10-Q

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 April 02, 2023

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 46,971,703 shares of common stock, par value $1.00 per share, outstanding as of May 2, 2023 .

TELEFLEX INCORPORATED

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTER ENDED APRIL 2, 2023

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	17
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4:	Controls and Procedures	22
PART II — OTHER INFORMATION
Item 1:	Legal Proceedings	23
Item 1A:	Risk Factors	23
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3:	Defaults Upon Senior Securities	23
Item 4:	Mine Safety Disclosures	23
Item 5:	Other Information	23
Item 6:	Exhibits	24
SIGNATURES		25

1

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	April 2, 2023		March 27, 2022
	(Dollars and shares in thousands, except per share)
Net revenues	$	710,932	$	641,715
Cost of goods sold	319,552		295,482
Gross profit	391,380		346,233
Selling, general and administrative expenses	232,716		203,932
Research and development expenses	41,469		36,360
Restructuring and impairment charges	2,221		2,405
Income from continuing operations before interest and taxes	114,974		103,536
Interest expense	18,337		10,418
Interest income	(843)		(222)
Income from continuing operations before taxes	97,480		93,340
Taxes on income from continuing operations	20,184		15,973
Income from continuing operations	77,296		77,367
Operating loss from discontinued operations	(711)		(294)
Tax benefit on operating loss from discontinued operations	(163)		(68)
Loss from discontinued operations	(548)		(226)
Net income	$	76,748	$	77,141
Earnings per share:
Basic:
Income from continuing operations	$	1.65	$	1.65
Loss from discontinued operations	(0.02)		—
Net income	$	1.63	$	1.65
Diluted:
Income from continuing operations	$	1.63	$	1.63
Loss from discontinued operations	(0.01)		—
Net income	$	1.62	$	1.63
Weighted average common shares outstanding
Basic	46,949		46,876
Diluted	47,285		47,402

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
	April 2, 2023		March 27, 2022
	(Dollars in thousands)
Net income	$	76,748	$	77,141
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax of $2,970 and $(1,136) for the three months periods, respectively	18,570		(23,329)
Pension and other postretirement benefit plans adjustment, net of tax of $(354) and $(499) for the three months periods, respectively	1,213		1,586
Derivatives qualifying as hedges, net of tax of $120 and $(30) for the three months periods, respectively	2,408		457
Other comprehensive income (loss), net of tax:	22,191		(21,286)
Comprehensive income	$	98,939	$	55,855

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

3

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	April 2, 2023		December 31, 2022
	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	264,138	$	292,034
Accounts receivable, net	410,020		408,834
Inventories	614,106		578,507
Prepaid expenses and other current assets	134,948		125,084
Prepaid taxes	4,842		6,524
Total current assets	1,428,054		1,410,983
Property, plant and equipment, net	458,861		447,205
Operating lease assets	126,773		131,211
Goodwill	2,547,840		2,536,730
Intangible assets, net	2,269,535		2,306,165
Deferred tax assets	6,479		6,402
Other assets	80,380		89,367
Total assets	$	6,917,922	$	6,928,063
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	87,500	$	87,500
Accounts payable	136,239		126,807
Accrued expenses	123,451		140,644
Payroll and benefit-related liabilities	102,081		133,092
Accrued interest	16,862		5,332
Income taxes payable	30,176		24,736
Other current liabilities	79,403		63,381
Total current liabilities	575,712		581,492
Long-term borrowings	1,549,474		1,624,023
Deferred tax liabilities	388,185		388,886
Pension and postretirement benefit liabilities	30,924		31,394
Noncurrent liability for uncertain tax positions	6,464		5,805
Noncurrent operating lease liabilities	115,838		120,437
Other liabilities	141,072		154,058
Total liabilities	2,807,669		2,906,095
Commitments and contingencies
Total shareholders' equity	4,110,253		4,021,968
Total liabilities and shareholders' equity	$	6,917,922	$	6,928,063

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

4

TELEFLEX INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
	April 2, 2023		March 27, 2022
	(Dollars in thousands)
Cash flows from operating activities of continuing operations:
Net income	$	76,748	$	77,141
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	548		226
Depreciation expense	18,287		17,317
Intangible asset amortization expense	41,540		40,597
Deferred financing costs and debt discount amortization expense	846		1,048
Changes in contingent consideration	2,447		(30)
Assets impairment charges	—		1,497
Stock-based compensation	7,015		5,302
Deferred income taxes, net	2,092		409
Interest benefit on swaps designated as net investment hedges	(5,108)		(4,848)
Other	(427)		(2,093)
Changes in assets and liabilities, net of effects of acquisitions and disposals:
Accounts receivable	1,339		(27,805)
Inventories	(30,099)		(19,852)
Prepaid expenses and other assets	2,752		4,830
Accounts payable, accrued expenses and other liabilities	(40,856)		(36,978)
Income taxes receivable and payable, net	7,225		5,341
Net cash provided by operating activities from continuing operations	84,349		62,102
Cash flows from investing activities of continuing operations:
Expenditures for property, plant and equipment	(21,835)		(13,078)
Proceeds from sale of business and assets	—		262
Payments for businesses and intangibles acquired, net of cash acquired	(64)		—
Net cash used in investing activities from continuing operations	(21,899)		(12,816)
Cash flows from financing activities of continuing operations:
Reduction in borrowings	(75,125)		—
Net payments from share based compensation plans and related tax impacts	(2,433)		(4,941)
Payments for contingent consideration	(64)		(73)
Dividends paid	(15,969)		(15,946)
Net cash used in financing activities from continuing operations	(93,591)		(20,960)
Cash flows from discontinued operations:
Net cash used in operating activities	(285)		(119)
Net cash used in discontinued operations	(285)		(119)
Effect of exchange rate changes on cash and cash equivalents	3,530		(6,635)
Net (decrease) increase in cash and cash equivalents	(27,896)		21,572
Cash and cash equivalents at the beginning of the period	292,034		445,084
Cash and cash equivalents at the end of the period	$	264,138	$	466,656

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, 2022	47,957	$	47,957	$	715,118	$	3,817,304	$	(403,522)	1,032	$	(154,889)	$	4,021,968
Net income						76,748							76,748
Cash dividends ($0.34 per share)						(15,969)							(15,969)
Other comprehensive income								22,191					22,191
Shares issued under compensation plans	18	18		2,333						(19)	2,639		4,990
Deferred compensation	—	—		324						(6)	1		325
Balance at April 2, 2023	47,975	$	47,975	$	717,775	$	3,878,083	$	(381,331)	1,007	$	(152,249)	$	4,110,253

	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

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, 2022.

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 87%, 11% and 2% of consolidated net revenues, respectively, for the three months ended April 2, 2023. 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 months ended April 2, 2023 and March 27, 2022.

	Three Months Ended
	April 2, 2023		March 27, 2022
Vascular access	$	177,652	$	166,134
Anesthesia	93,332		86,957
Interventional	116,897		96,859
Surgical	99,023		89,702
Interventional urology	75,378		74,895
OEM	76,997		57,656
Other (1)	71,653		69,512
Net revenues (2)	$	710,932	$	641,715

(1)     Includes revenues generated from sales of our respiratory and urology products (other than interventional urology products).

(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 includes net revenues from each of the non-OEM product categories listed above.

Note 4 — Acquisition and Divestiture

Acquisition

In the fourth quarter of 2022, we completed the acquisition of Standard Bariatrics, Inc. (“Standard Bariatrics”), a privately-held medical device company that commercialized a powered stapling technology for bariatric surgery that complements our surgical product portfolio. Under the terms of the agreement, we acquired Standard Bariatrics for cash payments of $173 million, with the potential to make three milestone payments up to $130 million in aggregate if certain commercial milestones are met.

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 attributed to services provided to Medline in accordance with the MSTA, which are presented within our Americas reporting segment, were $20.0 million and $21.1 million for the three months ended April 2, 2023 and March 27, 2022, respectively.

Note 5 — Restructuring and impairment charges

We have ongoing restructuring initiatives consisting of 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 our high growth strategic objectives (the “2022 restructuring plan”) and a plan, initiated in connection with the Respiratory business divestiture designed to separate the manufacturing operations to be transferred to Medline

8

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

from those that will remain with Teleflex (the “Respiratory divestiture plan”). The following tables provide a summary of our cost estimates and other information associated with these plans:

	2022 restructuring plan	Respiratory divestiture plan
Plan expense estimates:	(Dollars in millions)
Termination benefits	$18 to $22	$5 to $8
Other costs (1)	1 to 1	— to —
Restructuring charges	19 to 23	5 to 8
Restructuring related charges (2)	20 to 25	19 to 22
Total restructuring and restructuring related charges	$39 to $48	$24 to $30
Other plan estimates:
Expected cash outlays	$26 to $32	$24 to $30
Expected capital expenditures	$2 to $2	$22 to $28
Other plan information:
Period initiated	November 2022	May 2021
Estimated period of substantial completion	2023	2023
Aggregate restructuring charges	$17.7	$3.4
Restructuring reserve:
Balance as of April 2, 2023	$12.6	$3.3
Restructuring related charges incurred:
Three Months Ended April 2, 2023	$4.4	$2.1
Aggregate restructuring related charges	$14.5	$14.3

(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. 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 months ended April 2, 2023 and March 27, 2022 consisted of the following:

Three Months Ended April 2, 2023
	Termination Benefits		Other Costs (1)		Total
2022 Restructuring plan	$	2,133	$	73	$	2,206
Respiratory divestiture plan	128		12		140
Other restructuring programs (2)	(314)		189		(125)
Restructuring charges	$	1,947	$	274	$	2,221

Three Months Ended March 27, 2022
	Termination Benefits		Other Costs (1)		Total
Respiratory divestiture plan	$	106	$	14	$	120
2019 Footprint realignment plan	(670)		24		(646)
2018 Footprint realignment plan	158		62		220
Other restructuring programs (3)	1,132		82		1,214
Restructuring charges	$	726	$	182	$	908
Asset impairment charges	—		1,497		1,497
Restructuring and impairment charges	$	726	$	1,679	$	2,405

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

(2) Includes activity primarily related to our 2014, 2018, and 2019 Footprint realignment plans.

9

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

(3) 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.

Note 6 — Inventories

Inventories as of April 2, 2023 and December 31, 2022 consisted of the following:

	April 2, 2023		December 31, 2022
Raw materials	$	195,962	$	186,641
Work-in-process	107,117		98,993
Finished goods	311,027		292,873
Inventories	$	614,106	$	578,507

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 three months ended April 2, 2023:

	Americas		EMEA		Asia		OEM		Total
December 31, 2022	$	1,731,093	$	468,524	$	225,103	$	112,010	$	2,536,730
Currency translation adjustment	1,592		7,540		1,978		—		11,110
April 2, 2023	$	1,732,685	$	476,064	$	227,081	$	112,010	$	2,547,840

The gross carrying amount of, and accumulated amortization relating to, intangible assets as of April 2, 2023 and December 31, 2022 were as follows:

	Gross Carrying Amount				Accumulated Amortization
	April 2, 2023		December 31, 2022		April 2, 2023		December 31, 2022
Customer relationships	$	1,330,674	$	1,328,539	$	(514,005)	$	(497,335)
In-process research and development	27,403		27,075		—		—
Intellectual property	1,602,097		1,599,355		(669,967)		(646,643)
Distribution rights	23,211		23,115		(21,378)		(21,090)
Trade names	565,938		564,023		(74,611)		(71,128)
Non-compete agreements	21,832		21,429		(21,659)		(21,175)
	$	3,571,155	$	3,563,536	$	(1,301,620)	$	(1,257,371)

Note 8 — Financial instruments

Foreign currency forward contracts

We use derivative instruments for risk management purposes. Foreign currency forward contracts designated as cash flow hedges are used to manage foreign currency transaction exposure. Foreign currency forward contracts not designated as hedges for accounting purposes are used to manage exposure related to near term foreign currency denominated monetary assets and liabilities. We enter into the non-designated foreign currency forward contracts for periods consistent with our currency translation exposures, which generally approximate one month. For the three months ended April 2, 2023, we recognized no gain or loss related to non-designated foreign currency forward contracts. For the three months ended March 27, 2022, we recognized a loss of $3.3 million related to non-designated foreign currency forward contracts.

The total notional amount for all open foreign currency forward contracts designated as cash flow hedges as of April 2, 2023 and December 31, 2022 was $239.8 million and $184.8 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of April 2, 2023 and December 31, 2022 was $119.7 million and $152.9 million, respectively. All open foreign currency forward contracts as of April 2, 2023 have durations of 12 months or less.

10

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Cross-currency interest rate swaps

During 2019, we entered into cross-currency swap agreements with five different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $250 million at an annual interest rate of 4.875% for €219.2 million at an annual interest rate of 2.4595%. The swap agreements are designed as net investment hedges and expire on March 4, 2024.

During 2018, we entered into cross-currency swap agreements with six different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $500 million at an annual interest rate of 4.625% for €433.9 million at an annual interest rate of 1.942%. The swap agreements are designed as net investment hedges and expire on October 4, 2023.

