XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Restructuring and impairment charges | 6 Months Ended
--- | ---
Jun. 30, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and impairment charges | Restructuring and impairment charges 2024 Footprint realignment plan During the second quarter of 2024, we initiated the "2024 Footprint realignment plan," encompassing several strategic restructuring initiatives. These initiatives primarily include the relocation of select manufacturing operations to existing lower-cost locations, the optimization of specific product portfolios through targeted rationalization efforts, the relocation of certain integral product development and manufacturing support functions, the optimization of certain supply chain activities and related workforce reductions. The actions under the 2024 Footprint realignment plan are expected to be substantially completed by the end of 2025. The following table provides a summary of our estimates of restructuring and restructuring related charges by major type of expense associated with the 2024 Footprint realignment plan:
| Total estimated amount expected to be incurred
Program expense estimates: |
Restructuring charges (1) | $16 million to $20 million
Restructuring related charges (2) | $21 million to $26 million
Total restructuring and restructuring related charges | $37 million to $46 million
(1)Substantially all of the charges consist of employee termination benefit 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 relocate manufacturing operations and support functions to the new locations. Substantially all of the charges are expected to be recognized within costs of goods sold. We expect the restructuring and restructuring related charges will result in future cash outlays ranging from $31 million to $38 million, with the majority anticipated to occur between 2025 and 2026. Furthermore, we expect to incur $13 million to $16 million in aggregate capital expenditures under the plan, with the bulk of these expenses expected to occur during 2024 and 2025. For the three and six months ended June 30, 2024, we incurred $1.1 million under the 2024 Footprint realignment plan in pre-tax restructuring related charges, substantially all of which was recognized in cost of goods sold. 2023 Footprint realignment plan In September 2023, we initiated a restructuring plan primarily involving the relocation of certain manufacturing operations to existing lower-cost locations, the outsourcing of certain manufacturing processes and related workforce reductions (the "2023 Footprint realignment plan"). These actions are expected to be substantially completed by the end of 2027. The following table provides a summary of our estimates of restructuring and restructuring related charges by major type of expense associated with the 2023 Footprint realignment plan:
| Total estimated amount expected to be incurred
Program expense estimates: |
Restructuring charges (1) | $4 million to $6 million
Restructuring related charges (2) | $7 million to $9 million
Total restructuring and restructuring related charges | $11 million to $15 million
(1) Substantially all of the charges consist of employee termination benefit costs. (2) Restructuring related charges represent costs that are directly related to the 2023 Footprint realignment plan and principally constitute costs to transfer manufacturing operations to existing lower-cost locations and project management costs. Substantially all of these charges are expected to be recognized within cost of goods sold. Additionally, we expect to incur $2 million to $3 million in aggregate capital expenditures under the plan. For the three and six months ended June 30, 2024, respectively, we incurred $0.6 million and $1.1 million under the 2023 Footprint realignment plan in pre-tax restructuring related charges, all of which were recognized in cost of goods sold. As of June 30, 2024, we have incurred aggregate restructuring charges in connection with the 2023 Footprint realignment plan of $2.2 million. In addition, as of June 30, 2024, we have incurred aggregate restructuring related charges of $1.2 million with respect to the 2023 Footprint realignment plan, consisting of certain costs that principally resulted from the transfer of manufacturing operations to new locations. As of June 30, 2024, we had a restructuring reserve of $2.1 million related to this plan, all of which related to termination benefits. 2023 Restructuring plan In December 2023, we initiated a restructuring plan, which primarily involved the integration of Palette into Teleflex and workforce reductions designed to improve operating performance across the organization by creating efficiencies that align with evolving market demands and our strategy to enhance long-term value creation (the “2023 restructuring plan”). The plan is substantially complete and as a result, we expect future restructuring expenses associated with the plan to be immaterial. Restructuring and impairment charges recognized for the three and six months ended June 30, 2024 and July 2, 2023 consisted of the following:
Three Months Ended June 30, 2024 |  |  |  |  |
| Termination Benefits |  | Other Costs (1) |  | Total
2024 Footprint realignment plan | $ | 8,572 |  |  | $ | — |  |  | $ | 8,572 |
2023 Restructuring plan | (974) |  |  | 36 |  |  | (938) |
2023 Footprint realignment plan | 588 |  |  | 1 |  |  | 589 |
Other restructuring programs (2) | (373) |  |  | 5 |  |  | (368) |
Restructuring charges | $ | 7,813 |  |  | $ | 42 |  |  | $ | 7,855 |
Three Months Ended July 2, 2023 |  |  |  |  |
| Termination Benefits |  | Other Costs (1) |  | Total
2022 Restructuring plan | $ | 984 |  |  | $ | 138 |  |  | $ | 1,122 |
Respiratory divestiture plan | 127 |  |  | — |  |  | 127 |
Other restructuring programs (3) | 73 |  |  | 186 |  |  | 259 |
Restructuring charges | $ | 1,184 |  |  | $ | 324 |  |  | $ | 1,508 |
Six Months Ended June 30, 2024 |  |  |  |  |
| Termination Benefits |  | Other Costs (1) |  | Total
2024 Footprint realignment plan | $ | 8,572 |  |  | $ | — |  |  | $ | 8,572 |
2023 Restructuring plan | (818) |  |  | 82 |  |  | (736) |
2023 Footprint realignment plan | 743 |  |  | 3 |  |  | 746 |
Other restructuring programs (2) | (208) |  |  | 30 |  |  | (178) |
Restructuring charges | 8,289 |  |  | 115 |  |  | 8,404 |
Asset impairment charges | — |  |  | 2,110 |  |  | 2,110 |
Restructuring and impairment charges | $ | 8,289 |  |  | $ | 2,225 |  |  | $ | 10,514 |
Six Months Ended July 2, 2023 |  |  |  |  |
| Termination Benefits |  | Other Costs (1) |  | Total
2022 Restructuring plan | $ | 3,117 |  |  | $ | 211 |  |  | $ | 3,328 |
Respiratory divestiture plan | 255 |  |  | 12 |  |  | 267 |
Other restructuring programs (3) | (241) |  |  | 375 |  |  | 134 |
Restructuring charges | $ | 3,131 |  |  | $ | 598 |  |  | $ | 3,729 |
(1) Other costs include facility closure, contract termination and other exit costs. (2) Includes activity primarily related to our 2022 Restructuring plan, which has concluded. (3) Includes activity primarily related to our 2014, 2018, and 2019 Footprint realignment plans, all of which have concluded. Impairment charge For the six months ended June 30, 2024, we recorded an impairment charge of $2.1 million related to a portion of our operating lease assets stemming from our cessation of occupancy of a specific facility.

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: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration