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Restructuring and impairment charges | 6 Months Ended
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Jun. 27, 2021
Restructuring and Related Activities [Abstract] |
Restructuring and impairment charges | Restructuring and impairment charges Respiratory divestiture plan During the second quarter of 2021, in connection with the Respiratory business divestiture described in Note 4, we committed to a restructuring plan designed to separate the manufacturing operations that will be transferred to Medline from those that will remain with Teleflex, which includes related workforce reductions (the “Respiratory divestiture plan”). The plan includes expanding certain of our existing locations to accommodate the transfer of capacity from the sites that will be transferred to Medline and replicating the manufacturing processes at alternate existing locations. We expect this plan will be substantially completed by the end of 2023. The following table provides a summary of our cost estimates by major type of expense associated with the Respiratory divestiture plan:
| Total estimated amount expected to be incurred
Program expense estimates: | (Dollars in millions)
Restructuring charges (1) | $5 million to $8 million
Restructuring related charges (2) | $19 million to $22 million
Total restructuring and restructuring related charges | $24 million to $30 million
(1)Substantially all of the charges consist of employee termination benefit costs. (2)Consist of charges that are directly related to the Respiratory divestiture plan and principally constitute costs to transfer manufacturing operations to other locations and project management costs. Substantially all of the charges are expected to be recognized within costs of goods sold. We expect substantially all of the restructuring and restructuring related charges will result in future cash outlays, the majority of which will be made in 2022 and 2023. Additionally, we expect to incur $22 million to $28 million in aggregate capital expenditures under the plan, which are expected to be incurred mostly in 2022 and 2023. As of June 27, 2021, we had a restructuring reserve of $2.5 million related to this plan, all of which related to termination benefits. 2021 Restructuring plan During the first quarter of 2021, we committed to a restructuring plan designed to streamline various business functions across our segments. We estimate that we will incur aggregate pre-tax restructuring charges of $7 million to $9 million, consisting primarily of termination benefits. In addition, we expect to incur $3 million to $4 million in restructuring related charges, most of which are expected to be recognized in cost of goods sold. We expect this plan will be substantially completed by the end of 2021. As of June 27, 2021, we had a restructuring reserve of $5.1 million related to this plan, all of which related to termination benefits. Footprint realignment plans We have ongoing restructuring programs related to the relocation of manufacturing operations to existing lower-cost locations and related workforce reductions (referred to as the 2019, 2018 and 2014 Footprint realignment plans). The following tables provide a summary of our cost estimates and other information associated with these ongoing Footprint realignment plans:
| 2019 Footprint realignment plan |  | 2018 Footprint realignment plan |  | 2014 Footprint realignment plan
Program expense estimates: | (Dollars in millions)
Termination benefits | $14 to $16 |  | $60 to $70 |  | $13 to $13
Other costs (1) | 2 to 2 |  | 3 to 4 |  | 1 to 2
Restructuring charges | 16 to 18 |  | 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 | $54 to $61 |  | $103 to $133 |  | $52 to $55
Other program estimates: |  |  |  |  |
Expected cash outlays | $48 to $55 |  | $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 | $15.5 |  | $61.9 |  | $13.7
Restructuring reserve: |  |  |  |  |
Balance as of June 27, 2021 | $5.4 |  | $47.2 |  | $3.1
Restructuring related charges incurred: |  |  |  |  |
Three Months Ended June 27, 2021 | $3.9 |  | $2.3 |  | $1.0
Six Months Ended June 27, 2021 | $7.4 |  | $4.3 |  | $1.7
Aggregate restructuring related charges | $28.6 |  | $21.0 |  | $37.7
(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 the restructuring related charges are expected to be recognized within cost of goods sold. Restructuring and impairment charges recognized for the three and six months ended June 27, 2021 and June 28, 2020 consisted of the following:
Three Months Ended June 27, 2021 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
Respiratory divestiture plan | $ | 2,540 |  |  | $ | 1 |  |  | $ | 2,541 |
2021 Restructuring plan | 129 |  |  | 23 |  |  | 152 |
2019 Footprint realignment plan | (301) |  |  | 91 |  |  | (210) |
2018 Footprint realignment plan | 1,459 |  |  | 92 |  |  | 1,551 |
Other restructuring programs (2) | (4) |  |  | 725 |  |  | 721 |
Restructuring charges | 3,823 |  |  | 932 |  |  | 4,755 |
Asset impairment charges | — |  |  | 6,739 |  |  | 6,739 |
Restructuring and impairment charges | $ | 3,823 |  |  | $ | 7,671 |  |  | $ | 11,494 |
Three Months Ended June 28, 2020 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
2020 Workforce reduction plan | $ | 10,564 |  |  | $ | — |  |  | $ | 10,564 |
2019 Footprint realignment plan | 323 |  |  | 82 |  |  | 405 |
2018 Footprint realignment plan | 7,545 |  |  | 52 |  |  | 7,597 |
Other restructuring programs (2) | 169 |  |  | 270 |  |  | 439 |
Restructuring charges | $ | 18,601 |  |  | $ | 404 |  |  | $ | 19,005 |
Six Months Ended June 27, 2021 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
Respiratory divestiture plan | $ | 2,540 |  |  | $ | 1 |  |  | $ | 2,541 |
2021 Restructuring plan | 6,889 |  |  | 23 |  |  | 6,912 |
2019 Footprint realignment plan | 40 |  |  | 196 |  |  | 236 |
2018 Footprint realignment plan | 1,726 |  |  | 137 |  |  | 1,863 |
Other restructuring programs (2) | (170) |  |  | 1,371 |  |  | 1,201 |
Restructuring charges | 11,025 |  |  | 1,728 |  |  | 12,753 |
Asset impairment charges | — |  |  | 6,739 |  |  | 6,739 |
Restructuring and impairment charges | $ | 11,025 |  |  | $ | 8,467 |  |  | $ | 19,492 |
Six Months Ended June 28, 2020 |  |  |  |  |
| Termination benefits |  | Other costs (1) |  | Total
2020 Workforce reduction plan | $ | 10,564 |  |  | $ | — |  |  | $ | 10,564 |
2019 Footprint realignment plan | 1,152 |  |  | 91 |  |  | 1,243 |
2018 Footprint realignment plan | 7,859 |  |  | 133 |  |  | 7,992 |
Other restructuring programs (2) | 62 |  |  | 490 |  |  | 552 |
Restructuring charges | $ | 19,637 |  |  | $ | 714 |  |  | $ | 20,351 |
(1) Other costs include facility closure, contract termination and other exit costs. (2) Includes the program initiated during third quarter of 2019 as well as the 2016 and 2014 Footprint realignment plans. Impairment Charges For the three and six months ended June 27, 2021, we recorded impairment charges of $6.7 million related to our decision to abandon intellectual property and other assets primarily associated with our respiratory product portfolio that was not transferred to Medline as part of the Respiratory business divestiture described in Note 4.

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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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