INTEGER HOLDINGS CORP, 10-Q filed on 4/28/2022
Quarterly Report
v3.22.1
Cover - shares
 3 Months Ended
Apr. 01, 2022
Apr. 22, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 01, 2022  
Document Transition Report false  
Entity File Number 1-16137  
Entity Registrant Name INTEGER HOLDINGS CORPORATION  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 16-1531026  
Entity Address, Address Line One 5830 Granite Parkway,  
Entity Address, Address Line Two Suite 1150  
Entity Address, City or Town Plano,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75024  
City Area Code 214  
Local Phone Number 618-5243  
Title of 12(b) Security Common Stock, $0.001 par value per share  
Trading Symbol ITGR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   33,102,550
Entity Central Index Key 0001114483  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
v3.22.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 25,668 $ 17,885
Accounts receivable, net of provision for credit losses of $0.1 million and $0.1 million, respectively 198,041 182,310
Inventories 173,313 155,699
Refundable income taxes 3,682 4,735
Contract assets 66,343 64,743
Prepaid expenses and other current assets 27,743 27,610
Total current assets 494,790 452,982
Property, plant and equipment, net 273,866 277,099
Goodwill 923,594 924,704
Other intangible assets, net 792,395 807,810
Deferred income taxes 5,702 5,711
Operating lease assets 75,521 70,053
Other long-term assets 42,174 43,856
Total assets 2,608,042 2,582,215
Current liabilities:    
Current portion of long-term debt 15,250 15,250
Accounts payable 90,018 76,859
Income taxes payable 1,350 725
Operating lease liabilities 10,700 9,862
Accrued expenses and other current liabilities 55,764 56,933
Total current liabilities 173,082 159,629
Long-term debt 814,382 812,876
Deferred income taxes 170,908 171,505
Operating lease liabilities 64,262 59,767
Other long-term liabilities 21,058 23,741
Total liabilities 1,243,692 1,227,518
Commitments and contingencies (Note 10)
Stockholders’ equity:    
Common stock, $0.001 par value; 100,000,000 shares authorized; 33,102,167 and 33,063,336 shares issued and outstanding, respectively 33 33
Additional paid-in capital 716,589 713,150
Retained earnings 625,691 614,324
Accumulated other comprehensive income 22,037 27,190
Total stockholders’ equity 1,364,350 1,354,697
Total liabilities and stockholders’ equity $ 2,608,042 $ 2,582,215
v3.22.1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Apr. 01, 2022
Dec. 31, 2021
Current assets:    
Allowance for doubtful accounts $ 0.1 $ 0.1
Stockholders’ equity:    
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 33,102,167 33,063,336
Common stock, shares outstanding (in shares) 33,102,167 33,063,336
v3.22.1
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Income Statement [Abstract]    
Sales $ 310,912 $ 290,467
Cost of sales 229,437 205,981
Gross profit 81,475 84,486
Operating expenses:    
Selling, general and administrative 39,560 35,502
Research, development and engineering 16,083 13,461
Restructuring and other charges 3,335 915
Total operating expenses 58,978 49,878
Operating income 22,497 34,608
Interest expense 5,968 8,532
Loss on equity investments 2,404 1,335
Other (income) loss, net 177 (237)
Income before taxes 13,948 24,978
Provision for income taxes 2,581 3,458
Net income $ 11,367 $ 21,520
Earnings per share:    
Basic (in dollars per share) $ 0.34 $ 0.65
Diluted (in dollars per share) $ 0.34 $ 0.65
Weighted average shares outstanding:    
Basic (in shares) 33,091 32,957
Diluted (in shares) 33,302 33,188
Comprehensive Income    
Net income $ 11,367 $ 21,520
Other comprehensive loss:    
Foreign currency translation loss (7,887) (16,364)
Change in fair value of cash flow hedges, net of tax 2,734 (706)
Other comprehensive loss, net of tax (5,153) (17,070)
Comprehensive income, net of tax $ 6,214 $ 4,450
v3.22.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Cash flows from operating activities:    
Net income $ 11,367 $ 21,520
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 22,542 20,294
Debt related charges included in interest expense 481 1,372
Inventory step-up amortization 798 0
Stock-based compensation 4,995 4,704
Non-cash lease expense 2,539 2,004
Non-cash loss on equity investments 2,404 1,335
Other non-cash losses 1,328 45
Deferred income taxes (709) (242)
Changes in operating assets and liabilities:    
Accounts receivable (15,998) (9,373)
Inventories (20,153) (5,157)
Prepaid expenses and other assets (458) (189)
Contract assets (1,754) (4,677)
Accounts payable 14,997 11,434
Accrued expenses and other liabilities (5,851) (7,887)
Income taxes 1,633 1,246
Net cash provided by operating activities 18,161 36,429
Cash flows from investing activities:    
Acquisition of property, plant and equipment (10,863) (7,660)
Proceeds from sale of property, plant and equipment 465 15
Net cash used in investing activities (10,398) (7,645)
Cash flows from financing activities:    
Principal payments of term loans (3,813) (45,375)
Proceeds from revolving credit facility 15,000 0
Payments of revolving credit facility (10,000) 0
Proceeds from the exercise of stock options 0 116
Payment of debt issuance costs 0 (72)
Tax withholdings related to net share settlements of restricted stock unit awards (1,556) (2,601)
Contingent consideration payments (493) (1,621)
Principal payments on finance leases (166) (9)
Net cash used in financing activities (1,028) (49,562)
Effect of foreign currency exchange rates on cash and cash equivalents 1,048 (26)
Net increase (decrease) in cash and cash equivalents 7,783 (20,804)
Cash and cash equivalents, beginning of period 17,885 49,206
Cash and cash equivalents, end of period $ 25,668 $ 28,402
v3.22.1
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common stock and additional paid-in capital
Retained earnings
Accumulated other comprehensive income
Balance, beginning of period at Dec. 31, 2020 $ 1,271,055 $ 700,847 $ 517,516 $ 52,692
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock awards exercised or vested   (2,485)    
Stock-based compensation   4,704    
Net income 21,520   21,520  
Other comprehensive loss (17,070)     (17,070)
Balance, ending balance at Apr. 02, 2021 1,277,724 703,066 539,036 35,622
Balance, beginning of period at Dec. 31, 2021 1,354,697 713,183 614,324 27,190
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock awards exercised or vested   (1,556)    
Stock-based compensation   4,995    
Net income 11,367   11,367  
Other comprehensive loss (5,153)     (5,153)
Balance, ending balance at Apr. 01, 2022 $ 1,364,350 $ 716,622 $ 625,691 $ 22,037
v3.22.1
Basis of Presentation
 3 Months Ended
Apr. 01, 2022
Accounting Policies [Abstract]  
BASIS OF PRESENTATION BASIS OF PRESENTATION
Integer Holdings Corporation (together with its consolidated subsidiaries, “Integer” or the “Company”) is a publicly-traded corporation listed on the New York Stock Exchange under the symbol “ITGR.” Integer is a medical device outsource manufacturer serving the cardiac, neuromodulation, vascular, orthopedics, advanced surgical and portable medical markets. The Company provides innovative, high-quality medical technologies that enhance the lives of patients worldwide. In addition, it develops batteries for high-end niche applications in the energy, military, and environmental markets.
The accompanying condensed consolidated financial statements are presented in accordance with the rules and regulations of the United States ("U.S.") Securities and Exchange Commission ("SEC") and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in the Company’s Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. The results for interim periods are not necessarily indicative of results or trends that may be expected for the fiscal year as a whole. The condensed consolidated financial statements were prepared using U.S. GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates.
The first quarters of 2022 and 2021 ended on April 1 and April 2, respectively, and consisted of 91 days and 92 days, respectively.
Reclassifications
Certain prior period amounts have been reclassified to conform to current year presentation. Refer to Note 14, “Segment Information,” for a description of the changes made to the Company’s prior period product line sales classification to reflect the current year presentation. Refer to Note 5, “Goodwill and Other Intangibles, Net,” for a description of the changes made to the Company’s prior period definite-lived asset classification to reflect the current year presentation.
Risks and Uncertainties
Beginning in early March 2020, the global spread of the novel coronavirus (“COVID-19”) created significant uncertainty and worldwide economic disruption. Specific impacts to the Company’s business included and continue to include labor shortages, disruptions in the supply chain, delayed or reduced customer orders and sales, restrictions on associates’ ability to travel or work, and delays in shipments to and from certain countries. The Company is uncertain of the future impact of the ongoing COVID-19 pandemic or recovery of prior deterioration in economic conditions to its sales channels, supply chain, manufacturing, and distribution. Additionally, the current conflict between Russia and Ukraine and the related sanctions and other penalties imposed by countries across the globe against Russia are creating substantial uncertainty in the global economy. While the Company does not have operations in Russia or Ukraine and does not have significant direct exposure to customers and vendors in those countries, it is unable to predict the impact that these actions will have on the global economy or on the Company’s financial condition, results of operations, and cash flows as of the date of these financial statements.
Recent Accounting Pronouncements
The Company considers the applicability and impact of all Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). The Company evaluated all recent accounting pronouncements issued, including those that are currently effective, and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company. There have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, that are of significance, or potential significance, to the Company.
v3.22.1
Business Acquisitions
 3 Months Ended
Apr. 01, 2022
Business Combination and Asset Acquisition [Abstract]  
BUSINESS ACQUISITIONS BUSINESS ACQUISITIONS
2021 Acquisition
On December 1, 2021, the Company acquired 100% of the equity interests of Oscor Inc., Oscor Caribe, LLC and Oscor Europe GmbH (collectively “Oscor”), privately-held companies with operations in Florida, the Dominican Republic and Germany that design, develop, manufacture and market a comprehensive portfolio of highly specialized medical devices, venous access systems and diagnostic catheters and implantable devices for a cash purchase price of $220.4 million, of which $2.6 million is net cash acquired subject to payment in connection with working capital and other closing adjustments. Serving the Company’s current markets, Oscor broadens the Company’s product portfolio, expands its research and development capabilities, and adds low-cost manufacturing capacity. The Company used proceeds from its Senior Secured Credit Facilities to fund the acquisition. Oscor is included in the Company’s Medical segment. The goodwill is primarily associated with future customer relationships and an acquired assembled work force.
The Company has provisionally estimated fair values for the assets purchased, liabilities assumed and purchase consideration as of the date of the acquisition. The determination of estimated fair value required management to make significant estimates and assumptions based on information that was available at the time the consolidated financial statements were prepared. The Company recorded the preliminary purchase price allocation in the fourth quarter of 2021. During the first quarter of 2022, the Company recorded measurement period adjustment resulting in an increase to goodwill of $2.9 million which consisted of a $1.0 million decrease in inventory and a $1.9 million increase in current liabilities. The preliminary purchase price allocation remains subject to working capital adjustments. As a result, the allocation of the provisional purchase price may change in the future.
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed (in thousands):
Fair value of net assets acquired
Current assets (excluding inventory)$12,148 
Inventory11,270 
Property, plant and equipment17,977 
Goodwill80,778 
Intangible assets105,300 
Operating lease assets15,142 
Other noncurrent assets695 
Current liabilities(10,824)
Operating lease liabilities(12,044)
Fair value of net assets acquired$220,442 
Actual and Pro Forma (unaudited) disclosures
For segment reporting purposes, the results of operations and assets from the Oscor have been included in the Company’s Medical segment since the acquisition date. For the three months ended April 1, 2022, sales related to Oscor were $19.0 million. Earnings related to the operations of Oscor for the three months ended April 1, 2022 were not material.
Pro forma results of operations for the three months ended April 2, 2021, assuming the acquisition of Oscor occurred as of the beginning of fiscal year 2020, are presented in the following table (in thousands). The pro forma results include the historical results of operations of the Company and Oscor, as well as adjustments for additional amortization of the assets acquired, additional interest expense related to the financing of the transaction and other transactional adjustments. The pro forma results do not include efficiencies, cost reductions or synergies expected to result from the acquisition. These pro forma results do not purport to be indicative of the results that would have been obtained, or to be a projection of results that may be obtained in the future.
Sales$304,101 
Net income19,936 
(2.)    BUSINESS ACQUISITIONS (Continued)
Acquisition costs
During the three months ended April 1, 2022, direct costs of this acquisition of $0.4 million were expensed as incurred and included in Restructuring and other charges in the Condensed Consolidated Statements of Operations and Comprehensive Income.
v3.22.1
Supplemental Cash Flow Information
 3 Months Ended
Apr. 01, 2022
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION
The following is supplemental information relating to the Condensed Consolidated Statements of Cash Flows (in thousands):
Three Months Ended
April 1,
2022		April 2,
2021
Noncash investing and financing activities:
Property, plant and equipment purchases included in accounts payable$3,688 $2,981 
Supplemental lease disclosures:
Assets acquired under operating leases7,914 7,414 
v3.22.1
Inventories
 3 Months Ended
Apr. 01, 2022
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Inventories comprise the following (in thousands):
April 1,
2022		December 31,
2021
Raw materials$75,749 $70,956 
Work-in-process84,586 74,152 
Finished goods12,978 10,591 
Total$173,313 $155,699 
v3.22.1
Goodwill and Other Intangible Assets, Net
 3 Months Ended
Apr. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND OTHER INTANGIBLE ASSETS, NET GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
The changes in the carrying amount of goodwill by reportable segment for the three months ended April 1, 2022 were as follows (in thousands):
MedicalNon- MedicalTotal
December 31, 2021$907,704 $17,000 $924,704 
Acquisitions and related adjustments (Note 2)2,891 — 2,891 
Foreign currency translation(4,001)— (4,001)
April 1, 2022$906,594 $17,000 $923,594 
Intangible Assets
The Company reclassified purchased tradenames with a net carrying value of $16.2 million from Purchased technology and patents as of December 31, 2021 to Amortizing tradenames and other to conform to the current period presentation. The Company made this reclassification to better align with the classification of amortization expense for similar assets. Intangible assets comprise the following (in thousands):
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
April 1, 2022
Definite-lived:
Purchased technology and patents$268,350 $(167,423)$100,927 
Customer lists779,412 (194,174)585,238 
Amortizing tradenames and other20,447 (4,505)15,942 
Total amortizing intangible assets$1,068,209 $(366,102)$702,107 
Indefinite-lived:
Trademarks and tradenames$90,288 
December 31, 2021
Definite-lived:
Purchased technology and patents$269,359 $(164,298)$105,061 
Customer lists783,618 (187,412)596,206 
Amortizing tradenames and other20,462 (4,207)16,255 
Total amortizing intangible assets$1,073,439 $(355,917)$717,522 
Indefinite-lived:
Trademarks and tradenames$90,288 
Aggregate intangible asset amortization expense comprises the following (in thousands):
 Three Months Ended
 April 1,
2022		April 2,
2021
Cost of sales$3,645 $3,268 
Selling, general and administrative expenses7,959 7,182 
Total intangible asset amortization expense$11,604 $10,450 
Estimated future intangible asset amortization expense based on the carrying value as of April 1, 2022 is as follows (in thousands):
Remainder of 20222023202420252026After 2026
Amortization Expense$34,782 48,257 47,349 45,724 43,397 482,598 
v3.22.1
Debt
 3 Months Ended
Apr. 01, 2022
Debt Disclosure [Abstract]  
DEBT DEBT
The Company has senior secured credit facilities (the “Senior Secured Credit Facilities”), which consist of a five-year $400 million revolving credit facility (the “Revolving Credit Facility”), a five-year “term A” loan (the “TLA Facility”) and a seven-year “term B” loan (the “TLB Facility” and, together with the TLA Facility, the “Term Loan Facilities”). The TLB Facility was issued at a 0.50% discount.
Long-term debt related to the Senior Secured Credit Facilities as of April 1, 2022 and December 31, 2021, respectively, comprises the following (in thousands):
 April 1,
2022		December 31,
2021
Senior secured term loan A$464,125 $467,062 
Senior secured term loan B348,250 349,125 
Senior secured revolving credit facility24,300 19,300 
Unamortized discount on term loan B and deferred debt issuance costs(7,043)(7,361)
Total debt829,632 828,126 
Current portion of long-term debt(15,250)(15,250)
Total long-term debt$814,382 $812,876 
Revolving Credit Facility
The Revolving Credit Facility matures on September 2, 2026 and includes a $40 million sublimit for swingline loans and standby letters of credit. As of April 1, 2022, the Company had available borrowing capacity on the Revolving Credit Facility of $370.2 million after giving effect to $24.3 million of outstanding borrowings and $5.5 million of outstanding standby letters of credit.
Interest rates on the Revolving Credit Facility are at the Company’s option, either at: (i) the applicable LIBOR (or an applicable benchmark replacement) plus the applicable margin, which will range between 1.25% and 2.25%, based on the Company’s Total Net Leverage Ratio (as defined in the Senior Secured Credit Facilities agreement), or (ii) the Base Rate (as defined below) plus the applicable margin, which will range between 0.25% and 1.25%, based on the Company’s Total Net Leverage Ratio. The Base Rate is defined, for any day, as the per annum rate equal to the highest of (i) the prime rate (as defined in the Senior Secured Credit Facilities agreement), (ii) the Federal Funds Rate, as published by the Federal Reserve Bank of New York, plus 0.50%, and (iii) one-month LIBOR plus 1.00%. As of April 1, 2022, the interest rate on outstanding borrowings under the Revolving Credit Facility was 1.96%.
The Company is required to pay a commitment fee on the unused portion of the Revolving Credit Facility, which will range between 0.15% and 0.25%, depending on the Company’s Total Net Leverage Ratio. As of April 1, 2022, the commitment fee on the unused portion of the Revolving Credit Facility was 0.15%.
Term Loan Facilities
The TLA Facility and TLB Facility mature on September 2, 2026 and September 2, 2028, respectively, and require quarterly installments. The quarterly principal installments under the TLA Facility increase over the term of the loan. The interest rate terms for the TLA Facility are the same as those outlined above for the Revolving Credit Facility. Interest rates on the TLB Facility are, at the Company’s option, either at: (i) the applicable LIBOR rate plus 2.50%, with LIBOR subject to a 0.50% floor, or (ii) the Base Rate plus 1.50%. As of April 1, 2022, the interest rates on the TLA Facility and TLB Facility were 1.96% and 3.00%, respectively.
Covenants
The Senior Secured Credit Facilities agreement contains customary terms and conditions, including representations and warranties and affirmative and negative covenants, as well as financial covenants for the benefit of the lenders under the Revolving Credit Facility and the TLA Facility, which require that (i) the Company maintain a Total Net Leverage Ratio not to exceed 5.50:1.00 (stepping down to 5.00:1.00 for the third fiscal quarter of 2023 through maturity and subject to increase in certain circumstances following qualified acquisitions, but shall not exceed 5.50:1.00) and (ii) the Company maintain an interest coverage ratio of at least 2.50:1.00. The TLB Facility does not contain any financial maintenance covenants. As of April 1, 2022, the Company was in compliance with these financial covenants.
(6.)     DEBT (Continued)
Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2022 and through maturity, excluding any discounts or premiums, as of April 1, 2022 are as follows (in thousands):
Remainder of 20222023202420252026After 2026
Future minimum principal payments$11,438 18,187 29,938 38,750 406,737 331,625 
v3.22.1
Stock-Based Compensation
 3 Months Ended
Apr. 01, 2022
Share-based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
The Company maintains certain stock-based compensation plans that were approved by the Company’s stockholders and are administered by the Board of Directors (the “Board”) or the Compensation and Organization Committee of the Board. The stock-based compensation plans provide for the granting of stock options, restricted stock awards, restricted stock units (“RSUs”), stock appreciation rights and stock bonuses to employees, non-employee directors, consultants, and service providers.
Stock-based Compensation Expense
The components and classification of stock-based compensation expense were as follows (in thousands):
 Three Months Ended
 April 1,
2022		April 2,
2021
RSUs and PRSUs$4,995 $4,704 
Total stock-based compensation expense$4,995 $4,704 
Cost of sales$769 $1,114 
Selling, general and administrative3,545 3,355 
Research, development and engineering325 235 
Restructuring and other charges356 — 
Total stock-based compensation expense$4,995 $4,704 
Stock Options
The following table summarizes the Company’s stock option activity for the three month period ended April 1, 2022:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life
(In Years)		Aggregate
Intrinsic
Value
(In Millions)
Outstanding at December 31, 2021247,640 $38.03 
No activity— — 
Outstanding and exercisable at April 1, 2022247,640 $38.03 3.9$11.0 
(7.)     STOCK-BASED COMPENSATION (Continued)
Restricted Stock Units
During the three months ended April 1, 2022, the Company awarded grants of either time-based RSUs or a mix of time-based RSUs and performance-based RSUs (“PRSUs”) to certain members of its management. Most time-based RSUs granted during the three months ended April 1, 2022 vest over a period of three years from the grant date, subject to the recipient’s continuous service to the Company. The grant-date fair value of all time-based RSUs is equal to the closing market price of Integer common stock on the date of grant.
The following table summarizes time-vested RSU activity for the three month period ended April 1, 2022:
Time-Vested
Activity		Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021248,131 $81.14 
Granted133,995 79.76 
Vested(60,814)78.49 
Forfeited(9,613)78.98 
Nonvested at April 1, 2022311,699 $81.13 
For the Company’s PRSUs, in addition to service conditions, the ultimate number of shares to be earned depends on the achievement of market-based performance conditions. The market-based performance conditions are based on the Company’s achievement of a relative total shareholder return (“TSR”) performance requirement, on a percentile basis, compared to a defined group of peer companies over three year performance periods, or contingent upon achieving specified stock price milestones over a five year performance period.
The following table summarizes PRSU activity for the three month period ended April 1, 2022:
Performance-
Vested
Activity		Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021198,869 $92.07 
Granted131,393 90.84 
Forfeited(51,375)99.62 
Nonvested at April 1, 2022278,887 $90.10 
The Company uses a Monte Carlo simulation model to determine the grant-date fair value of awards with market-based performance conditions. The grant-date fair value of all other PRSUs is equal to the closing market price of Integer common stock on the date of grant.
The weighted average fair value and assumptions used to value the PRSU awards granted with market-based performance conditions are as follows:
 Three Months Ended
 April 1,
2022		April 2,
2021
Weighted average fair value$97.58 $85.16 
Risk-free interest rate1.58 %0.19 %
Expected volatility42 %41 %
Expected life (in years)3.93.0
Expected dividend yield— %— %
The valuation of the market-based PRSUs granted during 2022 and 2021 also reflects a weighted average illiquidity discount of 9.25% and 8.19%, respectively, related to the six-month period that recipients are restricted from selling, transferring, pledging or assigning the underlying shares, in the event of vesting.
v3.22.1
Restructuring and Other Charges
 3 Months Ended
Apr. 01, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES
The Company continuously evaluates the business and identifies opportunities to realign its resources to better serve its customers and markets, improve operational efficiency and capabilities, and lower its operating costs or improve profitability. To realize the benefits associated with these opportunities, the Company undertakes restructuring-type activities to transform its business. The Company incurs costs associated with these activities, which primarily include exit and disposal costs and other costs directly related to the restructuring initiative. The Company records exit and disposal costs (“restructuring charges”) as incurred in accordance with ASC 420, Exit or Disposal Cost Obligations, and are classified within Restructuring and other charges, while other costs directly related to the restructuring initiatives (“restructuring-related charges”) are classified within Cost of sales, Selling, general and administrative, and Research, development and engineering expenses in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
In addition, from time to time, the Company incurs costs associated with acquiring and integrating businesses, and certain other general expenses, including asset impairments. The Company classifies costs associated with these items within Restructuring and other charges in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income.
Restructuring and other charges comprise the following (in thousands):
 Three Months Ended
 April 1,
2022		April 2,
2021
Restructuring charges$1,103 $654 
Acquisition and integration costs
1,936 84 
Other general expenses296 177 
Total restructuring and other charges
$3,335 $915 
Restructuring programs
The following table comprises restructuring and restructuring-related charges by income statement classification for the three month period ended April 1, 2022 (in thousands):
Restructuring charges:
Restructuring and other charges
$1,103 
Restructuring-related expenses(a):
Cost of sales155 
Selling, general and administrative318 
Research, development and engineering177 
Total restructuring and restructuring-related charges
$1,753 
__________
(a) Restructuring-related expenses primarily include retention bonuses and manufacturing transfer charges. Restructuring related expense for the three month period ended April 2, 2021 were not material.
Operational excellence initiatives
The Company’s operational excellence (“OE”) initiatives mainly consist of costs associated with executing on its sales force, manufacturing, business process and performance excellence operational strategic imperatives. These projects focus on changing the Company’s organizational structure to match product line growth strategies and customer needs, transitioning its manufacturing process into a competitive advantage and standardizing and optimizing its business processes.
2022 OE Initiatives - Costs related to the Company’s 2022 OE initiatives are primarily recorded within the Medical segment or unallocated operating expenses and mainly include termination benefits. The Company estimates that it will incur aggregate pre-tax charges in connection with the 2022 OE initiatives of between approximately $3 million to $5 million, the majority of which are expected to be cash expenditures. As of April 1, 2022, total restructuring and restructuring-related charges incurred since inception were $0.4 million. These actions are expected to be substantially complete by the end of 2023.
(8.)     RESTRUCTURING AND OTHER CHARGES (Continued)
2021 OE Initiatives - Costs related to the Company’s 2021 OE initiatives are primarily recorded within the Medical segment or unallocated operating expenses and mainly include termination benefits. The Company estimates that it will incur aggregate pre-tax charges in connection with the 2021 OE initiatives of between approximately $4 million to $5 million, the majority of which are expected to be cash expenditures. As of April 1, 2022, total restructuring and restructuring-related charges incurred since inception were $3.9 million. These actions are expected to be substantially complete by the end of 2022.
Strategic reorganization and alignment
The Company’s strategic reorganization and alignment (“SRA”) initiatives primarily include those that align resources with market conditions and the Company’s strategic direction in order to enhance the profitability of its portfolio of products.
2021 SRA Initiatives - During the fourth quarter of 2021, the Company initiated plans to exit certain markets served in our Medical segment to enhance profitability and reallocate manufacturing capacity needed to support our overall growth plans. The Company estimates that it will incur a range of pre-tax charges in connection with the 2021 SRA initiatives of approximately $5 million and $8 million, the majority of which are expected to be cash expenditures. Costs related to the Company’s 2021 SRA Initiatives are primarily recorded within the Medical segment and mainly include termination benefits. As of April 1, 2022, total restructuring and restructuring-related charges incurred since inception were $1.4 million. These actions are expected to be completed by the end of 2025.
The following table summarizes the activity for restructuring reserves (in thousands):
Operational
excellence
initiatives		Strategic reorganization and alignmentTotal
December 31, 2021$298 $134 $432 
Charges incurred, net of reversals647 456 1,103 
Cash payments(657)(34)(691)
April 1, 2022$288 $556 $844 
Acquisition and integration
Acquisition and integration costs primarily consist of professional fees and other costs related to business acquisitions. During the three months ended April 1, 2022, acquisition and integration costs included $1.9 million of expenses primarily related to the acquisitions of Oscor and Aran.
Other general expenses
During the three months ended April 1, 2022 and April 2, 2021, the Company recorded expenses related to other initiatives not described above, which relate primarily to integration and operational initiatives to reduce future costs and improve efficiencies.
v3.22.1
Income Taxes
 3 Months Ended
Apr. 01, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate.
The Company’s effective tax rate for the first quarter of 2022 was 18.5% on $13.9 million of income before taxes compared to 13.8% on $25.0 million of income before taxes for the same period in 2021. The difference between the Company’s effective tax rates and the U.S. federal statutory income tax rate of 21% for the first quarter of 2022 and 2021 is due principally to the net impact of the Company’s earnings outside the U.S., which are generally taxed at rates that differ from the U.S federal rate, the Global Intangible Low-Taxed Income (“GILTI”) tax, the Foreign Derived Intangible Income (“FDII”) deduction, the availability of tax credits, and the recognition of certain discrete tax items. The Company recorded a discrete tax expense of $0.5 million for the first quarter of 2022, compared to discrete tax benefits of $0.6 million, for the first quarter of 2021. The discrete tax amounts for both periods are predominately related to excess tax benefits recognized upon vesting of RSUs during those quarters and/or tax shortfalls recorded for the forfeiture of certain PRSUs.
Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts reflected in the financial statements. As of April 1, 2022, the Company had unrecognized tax benefits of approximately $5.7 million, of which approximately $5.6 million would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. As of April 1, 2022, the Company believes the reasonably possible total amount of unrecognized tax benefits that could increase or decrease in the next 12 months as a result of various statute expirations, audit closures, and/or tax settlements would not be material to its consolidated financial statements.
In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures may include deferring the due dates of tax payments or other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The CARES Act provided for deferred payment of the employer portion of social security taxes through the end of 2020. As of April 1, 2022 and December 31, 2021, the Company had a remaining deferred amount of $4.8 million, which the Company expects to pay within the next twelve months. The deferred payroll taxes are included within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets.
v3.22.1
Commitments and Contingencies
 3 Months Ended
Apr. 01, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Contingent Consideration Arrangements
The Company records contingent consideration liabilities related to the earn-out provisions for certain acquisitions. See Note 13 “Financial Instruments and Fair Value Measurements” for additional information.
Litigation
The Company is subject to litigation arising from time to time in the ordinary course of its business. The Company does not expect that the ultimate resolution of any pending legal actions will have a material effect on its consolidated results of operations, financial position, or cash flows. However, litigation is subject to inherent uncertainties. As such, there can be no assurance that any pending legal action, which the Company currently believes to be immaterial, will not become material in the future.
Product Warranties
The Company generally warrants that its products will meet customer specifications and will be free from defects in materials and workmanship. The product warranty liability is presented within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets. The change in product warranty liability comprised the following (in thousands):
December 31, 2021$509 
Additions to warranty reserve, net of reversals(20)
Adjustments to pre-existing warranties (111)
April 1, 2022$378 
v3.22.1
Earnings Per Share (“EPS”)
 3 Months Ended
Apr. 01, 2022
Earnings Per Share [Abstract]  
EARNINGS PER SHARE (“EPS”) EARNINGS PER SHARE (“EPS”)
The following table sets forth a reconciliation of the information used in computing basic and diluted EPS (in thousands, except per share amounts):
 Three Months Ended
April 1,
2022		April 2,
2021
Numerator for basic and diluted EPS:
Net income$11,367 $21,520 
Denominator for basic and diluted EPS:
Weighted average shares outstanding - Basic33,091 32,957 
Dilutive effect of share-based awards211 231 
Weighted average shares outstanding - Diluted33,302 33,188 
Basic EPS$0.34 $0.65 
Diluted EPS$0.34 $0.65 
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Time-vested RSUs3 10 
PRSUs166 64 
v3.22.1
Stockholders' Equity
 3 Months Ended
Apr. 01, 2022
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
Common Stock
The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the three month periods ended April 1, 2022 and April 2, 2021:
Three Months Ended
April 1,
2022		April 2,
2021
Shares outstanding at beginning of period33,063,336 32,908,178 
Stock options exercised— 4,229 
Vesting of RSUs, net of shares withheld to cover taxes38,831 62,295 
Shares outstanding at end of period33,102,167 32,974,702 
Accumulated Other Comprehensive Income
Accumulated other comprehensive income comprises the following (in thousands):
Defined
Benefit
Plan
Liability		Cash
Flow
Hedges		Foreign
Currency
Translation
Adjustment		Total
Pre-Tax
Amount		TaxNet-of-Tax
Amount
December 31, 2021$(890)$(2,291)$29,720 $26,539 $651 $27,190 
Unrealized gain on cash flow hedges— 2,856 — 2,856 (600)2,256 
Realized gain on foreign currency hedges— (162)— (162)34 (128)
Realized loss on interest rate swap hedge— 767 — 767 (161)606 
Foreign currency translation loss— — (7,887)(7,887)— (7,887)
April 1, 2022$(890)$1,170 $21,833 $22,113 $(76)$22,037 
December 31, 2020$(1,095)$(4,956)$57,546 $51,495 $1,197 $52,692 
Unrealized loss on cash flow hedges— (1,269)— (1,269)266 (1,003)
Realized gain on foreign currency hedges— (659)— (659)139 (520)
Realized loss on interest rate swap hedges— 1,034 — 1,034 (217)817 
Foreign currency translation loss— — (16,364)(16,364)— (16,364)
April 2, 2021$(1,095)$(5,850)$41,182 $34,237 $1,385 $35,622 
v3.22.1
Financial Instruments and Fair Value Measurements
 3 Months Ended
Apr. 01, 2022
Fair Value Disclosures [Abstract]  
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair value measurement standards apply to certain financial assets and liabilities that are measured at fair value on a recurring basis (each reporting period). For the Company, these financial assets and liabilities include its derivative instruments and contingent consideration. The Company does not have any nonfinancial assets or liabilities that are measured at fair value on a recurring basis.
The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency exchange rates, and uses derivatives to manage these exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes. All derivatives are recorded at fair value on the Condensed Consolidated Balance Sheets.
The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands):
Fair ValueQuoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
April 1, 2022
Assets: Foreign currency hedging contracts$1,887 $— $1,887 $— 
Liabilities: Foreign currency hedging contracts330 — 330 — 
Liabilities: Interest rate swap387 — 387 — 
Liabilities: Contingent consideration1,976 — — 1,976 
December 31, 2021
Assets: Foreign currency hedging contracts$687 $— $687 $— 
Liabilities: Interest rate swap2,978 — 2,978 — 
Liabilities: Contingent consideration2,415 — — 2,415 
Derivatives Designated as Hedging Instruments
Interest Rate Swaps
The Company periodically enters into interest rate swap agreements in order to reduce the cash flow risk caused by interest rate changes on its outstanding floating rate borrowings. Under these swap agreements, the Company pays a fixed rate of interest and receives a floating rate equal to one-month LIBOR. The variable rate received from the swap agreements and the variable rate paid on the outstanding debt will have the same rate of interest, excluding the credit spread, and will reset and pay interest on the same date. The Company has designated these swap agreements as cash flow hedges based on concluding the hedged forecasted transaction is probable of occurring within the period the cash flow hedge is anticipated to affect earnings.
Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands):
Notional AmountStart DateEnd
Date		Pay Fixed RateReceive Current Floating RateFair ValueBalance Sheet Location
$150,000 Jun 2020Jun 20232.1785 %0.4470 %$(387)Other long-term liabilities
Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands):
Notional AmountStart DateEnd
Date		Pay Fixed RateReceive Current Floating RateFair ValueBalance Sheet Location
$150,000 Jun 2020Jun 20232.1785 %0.1013 %$(2,978)Other long-term liabilities
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Foreign Currency Contracts
The Company periodically enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate fluctuations in its international operations. The Company has designated these foreign currency forward contracts as cash flow hedges.
