Restructuring, Strategic Transaction and Integration (Notes)

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING, STRATEGIC TRANSACTION AND INTEGRATION

Restructuring, strategic transaction and integration expenses were $41.3 million, $71.4 million and $18.0 million in 2023, 2022 and 2021, respectively.

Restructuring

Restructuring charges net of any reversed accruals were $5.7 million, $9.7 million and $(1.8) million in 2023, 2022 and 2021, respectively, and are included in the above restructuring, strategic transaction and integration expenses in our consolidated statement of operations.

In 2023, we incurred restructuring charges primarily related to severance expenses. We adjusted certain facility and severance restructuring accrued balances, shown in the table below under "Other adjustments", to reverse certain accrued balances that will not be utilized.

In 2022, we incurred restructuring charges primarily related to severance in connection with the January 6, 2022 acquisition of Smiths Medical, see Note 2: Acquisitions.

In 2021, we adjusted certain facility restructuring liabilities by $2.0 million, shown in the table below under "Other adjustments," to reflect actual amounts owed which resulted in net restructuring credits of $(1.8) million.

The following table summarizes the activity in our restructuring-related accrual by major type of cost (in thousands):

	Severance Pay and Benefits		Retention and Facility Closure Costs		Total
Accrued balance, January 1, 2022	$	499	$	165	$	664
Acquired restructuring charges	5,796		1,740		7,536
Charges incurred	9,667		58		9,725
Payments	(11,083)		(268)		(11,351)
Currency translation	(425)		(188)		(613)
Other adjustments	(38)		—		(38)
Accrued balance, December 31, 2022	$	4,416	$	1,507	$	5,923
Charges incurred	5,521		1,189		6,710
Payments	(6,694)		(1,192)		(7,886)
Other adjustments(1)	(234)		(785)		(1,019)
Currency translation	(198)		38		(160)
Accrued balance, December 31, 2023	$	2,811	$	757	$	3,568

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(1)    Relates to accrued restructuring charges for estimated facility closure costs and severance costs that will not be utilized and were reversed during the year.

Strategic Transaction and Integration Expenses

We incurred $35.6 million, $61.7 million and $19.8 million in strategic transaction and integration expenses in 2023, 2022 and 2021, respectively, which are included in restructuring, strategic transaction and integration expenses in our consolidated statement of operations. The strategic transaction and integration expenses during 2023 were primarily related to consulting expenses and employee costs incurred to integrate our Smiths Medical business acquired in 2022. The strategic transaction and integration expenses during 2022 were primarily related to transaction and integration expenses associated with our acquisition of Smiths Medical on January 6, 2022 (see Note 2: Acquisitions) which primarily included legal expenses, bank fees, employee costs and a United Kingdom stamp tax. The strategic transaction and integration expenses during 2021 were related to integration costs associated with acquisitions, the Hospira Infusion Systems ("HIS") earn-out dispute with Pfizer, one-time costs incurred to comply with regulatory initiatives and transaction expenses incurred in connection with entering into a definitive agreement to acquire Smiths Medical.