UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 26, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                    .

Commission file number 1-5353

TELEFLEX INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware	23-1147939
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

550 E. Swedesford Rd., Suite 400 Wayne, PA 19087

(Address of principal executive offices and zip code)

(610) 225-6800

(Registrant’s telephone number, including area code)

(None)

(Former Name, Former Address and Former Fiscal Year,

If Changed Since Last Report)

Securities registered pursuant to Section 12(b) of the Act:
	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
	Common Stock, par value $1.00 per share	TFX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes   ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ☐    No  ☒

The registrant had 46,905,289 shares of common stock, par value $1.00 per share, outstanding as of July 26, 2022.

TELEFLEX INCORPORATED

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED JUNE 26, 2022

TABLE OF CONTENTS

		Page
PART I — FINANCIAL INFORMATION
Item 1:	Financial Statements (Unaudited):	2
	Condensed Consolidated Statements of Income	2
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Cash Flows	5
	Condensed Consolidated Statements of Changes in Equity	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	24
Item 4:	Controls and Procedures	24
PART II — OTHER INFORMATION
Item 1:	Legal Proceedings	26
Item 1A:	Risk Factors	26
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3:	Defaults Upon Senior Securities	26
Item 4:	Mine Safety Disclosures	26
Item 5:	Other Information	26
Item 6:	Exhibits	27
SIGNATURES		28

1

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
	(Dollars and shares in thousands, except per share)
Net revenues	$	704,542	$	713,473	$	1,346,257	$	1,347,398
Cost of goods sold	315,709		315,917		611,191		605,315
Gross profit	388,833		397,556		735,066		742,083
Selling, general and administrative expenses	216,825		224,159		420,757		427,307
Research and development expenses	36,934		33,283		73,294		63,230
Restructuring and impairment (credits) charges	(83)		11,494		2,322		19,492
Income from continuing operations before interest and taxes	135,157		128,620		238,693		232,054
Interest expense	11,419		16,171		21,837		32,969
Interest income	(229)		(232)		(451)		(891)
Loss on extinguishment of debt	—		12,986		—		12,986
Income from continuing operations before taxes	123,967		99,695		217,307		186,990
Taxes on income from continuing operations	18,412		16,412		34,385		28,840
Income from continuing operations	105,555		83,283		182,922		158,150
Operating loss from discontinued operations	(54)		(46)		(348)		(47)
Tax benefit on operating loss from discontinued operations	(13)		(11)		(81)		(11)
Loss from discontinued operations	(41)		(35)		(267)		(36)
Net income	$	105,514	$	83,248	$	182,655	$	158,114
Earnings per share:
Basic:
Income from continuing operations	$	2.25	$	1.78	$	3.90	$	3.39
Loss from discontinued operations	—		—		—		(0.01)
Net income	$	2.25	$	1.78	$	3.90	$	3.38
Diluted:
Income from continuing operations	$	2.23	$	1.76	$	3.86	$	3.34
Loss from discontinued operations	—		—		—		(0.01)
Net income	$	2.23	$	1.76	$	3.86	$	3.33
Weighted average common shares outstanding
Basic	46,901		46,741		46,889		46,719
Diluted	47,347		47,433		47,374		47,420

The accompanying notes are an integral part of the condensed consolidated financial statements.

2

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

	Three Months Ended				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
	(Dollars in thousands)
Net income	$	105,514	$	83,248	$	182,655	$	158,114
Other comprehensive (loss) income, net of tax:
Foreign currency translation, net of tax of $(6,688), $1,002, $(7,823), and $404 for the three and six months periods, respectively	(45,053)		6,080		(68,382)		(17,995)
Pension and other postretirement benefit plans adjustment, net of tax of $(647), $(390), $(1,146), and $(903) for the three and six months periods, respectively	2,026		1,298		3,612		2,909
Derivatives qualifying as hedges, net of tax of $(104), $39, $(134), and $72 for the three and six months periods, respectively	2,577		397		3,034		424
Other comprehensive (loss) income, net of tax:	(40,450)		7,775		(61,736)		(14,662)
Comprehensive income	$	65,064	$	91,023	$	120,919	$	143,452

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 26, 2022		December 31, 2021
	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	308,121	$	445,084
Accounts receivable, net	415,297		383,569
Inventories	510,531		477,643
Prepaid expenses and other current assets	112,595		117,277
Prepaid taxes	38,801		5,545
Total current assets	1,385,345		1,429,118
Property, plant and equipment, net	429,372		443,758
Operating lease assets	118,620		129,653
Goodwill	2,461,083		2,504,202
Intangible assets, net	2,226,875		2,289,067
Deferred tax assets	6,243		6,820
Other assets	104,308		69,104
Total assets	$	6,731,846	$	6,871,722
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	110,000	$	110,000
Accounts payable	121,418		118,236
Accrued expenses	151,715		163,441
Payroll and benefit-related liabilities	114,384		143,657
Accrued interest	4,751		5,209
Income taxes payable	52,174		83,943
Other current liabilities	56,004		55,633
Total current liabilities	610,446		680,119
Long-term borrowings	1,605,954		1,740,102
Deferred tax liabilities	379,931		370,124
Pension and postretirement benefit liabilities	42,097		45,185
Noncurrent liability for uncertain tax positions	8,543		8,646
Noncurrent operating lease liabilities	104,702		116,033
Other liabilities	127,443		156,765
Total liabilities	2,879,116		3,116,974
Commitments and contingencies
Total shareholders' equity	3,852,730		3,754,748
Total liabilities and shareholders' equity	$	6,731,846	$	6,871,722

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	June 26, 2022		June 27, 2021
	(Dollars in thousands)
Cash flows from operating activities of continuing operations:
Net income	$	182,655	$	158,114
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	267		36
Depreciation expense	33,499		35,982
Intangible asset amortization expense	81,137		83,867
Deferred financing costs and debt discount amortization expense	2,103		2,388
Loss on extinguishment of debt	—		12,986
Fair value step up of acquired inventory sold	—		3,993
Changes in contingent consideration	145		11,428
Asset impairment charges	1,497		6,739
Stock-based compensation	12,801		11,693
Deferred income taxes, net	937		1,050
Payments for contingent consideration	(2,722)		—
Interest benefit on swaps designated as net investment hedges	(10,145)		(9,126)
Other	(1,779)		(16,679)
Changes in assets and liabilities, net of effects of acquisitions and disposals:
Accounts receivable	(43,939)		(23,159)
Inventories	(48,682)		(13,648)
Prepaid expenses and other assets	15,464		(16,551)
Accounts payable, accrued expenses and other liabilities	(38,722)		32,625
Income taxes receivable and payable, net	(82,657)		(16,663)
Net cash provided by operating activities from continuing operations	101,859		265,075
Cash flows from investing activities of continuing operations:
Expenditures for property, plant and equipment	(32,445)		(36,659)
Proceeds from sale of business and assets	530		404
Payments for businesses and intangibles acquired, net of cash acquired	(22,971)		(3,539)
Deposits	—		(1,250)
Net interest proceeds on swaps designated as net investment hedges	10,314		9,288
Net cash used in investing activities from continuing operations	(44,572)		(31,756)
Cash flows from financing activities of continuing operations:
Proceeds from new borrowings	—		400,000
Reduction in borrowings	(135,500)		(575,000)
Debt extinguishment, issuance and amendment fees	—		(9,774)
Net (payments) proceeds from share based compensation plans and related tax impacts	(4,366)		6,339
Payments for contingent consideration	(3,012)		(30,489)
Dividends paid	(31,892)		(31,793)
Net cash used in financing activities from continuing operations	(174,770)		(240,717)
Cash flows from discontinued operations:
Net cash used in operating activities	(280)		(371)
Net cash used in discontinued operations	(280)		(371)
Effect of exchange rate changes on cash and cash equivalents	(19,200)		(6,330)
Net decrease in cash and cash equivalents	(136,963)		(14,099)
Cash and cash equivalents at the beginning of the period	445,084		375,880
Cash and cash equivalents at the end of the period	$	308,121	$	361,781

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

	Common Stock			Additional Paid In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock			Total
	Shares	Dollars								Shares	Dollars
	(Dollars and shares in thousands, except per share)
Balance at December 31, 2021	47,929	$	47,929	$	693,090	$	3,517,954	$	(346,959)	1,069	$	(157,266)	$	3,754,748
Net income						77,141							77,141
Cash dividends ($0.34 per share)						(15,946)							(15,946)
Other comprehensive loss								(21,286)					(21,286)
Shares issued under compensation plans	5	5		(950)						(27)	894		(51)
Deferred compensation	—	—		100						(5)	828		928
Balance at March 27, 2022	47,934	47,934		692,240		3,579,149		(368,245)		1,037	(155,544)		3,795,534
Net income						105,514							105,514
Cash dividends ($0.34 per share)						(15,946)							(15,946)
Other comprehensive income								(40,450)					(40,450)
Shares issued under compensation plans	6	6		7,918						(2)	151		8,075
Deferred compensation	—	—		(2)						—	5		3
Balance at June 26, 2022	47,940	$	47,940	$	700,156	$	3,668,717	$	(408,695)	1,035	$	(155,388)	$	3,852,730