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands):
Notional AmountEnd
Date		$/Foreign CurrencyFair ValueBalance Sheet Location
$16,516 Dec 20220.0459MXN Peso$1,141 Prepaid expenses and other current assets
10,231 Dec 20221.1368Euro(220)Accrued expenses and other current liabilities
6,543 Dec 20220.0218UYU Peso746 Prepaid expenses and other current assets
10,121 Dec 20221.1245Euro(110)Accrued expenses and other current liabilities
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands):
Notional AmountEnd
Date		$/Foreign CurrencyFair ValueBalance Sheet Location
$22,201 Dec 20220.0463MXN Peso$408 Prepaid expenses and other current assets
17,017 Dec 20221.1344Euro130 Prepaid expenses and other current assets
9,020 Dec 20220.0220UYU Peso149 Prepaid expenses and other current assets
The following tables present the effect of cash flow hedge derivative instruments on other comprehensive income (loss) (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2022 and April 2, 2021 (in thousands):
Three Months Ended
April 1, 2022April 2, 2021
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$310,912 $(54)$290,467 $8 
Cost of sales229,437 192 205,981 624 
Operating expenses58,978 24 49,878 27 
Interest expense5,968 (767)8,532 (1,034)
Unrealized Gain (Loss) Recognized in OCIRealized Gain (Loss) Reclassified from AOCI
Three Months EndedLocation in Statements of Operations and Comprehensive IncomeThree Months Ended
April 1,
2022		April 2,
2021		April 1,
2022		April 2,
2021
Interest rate swap$1,824 $266 Interest expense$(767)$(1,034)
Foreign exchange contracts(514)(886)Sales(54)8 
Foreign exchange contracts1,269 (559)Cost of sales192 624 
Foreign exchange contracts277 (90)Operating expenses24 27 
The Company expects to reclassify net losses totaling $0.9 million related to its cash flow hedges from AOCI into earnings during the next twelve months.
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Derivatives Not Designated as Hedging Instruments
The Company also has foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. To minimize foreign currency exposure, the Company enters into foreign currency contracts with a one month maturity. At April 1, 2022, the Company had one contract outstanding, with a notional amount of $8.0 million and a fair value of $0.1 million. At December 31, 2021, the Company had one contract outstanding, with a notional amount of $15.0 million and a fair value of $(0.1) million. The Company recorded a net gain on foreign currency contracts not designated as hedging instruments of $0.3 million for the three months ended April 1, 2022, which is included in Other (income) loss, net in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in Other (income) loss, net. The Company did not have foreign currency contracts not designated as hedging instruments outstanding during the three months ended April 2, 2021.
Contingent Consideration
The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 1, 2022 and April 2, 2021 (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Fair value measurement at beginning of period$2,415 $3,900 
Fair value measurement adjustment54 — 
Payments
(493)(1,621)
Foreign currency translation— 2 
Fair value measurement at end of period$1,976 $2,281 
On February 19, 2020, the Company acquired certain assets and liabilities of InoMec Ltd. (“InoMec”), a privately-held company based in Israel that specializes in the research, development and manufacturing of medical devices, including minimally invasive tools, delivery systems, tubing and catheters, surgery tools, drug-device combination, laser combined devices, and tooling and production. On October 7, 2019, the Company acquired certain assets and liabilities of US BioDesign, LLC (“USB”), a privately-held developer and manufacturer of complex braided biomedical structures for disposable and implantable medical devices. The contingent consideration at April 1, 2022 is the estimated fair value of the Company’s obligations, under the asset purchase agreements for InoMec and USB, to make additional payments if certain revenue goals are met.
During 2022, the Company made a $0.5 million payment associated with the USB acquisition, resulting from achievement of revenue-based goals for the period from January 1, 2021 to December 31, 2021 for USB. During 2021, the Company made payments associated with the InoMec and USB acquisitions, resulting from achievement of revenue-based goals for the period from March 1, 2020 to February 28, 2021 for InoMec and January 1, 2020 to December 31, 2020 for USB.
As of April 1, 2022 and December 31, 2021, the current portion of contingent consideration liabilities included in Accrued expenses and other current liabilities was $1.3 million and $0.9 million, respectively, and the non-current portion included in Other long-term liabilities on the Condensed Consolidated Balance Sheets was $0.7 million and $1.5 million, respectively.
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:
April 1, 2022
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments$5,375 $1,976 Monte CarloRevenue volatility26.7 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
December 31, 2021
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments$6,750 $2,415 Monte CarloRevenue volatility29.0 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Fair value standards also apply to certain assets and liabilities that are measured at fair value on a nonrecurring basis. The carrying amounts of cash, accounts receivable, accounts payable, and accrued expenses approximate fair value because of the short-term nature of these items.
Borrowings under the Company’s Revolving Credit Facility, TLA Facility and TLB Facility accrue interest at a floating rate tied to a standard short-term borrowing index, selected at the Company’s option, plus an applicable margin. The carrying amount of this floating rate debt approximates fair value based upon the respective interest rates adjusting with market rate adjustments.
Equity Investments
The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other long-term assets on the Condensed Consolidated Balance Sheets.
Equity investments comprise the following (in thousands):
April 1,
2022		December 31,
2021
Equity method investment$13,788 $16,192 
Non-marketable equity securities5,637 5,637 
Total equity investments
$19,425 $21,829 
The components of Loss on equity investments for each period were as follows (in thousands):
Three Months Ended
April 1,
2022		April 2,
2021
Equity method investment loss$2,404 $1,335 
The Company’s equity method investment is in a venture capital fund focused on investing in life sciences companies. As of April 1, 2022, the Company owned 6.8% of this fund.
v3.22.1
Segment Information
 3 Months Ended
Apr. 01, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company organizes its business into two reportable segments: (1) Medical and (2) Non-Medical. This segment structure reflects the financial information and reports used by the Company’s management, specifically its Chief Operating Decision Maker, to make decisions regarding the Company’s business, including resource allocations and performance assessments. This segment structure reflects the Company’s current operating focus in compliance with ASC 280, Segment Reporting. For purposes of segment reporting, intercompany sales between segments are not material.
The Company has communicated to certain customers that it is exiting certain markets it serves in the Advanced Surgical, Orthopedics & Portable Medical product line. In order to align with the planned exit of those markets and better align to its end markets and product line strategies, the Company recast its product line sales within the Medical segment to reflect the reclassification of certain products from the historical product lines to the product lines associated with those revenues that will be utilized for future revenue reporting. The Company believes the revised presentation will provide improved reporting and better transparency into the operational results of its business and markets. The Company has reclassified the prior year information in the table below to conform to the current year presentation. For the three months ended April 2, 2021, Cardio & Vascular sales of $8.0 million and Advanced Surgical, Orthopedics & Portable Medical sales of $5.3 million were reclassified to the Cardiac Rhythm Management & Neuromodulation product line.
The following table presents sales by product line (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Segment sales by product line:
Medical
Cardio & Vascular$159,037 $141,206 
Cardiac Rhythm Management & Neuromodulation
123,324 121,703 
Advanced Surgical, Orthopedics & Portable Medical19,666 20,056 
Total Medical302,027 282,965 
Non-Medical8,885 7,502 
Total sales$310,912 $290,467 
The following table presents income for the Company’s reportable segments (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Segment income:
Medical$44,148 $55,525 
Non-Medical665 2 
Total segment income44,813 55,527 
Unallocated operating expenses
(22,316)(20,919)
Operating income22,497 34,608 
Unallocated expenses, net(8,549)(9,630)
Income before taxes$13,948 $24,978 
v3.22.1
Revenue From Contracts With Customers
 3 Months Ended
Apr. 01, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregated Revenue
In general, the Company’s business segmentation is aligned according to the nature and economic characteristics of its products and customer relationships and provides meaningful disaggregation of each business segment’s results of operations. For a summary by disaggregated product line sales for each segment, refer to Note 14, “Segment Information.”
Revenue recognized from products and services transferred to customers over time represented 31% and 29%, respectively, for the three months ended April 1, 2022 and April 2, 2021. Substantially all of the revenue recognized from products and services transferred to customers over time during the periods presented was within the Medical segment.
The following tables present revenues by significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues.
Three Months Ended
April 1, 2022April 2, 2021
CustomerMedicalNon-Medical MedicalNon-Medical
Customer A18%*22%*
Customer B18%*13%*
Customer C14%*17%*
Customer D*33%*26%
All other customers50%67%48%74%
__________
* Less than 10% of segment’s total revenues for the period.
The following tables present revenues by significant ship to location, which is defined as any country where 10% or more of a segment’s total revenues are shipped.
Three Months Ended
April 1, 2022April 2, 2021
Ship to LocationMedicalNon-Medical MedicalNon-Medical
United States54%63%53%69%
United Kingdom*10%*10%
Canada***11%
All other countries46%27%47%10%
__________
* Less than 10% of segment’s total revenues for the period.
Contract Balances
The opening and closing balances of the Company’s contract assets and contract liabilities are as follows (in thousands):
April 1,
2022		December 31,
2021
Contract assets$66,343 $64,743 
Contract liabilities7,016 3,776 
During the three months ended April 1, 2022, the Company recognized $0.9 million of revenue that was included in the contract liability balance as of December 31, 2021. During the three months ended April 2, 2021, the Company recognized $0.9 million of revenue that was included in the contract liability balance as of December 31, 2020.
v3.22.1
Subsequent Event
 3 Months Ended
Apr. 01, 2022
Subsequent Events [Abstract]  
Subsequent Event SUBSEQUENT EVENT
On April 6, 2022, the Company acquired Connemara Biomedical Holdings Teoranta, including its operating subsidiaries Aran Biomedical and Proxy Biomedical (collectively “Aran”) in an all cash transaction for €120 million (approximately $131 million at the exchange rate as of April 6, 2022), subject to customary working capital and other adjustments, with up to €10 million (approximately $11 million at the exchange rate as of April 6, 2022) of contingent consideration payable based on Aran’s achievement of 2022 revenue growth milestones. The Company funded the purchase price with borrowings under its Revolving Credit Facility.
A recognized leader in proprietary medical textiles, high precision biomaterial coverings and coatings as well as advanced metal and polymer braiding, Aran delivers development and manufacturing solutions for implantable medical devices. Consistent with the Company’s strategy, the combination with Aran further increases Integer’s ability to offer complete solutions for complex delivery and therapeutic devices in high growth cardiovascular markets such as structural heart, neurovascular, peripheral vascular, and endovascular as well as general surgery.
For segment reporting purposes, the results of operations and assets from this acquisition will be included in the Company’s Medical segment. During the three months ended April 1, 2022, direct costs of this acquisition of $0.9 million were expensed as incurred and included in Restructuring and other charges in the Condensed Consolidated Statements of Operations and Comprehensive Income. In addition to assets acquired and liabilities assumed, the Company expects to allocate the purchase price to identifiable intangible assets such as developed technology and customer relationships. The Company expects to determine the preliminary purchase price allocation prior to the end of the second quarter of 2022.
v3.22.1
Basis of Presentation (Policies)
 3 Months Ended
Apr. 01, 2022
Accounting Policies [Abstract]  
Interim Basis of Accounting In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the results of the Company for the periods presented. The results for interim periods are not necessarily indicative of results or trends that may be expected for the fiscal year as a whole. The condensed consolidated financial statements were prepared using U.S. GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, certain components of equity, sales, expenses, and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ materially from these estimates.
Reclassifications ReclassificationsCertain prior period amounts have been reclassified to conform to current year presentation. Refer to Note 14, “Segment Information,” for a description of the changes made to the Company’s prior period product line sales classification to reflect the current year presentation.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
The Company considers the applicability and impact of all Accounting Standard Updates (“ASU”) issued by the Financial Accounting Standards Board (“FASB”). The Company evaluated all recent accounting pronouncements issued, including those that are currently effective, and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company. There have been no new or material changes to the significant accounting policies discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, that are of significance, or potential significance, to the Company.
Income Taxes The income tax provision for interim periods is determined using an estimate of the annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the estimate of the annual effective tax rate is updated, and if the estimated effective tax rate changes, a cumulative adjustment is made. There is a potential for volatility of the effective tax rate due to several factors, including discrete items, changes in the mix and amount of pre-tax income and the jurisdictions to which it relates, changes in tax laws and foreign tax holidays, business reorganizations, settlements with taxing authorities and foreign currency fluctuations. In addition, the Company continues to explore tax planning opportunities that may have a material impact on its effective tax rate.
