Teleflex(TFX) - 2025 Q4 - Annual Report

Financial Performance and Risks - As of December 31, 2025, the company accrued $50.2 million of contingent consideration related to completed business combinations, primarily associated with Palette[125] - The company is exposed to fluctuations in foreign currency exchange rates, commodity prices, and interest rates, which may adversely affect its results[140] - Increases in commodity prices, such as plastic resin, aluminum, and steel, could increase product costs, potentially impacting the company's financial performance[141] - Recent interest rate increases have adversely affected the company's borrowing costs and may impact customers' purchasing ability[142] - Changes in tax laws and fluctuations in the effective tax rate may adversely affect the company's financial condition and results of operations[143] - As of December 31, 2025, the company had total consolidated indebtedness of $2.7 billion[156] - The company is exposed to financial risks from fluctuations in market interest rates, foreign currency exchange rates, and commodity prices, managed through a risk management program[308] - As of December 31, 2025, the company has fixed rate debt obligations totaling $1 billion with an average interest rate of 4.438% and variable rate debt obligations totaling $1.65 billion with an average interest rate of 5.161%[311] - A 1.0% change in variable interest rates would result in an annual interest expense change of $16.5 million based on outstanding debt as of December 31, 2025[311] - A hypothetical 10% change in the value of the U.S. dollar against all currencies would affect the fair value of the company's contracts by $179.5 million and $182.2 million, respectively[313] International Operations - 76% of the company's full-time employees were employed in countries outside the U.S. as of December 31, 2025[130] - For the years ended December 31, 2025, 2024, and 2023, 41%, 36%, and 35% of net revenues from continuing operations were derived from operations outside the U.S.[130] - The company is subject to various risks associated with international operations, including trade protection measures and currency restrictions[132] - The company is exposed to foreign currency risks, particularly with the Euro, Chinese Renminbi, and Mexican Peso, and uses forward exchange contracts to mitigate these risks[312] - As of December 31, 2025, the total notional amount for foreign currency forward exchange contracts was $547.3 million and for cross-currency interest rate swap contracts was $1.6 billion[313] Operational and Compliance Risks - The company faces risks related to public health epidemics, which could significantly impact its operations and financial performance[126] - The company is subject to numerous environmental protection and health and safety laws, which could lead to significant compliance costs[153] - The ongoing CEO transition poses risks that could adversely affect the company's business and financial condition[147] - The company relies on strong relationships with healthcare professionals for product development, and failure to maintain these relationships could negatively impact operations[148] - The company faces risks related to potential infringement of third-party intellectual property rights, which could lead to litigation costs[150] - Cybersecurity threats could disrupt the company's operations and adversely affect customer relationships[152] Employee and Governance Matters - 6% of the company's employees were covered by union contracts or collective bargaining arrangements as of December 31, 2025[155] - The company may not pay dividends on its common stock in the future, as this is at the discretion of the board of directors[167] - The company has provisions in its corporate governing documents that could discourage or delay mergers or acquisitions, potentially reducing the market price of its common stock[168] - The indentures governing the Senior Notes allow holders to require the company to purchase their notes in cash upon a change of control, which could increase acquisition costs and deter third-party interest[169] Shareholder Information - The company has approximately 44.2 million shares of common stock outstanding as of December 31, 2025, with 3.2 million shares available for future issuance under the 2023 Stock Incentive Plan[164] - Future impairments to the value of goodwill or intangible assets could negatively affect the company's operating results[139]