Condensed Consolidated Guarantor Financial Information

9 Months Ended

Sep. 25, 2011

Condensed Consolidated Guarantor Financial Information [Abstract]

Condensed Consolidated Guarantor Financial Information

Note 15 — Condensed consolidated guarantor financial information

As described in Note 7, "Borrowings," in June 2011, Teleflex Incorporated (referred to below as "Parent Company") issued $250 million of 6.875% senior subordinated notes through a registered public offering. The notes are fully and unconditionally guaranteed, jointly and severally, by certain of the Parent Company's subsidiaries (each, a "Guarantor Subsidiary" and collectively, the "Guarantor Subsidiaries"). Each Guarantor Subsidiary is 100% owned by the Parent Company. The Company's condensed consolidating statements of income for the three and nine month periods ending September 25, 2011 and September 26, 2010, condensed consolidating balance sheets as of September 25, 2011 and December 31, 2010 and our condensed consolidated statements of cash flows for the nine month periods ending September 25, 2011 and September 26, 2010, each of which are set forth below, provide consolidating information for:

i. Parent Company, the issuer of the guaranteed obligations;

ii. Guarantor Subsidiaries, on a combined basis;

iii. Non-guarantor subsidiaries, on a combined basis; and

iv. Parent Company and its subsidiaries on a consolidated basis.

The same accounting policies as described in the consolidated financial statements are used by each entity in the condensed consolidating financial information, 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.

Consolidating entries and eliminations in the following consolidating financial statements represent 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.

TELEFLEX INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

TELEFLEX INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF INCOME

	Three Months Ended September 25, 2011
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Condensed Consolidated
	(Dollars in thousands)
Net revenues	$	—		$	242,444		$	196,399		$	(66,952	)	$	371,891
Cost of goods sold		—			147,475			110,960			(64,818	)		193,617
Gross profit		—			94,969			85,439			(2,134	)		178,274
Selling, general and administrative expenses		9,030			55,712			37,876			293			102,911
Research and development expenses		—			10,590			1,735			—			12,325
Restructuring and other impairment charges		—			(172	)		(1	)		—			(173	)
Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes		(9,030	)		28,839			45,829			(2,427	)		63,211
Interest expense		32,576			(13,591	)		192			—			19,177
Interest income		(133	)		(14	)		(171	)		—			(318	)
Income (loss) from continuing operations before taxes		(41,473	)		42,444			45,808			(2,427	)		44,352
Taxes (benefit) on income from continuing operations		(15,075	)		12,838			13,743			(906	)		10,600
Equity in net income of consolidated subsidiaries		70,667			38,641			—			(109,308	)		—
Income from continuing operations		44,269			68,247			32,065			(110,829	)		33,752
Operating income from discontinued operations		(1,106	)		(1	)		14,389			—			13,282
Taxes (benefit) on income from discontinued operations		(488	)		528			2,929			—			2,969
Income from discontinued operations		(618	)		(529	)		11,460			—			10,313
Net income		43,651			67,718			43,525			(110,829	)		44,065
Less: Income from continuing operations attributable to noncontrolling interest		—			—			289			—			289
Income from discontinued operations attributable to noncontrolling interest		—			—			125			—			125
Net income attributable to common shareholders		43,651			67,718			43,111			(110,829	)		43,651

	Three Months Ended September 26, 2010
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Condensed Consolidated
	(Dollars in thousands)
Net revenues	$	—		$	226,073		$	180,109		$	(61,141	)	$	345,041
Cost of goods sold		—			131,297			106,050			(58,870	)		178,477
Gross profit		—			94,776			74,059			(2,271	)		166,564
Selling, general and administrative expenses		10,358			63,323			27,566			295			101,542
Research and development expenses		—			9,444			1,127			—			10,571
Net gain on sales of businesses and assets		—			—			(183	)		—			(183	)
Restructuring and other impairment charges		458			409			274			—			1,141
Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes		(10,816	)		21,600			45,275			(2,566	)		53,493
Interest expense		34,706			(19,959	)		5,300			—			20,047
Interest income		(9	)		(33	)		(177	)		—			(219	)
Loss on extinguishments of debt		30,354			—			—			—			30,354
Income (loss) from continuing operations before taxes		(75,867	)		41,592			40,152			(2,566	)		3,311
Taxes (benefit) on income from continuing operations		(28,091	)		13,034			5,771			1,610			(7,676	)
Equity in net income of consolidated subsidiaries		74,440			58,320			—			(132,760	)		—
Income from continuing operations		26,664			86,878			34,381			(136,936	)		10,987
Operating income (loss) from discontinued operations		(1,952	)		—			16,104			(9	)		14,143
Taxes (benefit) on income from discontinued operations		2,516			(1,975	)		2,054			—			2,595
Income (loss) from discontinued operations		(4,468	)		1,975			14,050			(9	)		11,548
Net income		22,196			88,853			48,431			(136,945	)		22,535
Less: Income from continuing operations attributable to noncontrolling interests		—			—			226			—			226
Income from discontinued operations attributable to noncontrolling interest		—			—			113			—			113
Net income attributable to common shareholders	$	22,196		$	88,853		$	48,092		$	(136,945	)	$	22,196

