EX-99.2 4 c15768exv99w2.htm EXHIBIT 99.2 Exhibit 99.2
Exhibit 99.2
TELEFLEX INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 16 — Guarantor financial statements
In connection with a proposed issuance of senior subordinated notes by Teleflex Incorporated (“Parent Company”), it is anticipated that certain of the Parent Company’s subsidiaries (“Guarantor Subsidiaries”) will jointly, fully, severally and unconditionally guarantee such senior subordinated notes. Each Guarantor Subsidiary is 100% owned by the Parent Company. The following presents the condensed consolidating financial information separately for:
  i.   Parent Company, the issuer of the guaranteed obligations;
  ii.   Guarantor Subsidiaries, on a combined basis, as specified in the Indenture;
  iii.   Non-guarantor subsidiaries, on a combined basis, as specified in the Indenture;
  iv.   Consolidating entries and eliminations representing adjustments to (a) eliminate intercompany transactions between or among the Parent Company, the Guarantor Subsidiaries and the non-guarantor subsidiaries, (b) eliminate the investments in subsidiaries and (c) record consolidating entries; and
  v.   Parent Company and its subsidiaries on a consolidated basis.
Each entity in the consolidating financial information follows the same accounting policies as described in the consolidated financial statements, except for the use by the Parent Company and Guarantor Subsidiaries of the equity method of accounting to reflect ownership interests in subsidiaries which are eliminated upon consolidation.
The following tables present the Company’s condensed consolidating statements of income for the three month periods ending March 27, 2011 and March 28, 2010, respectively, our condensed consolidating balance sheets as of March 27, 2011 and December 31, 2010, respectively and our condensed consolidated statements of cash flows for the three month periods ending March 27, 2011 and March 28, 2010, respectively.

 

 

 

TELEFLEX INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
GUARANTOR SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF INCOME
                                         
    Three Months Ended March 27, 2011  
            Guarantor     Non-Guarantor             Condensed  
    Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (Dollars in thousands)  
Net revenues
   $ —     $ 226,826     $ 216,512     $ (54,680 )   $ 388,658  
Cost of goods sold
     —       137,422       129,654       (54,456 )     212,620  
 
                              
Gross profit
     —       89,404       86,858       (224 )     176,038  
Selling, general and administrative expenses
     9,751       59,465       39,959       656       109,831  
Research and development expenses
     —       9,384       1,654       —       11,038  
Restructuring and other impairment charges
     —       588       7       —       595  
 
                              
Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes
     (9,751 )     19,967       45,238       (880 )     54,574  
Interest expense, net
     31,329       (15,036 )     (242 )     —       16,051  
Loss on extinguishments of debt
     14,597       —       —       —       14,597  
 
                              
Income (loss) from continuing operations before taxes
     (55,677 )     35,003       45,480       (880 )     23,926  
Taxes on income from continuing operations
     (19,277 )     13,939       13,055       (1,291 )     6,426  
Equity in net income of consolidated subsidiaries
     135,365       73,039       —       (208,404 )     —  
 
                              
Income from continuing operations
     98,965       94,103       32,425       (207,993 )     17,500  
 
                              
Operating income from discontinued operations
     (37,764 )     39,411       57,210       —       58,857  
Taxes on income from discontinued operations
     (16,611 )     6,127       8,647       —       (1,837 )
 
                              
Income from discontinued operations
     (21,153 )     33,284       48,563       —       60,694  
 
                              
Net income
     77,812       127,387       80,988       (207,993 )     78,194  
Less: Net income attributable to noncontrolling interests
     —       —       382       —       382  
 
                              
Net income attributable to common shareholders
   $ 77,812     $ 127,387     $ 80,606     $ (207,993 )   $ 77,812  
 
                              

 

2

 

TELEFLEX INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
                                         
    Three Months Ended March 28, 2010  
            Guarantor     Non-Guarantor             Condensed  
    Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (Dollars in thousands)  
Net revenues
   $ —     $ 219,285     $ 208,569     $ (60,522 )   $ 367,332  
Cost of goods sold
     —       121,704       123,980       (55,249 )     190,435  
 
                              
Gross profit
     —       97,581       84,589       (5,273 )     176,897  
Selling, general and administrative expenses
     7,960       56,504       35,732       372       100,568  
Research and development expenses
     —       8,160       1,151       —       9,311  
Restructuring and other impairment charges
     —       298       165       —       463  
 
                              
Income (loss) from continuing operations before interest and taxes
     (7,960 )     32,619       47,541       (5,645 )     66,555  
Interest expense, net
     32,070       (18,191 )     4,909       —       18,788  
 
                              
Income (loss) from continuing operations before taxes
     (40,030 )     50,810       42,632       (5,645 )     47,767  
Taxes on income from continuing operations
     (14,167 )     20,072       12,479       (4,137 )     14,247  
Equity in net income of consolidated subsidiaries
     66,341       20,448       —       (86,789 )     —  
 
                              
Income from continuing operations
     40,478       51,186       30,153       (88,297 )     33,520  
 
                              
Operating income from discontinued operations
     (4,407 )     13,022       4,838       (173 )     13,280  
Taxes on income from discontinued operations
     (1,601 )     8,871       1,572       —       8,842  
 
                              
Income from discontinued operations
     (2,806 )     4,151       3,266       (173 )     4,438  
 
                              
Net income
     37,672       55,337       33,419       (88,470 )     37,958  
Less: Net income attributable to noncontrolling interests
     —       —       286       —       286  
 
                              
Net income attributable to common shareholders
   $ 37,672     $ 55,337     $ 33,133     $ (88,470 )   $ 37,672  
 
                              

 

3

 

TELEFLEX INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
GUARANTOR SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEETS
                                         
    March 27, 2011  
            Guarantor     Non-Guarantor             Condensed  
    Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (Dollars in thousands)  
ASSETS
                                       
Current assets
   $ 61,120     $ 496,457     $ 819,488     $ (451,147 )   $ 925,918  
Goodwill
     —       956,759       512,231       —       1,468,990  
Intangibles assets, net
     —       714,628       213,008       —       927,636  
Other noncurrent assets
     5,104,902       3,102,610       644,017       (8,495,270 )     356,259  
 
                              
Total assets
   $ 5,166,022     $ 5,270,454     $ 2,188,744     $ (8,946,417 )   $ 3,678,803  
 
                              
 
                                        
LIABILITIES AND EQUITY
                                        
Current liabilities
   $ 172,575     $ 379,365     $ 233,509     $ (443,543 )   $ 341,906  
Long-term borrowings
     822,473       —       —       —       822,473  
Deferred tax liabilities
     —       358,589       75,555       (47,143 )     387,001  
Other noncurrent liabilities
     2,286,264       57,176       718,164       (2,823,169 )     238,435  
 
                              
Total liabilities
     3,281,312       795,130       1,027,228       (3,313,855 )     1,789,815  
Total equity
     1,884,710       4,475,324       1,161,516       (5,632,562 )     1,888,988  
 
                              
Total liabilities and equity
   $ 5,166,022     $ 5,270,454     $ 2,188,744     $ (8,946,417 )   $ 3,678,803  
 
                              
                                         
    December 31, 2010  
            Guarantor     Non-Guarantor             Condensed  
    Issuer     Subsidiaries     Subsidiaries     Eliminations     Consolidated  
    (Dollars in thousands)  
ASSETS
                                       
Current assets
   $ 61,344     $ 859,011     $ 865,786     $ (864,908 )   $ 921,233  
Goodwill
     —       943,656       498,755       —       1,442,411  
Intangibles assets, net
     —       694,186       224,336       —       918,522  
Other noncurrent assets
     4,953,669       2,886,002       582,859       (8,061,541 )     360,989  
 
                              
Total assets
   $ 5,015,013     $ 5,382,855     $ 2,171,736     $ (8,926,449 )   $ 3,643,155  
 
                              
 
                                        
LIABILITIES AND EQUITY
                                        
Current liabilities
   $ 152,431     $ 648,628     $ 480,344     $ (860,640 )   $ 420,763  
Long-term borrowings
     813,409       —       —       —       813,409  
Deferred tax liabilities
     —       348,603       65,676       (43,460 )     370,819  
Other noncurrent liabilities
     2,265,797       51,374       461,464       (2,527,749 )     250,886  
 
                              
Total liabilities
     3,231,637       1,048,605       1,007,484       (3,431,849 )     1,855,877  
Total equity
     1,783,376       4,334,250       1,164,252       (5,494,600 )     1,787,278  
 
                              
Total liabilities and equity
   $ 5,015,013     $ 5,382,855     $ 2,171,736     $ (8,926,449 )   $ 3,643,155  
 
                              

 

4

 

TELEFLEX INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
GUARANTOR SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
                                 
    Three Months Ended March 27, 2011  
            Guarantor     Non-Guarantor     Condensed  
    Issuer     Subsidiaries     Subsidiaries     Consolidated  
    (Dollars in thousands)  
Net cash (used in) provided by operating activities from continuing operations
   $ (63,122 )   $ 48,509     $ 28,675     $ 14,062  
 
                        
Cash Flows from Investing Activities of Continuing Operations:
                                
Expenditures for property, plant and equipment
     (64 )     (4,110 )     (2,270 )     (6,444 )
Proceeds from sales of businesses and assets, net of cash sold
     —       62,728       38,872       101,600  
Payments for businesses and intangibles acquired, net of cash acquired
     —       (30,570 )     —       (30,570 )
 
                        
Net cash (used in) provided by investing activities from continuing operations
     (64 )     28,048       36,602       64,586  
 
                        
Cash Flows from Financing Activities of Continuing Operations:
                                
Proceeds from long-term borrowings
     265,000       —       —       265,000  
Reduction in long-term borrowings
     (330,800 )     —       —       (330,800 )
Proceeds from stock compensation plans
     6,764       —       —       6,764  
Dividends
     (13,614 )     —       —       (13,614 )
Debt extinguishment, issuance and amendment fees
     (14,838 )     —       —       (14,838 )
Intercompany transactions
     160,785       (76,557 )     (84,228 )     —  
 
                        
Net cash provided by (used in) financing activities from continuing operations
     73,297       (76,557 )     (84,228 )     (87,488 )
 
                        
Cash Flows from Discontinued Operations:
                                
Net cash used in operating activities
     (992 )     —       (4,117 )     (5,109 )
Net cash used in investing activities
     (3 )     —       (246 )     (249 )
 
                        
Net cash used in discontinued operations
     (995 )     —       (4,363 )     (5,358 )
 
                        
Effect of exchange rate changes on cash and cash equivalents
     —       —       8,044       8,044  
 
                        
Net increase (decrease) in cash and cash equivalents
     9,116       —       (15,270 )     (6,154 )
Cash and cash equivalents at the beginning of the period
     22,632       —       185,820       208,452  
 
                        
Cash and cash equivalents at the end of the period
   $ 31,748     $ —     $ 170,550     $ 202,298  
 
                        

 

5

 

TELEFLEX INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
                                 
    Three Months Ended March 28, 2010  
            Guarantor     Non-Guarantor     Condensed  
    Issuer     Subsidiaries     Subsidiaries     Consolidated  
    (Dollars in thousands)  
Net cash (used in) provided by operating activities from continuing operations
   $ (18,835 )   $ 71,770     $ (18,558 )   $ 34,377  
 
                        
Cash Flows from Investing Activities of Continuing Operations:
                                
Expenditures for property, plant and equipment
     (351 )     (4,692 )     (1,694 )     (6,737 )
Proceeds from sales of businesses and assets, net of cash sold
     —       24,750       —       24,750  
Payments for businesses and intangibles acquired, net of cash acquired
     —       (81 )     —       (81 )
 
                        
Net cash (used in) provided by investing activities from continuing operations
     (351 )     19,977       (1,694 )     17,932  
 
                        
Cash Flows from Financing Activities of Continuing Operations:
                                
Reduction in long-term borrowings
     (51,090 )     —       —       (51,090 )
Increase in notes payable and current borrowings
     39,700       —       —       39,700  
Proceeds from stock compensation plans
     3,670       —       —       3,670  
Dividends
     (13,536 )     —       —       (13,536 )
Intercompany transactions
     43,031       (91,747 )     48,716       —  
 
                        
Net cash provided by (used in) financing activities from continuing operations
     21,775       (91,747 )     48,716       (21,256 )
 
                        
Cash Flows from Discontinued Operations:
                                
Net cash provided by (used in) operating activities
     2,223       —       (5,537 )     (3,314 )
Net cash provided by (used in) investing activities
     208       —       (819 )     (611 )
 
                        
Net cash provided by (used in) discontinued operations
     2,431       —       (6,356 )     (3,925 )
 
                        
Effect of exchange rate changes on cash and cash equivalents
     —       —       (4,714 )     (4,714 )
 
                        
Net increase in cash and cash equivalents
     5,020       —       17,394       22,414  
Cash and cash equivalents at the beginning of the period
     31,777       —       156,528       188,305  
 
                        
Cash and cash equivalents at the end of the period
   $ 36,797     $ —     $ 173,922     $ 210,719  
 
                        

 

6