INTEGER HOLDINGS CORP, 10-Q filed on 10/27/2022
Quarterly Report
v3.22.2.2
Cover - shares
9 Months Ended
Sep. 30, 2022
Oct. 21, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 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, $0.001 par value per share  
Trading Symbol ITGR  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   33,130,993
Entity Central Index Key 0001114483  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --12-31  
v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 20,187 $ 17,885
Accounts receivable, net of provision for credit losses of $0.2 million and $0.1 million, respectively 215,982 182,310
Inventories 210,459 155,699
Refundable income taxes 9,725 4,735
Contract assets 71,427 64,743
Prepaid expenses and other current assets 28,837 27,610
Total current assets 556,617 452,982
Property, plant and equipment, net 282,330 277,099
Goodwill 965,118 924,704
Other intangible assets, net 816,001 807,810
Deferred income taxes 6,117 5,711
Operating lease assets 73,023 70,053
Other long-term assets 39,267 43,856
Total assets 2,738,473 2,582,215
Current liabilities:    
Current portion of long-term debt 15,250 15,250
Accounts payable 101,152 76,859
Income taxes payable 1,357 725
Operating lease liabilities 10,601 9,862
Accrued expenses and other current liabilities 70,402 56,933
Total current liabilities 198,762 159,629
Long-term debt 923,396 812,876
Deferred income taxes 176,835 171,505
Operating lease liabilities 62,017 59,767
Other long-term liabilities 22,399 23,741
Total liabilities 1,383,409 1,227,518
Commitments and contingencies (Note 10)
Stockholders’ equity:    
Common stock, $0.001 par value; 100,000,000 shares authorized; 33,130,993 and 33,063,336 shares issued and outstanding, respectively 33 33
Additional paid-in capital 727,050 713,150
Retained earnings 662,584 614,324
Accumulated other comprehensive income (loss) (34,603) 27,190
Total stockholders’ equity 1,355,064 1,354,697
Total liabilities and stockholders’ equity $ 2,738,473 $ 2,582,215
v3.22.2.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2022
Dec. 31, 2021
Current assets:    
Allowance for doubtful accounts $ 0.2 $ 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) 33,130,993 33,063,336
Common stock, shares outstanding (in shares) 33,130,993 33,063,336
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Income Statement [Abstract]        
Sales $ 342,680 $ 305,574 $ 1,003,673 $ 908,064
Cost of sales 255,962 223,702 742,583 652,960
Gross profit 86,718 81,872 261,090 255,104
Operating expenses:        
Selling, general and administrative 38,195 34,269 119,541 105,150
Research, development and engineering 16,123 12,050 47,077 39,249
Restructuring and other charges 3,142 2,463 10,010 3,657
Total operating expenses 57,460 48,782 176,628 148,056
Operating income 29,258 33,090 84,462 107,048
Interest expense 10,676 10,053 24,417 26,117
(Gain) loss on equity investments 2,887 (152) 5,611 1,867
Other (gain) loss, net (1,300) 10 (932) 129
Income before taxes 16,995 23,179 55,366 78,935
Provision for income taxes 938 1,113 7,106 5,916
Net income $ 16,057 $ 22,066 $ 48,260 $ 73,019
Earnings per share:        
Basic (in dollars per share) $ 0.48 $ 0.67 $ 1.46 $ 2.21
Diluted (in dollars per share) $ 0.48 $ 0.66 $ 1.45 $ 2.20
Weighted average shares outstanding:        
Basic (in shares) 33,145 33,008 33,116 32,982
Diluted (in shares) 33,336 33,309 33,329 33,250
Comprehensive Income (Loss)        
Net income $ 16,057 $ 22,066 $ 48,260 $ 73,019
Other comprehensive loss:        
Foreign currency translation loss (29,364) (7,836) (64,525) (21,716)
Change in fair value of cash flow hedges, net of tax 45 57 2,732 196
Other comprehensive loss, net of tax (29,319) (7,779) (61,793) (21,520)
Comprehensive income (loss), net of tax $ (13,262) $ 14,287 $ (13,533) $ 51,499
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Cash flows from operating activities:    
Net income $ 48,260 $ 73,019
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 68,645 60,479
Debt related charges included in interest expense 1,445 6,526
Inventory step-up amortization 798 0
Stock-based compensation 15,973 12,235
Non-cash lease expense 8,179 5,918
Non-cash loss on equity investments 5,611 1,867
Other non-cash losses 3,373 870
Deferred income taxes (969) (242)
Changes in operating assets and liabilities, net of acquisition:    
Accounts receivable (33,496) (21,638)
Inventories (59,036) (838)
Prepaid expenses and other assets (1,255) (599)
Contract assets (7,698) (19,528)
Accounts payable 25,524 16,044
Accrued expenses and other liabilities (6,012) (4,292)
Income taxes (4,563) (12,411)
Net cash provided by operating activities 64,779 117,410
Cash flows from investing activities:    
Acquisition of property, plant and equipment (43,098) (29,711)
Proceeds from sale of property, plant and equipment 636 81
Acquisitions, net (126,636) 0
Net cash used in investing activities (169,098) (29,630)
Cash flows from financing activities:    
Principal payments of term loans (11,437) (737,973)
Proceeds from issuance of term loans 0 598,250
Proceeds from revolving credit facility 160,000 82,300
Payments of revolving credit facility (39,000) (45,000)
Proceeds from the exercise of stock options 0 594
Payment of debt issuance costs 0 (5,436)
Tax withholdings related to net share settlements of restricted stock unit awards (2,073) (3,130)
Contingent consideration payments (493) (1,621)
Principal payments on finance leases (585) (51)
Net cash provided by (used in) financing activities 106,412 (112,067)
Effect of foreign currency exchange rates on cash and cash equivalents 209 553
Net increase (decrease) in cash and cash equivalents 2,302 (23,734)
Cash and cash equivalents, beginning of period 17,885 49,206
Cash and cash equivalents, end of period $ 20,187 $ 25,472
v3.22.2.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($)
$ in Thousands
Total
Common stock and additional paid-in capital
Retained earnings
Accumulated other comprehensive income (loss)
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   (2,536)    
Stock-based compensation   12,235    
Net income 73,019   73,019  
Other comprehensive loss (21,520)     (21,520)
Balance, ending balance at Oct. 01, 2021 1,332,253 710,546 590,535 31,172
Balance, beginning of period at Jul. 02, 2021 1,314,572 707,152 568,469 38,951
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock awards exercised or vested   112    
Stock-based compensation   3,282    
Net income 22,066   22,066  
Other comprehensive loss (7,779)     (7,779)
Balance, ending balance at Oct. 01, 2021 1,332,253 710,546 590,535 31,172
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   (2,073)    
Stock-based compensation   15,973    
Net income 48,260   48,260  
Other comprehensive loss (61,793)     (61,793)
Balance, ending balance at Sep. 30, 2022 1,355,064 727,083 662,584 (34,603)
Balance, beginning of period at Jul. 01, 2022 1,363,451 722,208 646,527 (5,284)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Stock awards exercised or vested   (147)    
Stock-based compensation   5,022    
Net income 16,057   16,057  
Other comprehensive loss (29,319)     (29,319)
Balance, ending balance at Sep. 30, 2022 $ 1,355,064 $ 727,083 $ 662,584 $ (34,603)
v3.22.2.2
Basis of Presentation
9 Months Ended
Sep. 30, 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 third quarter and first nine months of 2022 ended on September 30 and consisted of 91 days and 273 days, respectively. The third quarter and first nine months of 2021 ended on October 1 and consisted of 91 days and 274 days, respectively.
Reclassifications
Certain prior period amounts have been reclassified to conform to 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. 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.
Risks and Uncertainties
Global economic challenges, including the impact of the war in Ukraine, the COVID-19 pandemic, severe and sustained inflation, a rising interest rate environment, fluctuations in global currencies, and supply chain disruptions could cause economic uncertainty and volatility. The impact of these issues on the Company’s operations will vary by geographic market and product line, but specific impacts to our business include increased borrowing costs, 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 monitors economic conditions closely. In response to reductions in revenue, the Company can take actions to align its cost structure with changes in demand and manage its working capital. However, there can be no assurance as to the effectiveness of these efforts to mitigate any impact of the current and future adverse economic conditions and other developments.
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.
v3.22.2.2
Business Acquisitions
9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
BUSINESS ACQUISITIONS BUSINESS ACQUISITIONS
2022 Acquisition
On April 6, 2022, the Company acquired 100% of the equity interests of Connemara Biomedical Holdings Teoranta, including its operating subsidiaries Aran Biomedical and Proxy Biomedical (collectively “Aran”), 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. The Company funded the purchase price with borrowings under its Revolving Credit Facility. Aran is included in the Company’s Medical segment. The total consideration transferred was $141.3 million, which includes an initial cash payment of $133.9 million ($129.3 million net of cash acquired) and $7.4 million in estimated fair value of contingent consideration. The contingent consideration represents the estimated fair value of the Company’s obligation, under the purchase agreement, to make additional payments of up to €10 million ($10.9 million at the exchange rate as of April 6, 2022) based on Aran’s achievement of 2022 revenue growth milestones. The contingent consideration will be paid after completion of the earn-out period ending December 31, 2022, in accordance with the terms of the share purchase agreement. See Note 13 “Financial Instruments and Fair Value Measurements” for additional information related to the fair value measurement of the contingent consideration.
The Company has preliminarily 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 amounts reported are considered preliminary as the Company is completing the valuations that are required to allocate the purchase price in areas such as property and equipment, intangible assets, liabilities and goodwill. As a result, the allocation of the preliminary purchase price may change in the future, which could be material.
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$9,319 
Property, plant and equipment4,151 
Goodwill68,460 
Definite-lived intangible assets71,485 
Operating lease assets3,505 
Other noncurrent assets1,354 
Current liabilities(4,370)
Operating lease liabilities(3,258)
Other noncurrent liabilities(9,377)
Fair value of net assets acquired$141,269 
The goodwill resulting from the transaction is primarily attributable to future customer relationships and the assembled workforce of the acquired business. The goodwill acquired in connection with the Aran acquisition was allocated to the Medical segment and is not deductible for tax purposes.