	Common Stock			Additional Paid In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Treasury Stock			Total
	Shares	Dollars								Shares	Dollars
	(Dollars and shares in thousands, except per share)
Balance at December 31, 2020	47,812	$	47,812	$	652,305	$	3,096,228	$	(297,298)	1,132	$	(162,590)	$	3,336,457
Net income						74,866							74,866
Cash dividends ($0.34 per share)						(15,893)							(15,893)
Other comprehensive loss								(22,437)					(22,437)
Shares issued under compensation plans	18	18		1,993						(28)	99		2,110
Deferred compensation	—	—		447						(4)	241		688
Balance at March 28, 2021	47,830	47,830		654,745		3,155,201		(319,735)		1,100	(162,250)		3,375,791
Net income						83,248							83,248
Cash dividends ($0.34 per share)						(15,900)							(15,900)
Other comprehensive income								7,775					7,775
Shares issued under compensation plans	52	52		15,132						(1)	16		15,200
Deferred compensation	—	—		—						—	(12)		(12)
Balance as of June 27, 2021	47,882	$	47,882	$	669,877	$	3,222,549	$	(311,960)	1,099	$	(162,246)	$	3,466,102

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 (all tabular amounts in thousands unless otherwise noted)

Note 1 — Basis of presentation

The accompanying unaudited condensed consolidated financial statements of Teleflex Incorporated and its subsidiaries (“we,” “us,” “our" and “Teleflex”) are prepared on the same basis as its annual consolidated financial statements.

In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for the fair statement of the financial statements for interim periods in accordance with accounting principles generally accepted in the United States of America ("GAAP") and Rule 10-01 of Securities and Exchange Commission ("SEC") Regulation S-X, which sets forth the instructions for the form and content of presentation of financial statements included in Form 10-Q. The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The results of operations for the periods reported are not necessarily indicative of those that may be expected for a full year.

In accordance with applicable accounting standards and as permitted by Rule 10-01 of Regulation S-X, the accompanying condensed consolidated financial statements do not include all of the information and footnote disclosures that are required to be included in our annual consolidated financial statements. Therefore, our quarterly condensed consolidated financial statements should be read in conjunction with our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021.

Note 2 — Recently issued accounting standards

From time to time, new accounting guidance is issued by the FASB or other standard setting bodies that is adopted by us as of the effective date or, in some cases where early adoption is permitted, in advance of the effective date. We have assessed the recently issued guidance that is not yet effective and believe the new guidance will not have a material impact on the consolidated results of operations, cash flows or financial position.

Note 3 — Net revenues

We primarily generate revenue from the sale of medical devices including single use disposable devices and, to a lesser extent, reusable devices, instruments and capital equipment. Revenue is recognized when obligations under the terms of a contract with our customer are satisfied; this occurs upon the transfer of control of the products. Generally, transfer of control to the customer occurs at the point in time when our products are shipped from the manufacturing or distribution facility. For our Original Equipment and Development Services ("OEM") segment, most revenue is recognized over time because the OEM segment generates revenue from the sale of custom products that have no alternative use and we have an enforceable right to payment to the extent that performance has been completed. We market and sell products through our direct sales force and distributors to customers within the following end markets: (1) hospitals and healthcare providers; (2) other medical device manufacturers; and (3) home care providers, which constituted 88%, 10% and 2% of consolidated net revenues, respectively, for the six months ended June 26, 2022. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. With respect to the custom products sold in the OEM segment, revenue is measured using the units produced output method. Payment is generally due 30 days from the date of invoice.

7

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The following table disaggregates revenue by global product category for the three and six months ended June 26, 2022 and June 27, 2021.

