Subsequent event

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent event

Subsequent event

2024 Footprint realignment plan

In May 2024, we committed to a restructuring plan primarily involving the relocation of select manufacturing operations to existing lower-cost locations, the optimization of specific product portfolios through targeted rationalization efforts, the relocation of certain integral product development and manufacturing support functions and related workforce reductions (the “2024 Footprint realignment plan"). These actions will commence in the second quarter of 2024 and are expected to be substantially completed by the end of 2025.

The following table provides a summary of our estimates of restructuring and restructuring related charges by major type of expense associated with the 2024 Footprint realignment plan:

	Total estimated amount expected to be incurred
Program expense estimates:	(Dollars in millions)
Restructuring charges (1)	$13 million to $16 million
Restructuring related charges (2)	$20 million to $24 million
Total restructuring and restructuring related charges	$33 million to $40 million

(1)Substantially all of the charges consist of employee termination benefit costs.

(2)Consists of pre-tax charges related to accelerated depreciation and other costs directly related to the plan, primarily project management costs and costs to relocate manufacturing operations and support functions to the new locations. Substantially all of the charges are expected to be recognized within costs of goods sold.

We expect the restructuring and restructuring related charges will result in future cash outflows ranging from $26 million to $32 million, with the majority anticipated to materialize between 2025 and 2026. Furthermore, we expect to incur $12 million to $15 million in aggregate capital expenditures under the plan, with the bulk of these expenses expected to occur during 2024 and 2025.