The swap agreements described above require an exchange of the notional amounts upon expiration or earlier termination of the agreements. We and the counterparties have agreed to effect the exchange through a net settlement.

The cross-currency swaps are marked to market at each reporting date and any changes in fair value are recognized as a component of accumulated other comprehensive income (loss) ("AOCI"). The following table summarizes the foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense related to cross currency swap for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
Foreign exchange (loss) gain	$	(10,031)	$	3,840
Interest benefit	5,108		4,848

Balance sheet presentation

The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of April 2, 2023 and December 31, 2022:

	April 2, 2023		December 31, 2022
Asset derivatives:
Designated foreign currency forward contracts	$	6,004	$	3,154
Non-designated foreign currency forward contracts	43		41
Cross-currency interest rate swaps	52,526		48,503
Prepaid expenses and other current assets	58,573		51,698
Cross-currency interest rate swaps	—		11,912
Other assets	—		11,912
Total asset derivatives	$	58,573	$	63,610
Liability derivatives:
Designated foreign currency forward contracts	$	967	$	983
Non-designated foreign currency forward contracts	292		477
Other current liabilities	1,259		1,460
Total liability derivatives	$	1,259	$	1,460

See Note 10 for information on the location and amount of gains and losses attributable to derivatives that were reclassified from AOCI to expense (income), net of tax. There was no ineffectiveness related to our cash flow hedges during the three months ended April 2, 2023 and March 27, 2022.

11

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Trade receivables

The allowance for credit losses as of April 2, 2023 and December 31, 2022 was $9.1 million and $8.6 million, respectively. The current portion of the allowance for credit losses, which was $5.3 million and $4.9 million as of April 2, 2023 and December 31, 2022, respectively, was recognized as a reduction of accounts receivable, net.

Note 9 — Fair value measurement

The following tables provide information regarding our financial assets and liabilities measured at fair value on a recurring basis as of April 2, 2023 and December 31, 2022:

	Total carrying  value at  April 2, 2023		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Investments in marketable securities	$	11,552	$	11,552	$	—	$	—
Derivative assets	58,573		—		58,573		—
Derivative liabilities	1,259		—		1,259		—
Contingent consideration liabilities	46,405		—		—		46,405

	Total carrying value at December 31, 2022		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Investments in marketable securities	$	10,097	$	10,097	$	—	$	—
Derivative assets	63,610		—		63,610		—
Derivative liabilities	1,460		—		1,460		—
Contingent consideration liabilities	44,022		—		—		44,022

Valuation Techniques

Our financial assets valued based upon Level 1 inputs are comprised of investments in marketable securities held in trust, which are available to satisfy benefit obligations under our benefit plans and other arrangements. The investment assets of the trust are valued using quoted market prices.

Our financial assets and liabilities valued based upon Level 2 inputs are comprised of foreign currency forward contracts and cross-currency interest rate swap agreements. We use foreign currency forwards and cross-currency interest rate swaps to manage foreign currency transaction exposure, as well as exposure to foreign currency denominated monetary assets and liabilities. We measure the fair value of the foreign currency forwards and cross-currency swaps by calculating the amount required to enter into offsetting contracts with similar remaining maturities, based on quoted market prices, and taking into account the creditworthiness of the counterparties.

Our financial liabilities valued based upon Level 3 inputs (inputs that are not observable in the market) are comprised of contingent consideration arrangements pertaining to our acquisitions.

Contingent consideration

Contingent consideration liabilities, which primarily consist of payment obligations that are contingent upon the achievement of revenue-based goals, but also can be based on other milestones such as regulatory approvals, are remeasured to fair value each reporting period using assumptions including estimated revenues (based on internal operational budgets and long-range strategic plans), discount rates, probability of payment and projected payment dates.

We determine the fair value of certain contingent consideration liabilities using a Monte Carlo simulation (which involves a simulation of future revenues during the earn-out period using management's best estimates) or discounted cash flow analysis. Increases in projected revenues, estimated cash flows and probabilities of payment may result in significantly higher fair value measurements; decreases in these items may have the opposite effect. Increases in the discount rates in periods prior to payment may result in significantly lower fair value measurements and decreases in the discount rates may have the opposite effect.

12

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

The table below provides additional information regarding the valuation technique and inputs used in determining the fair value of our significant contingent consideration liabilities.

Contingent Consideration Liability	Valuation Technique	Unobservable Input
Revenue-based
	Monte Carlo simulation	Revenue volatility	31.3	%
		Risk free rate	Cost of debt structure
		Projected year of payment	2024 - 2026

The following table provides information regarding changes in our contingent consideration liabilities for the three months ended April 2, 2023:

	Contingent consideration
Balance – December 31, 2022	$	44,022
Payments	(64)
Revaluations	2,447
Balance – April 2, 2023	$	46,405

Note 10 — Shareholders' equity

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner except that the weighted average number of shares is increased to include dilutive securities. The following table provides a reconciliation of basic to diluted weighted average number of common shares outstanding:

	Three Months Ended
	April 2, 2023	March 27, 2022
Basic	46,949	46,876
Dilutive effect of share-based awards	336	526
Diluted	47,285	47,402

The weighted average number of shares that were antidilutive and therefore excluded from the calculation of earnings per share were 0.6 million and 0.3 million for the three months ended April 2, 2023 and March 27, 2022, respectively.

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the three months ended April 2, 2023 and March 27, 2022:

	Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustment		Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2022	$	4,931	$	(135,799)	$	(272,654)	$	(403,522)
Other comprehensive income (loss) before reclassifications	5,260		(184)		18,570		23,646
Amounts reclassified from accumulated other comprehensive income	(2,852)		1,397		—		(1,455)
Net current-period other comprehensive income	2,408		1,213		18,570		22,191
Balance as of April 2, 2023	$	7,339	$	(134,586)	$	(254,084)	$	(381,331)

13

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

	Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustment		Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2021	$	1,081	$	(138,290)	$	(209,750)	$	(346,959)
Other comprehensive income (loss) before reclassifications	57		246		(23,329)		(23,026)
Amounts reclassified from accumulated other comprehensive income	400		1,340		—		1,740
Net current-period other comprehensive income (loss)	457		1,586		(23,329)		(21,286)
Balance as of March 27, 2022	$	1,538	$	(136,704)	$	(233,079)	$	(368,245)

The following table provides information relating to the location in the statements of operations and amount of reclassifications of losses/(gains) in accumulated other comprehensive (loss) income into expense/(income), net of tax, for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
(Gains) Loss on foreign exchange contracts:
Cost of goods sold	$	(3,054)	$	398
Total before tax	(3,054)		398
Taxes	202		2
Net of tax	(2,852)		400
Amortization of pension and other postretirement benefit items (1):
Actuarial losses	2,066		2,000
Prior-service costs	(252)		(252)
Total before tax	1,814		1,748
Tax benefit	(417)		(408)
Net of tax	1,397		1,340
Total reclassifications, net of tax	$	(1,455)	$	1,740

(1) These accumulated other comprehensive (loss) income components are included in the computation of net benefit expense for pension and other postretirement benefit plans.

Note 11 — Taxes on income from continuing operations

	Three Months Ended
	April 2, 2023	March 27, 2022
Effective income tax rate	20.7%	17.1%

The effective income tax rates for the three months ended April 2, 2023 and March 27, 2022 were 20.7% and 17.1%, respectively. The effective income tax rate for the three months ended April 2, 2023 reflects an increase in tax expense related to the revaluation of certain U.S. state operating losses and credit carryforwards. The effective income tax rates for both periods reflect a tax benefit from research and development tax credits. The effective income tax rate for the three months ended March 27, 2022 reflects a net tax benefit related to excess share-based compensation.

Note 12 — Commitments and contingent liabilities

Environmental: We are subject to contingencies as a result of environmental laws and regulations that in the future may require us to take further action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by us or other parties. Much of this liability results from the U.S. Comprehensive Environmental Response, Compensation and Liability Act, often referred to as Superfund, the U.S. Resource Conservation and Recovery Act and similar state laws. These laws require us to undertake certain

14

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

investigative and remedial activities at sites where we conduct or once conducted operations or at sites where Company-generated waste was disposed.

Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend on the mix of unique site characteristics, evolving remediation technologies, the regulatory agencies involved and their enforcement policies, as well as the presence or absence of other potentially responsible parties. At April 2, 2023, we have recorded $2.5 million and $3.6 million in accrued liabilities and other liabilities, respectively, relating to these matters. Considerable uncertainty exists with respect to these liabilities and, if adverse changes in circumstances occur, the potential liability may exceed the amount accrued as of April 2, 2023. The time frame over which the accrued amounts may be paid out, based on past history, is estimated to be 10-15 years.

Legal matters: We are a party to various lawsuits and claims arising in the normal course of business. These lawsuits and claims include actions involving product liability, product warranty, commercial disputes, intellectual property, contract, employment, environmental and other matters. As of April 2, 2023, we have recorded accrued liabilities of $0.4 million in connection with such contingencies, representing our best estimate of the cost within the range of estimated possible losses that will be incurred to resolve these matters.

Based on information currently available, advice of counsel, established reserves and other resources, we do not believe that the outcome of any outstanding litigation and claims is likely to be, individually or in the aggregate, material to our business, financial condition, results of operations or liquidity. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to our business, financial condition, results of operations or liquidity. Legal costs such as outside counsel fees and expenses are charged to selling, general and administrative expenses in the period incurred.

Other: In 2015, the Italian parliament enacted legislation that, among other things, imposed a “payback” measure on medical device companies that supply goods and services to the Italian National Healthcare System. Under the measure, companies are required to make payments to the Italian government if medical device expenditures in a given year exceed regional expenditure ceilings established for that year. The payment amounts are calculated based on the amount by which the regional ceilings for the given year were exceeded. Considerable uncertainty exists related to the enforceability of and implementation process for the payback law. In response to decrees issued by the Italian Ministry of Health, the various Italian regions issued invoices to medical device companies, including Teleflex, under the payback measure in the fourth quarter of 2022 seeking payment with respect to excess expenditures for the years 2015 through 2018. Following the issuance of the invoices, we and numerous other medical device companies filed appeals with the Italian administrative courts challenging the enforceability of the payback measure, which appeals remain pending. As of April 2, 2023, our reserve for this matter is $11.9 million, of which, $0.8 million was recorded as a reduction of revenue in 2023. If the payback was to ultimately be enforced in its existing form, we estimate that we would be required to remit payments in excess of our current reserve of up to $18.4 million.

On April 4, 2023, one of our Mexican subsidiaries received a notification from the Mexican Federal Tax Administration Service (“SAT”) setting forth its preliminary findings with respect to a foreign trade operations audit carried out by SAT for the period from July 1, 2017 to June 6, 2019. The preliminary findings stated that our Mexican subsidiary did not evidence the export of goods temporarily imported under Mexico’s Manufacturing, Maquila and Export Services Industries Program (“IMMEX Program”), therefore triggering the potential obligation for payment of import duties, value added tax, customs processing fees and other fines and penalties. In response to the notification, our Mexican subsidiary has requested that the matter be referred to the Procuraduría de la Defensa del Contribuyente, or “PRODECON,” (local tax ombudsperson) to help facilitate the process by which our Mexican subsidiary may provide SAT with appropriate documentation evidencing the export of the goods in accordance with the requirements of the IMMEX Program.

While we cannot predict with certainty the outcome of this audit, based on currently known information, we do not believe a loss is either probable or estimable. Accordingly, no loss contingency has been recorded in our financial statements as of April 2, 2023 related to this matter. However, if the final resolution of the matter is not favorable to us, our Mexican subsidiary may be required to make payment of certain import duties, fines and surcharges, which could be material.

15

TELEFLEX INCORPORATED

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)

(Unaudited)

Tax audits and examinations: We are routinely subject to tax examinations by various tax authorities. As of April 2, 2023, the most significant tax examinations in process were in Ireland and Germany. We may establish reserves with respect to our uncertain tax positions, after we adjust the reserves to address developments with respect to our uncertain tax positions, including developments in these tax examinations. Accordingly, developments in tax audits and examinations, including resolution of uncertain tax positions, could result in increases or decreases to our recorded tax liabilities, which could impact our financial results.

Note 13 — Segment information

The following tables present our segment results for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
Americas	$	411,864	$	377,961
EMEA	143,340		136,908
Asia	78,731		69,190
OEM	76,997		57,656
Net revenues	$	710,932	$	641,715

	Three Months Ended
	April 2, 2023		March 27, 2022
Americas	$	98,618	$	96,901
EMEA	12,771		9,094
Asia	21,000		17,417
OEM	20,037		10,923
Total segment operating profit (1)	152,426		134,335
Unallocated expenses (2)	(37,452)		(30,799)
Income from continuing operations before interest and taxes	$	114,974	$	103,536

(1)Segment operating profit includes segment net revenues from external customers reduced by its standard cost of goods sold, adjusted for fixed manufacturing cost absorption variances, selling, general and administrative expenses, research and development expenses and an allocation of corporate expenses.

(2)Unallocated expenses primarily include manufacturing variances other than fixed manufacturing cost absorption variances and restructuring and impairment charges.

16

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Teleflex Incorporated (“we,” “us,” “our" and “Teleflex”) is a global provider of medical technology products focused on enhancing clinical benefits, improving patient and provider safety and reducing total procedural costs. We primarily design, develop, manufacture and supply single-use medical devices used by hospitals and healthcare providers for common diagnostic and therapeutic procedures in critical care and surgical applications. We market and sell our products worldwide through a combination of our direct sales force and distributors. Because our products are used in numerous markets and for a variety of procedures, we are not dependent upon any one end-market or procedure. We are focused on achieving consistent, sustainable and profitable growth by increasing our market share and improving our operating efficiencies.

We evaluate our portfolio of products and businesses on an ongoing basis to ensure alignment with our overall objectives. Based on our evaluation, we may identify opportunities to divest businesses and product lines that do not meet our objectives. In addition, we may seek to optimize utilization of our facilities through restructuring initiatives designed to further improve our cost structure and enhance our competitive position. We also may continue to explore opportunities to expand the size of our business and improve operating margins through a combination of acquisitions and distributor to direct sales conversions, which generally involve our elimination of a distributor from the sales channel, either by acquiring the distributor or terminating the distributor relationship (in some instances, particularly in Asia, the conversions involve our acquisition or termination of a master distributor and the continued sale of our products through sub-distributors or through new distributors). Distributor to direct sales conversions are designed to facilitate improved product pricing and more direct access to the end users of our products within the sales channel.

Results of Operations

As used in this discussion, "new products" are products for which commercial sales have commenced within the past 36 months, and “existing products” are products for which commercial sales commenced more than 36 months ago. Discussion of results of operations items that reference the effect of one or more acquired and/or divested businesses or assets (except as noted below with respect to acquired distributors) generally reflects the impact of the acquisitions and/or divestitures within the first 12 months following the date of the acquisition and/or divestiture. In addition to increases and decreases in the per unit selling prices of our products to our customers, our discussion of the impact of product price increases and decreases also reflects the impact on the pricing of our products resulting from the elimination of the distributor, either through acquisition or termination of the distributor, from the sales channel. All of the dollar amounts in the tables are presented in millions unless otherwise noted.

Certain financial information is presented on a rounded basis, which may cause minor differences.

Net revenues

	Three Months Ended
	April 2, 2023		March 27, 2022
Net revenues	$	710.9	$	641.7

Net revenues for the three months ended April 2, 2023 increased $69.2 million, or 10.8%, compared to the prior year period, primarily due to a $63.0 million increase in sales of new products and price increases, partially offset by unfavorable fluctuations in foreign currency exchange rates. Moreover, net revenues for the three months ended April 2, 2023 reflect the impact of a five day increase in the number of shipping days compared to the prior year period.

Gross profit

	Three Months Ended
	April 2, 2023			March 27, 2022
Gross profit	$	391.4		$	346.2
Percentage of sales	55.1		%	54.0		%

Gross margin for the three months ended April 2, 2023 increased 110 basis points, or 2.0%, compared to the prior year period, primarily due to price increases, lower logistics and distribution related costs and favorable fluctuations in foreign currency exchange rates, partially offset by continued cost inflation from macro-economic factors, specifically, raw materials and labor costs.

17

On April 4, 2023, one of our Mexican subsidiaries received a notification from the Mexican Federal Tax Administration Service (“SAT”) setting forth its preliminary findings with respect to a foreign trade operations audit carried out by SAT for the period from July 1, 2017 to June 6, 2019. The preliminary findings stated that our Mexican subsidiary did not evidence the export of goods temporarily imported under Mexico’s Manufacturing, Maquila and Export Services Industries Program (“IMMEX Program”), therefore triggering the potential obligation for payment of import duties, value added tax, customs processing fees and other fines and penalties. In response to the notification, our Mexican subsidiary has requested that the matter be referred to the Procuraduría de la Defensa del Contribuyente, or “PRODECON,” (local tax ombudsperson) to help facilitate the process by which our Mexican subsidiary may provide SAT with appropriate documentation evidencing the export of the goods in accordance with the requirements of the IMMEX Program.

While we cannot predict with certainty the outcome of this audit, based on currently known information, we do not believe a loss is either probable or estimable. Accordingly, no loss contingency has been recorded in our financial statements as of April 2, 2023 related to this matter. However, if the final resolution of the matter is not favorable to us, our Mexican subsidiary may be required to make payment of certain import duties, fines and surcharges, which could be material.

Selling, general and administrative

	Three Months Ended
	April 2, 2023			March 27, 2022
Selling, general and administrative	$	232.7		$	203.9
Percentage of sales	32.7		%	31.8		%

Selling, general and administrative expenses for the three months ended April 2, 2023 increased $28.8 million, compared to the prior year period primarily due to higher sales and marketing expenses across certain of our product portfolios, higher operating expenses incurred by acquired businesses, primarily Standard Bariatrics, an increase in contingent consideration expense and higher IT related costs. The increases in selling, general and administrative expenses were partially offset by favorable fluctuations in foreign currency exchange rates.

Research and development

	Three Months Ended
	April 2, 2023			March 27, 2022
Research and development	$	41.5		$	36.4
Percentage of sales	5.8		%	5.7		%

The increase in research and development expenses for the three months ended April 2, 2023 compared to the prior year period was primarily attributable to higher project spend within certain of our product portfolios.

Restructuring and impairment charges

	Three Months Ended
	April 2, 2023		March 27, 2022
Restructuring and impairment charges	$	2.2	$	2.4

Restructuring charges for the three months ended April 2, 2023 primarily consisted of termination benefits related to the 2022 restructuring plan.

Ongoing restructuring plans

We have ongoing restructuring initiatives consisting of 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 our high growth strategic objectives (the “2022 restructuring plan”) and a plan, initiated in connection with the Respiratory business divestiture designed to separate the manufacturing operations to be transferred to Medline from those that will remain with Teleflex (the “Respiratory divestiture plan”).

We estimate that we will incur aggregate pre-tax restructuring and restructuring related charges in connection with the 2022 restructuring plan and Respiratory divestiture plan of $39 million to $48 million and $24 million to $30 million, respectively. We expect to achieve annual pre-tax savings in connection with the 2022 restructuring plan of $21 million to $23 million, once the plan is fully implemented.

18

For additional information regarding our restructuring plans, refer to Note 5 within the condensed consolidated financial statements included in this report.

Interest expense

	Three Months Ended
	April 2, 2023			March 27, 2022
Interest expense	$	18.3		$	10.4
Average interest rate on debt	4.0		%	2.0		%

The increase in interest expense for the three months ended April 2, 2023 compared to the prior year period was primarily due to a higher average interest rate resulting from increases in interest rates associated with our variable interest rate debt instruments partially offset by a decrease in average debt outstanding.

Taxes on income from continuing operations

	Three Months Ended
	April 2, 2023		March 27, 2022
Effective income tax rate	20.7	%	17.1	%

The effective income tax rate for the three months ended April 2, 2023 reflects an increase in tax expense related to the revaluation of certain U.S. state operating losses and credit carryforwards. The effective income tax rates for both periods reflect a tax benefit from research and development tax credits. The effective income tax rate for the three months ended March 27, 2022 reflects a net tax benefit related to excess share-based compensation.

Segment Financial Information

Segment net revenues
	Three Months Ended
	April 2, 2023		March 27, 2022		% Increase/(Decrease)
Americas	$	411.9	$	378.0	9.0
EMEA	143.3		136.9		4.7
Asia	78.7		69.2		13.8
OEM	77.0		57.6		33.5
Segment net revenues	$	710.9	$	641.7	10.8
Segment operating profit
	Three Months Ended
	April 2, 2023		March 27, 2022		% Increase/(Decrease)
Americas	$	98.6	$	96.9	1.8
EMEA	12.8		9.1		40.4
Asia	21.0		17.4		20.6
OEM	20.0		10.9		83.4
Segment operating profit (1)	$	152.4	$	134.3	13.5

(1)See Note 13 to our condensed consolidated financial statements included in this report for a reconciliation of segment operating profit to our condensed consolidated income from continuing operations before interest and taxes.

Comparison of the three months ended April 2, 2023 and March 27, 2022

Americas

Americas net revenues for the three months ended April 2, 2023 increased $33.9 million, or 9.0%, compared to the prior year period, which was primarily attributable to a $54.6 million increase in sales of new products and price increases, partially offset by a $29.1 million decrease in sales volume of existing products, notwithstanding the impact of a five day increase in the number of shipping days within the three months ended April 2, 2023.

Americas operating profit for the three months ended April 2, 2023 increased $1.7 million, or 1.8%, compared to the prior year period, which was primarily attributable to an increase in gross profit resulting from higher sales and

19

price increases, partially offset by higher sales and marketing expenses to support higher sales, operating expenses and contingent consideration expense related to Standard Bariatrics and higher research and development costs.

EMEA

EMEA net revenues for the three months ended April 2, 2023 increased $6.4 million, or 4.7%, compared to the prior year period, which was primarily attributable to a $10.2 million increase in sales volumes of existing products, reflecting, in part, the impact of a five day increase in the number of shipping days within the three months ended April 2, 2023, and price increases. The increases in net revenues were partially offset by $7.2 million of unfavorable fluctuations in foreign currency exchange rates.

EMEA operating profit for the three months ended April 2, 2023 increased $3.7 million, or 40.4%, compared to the prior year period, which was primarily attributable to an increase in gross profit resulting from higher sales and price increases, partially offset by unfavorable fluctuations in foreign currency exchange rates.

Asia

Asia net revenues for the three months ended April 2, 2023 increased $9.5 million, or 13.8%, compared to the prior year period, which was primarily attributable to a $7.1 million increase in sales volumes of existing products and $7.0 million in sales of new products, partially offset by $5.1 million of unfavorable fluctuations in foreign currency exchange rates.

Asia operating profit for the three months ended April 2, 2023 increased $3.6 million, or 20.6%, compared to the prior year period, which was primarily attributable to an increase in gross profit resulting from higher sales, partially offset by unfavorable fluctuations in foreign currency exchange rates and higher sales and marketing expenses to support higher sales.

OEM

OEM net revenues for the three months ended April 2, 2023 increased $19.4 million, or 33.5%, compared to the prior year period, which was primarily attributable to a $15.0 million increase in sales volumes of existing products and price increases.

OEM operating profit for the three months ended April 2, 2023 increased $9.1 million, or 83.4%, compared to the prior year period, which was primarily attributable to an increase in gross profit resulting from higher sales and price increases.

Liquidity and Capital Resources

We believe our cash flow from operations, available cash and cash equivalents and borrowings under our revolving credit facility will enable us to fund our operating requirements, capital expenditures and debt obligations for the next 12 months and the foreseeable future. We have net cash provided by United States based operating activities as well as non-United States sources of cash available to help fund our debt service requirements in the United States. We manage our worldwide cash requirements by monitoring the funds available among our subsidiaries and determining the extent to which we can access those funds on a cost effective basis.

Cash Flows

Net cash provided by operating activities from continuing operations was $84.3 million for the three months ended April 2, 2023 as compared to $62.1 million for the three months ended March 27, 2022. The $22.2 million increase was primarily attributable to favorable changes in working capital driven by higher accounts receivable collections as compared to the prior year, partially offset by an increase in inventories due to purchases to maintain customer service levels during a period of elevated global supply chain volatility.

Net cash used in investing activities from continuing operations was $21.9 million for the three months ended April 2, 2023, and primarily consisted of $21.8 million in capital expenditures.

Net cash used in financing activities from continuing operations was $93.6 million for the three months ended April 2, 2023, and primarily consisted of a $75.1 million reduction in borrowings and $16.0 million in dividend payments.

20

Borrowings

The indentures governing our 4.625% Senior Notes due 2027 (the “2027 Notes”) and 4.25% Senior Notes due 2028 (the "2028 Notes") contain covenants that, among other things and subject to certain exceptions, limit or restrict our ability, and the ability of our subsidiaries, to create liens; consolidate, merge or dispose of certain assets; and enter into sale leaseback transactions. As of April 2, 2023, we were in compliance with these requirements.

The obligations under our senior credit agreement (the "Credit Agreement"), the 2027 Notes and 2028 Notes are guaranteed (subject to certain exceptions) by substantially all of our material domestic subsidiaries, and the obligations under the Credit Agreement are (subject to certain exceptions and limitations) secured by a lien on substantially all of the assets owned by us and each guarantor.

