Restructuring, Strategic Transaction and Integration (Notes)

9 Months Ended

Sep. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring, Strategic Transaction and Integration

    Restructuring, strategic transaction and integration expenses were $14.4 million and $2.4 million for the three months ended September 30, 2022 and 2021, respectively, and $61.8 million and $9.0 million for nine months ended September 30, 2022 and 2021, respectively.

Restructuring

    During the three and nine months ended September 30, 2022, restructuring charges were $2.4 million and $7.3 million, respectively, and were related to severance costs. During the third quarter 2021 we adjusted certain facility restructuring liabilities by $2.0 million to reflect actual amounts owed which resulted in net restructuring credits of $(1.9) million and $(1.8) million for the three and nine months ended September 30, 2021, respectively.    

The following table summarizes the activity in our restructuring-related accrual by major type of cost for the period ended September 30, 2022 (in thousands):

	Severance Pay and Benefits		Retention and Facility Closure Costs		Total
Accrued balance, January 1, 2022	$	499	$	165	$	664
Acquired restructuring liabilities	5,796		1,740		7,536
Charges incurred	3,222		—		3,222
Payments	(2,030)		—		(2,030)
Currency translation	(147)		(40)		(187)
Accrued balance, March 31, 2022	$	7,340	$	1,865	$	9,205
Charges incurred	1,710		—		1,710
Payments	(3,352)		(212)		(3,564)
Currency translation	(256)		(94)		(350)
Other adjustments	(38)		—		(38)
Accrued balance, June 30, 2022	$	5,404	$	1,559	$	6,963
Charges incurred	2,428		—		2,428
Payments	(2,181)		(19)		(2,200)
Currency translation	(310)		(114)		(424)
Accrued balance, September 30, 2022	$	5,341	$	1,426	$	6,767

Strategic Transaction and Integration Expenses

    We incurred and expensed $12.0 million and $4.3 million in strategic transaction and integration expenses during the three months ended September 30, 2022 and 2021, respectively, and we incurred and expensed $54.5 million and $10.8 million in strategic transaction and integration expenses during the nine months ended September 30, 2022 and 2021, respectively, which are included in restructuring, strategic transaction and integration expenses in our condensed consolidated statements of operations. The strategic transaction and integration expenses during the three and nine months ended September 30, 2022 were primarily related to transaction and integration expenses associated with our acquisition of Smiths Medical on January 6, 2022 (see Note 3: Acquisitions) which primarily included legal expenses, bank fees and employee costs. The nine months ended September 30, 2022 also included a United Kingdom stamp tax. The strategic transaction and integration expenses for the three and nine months ended September 30, 2021 were primarily related to integration costs associated with acquisitions, the Hospira Infusion Systems ("HIS") earn-out dispute with Pfizer and one-time costs incurred to comply with regulatory initiatives and transaction costs related to the Smiths Medical transaction.