Equity Investments
Equity Investments
The Company holds long-term, strategic investments in companies to promote business and strategic objectives. These investments are included in Other long-term assets on the Condensed Consolidated Balance Sheets.
v3.22.1
Business Acquisitions (Tables)
 3 Months Ended
Apr. 01, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of Final Allocation of Purchase Consideration
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed (in thousands):
Fair value of net assets acquired
Current assets (excluding inventory)$12,148 
Inventory11,270 
Property, plant and equipment17,977 
Goodwill80,778 
Intangible assets105,300 
Operating lease assets15,142 
Other noncurrent assets695 
Current liabilities(10,824)
Operating lease liabilities(12,044)
Fair value of net assets acquired$220,442 
Schedule of Business Acquisition, Pro Forma Information These pro forma results do not purport to be indicative of the results that would have been obtained, or to be a projection of results that may be obtained in the future.
Sales$304,101 
Net income19,936 
v3.22.1
Supplemental Cash Flow Information (Tables)
 3 Months Ended
Apr. 01, 2022
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash Flow, Supplemental Disclosures
The following is supplemental information relating to the Condensed Consolidated Statements of Cash Flows (in thousands):
Three Months Ended
April 1,
2022		April 2,
2021
Noncash investing and financing activities:
Property, plant and equipment purchases included in accounts payable$3,688 $2,981 
Supplemental lease disclosures:
Assets acquired under operating leases7,914 7,414 
v3.22.1
Inventories (Tables)
 3 Months Ended
Apr. 01, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventory
Inventories comprise the following (in thousands):
April 1,
2022		December 31,
2021
Raw materials$75,749 $70,956 
Work-in-process84,586 74,152 
Finished goods12,978 10,591 
Total$173,313 $155,699 
v3.22.1
Goodwill and Other Intangible Assets, Net (Tables)
 3 Months Ended
Apr. 01, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in the carrying amount of goodwill by reportable segment for the three months ended April 1, 2022 were as follows (in thousands):
MedicalNon- MedicalTotal
December 31, 2021$907,704 $17,000 $924,704 
Acquisitions and related adjustments (Note 2)2,891 — 2,891 
Foreign currency translation(4,001)— (4,001)
April 1, 2022$906,594 $17,000 $923,594 
Schedule of Finite-Lived Intangible Assets, Major Class Intangible assets comprise the following (in thousands):
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
April 1, 2022
Definite-lived:
Purchased technology and patents$268,350 $(167,423)$100,927 
Customer lists779,412 (194,174)585,238 
Amortizing tradenames and other20,447 (4,505)15,942 
Total amortizing intangible assets$1,068,209 $(366,102)$702,107 
Indefinite-lived:
Trademarks and tradenames$90,288 
December 31, 2021
Definite-lived:
Purchased technology and patents$269,359 $(164,298)$105,061 
Customer lists783,618 (187,412)596,206 
Amortizing tradenames and other20,462 (4,207)16,255 
Total amortizing intangible assets$1,073,439 $(355,917)$717,522 
Indefinite-lived:
Trademarks and tradenames$90,288 
Schedule of Indefinite-Lived Intangible Assets Intangible assets comprise the following (in thousands):
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
April 1, 2022
Definite-lived:
Purchased technology and patents$268,350 $(167,423)$100,927 
Customer lists779,412 (194,174)585,238 
Amortizing tradenames and other20,447 (4,505)15,942 
Total amortizing intangible assets$1,068,209 $(366,102)$702,107 
Indefinite-lived:
Trademarks and tradenames$90,288 
December 31, 2021
Definite-lived:
Purchased technology and patents$269,359 $(164,298)$105,061 
Customer lists783,618 (187,412)596,206 
Amortizing tradenames and other20,462 (4,207)16,255 
Total amortizing intangible assets$1,073,439 $(355,917)$717,522 
Indefinite-lived:
Trademarks and tradenames$90,288 
Schedule of Finite-Lived Intangible Assets, Amortization Expense
Aggregate intangible asset amortization expense comprises the following (in thousands):
 Three Months Ended
 April 1,
2022		April 2,
2021
Cost of sales$3,645 $3,268 
Selling, general and administrative expenses7,959 7,182 
Total intangible asset amortization expense$11,604 $10,450 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Estimated future intangible asset amortization expense based on the carrying value as of April 1, 2022 is as follows (in thousands):
Remainder of 20222023202420252026After 2026
Amortization Expense$34,782 48,257 47,349 45,724 43,397 482,598 
v3.22.1
Debt (Tables)
 3 Months Ended
Apr. 01, 2022
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt related to the Senior Secured Credit Facilities as of April 1, 2022 and December 31, 2021, respectively, comprises the following (in thousands):
 April 1,
2022		December 31,
2021
Senior secured term loan A$464,125 $467,062 
Senior secured term loan B348,250 349,125 
Senior secured revolving credit facility24,300 19,300 
Unamortized discount on term loan B and deferred debt issuance costs(7,043)(7,361)
Total debt829,632 828,126 
Current portion of long-term debt(15,250)(15,250)
Total long-term debt$814,382 $812,876 
Schedule of Maturities of Long-term Debt
Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2022 and through maturity, excluding any discounts or premiums, as of April 1, 2022 are as follows (in thousands):
Remainder of 20222023202420252026After 2026
Future minimum principal payments$11,438 18,187 29,938 38,750 406,737 331,625 
v3.22.1
Stock-Based Compensation (Tables)
 3 Months Ended
Apr. 01, 2022
Share-based Payment Arrangement [Abstract]  
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The components and classification of stock-based compensation expense were as follows (in thousands):
 Three Months Ended
 April 1,
2022		April 2,
2021
RSUs and PRSUs$4,995 $4,704 
Total stock-based compensation expense$4,995 $4,704 
Cost of sales$769 $1,114 
Selling, general and administrative3,545 3,355 
Research, development and engineering325 235 
Restructuring and other charges356 — 
Total stock-based compensation expense$4,995 $4,704 
Schedule of Share-based Compensation, Stock Options Activity
The following table summarizes the Company’s stock option activity for the three month period ended April 1, 2022:
Number of
Stock
Options		Weighted
Average
Exercise
Price		Weighted
Average
Remaining
Contractual
Life
(In Years)		Aggregate
Intrinsic
Value
(In Millions)
Outstanding at December 31, 2021247,640 $38.03 
No activity— — 
Outstanding and exercisable at April 1, 2022247,640 $38.03 3.9$11.0 
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
The following table summarizes time-vested RSU activity for the three month period ended April 1, 2022:
Time-Vested
Activity		Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021248,131 $81.14 
Granted133,995 79.76 
Vested(60,814)78.49 
Forfeited(9,613)78.98 
Nonvested at April 1, 2022311,699 $81.13 
The following table summarizes PRSU activity for the three month period ended April 1, 2022:
Performance-
Vested
Activity		Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021198,869 $92.07 
Granted131,393 90.84 
Forfeited(51,375)99.62 
Nonvested at April 1, 2022278,887 $90.10 
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
The weighted average fair value and assumptions used to value the PRSU awards granted with market-based performance conditions are as follows:
 Three Months Ended
 April 1,
2022		April 2,
2021
Weighted average fair value$97.58 $85.16 
Risk-free interest rate1.58 %0.19 %
Expected volatility42 %41 %
Expected life (in years)3.93.0
Expected dividend yield— %— %
v3.22.1
Restructuring and Other Charges (Tables)
 3 Months Ended
Apr. 01, 2022
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Charges
Restructuring and other charges comprise the following (in thousands):
 Three Months Ended
 April 1,
2022		April 2,
2021
Restructuring charges$1,103 $654 
Acquisition and integration costs
1,936 84 
Other general expenses296 177 
Total restructuring and other charges
$3,335 $915 
The following table comprises restructuring and restructuring-related charges by income statement classification for the three month period ended April 1, 2022 (in thousands):
Restructuring charges:
Restructuring and other charges
$1,103 
Restructuring-related expenses(a):
Cost of sales155 
Selling, general and administrative318 
Research, development and engineering177 
Total restructuring and restructuring-related charges
$1,753 
__________
(a) Restructuring-related expenses primarily include retention bonuses and manufacturing transfer charges. Restructuring related expense for the three month period ended April 2, 2021 were not material.
Schedule of Changes in Restructuring Reserves
The following table summarizes the activity for restructuring reserves (in thousands):
Operational
excellence
initiatives		Strategic reorganization and alignmentTotal
December 31, 2021$298 $134 $432 
Charges incurred, net of reversals647 456 1,103 
Cash payments(657)(34)(691)
April 1, 2022$288 $556 $844 
v3.22.1
Commitments and Contingencies (Tables)
 3 Months Ended
Apr. 01, 2022
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Product Warranty Liability The change in product warranty liability comprised the following (in thousands):
December 31, 2021$509 
Additions to warranty reserve, net of reversals(20)
Adjustments to pre-existing warranties (111)
April 1, 2022$378 
v3.22.1
Earnings Per Share (“EPS”) (Tables)
 3 Months Ended
Apr. 01, 2022
Earnings Per Share [Abstract]  
Schedule of Calculation of Numerator and Denominator in Earnings Per Share
The following table sets forth a reconciliation of the information used in computing basic and diluted EPS (in thousands, except per share amounts):
 Three Months Ended
April 1,
2022		April 2,
2021
Numerator for basic and diluted EPS:
Net income$11,367 $21,520 
Denominator for basic and diluted EPS:
Weighted average shares outstanding - Basic33,091 32,957 
Dilutive effect of share-based awards211 231 
Weighted average shares outstanding - Diluted33,302 33,188 
Basic EPS$0.34 $0.65 
Diluted EPS$0.34 $0.65 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Time-vested RSUs3 10 
PRSUs166 64 
v3.22.1
Stockholders' Equity (Tables)
 3 Months Ended
Apr. 01, 2022
Equity [Abstract]  
Schedule of Common Stock Outstanding Roll Forward
The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the three month periods ended April 1, 2022 and April 2, 2021:
Three Months Ended
April 1,
2022		April 2,
2021
Shares outstanding at beginning of period33,063,336 32,908,178 
Stock options exercised— 4,229 
Vesting of RSUs, net of shares withheld to cover taxes38,831 62,295 
Shares outstanding at end of period33,102,167 32,974,702 
Schedule of Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income comprises the following (in thousands):
Defined
Benefit
Plan
Liability		Cash
Flow
Hedges		Foreign
Currency
Translation
Adjustment		Total
Pre-Tax
Amount		TaxNet-of-Tax
Amount
December 31, 2021$(890)$(2,291)$29,720 $26,539 $651 $27,190 
Unrealized gain on cash flow hedges— 2,856 — 2,856 (600)2,256 
Realized gain on foreign currency hedges— (162)— (162)34 (128)
Realized loss on interest rate swap hedge— 767 — 767 (161)606 
Foreign currency translation loss— — (7,887)(7,887)— (7,887)
April 1, 2022$(890)$1,170 $21,833 $22,113 $(76)$22,037 
December 31, 2020$(1,095)$(4,956)$57,546 $51,495 $1,197 $52,692 
Unrealized loss on cash flow hedges— (1,269)— (1,269)266 (1,003)
Realized gain on foreign currency hedges— (659)— (659)139 (520)
Realized loss on interest rate swap hedges— 1,034 — 1,034 (217)817 
Foreign currency translation loss— — (16,364)(16,364)— (16,364)
April 2, 2021$(1,095)$(5,850)$41,182 $34,237 $1,385 $35,622 
v3.22.1
Financial Instruments and Fair Value Measurements (Tables)
 3 Months Ended
Apr. 01, 2022
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following tables provide information regarding assets and liabilities recorded at fair value on a recurring basis (in thousands):
Fair ValueQuoted
Prices in
Active
Markets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
April 1, 2022
Assets: Foreign currency hedging contracts$1,887 $— $1,887 $— 
Liabilities: Foreign currency hedging contracts330 — 330 — 
Liabilities: Interest rate swap387 — 387 — 
Liabilities: Contingent consideration1,976 — — 1,976 
December 31, 2021
Assets: Foreign currency hedging contracts$687 $— $687 $— 
Liabilities: Interest rate swap2,978 — 2,978 — 
Liabilities: Contingent consideration2,415 — — 2,415 
Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands):
Notional AmountStart DateEnd
Date		Pay Fixed RateReceive Current Floating RateFair ValueBalance Sheet Location
$150,000 Jun 2020Jun 20232.1785 %0.4470 %$(387)Other long-term liabilities
