Teleflex Inc 8-K, filed Nov 21, 2022
Teleflex Inc (TFX)
8-K
2022-11-21
For: 2022-11-15
View Original
Added on
April 07, 2026
About this 8-K
Teleflex Inc filed this 8-K on November 21, 2022, reporting on events of November 15, 2022.
Items reported
- Item 2.05: Exit or restructuring costs
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Item 2.05. Costs Associated with Exit or Disposal Activities.
On November 15, 2022, Teleflex Incorporated (the “Company”) initiated a strategic restructuring plan designed to improve operating performance and position the organization to deliver long-term durable growth by creating efficiencies that align with the Company’s high growth strategic objectives (the “2022 restructuring plan”). The plan, which was developed to offset increasing cost and inflationary pressures in the healthcare industry, primarily involves the relocation of certain manufacturing operations to existing lower-cost locations in addition to the streamlining of various business functions across the organization and related workforce reductions. These actions are expected to be substantially completed during 2023.
The Company estimates that it will incur aggregate pre-tax restructuring and restructuring related charges in connection with the 2022 restructuring plan of $31 million to $40 million, most of which the Company expects to incur in 2023. The Company estimates that $26 million to $32 million of these charges will result in cash outlays, most of which are expected to be made in 2023. Additionally, the Company expects to incur approximately $2 million in aggregate capital expenditures under the plan, most of which is expected to be incurred during 2023.
The following table provides a summary of the costs estimates by major type of expense associated with the 2022 restructuring plan.
| Plan expense estimates: | |||||||||||
| Termination benefits | $18 million to $22 million | ||||||||||
Other costs(1) | 1 million to 1 million | ||||||||||
| Restructuring charges | 19 million to 23 million | ||||||||||
Restructuring related charges(2) | 12 million to 17 million | ||||||||||
| Total restructuring and restructuring related charges | $31 million to $40 million | ||||||||||
1) Includes facility closure and outplacement costs.
2) Restructuring related charges represent costs that are directly related to the programs and principally comprise costs to transfer manufacturing operations to the existing lower-cost locations, project management costs and accelerated depreciation. The majority of the restructuring related charges are expected to be recognized within cost of goods sold.
The Company currently expects to begin realizing plan-related savings in 2023 and expects to achieve annual pre-tax savings of $21 million to $23 million once the plan is fully implemented.
As the 2022 restructuring plan progresses, management will reevaluate the estimated expenses and charges set forth above, and may revise its estimates, as appropriate, consistent with GAAP.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: November 21, 2022 | TELEFLEX INCORPORATED By: /s/ Liam J. Kelly Name: Liam J. Kelly Title: Chairman, President and Chief Executive Officer | ||||