	Nine Months Ended September 25, 2011
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Condensed Consolidated
	(Dollars in thousands)
Net revenues	$	—		$	716,311		$	585,860		$	(184,990	)	$	1,117,181
Cost of goods sold		—			438,007			332,675			(180,311	)		590,371
Gross profit		—			278,304			253,185			(4,679	)		526,810
Selling, general and administrative expenses		28,415			178,168			109,868			887			317,338
Research and development expenses		—			30,031			5,788			—			35,819
Restructuring and other impairment charges		11			1,686			1,901			—			3,598
Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes		(28,426	)		68,419			135,628			(5,566	)		170,055
Interest expense		92,447			(41,738	)		399			—			51,108
Interest income		(247	)		(55	)		(374	)		—			(676	)
Loss on extinguishments of debt		15,413			—			-			—			15,413
Income (loss) from continuing operations before taxes		(136,039	)		110,212			135,603			(5,566	)		104,210
Taxes (benefit) on income from continuing operations		(50,353	)		38,580			38,133			(1,938	)		24,422
Equity in net income of consolidated subsidiaries		267,731			150,761			—			(418,492	)		—
Income from continuing operations		182,045			222,393			97,470			(422,120	)		79,788
Operating income (loss) from discontinued operations		(52,424	)		37,758			86,814			—			72,148
Taxes (benefit) on income from discontinued operations		(25,912	)		5,416			15,686			—			(4,810	)
Income (loss) from discontinued operations		(26,512	)		32,342			71,128			—			76,958
Net income		155,533			254,735			168,598			(422,120	)		156,746
Less: Income from continuing operations attributable to noncontrolling interests		—			—			770			—			770
Income from discontinued operations attributable to noncontrolling interest		—			—			443			—			443
Net income attributable to common shareholders	$	155,533		$	254,735		$	167,385		$	(422,120	)	$	155,533

	Nine Months Ended September 26, 2010
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Condensed Consolidated
	(Dollars in thousands)
Net revenues	$	—		$	681,770		$	552,995		$	(187,760	)	$	1,047,005
Cost of goods sold		—			387,140			327,809			(179,620	)		535,329
Gross profit		—			294,630			225,186			(8,140	)		511,676
Selling, general and administrative expenses		27,655			178,833			89,823			650			296,961
Research and development expenses		—			26,426			3,744			—			30,170
Net gain on sales of businesses and assets		—			—			(183	)		—			(183	)
Restructuring and other impairment charges		458			1,215			6			—			1,679
Income (loss) from continuing operations before interest, loss on extinguishments of debt and taxes		(28,113	)		88,156			131,796			(8,790	)		183,049
Interest expense		100,136			(57,364	)		15,729			—			58,501
Interest income		(7	)		(112	)		(456	)		—			(575	)
Loss on extinguishments of debt		30,354			—			—			—			30,354
Income (loss) from continuing operations before taxes		(158,596	)		145,632			116,523			(8,790	)		94,769
Taxes (benefit) on income from continuing operations		(59,114	)		50,962			27,667			(828	)		18,687
Equity in net income of consolidated subsidiaries		210,125			77,832			—			(287,957	)		—
Income from continuing operations		110,643			172,502			88,856			(295,919	)		76,082
Operating income from discontinued operations		21,361			13,006			39,945			(160	)		74,152
Taxes on income from discontinued operations		11,988			7,485			9,742			—			29,215
Income from discontinued operations		9,373			5,521			30,203			(160	)		44,937
Net income		120,016			178,023			119,059			(296,079	)		121,019
Less: Income from continuing operations attributable to noncontrolling interests		—			—			657			—			657
Income from discontinued operations attributable to noncontrolling interest		—			—			346			—			346
Net income attributable to common shareholders	$	120,016		$	178,023		$	118,056		$	(296,079	)	$	120,016