Information regarding the Company’s outstanding interest rate swap designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands):
Notional AmountStart DateEnd
Date		Pay Fixed RateReceive Current Floating RateFair ValueBalance Sheet Location
$150,000 Jun 2020Jun 20232.1785 %0.1013 %$(2,978)Other long-term liabilities
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of April 1, 2022 is as follows (dollars in thousands):
Notional AmountEnd
Date		$/Foreign CurrencyFair ValueBalance Sheet Location
$16,516 Dec 20220.0459MXN Peso$1,141 Prepaid expenses and other current assets
10,231 Dec 20221.1368Euro(220)Accrued expenses and other current liabilities
6,543 Dec 20220.0218UYU Peso746 Prepaid expenses and other current assets
10,121 Dec 20221.1245Euro(110)Accrued expenses and other current liabilities
Information regarding outstanding foreign currency forward contracts designated as cash flow hedges as of December 31, 2021 is as follows (dollars in thousands):
Notional AmountEnd
Date		$/Foreign CurrencyFair ValueBalance Sheet Location
$22,201 Dec 20220.0463MXN Peso$408 Prepaid expenses and other current assets
17,017 Dec 20221.1344Euro130 Prepaid expenses and other current assets
9,020 Dec 20220.0220UYU Peso149 Prepaid expenses and other current assets
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)
The following tables present the effect of cash flow hedge derivative instruments on other comprehensive income (loss) (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income for the three months ended April 1, 2022 and April 2, 2021 (in thousands):
Three Months Ended
April 1, 2022April 2, 2021
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$310,912 $(54)$290,467 $8 
Cost of sales229,437 192 205,981 624 
Operating expenses58,978 24 49,878 27 
Interest expense5,968 (767)8,532 (1,034)
Unrealized Gain (Loss) Recognized in OCIRealized Gain (Loss) Reclassified from AOCI
Three Months EndedLocation in Statements of Operations and Comprehensive IncomeThree Months Ended
April 1,
2022		April 2,
2021		April 1,
2022		April 2,
2021
Interest rate swap$1,824 $266 Interest expense$(767)$(1,034)
Foreign exchange contracts(514)(886)Sales(54)8 
Foreign exchange contracts1,269 (559)Cost of sales192 624 
Foreign exchange contracts277 (90)Operating expenses24 27 
Schedule of Estimated Fair Values for Contingent Consideration
The following table presents the changes in the estimated fair values of the Company’s liabilities for contingent consideration measured using significant unobservable inputs (Level 3) for the three months ended April 1, 2022 and April 2, 2021 (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Fair value measurement at beginning of period$2,415 $3,900 
Fair value measurement adjustment54 — 
Payments
(493)(1,621)
Foreign currency translation— 2 
Fair value measurement at end of period$1,976 $2,281 
Schedule of Contingent Consideration Measurement Inputs
The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:
April 1, 2022
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments$5,375 $1,976 Monte CarloRevenue volatility26.7 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
December 31, 2021
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments$6,750 $2,415 Monte CarloRevenue volatility29.0 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
Schedule of Equity Method Investments
Equity investments comprise the following (in thousands):
April 1,
2022		December 31,
2021
Equity method investment$13,788 $16,192 
Non-marketable equity securities5,637 5,637 
Total equity investments
$19,425 $21,829 
The components of Loss on equity investments for each period were as follows (in thousands):
Three Months Ended
April 1,
2022		April 2,
2021
Equity method investment loss$2,404 $1,335 
v3.22.1
Segment Information (Tables)
 3 Months Ended
Apr. 01, 2022
Segment Reporting [Abstract]  
Schedule of Reconciliation of Revenue from Segments to Consolidated
The following table presents sales by product line (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Segment sales by product line:
Medical
Cardio & Vascular$159,037 $141,206 
Cardiac Rhythm Management & Neuromodulation
123,324 121,703 
Advanced Surgical, Orthopedics & Portable Medical19,666 20,056 
Total Medical302,027 282,965 
Non-Medical8,885 7,502 
Total sales$310,912 $290,467 
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The following table presents income for the Company’s reportable segments (in thousands):
 Three Months Ended
April 1,
2022		April 2,
2021
Segment income:
Medical$44,148 $55,525 
Non-Medical665 2 
Total segment income44,813 55,527 
Unallocated operating expenses
(22,316)(20,919)
Operating income22,497 34,608 
Unallocated expenses, net(8,549)(9,630)
Income before taxes$13,948 $24,978 
v3.22.1
Revenue From Contracts With Customers (Tables)
 3 Months Ended
Apr. 01, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments
The following tables present revenues by significant customers, which are defined as any customer who individually represents 10% or more of a segment’s total revenues.
Three Months Ended
April 1, 2022April 2, 2021
CustomerMedicalNon-Medical MedicalNon-Medical
Customer A18%*22%*
Customer B18%*13%*
Customer C14%*17%*
Customer D*33%*26%
All other customers50%67%48%74%
__________
* Less than 10% of segment’s total revenues for the period.
Schedule of Revenue by Ship To Location
The following tables present revenues by significant ship to location, which is defined as any country where 10% or more of a segment’s total revenues are shipped.
Three Months Ended
April 1, 2022April 2, 2021
Ship to LocationMedicalNon-Medical MedicalNon-Medical
United States54%63%53%69%
United Kingdom*10%*10%
Canada***11%
All other countries46%27%47%10%
__________
* Less than 10% of segment’s total revenues for the period.
Schedule of Contract with Customer, Asset and Liability
The opening and closing balances of the Company’s contract assets and contract liabilities are as follows (in thousands):
April 1,
2022		December 31,
2021
Contract assets$66,343 $64,743 
Contract liabilities7,016 3,776 
v3.22.1
Business Acquisitions (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Dec. 01, 2021
Apr. 01, 2022
Apr. 02, 2021
Business Acquisition [Line Items]        
Goodwill accounting adjustment     $ 2,891  
Total sales     310,912 $ 290,467
Oscor Inc        
Business Acquisition [Line Items]        
Percentage of voting interests acquired   100.00%    
Consideration transferred   $ 220,400    
Cash acquired from acquisition   $ 2,600    
Goodwill accounting adjustment     2,900  
Decrease in inventory     1,000  
Adjustment in current liabilities     $ 1,900  
Total sales $ 19,000      
Acquisition related costs $ 400      
v3.22.1
Business Acquisitions (Allocation Of The Provisional Purchase Price ) (Details) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Dec. 01, 2021
Business Acquisition [Line Items]      
Goodwill $ 923,594 $ 924,704  
Oscor Inc      
Business Acquisition [Line Items]      
Current assets (excluding inventory)     $ 12,148
Inventory     11,270
Property, plant and equipment     17,977
Goodwill     80,778
Intangible assets     105,300
Operating lease assets     15,142
Other noncurrent assets     695
Current liabilities     (10,824)
Operating lease liabilities     (12,044)
Fair value of net assets acquired     $ 220,442
v3.22.1
Business Acquisitions (Pro Forma Information) (Details) - Oscor Inc
$ in Thousands
Apr. 01, 2022
USD ($)
Business Combination, Separately Recognized Transactions [Line Items]  
Sales $ 304,101
Net income $ 19,936
v3.22.1
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Noncash investing and financing activities:    
Property, plant and equipment purchases included in accounts payable $ 3,688 $ 2,981
Supplemental lease disclosures:    
Assets acquired under operating leases $ 7,914 $ 7,414
v3.22.1
Inventories (Details) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials $ 75,749 $ 70,956
Work-in-process 84,586 74,152
Finished goods 12,978 10,591
Total $ 173,313 $ 155,699
v3.22.1
Goodwill and Other Intangible Assets, Net (Schedule of Goodwill) (Details)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
USD ($)
Goodwill [Roll Forward]  
Opening goodwill $ 924,704
Acquisitions and related adjustments (Note 2) 2,891
Foreign currency translation (4,001)
Closing goodwill 923,594
Medical  
Goodwill [Roll Forward]  
Opening goodwill 907,704
Acquisitions and related adjustments (Note 2) 2,891
Foreign currency translation (4,001)
Closing goodwill 906,594
Non-Medical  
Goodwill [Roll Forward]  
Opening goodwill 17,000
Acquisitions and related adjustments (Note 2) 0
Foreign currency translation 0
Closing goodwill $ 17,000
v3.22.1
Goodwill and Other Intangible Assets, Net (Intangible Assets Narrative) (Details) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Indefinite-lived Intangible Assets [Line Items]    
Finite-lived intangible asset $ 702,107 $ 717,522
Purchased technology and patents | Revision of Prior Period, Adjustment    
Indefinite-lived Intangible Assets [Line Items]    
Finite-lived intangible asset   (16,200)
Amortizing tradenames and other | Revision of Prior Period, Adjustment    
Indefinite-lived Intangible Assets [Line Items]    
Finite-lived intangible asset   $ 16,200
v3.22.1
Goodwill and Other Intangible Assets, Net (Schedule of Definite-Lived and Indefinite-Lived Intangible Assets, Major Class) (Details) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,068,209 $ 1,073,439
Accumulated Amortization (366,102) (355,917)
Net Carrying Amount 702,107 717,522
Trademarks and tradenames    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived 90,288 90,288
Purchased technology and patents    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 268,350 269,359
Accumulated Amortization (167,423) (164,298)
Net Carrying Amount 100,927 105,061
Customer lists    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 779,412 783,618
Accumulated Amortization (194,174) (187,412)
Net Carrying Amount 585,238 596,206
Amortizing tradenames and other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 20,447 20,462
Accumulated Amortization (4,505) (4,207)
Net Carrying Amount $ 15,942 $ 16,255
v3.22.1
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Amortization Expense) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Finite-Lived Intangible Assets [Line Items]    
Total intangible asset amortization expense $ 11,604 $ 10,450
Cost of sales    
Finite-Lived Intangible Assets [Line Items]    
Total intangible asset amortization expense 3,645 3,268
Selling, general and administrative expenses    
Finite-Lived Intangible Assets [Line Items]    
Total intangible asset amortization expense $ 7,959 $ 7,182
v3.22.1
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details)
$ in Thousands
Apr. 01, 2022
USD ($)
Amortization Expense  
Remainder of 2022 $ 34,782
2023 48,257
2024 47,349
2025 45,724
2026 43,397
After 2026 $ 482,598
v3.22.1
Debt (Narrative) (Details)
 3 Months Ended 12 Months Ended
Sep. 02, 2021
USD ($)
Apr. 01, 2022
USD ($)
Dec. 31, 2021
Secured Debt | Senior secured term loan A      
Debt Instrument [Line Items]      
Debt instrument term   5 years  
Debt weighted average interest rate   1.96%  
Secured Debt | Senior secured term loan B      
Debt Instrument [Line Items]      
Debt instrument term   7 years  
Discount percentage   0.50%  
Debt weighted average interest rate   3.00%  
Secured Debt | Senior secured term loan B | London Interbank Offered Rate One- Month (LIBOR)      
Debt Instrument [Line Items]      
Variable rate basis spread 2.50%    
Interest rate floor 0.50%    
Secured Debt | Senior secured term loan B | Base rate      
Debt Instrument [Line Items]      
Variable rate basis spread 1.50%    
Revolving Credit Facility      
Debt Instrument [Line Items]      
Debt weighted average interest rate   1.96%  
Revolving Credit Facility | Line of Credit      
Debt Instrument [Line Items]      
Debt instrument term   5 years  
Remaining borrowing capacity $ 370,200,000    
Outstanding amount $ 24,300,000    
Commitment fee on unused portion   0.15%  
Revolving Credit Facility | Line of Credit | Minimum      
Debt Instrument [Line Items]      
Commitment fee on unused portion 0.15%    
Revolving Credit Facility | Line of Credit | Maximum      
Debt Instrument [Line Items]      
Commitment fee on unused portion 0.25%    
Revolving Credit Facility | Line of Credit | London Interbank Offered Rate One- Month (LIBOR) | Minimum      
Debt Instrument [Line Items]      
Variable rate basis spread 1.25%    
Revolving Credit Facility | Line of Credit | London Interbank Offered Rate One- Month (LIBOR) | Maximum      
Debt Instrument [Line Items]      
Variable rate basis spread 2.25%    
Revolving Credit Facility | Line of Credit | Senior secured term loan A      
Debt Instrument [Line Items]      
