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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Teleflex Inc | NYSE:TFX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
4.28 | 2.15% | 203.01 | 206.515 | 199.12 | 201.19 | 507,300 | 21:00:50 |
|
|
(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
|
|
|
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)
|
|
(Zip Code)
|
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
|
|
Large accelerated filer
|
☒
|
|
|
Accelerated filer
|
☐
|
|
|
|
|
|
|||
Non-accelerated filer
|
☐
|
|
|
Smaller reporting company
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
Page
|
||
|
|
|||
|
|
|
|
|
Item 1:
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
|
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|
||
|
|
|
||
Item 2:
|
|
|
||
Item 3:
|
|
|
||
Item 4:
|
|
|
||
|
|
|
||
|
|
|||
|
|
|
|
|
Item 1:
|
|
|
||
Item 1A:
|
|
|
||
Item 2:
|
|
|
||
Item 3:
|
|
|
||
Item 4:
|
|
|
||
Item 5:
|
|
|
||
Item 6:
|
|
|
||
|
|
|
||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars and shares in thousands, except per share)
|
||||||||||||||
Net revenues
|
$
|
652,507
|
|
|
$
|
609,866
|
|
|
$
|
1,266,091
|
|
|
$
|
1,197,096
|
|
Cost of goods sold
|
279,583
|
|
|
265,088
|
|
|
548,425
|
|
|
521,048
|
|
||||
Gross profit
|
372,924
|
|
|
344,778
|
|
|
717,666
|
|
|
676,048
|
|
||||
Selling, general and administrative expenses
|
236,186
|
|
|
229,917
|
|
|
463,879
|
|
|
445,254
|
|
||||
Research and development expenses
|
27,595
|
|
|
26,018
|
|
|
54,745
|
|
|
52,045
|
|
||||
Restructuring and impairment charges
|
1,685
|
|
|
55,353
|
|
|
19,080
|
|
|
58,416
|
|
||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
(2,739
|
)
|
|
—
|
|
||||
Income from continuing operations before interest and taxes
|
107,458
|
|
|
33,490
|
|
|
182,701
|
|
|
120,333
|
|
||||
Interest expense
|
20,758
|
|
|
26,649
|
|
|
43,450
|
|
|
52,592
|
|
||||
Interest income
|
(472
|
)
|
|
(183
|
)
|
|
(811
|
)
|
|
(456
|
)
|
||||
Income from continuing operations before taxes
|
87,172
|
|
|
7,024
|
|
|
140,062
|
|
|
68,197
|
|
||||
Taxes on income from continuing operations
|
3,844
|
|
|
9,576
|
|
|
14,816
|
|
|
15,818
|
|
||||
Income (loss) from continuing operations
|
83,328
|
|
|
(2,552
|
)
|
|
125,246
|
|
|
52,379
|
|
||||
Operating income (loss) from discontinued operations
|
61
|
|
|
94
|
|
|
(1,282
|
)
|
|
1,329
|
|
||||
Tax (benefit) on income (loss) from discontinued operations
|
14
|
|
|
38
|
|
|
(308
|
)
|
|
20
|
|
||||
Income (loss) from discontinued operations
|
47
|
|
|
56
|
|
|
(974
|
)
|
|
1,309
|
|
||||
Net income (loss)
|
$
|
83,375
|
|
|
$
|
(2,496
|
)
|
|
$
|
124,272
|
|
|
$
|
53,688
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
1.80
|
|
|
$
|
(0.06
|
)
|
|
$
|
2.72
|
|
|
$
|
1.15
|
|
Income (loss) from discontinued operations
|
0.01
|
|
|
0.01
|
|
|
(0.02
|
)
|
|
0.03
|
|
||||
Net income (loss)
|
$
|
1.81
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.70
|
|
|
$
|
1.18
|
|
Diluted:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
1.77
|
|
|
$
|
(0.06
|
)
|
|
$
|
2.67
|
|
|
$
|
1.12
|
|
Income (loss) from discontinued operations
|
—
|
|
|
0.01
|
|
|
(0.03
|
)
|
|
0.03
|
|
||||
Net income (loss)
|
$
|
1.77
|
|
|
$
|
(0.05
|
)
|
|
$
|
2.64
|
|
|
$
|
1.15
|
|
Weighted average common shares outstanding
|
|
|
|
|
|
|
|
||||||||
Basic
|
46,172
|
|
|
45,581
|
|
|
46,111
|
|
|
45,455
|
|
||||
Diluted
|
47,036
|
|
|
45,581
|
|
|
46,989
|
|
|
46,771
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Net income (loss)
|
$
|
83,375
|
|
|
$
|
(2,496
|
)
|
|
$
|
124,272
|
|
|
$
|
53,688
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation, net of tax of $0, $9,378, $0, and $3,505, for the three and six months periods, respectively
|
12,568
|
|
|
(125,705
|
)
|
|
12,332
|
|
|
(44,517
|
)
|
||||
Pension and other postretirement benefit plans adjustment, net of tax of $(446), $(656), $(836), and $(890) for the three and six months periods, respectively
|
1,459
|
|
|
2,015
|
|
|
2,688
|
|
|
2,896
|
|
||||
Derivatives qualifying as hedges, net of tax of $83, $100, $82, and $(111) for the three and six months periods, respectively
|
755
|
|
|
(329
|
)
|
|
158
|
|
|
292
|
|
||||
Other comprehensive income (loss), net of tax:
|
14,782
|
|
|
(124,019
|
)
|
|
15,178
|
|
|
(41,329
|
)
|
||||
Comprehensive income (loss)
|
$
|
98,157
|
|
|
$
|
(126,515
|
)
|
|
$
|
139,450
|
|
|
$
|
12,359
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(Dollars in thousands)
|
||||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
303,896
|
|
|
$
|
357,161
|
|
Accounts receivable, net
|
382,142
|
|
|
366,286
|
|
||
Inventories, net
|
461,320
|
|
|
427,778
|
|
||
Prepaid expenses and other current assets
|
78,477
|
|
|
72,481
|
|
||
Prepaid taxes
|
19,306
|
|
|
12,463
|
|
||
Total current assets
|
1,245,141
|
|
|
1,236,169
|
|
||
Property, plant and equipment, net
|
425,475
|
|
|
432,766
|
|
||
Operating lease assets
|
107,543
|
|
|
—
|
|
||
Goodwill
|
2,250,219
|
|
|
2,246,579
|
|
||
Intangible assets, net
|
2,242,267
|
|
|
2,325,052
|
|
||
Deferred tax assets
|
3,056
|
|
|
2,446
|
|
||
Other assets
|
40,709
|
|
|
34,979
|
|
||
Total assets
|
$
|
6,314,410
|
|
|
$
|
6,277,991
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Current borrowings
|
$
|
50,000
|
|
|
$
|
86,625
|
|
Accounts payable
|
108,059
|
|
|
106,709
|
|
||
Accrued expenses
|
87,698
|
|
|
97,551
|
|
||
Current portion of contingent consideration
|
119,706
|
|
|
136,877
|
|
||
Payroll and benefit-related liabilities
|
88,888
|
|
|
104,670
|
|
||
Accrued interest
|
6,009
|
|
|
6,031
|
|
||
Income taxes payable
|
4,448
|
|
|
5,943
|
|
||
Other current liabilities
|
29,084
|
|
|
38,050
|
|
||
Total current liabilities
|
493,892
|
|
|
582,456
|
|
||
Long-term borrowings
|
2,081,372
|
|
|
2,072,200
|
|
||
Deferred tax liabilities
|
604,856
|
|
|
608,221
|
|
||
Pension and postretirement benefit liabilities
|
86,149
|
|
|
92,914
|
|
||
Noncurrent liability for uncertain tax positions
|
11,029
|
|
|
10,718
|
|
||
Noncurrent contingent consideration
|
71,965
|
|
|
167,370
|
|
||
Noncurrent operating lease liabilities
|
96,502
|
|
|
—
|
|
||
Other liabilities
|
203,801
|
|
|
204,134
|
|
||
Total liabilities
|
3,649,566
|
|
|
3,738,013
|
|
||
Commitments and contingencies
|
|
|
|
||||
Total shareholders' equity
|
2,664,844
|
|
|
2,539,978
|
|
||
Total liabilities and shareholders' equity
|
$
|
6,314,410
|
|
|
$
|
6,277,991
|
|
|
Six Months Ended
|
||||||
|
June 30, 2019
|
|
July 1, 2018
|
||||
|
(Dollars in thousands)
|
||||||
Cash flows from operating activities of continuing operations:
|
|
|
|
||||
Net income
|
$
|
124,272
|
|
|
$
|
53,688
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Loss (income) from discontinued operations
|
974
|
|
|
(1,309
|
)
|
||
Depreciation expense
|
31,966
|
|
|
29,527
|
|
||
Amortization expense of intangible assets
|
75,285
|
|
|
75,008
|
|
||
Amortization expense of deferred financing costs and debt discount
|
2,249
|
|
|
2,368
|
|
||
Gain on sale of assets
|
(2,739
|
)
|
|
—
|
|
||
Changes in contingent consideration
|
25,456
|
|
|
34,618
|
|
||
Impairment of long-lived assets
|
6,911
|
|
|
1,865
|
|
||
Stock-based compensation
|
12,700
|
|
|
10,737
|
|
||
Deferred income taxes, net
|
(5,495
|
)
|
|
4,821
|
|
||
Payments for contingent consideration
|
(26,092
|
)
|
|
—
|
|
||
Other
|
(4,527
|
)
|
|
(3,669
|
)
|
||
Changes in assets and liabilities, net of effects of acquisitions and disposals:
|
|
|
|
||||
Accounts receivable
|
(19,747
|
)
|
|
(15,886
|
)
|
||
Inventories
|
(33,970
|
)
|
|
(15,017
|
)
|
||
Prepaid expenses and other assets
|
(6,381
|
)
|
|
(3,611
|
)
|
||
Accounts payable, accrued expenses and other liabilities
|
(6,231
|
)
|
|
38,112
|
|
||
Income taxes receivable and payable, net
|
(17,347
|
)
|
|
(29,668
|
)
|
||
Net cash provided by operating activities from continuing operations
|
157,284
|
|
|
181,584
|
|
||
Cash flows from investing activities of continuing operations:
|
|
|
|
||||
Expenditures for property, plant and equipment
|
(56,107
|
)
|
|
(38,004
|
)
|
||
Proceeds from sale of assets
|
1,178
|
|
|
—
|
|
||
Payments for businesses and intangibles acquired, net of cash acquired
|
(1,025
|
)
|
|
(22,450
|
)
|
||
Net interest proceeds on swaps designated as net investment hedges
|
8,330
|
|
|
—
|
|
||
Net cash used in investing activities from continuing operations
|
(47,624
|
)
|
|
(60,454
|
)
|
||
Cash flows from financing activities of continuing operations:
|
|
|
|
||||
Proceeds from new borrowings
|
25,000
|
|
|
—
|
|
||
Reduction in borrowings
|
(52,500
|
)
|
|
(18,500
|
)
|
||
Debt extinguishment, issuance and amendment fees
|
(4,703
|
)
|
|
(188
|
)
|
||
Net proceeds from share based compensation plans and the related tax impacts
|
7,829
|
|
|
9,800
|
|
||
Payments for contingent consideration
|
(111,928
|
)
|
|
(62,574
|
)
|
||
Dividends paid
|
(31,347
|
)
|
|
(30,938
|
)
|
||
Net cash used in financing activities from continuing operations
|
(167,649
|
)
|
|
(102,400
|
)
|
||
Cash flows from discontinued operations:
|
|
|
|
||||
Net cash provided by (used in) operating activities
|
2,799
|
|
|
(464
|
)
|
||
Net cash provided by (used in) discontinued operations
|
2,799
|
|
|
(464
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
1,925
|
|
|
(5,520
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(53,265
|
)
|
|
12,746
|
|
||
Cash and cash equivalents at the beginning of the period
|
357,161
|
|
|
333,558
|
|
||
Cash and cash equivalents at the end of the period
|
$
|
303,896
|
|
|
$
|
346,304
|
|
|
|
|
|
||||
Non cash investing activities of continuing operations:
|
|
|
|
||||
Property, plant and equipment additions due to build-to-suit lease transaction
|
$
|
—
|
|
|
$
|
28,147
|
|
|
|
|
|
||||
Non cash financing activities of continuing operations:
|
|
|
|
||||
Acquisition of treasury stock associated with settlement and exchange of convertible note hedge and warrant agreements
|
$
|
—
|
|
|
$
|
36,877
|
|
|
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, 2018
|
47,248
|
|
|
$
|
47,248
|
|
|
$
|
574,761
|
|
|
$
|
2,427,599
|
|
|
$
|
(341,085
|
)
|
|
1,232
|
|
|
$
|
(168,545
|
)
|
|
$
|
2,539,978
|
|
Cumulative effect adjustment resulting from the adoption of new accounting standards
|
|
|
|
|
|
|
(1,321
|
)
|
|
|
|
|
|
|
|
(1,321
|
)
|
||||||||||||
Net income
|
|
|
|
|
|
|
40,897
|
|
|
|
|
|
|
|
|
40,897
|
|
||||||||||||
Cash dividends ($0.34 per share)
|
|
|
|
|
|
|
(15,650
|
)
|
|
|
|
|
|
|
|
(15,650
|
)
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
396
|
|
|
|
|
|
|
396
|
|
||||||||||||
Shares issued under compensation plans
|
75
|
|
|
75
|
|
|
3,094
|
|
|
|
|
|
|
(40
|
)
|
|
2,029
|
|
|
5,198
|
|
||||||||
Deferred compensation
|
|
|
|
|
127
|
|
|
|
|
|
|
(4
|
)
|
|
253
|
|
|
380
|
|
||||||||||
Balance at March 31, 2019
|
47,323
|
|
|
47,323
|
|
|
577,982
|
|
|
2,451,525
|
|
|
(340,689
|
)
|
|
1,188
|
|
|
(166,263
|
)
|
|
2,569,878
|
|
||||||
Net income
|
|
|
|
|
|
|
83,375
|
|
|
|
|
|
|
|
|
83,375
|
|
||||||||||||
Cash dividends ($0.34 per share)
|
|
|
|
|
|
|
(15,697
|
)
|
|
|
|
|
|
|
|
(15,697
|
)
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
14,782
|
|
|
|
|
|
|
14,782
|
|
||||||||||||
Shares issued under compensation plans
|
77
|
|
|
77
|
|
|
12,252
|
|
|
|
|
|
|
(2
|
)
|
|
177
|
|
|
12,506
|
|
||||||||
Balance as of June 30, 2019
|
47,400
|
|
|
$
|
47,400
|
|
|
$
|
590,234
|
|
|
$
|
2,519,203
|
|
|
$
|
(325,907
|
)
|
|
1,186
|
|
|
$
|
(166,086
|
)
|
|
$
|
2,664,844
|
|
|
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, 2017
|
46,871
|
|
|
$
|
46,871
|
|
|
$
|
591,721
|
|
|
$
|
2,285,886
|
|
|
$
|
(265,091
|
)
|
|
1,704
|
|
|
$
|
(228,856
|
)
|
|
$
|
2,430,531
|
|
Cumulative effect adjustment resulting from the adoption of new accounting standards
|
|
|
|
|
|
|
3,076
|
|
|
|
|
|
|
|
|
3,076
|
|
||||||||||||
Net income
|
|
|
|
|
|
|
56,184
|
|
|
|
|
|
|
|
|
56,184
|
|
||||||||||||
Cash dividends ($0.34 per share)
|
|
|
|
|
|
|
(15,447
|
)
|
|
|
|
|
|
|
|
(15,447
|
)
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
82,690
|
|
|
|
|
|
|
82,690
|
|
||||||||||||
Settlements of warrants
|
|
|
|
|
(17,884
|
)
|
|
|
|
|
|
(132
|
)
|
|
17,872
|
|
|
(12
|
)
|
||||||||||
Shares issued under compensation plans
|
97
|
|
|
97
|
|
|
992
|
|
|
|
|
|
|
(43
|
)
|
|
3,033
|
|
|
4,122
|
|
||||||||
Deferred compensation
|
|
|
|
|
|
|
|
|
|
|
(8
|
)
|
|
322
|
|
|
322
|
|
|||||||||||
Balance at April 1, 2018
|
46,968
|
|
|
46,968
|
|
|
574,829
|
|
|
2,329,699
|
|
|
(182,401
|
)
|
|
1,521
|
|
|
(207,629
|
)
|
|
2,561,466
|
|
||||||
Net income
|
|
|
|
|
|
|
(2,496
|
)
|
|
|
|
|
|
|
|
(2,496
|
)
|
||||||||||||
Cash dividends ($0.34 per share)
|
|
|
|
|
|
|
(15,491
|
)
|
|
|
|
|
|
|
|
(15,491
|
)
|
||||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
(124,019
|
)
|
|
|
|
|
|
(124,019
|
)
|
||||||||||||
Settlements of warrants
|
|
|
|
|
(19,019
|
)
|
|
|
|
|
|
(140
|
)
|
|
19,005
|
|
|
(14
|
)
|
||||||||||
Shares issued under compensation plans
|
114
|
|
|
114
|
|
|
13,992
|
|
|
|
|
|
|
(2
|
)
|
|
194
|
|
|
14,300
|
|
||||||||
Deferred compensation
|
|
|
|
|
235
|
|
|
|
|
|
|
|
|
|
|
235
|
|
||||||||||||
Balance as of July 1, 2018
|
47,082
|
|
|
$
|
47,082
|
|
|
$
|
570,037
|
|
|
$
|
2,311,712
|
|
|
$
|
(306,420
|
)
|
|
1,379
|
|
|
$
|
(188,430
|
)
|
|
$
|
2,433,981
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Vascular access
|
$
|
153,647
|
|
|
$
|
140,149
|
|
|
$
|
297,544
|
|
|
$
|
284,177
|
|
Anesthesia
|
85,723
|
|
|
89,311
|
|
|
165,975
|
|
|
174,233
|
|
||||
Interventional
|
104,785
|
|
|
98,189
|
|
|
207,969
|
|
|
188,331
|
|
||||
Surgical
|
95,570
|
|
|
90,517
|
|
|
182,289
|
|
|
176,138
|
|
||||
Interventional urology
|
67,952
|
|
|
47,674
|
|
|
127,683
|
|
|
89,974
|
|
||||
OEM
|
56,428
|
|
|
52,594
|
|
|
110,666
|
|
|
98,448
|
|
||||
Other
(1)
|
88,402
|
|
|
91,432
|
|
|
173,965
|
|
|
185,795
|
|
||||
Net revenues
(2)
|
$
|
652,507
|
|
|
$
|
609,866
|
|
|
$
|
1,266,091
|
|
|
$
|
1,197,096
|
|
(2)
|
The product categories listed above are presented on a global basis; in contrast, each of the Company’s reportable segments other than the OEM reportable segment are defined exclusively based on the geographic location of its operations; the OEM reportable segment operates globally. Each of the Company’s geographically based reportable segments include net revenues from each of the non-OEM product categories listed above.
|
Three Months Ended June 30, 2019
|
|
|
|
|
|
||||||
|
Termination benefits
|
|
Other costs
(1)
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||
2019 Footprint realignment plan
|
$
|
(459
|
)
|
|
$
|
30
|
|
|
$
|
(429
|
)
|
2018 Footprint realignment plan
|
(2,275
|
)
|
|
134
|
|
|
$
|
(2,141
|
)
|
||
Other restructuring programs
(2)
|
62
|
|
|
312
|
|
|
374
|
|
|||
Restructuring charges (credits)
|
(2,672
|
)
|
|
476
|
|
|
(2,196
|
)
|
|||
Asset impairment charges
|
—
|
|
|
3,881
|
|
|
3,881
|
|
|||
Restructuring and impairment charges (credits)
|
$
|
(2,672
|
)
|
|
$
|
4,357
|
|
|
$
|
1,685
|
|
Three Months Ended July 1, 2018
|
|
|
|
|
|
||||||
|
Termination benefits
|
|
Other costs
(1)
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||
2018 Footprint realignment plan
|
$
|
52,345
|
|
|
$
|
129
|
|
|
$
|
52,474
|
|
Other restructuring programs
(4)
|
574
|
|
|
440
|
|
|
1,014
|
|
|||
Restructuring charges
|
52,919
|
|
|
569
|
|
|
53,488
|
|
|||
Asset impairment charges
|
—
|
|
|
1,865
|
|
|
1,865
|
|
|||
Restructuring and impairment charges
|
$
|
52,919
|
|
|
$
|
2,434
|
|
|
$
|
55,353
|
|
Six Months Ended June 30, 2019
|
|
|
|
|
|
||||||
|
Termination Benefits
|
|
Other costs
(1)
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||
2019 Footprint realignment plan
|
$
|
12,516
|
|
|
$
|
30
|
|
|
$
|
12,546
|
|
2018 Footprint realignment plan
|
(1,838
|
)
|
|
708
|
|
|
(1,130
|
)
|
|||
Other restructuring programs
(2)
|
188
|
|
|
565
|
|
|
753
|
|
|||
Restructuring charges
|
10,866
|
|
|
1,303
|
|
|
12,169
|
|
|||
Asset impairment charges
|
—
|
|
|
6,911
|
|
|
6,911
|
|
|||
Restructuring and impairment charges
|
$
|
10,866
|
|
|
$
|
8,214
|
|
|
$
|
19,080
|
|
Six Months Ended July 1, 2018
|
|
|
|
|
|
||||||
|
Termination Benefits
|
|
Other costs
(1)
|
|
Total
|
||||||
|
(Dollars in thousands)
|
||||||||||
2018 Footprint realignment plan
|
$
|
52,345
|
|
|
$
|
129
|
|
|
$
|
52,474
|
|
2016 Footprint realignment plan
(3)
|
2,199
|
|
|
291
|
|
|
2,490
|
|
|||
Other restructuring programs
(4)
|
1,032
|
|
|
555
|
|
|
1,587
|
|
|||
Restructuring charges
|
55,576
|
|
|
975
|
|
|
56,551
|
|
|||
Asset impairment charges
|
—
|
|
|
1,865
|
|
|
1,865
|
|
|||
Restructuring and impairment charges
|
$
|
55,576
|
|
|
$
|
2,840
|
|
|
$
|
58,416
|
|
(1)
|
Other restructuring costs include facility closure, contract termination and other exit costs.
|
(2)
|
Includes the Vascular Solutions integration program (initiated in 2017) as well as the 2016 and 2014 Footprint realignment plans.
|
Type of expense
|
Total estimated amount expected to be incurred
|
Termination benefits
|
$19 million to $23 million
|
Other exit costs
(1)
|
$1 million to $2 million
|
Restructuring charges
|
$20 million to $25 million
|
Restructuring related charges
(2)
|
$36 million to $45 million
|
Total restructuring and restructuring related charges
|
$56 million to $70 million
|
(1)
|
Includes facility closure, employee relocation, equipment relocation and outplacement costs.
|
(2)
|
Restructuring related charges represent costs that are directly related to the 2019 Footprint realignment plan and principally constitute costs to transfer manufacturing operations to existing lower-cost locations, project management costs and accelerated depreciation. Most of these charges are expected to be recognized within cost of goods sold.
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(Dollars in thousands)
|
||||||
Raw materials
|
$
|
131,252
|
|
|
$
|
111,105
|
|
Work-in-process
|
63,465
|
|
|
62,334
|
|
||
Finished goods
|
266,603
|
|
|
254,339
|
|
||
Inventories, net
|
$
|
461,320
|
|
|
$
|
427,778
|
|
|
Americas
|
|
EMEA
|
|
Asia
|
|
OEM
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
December 31, 2018
|
$
|
1,549,534
|
|
|
$
|
480,615
|
|
|
$
|
211,547
|
|
|
$
|
4,883
|
|
|
$
|
2,246,579
|
|
Goodwill related to acquisitions
|
174
|
|
|
75
|
|
|
476
|
|
|
—
|
|
|
725
|
|
|||||
Currency translation adjustment
|
1,221
|
|
|
196
|
|
|
1,498
|
|
|
—
|
|
|
2,915
|
|
|||||
June 30, 2019
|
$
|
1,550,929
|
|
|
$
|
480,886
|
|
|
$
|
213,521
|
|
|
$
|
4,883
|
|
|
$
|
2,250,219
|
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||||||
|
June 30, 2019
|
|
December 31, 2018
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Customer relationships
|
$
|
1,025,516
|
|
|
$
|
1,030,194
|
|
|
$
|
(345,715
|
)
|
|
$
|
(322,972
|
)
|
In-process research and development
|
28,404
|
|
|
28,457
|
|
|
—
|
|
|
—
|
|
||||
Intellectual property
|
1,359,876
|
|
|
1,363,516
|
|
|
(363,396
|
)
|
|
(322,539
|
)
|
||||
Distribution rights
|
23,455
|
|
|
23,465
|
|
|
(18,397
|
)
|
|
(17,860
|
)
|
||||
Trade names
|
565,434
|
|
|
565,070
|
|
|
(43,644
|
)
|
|
(36,379
|
)
|
||||
Non-compete agreements
|
22,981
|
|
|
23,004
|
|
|
(12,247
|
)
|
|
(8,904
|
)
|
||||
|
$
|
3,025,666
|
|
|
$
|
3,033,706
|
|
|
$
|
(783,399
|
)
|
|
$
|
(708,654
|
)
|
|
June 30, 2019
|
||
|
(Dollars in thousands)
|
||
2019
|
$
|
14,045
|
|
2020
|
23,992
|
|
|
2021
|
21,602
|
|
|
2022
|
19,924
|
|
|
2023
|
16,363
|
|
|
2024 and thereafter
|
42,060
|
|
|
Total lease payments
|
137,986
|
|
|
Less: interest
|
(21,334
|
)
|
|
Present value of lease liabilities
|
$
|
116,652
|
|
Total lease liabilities
(1)
|
$
|
116,652
|
|
Cash paid for amounts included in the measurement of lease liabilities within operating cash flows
|
$
|
12,636
|
|
Right of use assets obtained in exchange for operating lease obligations
|
$
|
19,728
|
|
Weighted average remaining lease term
|
6.8 years
|
|
|
Weighted average discount rate
|
4.4
|
%
|
|
December 31, 2018
|
||
|
(Dollars in thousands)
|
||
2019
|
$
|
25,294
|
|
2020
|
23,216
|
|
|
2021
|
21,419
|
|
|
2022
|
19,460
|
|
|
2023
|
17,403
|
|
|
2024 and thereafter
|
41,368
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
(Dollars in thousands)
|
||||||
Senior Credit Facility:
|
|
|
|
||||
Revolving credit facility, at a rate of 3.90% at June 30, 2019, due 2024
|
$
|
276,000
|
|
|
$
|
293,000
|
|
Term loan facility, at a rate of 3.90% at June 30, 2019, due 2024
|
673,000
|
|
|
683,500
|
|
||
5.25% Senior Notes due 2024
|
250,000
|
|
|
250,000
|
|
||
4.875% Senior Notes due 2026
|
400,000
|
|
|
400,000
|
|
||
4.625% Senior Notes due 2027
|
500,000
|
|
|
500,000
|
|
||
Securitization program, at a rate of 3.15% at June 30, 2019
|
50,000
|
|
|
50,000
|
|
||
|
2,149,000
|
|
|
2,176,500
|
|
||
Less: Unamortized debt issuance costs
|
(17,628
|
)
|
|
(17,675
|
)
|
||
|
2,131,372
|
|
|
2,158,825
|
|
||
Current borrowings
|
(50,000
|
)
|
|
(86,625
|
)
|
||
Long-term borrowings
|
$
|
2,081,372
|
|
|
$
|
2,072,200
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
|
Fair Value
|
||||||
|
(Dollars in thousands)
|
||||||
Asset derivatives:
|
|
|
|
||||
Designated foreign currency forward contracts
|
$
|
1,344
|
|
|
$
|
1,216
|
|
Non-designated foreign currency forward contracts
|
159
|
|
|
106
|
|
||
Cross-currency interest rate swap
|
21,156
|
|
|
14,728
|
|
||
Prepaid expenses and other current assets
|
22,659
|
|
|
16,050
|
|
||
Total asset derivatives
|
$
|
22,659
|
|
|
$
|
16,050
|
|
Liability derivatives:
|
|
|
|
||||
Designated foreign currency forward contracts
|
$
|
992
|
|
|
$
|
524
|
|
Non-designated foreign currency forward contracts
|
131
|
|
|
264
|
|
||
Other current liabilities
|
1,123
|
|
|
788
|
|
||
Cross-currency interest rate swap
|
6,152
|
|
|
7,793
|
|
||
Other liabilities
|
6,152
|
|
|
7,793
|
|
||
Total liability derivatives
|
$
|
7,275
|
|
|
$
|
8,581
|
|
|
Total carrying
value at June 30, 2019 |
|
Quoted prices in active
markets (Level 1) |
|
Significant other
observable Inputs (Level 2) |
|
Significant
unobservable Inputs (Level 3) |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Investments in marketable securities
|
$
|
10,034
|
|
|
$
|
10,034
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets
|
22,659
|
|
|
—
|
|
|
22,659
|
|
|
—
|
|
||||
Derivative liabilities
|
7,275
|
|
|
—
|
|
|
7,275
|
|
|
—
|
|
||||
Contingent consideration liabilities
|
191,671
|
|
|
—
|
|
|
—
|
|
|
191,671
|
|
|
Total carrying
value at December 31, 2018 |
|
Quoted prices in active
markets (Level 1) |
|
Significant other
observable Inputs (Level 2) |
|
Significant
unobservable Inputs (Level 3) |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Investments in marketable securities
|
$
|
8,671
|
|
|
$
|
8,671
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Derivative assets
|
16,050
|
|
|
—
|
|
|
16,050
|
|
|
—
|
|
||||
Derivative liabilities
|
8,581
|
|
|
—
|
|
|
8,581
|
|
|
—
|
|
||||
Contingent consideration liabilities
|
304,248
|
|
|
—
|
|
|
—
|
|
|
304,248
|
|
Contingent Consideration Liability
|
|
Valuation Technique
|
|
Unobservable Input
|
|
Range
|
Milestone-based payments
|
|
|
|
|
|
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
3.7% - 4.3%
|
|
|
|
|
Projected year of payment
|
|
2019 - 2023
|
Revenue-based payments
|
|
|
|
|
|
|
|
|
Monte Carlo simulation
|
|
Revenue volatility
|
|
19.0% - 24.3%
|
|
|
|
|
Risk free rate
|
|
Cost of debt structure
|
|
|
|
|
Projected year of payment
|
|
2020 - 2022
|
|
|
|
|
|
|
|
|
|
Discounted cash flow
|
|
Discount rate
|
|
10.0%
|
|
|
|
|
Projected year of payment
|
|
2019 - 2029
|
|
Contingent consideration
|
||
|
2019
|
||
|
(Dollars in thousands)
|
||
Balance - December 31, 2018
|
$
|
304,248
|
|
Payments
(1)
|
(138,020
|
)
|
|
Revaluations
|
25,456
|
|
|
Translation adjustment
|
(13
|
)
|
|
Balance - June 30, 2019
|
$
|
191,671
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||
|
(Shares in thousands)
|
||||||||||
Basic
|
46,172
|
|
|
45,581
|
|
|
46,111
|
|
|
45,455
|
|
Dilutive effect of share-based awards
|
864
|
|
|
—
|
|
|
878
|
|
|
1,052
|
|
Dilutive effect of convertible warrants
|
—
|
|
|
—
|
|
|
—
|
|
|
264
|
|
Diluted
|
47,036
|
|
|
45,581
|
|
|
46,989
|
|
|
46,771
|
|
|
Cash Flow Hedges
|
|
Pension and Other Postretirement Benefit Plans
|
|
Foreign Currency Translation Adjustment
|
|
Accumulated Other Comprehensive (Loss) Income
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Balance as of December 31, 2018
|
$
|
807
|
|
|
$
|
(131,380
|
)
|
|
$
|
(210,512
|
)
|
|
$
|
(341,085
|
)
|
Other comprehensive income (loss) before reclassifications
|
429
|
|
|
(13
|
)
|
|
12,332
|
|
|
12,748
|
|
||||
Amounts reclassified from accumulated other comprehensive income
|
(271
|
)
|
|
2,701
|
|
|
—
|
|
|
2,430
|
|
||||
Net current-period other comprehensive income (loss)
|
158
|
|
|
2,688
|
|
|
12,332
|
|
|
15,178
|
|
||||
Balance as of June 30, 2019
|
$
|
965
|
|
|
$
|
(128,692
|
)
|
|
$
|
(198,180
|
)
|
|
$
|
(325,907
|
)
|
|
Cash Flow Hedges
|
|
Pension and Other Postretirement Benefit Plans
|
|
Foreign Currency Translation Adjustment
|
|
Accumulated Other Comprehensive (Loss) Income
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Balance as of December 31, 2017
|
$
|
340
|
|
|
$
|
(138,808
|
)
|
|
$
|
(126,623
|
)
|
|
$
|
(265,091
|
)
|
Other comprehensive (loss) before reclassifications
|
1,103
|
|
|
188
|
|
|
(44,517
|
)
|
|
(43,226
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
(811
|
)
|
|
2,708
|
|
|
—
|
|
|
1,897
|
|
||||
Net current-period other comprehensive income
|
292
|
|
|
2,896
|
|
|
(44,517
|
)
|
|
(41,329
|
)
|
||||
Balance as of July 1, 2018
|
$
|
632
|
|
|
$
|
(135,912
|
)
|
|
$
|
(171,140
|
)
|
|
$
|
(306,420
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
(Gains) losses on foreign exchange contracts:
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
$
|
(179
|
)
|
|
$
|
(118
|
)
|
|
$
|
(365
|
)
|
|
$
|
(951
|
)
|
Total before tax
|
(179
|
)
|
|
(118
|
)
|
|
(365
|
)
|
|
(951
|
)
|
||||
Taxes (benefit)
|
71
|
|
|
27
|
|
|
94
|
|
|
140
|
|
||||
Net of tax
|
(108
|
)
|
|
(91
|
)
|
|
(271
|
)
|
|
(811
|
)
|
||||
Losses (gains) on cross-currency swaps (net investment hedge):
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(4,917
|
)
|
|
$
|
—
|
|
|
(8,799
|
)
|
|
$
|
—
|
|
||
Total before tax
|
(4,917
|
)
|
|
—
|
|
|
(8,799
|
)
|
|
—
|
|
||||
Tax expense
|
1,111
|
|
|
—
|
|
|
2,040
|
|
|
—
|
|
||||
Net of tax
|
(3,806
|
)
|
|
$
|
—
|
|
|
(6,759
|
)
|
|
$
|
—
|
|
||
Amortization of pension and other postretirement benefit items
(1)
:
|
|||||||||||||||
Actuarial losses
|
1,738
|
|
|
1,734
|
|
|
3,478
|
|
|
3,480
|
|
||||
Prior-service costs
|
22
|
|
|
23
|
|
|
44
|
|
|
47
|
|
||||
Total before tax
|
1,760
|
|
|
1,757
|
|
|
3,522
|
|
|
3,527
|
|
||||
Tax benefit
|
(410
|
)
|
|
(408
|
)
|
|
(821
|
)
|
|
(819
|
)
|
||||
Net of tax
|
1,350
|
|
|
1,349
|
|
|
2,701
|
|
|
2,708
|
|
||||
Total reclassifications, net of tax
|
$
|
(2,564
|
)
|
|
$
|
1,258
|
|
|
$
|
(4,329
|
)
|
|
$
|
1,897
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
Effective income tax rate
|
4.4%
|
|
136.3%
|
|
10.6%
|
|
23.2%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Americas
|
$
|
373,804
|
|
|
$
|
331,444
|
|
|
$
|
717,828
|
|
|
$
|
654,706
|
|
EMEA
|
147,047
|
|
|
153,415
|
|
|
301,592
|
|
|
313,285
|
|
||||
Asia
|
75,228
|
|
|
72,413
|
|
|
136,005
|
|
|
130,657
|
|
||||
OEM
|
56,428
|
|
|
52,594
|
|
|
110,666
|
|
|
98,448
|
|
||||
Net revenues
|
$
|
652,507
|
|
|
$
|
609,866
|
|
|
$
|
1,266,091
|
|
|
$
|
1,197,096
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Americas
|
$
|
82,509
|
|
|
$
|
47,315
|
|
|
$
|
148,108
|
|
|
$
|
106,205
|
|
EMEA
|
20,827
|
|
|
26,535
|
|
|
47,850
|
|
|
58,305
|
|
||||
Asia
|
19,260
|
|
|
20,746
|
|
|
29,239
|
|
|
34,114
|
|
||||
OEM
|
13,884
|
|
|
13,552
|
|
|
27,205
|
|
|
22,568
|
|
||||
Total segment operating profit
(1)
|
136,480
|
|
|
108,148
|
|
|
252,402
|
|
|
221,192
|
|
||||
Unallocated expenses
(2)
|
(29,022
|
)
|
|
(74,658
|
)
|
|
(69,701
|
)
|
|
(100,859
|
)
|
||||
Income from continuing operations before interest and taxes
|
$
|
107,458
|
|
|
$
|
33,490
|
|
|
$
|
182,701
|
|
|
$
|
120,333
|
|
(1)
|
Segment operating profit includes segment net revenues from external customers reduced by the segment's 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. Corporate expenses are allocated among the segments in proportion to the respective amounts of one of several items (such as net revenues, numbers of employees, and amount of time spent), depending on the category of expense involved.
