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Restructuring charges, separation costs and impairment charges | 3 Months Ended
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Mar. 30, 2025
Restructuring and Related Activities [Abstract] |
Restructuring charges, separation costs and impairment charges | Restructuring charges, separation costs and impairment charges We have ongoing restructuring initiatives consisting of the following: •a plan initiated in 2024 aimed at optimizing operations, reducing costs and enhancing efficiencies across our business lines, including the relocation of select office administrative operations (the "2024 Restructuring plan"), •a footprint realignment plan initiated in 2024 that includes 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 "2024 Footprint realignment plan") and, •a footprint realignment plan initiated in 2023 that involves 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”). The following tables provide a summary of our cost estimates and other information associated with these plans:
| 2024 Restructuring plan |  | 2024 Footprint Realignment plan |  | 2023 Footprint Realignment plan |  |
Plan expense estimates: | (Dollars in millions) |  |
Restructuring charges (1) | $6 million to $7 million |  | $16 million to $20 million |  | $4 million to $6 million |  |
Restructuring related charges (2) (3) (4) | $3 million to $4 million |  | $21 million to $26 million |  | $7 million to $9 million |  |
Total restructuring and restructuring related charges | $9 million to $11 million |  | $37 million to $46 million |  | $11 million to $15 million |  |
Other plan estimates: |  |  |  |  |  |  |
Expected cash outlays | $9 million to $11 million |  | $31 million to $38 million |  | $11 million to $15 million |  |
Expected capital expenditures | $— |  | $15 million to $17 million |  | $2 million to $3 million |  |
Other plan information: |  |  |  |  |  |  |
Period initiated | November 2024 |  | May 2024 |  | September 2023 |  |
Estimated period of substantial completion | End of 2025 |  | End of 2025 |  | End of 2027 |  |
Aggregate restructuring charges | $6.3 million |  | $12.3 million |  | $3.1 million |  |
Restructuring reserve: |  |  |  |  |  |  |
Balance as of March 30, 2025 | $3.5 million |  | $11.2 million |  | $2.8 million |  |
Restructuring related charges incurred: |  |  |  |  |  |  |
Three months ended March 30, 2025 | $0.3 million |  | $3.8 million |  | $0.6 million |  |
Aggregate restructuring related charges | $0.6 million |  | $10.4 million |  | $3.3 million |  |
(1)Substantially all of the charges consist of employee termination benefit costs. (2)2024 Restructuring plan restructuring related charges represent costs that are directly related to the program and consist primarily of retention bonuses offered to certain employees expected to remain with our company after completion of the program. Substantially all of the restructuring related charges are expected to be recognized within selling, general and administrative expenses. (3)2024 Footprint realignment plan restructuring related charges represent costs that are directly related to the program and consist primarily of project management costs and costs to relocate manufacturing operations and support functions to the new locations. Substantially all of the restructuring related charges are expected to be recognized within cost of goods sold. (4)2023 Footprint realignment plan restructuring related charges represent costs that are directly related to the program 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. Restructuring charges, separation costs and impairment charges recognized for the three months ended March 30, 2025 and March 31, 2024 consisted of the following:
Three Months Ended March 30, 2025 |  |  |  |  |
| Termination Benefits |  | Other Costs (1) |  | Total
2024 Restructuring plan | $ | 120 |  |  | $ | 51 |  |  | $ | 171 |
2024 Footprint realignment plan | 1,065 |  |  | 38 |  |  | 1,103 |
2023 Footprint realignment plan | 243 |  |  | 2 |  |  | 245 |
Other restructuring programs (2) | — |  |  | 9 |  |  | 9 |
Restructuring charges | 1,428 |  |  | 100 |  |  | 1,528 |
Separation costs | — |  |  | 3,227 |  |  | 3,227 |
Restructuring charges, separation costs and impairment charges | $ | 1,428 |  |  | $ | 3,327 |  |  | $ | 4,755 |
Three Months Ended March 31, 2024 |  |  |  |  |
| Termination Benefits |  | Other Costs (1) |  | Total
2023 Restructuring plan | $ | 155 |  |  | $ | 47 |  |  | $ | 202 |
2023 Footprint realignment plan | 155 |  |  | 2 |  |  | 157 |
Other restructuring programs (3) | 165 |  |  | 25 |  |  | 190 |
Restructuring charges | 475 |  |  | 74 |  |  | 549 |
Asset impairment charges | — |  |  | 2,110 |  |  | 2,110 |
Restructuring and impairment charges | $ | 475 |  |  | $ | 2,184 |  |  | $ | 2,659 |
(1) Other costs include facility closure, contract termination and other exit costs. (2) Includes activity primarily related to our 2023 Restructuring plan and our Respiratory divestiture plan. (3) Includes activity primarily related to our 2022 and 2021 Restructuring plans, which have concluded. Impairment charge For the three months ended March 31, 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. Recently Announced Strategic Actions and Separation Costs On February 27, 2025, we announced our intention to create a new, independently traded public company comprising Urology (consisting of our Interventional Urology and Urology product categories), Acute Care (consisting of our Respiratory product category, the majority of our Anesthesia product category and certain products within our Interventional Access and Surgical product categories) and our OEM businesses. Our Vascular Access product category, most of our products within our Interventional Access and Surgical product categories and the VI Business that we expect to acquire will remain with Teleflex. The completion of any separation transaction and the achievement of tax-free status for U.S. tax purposes will be contingent upon various conditions and approvals, including approval of our Board of Directors, receipt of requisite regulatory clearances and compliance with applicable SEC requirements. There can be no guarantees that the proposed separation will be completed on the terms and within the timeframe we announced, or at all. During the three months ended March 30, 2025, we recognized separation costs of $3.2 million, primarily consisting of consulting, legal, tax and other professional advisory services associated with the strategic actions.

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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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