Summarized Financial Information – Obligor Group

The 2027 Notes are issued by Teleflex Incorporated (the “Parent Company”), and payment of the Parent Company's obligations under the Senior Notes is guaranteed, jointly and severally, by an enumerated group of the Parent Company’s subsidiaries (each, a “Guarantor Subsidiary” and collectively, the “Guarantor Subsidiaries”). The guarantees are full and unconditional, subject to certain customary release provisions. Each Guarantor Subsidiary is directly or indirectly 100% owned by the Parent Company. Summarized financial information for the Parent and Guarantor Subsidiaries (collectively, the “Obligor Group”) as of April 2, 2023 and December 31, 2022 and for the three months ended April 2, 2023 is as follows:

	Three Months Ended
	April 2, 2023
	Obligor Group		Intercompany		Obligor Group (excluding Intercompany)
Net revenue	$	530.9	$	79.7	$	451.2
Cost of goods sold	327.6		128.4		199.2
Gross profit	203.3		(48.7)		252.0
Income from continuing operations	51.3		14.3		37.0
Net income	50.7		14.3		36.4

	April 2, 2023						December 31, 2022
	Obligor Group		Intercompany		Obligor Group  (excluding Intercompany)		Obligor Group		Intercompany		Obligor Group  (excluding Intercompany)
Total current assets	$	930.9	$	168.8	$	762.1	$	878.3	$	110.5	$	767.8
Total assets	3,411.3		1,567.4		1,843.9		3,420.3		1,510.9		1,909.4
Total current liabilities	987.9		741.8		246.1		882.9		627.9		255.0
Total liabilities	3,193.7		839.8		2,353.9		3,168.0		712.3		2,455.7

The same accounting policies as described in Note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2022 are used by the Parent Company and each of its subsidiaries in connection with the summarized financial information presented above. The Intercompany column in the table above represents transactions between and among the Obligor Group and non-guarantor subsidiaries (i.e. those subsidiaries of the Parent Company that have not guaranteed payment of the Senior Notes). Obligor investments in non-guarantor subsidiaries and any related activity are excluded from the financial information presented above.

Critical Accounting Estimates

The preparation of 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 and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions.

In our Annual Report on Form 10-K for the year ended December 31, 2022, we provided disclosure regarding our critical accounting estimates, which are reflective of significant judgments and uncertainties, are important to the presentation of our financial condition and results of operations and could potentially result in materially different results under different assumptions and conditions.

21

New Accounting Standards

See Note 2 to the condensed consolidated financial statements included in this report for a discussion of recently issued accounting guidance, including estimated effects, if any, of adoption of the guidance on our financial statements.

Forward-Looking Statements

All statements made in this Quarterly Report on Form 10-Q, other than statements of historical fact, are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “should,” “guidance,” “potential,” “continue,” “project,” “forecast,” “confident,” “prospects” and similar expressions typically are used to identify forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about our business and the industry and markets in which we operate. These statements are not guarantees of future performance and are subject to risks and uncertainties, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements due to a number of factors, including changes in business relationships with and purchases by or from major customers or suppliers; delays or cancellations in shipments; demand for and market acceptance of new and existing products; the impact of inflation and disruptions in our global supply chain on us and our suppliers (particularly sole-source suppliers and providers of sterilization services), including fluctuations in the cost and availability of resins and other raw materials, as well as certain components, used in the production or sterilization of our products, transportation constraints and delays, product shortages, energy shortages or increased energy costs, labor shortages in the United States and elsewhere, and increased operating and labor costs; our inability to integrate acquired businesses into our operations, realize planned synergies and operate such businesses profitably in accordance with our expectations; our inability to effectively execute our restructuring programs; our inability to realize anticipated savings resulting from restructuring plans and programs; the impact of enacted healthcare reform legislation and proposals to amend, replace or repeal the legislation; changes in Medicare, Medicaid and third party coverage and reimbursements; the impact of tax legislation and related regulations; competitive market conditions and resulting effects on revenues and pricing; global economic factors, including currency exchange rates, interest rates, trade disputes, sovereign debt issues, and international conflicts and hostilities, such as the ongoing conflict between Russia and Ukraine; public health epidemics including the novel coronavirus (referred to as COVID-19); difficulties entering new markets; and general economic conditions. For a further discussion of the risks relating to our business, see Item 1A, Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2022. We expressly disclaim any obligation to update these forward-looking statements, except as otherwise explicitly stated by us or as required by law or regulation.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes to the information set forth in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2022.

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of the end of the period covered by this report are functioning effectively to provide reasonable assurance that the information required to be disclosed by us in reports filed under the Securities Exchange Act of 1934 is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

(b) Change in Internal Control over Financial Reporting

No change in our internal control over financial reporting occurred during our most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

22

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

We are party to various lawsuits and claims arising in the normal course of business. These lawsuits and claims include actions involving product liability and product warranty, commercial disputes, intellectual property, contract, employment, environmental and other matters. As of April 2, 2023 and December 31, 2022, we had accrued liabilities of approximately $0.4 million and $0.5 million, respectively, in connection with these matters, representing our best estimate of the cost within the range of estimated possible loss that will be incurred to resolve these matters. Based on information currently available, advice of counsel, established reserves and other resources, we do not believe that the outcome of any outstanding lawsuits or claims is likely to be, individually or in the aggregate, material to our business, financial condition, results of operations or liquidity. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to our business, financial condition, results of operations or liquidity.

Item 1A. Risk Factors

See the information set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes in risk factors for the quarter ended April 2, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Not applicable.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

23

Item 6. Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this report:

 

Exhibit No.		Description
31.1	—	Certification of Chief Executive Officer, pursuant to Rule 13a–14(a) under the Securities Exchange Act of 1934.
31.2	—	Certification of Chief Financial Officer, pursuant to Rule 13a–14(a) under the Securities Exchange Act of 1934.
32.1	—	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	—	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.1	—	The following materials from our Quarterly Report on Form 10-Q for the quarter ended April 2, 2023, formatted in inline XBRL (eXtensible Business Reporting Language): (i) Cover Page; (ii) the Condensed Consolidated Statements of Income for the three months ended April 2, 2023 and March 27, 2022; (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended April 2, 2023 and March 27, 2022; (iv) the Condensed Consolidated Balance Sheets as of April 2, 2023 and December 31, 2022; (v) the Condensed Consolidated Statements of Cash Flows for the three months ended April 2, 2023 and March 27, 2022; (vi) the Condensed Consolidated Statements of Changes in Equity for the three months ended April 2, 2023 and March 27, 2022; and (vii) Notes to Condensed Consolidated Financial Statements.
104.1	—	The cover page of the Company's Quarterly Report on Form 10-Q for the quarter ended April 2, 2023, formatted in inline XBRL (included in Exhibit 101.1).

____________________________________

24

SIGNATURES

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, thereunto duly authorized.

TELEFLEX INCORPORATED
By:	/s/ Liam J. Kelly
	Liam J. Kelly President and Chief Executive Officer (Principal Executive Officer)
By:	/s/ Thomas E. Powell
	Thomas E. Powell Executive Vice President and Chief Financial Officer (Principal Financial Officer)

Dated: May 4, 2023

25

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Liam J. Kelly, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Teleflex Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 4, 2023	/s/ Liam J. Kelly
	Liam J. Kelly
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Thomas E. Powell, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Teleflex Incorporated;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 4, 2023	/s/ Thomas E. Powell
	Thomas E. Powell
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

RULE 13a-14(b) UNDER THE

SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Teleflex Incorporated (the “Company”) on Form 10-Q for the period ending April 2, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Liam J. Kelly, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial position and results of operations of the Company.

Date: May 4, 2023	/s/ Liam J. Kelly
	Liam J. Kelly President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

RULE 13a-14(b) UNDER THE

SECURITIES EXCHANGE ACT OF 1934

In connection with the Quarterly Report of Teleflex Incorporated (the “Company”) on Form 10-Q for the period ending April 2, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas E. Powell, Executive Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial position and results of operations of the Company.

Date: May 4, 2023	/s/ Thomas E. Powell
	Thomas E. Powell Executive Vice President and Chief Financial Officer

XML

Cover Page - shares	3 Months Ended
	Apr. 02, 2023	May 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 02, 2023
Document Transition Report	false
Entity File Number	1-5353
Entity Registrant Name	TELEFLEX INCORPORATED
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	23-1147939
Entity Address, Address Line One	550 E. Swedesford Rd., Suite 400
Entity Address, City or Town	Wayne
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	610
Local Phone Number	225-6800
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	TFX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Smaller Reporting Company	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,971,703
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000096943
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Income Statement [Abstract]
Net revenues	$ 710,932	$ 641,715
Cost of goods sold	319,552	295,482
Gross profit	391,380	346,233
Selling, general and administrative expenses	232,716	203,932
Research and development expenses	41,469	36,360
Restructuring and impairment charges	2,221	2,405
Income from continuing operations before interest and taxes	114,974	103,536
Interest expense	18,337	10,418
Interest income	(843)	(222)
Income from continuing operations before taxes	97,480	93,340
Taxes on income from continuing operations	20,184	15,973
Net of tax	77,296	77,367
Operating loss from discontinued operations	(711)	(294)
Tax benefit on operating loss from discontinued operations	(163)	(68)
Loss from discontinued operations	(548)	(226)
Net income	$ 76,748	$ 77,141
Basic:
Income from continuing operations (in dollars per share)	$ 1.65	$ 1.65
Loss from discontinued operations (in dollars per share)	(0.02)	0
Net income (in dollars per share)	1.63	1.65
Diluted:
Income from continuing operations (in dollars per share)	1.63	1.63
Loss from discontinued operations (in dollars per share)	(0.01)	0
Net income (in dollars per share)	$ 1.62	$ 1.63
Weighted average common shares outstanding
Basic (in shares)	46,949	46,876
Diluted (in shares)	47,285	47,402

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 76,748	$ 77,141
Other comprehensive income (loss), net of tax:
Foreign currency translation, net of tax of $2,970 and $(1,136) for the three months periods, respectively	18,570	(23,329)
Pension and other postretirement benefit plans adjustment, net of tax of $(354) and $(499) for the three months periods, respectively	1,213	1,586
Derivatives qualifying as hedges, net of tax of $120 and $(30) for the three months periods, respectively	2,408	457
Other comprehensive income (loss), net of tax:	22,191	(21,286)
Comprehensive income	$ 98,939	$ 55,855

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Statement of Comprehensive Income [Abstract]
Foreign currency translation, tax	$ 2,970	$ (1,136)
Pension and other postretirement benefits plans adjustment, tax	(354)	(499)
Derivatives qualifying as hedges, tax	$ 120	$ (30)

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 02, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 264,138	$ 292,034
Accounts receivable, net	410,020	408,834
Inventories	614,106	578,507
Prepaid expenses and other current assets	134,948	125,084
Prepaid taxes	4,842	6,524
Total current assets	1,428,054	1,410,983
Property, plant and equipment, net	458,861	447,205
Operating lease assets	126,773	131,211
Goodwill	2,547,840	2,536,730
Intangible assets, net	2,269,535	2,306,165
Deferred tax assets	6,479	6,402
Other assets	80,380	89,367
Total assets	6,917,922	6,928,063
Current liabilities
Current borrowings	87,500	87,500
Accounts payable	136,239	126,807
Accrued expenses	123,451	140,644
Payroll and benefit-related liabilities	102,081	133,092
Accrued interest	16,862	5,332
Income taxes payable	30,176	24,736
Other current liabilities	79,403	63,381
Total current liabilities	575,712	581,492
Long-term borrowings	1,549,474	1,624,023
Deferred tax liabilities	388,185	388,886
Pension and postretirement benefit liabilities	30,924	31,394
Noncurrent liability for uncertain tax positions	6,464	5,805
Noncurrent operating lease liabilities	115,838	120,437
Other liabilities	141,072	154,058
Total liabilities	2,807,669	2,906,095
Commitments and contingencies
Total shareholders' equity	4,110,253	4,021,968
Total liabilities and shareholders' equity	$ 6,917,922	$ 6,928,063

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Cash flows from operating activities of continuing operations:
Net income	$ 76,748	$ 77,141
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	548	226
Depreciation expense	18,287	17,317
Intangible asset amortization expense	41,540	40,597
Deferred financing costs and debt discount amortization expense	846	1,048
Changes in contingent consideration	2,447	(30)
Assets impairment charges	0	1,497
Stock-based compensation	7,015	5,302
Deferred income taxes, net	2,092	409
Interest benefit on swaps designated as net investment hedges	(5,108)	(4,848)
Other	(427)	(2,093)
Changes in assets and liabilities, net of effects of acquisitions and disposals:
Accounts receivable	1,339	(27,805)
Inventories	(30,099)	(19,852)
Prepaid expenses and other assets	2,752	4,830
Accounts payable, accrued expenses and other liabilities	(40,856)	(36,978)
Income taxes receivable and payable, net	7,225	5,341
Net cash provided by operating activities from continuing operations	84,349	62,102
Cash flows from investing activities of continuing operations:
Expenditures for property, plant and equipment	(21,835)	(13,078)
Proceeds from sale of business and assets	0	262
Payments for businesses and intangibles acquired, net of cash acquired	64	0
Net cash used in investing activities from continuing operations	(21,899)	(12,816)
Cash flows from financing activities of continuing operations:
Reduction in borrowings	75,125	0
Net payments from share based compensation plans and related tax impacts	(2,433)	(4,941)
Payments for contingent consideration	(64)	(73)
Dividends paid	(15,969)	(15,946)
Net cash used in financing activities from continuing operations	(93,591)	(20,960)
Cash flows from discontinued operations:
Net cash used in operating activities	(285)	(119)
Net cash used in discontinued operations	(285)	(119)
Effect of exchange rate changes on cash and cash equivalents	3,530	(6,635)
Net (decrease) increase in cash and cash equivalents	(27,896)	21,572
Cash and cash equivalents at the beginning of the period	292,034	445,084
Cash and cash equivalents at the end of the period	$ 264,138	$ 466,656