|
(2)
|
Unallocated expenses primarily include manufacturing variances other than fixed manufacturing cost absorption variances, restructuring charges and gain on sale of assets.
|
a.
|
Parent Company, the issuer of the guaranteed obligations;
|
b.
|
Guarantor Subsidiaries, on a combined basis;
|
c.
|
Non-Guarantor Subsidiaries (i.e., those subsidiaries of the Parent Company that have not guaranteed
payment of the Senior Notes), on a combined basis; and
|
d.
|
Parent Company and its subsidiaries on a consolidated basis.
|
|
Three Months Ended June 30, 2019
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
439,489
|
|
|
$
|
327,596
|
|
|
$
|
(114,578
|
)
|
|
$
|
652,507
|
|
Cost of goods sold
|
—
|
|
|
244,956
|
|
|
151,423
|
|
|
(116,796
|
)
|
|
279,583
|
|
|||||
Gross profit
|
—
|
|
|
194,533
|
|
|
176,173
|
|
|
2,218
|
|
|
372,924
|
|
|||||
Selling, general and administrative expenses
|
14,312
|
|
|
141,628
|
|
|
80,512
|
|
|
(266
|
)
|
|
236,186
|
|
|||||
Research and development expenses
|
596
|
|
|
20,331
|
|
|
6,668
|
|
|
—
|
|
|
27,595
|
|
|||||
Restructuring and impairment charges
|
—
|
|
|
108
|
|
|
1,577
|
|
|
—
|
|
|
1,685
|
|
|||||
(Loss) income from continuing operations before interest and taxes
|
(14,908
|
)
|
|
32,466
|
|
|
87,416
|
|
|
2,484
|
|
|
107,458
|
|
|||||
Interest, net
|
29,350
|
|
|
(23,439
|
)
|
|
14,375
|
|
|
—
|
|
|
20,286
|
|
|||||
(Loss) income from continuing operations before taxes
|
(44,258
|
)
|
|
55,905
|
|
|
73,041
|
|
|
2,484
|
|
|
87,172
|
|
|||||
(Benefit) taxes on (loss) income from continuing operations
|
(19,519
|
)
|
|
15,681
|
|
|
7,480
|
|
|
202
|
|
|
3,844
|
|
|||||
Equity in net income of consolidated subsidiaries
|
108,067
|
|
|
57,951
|
|
|
—
|
|
|
(166,018
|
)
|
|
—
|
|
|||||
Income from continuing operations
|
83,328
|
|
|
98,175
|
|
|
65,561
|
|
|
(163,736
|
)
|
|
83,328
|
|
|||||
Operating income from discontinued operations
|
61
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|||||
Tax on income from discontinued operations
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|||||
Income from discontinued operations
|
47
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|||||
Net income
|
83,375
|
|
|
98,175
|
|
|
65,561
|
|
|
(163,736
|
)
|
|
83,375
|
|
|||||
Other comprehensive income
|
14,782
|
|
|
17,107
|
|
|
19,457
|
|
|
(36,564
|
)
|
|
14,782
|
|
|||||
Comprehensive income
|
$
|
98,157
|
|
|
$
|
115,282
|
|
|
$
|
85,018
|
|
|
$
|
(200,300
|
)
|
|
$
|
98,157
|
|
|
Three Months Ended July 1, 2018
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed Consolidated
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
391,304
|
|
|
$
|
326,279
|
|
|
$
|
(107,717
|
)
|
|
$
|
609,866
|
|
Cost of goods sold
|
—
|
|
|
231,487
|
|
|
143,532
|
|
|
(109,931
|
)
|
|
265,088
|
|
|||||
Gross profit
|
—
|
|
|
159,817
|
|
|
182,747
|
|
|
2,214
|
|
|
344,778
|
|
|||||
Selling, general and administrative expenses
|
12,430
|
|
|
139,549
|
|
|
77,739
|
|
|
199
|
|
|
229,917
|
|
|||||
Research and development expenses
|
489
|
|
|
18,818
|
|
|
6,711
|
|
|
—
|
|
|
26,018
|
|
|||||
Restructuring and impairment charges
|
—
|
|
|
2,545
|
|
|
52,808
|
|
|
—
|
|
|
55,353
|
|
|||||
(Loss) income from continuing operations before interest and taxes
|
(12,919
|
)
|
|
(1,095
|
)
|
|
45,489
|
|
|
2,015
|
|
|
33,490
|
|
|||||
Interest, net
|
24,788
|
|
|
(13,966
|
)
|
|
15,644
|
|
|
—
|
|
|
26,466
|
|
|||||
(Loss) income from continuing operations before taxes
|
(37,707
|
)
|
|
12,871
|
|
|
29,845
|
|
|
2,015
|
|
|
7,024
|
|
|||||
(Benefit) taxes on (loss) income from continuing operations
|
(13,218
|
)
|
|
11,272
|
|
|
11,459
|
|
|
63
|
|
|
9,576
|
|
|||||
Equity in net income of consolidated subsidiaries
|
21,937
|
|
|
13,183
|
|
|
342
|
|
|
(35,462
|
)
|
|
—
|
|
|||||
(Loss) income from continuing operations
|
(2,552
|
)
|
|
14,782
|
|
|
18,728
|
|
|
(33,510
|
)
|
|
(2,552
|
)
|
|||||
Operating income from discontinued operations
|
94
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
94
|
|
|||||
Tax on income from discontinued operations
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
Income from discontinued operations
|
56
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|||||
Net (loss) income
|
(2,496
|
)
|
|
14,782
|
|
|
18,728
|
|
|
(33,510
|
)
|
|
(2,496
|
)
|
|||||
Other comprehensive loss
|
(124,019
|
)
|
|
(114,917
|
)
|
|
(130,725
|
)
|
|
245,642
|
|
|
(124,019
|
)
|
|||||
Comprehensive loss
|
$
|
(126,515
|
)
|
|
$
|
(100,135
|
)
|
|
$
|
(111,997
|
)
|
|
$
|
212,132
|
|
|
$
|
(126,515
|
)
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
854,632
|
|
|
$
|
648,589
|
|
|
$
|
(237,130
|
)
|
|
$
|
1,266,091
|
|
Cost of goods sold
|
—
|
|
|
479,173
|
|
|
299,280
|
|
|
(230,028
|
)
|
|
548,425
|
|
|||||
Gross profit
|
—
|
|
|
375,459
|
|
|
349,309
|
|
|
(7,102
|
)
|
|
717,666
|
|
|||||
Selling, general and administrative expenses
|
30,479
|
|
|
273,327
|
|
|
159,981
|
|
|
92
|
|
|
463,879
|
|
|||||
Research and development expenses
|
1,080
|
|
|
40,452
|
|
|
13,213
|
|
|
—
|
|
|
54,745
|
|
|||||
Restructuring and impairment charges
|
—
|
|
|
6,081
|
|
|
12,999
|
|
|
—
|
|
|
19,080
|
|
|||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
(2,739
|
)
|
|
—
|
|
|
(2,739
|
)
|
|||||
(Loss) income from continuing operations before interest and taxes
|
(31,559
|
)
|
|
55,599
|
|
|
165,855
|
|
|
(7,194
|
)
|
|
182,701
|
|
|||||
Interest, net
|
33,415
|
|
|
(21,845
|
)
|
|
31,069
|
|
|
—
|
|
|
42,639
|
|
|||||
(Loss) income from continuing operations before taxes
|
(64,974
|
)
|
|
77,444
|
|
|
134,786
|
|
|
(7,194
|
)
|
|
140,062
|
|
|||||
(Benefit) taxes on (loss) income from continuing operations
|
(28,391
|
)
|
|
27,250
|
|
|
17,190
|
|
|
(1,233
|
)
|
|
14,816
|
|
|||||
Equity in net income of consolidated subsidiaries
|
161,829
|
|
|
100,997
|
|
|
—
|
|
|
(262,826
|
)
|
|
—
|
|
|||||
Income from continuing operations
|
125,246
|
|
|
151,191
|
|
|
117,596
|
|
|
(268,787
|
)
|
|
125,246
|
|
|||||
Operating loss from discontinued operations
|
(1,282
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,282
|
)
|
|||||
Tax benefit on loss from discontinued operations
|
(308
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(308
|
)
|
|||||
Loss from discontinued operations
|
(974
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(974
|
)
|
|||||
Net income
|
124,272
|
|
|
151,191
|
|
|
117,596
|
|
|
(268,787
|
)
|
|
124,272
|
|
|||||
Other comprehensive income
|
15,178
|
|
|
15,606
|
|
|
14,463
|
|
|
(30,069
|
)
|
|
15,178
|
|
|||||
Comprehensive income
|
$
|
139,450
|
|
|
$
|
166,797
|
|
|
$
|
132,059
|
|
|
$
|
(298,856
|
)
|
|
$
|
139,450
|
|
|
Six Months Ended July 1, 2018
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Net revenues
|
$
|
—
|
|
|
$
|
770,723
|
|
|
$
|
646,288
|
|
|
$
|
(219,915
|
)
|
|
$
|
1,197,096
|
|
Cost of goods sold
|
—
|
|
|
449,091
|
|
|
285,540
|
|
|
(213,583
|
)
|
|
521,048
|
|
|||||
Gross profit
|
—
|
|
|
321,632
|
|
|
360,748
|
|
|
(6,332
|
)
|
|
676,048
|
|