TELEFLEX INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

TELEFLEX INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

	September 25, 2011
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Condensed Consolidated
	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	151,990	$	1,216	$	218,493		$	—		$	371,699
Accounts receivable, net		1,440		311,430		475,680			(511,210	)		277,340
Inventories, net		—		194,735		131,747			(15,065	)		311,417
Prepaid expenses and other current assets		7,081		3,554		22,434			—			33,069
Prepaid taxes		31,039		—		11,420			(932	)		41,527
Deferred tax assets		2,094		23,165		8,326			(500	)		33,085
Assets held for sale		—		2,738		115,555			—			118,293
Total current assets		193,644		536,838		983,655			(527,707	)		1,186,430
Property, plant and equipment, net		5,554		147,296		97,732			—			250,582
Goodwill		—		994,009		462,701			—			1,456,710
Intangibles assets, net		—		721,542		176,304			—			897,846
Investments in affiliates		5,105,537		664,211		21,045			(5,788,632	)		2,161
Deferred tax assets		27,970		—		2,003			(29,633	)		340
Other assets		42,274		2,751,685		479,344			(3,198,661	)		74,642
Total assets	$	5,374,979	$	5,815,581	$	2,222,784		$	(9,544,633	)	$	3,868,711
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	—	$	—	$	29,700		$	—		$	29,700
Accounts payable		94,342		381,390		114,499			(513,986	)		76,245
Accrued expenses		31,657		22,685		58,233			—			112,575
Payroll and benefit-related liabilities		23,988		11,304		31,252			—			66,544
Derivative liabilities		15,330		—		—			—			15,330
Accrued interest		13,628		—		(5	)		—			13,623
Income taxes payable		—		—		11,639			(940	)		10,699
Deferred tax liabilities		—		—		6,225			(500	)		5,725
Liabilities held for sale		—		—		53,531			—			53,531
Total current liabilities		178,945		415,379		305,074			(515,426	)		383,972
Long-term borrowings		952,322		—		—			—			952,322
Deferred tax liabilities		—		345,974		67,218			(29,635	)		383,557
Pension and other postretirement benefit liabilities		62,944		31,005		16,552			—			110,501
Noncurrent liability for uncertain tax positions		11,839		16,583		35,527			—			63,949
Other liabilities		2,236,778		370,039		633,070			(3,202,474	)		37,413
Total liabilities		3,442,828		1,178,980		1,057,441			(3,747,535	)		1,931,714
Total common shareholders' equity		1,932,151		4,636,601		1,160,497			(5,797,098	)		1,932,151
Noncontrolling interest		—		—		4,846			—			4,846
Total equity		1,932,151		4,636,601		1,165,343			(5,797,098	)		1,936,997
Total liabilities and equity	$	5,374,979	$	5,815,581	$	2,222,784		$	(9,544,633	)	$	3,868,711

	December 31, 2010
	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Condensed Consolidated
	(Dollars in thousands)
ASSETS
Current assets
Cash and cash equivalents	$	22,632	$	—	$	185,820	$	—		$	208,452
Accounts receivable, net		16,163		643,931		484,333		(850,231	)		294,196
Inventories, net		4,007		184,620		160,646		(10,675	)		338,598
Prepaid expenses and other current assets		7,607		3,105		15,436		2,683			28,831
Prepaid taxes		6,982		—		3,591		(6,685	)		3,888
Deferred tax assets		3,953		24,610		10,746		—			39,309
Assets held for sale		—		2,745		5,214		—			7,959
Total current assets		61,344		859,011		865,786		(864,908	)		921,233
Property, plant and equipment, net		9,511		150,139		128,055		—			287,705
Goodwill		—		988,528		453,883		—			1,442,411
Intangibles assets, net		—		720,985		197,537		—			918,522
Investments in affiliates		4,862,996		607,815		22,561		(5,488,473	)		4,899
Deferred tax assets		41,200		—		2,620		(43,462	)		358
Other assets		38,962		2,128,048		429,623		(2,528,606	)		68,027
Total assets	$	5,014,013	$	5,454,526	$	2,100,065	$	(8,925,449	)	$	3,643,155
LIABILITIES AND EQUITY
Current liabilities
Current borrowings	$	72,500	$	—	$	31,211	$	—		$	103,711
Accounts payable		1,664		614,494		322,582		(853,894	)		84,846
Accrued expenses		20,634		22,477		74,377		—			117,488
Payroll and benefit-related liabilities		23,752		11,657		36,009		—			71,418
Derivative liabilities		15,634		—		—		—			15,634
Accrued interest		18,247		—		100		—			18,347
Income taxes payable		—		—		11,632		(6,746	)		4,886
Deferred tax liabilities		—		—		4,433		—			4,433
Liabilities held for sale		—		—		—		—			—
Total current liabilities		152,431		648,628		480,344		(860,640	)		420,763
Long-term borrowings		813,409		—		—		—			813,409
Deferred tax liabilities		—		359,164		55,115		(43,460	)		370,819
Pension and other postretirement benefit liabilities		90,391		31,472		19,906		—			141,769
Noncurrent liability for uncertain tax positions		9,771		19,877		32,954		—			62,602
Other liabilities		2,164,635		25		409,604		(2,527,749	)		46,515
Total liabilities		3,230,637		1,059,166		997,923		(3,431,849	)		1,855,877
Total common shareholders' equity		1,783,376		4,395,360		1,098,240		(5,493,600	)		1,783,376
Noncontrolling interest		—		—		3,902		—			3,902
Total equity		1,783,376		4,395,360		1,102,142		(5,493,600	)		1,787,278
Total liabilities and equity	$	5,014,013	$	5,454,526	$	2,100,065	$	(8,925,449	)	$	3,643,155

TELEFLEX INCORPORATED AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

TELEFLEX INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Nine Months Ended September 25, 2011
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Condensed Consolidated
	(Dollars in thousands)
Net cash (used in) provided by operating activities from continuing operations	$	(97,136	)	$	94,739		$	67,090		$	64,693
Cash Flows from Investing Activities of Continuing Operations:
Expenditures for property, plant and equipment		(164	)		(18,278	)		(9,119	)		(27,561	)
Proceeds from sales of businesses and assets, net of cash sold		—			62,044			38,861			100,905
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		(164	)		13,196			29,742			42,774
Cash Flows from Financing Activities of Continuing Operations:
Proceeds from long-term borrowings		515,000			—			—			515,000
Repayment in long-term borrowings		(455,800	)		—			—			(455,800	)
Proceeds from stock compensation plans		32,930			—			—			32,930
Dividends		(41,278	)		—			—			(41,278	)
Debt and equity issuance and amendment costs		(18,510	)		—			—			(18,510	)
Intercompany transactions		195,311			(106,719	)		(88,592	)		—
Net cash provided by (used in) financing activities from continuing operations		227,653			(106,719	)		(88,592	)		32,342
Cash Flows from Discontinued Operations:
Net cash (used in) provided by operating activities		(992	)		—			26,438			25,446
Net cash used in investing activities		(3	)		—			(1,741	)		(1,744	)
Net cash (used in) provided by discontinued operations		(995	)		—			24,697			23,702
Effect of exchange rate changes on cash and cash equivalents		—			—			(264	)		(264	)
Net increase in cash and cash equivalents		129,358			1,216			32,673			163,247
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	$	151,990		$	1,216		$	218,493		$	371,699

	Nine Months Ended September 26, 2010
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Condensed Consolidated
	(Dollars in thousands)
Net cash (used in) provided by operating activities from continuing operations	$	(100,575	)	$	80,490		$	123,958		$	103,873
Cash Flows from Investing Activities of Continuing Operations:
Expenditures for property, plant and equipment		(1,219	)		(14,017	)		(6,027	)		(21,263	)
Proceeds from sales of businesses and assets, net of cash sold		50,000			24,733			1,210			75,943
Payments for businesses and intangibles acquired, net of cash acquired		—			—			(82	)		(82	)
Net cash provided by (used in) investing activities from continuing operations		48,781			10,716			(4,899	)		54,598
Cash Flows from Financing Activities of Continuing Operations:
Proceeds from long-term borrowings		400,000			—			—			400,000
Repayment in long-term borrowings		(460,770	)		—			—			(460,770	)
Increase in notes payable and current borrowings		34,700			—			—			34,700
Proceeds from stock compensation plans		8,470			—			—			8,470
Payments to noncontrolling interest shareholders		—			—			(637	)		(637	)
Dividends		(40,704	)		—			—			(40,704	)
Debt and equity issuance and amendment fees		(48,041	)		—			—			(48,041	)
Purchase of call options		(88,000	)		—			—			(88,000	)
Proceeds from sale of warrants		59,400			—			—			59,400
Intercompany transactions		168,317			(90,720	)		(77,597	)		—
Net cash provided by (used in) financing activities from continuing operations		33,372			(90,720	)		(78,234	)		(135,582	)
Cash Flows from Discontinued Operations:
Net cash provided by operating activities		1,719			—			40,504			42,223
Net cash used in investing activities		(217	)		—			(2,505	)		(2,722	)
Net cash used in financing activities		—			—			(1,124	)		(1,124	)
Net cash provided by discontinued operations		1,502			—			36,875			38,377
Effect of exchange rate changes on cash and cash equivalents		—			—			(1,814	)		(1,814	)
Net (decrease) increase in cash and cash equivalents		(16,920	)		486			75,886			59,452
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	$	14,857		$	486		$	232,414		$	247,757