	Three Months Ended				Six Months Ended
	June 26, 2022		June 27, 2021		June 26, 2022		June 27, 2021
Vascular access	$	163,907	$	167,739	$	330,041	$	331,712
Anesthesia	104,695		95,426		191,652		180,283
Interventional	114,342		112,082		211,201		208,255
Surgical	99,642		98,185		189,344		178,571
Interventional urology	79,818		92,243		154,713		165,607
OEM	70,003		60,956		127,659		114,445
Other (1)	72,135		86,842		141,647		168,525
Net revenues (2)	$	704,542	$	713,473	$	1,346,257	$	1,347,398

(1)Includes revenues generated from sales of our respiratory and urology products (other than interventional urology products). Certain product lines within the respiratory product category were sold during 2021. See Note 4 for additional information related to the Respiratory business divestiture.

(2)The product categories listed above are presented on a global basis, while each of our reportable segments other than the OEM reportable segment are defined based on the geographic location of its operations; the OEM reportable segment operates globally. Each of the geographically based reportable segments include net revenues from each of the non-OEM product categories listed above.

Note 4 — Acquisition and Divestiture

Asset acquisition

On June 13, 2022, we acquired a privately-owned company that designed a catheter product for an initial payment of $22.8 million with the potential to make additional payments up to $26.2 million if certain commercial and revenue goals are met. The acquisition, which is expected to complement our interventional product portfolio, principally consisted of a proprietary catheter design and other related intellectual property, being amortized over a useful life of 15 years.

Divestiture

On May 15, 2021, we entered into a definitive agreement to sell certain product lines within our global respiratory product portfolio (the "Divested respiratory business") to Medline Industries, Inc. (“Medline”) for consideration of $286.0 million, reduced by $12 million in working capital not transferring to Medline, which is subject to customary post close adjustments (the "Respiratory business divestiture"). In connection with the Respiratory business divestiture, we also entered into several ancillary agreements with Medline to help facilitate the transfer of the business, which provide for transition support, quality, supply and manufacturing services, including a manufacturing and supply transition agreement (the "MSTA").

On June 28, 2021, the first day of the third quarter of 2021, we completed the initial phase of the Respiratory business divestiture, pursuant to which we received cash proceeds of $259 million. The second phase of the Respiratory business divestiture will occur once we transfer certain additional manufacturing assets to Medline and is expected to occur prior to the end of 2023. We plan to recognize the remaining consideration, and any gain on sale resulting from the completion of the second phase of the divestiture, when it becomes realizable.

Net revenues attributable to our divested respiratory business recognized prior to the Respiratory business divestiture were included within each of our geographic segments and were $29.6 million and $60.7 million for the three and six months ended June 27, 2021, respectively. For the three and six months ended June 26, 2022, we recognized $20.3 million and $41.4 million, respectively, in net revenues attributed to services provided to Medline in accordance with the MSTA, which are presented within our Americas reporting segment.

8

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Note 5 — Restructuring and impairment charges

We have ongoing restructuring initiatives consisting of a plan, initiated in connection with the Respiratory business divestiture described in Note 4, designed to separate the manufacturing operations to be transferred to Medline from those that will remain with Teleflex (the “Respiratory divestiture plan”), and plans related to the relocation of manufacturing operations to existing lower-cost locations and related workforce reductions (referred to as the 2019 and 2018 Footprint realignment plans). The following tables provide a summary of our cost estimates and other information associated with these plans:

	Respiratory divestiture plan	2019 Footprint realignment plan	2018 Footprint realignment plan
Plan expense estimates:	(Dollars in millions)
Termination benefits	$5 to $8	$14 to $15	$60 to $65
Other costs (1)	— to —	2 to 2	3 to 4
Restructuring charges	5 to 8	16 to 17	63 to 69
Restructuring related charges (2)	19 to 22	38 to 43	47 to 59
Total restructuring and restructuring related charges	$24 to $30	$54 to $60	$110 to $128
Other plan estimates:
Expected cash outlays	$24 to $30	$48 to $54	$99 to $122
Expected capital expenditures	$22 to $28	$31 to $33	$15 to $16
Other plan information:
Period initiated	May 2021	February 2019	May 2018
Estimated period of substantial completion	2023	2022	2022
Aggregate restructuring charges	$3.0	$14.5	$63.1
Restructuring reserve:
Balance as of June 26, 2022	$2.8	$1.7	$38.8
Restructuring related charges incurred:
Three Months Ended June 26, 2022	$2.4	$1.8	$3.2
Six Months Ended June 26, 2022	$4.4	$2.9	$5.5
Aggregate restructuring related charges	$7.7	$37.1	$32.9

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

(2)Restructuring related charges represent costs that are directly related to the plans 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.