|||||
Selling, general and administrative expenses
|
21,611
|
|
|
270,218
|
|
|
153,755
|
|
|
(330
|
)
|
|
445,254
|
|
|||||
Research and development expenses
|
716
|
|
|
38,186
|
|
|
13,143
|
|
|
—
|
|
|
52,045
|
|
|||||
Restructuring and impairment charges
|
—
|
|
|
3,453
|
|
|
54,963
|
|
|
—
|
|
|
58,416
|
|
|||||
(Loss) income from continuing operations before interest and taxes
|
(22,327
|
)
|
|
9,775
|
|
|
138,887
|
|
|
(6,002
|
)
|
|
120,333
|
|
|||||
Interest, net
|
46,929
|
|
|
(26,015
|
)
|
|
31,222
|
|
|
—
|
|
|
52,136
|
|
|||||
(Loss) income from continuing operations before taxes
|
(69,256
|
)
|
|
35,790
|
|
|
107,665
|
|
|
(6,002
|
)
|
|
68,197
|
|
|||||
(Benefit) taxes on (loss) income from continuing operations
|
(26,410
|
)
|
|
21,468
|
|
|
21,863
|
|
|
(1,103
|
)
|
|
15,818
|
|
|||||
Equity in net income of consolidated subsidiaries
|
96,504
|
|
|
78,607
|
|
|
635
|
|
|
(175,746
|
)
|
|
—
|
|
|||||
Income from continuing operations
|
53,658
|
|
|
92,929
|
|
|
86,437
|
|
|
(180,645
|
)
|
|
52,379
|
|
|||||
Operating income from discontinued operations
|
50
|
|
|
—
|
|
|
1,279
|
|
|
—
|
|
|
1,329
|
|
|||||
Taxes on income from discontinued operations
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||
Income from discontinued operations
|
30
|
|
|
—
|
|
|
1,279
|
|
|
—
|
|
|
1,309
|
|
|||||
Net income
|
53,688
|
|
|
92,929
|
|
|
87,716
|
|
|
(180,645
|
)
|
|
53,688
|
|
|||||
Other comprehensive loss
|
(41,329
|
)
|
|
(44,798
|
)
|
|
(43,498
|
)
|
|
88,296
|
|
|
(41,329
|
)
|
|||||
Comprehensive income
|
$
|
12,359
|
|
|
$
|
48,131
|
|
|
$
|
44,218
|
|
|
$
|
(92,349
|
)
|
|
$
|
12,359
|
|
|
June 30, 2019
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
29,891
|
|
|
$
|
3,540
|
|
|
$
|
270,465
|
|
|
$
|
—
|
|
|
$
|
303,896
|
|
Accounts receivable, net
|
1,779
|
|
|
62,569
|
|
|
312,552
|
|
|
5,242
|
|
|
382,142
|
|
|||||
Accounts receivable from consolidated subsidiaries
|
32,698
|
|
|
353,336
|
|
|
407,860
|
|
|
(793,894
|
)
|
|
—
|
|
|||||
Inventories, net
|
—
|
|
|
276,761
|
|
|
222,603
|
|
|
(38,044
|
)
|
|
461,320
|
|
|||||
Prepaid expenses and other current assets
|
36,874
|
|
|
9,477
|
|
|
28,013
|
|
|
4,113
|
|
|
78,477
|
|
|||||
Prepaid taxes
|
11,489
|
|
|
—
|
|
|
7,817
|
|
|
—
|
|
|
19,306
|
|
|||||
Total current assets
|
112,731
|
|
|
705,683
|
|
|
1,249,310
|
|
|
(822,583
|
)
|
|
1,245,141
|
|
|||||
Property, plant and equipment, net
|
3,098
|
|
|
239,415
|
|
|
182,962
|
|
|
—
|
|
|
425,475
|
|
|||||
Operating lease assets
|
13,912
|
|
|
59,711
|
|
|
33,920
|
|
|
—
|
|
|
107,543
|
|
|||||
Goodwill
|
—
|
|
|
1,255,536
|
|
|
994,683
|
|
|
—
|
|
|
2,250,219
|
|
|||||
Intangibles assets, net
|
80
|
|
|
1,235,058
|
|
|
1,007,129
|
|
|
—
|
|
|
2,242,267
|
|
|||||
Investments in affiliates
|
5,632,043
|
|
|
2,127,743
|
|
|
924,450
|
|
|
(8,684,236
|
)
|
|
—
|
|
|||||
Deferred tax assets
|
14,543
|
|
|
—
|
|
|
5,440
|
|
|
(16,927
|
)
|
|
3,056
|
|
|||||
Notes receivable and other amounts due from consolidated subsidiaries
|
1,892,369
|
|
|
3,192,420
|
|
|
287,713
|
|
|
(5,372,502
|
)
|
|
—
|
|
|||||
Other assets
|
19,039
|
|
|
11,802
|
|
|
9,868
|
|
|
—
|
|
|
40,709
|
|
|||||
Total assets
|
$
|
7,687,815
|
|
|
$
|
8,827,368
|
|
|
$
|
4,695,475
|
|
|
$
|
(14,896,248
|
)
|
|
$
|
6,314,410
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Current borrowings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
50,000
|
|
Accounts payable
|
3,972
|
|
|
62,664
|
|
|
41,423
|
|
|
—
|
|
|
108,059
|
|
|||||
Accounts payable to consolidated subsidiaries
|
259,906
|
|
|
328,596
|
|
|
205,392
|
|
|
(793,894
|
)
|
|
—
|
|
|||||
Accrued expenses
|
6,376
|
|
|
33,982
|
|
|
47,340
|
|
|
—
|
|
|
87,698
|
|
|||||
Current portion of contingent consideration
|
—
|
|
|
112,329
|
|
|
7,377
|
|
|
—
|
|
|
119,706
|
|
|||||
Payroll and benefit-related liabilities
|
16,365
|
|
|
31,763
|
|
|
40,760
|
|
|
—
|
|
|
88,888
|
|
|||||
Accrued interest
|
5,978
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
6,009
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
5,681
|
|
|
(1,233
|
)
|
|
4,448
|
|
|||||
Other current liabilities
|
3,988
|
|
|
13,561
|
|
|
11,535
|
|
|
—
|
|
|
29,084
|
|
|||||
Total current liabilities
|
296,585
|
|
|
582,895
|
|
|
409,539
|
|
|
(795,127
|
)
|
|
493,892
|
|
|||||
Long-term borrowings
|
2,081,372
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,081,372
|
|
|||||
Deferred tax liabilities
|
—
|
|
|
354,208
|
|
|
267,575
|
|
|
(16,927
|
)
|
|
604,856
|
|
|||||
Pension and postretirement benefit liabilities
|
43,250
|
|
|
26,800
|
|
|
16,099
|
|
|
—
|
|
|
86,149
|
|
|||||
Noncurrent liability for uncertain tax positions
|
1,042
|
|
|
7,329
|
|
|
2,658
|
|
|
—
|
|
|
11,029
|
|
|||||
Notes payable and other amounts due to consolidated subsidiaries
|
2,458,281
|
|
|
1,800,913
|
|
|
1,113,308
|
|
|
(5,372,502
|
)
|
|
—
|
|
|||||
Noncurrent contingent consideration
|
—
|
|
|
42,647
|
|
|
29,318
|
|
|
—
|
|
|
71,965
|
|
|||||
Noncurrent operating lease liabilities
|
11,421
|
|
|
59,065
|
|
|
26,016
|
|
|
—
|
|
|
96,502
|
|
|||||
Other liabilities
|
131,020
|
|
|
9,341
|
|
|
63,440
|
|
|
—
|
|
|
203,801
|
|
|||||
Total liabilities
|
5,022,971
|
|
|
2,883,198
|
|
|
1,927,953
|
|
|
(6,184,556
|
)
|
|
3,649,566
|
|
|||||
Total shareholders' equity
|
2,664,844
|
|
|
5,944,170
|
|
|
2,767,522
|
|
|
(8,711,692
|
)
|
|
2,664,844
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
7,687,815
|
|
|
$
|
8,827,368
|
|
|
$
|
4,695,475
|
|
|
$
|
(14,896,248
|
)
|
|
$
|
6,314,410
|
|
|
December 31, 2018
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
49,523
|
|
|
$
|
1,701
|
|
|
$
|
305,937
|
|
|
$
|
—
|
|
|
$
|
357,161
|
|
Accounts receivable, net
|
5,885
|
|
|
54,013
|
|
|
301,054
|
|
|
5,334
|
|
|
366,286
|
|
|||||
Accounts receivable from consolidated subsidiaries
|
32,036
|
|
|
1,122,107
|
|
|
366,033
|
|
|
(1,520,176
|
)
|
|
—
|
|
|||||
Inventories, net
|
—
|
|
|
266,073
|
|
|
192,659
|
|
|
(30,954
|
)
|
|
427,778
|
|
|||||
Prepaid expenses and other current assets
|
30,458
|
|
|
9,673
|
|
|
28,237
|
|
|
4,113
|
|
|
72,481
|
|
|||||
Prepaid taxes
|
7,029
|
|
|
—
|
|
|
5,434
|
|
|
—
|
|
|
12,463
|
|
|||||
Total current assets
|
124,931
|
|
|
1,453,567
|
|
|
1,199,354
|
|
|
(1,541,683
|
)
|
|
1,236,169
|
|
|||||
Property, plant and equipment, net
|
3,385
|
|
|
253,037
|
|
|
176,344
|
|
|
—
|
|
|
432,766
|
|
|||||
Goodwill
|
—
|
|
|
1,254,848
|
|
|
991,731
|
|
|
—
|
|
|
2,246,579
|
|
|||||
Intangibles assets, net
|
90
|
|
|
1,277,462
|
|
|
1,047,500
|
|
|
—
|
|
|
2,325,052
|
|
|||||
Investments in affiliates
|
5,984,566
|
|
|
1,625,464
|
|
|
837,899
|
|
|
(8,447,929
|
)
|
|
—
|
|
|||||
Deferred tax assets
|
—
|
|
|
—
|
|
|
4,822
|
|
|
(2,376
|
)
|
|
2,446
|
|
|||||
Notes receivable and other amounts due from consolidated subsidiaries
|
2,337,737
|
|
|
3,347,815
|
|
|
13,242
|
|
|
(5,698,794
|
)
|
|
—
|
|
|||||
Other assets
|
17,180
|
|
|
5,776
|
|
|
12,023
|
|
|
—
|
|
|
34,979
|
|
|||||
Total assets
|
$
|
8,467,889
|
|
|
$
|
9,217,969
