Subsequent events

Segment change

During the first quarter 2019, the chief operating decision maker, or CODM, (the CEO) changed the manner in which he reviews financial information for purposes of assessing business performance and allocating resources by focusing on the geographic location of all non-OEM operations. As a result, the Company changed its segment presentation. Specifically, the Vascular North America, Interventional North America, Anesthesia North America, Surgical North America, Interventional Urology North America, Respiratory North America and Latin America operating segments were combined into a new Americas segment. The Company now has four segments: Americas, EMEA, Asia and OEM.

2019 Footprint realignment plan

In February 2019, the Company initiated a restructuring plan primarily involving the relocation of certain manufacturing operations to existing lower-cost locations and related workforce reductions (the “2019 Footprint realignment plan"). These actions commenced in the first quarter 2019 and are expected to be substantially completed during 2022. The following table provides a summary of the Company’s cost estimates by major type of expense associated with the 2019 Footprint realignment plan:



Type of expense	Total estimated amount expected to be incurred
Termination benefits	$19 million to $23 million
Other costs ₍₁₎	$1 million to $2 million
Restructuring charges	$20 million to $25 million
Restructuring related charges ₍₂₎	$36 million to $45 million
Total restructuring and restructuring related charges	$56 million to $70 million


(1)	Includes contract termination costs as well as facility closure and other exit costs (employee and equipment relocation costs and outplacement).


(2)	Consists of estimated pre-tax charges related to costs directly related to the plan, primarily costs to transfer manufacturing operations to the new locations as well as accelerated depreciation of $3.0 million to $4.0 million. Most of the charges are expected to be recognized within costs of goods sold.

The Company estimates $53 million to $66 million of the restructuring and restructuring related charges will result in future cash outlays. Additionally, the Company expects that it will incur $29 million to $35 million in aggregate capital expenditures under the plan. The Company expects to incur most of these charges and cash outlays prior to 2021.

As the 2019 Footprint realignment plan progresses, management will reevaluate the estimated expenses and charges set forth above, and may revise its estimates, as appropriate, consistent with GAAP.