The breakout of definite-lived intangible assets acquired was as follows (dollars in thousands):
Definite-lived Intangible AssetsFair Value AssignedWeighted Average Amortization Period
(Years)
Weighted Average Discount Rate
Customer lists$53,395 26.09.5%
Technology17,435 12.09.5%
Tradenames655 1.59.5%
$71,485 
(2.)    BUSINESS ACQUISITIONS (Continued)
To determine the acquisition date estimated fair value of intangible assets acquired, the Company applied the income approach, specifically the multi-period excess earnings method for customer lists and the relief-from-royalty method for technology and tradenames. The significant assumptions used in these approaches include revenue growth rates and profit margins, terminal values, weighted-average cost of capital used to discount future cash flows, and a customer attrition rate for customer relationships and royalty rates for technology and tradenames. For additional information, see the Company’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2021 for the methods and assumptions used to estimate the fair value of each class of net assets acquired.
For segment reporting purposes, the results of operations from Aran have been included in the Company’s Medical segment since the acquisition date. Sales and earnings related to the operations of Aran for the three and nine months ended September 30, 2022 were not material.
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. 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 preliminary purchase price of Oscor is $215.2 million, including working capital and other closing adjustments of $5.2 million, which were settled in the second quarter of 2022. 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 preliminarily 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 requires management to make significant estimates and assumptions based on information that is available at the time the consolidated financial statements are prepared. The Company recorded the preliminary purchase price allocation in the fourth quarter of 2021. During the first nine months of 2022, the Company recorded measurement period adjustments, inclusive of working capital and other closing adjustments, resulting in increases to goodwill and current liabilities of $0.4 million and $2.3 million, respectively, and decreases to current assets (excluding inventory) and inventory of $2.5 million and $0.8 million, respectively. The preliminary purchase price allocation remains subject to measurement period adjustments. As a result, the allocation of the preliminary 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)$9,621 
Inventory11,360 
Property, plant and equipment17,977 
Goodwill78,302 
Intangible assets105,300 
Operating lease assets15,142 
Other noncurrent assets695 
Current liabilities(11,143)
Operating lease liabilities(12,044)
Fair value of net assets acquired$215,210 
(2.)    BUSINESS ACQUISITIONS (Continued)
Pro Forma (unaudited) disclosures
The following table presents (in thousands) unaudited pro forma financial information as if Aran and Oscor had been included in the Company’s financial results as of the beginning of fiscal year 2021 and 2020, respectively, through the date of acquisition. The pro forma results include the historical results of operations of the Company, Aran and Oscor, as well as adjustments for additional amortization of the assets acquired, additional interest expense related to the financing of the transactions 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.
Nine Months Ended
September 30, 2022
Three Months Ended
October 1, 2021
Nine Months Ended
October 1, 2021
Sales$1,009,036 $324,093 $964,059 
Net income50,285 20,176 64,628 
Acquisition costs
During the three and nine months ended September 30, 2022, direct costs of these acquisitions of $0.1 million and $2.9 million, respectively, were expensed as incurred and included in Restructuring and other charges in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
v3.22.2.2
Supplemental Cash Flow Information
9 Months Ended
Sep. 30, 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):
Nine Months Ended
September 30,
2022
October 1,
2021
Noncash investing and financing activities:
Property, plant and equipment purchases included in accounts payable$4,992 $4,311 
Debt issuance costs incurred but not yet paid— 1,713 
Supplemental lease disclosures:
Assets acquired under operating leases11,817 7,772 
v3.22.2.2
Inventories
9 Months Ended
Sep. 30, 2022
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIES
Inventories comprise the following (in thousands):
September 30,
2022
December 31,
2021
Raw materials$98,215 $70,956 
Work-in-process99,191 74,152 
Finished goods13,053 10,591 
Total$210,459 $155,699 
v3.22.2.2
Goodwill and Other Intangible Assets, Net
9 Months Ended
Sep. 30, 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 nine months ended September 30, 2022 were as follows (in thousands):
MedicalNon- MedicalTotal
December 31, 2021$907,704 $17,000 $924,704 
Acquisition (Note 2)68,460 — 68,460 
Acquisition-related adjustments (Note 2)414 414 
Foreign currency translation(28,460)— (28,460)
September 30, 2022$948,118 $17,000 $965,118 
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. See Note 2 “Business Acquisitions” for additional details regarding intangible assets acquired during 2022. Intangible assets comprise the following (in thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
September 30, 2022
Definite-lived:
Purchased technology and patents$279,602 $(173,058)$106,544 
Customer lists808,964 (205,575)603,389 
Amortizing tradenames and other20,970 (5,190)15,780 
Total amortizing intangible assets$1,109,536 $(383,823)$725,713 
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 EndedNine Months Ended
 September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Cost of sales$3,980 $3,216 $11,662 $9,717 
Selling, general and administrative expenses8,146 7,068 24,353 21,356 
Total intangible asset amortization expense$12,126 $10,284 $36,015 $31,073 
(5.)     GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Continued)
Estimated future intangible asset amortization expense based on the carrying value as of September 30, 2022 is as follows (in thousands):
Remainder of 20222023202420252026After 2026
Amortization Expense$12,184 51,171 50,539 49,691 47,841 514,287 
v3.22.2.2
Debt
9 Months Ended
Sep. 30, 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 September 30, 2022 and December 31, 2021, respectively, comprises the following (in thousands):
 September 30,
2022
December 31,
2021
Senior secured term loan A$458,250 $467,062 
Senior secured term loan B346,500 349,125 
Senior secured revolving credit facility140,300 19,300 
Unamortized discount on term loan B and deferred debt issuance costs(6,404)(7,361)
Total debt938,646 828,126 
Current portion of long-term debt(15,250)(15,250)
Total long-term debt$923,396 $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 September 30, 2022, the Company had available borrowing capacity on the Revolving Credit Facility of $254.2 million after giving effect to $140.3 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 September 30, 2022, the interest rate on outstanding borrowings under the Revolving Credit Facility was 4.87%.
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 September 30, 2022, the commitment fee on the unused portion of the Revolving Credit Facility was 0.20%.
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 September 30, 2022, the interest rates on the TLA Facility and TLB Facility were 4.87% and 5.62%, respectively.
(6.)     DEBT (Continued)
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 September 30, 2022, the Company was in compliance with these financial covenants.
Contractual maturities under the Senior Secured Credit Facilities for the remainder of 2022 and through maturity, excluding any discounts or premiums, as of September 30, 2022 are as follows (in thousands):
Remainder of 20222023202420252026After 2026
Future minimum principal payments$3,812 18,187 29,938 38,750 522,738 331,625 
v3.22.2.2
Stock-Based Compensation
9 Months Ended
Sep. 30, 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, time-based restricted stock units (“RSUs”), performance-based RSUs (“PRSUs”), 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 EndedNine Months Ended
 September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
RSUs and PRSUs$5,022 $3,282 $15,973 $12,235 
Total stock-based compensation expense$5,022 $3,282 $15,973 $12,235 
Cost of sales$749 $649 $2,355 $2,586 
Selling, general and administrative3,710 2,177 11,563 8,747 
Research, development and engineering209 302 872 748 
Restructuring and other charges354 154 1,183 154 
Total stock-based compensation expense$5,022 $3,282 $15,973 $12,235 
Stock Options
The following table summarizes the Company’s stock option activity for the nine month period ended September 30, 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 September 30, 2022247,640 $38.03 3.3$6.0 
(7.)     STOCK-BASED COMPENSATION (Continued)
Restricted Stock Units
During the nine months ended September 30, 2022, the Company awarded grants of either RSUs or a mix of RSUs and PRSUs to members of its Board of Directors and certain members of management. Most RSUs granted during the nine months ended September 30, 2022 vest over a period of three years from the grant date, subject to the recipient’s continuous service to the Company. RSUs are issued to members of the Board as a portion of their annual retainer and vest quarterly over a one-year vesting term. The grant-date fair value of all RSUs is equal to the closing market price of Integer common stock on the date of grant.
The following table summarizes RSU activity for the nine month period ended September 30, 2022:
Time-Vested
Activity
Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021248,131 $81.14 
Granted185,180 78.32 
Vested(95,823)79.21 
Forfeited(24,541)79.69 
Nonvested at September 30, 2022312,947 $80.17 
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 nine month period ended September 30, 2022:
Performance-
Vested
Activity
Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021198,869 $92.07 
Granted131,393 90.84 
Forfeited(52,448)99.30 
Nonvested at September 30, 2022277,814 $90.13 
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:
 Nine Months Ended
 September 30,
2022
October 1,
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.
v3.22.2.2
Restructuring and Other Charges
9 Months Ended
Sep. 30, 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 (Loss).
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 (Loss).
Restructuring and other charges comprise the following (in thousands):
 Three Months EndedNine Months Ended
 September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Restructuring charges$1,919 $1,727 $3,017 $2,572 
Acquisition and integration costs
597 182 5,866 292 
Other general expenses626 554 1,127 793 
Total restructuring and other charges
$3,142 $2,463 $10,010 $3,657 
Restructuring programs
The following table comprises restructuring and restructuring-related charges by income statement classification for the three and nine month periods ended September 30, 2022 (in thousands):
 Three Months EndedNine Months Ended
 September 30, 2022September 30, 2022
Restructuring charges:
Restructuring and other charges
$1,919 $3,017 
Restructuring-related expenses(a):
Cost of sales455 789 
Selling, general and administrative563 1,265 
Research, development and engineering321 824 
Total restructuring and restructuring-related charges
$3,258 $5,895 
__________
(a) Restructuring-related expenses primarily include retention bonuses and consulting expenses. Restructuring related expenses for the three and nine months ended October 1, 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 September 30, 2022, total restructuring and restructuring-related charges incurred since inception were $1.6 million. These actions are expected to be substantially complete by the end of 2025.
(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 September 30, 2022, total restructuring and restructuring-related charges incurred since inception were $4.9 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.
Cost Reduction Initiatives - During the third quarter of 2022, the Company recorded $1.1 million in restructuring charges related to cost reduction actions taken in response to higher manufacturing and direct labor costs. These charges consisted of employee termination benefits. The Company expects to incur aggregate pre-tax cash charges of up to $2.0 million through completion in the second quarter of 2023.
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 September 30, 2022, total restructuring and restructuring-related charges incurred since inception were $2.8 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 reversals964 2,053 3,017 
Cash payments(1,194)(152)(1,346)
September 30, 2022$68 $2,035 $2,103 
Acquisition and integration
Acquisition and integration costs primarily consist of professional fees and other costs related to business acquisitions. During the nine months ended September 30, 2022, acquisition and integration costs included $5.9 million of expenses primarily related to the acquisitions of Oscor and Aran.
Other general expenses
During the nine months ended September 30, 2022 and October 1, 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.
v3.22.2.2
Income Taxes
9 Months Ended
Sep. 30, 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 third quarter of 2022 was 5.5% on $17.0 million of income before taxes compared to 4.8% on $23.2 million of income before taxes for the same period in 2021. The Company’s effective tax rate for the nine months ended September 30, 2022 was 12.8% on $55.4 million of income before taxes compared to 7.5% on $78.9 million of income before taxes for the same period of 2021. The difference between the Company’s effective tax rates and the U.S. federal statutory income tax rate of 21% for the third quarter and first nine months 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 benefit of $0.7 million and $0.2 million for the third quarter and first nine months of 2022, compared to discrete tax benefits of $1.6 million and $6.1 million, respectively, for the third quarter and first nine months of 2021. The discrete tax benefit for third quarter and the first nine months of 2022 is predominately related to favorable return to provision adjustments attributable to the 2021 tax year. The remainder of the discrete tax benefits relate predominately to excess tax benefits recognized upon vesting of RSUs during those periods and/or tax shortfalls recorded for the forfeiture of certain PRSUs. Approximately $3.5 million of the discrete tax benefits recognized for the first nine months of 2021 relate to the reversal of unrecognized tax benefits resulting from the effective settlement of tax audits during the second quarter of 2021. The remainder of the discrete tax benefits relate predominately to excess tax benefits recognized upon vesting of RSUs or exercise of stock options during those quarters and favorable return to provision adjustments related to the 2020 tax year.
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 September 30, 2022, the Company had unrecognized tax benefits of approximately $6.6 million, of which approximately $6.5 million would favorably impact the effective tax rate, net of federal benefit on state issues, if recognized. As of September 30, 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 September 30, 2022 and December 31, 2021, the Company had a remaining deferred amount of $4.8 million, which is due to be paid on or before January 3, 2023. The deferred payroll taxes are included within Accrued expenses and other current liabilities on the Condensed Consolidated Balance Sheets.
v3.22.2.2
Commitments and Contingencies
9 Months Ended
Sep. 30, 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(13)
Adjustments to pre-existing warranties (375)
September 30, 2022$121 
v3.22.2.2
Earnings Per Share (“EPS”)
9 Months Ended
Sep. 30, 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 EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Numerator for basic and diluted EPS:
Net income$16,057 $22,066 $48,260 $73,019 
Denominator for basic and diluted EPS:
Weighted average shares outstanding - Basic33,145 33,008 33,116 32,982 
Dilutive effect of share-based awards191 301 213 268 
Weighted average shares outstanding - Diluted33,336 33,309 33,329 33,250 
Basic EPS$0.48 $0.67 $1.46 $2.21 
Diluted EPS$0.48 $0.66 $1.45 $2.20 
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands):
 Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
RSUs30 13 
PRSUs162 83 164 70 
v3.22.2.2
Stockholders' Equity
9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
Common Stock
The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the nine month periods ended September 30, 2022 and October 1, 2021:
Nine Months Ended
September 30,
2022
October 1,
2021
Shares outstanding at beginning of period33,063,336 32,908,178 
Stock options exercised— 27,002 
Vesting of RSUs, net of shares withheld to cover taxes67,657 81,804 
Shares outstanding at end of period33,130,993 33,016,984 
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) comprises the following (in thousands):
Defined
Benefit
Plan
Liability
Cash
Flow
Hedges
Foreign
Currency
Translation
Adjustment
Total
Pre-Tax
Amount
TaxNet-of-Tax
Amount
July 1, 2022$(890)$1,110 $(5,441)$(5,221)$(63)$(5,284)
Unrealized loss on cash flow hedges— (150)— (150)32 (118)
Realized loss on foreign currency hedges— 211 — 211 (44)167 
Realized gain on interest rate swap hedge— (4)— (4)— (4)
Foreign currency translation loss— — (29,364)(29,364)— (29,364)
September 30, 2022$(890)$1,167 $(34,805)$(34,528)$(75)$(34,603)
December 31, 2021$(890)$(2,291)$29,720 $26,539 $651 $27,190 
Unrealized gain on cash flow hedges— 2,415 — 2,415 (507)1,908 
Realized gain on foreign currency hedges— (246)— (246)52 (194)
Realized loss on interest rate swap hedge— 1,289 — 1,289 (271)1,018 
Foreign currency translation loss— — (64,525)(64,525)— (64,525)
September 30, 2022$(890)$1,167 $(34,805)$(34,528)$(75)$(34,603)
July 2, 2021$(1,095)$(4,780)$43,666 $37,791 $1,160 $38,951 
Unrealized loss on cash flow hedges— (306)— (306)64 (242)
Realized gain on foreign currency hedges— (206)— (206)44 (162)
Realized loss on interest rate swap hedge— 584 — 584 (123)461 
Foreign currency translation loss— — (7,836)(7,836)— (7,836)
October 1, 2021$(1,095)$(4,708)$35,830 $30,027 $1,145 $31,172 
December 31, 2020$(1,095)$(4,956)$57,546 $51,495 $1,197 $52,692 
Unrealized loss on cash flow hedges— (1,010)— (1,010)212 (798)
Realized gain on foreign currency hedges— (1,355)— (1,355)285 (1,070)
Realized loss on interest rate swap hedge— 2,613 — 2,613 (549)2,064 
Foreign currency translation loss— — (21,716)(21,716)— (21,716)
October 1, 2021$(1,095)$(4,708)$35,830 $30,027 $1,145 $31,172 
v3.22.2.2
Financial Instruments and Fair Value Measurements
9 Months Ended
Sep. 30, 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)
September 30, 2022
Assets: Interest rate swap$1,515 $— $1,515 $— 
Assets: Foreign currency hedging contracts749 — 749 — 
Liabilities: Foreign currency hedging contracts1,097 — 1,097 — 
Liabilities: Contingent consideration8,272 — — 8,272 
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 as of September 30, 2022 is as follows (dollars in thousands):
Notional AmountStart DateEnd
Date
Pay Fixed RateReceive Current Floating RateFair ValueBalance Sheet Location
$100,000 Jun 2020Jun 20232.1785 %3.0800 %$1,515 Prepaid expenses and other current assets
Information regarding the Company’s outstanding interest rate swap 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 September 30, 2022 is as follows (dollars in thousands):
Notional AmountEnd
Date
$/Foreign CurrencyFair ValueBalance Sheet Location
$5,418 Dec 20220.0455MXN Peso$490 Prepaid expenses and other current assets
3,420 Dec 20221.1383Euro(464)Accrued expenses and other current liabilities
2,143 Dec 20220.0216UYU Peso259 Prepaid expenses and other current assets
3,387 Dec 20221.1266Euro(431)Accrued expenses and other current liabilities
1,978 Dec 20221.0952Euro(202)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 loss (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and October 1, 2021 (in thousands):
Three Months Ended
September 30, 2022October 1, 2021
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$342,680 $(876)$305,574 $(240)
Cost of sales255,962 563 223,702 434 
Operating expenses57,460 102 48,782 12 
Interest expense10,676 10,053 (584)
Nine Months Ended
September 30, 2022October 1, 2021
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$1,003,673 $(1,301)$908,064 $(203)
Cost of sales742,583 1,309 652,960 1,508 
Operating expenses176,628 238 148,056 50 
Interest expense24,417 (1,289)26,117 (2,613)
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
Unrealized Gain (Loss) Recognized in OCIRealized Gain (Loss) Reclassified from AOCI
Three Months Ended
Location in Statements of Operations and Comprehensive Income (Loss)
Three Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Interest rate swap$678 $119 Interest expense$$(584)
Foreign exchange contracts(847)(236)Sales(876)(240)
Foreign exchange contracts91 (235)Cost of sales563 434 
Foreign exchange contracts(72)49 Operating expenses102 12 
Nine Months Ended
Location in Statements of Operations and Comprehensive Income (Loss)
Nine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Interest rate swap$3,204 $10 Interest expense$(1,289)$(2,613)
Foreign exchange contracts(2,528)(977)Sales(1,301)(203)
Foreign exchange contracts1,456 (69)Cost of sales1,309 1,508 
Foreign exchange contracts283 26 Operating expenses238 50 
The Company expects to reclassify net gains totaling $1.2 million related to its cash flow hedges from AOCI into earnings during the next twelve months.
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 September 30, 2022, the Company had two contracts outstanding, with a total notional amount of $16.4 million and a fair value of approximately $(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 $0.9 million and $1.6 million, respectively, for the three and nine months ended September 30, 2022, which is included in Other (gain) loss, net in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in Other loss, net. The Company did not have foreign currency contracts not designated as hedging instruments outstanding during the nine months ended October 1, 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 and nine months ended September 30, 2022 and October 1, 2021 (in thousands):
 Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Fair value measurement at beginning of period$9,072 $2,281 $2,415 $3,900 
Amount recorded for current year acquisitions
— — 7,375 — 
Fair value measurement adjustment(347)— (293)— 
Payments
— — (493)(1,621)
Foreign currency translation(453)(732)
Fair value measurement at end of period$8,272 $2,282 $8,272 $2,282 
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
On April 6, 2022, the Company acquired Aran. See Note 2 “Business Acquisitions” for additional information about the Aran acquisition and related contingent consideration. 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 September 30, 2022 is the estimated fair value of the Company’s obligations, under the asset purchase agreements for Aran, InoMec and USB, to make additional payments if certain revenue goals are met.
During 2022, the Company made payments associated with the USB acquisition, resulting from achievement of revenue-based goals for the period from January 1, 2021 to December 31, 2021. 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 September 30, 2022 and December 31, 2021, the current portion of contingent consideration liabilities included in Accrued expenses and other current liabilities was $7.6 million and $0.7 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.
The following table provides quantitative information associated with the fair value measurement of the Company’s liabilities for contingent consideration:
September 30, 2022
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments:
InoMec and USB$5,375 $1,629 Monte CarloRevenue volatility26.7 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
Aran$9,815 $6,643 
Probability-weighted expected returns method
Probability of occurrence
0% - 50%
Discount rate9.7 %
Projected year(s) of payment2023
December 31, 2021
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments:
InoMec and USB$6,750 $2,415 Monte CarloRevenue volatility29.0 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
(13.)     FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Continued)
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):
September 30,
2022
December 31,
2021
Equity method investment$10,581 $16,192 
Non-marketable equity securities5,637 5,637 
Total equity investments
$16,218 $21,829 
The components of (Gain) loss on equity investments for each period were as follows (in thousands):
Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Equity method investment (gain) loss$2,887 $(152)$5,611 $1,867 
The Company’s equity method investment is in a venture capital fund focused on investing in life sciences companies. As of September 30, 2022, the Company owned 7.1% of this fund.
v3.22.2.2
Segment Information
9 Months Ended
Sep. 30, 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 and nine months ended October 1, 2021, Cardio & Vascular sales of $8.6 million and $24.5 million, respectively, and Advanced Surgical, Orthopedics & Portable Medical sales of $6.3 million and $17.6 million, respectively, were reclassified to the Cardiac Rhythm Management & Neuromodulation product line.
The following table presents sales by product line (in thousands):
 Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Segment sales by product line:
Medical
Cardio & Vascular$174,131 $152,276 $513,772 $438,165 
Cardiac Rhythm Management & Neuromodulation
130,631 121,425 389,900 376,788 
Advanced Surgical, Orthopedics & Portable Medical26,150 22,420 69,101 65,759 
Total Medical330,912 296,121 972,773 880,712 
Non-Medical11,768 9,453 30,900 27,352 
Total sales$342,680 $305,574 $1,003,673 $908,064 
The following table presents income for the Company’s reportable segments (in thousands):
 Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Segment income:
Medical$49,176 $52,347 $147,904 $164,311 
Non-Medical1,818 2,016 4,108 5,374 
Total segment income50,994 54,363 152,012 169,685 
Unallocated operating expenses
(21,736)(21,273)(67,550)(62,637)
Operating income29,258 33,090 84,462 107,048 
Unallocated expenses, net(12,263)(9,911)(29,096)(28,113)
Income before taxes$16,995 $23,179 $55,366 $78,935 
v3.22.2.2
Revenue From Contracts With Customers
9 Months Ended
Sep. 30, 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 28% and 30%, respectively, for the three and nine months ended September 30, 2022, compared to 33% and 34%, respectively, for the three and nine months ended October 1, 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
September 30, 2022October 1, 2021
CustomerMedicalNon-Medical MedicalNon-Medical
Customer A18%*17%*
Customer B16%*17%*
Customer C13%*14%*
Customer D*25%*38%
Customer E*15%**
All other customers53%60%52%62%

Nine Months Ended
September 30, 2022October 1, 2021
CustomerMedicalNon-MedicalMedicalNon-Medical
Customer A18%*20%*
Customer B17%*17%*
Customer C13%*14%*
Customer D*33%*34%
All other customers52%67%49%66%
__________
* Less than 10% of segment’s total revenues for the period.
(15.)    REVENUE FROM CONTRACTS WITH CUSTOMERS (Continued)
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
September 30, 2022October 1, 2021
Ship to LocationMedicalNon-Medical MedicalNon-Medical
United States54%74%56%68%
All other countries46%26%44%32%
Nine Months Ended
September 30, 2022October 1, 2021
Ship to LocationMedicalNon-MedicalMedicalNon-Medical
United States54%70%54%69%
All other countries46%30%46%31%
__________
* 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):
September 30,
2022
December 31,
2021
Contract assets$71,427 $64,743 
Contract liabilities6,156 3,776 
During the three and nine months ended September 30, 2022, the Company recognized $0.5 million and $2.2 million, respectively, of revenue that was included in the contract liability balance as of December 31, 2021. During the three and nine months ended October 1, 2021, the Company recognized $0.3 million and $1.4 million, respectively, of revenue that was included in the contract liability balance as of December 31, 2020.
v3.22.2.2
Basis of Presentation (Policies)
9 Months Ended
Sep. 30, 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.
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.
v3.22.2.2
Business Acquisitions (Tables)
9 Months Ended
Sep. 30, 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$9,319 
Property, plant and equipment4,151 
Goodwill68,460 
Definite-lived intangible assets71,485 
Operating lease assets3,505 
Other noncurrent assets1,354 
Current liabilities(4,370)
Operating lease liabilities(3,258)
Other noncurrent liabilities(9,377)
Fair value of net assets acquired$141,269 
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)$9,621 
Inventory11,360 
Property, plant and equipment17,977 
Goodwill78,302 
Intangible assets105,300 
Operating lease assets15,142 
Other noncurrent assets695 
Current liabilities(11,143)
Operating lease liabilities(12,044)
Fair value of net assets acquired$215,210 
Schedule of Definite-lived Intangible Assets Acquired
The breakout of definite-lived intangible assets acquired was as follows (dollars in thousands):
Definite-lived Intangible AssetsFair Value AssignedWeighted Average Amortization Period
(Years)
Weighted Average Discount Rate
Customer lists$53,395 26.09.5%
Technology17,435 12.09.5%
Tradenames655 1.59.5%
$71,485 
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.
Nine Months Ended
September 30, 2022
Three Months Ended
October 1, 2021
Nine Months Ended
October 1, 2021
Sales$1,009,036 $324,093 $964,059 
Net income50,285 20,176 64,628 
v3.22.2.2
Supplemental Cash Flow Information (Tables)
9 Months Ended
Sep. 30, 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):
Nine Months Ended
September 30,
2022
October 1,
2021
Noncash investing and financing activities:
Property, plant and equipment purchases included in accounts payable$4,992 $4,311 
Debt issuance costs incurred but not yet paid— 1,713 
Supplemental lease disclosures:
Assets acquired under operating leases11,817 7,772 
v3.22.2.2
Inventories (Tables)
9 Months Ended
Sep. 30, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventory
Inventories comprise the following (in thousands):
September 30,
2022
December 31,
2021
Raw materials$98,215 $70,956 
Work-in-process99,191 74,152 
Finished goods13,053 10,591 
Total$210,459 $155,699 
v3.22.2.2
Goodwill and Other Intangible Assets, Net (Tables)
9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2022 were as follows (in thousands):
MedicalNon- MedicalTotal
December 31, 2021$907,704 $17,000 $924,704 
Acquisition (Note 2)68,460 — 68,460 
Acquisition-related adjustments (Note 2)414 414 
Foreign currency translation(28,460)— (28,460)
September 30, 2022$948,118 $17,000 $965,118 
Schedule of Finite-Lived Intangible Assets, Major Class Intangible assets comprise the following (in thousands):
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
September 30, 2022
Definite-lived:
Purchased technology and patents$279,602 $(173,058)$106,544 
Customer lists808,964 (205,575)603,389 
Amortizing tradenames and other20,970 (5,190)15,780 
Total amortizing intangible assets$1,109,536 $(383,823)$725,713 
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
September 30, 2022
Definite-lived:
Purchased technology and patents$279,602 $(173,058)$106,544 
Customer lists808,964 (205,575)603,389 
Amortizing tradenames and other20,970 (5,190)15,780 
Total amortizing intangible assets$1,109,536 $(383,823)$725,713 
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 EndedNine Months Ended
 September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Cost of sales$3,980 $3,216 $11,662 $9,717 
Selling, general and administrative expenses8,146 7,068 24,353 21,356 
Total intangible asset amortization expense$12,126 $10,284 $36,015 $31,073 
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
Estimated future intangible asset amortization expense based on the carrying value as of September 30, 2022 is as follows (in thousands):
Remainder of 20222023202420252026After 2026
Amortization Expense$12,184 51,171 50,539 49,691 47,841 514,287 
v3.22.2.2
Debt (Tables)
9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt
Long-term debt related to the Senior Secured Credit Facilities as of September 30, 2022 and December 31, 2021, respectively, comprises the following (in thousands):
 September 30,
2022
December 31,
2021
Senior secured term loan A$458,250 $467,062 
Senior secured term loan B346,500 349,125 
Senior secured revolving credit facility140,300 19,300 
Unamortized discount on term loan B and deferred debt issuance costs(6,404)(7,361)
Total debt938,646 828,126 
Current portion of long-term debt(15,250)(15,250)
Total long-term debt$923,396 $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 September 30, 2022 are as follows (in thousands):
Remainder of 20222023202420252026After 2026
Future minimum principal payments$3,812 18,187 29,938 38,750 522,738 331,625 
v3.22.2.2
Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 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 EndedNine Months Ended
 September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
RSUs and PRSUs$5,022 $3,282 $15,973 $12,235 
Total stock-based compensation expense$5,022 $3,282 $15,973 $12,235 
Cost of sales$749 $649 $2,355 $2,586 
Selling, general and administrative3,710 2,177 11,563 8,747 
Research, development and engineering209 302 872 748 
Restructuring and other charges354 154 1,183 154 
Total stock-based compensation expense$5,022 $3,282 $15,973 $12,235 
Schedule of Share-based Compensation, Stock Options Activity
The following table summarizes the Company’s stock option activity for the nine month period ended September 30, 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 September 30, 2022247,640 $38.03 3.3$6.0 
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity
The following table summarizes RSU activity for the nine month period ended September 30, 2022:
Time-Vested
Activity
Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021248,131 $81.14 
Granted185,180 78.32 
Vested(95,823)79.21 
Forfeited(24,541)79.69 
Nonvested at September 30, 2022312,947 $80.17 
The following table summarizes PRSU activity for the nine month period ended September 30, 2022:
Performance-
Vested
Activity
Weighted
Average
Grant Date Fair Value
Nonvested at December 31, 2021198,869 $92.07 
Granted131,393 90.84 
Forfeited(52,448)99.30 
Nonvested at September 30, 2022277,814 $90.13 
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:
 Nine Months Ended
 September 30,
2022
October 1,
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— %— %
v3.22.2.2
Restructuring and Other Charges (Tables)
9 Months Ended
Sep. 30, 2022
Restructuring and Related Activities [Abstract]  
Schedule of Restructuring and Related Charges
Restructuring and other charges comprise the following (in thousands):
 Three Months EndedNine Months Ended
 September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Restructuring charges$1,919 $1,727 $3,017 $2,572 
Acquisition and integration costs
597 182 5,866 292 
Other general expenses626 554 1,127 793 
Total restructuring and other charges
$3,142 $2,463 $10,010 $3,657 
The following table comprises restructuring and restructuring-related charges by income statement classification for the three and nine month periods ended September 30, 2022 (in thousands):
 Three Months EndedNine Months Ended
 September 30, 2022September 30, 2022
Restructuring charges:
Restructuring and other charges
$1,919 $3,017 
Restructuring-related expenses(a):
Cost of sales455 789 
Selling, general and administrative563 1,265 
Research, development and engineering321 824 
Total restructuring and restructuring-related charges
$3,258 $5,895 
__________
(a) Restructuring-related expenses primarily include retention bonuses and consulting expenses. Restructuring related expenses for the three and nine months ended October 1, 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 reversals964 2,053 3,017 
Cash payments(1,194)(152)(1,346)
September 30, 2022$68 $2,035 $2,103 
v3.22.2.2
Commitments and Contingencies (Tables)
9 Months Ended
Sep. 30, 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(13)
Adjustments to pre-existing warranties (375)
September 30, 2022$121 
v3.22.2.2
Earnings Per Share (“EPS”) (Tables)
9 Months Ended
Sep. 30, 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 EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Numerator for basic and diluted EPS:
Net income$16,057 $22,066 $48,260 $73,019 
Denominator for basic and diluted EPS:
Weighted average shares outstanding - Basic33,145 33,008 33,116 32,982 
Dilutive effect of share-based awards191 301 213 268 
Weighted average shares outstanding - Diluted33,336 33,309 33,329 33,250 
Basic EPS$0.48 $0.67 $1.46 $2.21 
Diluted EPS$0.48 $0.66 $1.45 $2.20 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The diluted weighted average share calculations do not include the following securities, which are not dilutive to the EPS calculations or the performance criteria have not been met (in thousands):
 Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
RSUs30 13 
PRSUs162 83 164 70 
v3.22.2.2
Stockholders' Equity (Tables)
9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Schedule of Common Stock Outstanding Roll Forward
The following is a summary of the number of shares of common stock issued, treasury stock and common stock outstanding for the nine month periods ended September 30, 2022 and October 1, 2021:
Nine Months Ended
September 30,
2022
October 1,
2021
Shares outstanding at beginning of period33,063,336 32,908,178 
Stock options exercised— 27,002 
Vesting of RSUs, net of shares withheld to cover taxes67,657 81,804 
Shares outstanding at end of period33,130,993 33,016,984 
Schedule of Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) comprises the following (in thousands):
Defined
Benefit
Plan
Liability
Cash
Flow
Hedges
Foreign
Currency
Translation
Adjustment
Total
Pre-Tax
Amount
TaxNet-of-Tax
Amount
July 1, 2022$(890)$1,110 $(5,441)$(5,221)$(63)$(5,284)
Unrealized loss on cash flow hedges— (150)— (150)32 (118)
Realized loss on foreign currency hedges— 211 — 211 (44)167 
Realized gain on interest rate swap hedge— (4)— (4)— (4)
Foreign currency translation loss— — (29,364)(29,364)— (29,364)
September 30, 2022$(890)$1,167 $(34,805)$(34,528)$(75)$(34,603)
December 31, 2021$(890)$(2,291)$29,720 $26,539 $651 $27,190 
Unrealized gain on cash flow hedges— 2,415 — 2,415 (507)1,908 
Realized gain on foreign currency hedges— (246)— (246)52 (194)
Realized loss on interest rate swap hedge— 1,289 — 1,289 (271)1,018 
Foreign currency translation loss— — (64,525)(64,525)— (64,525)
September 30, 2022$(890)$1,167 $(34,805)$(34,528)$(75)$(34,603)
July 2, 2021$(1,095)$(4,780)$43,666 $37,791 $1,160 $38,951 
Unrealized loss on cash flow hedges— (306)— (306)64 (242)
Realized gain on foreign currency hedges— (206)— (206)44 (162)
Realized loss on interest rate swap hedge— 584 — 584 (123)461 
Foreign currency translation loss— — (7,836)(7,836)— (7,836)
October 1, 2021$(1,095)$(4,708)$35,830 $30,027 $1,145 $31,172 
December 31, 2020$(1,095)$(4,956)$57,546 $51,495 $1,197 $52,692 
Unrealized loss on cash flow hedges— (1,010)— (1,010)212 (798)
Realized gain on foreign currency hedges— (1,355)— (1,355)285 (1,070)
Realized loss on interest rate swap hedge— 2,613 — 2,613 (549)2,064 
Foreign currency translation loss— — (21,716)(21,716)— (21,716)
October 1, 2021$(1,095)$(4,708)$35,830 $30,027 $1,145 $31,172 
v3.22.2.2
Financial Instruments and Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 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)
September 30, 2022
Assets: Interest rate swap$1,515 $— $1,515 $— 
Assets: Foreign currency hedging contracts749 — 749 — 
Liabilities: Foreign currency hedging contracts1,097 — 1,097 — 
Liabilities: Contingent consideration8,272 — — 8,272 
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 as of September 30, 2022 is as follows (dollars in thousands):
Notional AmountStart DateEnd
Date
Pay Fixed RateReceive Current Floating RateFair ValueBalance Sheet Location
$100,000 Jun 2020Jun 20232.1785 %3.0800 %$1,515 Prepaid expenses and other current assets
Information regarding the Company’s outstanding interest rate swap 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 September 30, 2022 is as follows (dollars in thousands):
Notional AmountEnd
Date
$/Foreign CurrencyFair ValueBalance Sheet Location
$5,418 Dec 20220.0455MXN Peso$490 Prepaid expenses and other current assets
3,420 Dec 20221.1383Euro(464)Accrued expenses and other current liabilities
2,143 Dec 20220.0216UYU Peso259 Prepaid expenses and other current assets
3,387 Dec 20221.1266Euro(431)Accrued expenses and other current liabilities
1,978 Dec 20221.0952Euro(202)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 loss (“OCI”), AOCI and the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2022 and October 1, 2021 (in thousands):
Three Months Ended
September 30, 2022October 1, 2021
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$342,680 $(876)$305,574 $(240)
Cost of sales255,962 563 223,702 434 
Operating expenses57,460 102 48,782 12 
Interest expense10,676 10,053 (584)
Nine Months Ended
September 30, 2022October 1, 2021
TotalAmount of Gain (Loss) on Cash Flow Hedge ActivityTotalAmount of Gain (Loss) on Cash Flow Hedge Activity
Sales$1,003,673 $(1,301)$908,064 $(203)
Cost of sales742,583 1,309 652,960 1,508 
Operating expenses176,628 238 148,056 50 
Interest expense24,417 (1,289)26,117 (2,613)
Unrealized Gain (Loss) Recognized in OCIRealized Gain (Loss) Reclassified from AOCI
Three Months Ended
Location in Statements of Operations and Comprehensive Income (Loss)
Three Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Interest rate swap$678 $119 Interest expense$$(584)
Foreign exchange contracts(847)(236)Sales(876)(240)
Foreign exchange contracts91 (235)Cost of sales563 434 
Foreign exchange contracts(72)49 Operating expenses102 12 
Nine Months Ended
Location in Statements of Operations and Comprehensive Income (Loss)
Nine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Interest rate swap$3,204 $10 Interest expense$(1,289)$(2,613)
Foreign exchange contracts(2,528)(977)Sales(1,301)(203)
Foreign exchange contracts1,456 (69)Cost of sales1,309 1,508 
Foreign exchange contracts283 26 Operating expenses238 50 
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 and nine months ended September 30, 2022 and October 1, 2021 (in thousands):
 Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Fair value measurement at beginning of period$9,072 $2,281 $2,415 $3,900 
Amount recorded for current year acquisitions
— — 7,375 — 
Fair value measurement adjustment(347)— (293)— 
Payments
— — (493)(1,621)
Foreign currency translation(453)(732)
Fair value measurement at end of period$8,272 $2,282 $8,272 $2,282 
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:
September 30, 2022
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments:
InoMec and USB$5,375 $1,629 Monte CarloRevenue volatility26.7 %
Discount rate1.8 %
Projected year(s) of payment2022-2024
Aran$9,815 $6,643 
Probability-weighted expected returns method
Probability of occurrence
0% - 50%
Discount rate9.7 %
Projected year(s) of payment2023
December 31, 2021
Contingency TypeMaximum Payout (undiscounted)Fair ValueValuation TechniqueUnobservable InputsWeighted Average or Range
Revenue-based payments:
InoMec and USB$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):
September 30,
2022
December 31,
2021
Equity method investment$10,581 $16,192 
Non-marketable equity securities5,637 5,637 
Total equity investments
$16,218 $21,829 
The components of (Gain) loss on equity investments for each period were as follows (in thousands):
Three Months EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Equity method investment (gain) loss$2,887 $(152)$5,611 $1,867 
v3.22.2.2
Segment Information (Tables)
9 Months Ended
Sep. 30, 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 EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Segment sales by product line:
Medical
Cardio & Vascular$174,131 $152,276 $513,772 $438,165 
Cardiac Rhythm Management & Neuromodulation
130,631 121,425 389,900 376,788 
Advanced Surgical, Orthopedics & Portable Medical26,150 22,420 69,101 65,759 
Total Medical330,912 296,121 972,773 880,712 
Non-Medical11,768 9,453 30,900 27,352 
Total sales$342,680 $305,574 $1,003,673 $908,064 
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 EndedNine Months Ended
September 30,
2022
October 1,
2021
September 30,
2022
October 1,
2021
Segment income:
Medical$49,176 $52,347 $147,904 $164,311 
Non-Medical1,818 2,016 4,108 5,374 
Total segment income50,994 54,363 152,012 169,685 
Unallocated operating expenses
(21,736)(21,273)(67,550)(62,637)
Operating income29,258 33,090 84,462 107,048 
Unallocated expenses, net(12,263)(9,911)(29,096)(28,113)
Income before taxes$16,995 $23,179 $55,366 $78,935 
v3.22.2.2
Revenue From Contracts With Customers (Tables)
9 Months Ended
Sep. 30, 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
September 30, 2022October 1, 2021
CustomerMedicalNon-Medical MedicalNon-Medical
Customer A18%*17%*
Customer B16%*17%*
Customer C13%*14%*
Customer D*25%*38%
Customer E*15%**
All other customers53%60%52%62%

Nine Months Ended
September 30, 2022October 1, 2021
CustomerMedicalNon-MedicalMedicalNon-Medical
Customer A18%*20%*
Customer B17%*17%*
Customer C13%*14%*
Customer D*33%*34%
All other customers52%67%49%66%
__________
* 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
September 30, 2022October 1, 2021
Ship to LocationMedicalNon-Medical MedicalNon-Medical
United States54%74%56%68%
All other countries46%26%44%32%
Nine Months Ended
September 30, 2022October 1, 2021
Ship to LocationMedicalNon-MedicalMedicalNon-Medical
United States54%70%54%69%
All other countries46%30%46%31%
__________
* 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):
September 30,
2022
December 31,
2021
Contract assets$71,427 $64,743 
Contract liabilities6,156 3,776 
v3.22.2.2
Business Acquisitions (Narrative) (Details)
$ in Thousands, € in Millions
3 Months Ended 9 Months Ended
Apr. 06, 2022
USD ($)
Dec. 01, 2021
USD ($)
Sep. 30, 2022
USD ($)
Sep. 30, 2022
USD ($)
Oct. 01, 2021
USD ($)
Apr. 06, 2022
EUR (€)
Business Acquisition [Line Items]            
Net of cash acquired       $ 126,636 $ 0  
Goodwill accounting adjustment       414    
Aran Acquisition            
Business Acquisition [Line Items]            
Percentage of voting interests acquired 100.00%         100.00%
Consideration transferred $ 141,300          
Payments to acquire business 133,900          
Net of cash acquired 129,300          
Fair value of contingent consideration 7,400          
Contingent consideration liability, current $ 10,900         € 10
Oscor Inc            
Business Acquisition [Line Items]            
Percentage of voting interests acquired   100.00%        
Consideration transferred   $ 215,200        
Goodwill accounting adjustment   $ 5,200   400    
Adjustment in current liabilities       2,300    
Adjustment in current assets       2,500    
Decrease in inventory       800    
Acquisition related costs     $ 100 $ 2,900    
v3.22.2.2
Business Acquisitions (Allocation Of The Provisional Purchase Price) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Apr. 06, 2022
Dec. 31, 2021
Dec. 01, 2021
Business Acquisition [Line Items]        
Goodwill $ 965,118   $ 924,704  
Aran Acquisition        
Business Acquisition [Line Items]        
Current assets (excluding inventory)   $ 9,319    
Property, plant and equipment   4,151    
Goodwill   68,460    
Definite-lived intangible assets   71,485    
Operating lease assets   3,505    
Other noncurrent assets   1,354    
Current liabilities   (4,370)    
Operating lease liabilities   (3,258)    
Other noncurrent liabilities   (9,377)    
Fair value of net assets acquired   $ 141,269    
Oscor Inc        
Business Acquisition [Line Items]        
Current assets (excluding inventory)       $ 9,621
Inventory       11,360
Property, plant and equipment       17,977
Goodwill       78,302
Definite-lived intangible assets       105,300
Operating lease assets       15,142
Other noncurrent assets       695
Current liabilities       (11,143)
Operating lease liabilities       (12,044)
Fair value of net assets acquired       $ 215,210
v3.22.2.2
Business Acquisitions (Definite-lived Intangible Assets Acquired) (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2022
USD ($)
Finite-Lived Intangible Assets [Line Items]  
Fair Value Assigned $ 71,485
Customer lists  
Finite-Lived Intangible Assets [Line Items]  
Fair Value Assigned $ 53,395
Weighted Average Amortization Period (Years) 26 years
Weighted Average Discount Rate 9.50%
Technology  
Finite-Lived Intangible Assets [Line Items]  
Fair Value Assigned $ 17,435
Weighted Average Amortization Period (Years) 12 years
Weighted Average Discount Rate 9.50%
Tradenames  
Finite-Lived Intangible Assets [Line Items]  
Fair Value Assigned $ 655
Weighted Average Amortization Period (Years) 1 year 6 months
Weighted Average Discount Rate 9.50%
v3.22.2.2
Business Acquisitions (Pro Forma Information) (Details) - Oscor Inc - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Business Combination, Separately Recognized Transactions [Line Items]      
Sales $ 324,093 $ 1,009,036 $ 964,059
Net income $ 20,176 $ 50,285 $ 64,628
v3.22.2.2
Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Noncash investing and financing activities:    
Property, plant and equipment purchases included in accounts payable $ 4,992 $ 4,311
Debt issuance costs incurred but not yet paid 0 1,713
Supplemental lease disclosures:    
Assets acquired under operating leases $ 11,817 $ 7,772
v3.22.2.2
Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials $ 98,215 $ 70,956
Work-in-process 99,191 74,152
Finished goods 13,053 10,591
Total $ 210,459 $ 155,699
v3.22.2.2
Goodwill and Other Intangible Assets, Net (Schedule of Goodwill) (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2022
USD ($)
Goodwill [Roll Forward]  
Opening goodwill $ 924,704
Acquisition (Note 2) 68,460
Acquisition-related adjustments (Note 2) 414
Foreign currency translation (28,460)
Closing goodwill 965,118
Medical  
Goodwill [Roll Forward]  
Opening goodwill 907,704
Acquisition (Note 2) 68,460
Acquisition-related adjustments (Note 2) 414
Foreign currency translation (28,460)
Closing goodwill 948,118
Non-Medical  
Goodwill [Roll Forward]  
Opening goodwill 17,000
Acquisition (Note 2) 0
Acquisition-related adjustments (Note 2)
Foreign currency translation 0
Closing goodwill $ 17,000
v3.22.2.2
Goodwill and Other Intangible Assets, Net (Intangible Assets Narrative) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Indefinite-lived Intangible Assets [Line Items]    
Finite-lived intangible asset $ 725,713 $ 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
v3.22.2.2
Goodwill and Other Intangible Assets, Net (Schedule of Definite-Lived and Indefinite-Lived Intangible Assets, Major Class) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,109,536 $ 1,073,439
Accumulated Amortization (383,823) (355,917)
Net Carrying Amount 725,713 717,522
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 279,602 269,359
Accumulated Amortization (173,058) (164,298)
Net Carrying Amount 106,544 105,061
Customer lists    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 808,964 783,618
Accumulated Amortization (205,575) (187,412)
Net Carrying Amount 603,389 596,206
Amortizing tradenames and other    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 20,970 20,462
Accumulated Amortization (5,190) (4,207)
Net Carrying Amount $ 15,780 $ 16,255
v3.22.2.2
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Amortization Expense) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense $ 12,126 $ 10,284 $ 36,015 $ 31,073
Cost of sales        
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense 3,980 3,216 11,662 9,717
Selling, general and administrative        
Finite-Lived Intangible Assets [Line Items]        
Total intangible asset amortization expense $ 8,146 $ 7,068 $ 24,353 $ 21,356
v3.22.2.2
Goodwill and Other Intangible Assets, Net (Schedule of Finite-Lived Intangible Assets, Future Amortization Expense) (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Amortization Expense  
Remainder of 2022 $ 12,184
2023 51,171
2024 50,539
2025 49,691
2026 47,841
After 2026 $ 514,287
v3.22.2.2
Debt (Narrative) (Details)
9 Months Ended
Sep. 30, 2022
USD ($)
Secured Debt | Senior secured term loan A  
Debt Instrument [Line Items]  
Debt instrument term 5 years
Debt weighted average interest rate 4.87%
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 5.62%
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 4.87%
Revolving Credit Facility | Line of Credit  
Debt Instrument [Line Items]  
Debt instrument term 5 years
Remaining borrowing capacity $ 254,200,000
Outstanding borrowings $ 140,300,000
Commitment fee on unused portion 0.20%
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
v3.22.2.2
Debt (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Unamortized discount on term loan B and deferred debt issuance costs $ (6,404) $ (7,361)
Total debt 938,646 828,126
Current portion of long-term debt (15,250) (15,250)
Total long-term debt 923,396 812,876
Secured Debt | Senior secured term loan A    
Debt Instrument [Line Items]    
Long-term debt, gross 458,250 467,062
Secured Debt | Senior secured term loan B    
Debt Instrument [Line Items]    
Long-term debt, gross 346,500 349,125
Revolving Credit Facility | Line of Credit    
Debt Instrument [Line Items]    
Long-term debt, gross $ 140,300 $ 19,300
v3.22.2.2
Debt (Long-term Debt Maturity Schedule) (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Debt Disclosure [Abstract]  
Remainder of 2022 $ 3,812
2023 18,187
2024 29,938
2025 38,750
2026 522,738
After 2026 $ 331,625
v3.22.2.2
Stock-Based Compensation (Allocation of Recognized Period Costs) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based payment arrangement, expense $ 5,022 $ 3,282 $ 15,973 $ 12,235
Cost of sales        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based payment arrangement, expense 749 649 2,355 2,586
Selling, general and administrative        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based payment arrangement, expense 3,710 2,177 11,563 8,747
Research, development and engineering        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based payment arrangement, expense 209 302 872 748
Restructuring and other charges        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based payment arrangement, expense 354 154 1,183 154
RSUs and PRSUs        
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Share-based payment arrangement, expense $ 5,022 $ 3,282 $ 15,973 $ 12,235
v3.22.2.2
Stock-Based Compensation (Stock Options Activity) (Details)
$ / shares in Units, $ in Millions
9 Months Ended
Sep. 30, 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 3 months 18 days
Options Exercisable, Aggregate Intrinsic Value | $ $ 6.0
v3.22.2.2
Stock-Based Compensation (Narrative) (Details)
9 Months Ended
Sep. 30, 2022
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Requisite service period 3 years
Award vesting period 1 year
PRSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Requisite service period 3 years
Performance period 5 years
v3.22.2.2
Stock-Based Compensation (Restricted Stock and Restricted Stock Units Activity) (Details)
9 Months Ended
Sep. 30, 2022
$ / shares
shares
RSUs  
Time-Vested and Performance-Vested Activity  
Nonvested, beginning (in shares) | shares 248,131
Granted (in shares) | shares 185,180
Vested (in shares) | shares (95,823)
Forfeited (in shares) | shares (24,541)
Nonvested, ending (in shares) | shares 312,947
Weighted Average Grant Date Fair Value  
Nonvested, beginning (in dollars per share) | $ / shares $ 81.14
Granted (in dollars per share) | $ / shares 78.32
Vested (in dollars per share) | $ / shares 79.21
Forfeited (in dollars per share) | $ / shares 79.69
Nonvested, ending (in dollars per share) | $ / shares $ 80.17
PRSUs  
Time-Vested and Performance-Vested Activity  
Nonvested, beginning (in shares) | shares 198,869
Granted (in shares) | shares 131,393
Forfeited (in shares) | shares (52,448)
Nonvested, ending (in shares) | shares 277,814
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 99.30
Nonvested, ending (in dollars per share) | $ / shares $ 90.13
v3.22.2.2
Stock-Based Compensation (Valuation Assumptions) (Details) - PRSUs - $ / shares
9 Months Ended
Sep. 30, 2022
Oct. 01, 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%
Weighted average illiquidity discount 9.25% 8.19%
Restriction period 6 months 6 months
v3.22.2.2
Restructuring and Other Charges (Schedule of Restructuring And Other Charges Components) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Restructuring and Related Activities [Abstract]        
Restructuring charges $ 1,919 $ 1,727 $ 3,017 $ 2,572
Acquisition and integration costs 597 182 5,866 292
Other general expenses 626 554 1,127 793
Total restructuring and other charges $ 3,142 $ 2,463 $ 10,010 $ 3,657
v3.22.2.2
Restructuring and Other Charges (Schedule of Restructuring Restructuring-Related Costs) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Restructuring charges:        
Restructuring and other charges $ 1,919 $ 1,727 $ 3,017 $ 2,572
Total restructuring and restructuring-related charges 3,258   5,895  
Cost of sales        
Restructuring charges:        
Total restructuring and restructuring-related charges 455   789  
Selling, general and administrative        
Restructuring charges:        
Total restructuring and restructuring-related charges 563   1,265  
Research, development and engineering        
Restructuring charges:        
Total restructuring and restructuring-related charges $ 321   $ 824  
v3.22.2.2
Restructuring and Other Charges (Narrative) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Restructuring Cost and Reserve [Line Items]        
Charges incurred, net of reversals $ 1,919 $ 1,727 $ 3,017 $ 2,572
Acquisition and integration costs 597 $ 182 5,866 $ 292
Oscor And Aran Acquisitions        
Restructuring Cost and Reserve [Line Items]        
Acquisition and integration costs     5,900  
2021 SRA Initiatives        
Restructuring Cost and Reserve [Line Items]        
Costs incurred since inception 2,800   2,800  
2021 SRA Initiatives | Minimum        
Restructuring Cost and Reserve [Line Items]        
Expected costs 5,000   5,000  
2021 SRA Initiatives | Maximum        
Restructuring Cost and Reserve [Line Items]        
Expected costs 8,000   8,000  
Strategic reorganization and alignment        
Restructuring Cost and Reserve [Line Items]        
Costs incurred since inception 2,000   2,000  
Charges incurred, net of reversals 1,100   2,053  
Employee Severance | 2022 OE Initiatives        
Restructuring Cost and Reserve [Line Items]        
Costs incurred since inception 1,600   1,600  
Employee Severance | 2022 OE Initiatives | Minimum        
Restructuring Cost and Reserve [Line Items]        
Expected costs 3,000   3,000  
Employee Severance | 2022 OE Initiatives | Maximum        
Restructuring Cost and Reserve [Line Items]        
Expected costs 5,000   5,000  
Employee Severance | 2021 OE Initiatives        
Restructuring Cost and Reserve [Line Items]        
Costs incurred since inception 4,900   4,900  
Employee Severance | 2021 OE Initiatives | Minimum        
Restructuring Cost and Reserve [Line Items]        
Expected costs 4,000   4,000  
Employee Severance | 2021 OE Initiatives | Maximum        
Restructuring Cost and Reserve [Line Items]        
Expected costs $ 5,000   $ 5,000  
v3.22.2.2
Restructuring and Other Charges (Schedule of Restructuring Reserve By Type of Cost) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Restructuring Reserve [Roll Forward]        
Beginning balance     $ 432  
Charges incurred, net of reversals $ 1,919 $ 1,727 3,017 $ 2,572
Cash payments     (1,346)  
Ending balance 2,103   2,103  
Operational excellence initiatives        
Restructuring Reserve [Roll Forward]        
Beginning balance     298  
Charges incurred, net of reversals     964  
Cash payments     (1,194)  
Ending balance 68   68  
Strategic reorganization and alignment        
Restructuring Reserve [Roll Forward]        
Beginning balance     134  
Charges incurred, net of reversals 1,100   2,053  
Cash payments     (152)  
Ending balance $ 2,035   $ 2,035  
v3.22.2.2
Income Taxes (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Dec. 31, 2021
Income Tax Disclosure [Abstract]          
Effective income tax rate 5.50% 4.80% 12.80% 7.50%  
Income before provision for income taxes $ 16,995 $ 23,179 $ 55,366 $ 78,935  
Discrete tax benefits 700 1,600 200 6,100  
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit   $ 3,500   $ 3,500  
Unrecognized tax benefits 6,600   6,600    
Unrecognized tax benefits that would impact effective tax rate 6,500   6,500    
Accrued payroll taxes $ 4,800   $ 4,800   $ 4,800
v3.22.2.2
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2022
USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]  
Balance at beginning of period $ 509
Additions to warranty reserve, net of reversals (13)
Adjustments to pre-existing warranties (375)
Balance at end of period $ 121
v3.22.2.2
Earnings Per Share (“EPS”) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Numerator for basic and diluted EPS:        
Net income $ 16,057 $ 22,066 $ 48,260 $ 73,019
Denominator for basic and diluted EPS:        
Weighted average shares outstanding - Basic (in shares) 33,145 33,008 33,116 32,982
Dilutive effect of share-based awards (in shares) 191 301 213 268
Weighted average shares outstanding - Diluted (in shares) 33,336 33,309 33,329 33,250
Basic EPS (in dollars per share) $ 0.48 $ 0.67 $ 1.46 $ 2.21
Diluted EPS (in dollars per share) $ 0.48 $ 0.66 $ 1.45 $ 2.20
RSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Securities excluded from calculation of earnings per share (in shares) 30 1 13 4
PRSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Securities excluded from calculation of earnings per share (in shares) 162 83 164 70
v3.22.2.2
Stockholders' Equity (Shares Issued and Outstanding) (Details) - shares
9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Class Of Stock [Roll Forward]    
Shares outstanding at beginning of period (in shares) 33,063,336  
Shares outstanding at ending of period (in shares) 33,130,993  
Common Stock    
Class Of Stock [Roll Forward]    
Shares outstanding at beginning of period (in shares) 33,063,336 32,908,178
Stock options exercised (in shares) 0 27,002
Shares outstanding at ending of period (in shares) 33,130,993 33,016,984
Restricted Stock | Common Stock    
Class Of Stock [Roll Forward]    
Vesting of RSUs, net of shares withheld to cover taxes (in shares) 67,657 81,804
v3.22.2.2
Stockholders' Equity (Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period $ 1,363,451 $ 1,314,572 $ 1,354,697 $ 1,271,055
Unrealized loss (gain) on cash flow hedges (118) (242) 1,908 (798)
Balance, ending balance 1,355,064 1,332,253 1,355,064 1,332,253
Foreign exchange contracts        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Unrealized loss (gain) on cash flow hedges 167 (162) (194) (1,070)
Interest rate swap        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Unrealized loss (gain) on cash flow hedges (4) 461 1,018 2,064
Defined Benefit Plan Liability        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period (890) (1,095) (890) (1,095)
Balance, ending balance (890) (1,095) (890) (1,095)
Cash Flow Hedges        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period 1,110 (4,780) (2,291) (4,956)
Reclassification from AOCI, before tax (150) (306) 2,415 (1,010)
Reclassification from AOCI, tax 32 64 (507) 212
Balance, ending balance 1,167 (4,708) 1,167 (4,708)
Cash Flow Hedges | Foreign exchange contracts        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Reclassification from AOCI, before tax 211 (206) (246) (1,355)
Reclassification from AOCI, tax (44) 44 52 285
Cash Flow Hedges | Interest rate swap        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Reclassification from AOCI, before tax (4) 584 1,289 2,613
Reclassification from AOCI, tax 0 (123) (271) (549)
Foreign Currency Translation Adjustment        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period (5,441) 43,666 29,720 57,546
Reclassification from AOCI, before tax (29,364) (7,836) (64,525) (21,716)
Reclassification from AOCI, tax 0 0 0 0
Unrealized loss (gain) on cash flow hedges (29,364) (7,836) (64,525) (21,716)
Balance, ending balance (34,805) 35,830 (34,805) 35,830
Total Pre-Tax Amount        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period (5,221) 37,791 26,539 51,495
Balance, ending balance (34,528) 30,027 (34,528) 30,027
Tax        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period (63) 1,160 651 1,197
Balance, ending balance (75) 1,145 (75) 1,145
Net-of-Tax Amount        
AOCI Attributable to Parent, Net of Tax [Roll Forward]        
Balance, beginning of period (5,284) 38,951 27,190 52,692
Balance, ending balance $ (34,603) $ 31,172 $ (34,603) $ 31,172
v3.22.2.2
Financial Instruments and Fair Value Measurements (Assets and Liabilities Recorded at Fair Value on a Recurring Basis) (Details) - Fair Value - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Interest rate swap $ 1,515  
Assets: Foreign currency hedging contracts 749 $ 687
Liabilities: Foreign currency hedging contracts 1,097  
Liabilities: Interest rate swap   2,978
Liabilities: Contingent consideration 8,272 2,415
Quoted Prices in Active Markets (Level 1)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Interest rate swap 0  
Assets: Foreign currency hedging contracts 0 0
Liabilities: Foreign currency hedging contracts 0  
Liabilities: Interest rate swap   0
Liabilities: Contingent consideration 0 0
Significant Other Observable Inputs (Level 2)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Interest rate swap 1,515  
Assets: Foreign currency hedging contracts 749 687
Liabilities: Foreign currency hedging contracts 1,097  
Liabilities: Interest rate swap   2,978
Liabilities: Contingent consideration 0 0
Significant Unobservable Inputs (Level 3)    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets: Interest rate swap 0  
Assets: Foreign currency hedging contracts 0 0
Liabilities: Foreign currency hedging contracts 0  
Liabilities: Interest rate swap   0
Liabilities: Contingent consideration $ 8,272 $ 2,415
v3.22.2.2
Financial Instruments and Fair Value Measurements (Schedule of Interest Rate Swaps) (Details) - Interest Rate Swap Maturing June 2023 - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 100,000,000  
Pay Fixed Rate 2.1785%  
Receive Current Floating Rate 3.08%  
Fair Value $ 1,515,000  
Other long-term liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount   $ 150,000,000
Pay Fixed Rate   2.1785%
Receive Current Floating Rate   0.1013%
Fair Value   $ (2,978,000)
v3.22.2.2
Financial Instruments and Fair Value Measurements (Schedule of Foreign Currency Contracts) (Details) - Foreign Exchange Contract Maturing December 2022 - Designated as Hedging Instrument
$ in Thousands
Sep. 30, 2022
USD ($)
$ / €
$ / $
$ / $
Dec. 31, 2021
USD ($)
$ / $
$ / $
$ / €
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 5,418  
$/Foreign currency (in dollars per foreign currency) | $ / $ 0.0455  
Fair Value $ 490  
Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 3,420  
$/Foreign currency (in dollars per foreign currency) | $ / € 1.1383  
Fair Value $ (464)  
Prepaid expenses and other current assets    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 2,143  
$/Foreign currency (in dollars per foreign currency) | $ / $ 0.0216  
Fair Value $ 259  
Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 3,387  
$/Foreign currency (in dollars per foreign currency) | $ / € 1.1266  
Fair Value $ (431)  
Accrued expenses and other current liabilities    
Derivatives, Fair Value [Line Items]    
Notional Amount $ 1,978  
$/Foreign currency (in dollars per foreign currency) | $ / € 1.0952  
Fair Value $ (202)  
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
v3.22.2.2
Financial Instruments and Fair Value Measurements (Impact of Cash Flow Hedges on Other Comprehensive Income (Loss), AOCI and the Condensed Consolidated Statements of Operations) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Total sales $ 342,680 $ 305,574 $ 1,003,673 $ 908,064
Cost of sales 255,962 223,702 742,583 652,960
Operating expenses 57,460 48,782 176,628 148,056
Interest expense 10,676 10,053 24,417 26,117
Sales        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) on Cash Flow Hedge Activity (876) (240) (1,301) (203)
Sales | Foreign exchange contracts        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized Gain (Loss) Recognized in OCI (847) (236) (2,528) (977)
Cost of sales        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) on Cash Flow Hedge Activity 563 434 1,309 1,508
Cost of sales | Foreign exchange contracts        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized Gain (Loss) Recognized in OCI 91 (235) 1,456 (69)
Operating expenses        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) on Cash Flow Hedge Activity 102 12 238 50
Operating expenses | Foreign exchange contracts        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized Gain (Loss) Recognized in OCI (72) 49 283 26
Interest expense        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Amount of Gain (Loss) on Cash Flow Hedge Activity 4 (584) (1,289) (2,613)
Interest expense | Interest rate swap        
Derivative Instruments and Hedging Activities Disclosures [Line Items]        
Unrealized Gain (Loss) Recognized in OCI $ 678 $ 119 $ 3,204 $ 10
v3.22.2.2
Financial Instruments and Fair Value Measurements (Narrative) (Details)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
USD ($)
contract
Sep. 30, 2022
USD ($)
contract
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   $ 1.2  
Chinese Venture Capital Fund      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Equity method investment ownership 7.10% 7.10%  
Accrued expenses and other current liabilities      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Contingent consideration liability, current $ 7.6 $ 7.6 $ 0.7
Other long-term liabilities      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Contingent consideration liability, noncurrent $ 0.7 $ 0.7 $ 1.5
Not Designated as Hedging Instrument | Foreign exchange contracts      
Fair Value Measurement Inputs and Valuation Techniques [Line Items]      
Number of contract outstanding | contract 2 2 1
National amount $ 16.4 $ 16.4 $ 15.0
Derivative asset, fair value (0.1) (0.1)  
Fair Value     $ 0.1
Unrealized gain on cash flow hedges, pretax $ 0.9 $ 1.6  
v3.22.2.2
Financial Instruments and Fair Value Measurements (Estimated Fair Values for Contingent Consideration) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]        
Fair value measurement at beginning of period $ 9,072 $ 2,281 $ 2,415 $ 3,900
Amount recorded for current year acquisitions 0 0 7,375 0
Fair value measurement adjustment (347) 0 (293) 0
Payments 0 0 (493) (1,621)
Foreign currency translation (453) 1 (732) 3
Fair value measurement at end of period $ 8,272 $ 2,282 $ 8,272 $ 2,282
v3.22.2.2
Financial Instruments and Fair Value Measurements (Contingent Consideration Measurement Inputs) (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Dec. 31, 2021
USD ($)
InoMec Ltd    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Maximum Payout (undiscounted) $ 5,375 $ 6,750
Aran    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Maximum Payout (undiscounted) 9,815  
Fair Value    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value 8,272 2,415
Fair Value | InoMec Ltd    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value 1,629 $ 2,415
Fair Value | Aran    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Fair Value $ 6,643  
Fair Value | Revenue volatility | Weighted Average | InoMec Ltd    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average or Range 0.267 0.290
Fair Value | Discount rate | Weighted Average | InoMec Ltd    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average or Range 0.018 0.018
Fair Value | Discount rate | Weighted Average | Aran    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average or Range 0.097  
Fair Value | Probability of occurrence | Minimum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average or Range 0  
Fair Value | Probability of occurrence | Maximum    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted Average or Range 0.50  
v3.22.2.2
Financial Instruments and Fair Value Measurements (Equity Method Investments) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Dec. 31, 2021
Fair Value Disclosures [Abstract]          
Equity method investment $ 10,581   $ 10,581   $ 16,192
Non-marketable equity securities 5,637   5,637   5,637
Total equity investments 16,218   16,218   $ 21,829
Equity method investment (gain) loss $ 2,887 $ (152) $ 5,611 $ 1,867  
v3.22.2.2
Segment Information (Narrative) (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
USD ($)
Oct. 01, 2021
USD ($)
Sep. 30, 2022
USD ($)
segment
Oct. 01, 2021
USD ($)
Segment Reporting, Revenue Reconciling Item [Line Items]        
Number of reportable segments | segment     2  
Total sales $ 342,680 $ 305,574 $ 1,003,673 $ 908,064
Operating Segments | Medical        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales 330,912 296,121 972,773 880,712
Cardio & Vascular | Operating Segments | Medical        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales 174,131 152,276 513,772 438,165
Cardio & Vascular | Operating Segments | Medical | Revision of Prior Period, Adjustment        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales   (8,600)   (24,500)
Advanced Surgical, Orthopedics & Portable Medical | Operating Segments | Medical        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales $ 26,150 22,420 $ 69,101 65,759
Advanced Surgical, Orthopedics & Portable Medical | Operating Segments | Medical | Revision of Prior Period, Adjustment        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales   $ (6,300)   $ (17,600)
v3.22.2.2
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales $ 342,680 $ 305,574 $ 1,003,673 $ 908,064
Operating Segments | Medical        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales 330,912 296,121 972,773 880,712
Operating Segments | Medical | Cardio & Vascular        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales 174,131 152,276 513,772 438,165
Operating Segments | Medical | Cardiac Rhythm Management & Neuromodulation        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales 130,631 121,425 389,900 376,788
Operating Segments | Medical | Advanced Surgical, Orthopedics & Portable Medical        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales 26,150 22,420 69,101 65,759
Operating Segments | Non-Medical        
Segment Reporting, Revenue Reconciling Item [Line Items]        
Total sales $ 11,768 $ 9,453 $ 30,900 $ 27,352
v3.22.2.2
Segment Information (Reconciliation of Operating Profit (Loss) from Segments to Consolidated) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Segment Reporting Information [Line Items]        
Operating income $ 29,258 $ 33,090 $ 84,462 $ 107,048
Unallocated expenses, net (12,263) (9,911) (29,096) (28,113)
Income before taxes 16,995 23,179 55,366 78,935
Operating Segments        
Segment Reporting Information [Line Items]        
Operating income 50,994 54,363 152,012 169,685
Operating Segments | Medical        
Segment Reporting Information [Line Items]        
Operating income 49,176 52,347 147,904 164,311
Operating Segments | Non-Medical        
Segment Reporting Information [Line Items]        
Operating income 1,818 2,016 4,108 5,374
Segment Reconciling Items        
Segment Reporting Information [Line Items]        
Operating income $ (21,736) $ (21,273) $ (67,550) $ (62,637)
v3.22.2.2
Revenue From Contracts With Customers (Narrative) (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Concentration Risk [Line Items]        
Revenue recognized that was included in contract liability balance at beginning of period $ 0.5 $ 0.3 $ 2.2 $ 1.4
Revenue Benchmark | Product Concentration Risk | Transferred over Time        
Concentration Risk [Line Items]        
Concentration risk percentage 28.00% 33.00% 30.00% 34.00%
v3.22.2.2
Revenue From Contracts With Customers (Disaggregated Revenue) (Details) - Revenue from contract with customer benchmark - Customer Concentration Risk
3 Months Ended 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Medical | Customer A        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 18.00% 17.00% 18.00% 20.00%
Medical | Customer B        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 16.00% 17.00% 17.00% 17.00%
Medical | Customer C        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 13.00% 14.00% 13.00% 14.00%
Medical | All other customers        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 53.00% 52.00% 52.00% 49.00%
Non-Medical | Customer D        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 25.00% 38.00% 33.00% 34.00%
Non-Medical | Customer E        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 15.00%      
Non-Medical | All other customers        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 60.00% 62.00% 67.00% 66.00%
v3.22.2.2
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 9 Months Ended
Sep. 30, 2022
Oct. 01, 2021
Sep. 30, 2022
Oct. 01, 2021
Medical | United States        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 54.00% 56.00% 54.00% 54.00%
Medical | All other countries        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 46.00% 44.00% 46.00% 46.00%
Non-Medical | United States        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 74.00% 68.00% 70.00% 69.00%
Non-Medical | All other countries        
Disaggregation of Revenue [Line Items]        
Concentration risk percentage 26.00% 32.00% 30.00% 31.00%
v3.22.2.2
Revenue From Contracts With Customers Contract with Customer (Assets and Liability) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]    
Contract assets $ 71,427 $ 64,743
Contract liabilities $ 6,156 $ 3,776