|
|
|
$
|
4,282,915
|
|
|
$
|
(15,690,782
|
)
|
|
$
|
6,277,991
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Current borrowings
|
$
|
36,625
|
|
|
$
|
—
|
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
86,625
|
|
Accounts payable
|
3,448
|
|
|
62,764
|
|
|
40,497
|
|
|
—
|
|
|
106,709
|
|
|||||
Accounts payable to consolidated subsidiaries
|
1,058,008
|
|
|
292,093
|
|
|
170,075
|
|
|
(1,520,176
|
)
|
|
—
|
|
|||||
Accrued expenses
|
5,659
|
|
|
41,873
|
|
|
50,019
|
|
|
—
|
|
|
97,551
|
|
|||||
Current portion of contingent consideration
|
—
|
|
|
106,514
|
|
|
30,363
|
|
|
—
|
|
|
136,877
|
|
|||||
Payroll and benefit-related liabilities
|
17,156
|
|
|
44,982
|
|
|
42,532
|
|
|
—
|
|
|
104,670
|
|
|||||
Accrued interest
|
5,995
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
6,031
|
|
|||||
Income taxes payable
|
—
|
|
|
—
|
|
|
5,943
|
|
|
—
|
|
|
5,943
|
|
|||||
Other current liabilities
|
843
|
|
|
34,916
|
|
|
2,291
|
|
|
—
|
|
|
38,050
|
|
|||||
Total current liabilities
|
1,127,734
|
|
|
583,142
|
|
|
391,756
|
|
|
(1,520,176
|
)
|
|
582,456
|
|
|||||
Long-term borrowings
|
2,072,200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,072,200
|
|
|||||
Deferred tax liabilities
|
87,671
|
|
|
257,522
|
|
|
265,404
|
|
|
(2,376
|
)
|
|
608,221
|
|
|||||
Pension and postretirement benefit liabilities
|
49,290
|
|
|
27,454
|
|
|
16,170
|
|
|
—
|
|
|
92,914
|
|
|||||
Noncurrent liability for uncertain tax positions
|
801
|
|
|
7,212
|
|
|
2,705
|
|
|
—
|
|
|
10,718
|
|
|||||
Notes payable and other amounts due to consolidated subsidiaries
|
2,451,784
|
|
|
2,222,580
|
|
|
1,024,430
|
|
|
(5,698,794
|
)
|
|
—
|
|
|||||
Noncurrent contingent consideration
|
—
|
|
|
131,563
|
|
|
35,807
|
|
|
—
|
|
|
167,370
|
|
|||||
Other liabilities
|
138,431
|
|
|
8,204
|
|
|
57,499
|
|
|
|
|
|
204,134
|
|
|||||
Total liabilities
|
5,927,911
|
|
|
3,237,677
|
|
|
1,793,771
|
|
|
(7,221,346
|
)
|
|
3,738,013
|
|
|||||
Total shareholders' equity
|
2,539,978
|
|
|
5,980,292
|
|
|
2,489,144
|
|
|
(8,469,436
|
)
|
|
2,539,978
|
|
|||||
Total liabilities and shareholders' equity
|
$
|
8,467,889
|
|
|
$
|
9,217,969
|
|
|
$
|
4,282,915
|
|
|
$
|
(15,690,782
|
)
|
|
$
|
6,277,991
|
|
|
Six Months Ended June 30, 2019
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Net cash (used in) provided by operating activities from continuing operations
|
$
|
(60,841
|
)
|
|
$
|
180,717
|
|
|
$
|
129,863
|
|
|
$
|
(92,455
|
)
|
|
$
|
157,284
|
|
Cash flows from investing activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(327
|
)
|
|
(37,981
|
)
|
|
(17,799
|
)
|
|
—
|
|
|
(56,107
|
)
|
|||||
Proceeds from sale of assets and investments
|
2,362
|
|
|
1,178
|
|
|
—
|
|
|
(2,362
|
)
|
|
1,178
|
|
|||||
Payments for businesses and intangibles acquired, net of cash acquired
|
—
|
|
|
(1,025
|
)
|
|
—
|
|
|
—
|
|
|
(1,025
|
)
|
|||||
Net interest proceeds on swaps designated as net investment hedges
|
8,330
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,330
|
|
|||||
Net cash provided by (used in) investing activities from continuing operations
|
10,365
|
|
|
(37,828
|
)
|
|
(17,799
|
)
|
|
(2,362
|
)
|
|
(47,624
|
)
|
|||||
Cash flows from financing activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from new borrowings
|
25,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25,000
|
|
|||||
Reduction in borrowings
|
(52,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52,500
|
)
|
|||||
Debt extinguishment, issuance and amendment fees
|
(4,703
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,703
|
)
|
|||||
Net proceeds from share based compensation plans and the related tax impacts
|
7,829
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,829
|
|
|||||
Payments for contingent consideration
|
—
|
|
|
(15,044
|
)
|
|
(96,884
|
)
|
|
—
|
|
|
(111,928
|
)
|
|||||
Dividends paid
|
(31,347
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,347
|
)
|
|||||
Intercompany transactions
|
83,135
|
|
|
(126,062
|
)
|
|
40,565
|
|
|
2,362
|
|
|
—
|
|
|||||
Intercompany dividends paid
|
—
|
|
|
—
|
|
|
(92,455
|
)
|
|
92,455
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities from continuing operations
|
27,414
|
|
|
(141,106
|
)
|
|
(148,774
|
)
|
|
94,817
|
|
|
(167,649
|
)
|
|||||
Cash flows from discontinued operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
3,430
|
|
|
—
|
|
|
(631
|
)
|
|
—
|
|
|
2,799
|
|
|||||
Net cash provided by (used in) discontinued operations
|
3,430
|
|
|
—
|
|
|
(631
|
)
|
|
—
|
|
|
2,799
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
1,925
|
|
|
—
|
|
|
1,925
|
|
|||||
Net (decrease) increase in cash and cash equivalents
|
(19,632
|
)
|
|
1,783
|
|
|
(35,416
|
)
|
|
—
|
|
|
(53,265
|
)
|
|||||
Cash and cash equivalents at the beginning of the period
|
49,523
|
|
|
1,757
|
|
|
305,881
|
|
|
—
|
|
|
357,161
|
|
|||||
Cash and cash equivalents at the end of the period
|
$
|
29,891
|
|
|
$
|
3,540
|
|
|
$
|
270,465
|
|
|
$
|
—
|
|
|
$
|
303,896
|
|
|
Six Months Ended July 1, 2018
|
||||||||||||||||||
|
Parent
Company |
|
Guarantor
Subsidiaries |
|
Non-Guarantor
Subsidiaries |
|
Eliminations
|
|
Condensed
Consolidated |
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Net cash (used in) provided by operating activities from continuing operations
|
$
|
(165,764
|
)
|
|
$
|
254,769
|
|
|
$
|
162,952
|
|
|
$
|
(70,373
|
)
|
|
$
|
181,584
|
|
Cash flows from investing activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Expenditures for property, plant and equipment
|
(795
|
)
|
|
(16,602
|
)
|
|
(20,607
|
)
|
|
—
|
|
|
(38,004
|
)
|
|||||
Proceeds from sale of assets
|
22,944
|
|
|
—
|
|
|
—
|
|
|
(22,944
|
)
|
|
—
|
|
|||||
Payments for businesses and intangibles acquired, net of cash acquired
|
—
|
|
|
—
|
|
|
(22,450
|
)
|
|
—
|
|
|
(22,450
|
)
|
|||||
Net cash provided by (used in) investing activities from continuing operations
|
22,149
|
|
|
(16,602
|
)
|
|
(43,057
|
)
|
|
(22,944
|
)
|
|
(60,454
|
)
|
|||||
Cash flows from financing activities of continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Reduction in borrowings
|
(18,500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,500
|
)
|
|||||
Debt extinguishment, issuance and amendment fees
|
(188
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(188
|
)
|
|||||
Net proceeds from share based compensation plans and the related tax impacts
|
9,800
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,800
|
|
|||||
Payments for contingent consideration
|
—
|
|
|
(170
|
)
|
|
(62,404
|
)
|
|
—
|
|
|
(62,574
|
)
|
|||||
Dividends paid
|
(30,938
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,938
|
)
|
|||||
Intercompany transactions
|
196,888
|
|
|
(234,304
|
)
|
|
14,472
|
|
|
22,944
|
|
|
—
|
|
|||||
Intercompany dividends paid
|
—
|
|
|
—
|
|
|
(70,373
|
)
|
|
70,373
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities from continuing operations
|
157,062
|
|
|
(234,474
|
)
|
|
(118,305
|
)
|
|
93,317
|
|
|
(102,400