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Treasury Stock
Common stock, shares, issued, beginning balance (in shares) at Dec. 31, 2021		47,929
Beginning balance at Dec. 31, 2021	$ 3,754,748	$ 47,929	$ 693,090	$ 3,517,954	$ (346,959)	$ (157,266)
Treasury stock, common, shares beginning balance (in shares) at Dec. 31, 2021						1,069
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	77,141			77,141
Cash dividends	(15,946)			(15,946)
Other comprehensive income (loss)	(21,286)				(21,286)
Shares issued under compensation plans (in shares)		5				(27)
Shares issued under compensation plans	(51)	$ 5	(950)			$ 894
Deferred compensation	928		100			$ 828
Deferred compensation (in shares)						(5)
Common stock, shares, issued, ending balance (in shares) at Mar. 27, 2022		47,934
Ending balance at Mar. 27, 2022	3,795,534	$ 47,934	692,240	3,579,149	(368,245)	$ (155,544)
Treasury stock, common, shares ending balance (in shares) at Mar. 27, 2022						1,037
Common stock, shares, issued, beginning balance (in shares) at Dec. 31, 2022		47,957
Beginning balance at Dec. 31, 2022	4,021,968	$ 47,957	715,118	3,817,304	(403,522)	$ (154,889)
Treasury stock, common, shares beginning balance (in shares) at Dec. 31, 2022						1,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	76,748			76,748
Cash dividends	(15,969)			(15,969)
Other comprehensive income (loss)	22,191				22,191
Shares issued under compensation plans (in shares)		18				(19)
Shares issued under compensation plans	4,990	$ 18	2,333			$ 2,639
Deferred compensation	325		324			$ 1
Deferred compensation (in shares)						(6)
Common stock, shares, issued, ending balance (in shares) at Apr. 02, 2023		47,975
Ending balance at Apr. 02, 2023	$ 4,110,253	$ 47,975	$ 717,775	$ 3,878,083	$ (381,331)	$ (152,249)
Treasury stock, common, shares ending balance (in shares) at Apr. 02, 2023						1,007

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Statement of Stockholders' Equity [Abstract]
Dividends per share (in dollars per share)	$ 0.34	$ 0.34

XML

Basis of presentation

3 Months Ended

Apr. 02, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of presentation

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, 2022.

XML

Recently issued accounting standards	3 Months Ended
	Apr. 02, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
Recently issued accounting standards	Recently issued accounting standardsFrom 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.

XML

Net revenues

3 Months Ended

Apr. 02, 2023

Revenue from Contract with Customer [Abstract]

Net revenues

Net revenuesWe 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 87%, 11% and 2% of consolidated net revenues, respectively, for the three months ended April 2, 2023. 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.

The following table disaggregates revenue by global product category for the three months ended April 2, 2023 and March 27, 2022.

	Three Months Ended
	April 2, 2023		March 27, 2022
Vascular access	$	177,652	$	166,134
Anesthesia	93,332		86,957
Interventional	116,897		96,859
Surgical	99,023		89,702
Interventional urology	75,378		74,895
OEM	76,997		57,656
Other (1)	71,653		69,512
Net revenues (2)	$	710,932	$	641,715

(1)     Includes revenues generated from sales of our respiratory and urology products (other than interventional urology products).

(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 includes net revenues from each of the non-OEM product categories listed above.

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Acquisitions and Divestiture

3 Months Ended

Apr. 02, 2023

Discontinued Operations and Disposal Groups [Abstract]

Acquisitions and Divestiture

Acquisition and Divestiture

Acquisition

In the fourth quarter of 2022, we completed the acquisition of Standard Bariatrics, Inc. (“Standard Bariatrics”), a privately-held medical device company that commercialized a powered stapling technology for bariatric surgery that complements our surgical product portfolio. Under the terms of the agreement, we acquired Standard Bariatrics for cash payments of $173 million, with the potential to make three milestone payments up to $130 million in aggregate if certain commercial milestones are met.

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 attributed to services provided to Medline in accordance with the MSTA, which are presented within our Americas reporting segment, were $20.0 million and $21.1 million for the three months ended April 2, 2023 and March 27, 2022, respectively.

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Restructuring and impairment charges

3 Months Ended

Apr. 02, 2023

Restructuring and Related Activities [Abstract]

Restructuring and impairment charges

Restructuring and impairment chargesWe have ongoing restructuring initiatives consisting of 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 our high growth strategic objectives (the “2022 restructuring plan”) and a plan, initiated in connection with the Respiratory business divestiture designed to separate the manufacturing operations to be transferred to Medline

from those that will remain with Teleflex (the “Respiratory divestiture plan”). The following tables provide a summary of our cost estimates and other information associated with these plans:

	2022 restructuring plan	Respiratory divestiture plan
Plan expense estimates:	(Dollars in millions)
Termination benefits	$18 to $22	$5 to $8
Other costs (1)	1 to 1	— to —
Restructuring charges	19 to 23	5 to 8
Restructuring related charges (2)	20 to 25	19 to 22
Total restructuring and restructuring related charges	$39 to $48	$24 to $30
Other plan estimates:
Expected cash outlays	$26 to $32	$24 to $30
Expected capital expenditures	$2 to $2	$22 to $28
Other plan information:
Period initiated	November 2022	May 2021
Estimated period of substantial completion	2023	2023
Aggregate restructuring charges	$17.7	$3.4
Restructuring reserve:
Balance as of April 2, 2023	$12.6	$3.3
Restructuring related charges incurred:
Three Months Ended April 2, 2023	$4.4	$2.1
Aggregate restructuring related charges	$14.5	$14.3

(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. 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 months ended April 2, 2023 and March 27, 2022 consisted of the following:

Three Months Ended April 2, 2023
	Termination Benefits		Other Costs (1)		Total
2022 Restructuring plan	$	2,133	$	73	$	2,206
Respiratory divestiture plan	128		12		140
Other restructuring programs (2)	(314)		189		(125)
Restructuring charges	$	1,947	$	274	$	2,221

Three Months Ended March 27, 2022
	Termination Benefits		Other Costs (1)		Total
Respiratory divestiture plan	$	106	$	14	$	120
2019 Footprint realignment plan	(670)		24		(646)
2018 Footprint realignment plan	158		62		220
Other restructuring programs (3)	1,132		82		1,214
Restructuring charges	$	726	$	182	$	908
Asset impairment charges	—		1,497		1,497
Restructuring and impairment charges	$	726	$	1,679	$	2,405

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

(2) Includes activity primarily related to our 2014, 2018, and 2019 Footprint realignment plans.

(3) 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.

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Inventories

3 Months Ended

Apr. 02, 2023

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories as of April 2, 2023 and December 31, 2022 consisted of the following:

	April 2, 2023		December 31, 2022
Raw materials	$	195,962	$	186,641
Work-in-process	107,117		98,993
Finished goods	311,027		292,873
Inventories	$	614,106	$	578,507

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Goodwill and other intangible assets

3 Months Ended

Apr. 02, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and other intangible assets

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 three months ended April 2, 2023:

	Americas		EMEA		Asia		OEM		Total
December 31, 2022	$	1,731,093	$	468,524	$	225,103	$	112,010	$	2,536,730
Currency translation adjustment	1,592		7,540		1,978		—		11,110
April 2, 2023	$	1,732,685	$	476,064	$	227,081	$	112,010	$	2,547,840

The gross carrying amount of, and accumulated amortization relating to, intangible assets as of April 2, 2023 and December 31, 2022 were as follows:

	Gross Carrying Amount				Accumulated Amortization
	April 2, 2023		December 31, 2022		April 2, 2023		December 31, 2022
Customer relationships	$	1,330,674	$	1,328,539	$	(514,005)	$	(497,335)
In-process research and development	27,403		27,075		—		—
Intellectual property	1,602,097		1,599,355		(669,967)		(646,643)
Distribution rights	23,211		23,115		(21,378)		(21,090)
Trade names	565,938		564,023		(74,611)		(71,128)
Non-compete agreements	21,832		21,429		(21,659)		(21,175)
	$	3,571,155	$	3,563,536	$	(1,301,620)	$	(1,257,371)

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Financial instruments

3 Months Ended

Apr. 02, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial instruments

Financial instruments

Foreign currency forward contracts

We use derivative instruments for risk management purposes. Foreign currency forward contracts designated as cash flow hedges are used to manage foreign currency transaction exposure. Foreign currency forward contracts not designated as hedges for accounting purposes are used to manage exposure related to near term foreign currency denominated monetary assets and liabilities. We enter into the non-designated foreign currency forward contracts for periods consistent with our currency translation exposures, which generally approximate one month. For the three months ended April 2, 2023, we recognized no gain or loss related to non-designated foreign currency forward contracts. For the three months ended March 27, 2022, we recognized a loss of $3.3 million related to non-designated foreign currency forward contracts.

The total notional amount for all open foreign currency forward contracts designated as cash flow hedges as of April 2, 2023 and December 31, 2022 was $239.8 million and $184.8 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of April 2, 2023 and December 31, 2022 was $119.7 million and $152.9 million, respectively. All open foreign currency forward contracts as of April 2, 2023 have durations of 12 months or less.

Cross-currency interest rate swaps

During 2019, we entered into cross-currency swap agreements with five different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $250 million at an annual interest rate of 4.875% for €219.2 million at an annual interest rate of 2.4595%. The swap agreements are designed as net investment hedges and expire on March 4, 2024.

During 2018, we entered into cross-currency swap agreements with six different financial institution counterparties to hedge against the effect of variability in the U.S. dollar to euro exchange rate. Under the terms of the cross-currency swap agreements, we have notionally exchanged $500 million at an annual interest rate of 4.625% for €433.9 million at an annual interest rate of 1.942%. The swap agreements are designed as net investment hedges and expire on October 4, 2023.

The swap agreements described above require an exchange of the notional amounts upon expiration or earlier termination of the agreements. We and the counterparties have agreed to effect the exchange through a net settlement.

The cross-currency swaps are marked to market at each reporting date and any changes in fair value are recognized as a component of accumulated other comprehensive income (loss) ("AOCI"). The following table summarizes the foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense related to cross currency swap for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
Foreign exchange (loss) gain	$	(10,031)	$	3,840
Interest benefit	5,108		4,848

Balance sheet presentation

The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of April 2, 2023 and December 31, 2022:

	April 2, 2023		December 31, 2022
Asset derivatives:
Designated foreign currency forward contracts	$	6,004	$	3,154
Non-designated foreign currency forward contracts	43		41
Cross-currency interest rate swaps	52,526		48,503
Prepaid expenses and other current assets	58,573		51,698
Cross-currency interest rate swaps	—		11,912
Other assets	—		11,912
Total asset derivatives	$	58,573	$	63,610
Liability derivatives:
Designated foreign currency forward contracts	$	967	$	983
Non-designated foreign currency forward contracts	292		477
Other current liabilities	1,259		1,460
Total liability derivatives	$	1,259	$	1,460

See Note 10 for information on the location and amount of gains and losses attributable to derivatives that were reclassified from AOCI to expense (income), net of tax. There was no ineffectiveness related to our cash flow hedges during the three months ended April 2, 2023 and March 27, 2022.

Trade receivables The allowance for credit losses as of April 2, 2023 and December 31, 2022 was $9.1 million and $8.6 million, respectively. The current portion of the allowance for credit losses, which was $5.3 million and $4.9 million as of April 2, 2023 and December 31, 2022, respectively, was recognized as a reduction of accounts receivable, net.

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Fair value measurement

3 Months Ended

Apr. 02, 2023

Fair Value Disclosures [Abstract]

Fair value measurement

Fair value measurement

The following tables provide information regarding our financial assets and liabilities measured at fair value on a recurring basis as of April 2, 2023 and December 31, 2022:

	Total carrying  value at  April 2, 2023		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Investments in marketable securities	$	11,552	$	11,552	$	—	$	—
Derivative assets	58,573		—		58,573		—
Derivative liabilities	1,259		—		1,259		—
Contingent consideration liabilities	46,405		—		—		46,405

	Total carrying value at December 31, 2022		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Investments in marketable securities	$	10,097	$	10,097	$	—	$	—
Derivative assets	63,610		—		63,610		—
Derivative liabilities	1,460		—		1,460		—
Contingent consideration liabilities	44,022		—		—		44,022

Valuation Techniques

Our financial assets valued based upon Level 1 inputs are comprised of investments in marketable securities held in trust, which are available to satisfy benefit obligations under our benefit plans and other arrangements. The investment assets of the trust are valued using quoted market prices.

