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Restructuring and impairment charges
 6 Months Ended
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 plan2018 Footprint realignment plan2014 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 initiatedFebruary 2019May 2018April 2014
Estimated period of substantial completion202220222022
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 plan129 23 152 
2019 Footprint realignment plan(301)91 (210)
2018 Footprint realignment plan1,459 92 1,551 
Other restructuring programs (2)
(4)725 721 
Restructuring charges3,823 932 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 plan323 82 405 
2018 Footprint realignment plan7,545 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 plan6,889 23 6,912 
2019 Footprint realignment plan40 196 236 
2018 Footprint realignment plan1,726 137 1,863 
Other restructuring programs (2)
(170)1,371 1,201 
Restructuring charges11,025 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 plan1,152 91 1,243 
2018 Footprint realignment plan7,859 133 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.