Restructuring

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring

Note 4. Restructuring

We initiate restructuring plans to leverage economies of scale, streamline distribution and logistics, and strengthen operational and administrative effectiveness in order to reduce overall costs.

During the second quarter of 2022, management committed to implement a cost-optimization and cost reduction program to adapt to current economic conditions, which includes a workforce reduction to be completed by mid-2023. We recognized a charge of $4.1 million and $4.6 million during the three and nine months ended September 30, 2022, respectively. The total estimated restructuring costs associated with the plan are approximately $10.0 million including employee termination benefits, consulting fees and contract termination costs.

The following table provides a reconciliation of the beginning and ending balance of the accruals and other reserves recorded in connection with our restructuring plans included within accrued liabilities and other and other long-term liabilities on the condensed consolidated balance sheet (in thousands):

Balance at December 31, 2021 (1)	$	836
Charges	4,608
Cash payments	(1,831)
Balance at September 30, 2022	$	3,613

(1)Represents restructuring plans initiated prior to 2022.

The following table presents restructuring expense by reportable segment (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cardiopulmonary	$	371	$	53	$	390	$	2,882
Neuromodulation	2,328		(28)		2,278		1,493
Advanced Circulatory Support	739		—		739		—
Other	669		63		1,201		5,406
Total (1)	$	4,107	$	88	$	4,608	$	9,781

(1)Restructuring expense is included within other operating expenses on the condensed consolidated statements of income (loss).