|
)
|
|||||
Cash flows from discontinued operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net cash used in operating activities
|
(464
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(464
|
)
|
|||||
Net cash used in discontinued operations
|
(464
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(464
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
—
|
|
|
(5,520
|
)
|
|
—
|
|
|
(5,520
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
12,983
|
|
|
3,693
|
|
|
(3,930
|
)
|
|
—
|
|
|
12,746
|
|
|||||
Cash and cash equivalents at the beginning of the period
|
37,803
|
|
|
8,933
|
|
|
286,822
|
|
|
—
|
|
|
333,558
|
|
|||||
Cash and cash equivalents at the end of the period
|
$
|
50,786
|
|
|
$
|
12,626
|
|
|
$
|
282,892
|
|
|
$
|
—
|
|
|
$
|
346,304
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Net Revenues
|
$
|
652.5
|
|
|
$
|
609.9
|
|
|
$
|
1,266.1
|
|
|
$
|
1,197.1
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Gross profit
|
$
|
372.9
|
|
|
$
|
344.8
|
|
|
$
|
717.7
|
|
|
$
|
676.0
|
|
Percentage of sales
|
57.1
|
%
|
|
56.5
|
%
|
|
56.7
|
%
|
|
56.5
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Selling, general and administrative
|
$
|
236.2
|
|
|
$
|
229.9
|
|
|
$
|
463.9
|
|
|
$
|
445.3
|
|
Percentage of sales
|
36.2
|
%
|
|
37.7
|
%
|
|
36.6
|
%
|
|
37.2
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Research and development
|
$
|
27.6
|
|
|
$
|
26.0
|
|
|
$
|
54.7
|
|
|
$
|
52.0
|
|
Percentage of sales
|
4.2
|
%
|
|
4.4
|
%
|
|
4.3
|
%
|
|
4.3
|
%
|
|
Ongoing restructuring programs and other similar cost savings initiatives
|
||||
|
Estimated Total
|
|
Actuals through
December 31, 2018
|
|
Estimated remaining from January 1, 2019 through
December 31, 2026
|
|
(Dollars in millions)
|
||||
Restructuring charges
|
$95 - $114
|
|
$68
|
|
$27 - $46
|
Restructuring related charges
(1)
|
$110 - $141
|
|
$34
|
|
$76 - $107
|
Total charges
|
$205 - $255
|
|
$102
|
|
$103 - $153
|
|
|
|
|
|
|
OEM initiative annual pre-tax savings
|
$6 - $7
|
|
$1
|
|
$5 - $6
|
Ongoing restructuring programs annual pre-tax savings
(2)
|
$63 - $73
|
|
$21
|
|
$42 - $52
|
Total annual pre-tax savings
|
$69 - $80
|
|
$22
|
|
$47 - $58
|
(1)
|
Restructuring related charges represent costs that are directly related to the programs and principally constitute costs to transfer manufacturing operations to existing lower-cost locations, project management costs and accelerated depreciation, as well as a charge that is expected to be imposed by a taxing authority as a result of our exit from facilities in the authority's jurisdiction. Most of these charges (other than the tax charge) are expected to be recognized as cost of goods sold.
|
(2)
|
Substantially all the pre-tax savings are expected to result in reductions to cost of goods sold. As previously disclosed, during 2016, in connection with our execution of the 2014 Footprint realignment plan, we implemented changes to medication delivery devices included in certain of our kits, which are expected to result in increased product costs (and therefore reduce the annual savings we anticipated at the inception of the program). However, we also expect to achieve improved pricing on these kits that will offset the increased costs, resulting in estimated annual increased revenues of $3 million to $4 million, which is not reflected in the table above. Since 2017, we have realized an aggregate benefit of $2.4 million resulting from this incremental pricing. More recently, during the fourth quarter of 2017, we entered into an agreement with an alternate provider for the development and supply of a component to be included in certain kits sold by our Americas segment. The agreement will result in increased development costs but is expected to reduce the cost of the component supply, once the supply becomes commercially available, as compared to the costs incurred with respect to our current suppliers. Therefore, we anticipate a net savings from the agreement, which is reflected in the table above.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Restructuring and impairment charges
|
$
|
1.7
|
|
|
$
|
55.4
|
|
|
$
|
19.1
|
|
|
$
|
58.4
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||||||
|
(Dollars in millions)
|
||||||||||||||
Interest expense
|
$
|
20.8
|
|
|
$
|
26.6
|
|
|
$
|
43.5
|
|
|
$
|
52.6
|
|
Average interest rate on debt
|
3.6
|
%
|
|
4.4
|
%
|
|
3.7
|
%
|
|
4.3
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
June 30, 2019
|
|
July 1, 2018
|
||||
Effective income tax rate
|
4.4
|
%
|
|
136.3
|
%
|
|
10.6
|
%
|
|
23.2
|
%
|
Segment net revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
% Increase/
(Decrease) |
|
June 30, 2019
|
|
July 1, 2018
|
|
% Increase/
(Decrease) |
||||||||||
|
(Dollars in millions)
|
|
|
|
(Dollars in millions)
|
|
|
||||||||||||||
Americas
|
$
|
373.8
|
|
|
$
|
331.5
|
|
|
12.8
|
|
|
$
|
717.8
|
|
|
$
|
654.8
|
|
|
9.6
|
|
EMEA
|
147.1
|
|
|
153.4
|
|
|
(4.2
|
)
|
|
301.6
|
|
|
313.3
|
|
|
(3.7
|
)
|
||||
Asia
|
75.2
|
|
|
72.4
|
|
|
3.9
|
|
|
136.0
|
|
|
130.6
|
|
|
4.1
|
|
||||
OEM
|
56.4
|
|
|
52.6
|
|
|
7.3
|
|
|
110.7
|
|
|
98.4
|
|
|
12.4
|
|
||||
Segment net revenues
|
$
|
652.5
|
|
|
$
|
609.9
|
|
|
7.0
|
|
|
$
|
1,266.1
|
|
|
$
|
1,197.1
|
|
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Segment operating profit
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||
|
June 30, 2019
|
|
July 1, 2018
|
|
% Increase/
(Decrease) |
|
June 30, 2019
|
|
July 1, 2018
|
|
% Increase/
(Decrease) |
||||||||||
|
(Dollars in millions)
|
|
|
|
|
(Dollars in millions)
|
|
|
|||||||||||||
Americas
|
$
|
82.5
|
|
|
$
|
47.3
|
|
|
74.4
|
|
|
$
|
148.1
|
|
|
$
|
106.1
|
|
|
39.5
|
|
EMEA
|
20.8
|
|
|
26.5
|
|
|
(21.5
|
)
|
|
47.9
|
|
|
58.3
|
|
|
(17.9
|
)
|
||||
Asia
|
19.3
|
|
|
20.8
|
|
|
(7.2
|
)
|
|
29.2
|
|
|
34.2
|
|
|
(14.3
|
)
|
||||
OEM
|
13.9
|
|
|
13.6
|
|
|
2.4
|
|
|
27.2
|
|
|
22.6
|
|
|
20.5
|
|
||||
Segment operating profit
(1)
|
$
|
136.5
|
|
|
$
|
108.2
|
|
|
26.2
|
|
|
$
|
252.4
|
|
|
$
|
221.2
|
|
|
14.1
|
|
(1)
|
See Note 15 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, loss on extinguishment of debt and taxes.
|
Exhibit No.
|
|
|
|
Description
|
|
|
|
|
|
*10.1
|
|
—
|
|
|
31.1
|
|
—
|
|
|
31.2
|
|
—
|
|
|
32.1
|
|
—
|
|
|
32.2
|
|
—
|
|
|
101.1
|
|
—
|
|
The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, 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 June 30, 2019 and July 1, 2018; (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2019 and July 1, 2018; (iv) the Condensed Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018; (v) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and July 1, 2018; (vi) the Condensed Consolidated Statements of Changes in Equity for the six months ended June 30, 2019 and July 31, 2018; and (vii) Notes to Condensed Consolidated Financial Statements.
|
|
|
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)
|
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