Our financial assets and liabilities valued based upon Level 2 inputs are comprised of foreign currency forward contracts and cross-currency interest rate swap agreements. We use foreign currency forwards and cross-currency interest rate swaps to manage foreign currency transaction exposure, as well as exposure to foreign currency denominated monetary assets and liabilities. We measure the fair value of the foreign currency forwards and cross-currency swaps by calculating the amount required to enter into offsetting contracts with similar remaining maturities, based on quoted market prices, and taking into account the creditworthiness of the counterparties.

Our financial liabilities valued based upon Level 3 inputs (inputs that are not observable in the market) are comprised of contingent consideration arrangements pertaining to our acquisitions.

Contingent consideration

Contingent consideration liabilities, which primarily consist of payment obligations that are contingent upon the achievement of revenue-based goals, but also can be based on other milestones such as regulatory approvals, are remeasured to fair value each reporting period using assumptions including estimated revenues (based on internal operational budgets and long-range strategic plans), discount rates, probability of payment and projected payment dates.

We determine the fair value of certain contingent consideration liabilities using a Monte Carlo simulation (which involves a simulation of future revenues during the earn-out period using management's best estimates) or discounted cash flow analysis. Increases in projected revenues, estimated cash flows and probabilities of payment may result in significantly higher fair value measurements; decreases in these items may have the opposite effect. Increases in the discount rates in periods prior to payment may result in significantly lower fair value measurements and decreases in the discount rates may have the opposite effect.

The table below provides additional information regarding the valuation technique and inputs used in determining the fair value of our significant contingent consideration liabilities.

Contingent Consideration Liability	Valuation Technique	Unobservable Input
Revenue-based
	Monte Carlo simulation	Revenue volatility	31.3	%
		Risk free rate	Cost of debt structure
		Projected year of payment	2024 - 2026

The following table provides information regarding changes in our contingent consideration liabilities for the three months ended April 2, 2023:

	Contingent consideration
Balance – December 31, 2022	$	44,022
Payments	(64)
Revaluations	2,447
Balance – April 2, 2023	$	46,405

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Shareholders' equity

3 Months Ended

Apr. 02, 2023

Equity [Abstract]

Shareholders' equity

Shareholders' equity

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed in the same manner except that the weighted average number of shares is increased to include dilutive securities. The following table provides a reconciliation of basic to diluted weighted average number of common shares outstanding:

	Three Months Ended
	April 2, 2023	March 27, 2022
Basic	46,949	46,876
Dilutive effect of share-based awards	336	526
Diluted	47,285	47,402

The weighted average number of shares that were antidilutive and therefore excluded from the calculation of earnings per share were 0.6 million and 0.3 million for the three months ended April 2, 2023 and March 27, 2022, respectively.

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the three months ended April 2, 2023 and March 27, 2022:

	Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustment		Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2022	$	4,931	$	(135,799)	$	(272,654)	$	(403,522)
Other comprehensive income (loss) before reclassifications	5,260		(184)		18,570		23,646
Amounts reclassified from accumulated other comprehensive income	(2,852)		1,397		—		(1,455)
Net current-period other comprehensive income	2,408		1,213		18,570		22,191
Balance as of April 2, 2023	$	7,339	$	(134,586)	$	(254,084)	$	(381,331)

	Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustment		Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2021	$	1,081	$	(138,290)	$	(209,750)	$	(346,959)
Other comprehensive income (loss) before reclassifications	57		246		(23,329)		(23,026)
Amounts reclassified from accumulated other comprehensive income	400		1,340		—		1,740
Net current-period other comprehensive income (loss)	457		1,586		(23,329)		(21,286)
Balance as of March 27, 2022	$	1,538	$	(136,704)	$	(233,079)	$	(368,245)

The following table provides information relating to the location in the statements of operations and amount of reclassifications of losses/(gains) in accumulated other comprehensive (loss) income into expense/(income), net of tax, for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
(Gains) Loss on foreign exchange contracts:
Cost of goods sold	$	(3,054)	$	398
Total before tax	(3,054)		398
Taxes	202		2
Net of tax	(2,852)		400
Amortization of pension and other postretirement benefit items (1):
Actuarial losses	2,066		2,000
Prior-service costs	(252)		(252)
Total before tax	1,814		1,748
Tax benefit	(417)		(408)
Net of tax	1,397		1,340
Total reclassifications, net of tax	$	(1,455)	$	1,740

(1) These accumulated other comprehensive (loss) income components are included in the computation of net benefit expense for pension and other postretirement benefit plans.

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Taxes on income from continuing operations

3 Months Ended

Apr. 02, 2023

Income Tax Disclosure [Abstract]

Taxes on income from continuing operations

Taxes on income from continuing operations

	Three Months Ended
	April 2, 2023	March 27, 2022
Effective income tax rate	20.7%	17.1%

The effective income tax rates for the three months ended April 2, 2023 and March 27, 2022 were 20.7% and 17.1%, respectively. The effective income tax rate for the three months ended April 2, 2023 reflects an increase in tax expense related to the revaluation of certain U.S. state operating losses and credit carryforwards. The effective income tax rates for both periods reflect a tax benefit from research and development tax credits. The effective income tax rate for the three months ended March 27, 2022 reflects a net tax benefit related to excess share-based compensation.

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Commitments and contingent liabilities

3 Months Ended

Apr. 02, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingent liabilities

Commitments and contingent liabilitiesEnvironmental: We are subject to contingencies as a result of environmental laws and regulations that in the future may require us to take further action to correct the effects on the environment of prior disposal practices or releases of chemical or petroleum substances by us or other parties. Much of this liability results from the U.S. Comprehensive Environmental Response, Compensation and Liability Act, often referred to as Superfund, the U.S. Resource Conservation and Recovery Act and similar state laws. These laws require us to undertake certain

investigative and remedial activities at sites where we conduct or once conducted operations or at sites where Company-generated waste was disposed.

Remediation activities vary substantially in duration and cost from site to site. These activities, and their associated costs, depend on the mix of unique site characteristics, evolving remediation technologies, the regulatory agencies involved and their enforcement policies, as well as the presence or absence of other potentially responsible parties. At April 2, 2023, we have recorded $2.5 million and $3.6 million in accrued liabilities and other liabilities, respectively, relating to these matters. Considerable uncertainty exists with respect to these liabilities and, if adverse changes in circumstances occur, the potential liability may exceed the amount accrued as of April 2, 2023. The time frame over which the accrued amounts may be paid out, based on past history, is estimated to be 10-15 years.

Legal matters: We are a party to various lawsuits and claims arising in the normal course of business. These lawsuits and claims include actions involving product liability, product warranty, commercial disputes, intellectual property, contract, employment, environmental and other matters. As of April 2, 2023, we have recorded accrued liabilities of $0.4 million in connection with such contingencies, representing our best estimate of the cost within the range of estimated possible losses that will be incurred to resolve these matters.

Based on information currently available, advice of counsel, established reserves and other resources, we do not believe that the outcome of any outstanding litigation and claims is likely to be, individually or in the aggregate, material to our business, financial condition, results of operations or liquidity. However, in the event of unexpected further developments, it is possible that the ultimate resolution of these matters, or other similar matters, if unfavorable, may be materially adverse to our business, financial condition, results of operations or liquidity. Legal costs such as outside counsel fees and expenses are charged to selling, general and administrative expenses in the period incurred.

Other: In 2015, the Italian parliament enacted legislation that, among other things, imposed a “payback” measure on medical device companies that supply goods and services to the Italian National Healthcare System. Under the measure, companies are required to make payments to the Italian government if medical device expenditures in a given year exceed regional expenditure ceilings established for that year. The payment amounts are calculated based on the amount by which the regional ceilings for the given year were exceeded. Considerable uncertainty exists related to the enforceability of and implementation process for the payback law. In response to decrees issued by the Italian Ministry of Health, the various Italian regions issued invoices to medical device companies, including Teleflex, under the payback measure in the fourth quarter of 2022 seeking payment with respect to excess expenditures for the years 2015 through 2018. Following the issuance of the invoices, we and numerous other medical device companies filed appeals with the Italian administrative courts challenging the enforceability of the payback measure, which appeals remain pending. As of April 2, 2023, our reserve for this matter is $11.9 million, of which, $0.8 million was recorded as a reduction of revenue in 2023. If the payback was to ultimately be enforced in its existing form, we estimate that we would be required to remit payments in excess of our current reserve of up to $18.4 million.

On April 4, 2023, one of our Mexican subsidiaries received a notification from the Mexican Federal Tax Administration Service (“SAT”) setting forth its preliminary findings with respect to a foreign trade operations audit carried out by SAT for the period from July 1, 2017 to June 6, 2019. The preliminary findings stated that our Mexican subsidiary did not evidence the export of goods temporarily imported under Mexico’s Manufacturing, Maquila and Export Services Industries Program (“IMMEX Program”), therefore triggering the potential obligation for payment of import duties, value added tax, customs processing fees and other fines and penalties. In response to the notification, our Mexican subsidiary has requested that the matter be referred to the Procuraduría de la Defensa del Contribuyente, or “PRODECON,” (local tax ombudsperson) to help facilitate the process by which our Mexican subsidiary may provide SAT with appropriate documentation evidencing the export of the goods in accordance with the requirements of the IMMEX Program.

While we cannot predict with certainty the outcome of this audit, based on currently known information, we do not believe a loss is either probable or estimable. Accordingly, no loss contingency has been recorded in our financial statements as of April 2, 2023 related to this matter. However, if the final resolution of the matter is not favorable to us, our Mexican subsidiary may be required to make payment of certain import duties, fines and surcharges, which could be material.

Tax audits and examinations: We are routinely subject to tax examinations by various tax authorities. As of April 2, 2023, the most significant tax examinations in process were in Ireland and Germany. We may establish reserves with respect to our uncertain tax positions, after we adjust the reserves to address developments with respect to our uncertain tax positions, including developments in these tax examinations. Accordingly, developments in tax audits and examinations, including resolution of uncertain tax positions, could result in increases or decreases to our recorded tax liabilities, which could impact our financial results.

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Segment information

3 Months Ended

Apr. 02, 2023

Segment Reporting [Abstract]

Segment information

Segment information

The following tables present our segment results for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
Americas	$	411,864	$	377,961
EMEA	143,340		136,908
Asia	78,731		69,190
OEM	76,997		57,656
Net revenues	$	710,932	$	641,715

	Three Months Ended
	April 2, 2023		March 27, 2022
Americas	$	98,618	$	96,901
EMEA	12,771		9,094
Asia	21,000		17,417
OEM	20,037		10,923
Total segment operating profit (1)	152,426		134,335
Unallocated expenses (2)	(37,452)		(30,799)
Income from continuing operations before interest and taxes	$	114,974	$	103,536

(1)Segment operating profit includes segment net revenues from external customers reduced by its standard cost of goods sold, adjusted for fixed manufacturing cost absorption variances, selling, general and administrative expenses, research and development expenses and an allocation of corporate expenses.

(2)Unallocated expenses primarily include manufacturing variances other than fixed manufacturing cost absorption variances and restructuring and impairment charges.

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Recently issued accounting standards (Policies)

3 Months Ended

Apr. 02, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

Basis of presentation

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, 2022.

Recently issued accounting standards

Recently issued accounting standardsFrom 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.

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Net revenues (Tables)

3 Months Ended

Apr. 02, 2023

Revenue from Contract with Customer [Abstract]

Schedule of revenue by major customers by reporting segments

The following table disaggregates revenue by global product category for the three months ended April 2, 2023 and March 27, 2022.

	Three Months Ended
	April 2, 2023		March 27, 2022
Vascular access	$	177,652	$	166,134
Anesthesia	93,332		86,957
Interventional	116,897		96,859
Surgical	99,023		89,702
Interventional urology	75,378		74,895
OEM	76,997		57,656
Other (1)	71,653		69,512
Net revenues (2)	$	710,932	$	641,715

(1)     Includes revenues generated from sales of our respiratory and urology products (other than interventional urology products).

(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 includes net revenues from each of the non-OEM product categories listed above.

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Restructuring and impairment charges (Tables)

3 Months Ended

Apr. 02, 2023

Restructuring and Related Activities [Abstract]

Summary Of Current Cost Estimates By Major Type Of Cost Table

The following tables provide a summary of our cost estimates and other information associated with these plans:

	2022 restructuring plan	Respiratory divestiture plan
Plan expense estimates:	(Dollars in millions)
Termination benefits	$18 to $22	$5 to $8
Other costs (1)	1 to 1	— to —
Restructuring charges	19 to 23	5 to 8
Restructuring related charges (2)	20 to 25	19 to 22
Total restructuring and restructuring related charges	$39 to $48	$24 to $30
Other plan estimates:
Expected cash outlays	$26 to $32	$24 to $30
Expected capital expenditures	$2 to $2	$22 to $28
Other plan information:
Period initiated	November 2022	May 2021
Estimated period of substantial completion	2023	2023
Aggregate restructuring charges	$17.7	$3.4
Restructuring reserve:
Balance as of April 2, 2023	$12.6	$3.3
Restructuring related charges incurred:
Three Months Ended April 2, 2023	$4.4	$2.1
Aggregate restructuring related charges	$14.5	$14.3

(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. Substantially all of the restructuring related charges are expected to be recognized within cost of goods sold.

Restructuring and Other Impairment Charges

Restructuring and impairment charges recognized for the three months ended April 2, 2023 and March 27, 2022 consisted of the following:

Three Months Ended April 2, 2023
	Termination Benefits		Other Costs (1)		Total
2022 Restructuring plan	$	2,133	$	73	$	2,206
Respiratory divestiture plan	128		12		140
Other restructuring programs (2)	(314)		189		(125)
Restructuring charges	$	1,947	$	274	$	2,221

Three Months Ended March 27, 2022
	Termination Benefits		Other Costs (1)		Total
Respiratory divestiture plan	$	106	$	14	$	120
2019 Footprint realignment plan	(670)		24		(646)
2018 Footprint realignment plan	158		62		220
Other restructuring programs (3)	1,132		82		1,214
Restructuring charges	$	726	$	182	$	908
Asset impairment charges	—		1,497		1,497
Restructuring and impairment charges	$	726	$	1,679	$	2,405

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

(2) Includes activity primarily related to our 2014, 2018, and 2019 Footprint realignment plans.

(3) 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.

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Inventories (Tables)

3 Months Ended

Apr. 02, 2023

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventories as of April 2, 2023 and December 31, 2022 consisted of the following:

	April 2, 2023		December 31, 2022
Raw materials	$	195,962	$	186,641
Work-in-process	107,117		98,993
Finished goods	311,027		292,873
Inventories	$	614,106	$	578,507

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Goodwill and other intangible assets, net (Tables)

3 Months Ended

Apr. 02, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The following table provides information relating to changes in the carrying amount of goodwill by reportable operating segment for the three months ended April 2, 2023:

	Americas		EMEA		Asia		OEM		Total
December 31, 2022	$	1,731,093	$	468,524	$	225,103	$	112,010	$	2,536,730
Currency translation adjustment	1,592		7,540		1,978		—		11,110
April 2, 2023	$	1,732,685	$	476,064	$	227,081	$	112,010	$	2,547,840

Schedule of Finite-Lived Intangible Assets

The gross carrying amount of, and accumulated amortization relating to, intangible assets as of April 2, 2023 and December 31, 2022 were as follows:

	Gross Carrying Amount				Accumulated Amortization
	April 2, 2023		December 31, 2022		April 2, 2023		December 31, 2022
Customer relationships	$	1,330,674	$	1,328,539	$	(514,005)	$	(497,335)
In-process research and development	27,403		27,075		—		—
Intellectual property	1,602,097		1,599,355		(669,967)		(646,643)
Distribution rights	23,211		23,115		(21,378)		(21,090)
Trade names	565,938		564,023		(74,611)		(71,128)
Non-compete agreements	21,832		21,429		(21,659)		(21,175)
	$	3,571,155	$	3,563,536	$	(1,301,620)	$	(1,257,371)

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Financial instruments (Tables)

3 Months Ended

Apr. 02, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense

The following table summarizes the foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense related to cross currency swap for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
Foreign exchange (loss) gain	$	(10,031)	$	3,840
Interest benefit	5,108		4,848

Fair Values of Derivative Instruments Designated as Hedging Instruments

The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of April 2, 2023 and December 31, 2022:

	April 2, 2023		December 31, 2022
Asset derivatives:
Designated foreign currency forward contracts	$	6,004	$	3,154
Non-designated foreign currency forward contracts	43		41
Cross-currency interest rate swaps	52,526		48,503
Prepaid expenses and other current assets	58,573		51,698
Cross-currency interest rate swaps	—		11,912
Other assets	—		11,912
Total asset derivatives	$	58,573	$	63,610
Liability derivatives:
Designated foreign currency forward contracts	$	967	$	983
Non-designated foreign currency forward contracts	292		477
Other current liabilities	1,259		1,460
Total liability derivatives	$	1,259	$	1,460

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Fair value measurement (Tables)

3 Months Ended

Apr. 02, 2023

Fair Value Disclosures [Abstract]

Financial assets and liabilities carried at fair value measured on recurring basis

The following tables provide information regarding our financial assets and liabilities measured at fair value on a recurring basis as of April 2, 2023 and December 31, 2022:

	Total carrying  value at  April 2, 2023		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Investments in marketable securities	$	11,552	$	11,552	$	—	$	—
Derivative assets	58,573		—		58,573		—
Derivative liabilities	1,259		—		1,259		—
Contingent consideration liabilities	46,405		—		—		46,405

	Total carrying value at December 31, 2022		Quoted prices in active markets (Level 1)		Significant other observable Inputs (Level 2)		Significant unobservable Inputs (Level 3)
Investments in marketable securities	$	10,097	$	10,097	$	—	$	—
Derivative assets	63,610		—		63,610		—
Derivative liabilities	1,460		—		1,460		—
Contingent consideration liabilities	44,022		—		—		44,022

Reconciliation of Changes in Level 3 Financial Liabilities Measured at Fair Value on Recurring Basis

The following table provides information regarding changes in our contingent consideration liabilities for the three months ended April 2, 2023:

	Contingent consideration
Balance – December 31, 2022	$	44,022
Payments	(64)
Revaluations	2,447
Balance – April 2, 2023	$	46,405

Schedule of Valuation Techniques

The table below provides additional information regarding the valuation technique and inputs used in determining the fair value of our significant contingent consideration liabilities.

Contingent Consideration Liability	Valuation Technique	Unobservable Input
Revenue-based
	Monte Carlo simulation	Revenue volatility	31.3	%
		Risk free rate	Cost of debt structure
		Projected year of payment	2024 - 2026

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Shareholders' equity (Tables)

3 Months Ended

Apr. 02, 2023

Equity [Abstract]

Reconciliation of Basic to Diluted Weighted Average Common Shares Outstanding

The following table provides a reconciliation of basic to diluted weighted average number of common shares outstanding:

	Three Months Ended
	April 2, 2023	March 27, 2022
Basic	46,949	46,876
Dilutive effect of share-based awards	336	526
Diluted	47,285	47,402

Change in Accumulated Other Comprehensive Income (Loss)

The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the three months ended April 2, 2023 and March 27, 2022:

	Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustment		Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2022	$	4,931	$	(135,799)	$	(272,654)	$	(403,522)
Other comprehensive income (loss) before reclassifications	5,260		(184)		18,570		23,646
Amounts reclassified from accumulated other comprehensive income	(2,852)		1,397		—		(1,455)
Net current-period other comprehensive income	2,408		1,213		18,570		22,191
Balance as of April 2, 2023	$	7,339	$	(134,586)	$	(254,084)	$	(381,331)

	Cash Flow Hedges		Pension and Other Postretirement Benefit Plans		Foreign Currency Translation Adjustment		Accumulated Other Comprehensive (Loss) Income
Balance as of December 31, 2021	$	1,081	$	(138,290)	$	(209,750)	$	(346,959)
Other comprehensive income (loss) before reclassifications	57		246		(23,329)		(23,026)
Amounts reclassified from accumulated other comprehensive income	400		1,340		—		1,740
Net current-period other comprehensive income (loss)	457		1,586		(23,329)		(21,286)
Balance as of March 27, 2022	$	1,538	$	(136,704)	$	(233,079)	$	(368,245)

Reclassification of Gain/Losses into Income/Expense, Net of Tax

The following table provides information relating to the location in the statements of operations and amount of reclassifications of losses/(gains) in accumulated other comprehensive (loss) income into expense/(income), net of tax, for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
(Gains) Loss on foreign exchange contracts:
Cost of goods sold	$	(3,054)	$	398
Total before tax	(3,054)		398
Taxes	202		2
Net of tax	(2,852)		400
Amortization of pension and other postretirement benefit items (1):
Actuarial losses	2,066		2,000
Prior-service costs	(252)		(252)
Total before tax	1,814		1,748
Tax benefit	(417)		(408)
Net of tax	1,397		1,340
Total reclassifications, net of tax	$	(1,455)	$	1,740

(1) These accumulated other comprehensive (loss) income components are included in the computation of net benefit expense for pension and other postretirement benefit plans.

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Taxes on income from continuing operations (Tables)

3 Months Ended

Apr. 02, 2023

Income Tax Disclosure [Abstract]

Effective Income Tax Rate

	Three Months Ended
	April 2, 2023	March 27, 2022
Effective income tax rate	20.7%	17.1%

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Segment information (Tables)

3 Months Ended

Apr. 02, 2023

Segment Reporting [Abstract]

Segment Results

The following tables present our segment results for the three months ended April 2, 2023 and March 27, 2022:

	Three Months Ended
	April 2, 2023		March 27, 2022
Americas	$	411,864	$	377,961
EMEA	143,340		136,908
Asia	78,731		69,190
OEM	76,997		57,656
Net revenues	$	710,932	$	641,715

	Three Months Ended
	April 2, 2023		March 27, 2022
Americas	$	98,618	$	96,901
EMEA	12,771		9,094
Asia	21,000		17,417
OEM	20,037		10,923
Total segment operating profit (1)	152,426		134,335
Unallocated expenses (2)	(37,452)		(30,799)
Income from continuing operations before interest and taxes	$	114,974	$	103,536

(1)Segment operating profit includes segment net revenues from external customers reduced by its standard cost of goods sold, adjusted for fixed manufacturing cost absorption variances, selling, general and administrative expenses, research and development expenses and an allocation of corporate expenses.

(2)Unallocated expenses primarily include manufacturing variances other than fixed manufacturing cost absorption variances and restructuring and impairment charges.

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Net revenues (Details) - Sales revenue, net - Customer concentration risk	3 Months Ended
	Apr. 02, 2023
Hospitals And Healthcare Providers
Concentration Risk [Line Items]
Percentage of total revenue	87.00%
Other Medical Device Manufacturers
Concentration Risk [Line Items]
Percentage of total revenue	11.00%
Home Care Providers
Concentration Risk [Line Items]
Percentage of total revenue	2.00%

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Net revenues - Other revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Revenue, Major Customer [Line Items]
Net revenues	$ 710,932	$ 641,715
Vascular access
Revenue, Major Customer [Line Items]
Net revenues	177,652	166,134
Anesthesia
Revenue, Major Customer [Line Items]
Net revenues	93,332	86,957
Interventional
Revenue, Major Customer [Line Items]
Net revenues	116,897	96,859
Surgical
Revenue, Major Customer [Line Items]
Net revenues	99,023	89,702
Interventional urology
Revenue, Major Customer [Line Items]
Net revenues	75,378	74,895
OEM
Revenue, Major Customer [Line Items]
Net revenues	76,997	57,656
Other
Revenue, Major Customer [Line Items]
Net revenues	$ 71,653	$ 69,512

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Acquisitions and Divestiture (Details) - USD ($) $ in Millions			3 Months Ended
	Sep. 27, 2022	Jun. 28, 2021	Apr. 02, 2023	Mar. 27, 2022	May 15, 2021
Standard Bariatrics
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 173.0
Maximum additional payment upon completion of certain milestones	$ 130.0
Disposal group, held-for-sale, not discontinued operations | Medline Manufacturing And Supply Transition Agreement
Business Acquisition [Line Items]
Revenue from related parties			$ 20.0	$ 21.1
Respiratory Business | Disposal group, held-for-sale, not discontinued operations
Business Acquisition [Line Items]
Disposal group, including discontinued operation, consideration					$ 286.0
Disposal group, including discontinued operation, working capital					$ 12.0
Proceeds from divestiture of businesses		$ 259.0

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Restructuring and impairment charges - Expected costs to be incurred (Details) $ in Millions	3 Months Ended
	Apr. 02, 2023 USD ($)
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Aggregate restructuring charges	$ 17.7
Restructuring reserve	12.6
Restructuring expenses	4.4
Aggregate restructuring related charges	14.5
2022 Restructuring Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	39.0
Expected cash outlays	26.0
Expected capital expenditures	2.0
2022 Restructuring Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	48.0
Expected cash outlays	32.0
Expected capital expenditures	2.0
Respiratory divestiture plan
Restructuring Cost and Reserve [Line Items]
Aggregate restructuring charges	3.4
Restructuring reserve	3.3
Restructuring expenses	2.1
Aggregate restructuring related charges	14.3
Respiratory divestiture plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	24.0
Expected cash outlays	24.0
Expected capital expenditures	22.0
Respiratory divestiture plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	30.0
Expected cash outlays	30.0
Expected capital expenditures	28.0
Termination benefits | 2022 Restructuring Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	18.0
Termination benefits | 2022 Restructuring Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	22.0
Termination benefits | Respiratory divestiture plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	5.0
Termination benefits | Respiratory divestiture plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	8.0
Other restructuring costs | 2022 Restructuring Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	1.0
Other restructuring costs | 2022 Restructuring Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	1.0
Other restructuring costs | Respiratory divestiture plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	0.0
Other restructuring costs | Respiratory divestiture plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	0.0
Special Termination Benefit And Other Restructuring | 2022 Restructuring Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	19.0
Special Termination Benefit And Other Restructuring | 2022 Restructuring Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	23.0
Special Termination Benefit And Other Restructuring | Respiratory divestiture plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	5.0
Special Termination Benefit And Other Restructuring | Respiratory divestiture plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	8.0
Accelerated Depreciation And Other Costs | 2022 Restructuring Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	20.0
Accelerated Depreciation And Other Costs | 2022 Restructuring Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	25.0
Accelerated Depreciation And Other Costs | Respiratory divestiture plan | Minimum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	19.0
Accelerated Depreciation And Other Costs | Respiratory divestiture plan | Maximum
Restructuring Cost and Reserve [Line Items]
Expected restructuring charges	$ 22.0

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Restructuring and impairment charges - Charges recognized (Detail) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 2,221	$ 908
Asset impairment charges	0	1,497
Restructuring and impairment charges	2,221	2,405
Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1,947	726
Asset impairment charges		0
Restructuring and impairment charges		726
Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	274	182
Asset impairment charges		1,497
Restructuring and impairment charges		1,679
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,206
2022 Restructuring Plan | Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	2,133
2022 Restructuring Plan | Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	73
Respiratory divestiture plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges	140	120
Respiratory divestiture plan | Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	128	106
Respiratory divestiture plan | Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	12	14
2019 Footprint realignment plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges		(646)
2019 Footprint realignment plan | Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges		(670)
2019 Footprint realignment plan | Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		24
2018 Footprint realignment plan
Restructuring Cost and Reserve [Line Items]
Restructuring charges		220
2018 Footprint realignment plan | Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges		158
2018 Footprint realignment plan | Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges		62
Other restructuring programs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(125)	1,214
Other restructuring programs | Termination Benefits
Restructuring Cost and Reserve [Line Items]
Restructuring charges	(314)	1,132
Other restructuring programs | Other restructuring costs
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 189	$ 82

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Inventories (Detail) - USD ($) $ in Thousands	Apr. 02, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 195,962	$ 186,641
Work-in-process	107,117	98,993
Finished goods	311,027	292,873
Inventories	$ 614,106	$ 578,507

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Goodwill and other intangible assets, net - Changes in carrying amount of goodwill, by reporting segment (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 2,536,730
Currency translation adjustment	11,110
Goodwill, ending balance	2,547,840
Americas
Goodwill [Roll Forward]
Goodwill, beginning balance	1,731,093
Currency translation adjustment	1,592
Goodwill, ending balance	1,732,685
EMEA
Goodwill [Roll Forward]
Goodwill, beginning balance	468,524
Currency translation adjustment	7,540
Goodwill, ending balance	476,064
Asia
Goodwill [Roll Forward]
Goodwill, beginning balance	225,103
Currency translation adjustment	1,978
Goodwill, ending balance	227,081
OEM
Goodwill [Roll Forward]
Goodwill, beginning balance	112,010
Currency translation adjustment	0
Goodwill, ending balance	$ 112,010

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Goodwill and other intangible assets, net - Components of intangible assets (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 3,571,155	$ 3,563,536
Accumulated Amortization	(1,301,620)	(1,257,371)
In-process research and development
Finite-Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	27,403	27,075
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	1,330,674	1,328,539
Accumulated Amortization	(514,005)	(497,335)
Intellectual property
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	1,602,097	1,599,355
Accumulated Amortization	(669,967)	(646,643)
Distribution rights
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	23,211	23,115
Accumulated Amortization	(21,378)	(21,090)
Trade names
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	565,938	564,023
Accumulated Amortization	(74,611)	(71,128)
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets	21,832	21,429
Accumulated Amortization	$ (21,659)	$ (21,175)

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Financial instruments - Additional information (Details) € in Millions	3 Months Ended
	Apr. 02, 2023 USD ($)	Mar. 27, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2019 USD ($) Financial_Institution_Counterparty	Dec. 31, 2019 EUR (€) Financial_Institution_Counterparty	Dec. 31, 2018 USD ($) Financial_Institution_Counterparty	Dec. 31, 2018 EUR (€) Financial_Institution_Counterparty
Derivatives Fair Value [Line Items]
Allowance for credit losses	$ 9,100,000		$ 8,600,000
Allowance for credit losses, current	5,300,000		4,900,000
Cash flow hedging
Derivatives Fair Value [Line Items]
Ineffectiveness related to derivatives	0	$ 0
Foreign exchange contract | Not designated as hedging instrument
Derivatives Fair Value [Line Items]
Gains (losses) on derivatives	0	$ (3,300,000)
Total notional amount for all open foreign currency forward contracts	$ 119,700,000		152,900,000
Derivative, term of contract	12 months
Foreign exchange contract | Designated as hedging instrument | Cash flow hedging
Derivatives Fair Value [Line Items]
Total notional amount for all open foreign currency forward contracts	$ 239,800,000		$ 184,800,000
Cross-currency interest rate swaps | Designated as hedging instrument
Derivatives Fair Value [Line Items]
Total notional amount for all open foreign currency forward contracts				$ 250,000,000	€ 219.2	$ 500,000,000	€ 433.9
Derivative, number of instruments held | Financial_Institution_Counterparty				5	5	6	6
Derivative, fixed interest rate				4.875%	4.875%	4.625%	4.625%
Derivative, annual interest rate				2.4595%	2.4595%	1.942%	1.942%

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Financial instruments - Foreign exchange gains and losses recognized within AOCI and the interest benefit recognized within interest expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange (loss) gain	$ 18,570	$ (23,329)
Interest benefit	5,108	4,848
Cross-currency interest rate swaps | Not designated as hedging instrument
Derivative Instruments, Gain (Loss) [Line Items]
Interest benefit	5,108	4,848
Cross-currency interest rate swaps | Cash flow hedging
Derivative Instruments, Gain (Loss) [Line Items]
Foreign exchange (loss) gain	$ (10,031)	$ 3,840

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Financial instruments - Fair values of derivative instruments designated as hedging instruments (Details) - Cash flow hedging - USD ($) $ in Thousands	Apr. 02, 2023	Dec. 31, 2022
Derivatives Fair Value [Line Items]
Total asset derivatives	$ 58,573	$ 63,610
Total liability derivatives	1,259	1,460
Other assets
Derivatives Fair Value [Line Items]
Total asset derivatives	0	11,912
Foreign exchange contract | Prepaid expenses and other current assets
Derivatives Fair Value [Line Items]
Total asset derivatives	58,573	51,698
Foreign exchange contract | Other current liabilities
Derivatives Fair Value [Line Items]
Total liability derivatives	1,259	1,460
Foreign exchange contract | Designated as hedging instrument | Prepaid expenses and other current assets
Derivatives Fair Value [Line Items]
Total asset derivatives	6,004	3,154
Foreign exchange contract | Designated as hedging instrument | Other current liabilities
Derivatives Fair Value [Line Items]
Total liability derivatives	967	983
Foreign exchange contract | Not designated as hedging instrument | Prepaid expenses and other current assets
Derivatives Fair Value [Line Items]
Total asset derivatives	43	41
Foreign exchange contract | Not designated as hedging instrument | Other current liabilities
Derivatives Fair Value [Line Items]
Total liability derivatives	292	477
Cross-currency interest rate swaps | Not designated as hedging instrument | Prepaid expenses and other current assets
Derivatives Fair Value [Line Items]
Total asset derivatives	52,526	48,503
Cross-currency interest rate swaps | Not designated as hedging instrument | Other assets
Derivatives Fair Value [Line Items]
Total asset derivatives	$ 0	$ 11,912

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Fair value measurement - Financial assets and liabilities carried at fair value measured on recurring basis (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Dec. 31, 2022
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Investments in marketable securities	$ 11,552	$ 10,097
Derivative assets	58,573	63,610
Derivative liabilities	1,259	1,460
Contingent consideration liabilities	46,405	44,022
Quoted prices in active markets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Investments in marketable securities	11,552	10,097
Derivative assets	0	0
Derivative liabilities	0	0
Contingent consideration liabilities	0	0
Significant other observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Investments in marketable securities	0	0
Derivative assets	58,573	63,610
Derivative liabilities	1,259	1,460
Contingent consideration liabilities	0	0
Significant unobservable Inputs (Level 3)
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Investments in marketable securities	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Contingent consideration liabilities	$ 46,405	$ 44,022

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Fair value measurement - Valuation technique and inputs used in determining the fair value of contingent consideration (Details)	Apr. 02, 2023
Revenue-based Payment | Monte Carlo simulation | Measurement Input, Revenue Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Business combination, contingent consideration, liability, measurement input	0.313

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Fair value measurement - Reconciliation of changes in financial liabilities measured on recurring basis (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 44,022
Payments	(64)
Revaluations	2,447
Ending balance	$ 46,405

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Shareholders' equity - Reconciliation of basic to diluted weighted average common shares outstanding (Details) - shares shares in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Equity [Abstract]
Basic (in shares)	46,949	46,876
Dilutive effect of share-based awards (in shares)	336	526
Diluted (in shares)	47,285	47,402

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Shareholders' equity - Additional information (Details) - shares shares in Millions	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Equity [Abstract]
Weighted average antidilutive shares which were not included in the calculation of earnings per share	0.6	0.3

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Shareholders' equity - Change in accumulated other comprehensive income, net of tax (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	$ 4,021,968	$ 3,754,748
Other comprehensive income (loss) before reclassifications	23,646	(23,026)
Amounts reclassified from accumulated other comprehensive income	(1,455)	1,740
Net current-period other comprehensive income	22,191	(21,286)
Ending balance	4,110,253	3,795,534
Cash Flow Hedges
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	4,931	1,081
Other comprehensive income (loss) before reclassifications	5,260	57
Amounts reclassified from accumulated other comprehensive income	(2,852)	400
Net current-period other comprehensive income	2,408	457
Ending balance	7,339	1,538
Pension and Other Postretirement Benefit Plans
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(135,799)	(138,290)
Other comprehensive income (loss) before reclassifications	(184)	246
Amounts reclassified from accumulated other comprehensive income	1,397	1,340
Net current-period other comprehensive income	1,213	1,586
Ending balance	(134,586)	(136,704)
Foreign Currency Translation Adjustment
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(272,654)	(209,750)
Other comprehensive income (loss) before reclassifications	18,570	(23,329)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current-period other comprehensive income	18,570	(23,329)
Ending balance	(254,084)	(233,079)
Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(403,522)	(346,959)
Ending balance	$ (381,331)	$ (368,245)

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Shareholders' equity - Accumulated other comprehensive income into income expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of goods sold	$ 319,552	$ 295,482
Total before tax	97,480	93,340
(Benefit) tax	(20,184)	(15,973)
Net of tax	77,296	77,367
Reclassification out of accumulated other comprehensive income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total reclassifications, net of tax	(1,455)	1,740
Reclassification out of accumulated other comprehensive income | Actuarial losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	2,066	2,000
Reclassification out of accumulated other comprehensive income | Prior-service costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	(252)	(252)
Reclassification out of accumulated other comprehensive income | Pension and Other Postretirement Benefits Plans
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	1,814	1,748
(Benefit) tax	(417)	(408)
Net of tax	1,397	1,340
Reclassification out of accumulated other comprehensive income | Foreign exchange contract | Cash Flow Hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of goods sold	(3,054)	398
Total before tax	(3,054)	398
(Benefit) tax	202	2
Net of tax	$ (2,852)	$ 400

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Taxes on income from continuing operations (Details)	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Income Tax Disclosure [Abstract]
Effective income tax rate	20.70%	17.10%

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Commitments and contingent liabilities (Detail) $ in Millions	3 Months Ended
	Apr. 02, 2023 USD ($)
Loss Contingencies [Line Items]
Estimated litigation liability	$ 0.4
Italian Parliament Legislation
Loss Contingencies [Line Items]
Loss contingency accrual	11.9
Loss contingency, loss in period	0.8
Loss contingency, estimate of possible loss	$ 18.4
Minimum
Loss Contingencies [Line Items]
Estimated time frame over which accrued amounts may be paid out	10 years
Maximum
Loss Contingencies [Line Items]
Estimated time frame over which accrued amounts may be paid out	15 years
Accrued liabilities
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 2.5
Other liability
Loss Contingencies [Line Items]
Accrual for environmental loss contingencies	$ 3.6

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Segment information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Mar. 27, 2022
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	$ 710,932	$ 641,715
Operating profit	114,974	103,536
Operating segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating profit	152,426	134,335
Unallocated expenses
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating profit	(37,452)	(30,799)
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	411,864	377,961
Americas | Operating segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating profit	98,618	96,901
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	143,340	136,908
EMEA | Operating segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating profit	12,771	9,094
Asia
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	78,731	69,190
Asia | Operating segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating profit	21,000	17,417
OEM
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenues	76,997	57,656
OEM | Operating segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating profit	$ 20,037	$ 10,923