In 2014, we initiated a restructuring plan involving the consolidation of operations and a related reduction in workforce at certain facilities, in addition to the relocation of manufacturing operations from certain higher-cost locations to existing lower-cost locations (the "2014 Footprint realignment plan”). The plan is substantially complete and as a result, we expect future restructuring expenses associated with the plan, if any, to be immaterial.

9

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Restructuring and impairment charges recognized for the three and six months ended June 26, 2022 and June 27, 2021 consisted of the following:

Three Months Ended June 26, 2022
	Termination Benefits		Other Costs (1)		Total
Respiratory divestiture plan	$	129	$	31	$	160
2019 Footprint realignment plan	(400)		21		(379)
2018 Footprint realignment plan	153		233		386
Other restructuring programs (2)	(406)		156		(250)
Restructuring (credits) charges	$	(524)	$	441	$	(83)

Three Months Ended June 27, 2021
	Termination Benefits		Other Costs (1)		Total
Respiratory divestiture plan	$	2,540	$	1	$	2,541
2021 Restructuring plan	129		23		152
2019 Footprint realignment plan	(301)		91		(210)
2018 Footprint realignment plan	1,459		92		1,551
Other restructuring programs (3)	(4)		725		721
Restructuring charges	3,823		932		4,755
Asset impairment charges	—		6,739		6,739
Restructuring and impairment charges	$	3,823	$	7,671	$	11,494

Six Months Ended June 26, 2022
	Termination benefits		Other costs (1)		Total
Respiratory divestiture plan	$	235	$	45	$	280
2019 Footprint realignment plan	(1,070)		45		(1,025)
2018 Footprint realignment plan	311		295		606
Other restructuring plans (2)	726		238		964
Restructuring charges	202		623		825
Asset impairment charges	—		1,497		1,497
Restructuring and impairment charges	$	202	$	2,120	$	2,322

Six Months Ended June 27, 2021
	Termination benefits		Other costs (1)		Total
Respiratory divestiture plan	$	2,540	$	1	$	2,541
2021 Restructuring plan	6,889		23		6,912
2019 Footprint realignment plan	40		196		236
2018 Footprint realignment plan	1,726		137		1,863
Other restructuring plans (3)	(170)		1,371		1,201
Restructuring charges	11,025		1,728		12,753
Asset impairment charges	—		6,739		6,739
Restructuring and impairment charges	$	11,025	$	8,467	$	19,492

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

(2) Includes activity primarily related to a restructuring plan initiated in the first quarter of 2022 that is designed to relocate manufacturing operations at certain of our facilities, the 2021 Restructuring plan and the 2014 Footprint realignment plan.

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

10

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Note 6 — Inventories

Inventories as of June 26, 2022 and December 31, 2021 consisted of the following:

	June 26, 2022		December 31, 2021
Raw materials	$	154,866	$	146,433
Work-in-process	89,953		81,503
Finished goods	265,712		249,707
Inventories	$	510,531	$	477,643

Note 7 — Goodwill and other intangible assets

The following table provides information relating to changes in the carrying amount of goodwill by reportable operating segment for the six months ended June 26, 2022:

	Americas		EMEA		Asia		OEM		Total
December 31, 2021	$	1,676,224	$	492,149	$	223,819	$	112,010	$	2,504,202
Currency translation adjustment	443		(32,520)		(11,042)		—		(43,119)
June 26, 2022	$	1,676,667	$	459,629	$	212,777	$	112,010	$	2,461,083

The gross carrying amount of, and accumulated amortization relating to, intangible assets as of June 26, 2022 and December 31, 2021 were as follows:

	Gross Carrying Amount				Accumulated Amortization
	June 26, 2022		December 31, 2021		June 26, 2022		December 31, 2021
Customer relationships	$	1,318,401	$	1,328,611	$	(466,410)	$	(441,059)
In-process research and development	26,921		28,158		—		—
Intellectual property	1,469,917		1,440,643		(600,805)		(560,740)
Distribution rights	23,069		23,434		(20,659)		(20,630)
Trade names	540,723		549,269		(64,701)		(59,249)
Non-compete agreements	21,254		22,783		(20,835)		(22,153)
	$	3,400,285	$	3,392,898	$