Restructuring and impairment charges (credits) (Tables)

6 Months Ended

Jun. 28, 2020

Restructuring and Related Activities [Abstract]

Summary Of Current Cost Estimates By Major Type Of Cost Table

The following tables provide a summary of our cost estimates and other information associated with these ongoing Footprint realignment plans:

	2019 Footprint realignment plan (3)	2018 Footprint realignment plan	2014 Footprint realignment plan (4)
Program expense estimates:	(Dollars in millions)
Termination benefits	$16 to $20	$60 to $70	$12 to $13
Other costs (1)	2 to 2	2 to 4	1 to 2
Restructuring charges	18 to 22	62 to 74	13 to 15
Restructuring related charges (2)	40 to 45	40 to 59	38 to 40
Total restructuring and restructuring related charges	$58 to $67	$102 to $133	$51 to $55
Other program estimates:
Expected cash outlays	$55 to $63	$99 to $127	$42 to $46
Expected capital expenditures	$27 to $33	$19 to $23	$25 to $26
Other program information:
Period initiated	February 2019	May 2018	April 2014
Estimated period of substantial completion	2022	2022 (5)	2022
Aggregate restructuring charges	$15.0	$62.1	$13.4
Restructuring reserve:
Balance as of June 28, 2020	$12.4	$50.5	$3.7
Restructuring related charges incurred:
Three Months Ended June 28, 2020	$3.9	$1.5	$0.8
Six Months Ended June 28, 2020	$6.4	$2.7	$1.7
Aggregate restructuring related charges	$13.0	$9.9	$33.9

(1)Includes facility closure, employee relocation, equipment relocation and outplacement costs.

(2)Restructuring related charges represent costs that are directly related to the programs and principally constitute costs to transfer manufacturing operations to the existing lower-cost locations, project management costs and accelerated depreciation. The 2018 Footprint realignment plan also includes a charge associated with our exit from the facilities that is expected to be imposed by the taxing authority in the affected jurisdiction. Excluding this tax charge, substantially all of the restructuring related charges are expected to be recognized within cost of goods sold.

(3)We refined the disclosed ranges for the program expense and other program estimates in consideration of the progress made to date as well as the actions remaining.

(4)We delayed the timing of substantial completion from our prior estimate of 2021 due to an extension in the development and qualification timeline, identified during the second quarter of 2020, for a component to be included in certain of our kits sold by our anesthesia business in North America. The shift in timing also resulted in an increase in the total program cost estimate and related cash outlays and as a result, we increased the high end of the ranges by $3 million. With respect to capital expenditures, we have also refined the range.

(5)We accelerated the timing of substantial completion from our prior estimate of 2024 to take advantage of an opportunity we identified during the second quarter of 2020 to accelerate the recognition of estimated savings.

Restructuring and Other Impairment Charges

Three Months Ended June 28, 2020
	Termination benefits		Other costs (1)		Total
	(Dollars in thousands)
2020 Workforce reduction plan	$	10,564	$	—	$	10,564
2019 Footprint realignment plan	323		82		405
2018 Footprint realignment plan	7,545		52		7,597
Other restructuring programs (2)	169		270		439
Restructuring charges	$	18,601	$	404	$	19,005

Three Months Ended June 30, 2019
	Termination benefits		Other costs (1)		Total
	(Dollars in thousands)
2019 Footprint realignment plan	$	(459)	$	30	$	(429)
2018 Footprint realignment plan	(2,275)		134		(2,141)
Other restructuring programs (3)	62		312		374
Restructuring charges (credits)	(2,672)		476		(2,196)
Asset impairment charges	—		3,881		3,881
Restructuring and impairment charges	$	(2,672)	$	4,357	$	1,685

Six Months Ended June 28, 2020
	Termination benefits		Other costs (1)		Total
	(Dollars in thousands)
2020 Workforce reduction plan	$	10,564	$	—	$	10,564
2019 Footprint realignment plan	1,152		91		1,243
2018 Footprint realignment plan	7,859		133		7,992
Other restructuring programs (2)	62		490		552
Restructuring charges	$	19,637	$	714	$	20,351

Six Months Ended June 30, 2019
	Termination benefits		Other costs (1)		Total
	(Dollars in thousands)
2019 Footprint realignment plan	$	12,516	$	30	$	12,546
2018 Footprint realignment plan	(1,838)		708		(1,130)
Other restructuring programs (3)	188		565		753
Restructuring charges	10,866		1,303		12,169
Asset impairment charges	—		6,911		6,911
Restructuring and impairment charges	$	10,866	$	8,214	$	19,080

(1) Other costs include facility closure, contract termination and other exit costs.

(2) Includes program initiated during third quarter of 2019 as well as the 2016 and 2014 Footprint realignment plans.

(3) Includes the Vascular Solutions integration program (initiated in 2017) as well as the 2016 and 2014 Footprint realignment plans.