8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2010

TELEFLEX INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware	1-5353	23-1147939
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

155 South Limerick Road, Limerick, Pennsylvania	19468
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (610) 948-5100

Not applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.01. Results of Operations and Financial Condition.

On October 26, 2010, Teleflex Incorporated (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the second quarter ended September 26, 2010. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report.

In addition to the financial information included in the Press Release that has been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), the Press Release includes information regarding certain financial measures that exclude the effect of special charges related to restructuring and impairment, losses and other charges related to refinancing transactions, charges related to the Arrow acquisition, certain tax adjustments, (gain)/loss on sale of assets and other charges, the impact of changes in accounting rules, an income tax refund related to gains on a business divestiture, and intangible amortization expense, which are non-GAAP financial measures. The Press Release includes a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.

Management believes that the use of financial measures that exclude the effect of special charges related to restructuring and impairment, losses and other charges related to refinancing transactions, charges related to the Arrow acquisition, certain tax adjustments, (gain)/loss on sale of assets and other charges, the impact of changes in accounting rules, an income tax refund related to gains on a business divestiture, and intangible amortization expense provide useful information to investors to facilitate the comparison of past and present operations, excluding items that the Company does not believe are indicative of our ongoing operations. In addition, management uses these financial measures for internal managerial purposes, when publicly providing guidance on possible future results and to assist in our evaluation of period-to-period comparisons. However, such non-GAAP measures should be considered in addition to, not as a substitute for, or superior to other financial measures prepared in accordance with GAAP. Additionally, such non-GAAP financial measures as presented by the Company may not be comparable to similarly titled measures reported by other companies.

The information furnished pursuant to Item 2.02 of this Current Report, including Exhibit 99.1 hereto, shall not be considered “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of such section, nor shall it be incorporated by reference into future filings by the Company under the Securities Act of 1933, as amended, or under the Securities Exchange Act of 1934, as amended, unless the Company expressly sets forth in such future filing that such information is to be considered “filed” or incorporated by reference therein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release, dated October 26, 2010

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 26, 2010	TELEFLEX INCORPORATED
	By:	/s/ Richard A. Meier
		Name:	Richard A. Meier
		Title:	Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No.		Description
	99.1	Press Release, dated October 26, 2010

EX-99.1

Exhibit 99.1

Contact: Jake Elguicze
Vice President Investor Relations
610-948-2836

FOR IMMEDIATE RELEASE October 26, 2010

TELEFLEX REPORTS THIRD QUARTER 2010 RESULTS

Net revenue of $443 million

Gross margin of 45.8%

Diluted adjusted EPS from continuing operations of $1.11 per share, including tax benefit of $0.13 per share

Diluted GAAP EPS from continuing operations of $0.57 per share

Limerick, PA — Teleflex Incorporated (NYSE: TFX), a global provider of medical technology products that enable healthcare providers to improve patient outcomes, reduce infections and support patient and provider safety, today announced financial results for the third quarter and year to date ended September 26, 2010.

Third Quarter Financial Highlights and Business Segment Commentary

Third quarter 2010 net revenues were $443.0 million, a 1% increase over third quarter revenues of 2009. Core revenues for the quarter increased 4% on a constant currency basis, offset by foreign exchange that negatively impacted sales 2%, and the deconsolidation of an entity that negatively impacted sales 1%.

Third quarter 2010 GAAP income from continuing operations attributable to common shareholders was $23.1 million, or $0.57 per diluted share, a decrease of 32% from the prior year quarter. On an adjusted basis, as detailed in the reconciliation tables below, third quarter 2010 income from continuing operations was $44.7 million, or $1.11 per diluted share, a 30% increase over the same period in the prior year. Third quarter 2010 income from continuing operations includes a favorable tax benefit of $0.13 per share related to the filing of the 2009 federal income tax return, and negative adjustments which included a $20.9 million charge, net of tax, related to the prepayment of indebtedness in connection with refinancing transactions completed during the third quarter.

Third quarter 2010 GAAP net income attributable to common shareholders was $22.2 million compared to $38.3 million in the prior year quarter. These results included a loss from discontinued operations of $0.9 million in the third quarter of 2010, and income from discontinued operations of $4.4 million in the prior year quarter.

“Our third quarter results reflect continued progress towards the achievement of our longer-term growth and profitability objectives,” said Jeffrey P. Black, Chairman and Chief Executive Officer. “Our medical segment core revenue growth was two percent and our gross margins further expanded year-over-year. We continued to invest in research and development and sales and marketing initiatives that we believe will position Teleflex for sustainable, profitable growth in the future.”

Added Black, “A key objective of our product development strategy is to build on our leadership position with products that address infection control and prevention. We demonstrated this in the quarter by achieving 510(k) market clearance from the U.S. Food and Drug Administration (FDA) for our anti-microbial ArrowEVOLUTION™ PICC with Chlorag+ard™ technology, and partnering with Access Scientific to become the U.S. distributor of The PICC WAND™ Safety Introducer with ARROW^® peelable sheath. In addition, we received approval of all certificates to foreign governments from the FDA, and continue to actively work with the FDA to obtain closure of the corporate warning letter.”

Medical Segment

Medical Segment revenues in the third quarter of 2010 were $345.1 million as compared to $350.6 million in the prior year period. Core revenue growth of 2% on a constant currency basis was offset by an unfavorable currency impact of 3% and impact of the deconsolidation of an entity of 1%. Core revenue increases in respiratory, urology, anesthesia, surgical, cardiac care and specialty products sold to medical OEM’s were offset by a decline in vascular access sales. The decline in vascular access sales was primarily due to the voluntary recall of custom IV tubing product that was announced in February of 2010.

Medical Segment sales by product group were comprised of the following:

	Three Months Ended				% Increase/ (Decrease)
	September 26,		September 27,		Core			Currency/			Total
	2010		2009		Growth			Other*			Change
	(Dollars in millions)
Critical Care	$	226.2	$	231.5		0	%		(2	%)		(2	%)
Surgical		61.6		61.4		3	%		(3	%)		0	%
Cardiac Care		17.4		16.9		6	%		(3	%)		3	%
OEM		39.5		37.6		7	%		(2	%)		5	%
Other*		0.4		3.2		(18	%)		(70	%)		(88	%)
Total net sales	$	345.1	$	350.6		2	%		(4	%)		(2	%)

* “Other” represents the impact of the deconsolidation of a variable interest entity as a result of the adoption of Accounting Standards Codification topic 810 “Consolidations.”

Segment operating profit and margins in the third quarter of 2010 were $66.0 million, or 19.1%, compared to $73.2 million, or 20.9%, in the prior year quarter.

Despite a very competitive environment, Teleflex was awarded five GPO (Group Purchasing Organization) contract extensions in the third quarter of 2010, each of which provides continued negotiated access for a combination of surgical instrumentation, chest drainage, respiratory care, endotracheal tubes and nasopharyngeal airway products.

In addition to the medical technology business, Teleflex also has niche businesses that serve segments of the aerospace and commercial markets with specialty engineered products.

Aerospace Segment

Aerospace Segment revenues in the third quarter of 2010 increased 2% to $46.8 million from $45.8 million in the prior year period. Increases in sales of narrow-body cargo handling systems, actuation product, cargo containers and cargo spares and repair sales, more than offset lower sales of wide-body cargo handling systems, resulting in a 5% increase in core revenue during the quarter. This was somewhat offset by an unfavorable currency impact of 3%.

Segment operating profit and margins in the third quarter of 2010 were $8.1 million, or 17.2%, compared to $4.6 million, or 9.9%, in the prior year quarter.

Commercial Segment

Commercial Segment revenues in the third quarter of 2010 increased 15% to $51.1 million from $44.3 million in the same period last year. Core revenue growth of 15% was the result of increased sales of Marine OEM and aftermarket sales.

Segment operating profit and margins in the third quarter of 2010 were $6.2 million, or 12.1%, compared to $4.1 million, or 9.3%, in the prior year quarter.

Balance Sheet Highlights

Cash and cash equivalents on hand at September 26, 2010 were $247.8 million compared to $188.3 million at December 31, 2009, up 32%.

Net accounts receivable at September 26, 2010 were $294.3 million compared to $265.3 million at December 31, 2009, up 11%. Excluding the $39.7 million impact of the adoption of the amendment to Accounting Standards Codification topic 860 “Transfers and Servicing” (“ASC 860”), net accounts receivable declined 4%.

Net inventory at September 26, 2010 was $360.0 million compared to $360.8 million at December 31, 2009.

Net debt at September 26, 2010 was $837.8 million compared to $1,008.2 million at December 31, 2009, a decline of 17%. Excluding the $39.7 million impact of ASC 860, net debt declined 21%.

“During the third quarter 2010, we completed a series of refinancing transactions designed to extend existing maturities and optimize Teleflex’s capital structure by providing financial flexibility and access to additional capital to grow our core medical business while keeping the Company’s cost of capital unchanged,” stated Richard A. Meier, Executive Vice President and Chief Financial Officer.

Year-to-Date Financial Highlights

Net revenues for the first nine months of 2010 increased 2% to $1,325.9 million from $1,295.0 million in 2009. Core revenues increased 3% on a constant currency basis, while the deconsolidation of an entity accounted for a 1% decline in revenues.

GAAP income from continuing operations attributable to common shareholders for the first nine months of 2010 was $100.0 million, or $2.48 per diluted share, an increase of 11% from the first nine months of 2009. On an adjusted basis, as detailed in the reconciliation tables below, income from continuing operations for the first nine months of 2010 was $121.9 million, or $3.03 per diluted share, an increase of 21% from the first nine months of 2009.

GAAP net income attributable to common shareholders for the first nine months of 2010 was $120.0 million compared to $260.3 million in the first nine months of 2009. These results included income from discontinued operations, net of tax of $20.0 million in the first nine months of 2010, and income from discontinued operations, net of tax of $170.4 million in the first nine months of 2009.

GAAP cash flow from continuing operations for the first nine months of 2010 was $146.8 million as compared to $70.7 million in the first nine months of 2009. On an adjusted basis as detailed in the reconciliation tables below, cash flow from continuing operations for the first nine months of 2010 was $127.0 million as compared to $168.3 million in 2009. Cash flow for the third quarter of 2010 was impacted by a $30 million pension contribution which the Company elected to make as a function of its recapitalization and to further improve the quality of the balance sheet.

Business Outlook for 2010

The Company expects its full year 2010 total revenues to be approximately $1.8 billion, and now expects its full year 2010 diluted earnings per share from continuing operations excluding special items to be in the range of $4.00 to $4.10. Special items for 2010 are expected to be approximately $0.55 per diluted share. This compares to the Company’s previous guidance of full year 2010 diluted earnings per share from continuing operations excluding special items guidance range of $3.95 to $4.10, and special items of $0.05 per diluted share. The increase in special items is associated with the net of tax charge incurred in connection with the refinancing transactions completed during the third quarter of 2010.

Core revenue growth in the Medical segment for full year 2010 is now expected to be 2%. This compares to the Company’s previous guidance of full year core revenue growth in the Medical segment of 3%.

Cash flow from continuing operations, exclusive of the impact of the adoption of ASC 860, is now expected to be in the range of $235 to $245 million. This compares to the Company’s previous guidance range of $265 to $270 million. The change in guidance is primarily associated with the previously mentioned pension contribution that was made during the third quarter of 2010.

Longer-Term Growth and Profitability Objectives

With the portfolio transition to healthcare largely complete, the Company has increased its focus on delivering long-term growth and profitability. As such, the Company is targeting the achievement of the following objectives within the next five years and will provide updates towards the achievement of these targets on an LTM (last twelve months) basis beginning in the fourth quarter of 2010:

• Consolidated organic revenue growth of approximately 5%

• Consolidated gross margins of approximately 55%

• Consolidated research and development expense of approximately 5%

• Consolidated operating margins of approximately 25%

In achieving these objectives, we believe revenue growth will be driven by new products and product line extensions, expanding our geographic reach, leveraging our existing distribution channels and further investment in our global sales and marketing groups. Margin expansion will be driven by various initiatives which may include: consolidation of distribution facilities; efficiencies gained from the reduction of third-party vendors; consolidation and productivity improvements of manufacturing locations and customer service; and further rationalization of general and administrative expenses. We also expect some of these benefits to be offset by increases in spending in research and development.

Conference Call Webcast and Additional Information

As previously announced, Teleflex will comment on its third quarter results on a conference call to be held today at 5:00 p.m. (ET). The call will be available live and archived on the Company’s website at www.teleflex.com and the accompanying presentation will be posted prior to the call. An audio replay will be available until November 2, 2010, 12:00pm (ET), by calling 888-286-8010 (U.S./Canada) or 617-801-6888 (International), Passcode: 91604182.

Additional Notes

Core revenue and growth include activity of a purchased company beyond the initial twelve months after the date of acquisition. Core revenue and growth exclude the impact of translating the results of international subsidiaries at different currency exchange rates from period to period, and the activity of companies that have been divested within the most recent twelve month period.

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

Segment operating profit includes a segment’s net revenues reduced by its materials, labor and other product costs along with the segment’s selling, engineering and administrative expenses and non-controlling interest. Unallocated corporate expenses, gains or losses on sales of assets, restructuring and impairment charges, interest income and expense and taxes on income are excluded from the measure.

Segment commentary excludes the impact of discontinued operations, items included in restructuring and impairment charges, and losses and other charges as disclosed in the condensed consolidated statements of income.

Notes on Non-GAAP Financial Measures

This press release includes financial measures which exclude the effect of charges associated with our restructuring programs and asset impairments, losses and other charges related to refinancing transactions, charges related to the Arrow acquisition, certain tax adjustments, (gain)/loss on sale of assets and other charges, the impact of changes in accounting rules, an income tax refund related to gains on a business divestiture, and intangible amortization expense. Adjusted cash earnings per share from continuing operations is defined as adjusted earnings per share from continuing operations plus intangible amortization expense. Management believes these measures are useful to investors because they eliminate items that do not reflect Teleflex’s day-to-day operations. In addition, management uses these financial measures for internal managerial purposes, when publicly providing guidance on possible future results, and to assist in our evaluation of period-to-period comparisons. These financial measures are presented in addition to results presented in accordance with GAAP and should not be relied upon as a substitute for GAAP financial measures. Tables reconciling these non-GAAP measures to the most directly comparable GAAP measures are set forth below.

Third Quarter and Year to Date Reconciliation of Adjusted Income and Earnings per Share from Continuing Operations

	Three Months			Three Months
	Ended			Ended
	Sept. 26, 2010			Sept. 27, 2009
	(Dollars in thousands, except per share)
Income and diluted earnings per share attributable to common shareholders	$	23,101		$	33,917
	$	0.57		$	0.85
Restructuring and impairment charges		1,141			1,471
Tax benefit		(380	)		(357	)
Restructuring and impairment charges, net of tax		761			1,114
	$	0.02		$	0.03
Losses and other charges (A)		32,742			643
Tax benefit		(11,866	)		(235	)
Losses and other charges net of tax		20,876			408
	$	0.52		$	0.01
Tax adjustments (B)		—			(1,093	)
		—		$	(0.03	)
Income and diluted earnings per share excluding restructuring and impairment charges, losses and other charges, and tax adjustments	$	44,738		$	34,346
	$	1.11		$	0.86

	Three Months		Three Months
	Ended		Ended
	Sept. 26, 2010		Sept. 27, 2009
	(Dollars in thousands, except per share)
Income and diluted earnings per share excluding restructuring and impairment charges, losses and other charges, and tax adjustments	$	44,738	$	34,346
	$	1.11	$	0.86
Amortization of debt discount on convertible notes		979		—
	$	0.02		—
Intangible amortization expense		10,840		10,987
	$	0.27	$	0.28
Cash income and diluted earnings per share excluding restructuring and impairment charges, losses and other charges, and tax adjustments	$	56,557	$	45,333
	$	1.41	$	1.14

	Nine Months			Nine Months
	Ended			Ended
	Sept. 26, 2010			Sept. 27, 2009
	(Dollars in thousands, except per share)
Income and diluted earnings per share attributable to common shareholders	$	100,037		$	89,920
	$	2.48		$	2.25
Restructuring and impairment charges		1,679			16,828
Tax benefit		(652	)		(2,917	)
Restructuring and impairment charges, net of tax		1,027			13,911
	$	0.03		$	0.35
Losses and other charges (A)		32,742			4,349
Tax benefit		(11,866	)		(1,610	)
Losses and other charges net of tax		20,876			2,739
	$	0.52		$	0.07
Tax adjustments (B)		—			(5,398	)
		—		$	(0.14	)
Income and diluted earnings per share excluding restructuring and impairment charges, losses and other charges, and tax adjustments	$	121,940		$	101,172
	$	3.03		$	2.54

	Nine Months		Nine Months
	Ended		Ended
	Sept. 26, 2010		Sept. 27, 2009
	(Dollars in thousands, except per share)
Income and diluted earnings per share excluding restructuring and impairment charges, losses and other charges, and tax adjustments	$	121,940	$	101,172
	$	3.03	$	2.54
Amortization of debt discount on convertible notes		979		—
	$	0.02		—
Intangible amortization expense		33,101		32,512
	$	0.82	$	0.81
Cash income and diluted earnings per share excluding restructuring and impairment charges, losses and other charges, and tax adjustments	$	156,020	$	133,684
	$	3.87	$	3.35

(A)	In 2010, losses and other charges principally related to the prepayment of all of Teleflex’s outstanding senior notes issued in 2007, and related transaction fees and expenses. In 2009, losses and other charges principally related to the loss on sale of assets and restructuring related costs associated with the Arrow acquisition.
(B)	The tax adjustment represents a benefit from the net reduction in income tax reserves and discrete tax benefits related primarily to the resolution of various uncertain tax provisions; the settlement of tax audits; and other adjustments to taxes recorded with respect to prior years, principally resulting from changes to tax law and adjustments to previously filed income tax returns.

Year to Date Reconciliation of Cash Flow from Operations

	Nine Months Ended		Nine Months Ended
	Sept. 26, 2010		Sept. 27, 2009
	(Dollars in thousands)
Cash flow from operations as reported	$	146,776	$	70,718
Add: Impact of the adoption of the amendment to Accounting Standards Codification topic 860 “Transfers and Servicing”		39,700		—
Add: Tax payments on gain on sale of ATI business		—		97,536
Less: Tax refund on sale of ATI business		59,499		—
Adjusted cash flow from operations	$	126,977	$	168,254

Net Debt Reconciliation

	Sept. 26, 2010		Dec. 31, 2009
	(Dollars in thousands)
Note payable and current portion of long-term borrowings	$	181,193	$	4,008
Long term borrowings		904,406		1,192,491
Total debt		1,085,599		1,196,499
Less: cash and cash equivalents		247,757		188,305
Net Debt	$	837,842	$	1,008,194

About Teleflex Incorporated

Teleflex is a global provider of medical technology products that enable healthcare providers to improve patient outcomes, reduce infections and support patient and provider safety. Teleflex, which employs approximately 12,800 people worldwide, also has niche businesses that serve segments of the aerospace and commercial markets with specialty engineered products. Additional information about Teleflex can be obtained from the Company’s website at www.teleflex.com.

Caution Concerning Forward-looking Information

This press release contains forward-looking statements, including, but not limited to, statements relating to our positioning Teleflex for sustainable, profitable growth through investments in research and development and sales and marketing initiatives; 2010 forecast of total revenues; forecasted diluted earnings per share from continuing operations excluding special items; forecasted cash flow from continuing operations, excluding the impact of Accounting Standards Codification Topic 860 “Transfers and Servicing;” expected restructuring and other special charges for 2010; and forecasted full year core revenue growth in the Medical Segment. Actual results could differ materially from those in the forward-looking statements due to, among other things, conditions in the end markets we serve, customer reaction to new products and programs, our ability to achieve sales growth, price increases or cost reductions; changes in the reimbursement practices of third party payors; our ability to realize efficiencies and to execute on our strategic initiatives; changes in material costs and surcharges; market acceptance and unanticipated difficulties in connection with the introduction of new products and product line extensions; product recalls; unanticipated difficulties in connection with the consolidation of manufacturing and administrative functions; unanticipated difficulties, expenditures and delays in complying with government regulations applicable to our businesses, including unanticipated costs and difficulties in connection with the resolution of issues related to the FDA corporate warning letter issued to Arrow; the impact of government healthcare reform legislation; our ability to meet our debt obligations; changes in general and international economic conditions; and other factors described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.

TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Three Months Ended
	September 26,			September 27,
	2010			2009
	(Dollars and shares in thousands,
	except per share)
Net revenues	$	442,993		$	440,741
Cost of goods sold		239,926			244,408
Gross profit		203,067			196,333
Selling, general and administrative expenses		123,441			113,633
Research and development expenses		11,013			9,618
Net gain on sales of businesses and assets		(183	)		—
Goodwill impairment		—			—
Restructuring and other impairment charges		1,141			4,783
Income from continuing operations before interest, loss on extinguishments of debt and taxes		67,655			68,299
Interest expense		20,090			21,074
Interest income		(243	)		(233	)
Loss on extinguishments of debt		30,354			—
Income from continuing operations before taxes		17,454			47,458
(Benefit) taxes on income from continuing operations		(5,986	)		13,236
Income from continuing operations		23,440			34,222
Operating loss from discontinued operations (including loss on disposal of $3,480 in 2009)		—			(2,886	)
Taxes (benefit) on income from discontinued operations		905			(7,281	)
(Loss) income from discontinued operations		(905	)		4,395
Net income		22,535			38,617
Less: Net income attributable to noncontrolling interest		339			305
Net income attributable to common shareholders	$	22,196		$	38,312
Earnings per share available to common shareholders:
Basic:
Income from continuing operations	$	0.58		$	0.85
(Loss) income from discontinued operations	$	(0.02	)	$	0.11
Net income	$	0.56		$	0.96
Diluted:
Income from continuing operations	$	0.57		$	0.85
(Loss) income from discontinued operations	$	(0.02	)	$	0.11
Net income	$	0.55		$	0.96
Dividends per share	$	0.34		$	0.34
Weighted average common shares outstanding:
Basic		39,933			39,724
Diluted		40,254			39,932
Amounts attributable to common shareholders:
Income from continuing operations, net of tax	$	23,101		$	33,917
(Loss) income from discontinued operations, net of tax		(905	)		4,395
Net income	$	22,196		$	38,312

TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

	Nine Months Ended
	September 26,			September 27,
	2010			2009
	(Dollars and shares in thousands,
	except per share)
Net revenues	$	1,325,867		$	1,295,021
Cost of goods sold		719,650			716,080
Gross profit		606,217			578,941
Selling, general and administrative expenses		357,748			344,271
Research and development expenses		30,927			27,725
Net (gain) loss on sales of businesses and assets		(183	)		2,597
Goodwill impairment		—			6,728
Restructuring and other impairment charges		1,679			13,412
Income from continuing operations before interest, loss on extinguishments of debt and taxes		216,046			184,208
Interest expense		58,709			68,470
Interest income		(637	)		(1,901	)
Loss on extinguishments of debt		30,354			—
Income from continuing operations before taxes		127,620			117,639
Taxes on income from continuing operations		26,580			26,876
Income from continuing operations		101,040			90,763
Operating income from discontinued operations (including gain on disposal of $38,562 in 2010 and $272,307 in 2009)		41,301			275,500
Taxes on income from discontinued operations		21,322			95,267
Income from discontinued operations		19,979			180,233
Net income		121,019			270,996
Less: Net income attributable to noncontrolling interest		1,003			843
Income from discontinued operations attributable to noncontrolling interest		—			9,860
Net income attributable to common shareholders	$	120,016		$	260,293
Earnings per share available to common shareholders:
Basic:
Income from continuing operations	$	2.51		$	2.26
Income from discontinued operations	$	0.50		$	4.29
Net income	$	3.01		$	6.55
Diluted:
Income from continuing operations	$	2.48		$	2.25
Income from discontinued operations	$	0.50		$	4.27
Net income	$	2.98		$	6.52
Dividends per share	$	1.02		$	1.02
Weighted average common shares outstanding:
Basic		39,879			39,711
Diluted		40,269			39,910
Amounts attributable to common shareholders:
Income from continuing operations, net of tax	$	100,037		$	89,920
Income from discontinued operations, net of tax		19,979			170,373
Net income	$	120,016		$	260,293

TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

	September 26,		December 31,
	2010		2009
	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	247,757	$	188,305
Accounts receivable, net		294,285		265,305
Inventories, net		359,967		360,843
Prepaid expenses and other current assets		21,170		21,872
Income taxes receivable		49,541		100,733
Deferred tax assets		58,733		58,010
Assets held for sale		11,259		8,866
Total current assets		1,042,712		1,003,934
Property, plant and equipment, net		292,294		317,499
Goodwill		1,438,997		1,459,441
Intangibles assets, net		928,906		971,576
Investments in affiliates		13,288		12,089
Deferred tax assets		—		336
Other assets		81,658		74,130
Total assets	$	3,797,855	$	3,839,005
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	181,193	$	4,008
Accounts payable		91,588		94,983
Accrued expenses		84,157		97,274
Payroll and benefit-related liabilities		71,693		70,537
Derivative liabilities		15,355		16,709
Accrued interest		12,592		22,901
Income taxes payable		1,901		30,695
Deferred tax liabilities		6,648		—
Total current liabilities		465,127		337,107
Long-term borrowings		904,406		1,192,491
Deferred tax liabilities		416,939		398,923
Pension and postretirement benefit liabilities		134,431		164,726
Noncurrent liability for uncertain tax positions		110,935		109,912
Other liabilities		48,740		50,772
Total liabilities		2,080,578		2,253,931
Commitments and contingencies
Total common shareholders’ equity		1,713,231		1,580,241
Noncontrolling interest		4,046		4,833
Total equity		1,717,277		1,585,074
Total liabilities and equity	$	3,797,855	$	3,839,005

TELEFLEX INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Nine Months Ended
	September 26,			September 27,
	2010			2009
	(Dollars in thousands)
Cash Flows from Operating Activities of Continuing Operations:
Net income	$	121,019		$	270,996
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations		(19,979	)		(180,233	)
Depreciation expense		36,856			41,058
Amortization expense of intangible assets		33,101			32,512
Amortization expense of deferred financing costs		4,425			4,556
Loss on extinguishments of debt		30,354			—
Gain on call options and warrants		(407	)		—
Debt modification costs		2,795			—
Impairment of long-lived assets		—			5,788
Impairment of goodwill		—			6,728
Stock-based compensation		7,769			6,611
Net (gain) loss on sales of businesses and assets		(183	)		2,597
Deferred income taxes, net		28,670			36,888
Other		(28,809	)		160
Changes in operating assets and liabilities, net of effects of acquisitions and disposals:
Accounts receivable		(45,343	)		5,467
Inventories		(15,375	)		1,882
Prepaid expenses and other current assets		526			2,087
Accounts payable and accrued expenses		(12,147	)		(37,562	)
Income taxes receivable and payable, net		3,504			(128,817	)
Net cash provided by operating activities from continuing operations		146,776			70,718
Cash Flows from Investing Activities of Continuing Operations:
Expenditures for property, plant and equipment		(23,796	)		(20,257	)
Proceeds from sales of businesses and assets, net of cash sold		75,943			314,513
Payments for businesses and intangibles acquired, net of cash acquired		(82	)		(643	)
Net cash provided by investing activities from continuing operations		52,065			293,613
Cash Flows from Financing Activities of Continuing Operations:
Proceeds from long-term borrowings		400,000			10,018
Reduction in long-term borrowings		(460,770	)		(300,268	)
Increase (decrease) in notes payable and current borrowings		34,402			(836	)
Proceeds from stock compensation plans		8,470			750
Payments to noncontrolling interest shareholders		(1,463	)		(702	)
Dividends		(40,704	)		(40,521	)
Debt and equity issuance and amendment fees		(48,041	)		—
Purchase of call options		(88,000	)		—
Proceeds from sale of warrants		59,400			—
Net cash used in financing activities from continuing operations		(136,706	)		(331,559	)
Cash Flows from Discontinued Operations:
Net cash (used in) provided by operating activities		(680	)		24,861
Net cash used in investing activities		(189	)		(3,488	)
Net cash used in financing activities		—			(11,075	)
Net cash (used in) provided by discontinued operations		(869	)		10,298
Effect of exchange rate changes on cash and cash equivalents		(1,814	)		8,444
Net increase in cash and cash equivalents		59,452			51,514
Cash and cash equivalents at the beginning of the period		188,305			107,275
Cash and cash equivalents at the end of the period	$	247,757		$	158,789

Information about continuing operations by business segment is as follows:

	Three Months Ended
	September 26,			September 27,
	2010			2009
	(Dollars in thousands)
Segment data:
Medical	$	345,041		$	350,576
Aerospace		46,836			45,847
Commercial		51,116			44,318
Segment net revenues	$	442,993		$	440,741
Medical	$	66,047		$	73,159
Aerospace		8,076			4,554
Commercial		6,162			4,104
Segment operating profit		80,285			81,817
Less: Corporate expenses		12,011			9,040
Net gain on sales of businesses and assets		(183	)		—
Restructuring and impairment charges		1,141			4,783
Noncontrolling interest		(339	)		(305	)
Income from continuing operations before interest, loss on extinguishments of debt and taxes	$	67,655		$	68,299

	Nine Months Ended
	September 26,			September 27,
	2010			2009
	(Dollars in thousands)
Segment data:
Medical	$	1,047,005		$	1,043,639
Aerospace		131,704			126,537
Commercial		147,158			124,845
Segment net revenues	$	1,325,867		$	1,295,021
Medical	$	213,012		$	220,363
Aerospace		17,381			8,611
Commercial		15,623			7,740
Segment operating profit		246,016			236,714
Less: Corporate expenses		29,477			30,612
Net (gain) loss on sales of businesses and assets		(183	)		2,597
Goodwill impairment		—			6,728
Restructuring and impairment charges		1,679			13,412
Noncontrolling interest		(1,003	)		(843	)
Income from continuing operations before interest, loss on extinguishments of debt and taxes	$	216,046		$	184,208

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