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Restructuring and other impairment charges | 12 Months Ended
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Dec. 31, 2020
Restructuring and Related Activities [Abstract] |
Restructuring and impairment charges | Restructuring and impairment chargesDuring the second quarter of 2020, we committed to a workforce reduction (the "2020 Workforce reduction plan") designed to improve profitability and reduce cost primarily by streamlining certain sales and marketing functions in our EMEA segment and certain manufacturing operations in our OEM segment. The workforce reduction was initiated to further align the business with our high growth strategic objectives. The plan was substantially completed at the end of 2020 and we expect future restructuring expenses associated with the program, if any, to be nominal. We have ongoing restructuring programs related to the relocation of manufacturing operations to existing lower-cost locations and related workforce reductions (referred to as our 2019, 2018 and 2014 Footprint realignment plans). The following tables provide a summary of our cost estimates and other information associated with these ongoing plans:
| 2019 Footprint realignment plan (3) |  | 2018 Footprint realignment plan (4) |  | 2014 Footprint realignment plan (5)
Program expense estimates: | (Dollars in millions)
Termination benefits | $16 to $18 |  | $60 to $70 |  | $13 to $13
Other costs (1) | 2 to 2 |  | 3 to 4 |  | 1 to 2
Restructuring charges | 18 to 20 |  | 63 to 74 |  | 14 to 15
Restructuring related charges (2) | 38 to 43 |  | 40 to 59 |  | 38 to 40
Total restructuring and restructuring related charges | $56 to $63 |  | $103 to $133 |  | $52 to $55
Other program estimates: |  |  |  |  |
Expected cash outlays | $50 to $57 |  | $99 to $127 |  | $42 to $46
Expected capital expenditures | $28 to $33 |  | $19 to $23 |  | $26 to $27
Other program information: |  |  |  |  |
Period initiated | February 2019 |  | May 2018 |  | April 2014
Estimated period of substantial completion | 2022 |  | 2022 |  | 2022
Aggregate restructuring charges | $15.3 |  | $60.0 |  | $13.6
Restructuring related charges incurred: |  |  |  |  |
For year ended December 31, 2020 | $14.5 |  | $9.5 |  | $3.8
Aggregate restructuring related charges | $21.1 |  | $16.7 |  | $36.0
(1)Includes facility closure, employee relocation, equipment relocation and outplacement costs. (2)Restructuring related charges represent costs that are directly related to the programs and principally constitute costs to transfer manufacturing operations to the existing lower-cost locations, project management costs and accelerated depreciation. The 2018 Footprint realignment plan also includes a charge associated with our 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 these charges are expected to be recognized within cost of goods sold. (3)In 2020, we refined the disclosed ranges for each of the components of the program expense and other program estimates in consideration of the progress made to date as well as the actions remaining. The refinements resulted in a decrease in the high end of the disclosed ranges compared to our prior estimates. (4)In 2020, we accelerated the timing of substantial completion from our prior estimate of 2024 to take advantage of an opportunity we identified to accelerate the recognition of estimated savings. (5)In 2020, we extended our timeline of certain development and qualification activities which resulted in a delay in the anticipated period of substantial completion from our prior estimate of 2021. The shift in timing also resulted in an increase in the total program cost estimate, primarily restructuring related charges, and related cash outlays compared to prior estimates. We also refined the disclosed range of capital expenditures in consideration of the progress made to date as well as actions remaining. The following table summarizes the restructuring reserve activity related to our 2019, 2018 and 2014 Footprint realignment plans:
| 2019 Footprint realignment plan |  | 2018 Footprint realignment plan |  | 2014 Footprint realignment plan
Balance at December 31, 2018 | $ | — |  |  | $ | 48,474 |  |  | $ | 3,936 |
Subsequent accruals | 13,753 |  |  | (939) |  |  | 313 |
Cash payments | (1,602) |  |  | (3,628) |  |  | (580) |
Foreign currency translation | (281) |  |  | 367 |  |  | — |
Balance at December 31, 2019 | 11,870 |  |  | 44,274 |  |  | 3,669 |
Subsequent accruals | 1,542 |  |  | 5,948 |  |  | 606 |
Cash payments | (5,532) |  |  | (4,281) |  |  | (682) |
Foreign currency translation and other | 174 |  |  | 4,140 |  |  | — |
Balance at December 31, 2020 (1) | $ | 8,054 |  |  | $ | 50,081 |  |  | $ | 3,593 |
(1)The restructuring reserves as of December 31, 2020 , 2019 and 2018 consisted mainly of accruals related to termination benefits. Most of the Other costs (facility closure, employee relocation, equipment relocation and outplacement costs) were expensed and paid in the same period. The restructuring and impairment charges recognized for the years ended December 31, 2020, 2019, and 2018 consisted of the following:
| 2020
| Termination benefits |  | Other Costs (1) |  | Total
2020 Workforce reduction plan | $ | 8,494 |  |  | $ | 353 |  |  | $ | 8,847 |
2019 Footprint realignment plan | 647 |  |  | 895 |  |  | 1,542 |
2018 Footprint realignment plan | 5,565 |  |  | 383 |  |  | 5,948 |
Other restructuring programs (2) | (72) |  |  | 838 |  |  | 766 |
Total restructuring charges | 14,634 |  |  | 2,469 |  |  | 17,103 |
Asset impairment charges | — |  |  | 21,388 |  |  | 21,388 |
Total restructuring and impairment charges | $ | 14,634 |  |  | $ | 23,857 |  |  | $ | 38,491 |
| 2019
| Termination benefits |  | Other Costs (1) |  | Total
2019 Footprint realignment plan | $ | 13,683 |  |  | $ | 70 |  |  | $ | 13,753 |
2018 Footprint realignment plan | (1,787) |  |  | 848 |  |  | (939) |
Other restructuring programs (3) | 787 |  |  | 1,638 |  |  | 2,425 |
Total restructuring charges | 12,683 |  |  | 2,556 |  |  | 15,239 |
Asset impairment charges | — |  |  | 6,966 |  |  | 6,966 |
Total restructuring and impairment charges | $ | 12,683 |  |  | $ | 9,522 |  |  | $ | 22,205 |
| 2018
| Termination benefits |  | Other Costs (1) |  | Total
2018 Footprint realignment plan | $ | 53,992 |  |  | $ | 1,001 |  |  | $ | 54,993 |
Other restructuring programs (4) | 3,820 |  |  | 1,307 |  |  | 5,127 |
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 facility closure, contract termination and other exit costs. (2)Includes activity primarily related to the 2016 and 2014 Footprint realignment plans. (3)Includes the program initiated during third quarter of 2019, the 2017 Vascular Solutions integration program as well as the 2016 and 2014 Footprint realignment plans. (4)Includes activity primarily related to the 2016 Footprint realignment plan, which is substantially complete, and the 2014 Footprint realignment plan, as well as the 2017 Vascular Solutions integration program and the 2017 EMEA restructuring program. Impairment ChargesFor the year ended December 31, 2020, we recorded impairment charges of $21.4 million ($19.4 million after tax) related primarily to our decision to abandon intellectual property and other assets related to the Percuvance percutaneous surgical system product line. For the years ended December 31, 2019 and 2018 we recorded impairment charges of $7.0 million and $19.1 million, respectively, related to our decision to abandon certain intellectual property and other assets associated with our interventional product portfolio.

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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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