Credit facility maximum borrowing capacity   $ 400,000,000  
Revolving Credit Facility | Line of Credit | Senior secured term loan A | London Interbank Offered Rate One- Month (LIBOR)      
Debt Instrument [Line Items]      
Variable rate basis spread 1.00%    
Revolving Credit Facility | Line of Credit | Senior secured term loan A | Base rate | Minimum      
Debt Instrument [Line Items]      
Variable rate basis spread 0.25%    
Revolving Credit Facility | Line of Credit | Senior secured term loan A | Base rate | Maximum      
Debt Instrument [Line Items]      
Variable rate basis spread 1.25%    
Revolving Credit Facility | Line of Credit | Senior secured term loan A | Federal funds rate      
Debt Instrument [Line Items]      
Variable rate basis spread 0.50%    
Revolving Credit Facility | Secured Debt | Senior secured term loan A      
Debt Instrument [Line Items]      
Interest expense ratio   2.50  
Revolving Credit Facility | Secured Debt | Senior secured term loan A | Through Maturity      
Debt Instrument [Line Items]      
Net leverage ratio incremental increase option     5.50
Revolving Credit Facility | Secured Debt | Senior secured term loan A | Third Fiscal Quarter of 2023      
Debt Instrument [Line Items]      
Net leverage ratio incremental increase option     5.00
Swingline loans | Line of Credit      
Debt Instrument [Line Items]      
Credit facility maximum borrowing capacity $ 40,000,000    
Standby Letters of Credit      
Debt Instrument [Line Items]      
Letters of credit outstanding amount $ 5,500,000    
v3.22.1
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Unamortized discount on term loan B and deferred debt issuance costs $ (7,043) $ (7,361)
Total debt 829,632 828,126
Current portion of long-term debt (15,250) (15,250)
Total long-term debt 814,382 812,876
Secured Debt | Senior secured term loan A    
Debt Instrument [Line Items]    
Long-term debt, gross 464,125 467,062
Secured Debt | Senior secured term loan B    
Debt Instrument [Line Items]    
Long-term debt, gross 348,250 349,125
Revolving Credit Facility | Line of Credit    
Debt Instrument [Line Items]    
Long-term debt, gross $ 24,300 $ 19,300
v3.22.1
Debt (Long-term Debt Maturity Schedule) (Details)
$ in Thousands
Apr. 01, 2022
USD ($)
Debt Disclosure [Abstract]  
Remainder of 2022 $ 11,438
2023 18,187
2024 29,938
2025 38,750
2026 406,737
After 2026 $ 331,625
v3.22.1
Stock-Based Compensation (Narrative) (Details)
 3 Months Ended
Apr. 01, 2022
Time-vested RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Requisite service period 3 years
PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Requisite service period 3 years
Performance period 5 years
v3.22.1
Stock-Based Compensation (Allocation of Recognized Period Costs) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Share-based payment arrangement, expense $ 4,995 $ 4,704
Cost of sales    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Share-based payment arrangement, expense 769 1,114
Selling, general and administrative    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Share-based payment arrangement, expense 3,545 3,355
Research, development and engineering    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Share-based payment arrangement, expense 325 235
Restructuring and other charges    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Share-based payment arrangement, expense 356 0
RSUs and PRSUs    
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]    
Share-based payment arrangement, expense $ 4,995 $ 4,704
v3.22.1
Stock-Based Compensation (Stock Options Activity) (Details)
$ / shares in Units, $ in Millions
 3 Months Ended
Apr. 01, 2022
USD ($)
$ / shares
shares
Number of Stock Options  
Options outstanding, beginning balance (in shares) | shares 247,640
Options outstanding, ending balance (in shares) | shares 247,640
Options exercisable at period end (in dollars per share) | shares 247,640
Weighted Average Exercise Price  
Options outstanding, beginning (in dollars per share) | $ / shares $ 38.03
Options outstanding, ending (in dollars per share) | $ / shares 38.03
Options exercisable at period end (in dollars per share) | $ / shares $ 38.03
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]  
Options outstanding, weighted average remaining contractual life 3 years 10 months 24 days
Options exercisable, weighted average remaining contractual life 3 years 10 months 24 days
Options outstanding, intrinsic value | $ $ 11.0
Options exercisable, intrinsic value | $ $ 11.0
v3.22.1
Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details)
 3 Months Ended
Apr. 01, 2022
$ / shares
shares
Time-vested RSUs  
Time-Vested and Performance-Vested Activity  
Nonvested, beginning (in shares) | shares 248,131
Granted (in shares) | shares 133,995
Vested (in shares) | shares (60,814)
Forfeited (in shares) | shares (9,613)
Nonvested, ending (in shares) | shares 311,699
Weighted Average Grant Date Fair Value  
Nonvested, beginning (in dollars per share) | $ / shares $ 81.14
Granted (in dollars per share) | $ / shares 79.76
Vested (in dollars per share) | $ / shares 78.49
Forfeited (in dollars per share) | $ / shares 78.98
Nonvested, ending (in dollars per share) | $ / shares $ 81.13
PRSUs  
Time-Vested and Performance-Vested Activity  
Nonvested, beginning (in shares) | shares 198,869
Granted (in shares) | shares 131,393
Forfeited (in shares) | shares (51,375)
Nonvested, ending (in shares) | shares 278,887
Weighted Average Grant Date Fair Value  
Nonvested, beginning (in dollars per share) | $ / shares $ 92.07
Granted (in dollars per share) | $ / shares 90.84
Forfeited (in dollars per share) | $ / shares 99.62
Nonvested, ending (in dollars per share) | $ / shares $ 90.10
v3.22.1
Stock-Based Compensation (Valuation Assumptions) (Details) - PRSUs - $ / shares
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted average fair value (in dollars per share) $ 97.58 $ 85.16
Risk-free interest rate 1.58% 0.19%
Expected volatility 42.00% 41.00%
Expected life (in years) 3 years 10 months 24 days 3 years
Expected dividend yield 0.00% 0.00%
Restriction period 6 months 6 months
Weighted average illiquidity discount 9.25% 8.19%
v3.22.1
Restructuring and Other Charges (Schedule of Restructuring And Other Charges Components) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Restructuring and Related Activities [Abstract]    
Restructuring and other charges $ 1,103 $ 654
Acquisition and integration costs 1,936 84
Other general expenses 296 177
Restructuring and other charges $ 3,335 $ 915
v3.22.1
Restructuring and Other Charges (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Restructuring Cost and Reserve [Line Items]    
Acquisition and integration costs $ 1,936 $ 84
Oscor And Aran Acquisitions    
Restructuring Cost and Reserve [Line Items]    
Acquisition and integration costs 1,900  
Strategic Reorganization And Alignment Initiatives 2021    
Restructuring Cost and Reserve [Line Items]    
Costs incurred since inception 1,400  
Strategic Reorganization And Alignment Initiatives 2021 | Minimum    
Restructuring Cost and Reserve [Line Items]    
Expected costs 5,000  
Strategic Reorganization And Alignment Initiatives 2021 | Maximum    
Restructuring Cost and Reserve [Line Items]    
Expected costs 8,000  
Employee Severance | Operational Excellence Initiatives, 2022 Initiatives    
Restructuring Cost and Reserve [Line Items]    
Costs incurred since inception 400  
Employee Severance | Operational Excellence Initiatives, 2022 Initiatives | Minimum    
Restructuring Cost and Reserve [Line Items]    
Expected costs 3,000  
Employee Severance | Operational Excellence Initiatives, 2022 Initiatives | Maximum    
Restructuring Cost and Reserve [Line Items]    
Expected costs 5,000  
Employee Severance | Operational Excellence Initiatives, 2021 Initiatives    
Restructuring Cost and Reserve [Line Items]    
Costs incurred since inception 3,900  
Employee Severance | Operational Excellence Initiatives, 2021 Initiatives | Minimum    
Restructuring Cost and Reserve [Line Items]    
Expected costs 4,000  
Employee Severance | Operational Excellence Initiatives, 2021 Initiatives | Maximum    
Restructuring Cost and Reserve [Line Items]    
Expected costs $ 5,000  
v3.22.1
Restructuring and Other Charges (Schedule of Restructuring Restructuring-Related Costs) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Restructuring charges:    
Restructuring and other charges $ 1,103 $ 654
Total restructuring and restructuring-related charges 1,753  
Cost of sales    
Restructuring charges:    
Total restructuring and restructuring-related charges 155  
Selling, general and administrative expenses    
Restructuring charges:    
Total restructuring and restructuring-related charges 318  
Research, development and engineering    
Restructuring charges:    
Total restructuring and restructuring-related charges $ 177  
v3.22.1
Restructuring and Other Charges (Schedule of Restructuring Reserve By Type of Cost) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Restructuring Reserve [Roll Forward]    
Beginning balance $ 432  
Charges incurred, net of reversals 1,103 $ 654
Cash payments (691)  
Ending balance 844  
Operational excellence initiatives    
Restructuring Reserve [Roll Forward]    
Beginning balance 298  
Charges incurred, net of reversals 647  
Cash payments (657)  
Ending balance 288  
Strategic reorganization and alignment    
Restructuring Reserve [Roll Forward]    
Beginning balance 134  
Charges incurred, net of reversals 456  
Cash payments (34)  
Ending balance $ 556  
v3.22.1
Income Taxes (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Effective income tax rate 18.50% 13.80%  
Income before provision for income taxes $ 13,948 $ 24,978  
Discrete tax benefits 500 $ 600  
Unrecognized tax benefits 5,700    
Unrecognized tax benefits that would impact effective tax rate 5,600    
Accrued payroll taxes $ 4,800   $ 4,800
v3.22.1
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]  
Balance at beginning of period $ 509
Additions to warranty reserve, net of reversals (20)
Adjustments to pre-existing warranties (111)
Balance at end of period $ 378
v3.22.1
Earnings Per Share (“EPS”) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Numerator for basic and diluted EPS:    
Net income $ 11,367 $ 21,520
Denominator for basic and diluted EPS:    
Weighted average shares outstanding - Basic (in shares) 33,091 32,957
Dilutive effect of share-based awards (in shares) 211 231
Weighted average shares outstanding - Diluted (in shares) 33,302 33,188
Basic EPS (in dollars per share) $ 0.34 $ 0.65
Diluted EPS (in dollars per share) $ 0.34 $ 0.65
Time-vested RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Securities excluded from calculation of earnings per share (in shares) 3 10
PRSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Securities excluded from calculation of earnings per share (in shares) 166 64
v3.22.1
Stockholders' Equity (Shares Issued and Outstanding) (Details) - shares
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Class Of Stock [Roll Forward]    
Shares outstanding beginning balance (in shares) 33,063,336  
Shares outstanding ending balance (in shares) 33,102,167  
Common Stock    
Class Of Stock [Roll Forward]    
Shares outstanding beginning balance (in shares) 33,063,336 32,908,178
Stock options exercised (in shares) 0 4,229
Shares outstanding ending balance (in shares) 33,102,167 32,974,702
Restricted Stock | Common Stock    
Class Of Stock [Roll Forward]    
Vesting of RSUs, net of shares withheld to cover taxes (in shares) 38,831 62,295
v3.22.1
Stockholders' Equity (Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period $ 1,354,697 $ 1,271,055
Reclassification from AOCI, net of tax 2,256 (1,003)
Balance, ending balance 1,364,350 1,277,724
Foreign exchange contracts    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Reclassification from AOCI, net of tax (128) (520)
Interest rate swap    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Reclassification from AOCI, net of tax 606 817
Defined Benefit Plan Liability    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period (890) (1,095)
Balance, ending balance (890) (1,095)
Cash Flow Hedges    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period (2,291) (4,956)
Reclassification from AOCI, before tax 2,856 (1,269)
Reclassification from AOCI, tax (600) 266
Balance, ending balance 1,170 (5,850)
Cash Flow Hedges | Foreign exchange contracts    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Reclassification from AOCI, before tax (162) (659)
Reclassification from AOCI, tax 34 139
Cash Flow Hedges | Interest rate swap    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Reclassification from AOCI, before tax 767 1,034
Reclassification from AOCI, tax (161) (217)
Foreign Currency Translation Adjustment    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period 29,720 57,546
Reclassification from AOCI, before tax (7,887) (16,364)
Reclassification from AOCI, tax 0 0
Reclassification from AOCI, net of tax (7,887) (16,364)
Balance, ending balance 21,833 41,182
Total Pre-Tax Amount    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period 26,539 51,495
Balance, ending balance 22,113 34,237
Tax    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period 651 1,197
Balance, ending balance (76) 1,385
Net-of-Tax Amount    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Balance, beginning of period 27,190 52,692
Balance, ending balance $ 22,037 $ 35,622
v3.22.1
Financial Instruments and Fair Value Measurements (Assets and Liabilities Recorded at Fair Value on a Recurring Basis) (Details) - Fair Value - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Foreign currency hedging contracts $ 1,887 $ 687
Liabilities: Foreign currency hedging contracts 330  
Liabilities: Interest rate swap 387 2,978
Liabilities: Contingent consideration 1,976 2,415
Quoted Prices in Active Markets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Foreign currency hedging contracts 0 0
Liabilities: Foreign currency hedging contracts 0  
Liabilities: Interest rate swap 0 0
Liabilities: Contingent consideration 0 0
Significant Other Observable Inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Foreign currency hedging contracts 1,887 687
Liabilities: Foreign currency hedging contracts 330  
Liabilities: Interest rate swap 387 2,978
Liabilities: Contingent consideration 0 0
Significant Unobservable Inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Foreign currency hedging contracts 0 0
Liabilities: Foreign currency hedging contracts 0  
Liabilities: Interest rate swap 0 0
Liabilities: Contingent consideration $ 1,976 $ 2,415
v3.22.1
Financial Instruments and Fair Value Measurements (Schedule of Interest Rate Swaps) (Details) - Interest Rate Swap Maturing June 2023 - Other long-term liabilities - Designated as Hedging Instrument - USD ($)
Apr. 01, 2022
Dec. 31, 2021
Derivatives, Fair Value [Line Items]    
Notional Amount $ 150,000,000 $ 150,000,000
Pay Fixed Rate 2.1785% 2.1785%
Receive Current Floating Rate 0.447% 0.1013%
Fair Value $ (387,000) $ (2,978,000)
v3.22.1
Financial Instruments and Fair Value Measurements (Schedule of Foreign Currency Contracts) (Details) - Foreign Exchange Contract Maturing December 2021 - Designated as Hedging Instrument
$ in Thousands
Apr. 01, 2022
USD ($)
$ / €
$ / $
$ / $
Dec. 31, 2021
USD ($)
$ / $
$ / $
$ / €
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 16,516  
$/Foreign currency (in dollars per foreign currency) | $ / $ 0.0459  
Fair Value $ 1,141  
Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 10,231  
$/Foreign currency (in dollars per foreign currency) | $ / € 1.1368  
Fair Value $ (220)  
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 6,543  
$/Foreign currency (in dollars per foreign currency) | $ / $ 0.0218  
Fair Value $ 746  
Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 10,121  
$/Foreign currency (in dollars per foreign currency) | $ / € 1.1245  
Fair Value $ (110)  
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 22,201
$/Foreign currency (in dollars per foreign currency) | $ / $   0.0463
Fair Value   $ 408
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 17,017
$/Foreign currency (in dollars per foreign currency) | $ / €   1.1344
Fair Value   $ 130
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 9,020
$/Foreign currency (in dollars per foreign currency) | $ / $   0.0220
Fair Value   $ 149
v3.22.1
Financial Instruments and Fair Value Measurements (Impact of Cash Flow Hedges on Other Comprehensive Income, AOCI and the Condensed Consolidated Statements of Operations) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Total sales $ 310,912 $ 290,467
Cost of sales 229,437 205,981
Operating expenses 58,978 49,878
Interest expense 5,968 8,532
Sales    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain (Loss) on Cash Flow Hedge Activity (54) 8
Sales | Foreign exchange contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain (Loss) Recognized in OCI (514) (886)
Cost of sales    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain (Loss) on Cash Flow Hedge Activity 192 624
Cost of sales | Foreign exchange contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain (Loss) Recognized in OCI 1,269 (559)
Operating expenses    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain (Loss) on Cash Flow Hedge Activity 24 27
Operating expenses | Foreign exchange contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain (Loss) Recognized in OCI 277 (90)
Interest expense    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Amount of Gain (Loss) on Cash Flow Hedge Activity (767) (1,034)
Interest expense | Interest rate swap    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Unrealized Gain (Loss) Recognized in OCI $ 1,824 $ 266
v3.22.1
Financial Instruments and Fair Value Measurements (Narrative) (Details)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
USD ($)
contract
Apr. 02, 2021
USD ($)
Dec. 31, 2021
USD ($)
contract
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Derivative instruments net loss to be reclassified to net income during next twelve months $ 900    
Payments 493 $ 1,621  
USB Acquisition      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Payments 500    
Accrued expenses and other current liabilities      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Contingent consideration liability, current 1,300   $ 900
Other long-term liabilities      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Contingent consideration liability, noncurrent $ 700   1,500
Chinese Venture Capital Fund      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity method investment ownership 6.80%    
Not Designated as Hedging Instrument | Foreign exchange contracts      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
National amount $ 8,000   15,000
Derivative asset, fair value 100   $ 100
Unrealized gain on cash flow hedges, pretax $ 300    
Derivative, Number of Instruments Held | contract 1   1
v3.22.1
Financial Instruments and Fair Value Measurements (Estimated Fair Values for Contingent Consideration) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance at beginning of period $ 2,415 $ 3,900
Fair value measurement adjustment 54 0
Payments (493) (1,621)
Foreign currency translation 0 2
Balance at end of period $ 1,976 $ 2,281
v3.22.1
Financial Instruments and Fair Value Measurements (Contingent Consideration Measurement Inputs) (Details)
$ in Thousands
Apr. 01, 2022
USD ($)
Dec. 31, 2021
USD ($)
InoMec Ltd    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Revenue-based payments, maximum payout (undiscounted) $ 5,375 $ 6,750
Fair Value    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Revenue-based payments, fair value $ 1,976 $ 2,415
Fair Value | Revenue volatility | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Unobservable Inputs 0.267 0.290
Fair Value | Discount rate | Weighted Average    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Unobservable Inputs 0.018 0.018
v3.22.1
Financial Instruments and Fair Value Measurements (Equity Method Investments) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Dec. 31, 2021
Fair Value Disclosures [Abstract]      
Equity method investment $ 13,788   $ 16,192
Non-marketable equity securities 5,637   5,637
Total equity investments 19,425   $ 21,829
Equity method investment loss $ 2,404 $ 1,335  
v3.22.1
Segment Information (Narrative) (Details)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
USD ($)
segment
Apr. 02, 2021
USD ($)
Segment Reporting, Revenue Reconciling Item [Line Items]    
Number of reportable segments | segment 2  
Total sales $ 310,912 $ 290,467
Operating Segments | Medical    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales 302,027 282,965
Cardio & Vascular | Operating Segments | Medical    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales 159,037 141,206
Cardio & Vascular | Operating Segments | Medical | Revision of Prior Period, Adjustment    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales   (8,000)
Advanced Surgical, Orthopedics & Portable Medical | Operating Segments | Medical    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales $ 19,666 20,056
Advanced Surgical, Orthopedics & Portable Medical | Operating Segments | Medical | Revision of Prior Period, Adjustment    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales   $ (5,300)
v3.22.1
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales $ 310,912 $ 290,467
Operating Segments | Medical    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales 302,027 282,965
Operating Segments | Medical | Cardio & Vascular    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales 159,037 141,206
Operating Segments | Medical | Cardiac Rhythm Management & Neuromodulation    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales 123,324 121,703
Operating Segments | Medical | Advanced Surgical, Orthopedics & Portable Medical    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales 19,666 20,056
Operating Segments | Non-Medical    
Segment Reporting, Revenue Reconciling Item [Line Items]    
Total sales $ 8,885 $ 7,502
v3.22.1
Segment Information (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Segment Reporting Information [Line Items]    
Operating income $ 22,497 $ 34,608
Unallocated expenses, net (8,549) (9,630)
Income before taxes 13,948 24,978
Operating Segments    
Segment Reporting Information [Line Items]    
Operating income 44,813 55,527
Operating Segments | Medical    
Segment Reporting Information [Line Items]    
Operating income 44,148 55,525
Operating Segments | Non-Medical    
Segment Reporting Information [Line Items]    
Operating income 665 2
Segment Reconciling Items    
Segment Reporting Information [Line Items]    
Operating income $ (22,316) $ (20,919)
v3.22.1
Revenue From Contracts With Customers (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Concentration Risk [Line Items]    
Revenue recognized that was included in contract liability balance at beginning of period $ 0.9 $ 0.9
Revenue Benchmark | Product Concentration Risk | Transferred over Time    
Concentration Risk [Line Items]    
Concentration risk percentage 31.00% 29.00%
v3.22.1
Revenue From Contracts With Customers (Disaggregated Revenue) (Details) - Revenue from contract with customer benchmark - Customer Concentration Risk
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Medical | Customer A    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 18.00% 22.00%
Medical | Customer B    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 18.00% 13.00%
Medical | Customer C    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 14.00% 17.00%
Medical | All other customers    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 50.00% 48.00%
Non-Medical | Customer D    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 33.00% 26.00%
Non-Medical | All other customers    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 67.00% 74.00%
v3.22.1
Revenue From Contracts With Customers (Schedule of Revenue by Ship To Location) (Details) - Geographic Concentration Risk - Revenue from contract with customer benchmark
 3 Months Ended
Apr. 01, 2022
Apr. 02, 2021
Medical Segment | United States    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 54.00% 53.00%
Medical Segment | All other countries    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 46.00% 47.00%
Non-Medical Segment | United States    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 63.00% 69.00%
Non-Medical Segment | United Kingdom    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 10.00% 10.00%
Non-Medical Segment | Canada    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage   11.00%
Non-Medical Segment | All other countries    
Disaggregation of Revenue [Line Items]    
Concentration risk percentage 27.00% 10.00%
v3.22.1
Revenue From Contracts With Customers Contract with Customer (Assets and Liability) (Details) - USD ($)
$ in Thousands
Apr. 01, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Contract assets $ 66,343 $ 64,743
Contract liabilities $ 7,016 $ 3,776
v3.22.1
Subsequent Event (Details) - Aran Acquisition
€ in Millions, $ in Millions
 3 Months Ended
Apr. 06, 2022
USD ($)
Apr. 06, 2022
EUR (€)
Apr. 01, 2022
USD ($)
Apr. 06, 2022
EUR (€)
Subsequent Event [Line Items]        
Acquisition related costs     $ 0.9  
Subsequent Event        
Subsequent Event [Line Items]        
Consideration transferred $ 131.0 € 120    
Contingent consideration liability, current $ 11.0     € 10