | (477 | ) |  | 624 |  |  | 147 |
Total restructuring charges | $ | 13,230 |  |  | $ | 2,641 |  |  | $ | 15,871 |
Asset impairment charges | — |  |  | 43,356 |  |  | 43,356 |
Total restructuring and impairment charges | $ | 13,230 |  |  | $ | 45,997 |  |  | $ | 59,227 |
(1) | Includes activity primarily related to the 2014 Footprint realignment plan and the programs initiated in 2015 that were associated with the reorganization of certain businesses and shared service center functions as well as the consolidation of certain facilities in North America. The 2015 programs have been completed.
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 costs | $2 million to $4 million
Restructuring charges | $62 million to $74 million
Restructuring related charges (1) | $40 million to $59 million
Total restructuring and restructuring related charges | $102 million to $133 million
(1) | 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.
The following table summarizes the activity related to the 2018 Footprint realignment plan restructuring reserve:
| Termination benefits |  | Other Costs |  | Total
| (Dollars in thousands)
Balance at December 31, 2017 | $ | — |  |  | $ | — |  |  | $ | — |
Subsequent accruals | 53,992 |  |  | 1,001 |  |  | 54,993 |
Cash payments | (3,503 | ) |  | (1,000 | ) |  | (4,503 | )
Foreign currency translation | (2,015 | ) |  | (1 | ) |  | (2,016 | )
Balance at December 31, 2018 | $ | 48,474 |  |  | $ | — |  |  | $ | 48,474 |
The Company recorded restructuring related charges with respect to the 2018 Footprint realignment plan of $4.1 million for the year ended December 31, 2018, within cost of goods sold. 2017 Vascular Solutions integration program During 2017, the Company committed to a restructuring program related to the integration of Vascular Solutions into Teleflex. As of December 31, 2018 the Company incurred net aggregate restructuring charges under the plan of $6.1 million. The program is substantially complete and as a result, the Company expects future restructuring expenses associated with the program, if any, to be nominal. As of December 31, 2018, the Company has a restructuring reserve of $0.3 million related to this program. 2017 EMEA restructuring program During 2017, the Company committed to a restructuring program to centralize certain administrative functions in Europe. As of December 31, 2018 the Company incurred net aggregate restructuring charges under the plan of $5.9 million. The program is substantially complete and as a result, the Company expects future restructuring expenses associated with the program, if any, to be nominal. As of December 31, 2018, the Company has a restructuring reserve of $0.8 million related to this program. 2016 Footprint realignment plan In 2016, the Company initiated a restructuring 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 (the “2016 Footprint realignment plan"). The program is substantially complete and as a result, the Company expects future restructuring expenses associated with the program, if any, to be immaterial. The following table summarizes the activity related to the 2016 Footprint realignment plan restructuring reserve:
| Termination benefits |  | Other Costs |  | Total
| (Dollars in thousands)
Balance at December 31, 2016 | $ | 8,135 |  |  | $ | 760 |  |  | $ | 8,895 |
Subsequent accruals | 1,314 |  |  | 783 |  |  | 2,097 |
Cash payments | (2,096 | ) |  | (1,218 | ) |  | (3,314 | )
Foreign currency translation | (57 | ) |  | 44 |  |  | (13 | )
Balance at December 31, 2017 | 7,296 |  |  | 369 |  |  | 7,665 |
Subsequent accruals | 2,318 |  |  | 543 |  |  | 2,861 |
Cash payments | (3,954 | ) |  | (912 | ) |  | (4,866 | )
Foreign currency translation | (244 | ) |  | — |  |  | (244 | )
Balance at December 31, 2018 | $ | 5,416 |  |  | $ | — |  |  | $ | 5,416 |
For the years ended December 31, 2018, 2017, and 2016, the Company also incurred restructuring related costs of $7.1 million, $8.3 million, and $6.4 million, respectively, with respect to the 2016 Footprint realignment plan, the majority of which constituted accelerated depreciation and other costs, which primarily were recognized within cost of goods sold. As of December 31, 2018, the Company has incurred net aggregate restructuring expenses related to the 2016 Footprint realignment plan of $17.5 million. Additionally, as of December 31, 2018, the Company has incurred net aggregate restructuring related charges in connection with the plan of $21.8 million, which were primarily included in cost of goods sold. 2014 Footprint realignment plan In April 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. During the fourth quarter 2017, the Company entered into an agreement with an alternate provider for the development and supply of a component to be included in certain kits primarily sold by the Company’s Vascular North America and Anesthesia North America operating segments. The agreement will result in increased development costs, but is expected to reduce the cost of the component supply, once the supply becomes commercially available, as compared to costs incurred with respect to current suppliers. The Company estimates that it will incur aggregate pre-tax charges in connection with the 2014 Footprint realignment plan of $47 million to $52 million of which an estimated $38 million to $43 million are expected to result in future cash outlays. Additionally, the Company expects that it will incur $24 million to $30 million in aggregate capital expenditures under the plan. The Company expects the program to be substantially complete by the end of 2021. The following table provides a summary of the Company’s cost estimates by major type of expense associated with the 2014 Footprint realignment plan:
Type of expense | Total estimated amount expected to be incurred
Termination benefits | $12 million to $13 million
Other costs | $1 million to $2 million
Restructuring charges | $13 million to $15 million
Restructuring related charges (1) | $34 million to $37 million
| $47 million to $52 million
(1) Consists of accelerated depreciation and other costs directly related to the plan, primarily as a result of the transfer of manufacturing operations to new locations. The following table summarizes the activity related to the 2014 Footprint realignment plan restructuring reserve:
| Termination benefits |  | Other Costs |  | Total
| (Dollars in thousands)
Balance at December 31, 2016 | $ | 5,370 |  |  | $ | — |  |  | $ | 5,370 |
Subsequent accruals | 687 |  |  | 68 |  |  | 755 |
Cash payments | (2,131 | ) |  | (68 | ) |  | (2,199 | )
Balance at December 31, 2017 | 3,926 |  |  | — |  |  | 3,926 |
Subsequent accruals | 744 |  |  | 86 |  |  | 830 |
Cash payments | (734 | ) |  | (86 | ) |  | (820 | )
Balance at December 31, 2018 | $ | 3,936 |  |  | $ | — |  |  | $ | 3,936 |
For the years ended December 31, 2018, 2017 and 2016, the Company reported restructuring related costs of $2.2 million, $4.0 million and $8.5 million, respectively, related to this plan within cost of goods sold. These costs related to accelerated depreciation and certain other costs, primarily for the transfer of manufacturing operations from the existing locations to the new locations in connection with the plan. As of December 31, 2018, the Company has incurred net aggregate restructuring expenses related to the plan of $12.6 million. Additionally, as of December 31, 2018, the Company has incurred net aggregate restructuring related charges in connection with the plan of $29.1 million, which were included in cost of goods sold. 2016 Other restructuring programs During 2016, the Company commenced restructuring programs involving the consolidation of certain global administrative functions and manufacturing operations. As of December 31, 2018 the Company incurred net aggregate restructuring charges under the programs of $4.2 million. These programs are substantially complete and as a result, the Company expects future restructuring expenses associated with the programs, if any, to be nominal. As each of the ongoing plans and programs described above progress, management will reevaluate the estimated expenses set forth above, and may revise its estimates, as appropriate, consistent with GAAP. 2019 Footprint realignment plan In February 2019, the Company initiated a restructuring plan primarily involving the relocation of certain manufacturing operations to existing lower-cost locations and related workforce reductions (the “2019 Footprint realignment plan"). See Note 20 for additional information. Restructuring Charges by Segment Restructuring charges by reportable operating segment for the years ended December 31, 2018, 2017, and 2016 are set forth in the following table:
| 2018 |  | 2017 |  | 2016
| (Dollars in thousands)
Vascular North America | $ | 556 |  |  | $ | 2,595 |  |  | $ | 5,843 |
Interventional North America | 900 |  |  | 4,908 |  |  | 459 |
Anesthesia North America | 371 |  |  | 1,262 |  |  | 1,839 |
Surgical North America | — |  |  | — |  |  | 151 |
EMEA | 55,608 |  |  | 5,722 |  |  | 4,423 |
OEM | — |  |  | — |  |  | 795 |
All other | 2,685 |  |  | 303 |  |  | 2,361 |
Total restructuring charges | $ | 60,120 |  |  | $ | 14,790 |  |  | $ | 15,871 |
Impairment Charges For the year ended December 31, 2018, the Company recorded impairment charges of $19.1 million primarily as a result of its decision to abandon certain intellectual property associated with products that were eliminated from the Company's interventional product portfolio. There were no impairment charges recorded for the year ended December 31, 2017. For the year ended December 31, 2016, the Company recorded $43.4 million of impairment charges, including $41.0 million related to a discontinued IPR&D project and $2.4 million related to two properties that were sold during the first quarter of 2017.

X
- References No definition available. + Details
Name: | us-gaap_RestructuringAndRelatedActivitiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_RestructuringImpairmentAndOtherActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration