(Mark One) | |||||
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
(Dollars and shares in thousands, except per share) | |||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Research and development expenses | |||||||||||||||||||||||
Restructuring and impairment charges (credits) | ( | ||||||||||||||||||||||
Income from continuing operations before interest and taxes | |||||||||||||||||||||||
Interest expense | |||||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Income from continuing operations before taxes | |||||||||||||||||||||||
Taxes on income from continuing operations | |||||||||||||||||||||||
Income from continuing operations | |||||||||||||||||||||||
Operating loss from discontinued operations | ( | ( | ( | ( | |||||||||||||||||||
Tax benefit on operating loss from discontinued operations | ( | ( | ( | ( | |||||||||||||||||||
Loss from discontinued operations | ( | ( | ( | ( | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||
Basic: | |||||||||||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Loss from discontinued operations | ( | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Diluted: | |||||||||||||||||||||||
Income from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Loss from discontinued operations | ( | ||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||||||
Foreign currency translation, net of tax of $ | ( | ( | ( | ||||||||||||||||||||
Pension and other postretirement benefit plans adjustment, net of tax of $( | |||||||||||||||||||||||
Derivatives qualifying as hedges, net of tax of $ | |||||||||||||||||||||||
Other comprehensive (loss) income, net of tax: | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
July 2, 2023 | December 31, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Prepaid taxes | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Deferred tax assets | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Current borrowings | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Payroll and benefit-related liabilities | |||||||||||
Accrued interest | |||||||||||
Income taxes payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term borrowings | |||||||||||
Deferred tax liabilities | |||||||||||
Pension and postretirement benefit liabilities | |||||||||||
Noncurrent liability for uncertain tax positions | |||||||||||
Noncurrent operating lease liabilities | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
Six Months Ended | |||||||||||
July 2, 2023 | June 26, 2022 | ||||||||||
(Dollars in thousands) | |||||||||||
Cash flows from operating activities of continuing operations: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Loss from discontinued operations | |||||||||||
Depreciation expense | |||||||||||
Intangible asset amortization expense | |||||||||||
Deferred financing costs and debt discount amortization expense | |||||||||||
Changes in contingent consideration | ( | ||||||||||
Assets impairment charges | |||||||||||
Stock-based compensation | |||||||||||
Deferred income taxes, net | |||||||||||
Payments for contingent consideration | ( | ||||||||||
Interest benefit on swaps designated as net investment hedges | ( | ( | |||||||||
Other | ( | ||||||||||
Changes in assets and liabilities, net of effects of acquisitions and disposals: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other assets | |||||||||||
Accounts payable, accrued expenses and other liabilities | ( | ( | |||||||||
Income taxes receivable and payable, net | ( | ( | |||||||||
Net cash provided by operating activities from continuing operations | |||||||||||
Cash flows from investing activities of continuing operations: | |||||||||||
Expenditures for property, plant and equipment | ( | ( | |||||||||
Proceeds from sale of business and assets | |||||||||||
Payments for businesses and intangibles acquired, net of cash acquired | ( | ( | |||||||||
Net interest proceeds on swaps designated as net investment hedges | |||||||||||
Net cash used in investing activities from continuing operations | ( | ( | |||||||||
Cash flows from financing activities of continuing operations: | |||||||||||
Reduction in borrowings | ( | ( | |||||||||
Net payments from share based compensation plans and related tax impacts | ( | ||||||||||
Payments for contingent consideration | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash used in financing activities from continuing operations | ( | ( | |||||||||
Cash flows from discontinued operations: | |||||||||||
Net cash used in operating activities | ( | ( | |||||||||
Net cash used in discontinued operations | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at the beginning of the period | |||||||||||
Cash and cash equivalents at the end of the period | $ | $ | |||||||||
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 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at April 2, 2023 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
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 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 27, 2022 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends ($ | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Shares issued under compensation plans | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at June 26, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Vascular access | $ | $ | $ | $ | |||||||||||||||||||
Anesthesia | |||||||||||||||||||||||
Interventional | |||||||||||||||||||||||
Surgical | |||||||||||||||||||||||
Interventional urology | |||||||||||||||||||||||
OEM | |||||||||||||||||||||||
Other (1) | |||||||||||||||||||||||
Net revenues (2) | $ | $ | $ | $ |
Total estimated amount expected to be incurred | |||||
Plan expense estimates: | (Dollars in millions) | ||||
Restructuring charges (1) | $ | ||||
Restructuring related charges (2) | $ | ||||
Total restructuring and restructuring related charges | $ |
Three Months Ended July 2, 2023 | |||||||||||||||||
Termination Benefits | Other Costs (1) | Total | |||||||||||||||
2022 Restructuring plan | $ | $ | $ | ||||||||||||||
Respiratory divestiture plan | |||||||||||||||||
Other restructuring programs (2) | |||||||||||||||||
Restructuring charges | $ | $ | $ | ||||||||||||||
Three Months Ended June 26, 2022 | |||||||||||||||||
Termination Benefits | Other Costs (1) | Total | |||||||||||||||
Respiratory divestiture plan | $ | $ | $ | ||||||||||||||
2019 Footprint realignment plan | ( | ( | |||||||||||||||
2018 Footprint realignment plan | |||||||||||||||||
Other restructuring programs (3) | ( | ( | |||||||||||||||
Restructuring charges | $ | ( | $ | $ | ( | ||||||||||||
Six Months Ended July 2, 2023 | |||||||||||||||||
Termination Benefits | Other Costs (1) | Total | |||||||||||||||
2022 Restructuring plan | $ | $ | $ | ||||||||||||||
Respiratory divestiture plan | |||||||||||||||||
Other restructuring programs (2) | ( | ||||||||||||||||
Restructuring charges | $ | $ | $ |
Six Months Ended June 26, 2022 | |||||||||||||||||
Termination Benefits | Other Costs (1) | Total | |||||||||||||||
Respiratory divestiture plan | $ | $ | $ | ||||||||||||||
2019 Footprint realignment plan | ( | ( | |||||||||||||||
2018 Footprint realignment plan | |||||||||||||||||
Other restructuring programs (3) | |||||||||||||||||
Restructuring charges | |||||||||||||||||
Asset impairment charges | |||||||||||||||||
Restructuring and impairment charges | $ | $ | $ |
July 2, 2023 | December 31, 2022 | ||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Inventories | $ | $ |
Americas | EMEA | Asia | OEM | Total | |||||||||||||||||||||||||
December 31, 2022 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Currency translation adjustment | ( | ||||||||||||||||||||||||||||
July 2, 2023 | $ | $ | $ | $ | $ |
Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||
July 2, 2023 | December 31, 2022 | July 2, 2023 | December 31, 2022 | ||||||||||||||||||||
Customer relationships | $ | $ | $ | ( | $ | ( | |||||||||||||||||
In-process research and development | — | — | |||||||||||||||||||||
Intellectual property | ( | ( | |||||||||||||||||||||
Distribution rights | ( | ( | |||||||||||||||||||||
Trade names | ( | ( | |||||||||||||||||||||
Non-compete agreements | ( | ( | |||||||||||||||||||||
$ | $ | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Foreign exchange (loss) gain | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Interest benefit |
July 2, 2023 | December 31, 2022 | ||||||||||
Fair Value | |||||||||||
Asset derivatives: | |||||||||||
Designated foreign currency forward contracts | $ | $ | |||||||||
Non-designated foreign currency forward contracts | |||||||||||
Cross-currency interest rate swaps | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Cross-currency interest rate swaps | |||||||||||
Other assets | |||||||||||
Total asset derivatives | $ | $ | |||||||||
Liability derivatives: | |||||||||||
Designated foreign currency forward contracts | $ | $ | |||||||||
Non-designated foreign currency forward contracts | |||||||||||
Other current liabilities | |||||||||||
Total liability derivatives | $ | $ |
Total carrying value at July 2, 2023 | Quoted prices in active markets (Level 1) | Significant other observable Inputs (Level 2) | Significant unobservable Inputs (Level 3) | ||||||||||||||||||||
Investments in marketable securities | $ | $ | $ | $ | |||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||
Contingent consideration liabilities |
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 | $ | $ | $ | $ | |||||||||||||||||||
Derivative assets | |||||||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||
Contingent consideration liabilities |
Contingent Consideration Liability | Valuation Technique | Unobservable Input | ||||||||||||||||||
Revenue-based | ||||||||||||||||||||
Monte Carlo simulation | Revenue volatility | % | ||||||||||||||||||
Risk free rate | Cost of debt structure | |||||||||||||||||||
Projected year of payment | 2024 - 2026 | |||||||||||||||||||
Contingent consideration | |||||
Balance – December 31, 2022 | $ | ||||
Payments | ( | ||||
Revaluations | ( | ||||
Balance – July 2, 2023 | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Basic | |||||||||||||||||||||||
Dilutive effect of share-based awards | |||||||||||||||||||||||
Diluted |
Cash Flow Hedges | Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustment | Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | ( | ( | |||||||||||||||||||||
Net current-period other comprehensive income | |||||||||||||||||||||||
Balance as of July 2, 2023 | $ | $ | ( | $ | ( | $ | ( |
Cash Flow Hedges | Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustment | Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income | |||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance as of June 26, 2022 | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
(Gains) Loss on foreign exchange contracts: | |||||||||||||||||||||||
Cost of goods sold | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Total before tax | ( | ( | ( | ||||||||||||||||||||
Taxes | |||||||||||||||||||||||
Net of tax | ( | ( | ( | ||||||||||||||||||||
Amortization of pension and other postretirement benefit items (1): | |||||||||||||||||||||||
Actuarial losses | |||||||||||||||||||||||
Prior-service costs | ( | ( | ( | ( | |||||||||||||||||||
Total before tax | |||||||||||||||||||||||
Tax benefit | ( | ( | ( | ( | |||||||||||||||||||
Net of tax | |||||||||||||||||||||||
Total reclassifications, net of tax | $ | ( | $ | $ | ( | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Effective income tax rate |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Americas | $ | $ | $ | $ | |||||||||||||||||||
EMEA | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
OEM | |||||||||||||||||||||||
Net revenues | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Americas | $ | $ | $ | $ | |||||||||||||||||||
EMEA | |||||||||||||||||||||||
Asia | |||||||||||||||||||||||
OEM | |||||||||||||||||||||||
Total segment operating profit (1) | |||||||||||||||||||||||
Unallocated expenses (2) | ( | ( | ( | ( | |||||||||||||||||||
Income from continuing operations before interest and taxes | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Net revenues | $ | 743.3 | $ | 704.5 | $ | 1,454.2 | $ | 1,346.3 | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Gross profit | $ | 407.8 | $ | 388.8 | $ | 799.2 | $ | 735.1 | |||||||||||||||
Percentage of sales | 54.9 | % | 55.2 | % | 55.0 | % | 54.6 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Selling, general and administrative | $ | 223.3 | $ | 216.8 | $ | 456.0 | $ | 420.8 | |||||||||||||||
Percentage of sales | 30.0 | % | 30.8 | % | 31.4 | % | 31.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Research and development | $ | 39.4 | $ | 36.9 | $ | 80.9 | $ | 73.3 | |||||||||||||||
Percentage of sales | 5.3 | % | 5.2 | % | 5.6 | % | 5.4 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Restructuring and impairment charges (credits) | $ | 1.5 | $ | (0.1) | $ | 3.7 | $ | 2.3 |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Interest expense | $ | 17.8 | $ | 11.4 | $ | 36.1 | $ | 21.8 | |||||||||||||||
Average interest rate on debt | 4.1 | % | 2.3 | % | 4.0 | % | 2.2 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | July 2, 2023 | June 26, 2022 | ||||||||||||||||||||
Effective income tax rate | 12.2 | % | 14.9 | % | 15.9 | % | 15.8 | % |
Segment net revenues | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | % Increase/(Decrease) | July 2, 2023 | June 26, 2022 | % Increase/ (Decrease) | ||||||||||||||||||||||||||||||
Americas | $ | 424.7 | $ | 412.7 | 2.9 | $ | 836.5 | $ | 790.7 | 5.8 | |||||||||||||||||||||||||
EMEA | 147.8 | 145.2 | 1.8 | 291.2 | 282.1 | 3.2 | |||||||||||||||||||||||||||||
Asia | 86.7 | 76.6 | 13.1 | 165.4 | 145.8 | 13.5 | |||||||||||||||||||||||||||||
OEM | 84.1 | 70.0 | 20.2 | 161.1 | 127.7 | 26.2 | |||||||||||||||||||||||||||||
Segment net revenues | $ | 743.3 | $ | 704.5 | 5.5 | $ | 1,454.2 | $ | 1,346.3 | 8.0 | |||||||||||||||||||||||||
Segment operating profit | |||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||
July 2, 2023 | June 26, 2022 | % Increase/(Decrease) | July 2, 2023 | June 26, 2022 | % Increase/ (Decrease) | ||||||||||||||||||||||||||||||
Americas | $ | 116.3 | $ | 114.5 | 1.6 | $ | 214.9 | $ | 211.4 | 1.7 | |||||||||||||||||||||||||
EMEA | 13.1 | 12.7 | 2.9 | 25.9 | 21.8 | 18.6 | |||||||||||||||||||||||||||||
Asia | 23.1 | 21.5 | 7.7 | 44.1 | 38.9 | 13.5 | |||||||||||||||||||||||||||||
OEM | 23.8 | 17.8 | 33.3 | 43.8 | 28.8 | 52.4 | |||||||||||||||||||||||||||||
Segment operating profit (1) | $ | 176.3 | $ | 166.5 | 5.9 | $ | 328.7 | $ | 300.9 | 9.3 |
Six Months Ended | ||||||||||||||||||||
July 2, 2023 | ||||||||||||||||||||
Obligor Group | Intercompany | Obligor Group (excluding Intercompany) | ||||||||||||||||||
Net revenue | $ | 1,074.4 | $ | 154.2 | $ | 920.2 | ||||||||||||||
Cost of goods sold | 693.6 | 238.6 | 455.0 | |||||||||||||||||
Gross profit | 380.8 | (84.4) | 465.2 | |||||||||||||||||
Income from continuing operations | 103.0 | 45.1 | 57.9 | |||||||||||||||||
Net income | 102.4 | 45.1 | 57.3 |
July 2, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||
Obligor Group | Intercompany | Obligor Group (excluding Intercompany) | Obligor Group | Intercompany | Obligor Group (excluding Intercompany) | |||||||||||||||||||||||||||||||||
Total current assets | $ | 942.1 | $ | 182.9 | $ | 759.2 | $ | 878.3 | $ | 110.5 | $ | 767.8 | ||||||||||||||||||||||||||
Total assets | 3,413.3 | 1,583.5 | 1,829.8 | 3,420.3 | 1,510.9 | 1,909.4 | ||||||||||||||||||||||||||||||||
Total current liabilities | 997.6 | 773.5 | 224.1 | 882.9 | 627.9 | 255.0 | ||||||||||||||||||||||||||||||||
Total liabilities | 3,106.2 | 879.1 | 2,227.1 | 3,168.0 | 712.3 | 2,455.7 | ||||||||||||||||||||||||||||||||
Exhibit No. | Description | |||||||||||||
31.1 | — | |||||||||||||
31.2 | — | |||||||||||||
32.1 | — | |||||||||||||
32.2 | — | |||||||||||||
101.1 | — | The following materials from our Quarterly Report on Form 10-Q for the quarter ended July 2, 2023, formatted in inline XBRL (eXtensible Business Reporting Language): (i) Cover Page; (ii) the Condensed Consolidated Statements of Income for the three and six months ended July 2, 2023 and June 26, 2022; (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended July 2, 2023 and June 26, 2022; (iv) the Condensed Consolidated Balance Sheets as of July 2, 2023 and December 31, 2022; (v) the Condensed Consolidated Statements of Cash Flows for the six months ended July 2, 2023 and June 26, 2022; (vi) the Condensed Consolidated Statements of Changes in Equity for the three and six months ended July 2, 2023 and June 26, 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 July 2, 2023, formatted in inline XBRL (included in Exhibit 101.1). |
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) |
Date: August 3, 2023 | /s/ Liam J. Kelly | |||||||
Liam J. Kelly | ||||||||
President and Chief Executive Officer |
Date: August 3, 2023 | /s/ Thomas E. Powell | |||||||
Thomas E. Powell | ||||||||
Executive Vice President and Chief Financial Officer |
Date: August 3, 2023 | /s/ Liam J. Kelly | |||||||
Liam J. Kelly President and Chief Executive Officer |
Date: August 3, 2023 | /s/ Thomas E. Powell | |||||||
Thomas E. Powell Executive Vice President and Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 111,335 | $ 105,514 | $ 188,083 | $ 182,655 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation, net of tax of $1,263, $(6,688), $4,233, and $(7,823) for the three and six months periods, respectively | (2,521) | (45,053) | 16,049 | (68,382) |
Pension and other postretirement benefit plans adjustment, net of tax of $(352), $(647), $(706), and $(1,146) for the three and six months periods, respectively | 1,195 | 2,026 | 2,408 | 3,612 |
Derivatives qualifying as hedges, net of tax of $330, $(104), $450, and $(134) for the three and six months periods, respectively | 793 | 2,577 | 3,201 | 3,034 |
Other comprehensive (loss) income, net of tax: | (533) | (40,450) | 21,658 | (61,736) |
Comprehensive income | $ 110,802 | $ 65,064 | $ 209,741 | $ 120,919 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, tax | $ 1,263 | $ (6,688) | $ 4,233 | $ (7,823) |
Pension and other postretirement benefits plans adjustment, tax | (352) | (647) | (706) | (1,146) |
Derivatives qualifying as hedges, tax | $ 330 | $ (104) | $ 450 | $ (134) |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares |
3 Months Ended | |||
---|---|---|---|---|
Jul. 02, 2023 |
Apr. 02, 2023 |
Jun. 26, 2022 |
Mar. 27, 2022 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share (in dollars per share) | $ 0.34 | $ 0.34 | $ 0.34 | $ 0.34 |
Basis of presentation |
6 Months Ended |
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Jul. 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.
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Recently issued accounting standards |
6 Months Ended |
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Jul. 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. |
Net revenues |
6 Months Ended |
---|---|
Jul. 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 six months ended July 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. |
Acquisitions and Divestiture |
6 Months Ended |
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Jul. 02, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Acquisitions and Divestiture | Acquisitions 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 the 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 $20.9 million and $40.9 million for the three and six months ended July 2, 2023, respectively, and $20.3 million and $41.4 million for the three and six months ended June 26, 2022, respectively. Subsequent event On July 25, 2023, we executed a definitive agreement to acquire Palette Life Sciences AB (“Palette”), a privately held medical device company that sells a portfolio of hyaluronic acid gel-based products primarily utilized in the treatment of urology diseases including a rectal spacing product used in connection with radiation therapy treatment of prostate cancer. The acquisition will complement our interventional urology product portfolio. Under the terms of the agreement, we will acquire Palette for an initial cash payment of $600 million, with additional consideration of up to $50 million payable upon the achievement of certain commercial milestones. The acquisition is subject to customary closing conditions, including receipt of certain regulatory approvals, and is expected to be completed in the fourth quarter of 2023. We anticipate using borrowings under our revolving credit facility and cash on hand to finance the acquisition.
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Restructuring and impairment charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and impairment charges | Restructuring and impairment charges Respiratory divestiture plan During 2021, in connection with the Respiratory business divestiture, we committed to a restructuring plan designed to separate the manufacturing operations to be transferred to Medline from those that will remain with Teleflex, which includes related workforce reductions (the “Respiratory divestiture plan”). The plan includes expanding certain of our existing locations to accommodate the transfer of capacity from the sites being transferred to Medline and replicating the manufacturing processes at alternate existing locations. We expect this plan will be substantially completed by the end of 2023. The following table provides a summary of our cost estimates by major type of expense associated with the Respiratory divestiture plan:
(1) Substantially all of the charges consist of employee termination benefit costs. (2)Consist of charges that are directly related to the Respiratory divestiture plan and principally constitute costs to transfer manufacturing operations to other locations and project management costs. Substantially all of the charges are expected to be recognized within costs of goods sold. We recorded restructuring related charges with respect to the Respiratory divestiture plan of $2.0 million and $4.1 million for the three and six months ended July 2, 2023, respectively, and $2.4 million and $4.4 million for the three and six months ended June 26, 2022, respectively. The restructuring related charges were included within cost of goods sold. As of July 2, 2023, we have incurred net aggregate restructuring expenses related to the Respiratory divestiture plan of $3.5 million. Additionally, as of July 2, 2023, we have incurred net aggregate restructuring related charges in connection with the Respiratory divestiture plan of $16.3 million, which were primarily included in cost of goods sold. As of July 2, 2023, we have a restructuring reserve of $3.5 million in connection with this plan. 2022 Restructuring plan In November 2022, we initiated a strategic restructuring plan designed to improve operating performance and position the organization to deliver long-term durable growth by creating efficiencies that align with our high growth strategic objectives (the “2022 Restructuring plan”). The plan is substantially complete and as a result, we expect future restructuring expenses associated with the plan, if any, to be immaterial. Restructuring and impairment charges recognized for the three and six months ended July 2, 2023 and June 26, 2022 consisted of the following:
(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 |
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories as of July 2, 2023 and December 31, 2022 consisted of the following:
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Goodwill and other intangible assets |
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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 six months ended July 2, 2023:
The gross carrying amount of, and accumulated amortization relating to, intangible assets as of July 2, 2023 and December 31, 2022 were as follows:
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Financial instruments |
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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 and six months ended July 2, 2023, we recognized gains of $2.0 million and $2.1 million, respectively, related to non-designated foreign currency forward contracts. For the three and six months ended June 26, 2022, we recognized a gain of $0.1 million and a loss of $3.2 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 July 2, 2023 and December 31, 2022 was $222.3 million and $184.8 million, respectively. The total notional amount for all open non-designated foreign currency forward contracts as of July 2, 2023 and December 31, 2022 was $137.1 million and $152.9 million, respectively. All open foreign currency forward contracts as of July 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 and six months ended July 2, 2023 and June 26, 2022:
Balance sheet presentation The following table presents the locations in the condensed consolidated balance sheet and fair value of derivative financial instruments as of July 2, 2023 and December 31, 2022:
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 and six months ended July 2, 2023 and June 26, 2022. Trade receivables The allowance for credit losses as of July 2, 2023 and December 31, 2022 was $9.5 million and $8.6 million, respectively. The current portion of the allowance for credit losses, which was $5.5 million and $4.9 million as of July 2, 2023 and December 31, 2022, respectively, was recognized as a reduction of accounts receivable, net.
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Fair value measurement |
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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 July 2, 2023 and December 31, 2022:
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.
The following table provides information regarding changes in our contingent consideration liabilities for the three and six months ended July 2, 2023:
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Shareholders' equity |
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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:
The weighted average number of shares that were antidilutive and therefore excluded from the calculation of earnings per share were 0.7 million for the three and six months ended July 2, 2023, and 0.4 million and 0.3 million for the three and six months ended June 26, 2022, respectively. The following tables provide information relating to the changes in accumulated other comprehensive loss, net of tax, for the six months ended July 2, 2023 and June 26, 2022:
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 (income) expense, net of tax, for the three and six months ended July 2, 2023 and June 26, 2022:
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Taxes on income from continuing operations |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxes on income from continuing operations | Taxes on income from continuing operations
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Commitments and contingent liabilities |
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Jul. 02, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingent liabilities | 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 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 July 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 July 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 July 2, 2023, we have recorded accrued liabilities of $0.6 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 July 2, 2023, our reserve for this matter was $12.6 million, of which, $1.5 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 $18.6 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. In June, SAT was provided with the 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 July 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 July 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 |
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Segment information | Segment information The following tables present our segment results for the three and six months ended July 2, 2023 and June 26, 2022:
(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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Pay vs Performance Disclosure - USD ($) $ in Thousands |
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Pay vs Performance Disclosure | ||||||
Net income | $ 111,335 | $ 76,748 | $ 105,514 | $ 77,141 | $ 188,083 | $ 182,655 |
Insider Trading Arrangements |
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Jul. 02, 2023
shares
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Jul. 02, 2023
shares
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Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Cameron Hicks [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 9, 2023, Cameron Hicks, our Corporate Vice President and Chief Human Resources Officer, adopted a trading plan for the sale of shares of our common stock, which plan is intended to satisfy the affirmative defense conditions of Rule 10b5–1(c) (a “10b5-1 Plan”) under the Securities Exchange Act of 1934, as amended. The 10b5-1 Plan provides for the sale in the open market of up to 3,001 shares of our common stock issuable to Mr. Hicks upon the exercise of stock options with expiration dates within the next two years. The 10b5-1 Plan calls for the sales to be completed during a period beginning on August 8, 2023 and ending on May 9, 2024. | |
Name | Cameron Hicks | |
Title | Corporate Vice President and Chief Human Resources Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 9, 2023 | |
Arrangement Duration | 366 days | |
Aggregate Available | 3,001 | 3,001 |
Recently issued accounting standards (Policies) |
6 Months Ended |
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Jul. 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.
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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. |
Net revenues (Tables) |
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Jul. 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 and six months ended July 2, 2023 and June 26, 2022.
(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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Current Cost Estimates By Major Type Of Cost Table | The following table provides a summary of our cost estimates by major type of expense associated with the Respiratory divestiture plan:
(1) Substantially all of the charges consist of employee termination benefit costs. (2)Consist of charges that are directly related to the Respiratory divestiture plan and principally constitute costs to transfer manufacturing operations to other locations and project management costs. Substantially all of the charges are expected to be recognized within costs of goods sold.
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Restructuring and Other Impairment Charges | Restructuring and impairment charges recognized for the three and six months ended July 2, 2023 and June 26, 2022 consisted of the following:
(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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories as of July 2, 2023 and December 31, 2022 consisted of the following:
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Goodwill and other intangible assets, net (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 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 six months ended July 2, 2023:
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Schedule of Finite-Lived Intangible Assets | The gross carrying amount of, and accumulated amortization relating to, intangible assets as of July 2, 2023 and December 31, 2022 were as follows:
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Financial instruments (Tables) |
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Jul. 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 and six months ended July 2, 2023 and June 26, 2022:
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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 July 2, 2023 and December 31, 2022:
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Fair value measurement (Tables) |
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Jul. 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 July 2, 2023 and December 31, 2022:
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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 and six months ended July 2, 2023:
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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.
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Shareholders' equity (Tables) |
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Jul. 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:
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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 six months ended July 2, 2023 and June 26, 2022:
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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 (income) expense, net of tax, for the three and six months ended July 2, 2023 and June 26, 2022:
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Taxes on income from continuing operations (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effective Income Tax Rate |
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Segment information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Results | The following tables present our segment results for the three and six months ended July 2, 2023 and June 26, 2022:
(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.
|
Net revenues (Details) - Sales revenue, net - Customer concentration risk |
6 Months Ended |
---|---|
Jul. 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% |
Net revenues - Other revenues (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
|
Revenue, Major Customer [Line Items] | ||||
Net revenues | $ 743,259 | $ 704,542 | $ 1,454,191 | $ 1,346,257 |
Vascular access | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | 173,785 | 163,907 | 351,437 | 330,041 |
Anesthesia | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | 100,842 | 104,695 | 194,174 | 191,652 |
Interventional | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | 124,780 | 114,342 | 241,677 | 211,201 |
Surgical | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | 105,953 | 99,642 | 204,976 | 189,344 |
Interventional urology | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | 77,819 | 79,818 | 153,197 | 154,713 |
OEM | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | 84,128 | 70,003 | 161,125 | 127,659 |
Other | ||||
Revenue, Major Customer [Line Items] | ||||
Net revenues | $ 75,952 | $ 72,135 | $ 147,605 | $ 141,647 |
Inventories (Detail) - USD ($) $ in Thousands |
Jul. 02, 2023 |
Dec. 31, 2022 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 202,251 | $ 186,641 |
Work-in-process | 107,258 | 98,993 |
Finished goods | 322,046 | 292,873 |
Inventories | $ 631,555 | $ 578,507 |
Goodwill and other intangible assets, net - Changes in carrying amount of goodwill, by reporting segment (Details) $ in Thousands |
6 Months Ended |
---|---|
Jul. 02, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 2,536,730 |
Currency translation adjustment | 9,400 |
Goodwill, ending balance | 2,546,130 |
Americas | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,731,093 |
Currency translation adjustment | 3,186 |
Goodwill, ending balance | 1,734,279 |
EMEA | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 468,524 |
Currency translation adjustment | 10,151 |
Goodwill, ending balance | 478,675 |
Asia | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 225,103 |
Currency translation adjustment | (3,937) |
Goodwill, ending balance | 221,166 |
OEM | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 112,010 |
Currency translation adjustment | 0 |
Goodwill, ending balance | $ 112,010 |
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 | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange (loss) gain | $ (2,521) | $ (45,053) | $ 16,049 | $ (68,382) |
Interest benefit | 10,288 | 10,145 | ||
Cross-currency interest rate swaps | Not designated as hedging instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest benefit | 5,180 | 5,297 | 10,288 | 10,145 |
Cross-currency interest rate swaps | Cash flow hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange (loss) gain | $ (4,259) | $ 22,614 | $ (14,290) | $ 26,454 |
Fair value measurement - Valuation technique and inputs used in determining the fair value of contingent consideration (Details) |
Jul. 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 | 0.314 |
Fair value measurement - Reconciliation of changes in financial liabilities measured on recurring basis (Details) $ in Thousands |
6 Months Ended |
---|---|
Jul. 02, 2023
USD ($)
| |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 44,022 |
Payments | (121) |
Revaluations | (6,776) |
Ending balance | $ 37,125 |
Shareholders' equity - Reconciliation of basic to diluted weighted average common shares outstanding (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
|
Equity [Abstract] | ||||
Basic (in shares) | 46,981 | 46,901 | 46,965 | 46,889 |
Dilutive effect of share-based awards (in shares) | 348 | 446 | 342 | 485 |
Diluted (in shares) | 47,329 | 47,347 | 47,307 | 47,374 |
Shareholders' equity - Additional information (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
|
Equity [Abstract] | ||||
Weighted average antidilutive shares which were not included in the calculation of earnings per share | 0.7 | 0.4 | 0.7 | 0.3 |
Taxes on income from continuing operations (Details) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jul. 02, 2023 |
Jun. 26, 2022 |
Jul. 02, 2023 |
Jun. 26, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 12.20% | 14.90% | 15.90% | 15.80% |
Commitments and contingent liabilities (Detail) $ in Millions |
6 Months Ended |
---|---|
Jul. 02, 2023
USD ($)
| |
Loss Contingencies [Line Items] | |
Estimated litigation liability | $ 0.6 |
Italian Parliament Legislation | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | 12.6 |
Loss contingency, loss in period | 1.5 |
Loss contingency, estimate of possible loss | $ 18.6 |
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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