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Restructuring and impairment charges
 9 Months Ended
Sep. 26, 2021
Restructuring and Related Activities [Abstract]  
Restructuring and impairment charges Restructuring and impairment charges
Respiratory divestiture plan
During the second quarter of 2021, in connection with the Respiratory business divestiture described in Note 4, we committed to a restructuring plan designed to separate the manufacturing operations to be transferred to Medline from those that will remain with Teleflex, which includes related workforce reductions (the “Respiratory divestiture plan”). The plan includes expanding certain of our existing locations to accommodate the transfer of capacity from the sites being transferred to Medline and replicating the manufacturing processes at alternate existing locations. We expect this plan will be substantially completed by the end of 2023. The following table provides a summary of our cost estimates by major type of expense associated with the Respiratory divestiture plan:
Total estimated amount expected to be incurred
Program expense estimates:(Dollars in millions)
Restructuring charges (1)
$5 million to $8 million
Restructuring related charges (2)
$19 million to $22 million
Total restructuring and restructuring related charges
$24 million to $30 million
(1)Substantially all of the charges consist of employee termination benefit costs.
(2)Consist of charges that are directly related to the Respiratory divestiture plan and principally constitute costs to transfer manufacturing operations to other locations and project management costs. Substantially all of the charges are expected to be recognized within costs of goods sold.
We expect substantially all of the restructuring and restructuring related charges will result in future cash outlays, the majority of which will be made in 2022 and 2023. Additionally, we expect to incur $22 million to $28 million in aggregate capital expenditures under the plan, which are expected to be incurred mostly in 2022 and 2023. As of September 26, 2021, we had a restructuring reserve of $2.6 million related to this plan, all of which related to termination benefits.
2021 Restructuring plan
During the first quarter of 2021, we committed to a restructuring plan designed to streamline various business functions across our segments. We estimate that we will incur aggregate pre-tax restructuring charges of $7 million to $9 million, consisting primarily of termination benefits. In addition, we expect to incur $3 million to $4 million in restructuring related charges, most of which are expected to be recognized in cost of goods sold. We expect this plan will be substantially completed by the end of 2021. As of September 26, 2021, we had a restructuring reserve of $4.1 million related to this plan, all of which related to termination benefits.
Footprint realignment plans
We have ongoing restructuring programs related to the relocation of manufacturing operations to existing lower-cost locations and related workforce reductions (referred to as the 2019, 2018 and 2014 Footprint realignment plans). The following tables provide a summary of our cost estimates and other information associated with these ongoing Footprint realignment plans:
2019 Footprint realignment plan2018 Footprint realignment plan2014 Footprint realignment plan
Program expense estimates:(Dollars in millions)
Termination benefits
$14 to $16
$60 to $70
$13 to $13
Other costs (1)
2 to 2
3 to 4
1 to 2
Restructuring charges
16 to 18
63 to 74
14 to 15
Restructuring related charges (2)
38 to 43
40 to 59
38 to 40
Total restructuring and restructuring related charges
$54 to $61
$103 to $133
$52 to $55
Other program estimates:
Expected cash outlays
$48 to $55
$99 to $127
$42 to $46
Expected capital expenditures
$28 to $33
$16 to $17
$26 to $27
Other program information:
Period initiatedFebruary 2019May 2018April 2014
Estimated period of substantial completion202220222022
Aggregate restructuring charges$15.6$62.1$13.8
Restructuring reserve:
Balance as of September 26, 2021$4.0$45.7$3.0
Restructuring related charges incurred:
Three Months Ended September 26, 2021$3.2$2.2$0.4
Nine Months Ended September 26, 2021$10.7$6.5$2.1
Aggregate restructuring related charges$31.8$23.2$38.1
(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.
Restructuring and impairment charges recognized for the three and nine months ended September 26, 2021 and September 27, 2020 consisted of the following:
Three Months Ended September 26, 2021
Termination benefits
Other costs (1)
Total
Respiratory divestiture plan$126 $(1)$125 
2021 Restructuring plan226 42 268 
2019 Footprint realignment plan9 86 95 
2018 Footprint realignment plan191 10 201 
Other restructuring programs (2)
60 210 270 
Restructuring charges$612 $347 $959 
Three Months Ended September 27, 2020
Termination benefits
Other costs (1)
Total
2020 Workforce reduction plan$(471)$255 $(216)
2019 Footprint realignment plan(785)368 (417)
2018 Footprint realignment plan(3,006)83 (2,923)
Other restructuring programs(151)48 (103)
Restructuring charges$(4,413)$754 $(3,659)
Nine Months Ended September 26, 2021
Termination benefits
Other costs (1)
Total
Respiratory divestiture plan$2,666 $— $2,666 
2021 Restructuring plan7,115 65 7,180 
2019 Footprint realignment plan49 282 331 
2018 Footprint realignment plan1,917 147 2,064 
Other restructuring programs (2)
(110)1,581 1,471 
Restructuring charges11,637 2,075 13,712 
Asset impairment charges— 6,739 6,739 
Restructuring and impairment charges$11,637 $8,814 $20,451 
Nine Months Ended September 27, 2020
Termination benefits
Other costs (1)
Total
2020 Workforce reduction plan$10,093 $255 $10,348 
2019 Footprint realignment plan367 459 826 
2018 Footprint realignment plan4,853 216 5,069 
Other restructuring programs(89)538 449 
Restructuring charges$15,224 $1,468 $16,692 
(1) Other costs include facility closure, contract termination and other exit costs.
(2) Includes the 2020 Workforce reduction plan, the program initiated during third quarter of 2019 and the 2014 Footprint realignment plan.
Impairment Charges
During the second quarter of 2021, we recorded impairment charges of $6.7 million related to our decision to abandon intellectual property and other assets primarily associated with our respiratory product portfolio that was not transferred to Medline as part of the Respiratory business divestiture described in Note 4.