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Restructuring and other impairment charges | 12 Months Ended
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Dec. 31, 2024
Restructuring and Related Activities [Abstract] |
Restructuring and other impairment charges | Restructuring and other impairment charges 2024 Restructuring plan During the fourth quarter of 2024, we initiated the "2024 restructuring plan," a strategic restructuring plan aimed at optimizing operations, reducing costs and enhancing efficiencies across our business lines, and includes the relocation of select office administrative operations. We estimate that we will incur aggregate pre-tax restructuring charges of $6 million to $7 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 selling, general and administrative expenses. We expect this plan will be substantially completed by the end of 2025. For the year ended December 31, 2024, we incurred $0.2 million in restructuring related charges in connection with the 2024 restructuring plan, substantially all of which was recognized in selling, general and administrative expenses. 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 the cost estimates by major type of expense associated with the 2024 Footprint realignment plan:
| Total estimated amount expected to be incurred
Plan expense estimates: | (Dollars in millions)
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 cost. (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. For the year ended December 31, 2024, we incurred $6.6 million in restructuring related charges in connection with the 2024 Footprint realignment plan, substantially all of which was recognized in cost of goods sold. 2023 Footprint Realignment plan During the third quarter of 2023, we initiated the "2023 Footprint realignment plan," 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. These actions are expected to be substantially completed by the end of 2027. The following table provides a summary of the cost estimates by major type of expense associated with the 2023 Footprint realignment plan:
| Total estimated amount expected to be incurred
Plan expense estimates: | (Dollars in millions)
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 cost. (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. For the year ended December 31, 2024, we incurred $2.6 million in restructuring related charges in connection with the 2023 Footprint realignment plan, all of which was recognized in cost of goods sold. As of December 31, 2024, we have incurred aggregate restructuring charges in connection with the 2023 Footprint realignment plan of $2.8 million. In addition, as of December 31, 2024, we have incurred aggregate restructuring related charges of $2.7 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. 2023 Restructuring plan During the fourth quarter of 2023, we initiated the "2023 restructuring plan," which primarily involves 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 plan is substantially complete and as a result, we expect future restructuring expenses associated with the plan to be immaterial. The following table summarizes the restructuring reserve activity related to our 2024 Restructuring plan, 2024 Footprint realignment plan and 2023 Footprint realignment plan:
| 2024 Restructuring plan |  | 2024 Footprint realignment plan |  | 2023 Footprint realignment plan |  |
Balance at December 31, 2022 | $ | — |  |  | $ | — |  |  | $ | — |  |  |
Subsequent accruals | — |  |  | — |  |  | 1,451 |  |  |
Cash payments | — |  |  | — |  |  | (108) |  |  |
Balance at December 31, 2023 (1) | — |  |  | — |  |  | 1,343 |  |  |
Accruals | 6,100 |  |  | 11,203 |  |  | 1,377 |  |  |
Cash payments | (777) |  |  | (1,442) |  |  | (32) |  |  |
Foreign currency translation and other | 427 |  |  | 961 |  |  | — |  |  |
Balance at December 31, 2024 (1) | $ | 5,750 |  |  | $ | 10,722 |  |  | $ | 2,688 |  |  |
(1)The restructuring reserves as of December 31, 2024 and 2023 consisted mainly of accruals related to termination benefits. 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, 2024, 2023, and 2022 consisted of the following:
| 2024
| Termination benefits |  | Other Costs (1) |  | Total
2024 Restructuring plan | $ | 6,086 |  |  | $ | 14 |  |  | $ | 6,100 |
2024 Footprint realignment plan | 11,164 |  |  | 39 |  |  | 11,203 |
2023 Restructuring plan | (1,524) |  |  | 82 |  |  | (1,442) |
2023 Footprint realignment plan | 1,344 |  |  | 33 |  |  | 1,377 |
2022 Restructuring plan | (1,454) |  |  | 22 |  |  | (1,432) |
Other restructuring programs (2) | (1,665) |  |  | 16 |  |  | (1,649) |
Total restructuring charges | 13,951 |  |  | 206 |  |  | 14,157 |
Asset impairment charges | — |  |  | 7,834 |  |  | 7,834 |
Total restructuring and other impairment charges | $ | 13,951 |  |  | $ | 8,040 |  |  | $ | 21,991 |
| 2023
| Termination benefits |  | Other Costs (1) |  | Total
2023 Restructuring plan | $ | 12,535 |  |  | $ | — |  |  | $ | 12,535 |
2023 Footprint realignment plan | 1,451 |  |  | — |  |  | 1,451 |
2022 Restructuring plan | 2,759 |  |  | 369 |  |  | 3,128 |
Respiratory divestiture plan | (946) |  |  | 17 |  |  | (929) |
Other restructuring programs (3) | (1,015) |  |  | 434 |  |  | (581) |
Total restructuring and other impairment charges | $ | 14,784 |  |  | $ | 820 |  |  | $ | 15,604 |
| 2022
| Termination benefits |  | Other Costs (1) |  | Total
2022 Restructuring plan | $ | 15,465 |  |  | $ | 58 |  |  | $ | 15,523 |
Respiratory divestiture plan | 504 |  |  | 74 |  |  | 578 |
2019 Footprint realignment plan | (1,120) |  |  | 133 |  |  | (987) |
2018 Footprint realignment plan | 1,230 |  |  | 846 |  |  | 2,076 |
Other restructuring programs (3) | 1,306 |  |  | 306 |  |  | 1,612 |
Total restructuring charges | 17,385 |  |  | 1,417 |  |  | 18,802 |
Asset impairment charges | — |  |  | 1,497 |  |  | 1,497 |
Total restructuring and other impairment charges | $ | 17,385 |  |  | $ | 2,914 |  |  | $ | 20,299 |
(1)Includes facility closure, contract termination and other exit costs. (2)Includes activity primarily related to our 2018 and 2019 Footprint realignment plans, which have concluded. (3)Includes activity primarily related to a restructuring plan initiated in the first quarter of 2022 that is designed to relocate manufacturing operations at certain of our facilities (the "2022 Manufacturing relocation plan") and our 2014, 2018, and 2019 Footprint realignment plans, which have concluded. Other Impairment charges For the year ended December 31, 2024, we recorded non-cash impairment charges totaling $7.8 million related to a decrease in the carrying value of an equity investment and an impairment of a portion of our operating lease assets stemming from our cessation of occupancy of a specific facility. For the year ended December 31, 2022, we recorded impairment charges of $1.5 million related to our decision to abandon certain assets.

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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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