TELEFLEX INCTFX
TELEFLEX INC Income Taxes Disclosure
Income taxes
The following table summarizes the components of the provision for income taxes from continuing operations:
| 2025 | 2024 | 2023 | |||||||||||||||
| Current: | |||||||||||||||||
| Federal | $ | 33,589 | $ | 40,495 | $ | 27,791 | |||||||||||
| State | 7,632 | 12,035 | 5,918 | ||||||||||||||
| Non-U.S. | 27,258 | 29,727 | 17,765 | ||||||||||||||
| Deferred: | |||||||||||||||||
| Federal | (63,445) | (85,114) | (16,484) | ||||||||||||||
| State | (5,584) | (9,386) | 5,069 | ||||||||||||||
| Non-U.S. | (33,427) | (18,658) | 1,814 | ||||||||||||||
| $ | (33,977) | $ | (30,901) | $ | 41,873 | ||||||||||||
At December 31, 2025, the cumulative unremitted earnings of subsidiaries outside the U.S. that are considered non-permanently reinvested and for which taxes have been provided approximated $2.8 billion. At December 31, 2025, no cumulative unremitted earnings of subsidiaries outside the U.S. are considered permanently reinvested.
The following table summarizes the U.S. and non-U.S. components of income from continuing operations before taxes:
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S. | $ | (40,445) | $ | (85,873) | $ | (33,600) | |||||||||||
| Non-U.S. | 64,998 | 112,163 | 218,990 | ||||||||||||||
| $ | 24,553 | $ | 26,290 | $ | 185,390 | ||||||||||||
Reconciliations between the statutory federal income tax rate and the effective income tax rate are as follows:
| Year Ended December 31, 2025 | |||||||||||
| Amount | Percent | ||||||||||
| Federal statutory rate | $ | 5,156 | 21.0 | % | |||||||
State taxes, net of federal benefit(1) | 1,373 | 5.6 | % | ||||||||
Foreign tax effects | |||||||||||
Cyprus | |||||||||||
Net deduction on equity | (10,701) | (43.6) | % | ||||||||
Statutory tax rate difference between Cyprus and United States | (10,500) | (42.8) | % | ||||||||
| Other | (473) | (1.9) | % | ||||||||
Ireland | |||||||||||
Nontaxable or Nondeductible Items | 2,642 | 10.8 | % | ||||||||
Group Relief | (2,574) | (10.5) | % | ||||||||
| Other | (1,463) | (6.0) | % | ||||||||
Mexico | |||||||||||
Withholding taxes | (3,291) | (13.4) | % | ||||||||
| Other | (2,012) | (8.2) | % | ||||||||
Netherlands | |||||||||||
Global Minimum Tax | 5,802 | 23.6 | % | ||||||||
| Other | 675 | 2.7 | % | ||||||||
Switzerland | |||||||||||
Statutory tax rate difference between Switzerland and United States | 13,461 | 54.8 | % | ||||||||
State and local taxes | (11,596) | (47.2) | % | ||||||||
| Other | (14) | (0.1) | % | ||||||||
| Other Foreign Jurisdictions | 1,617 | 6.6 | % | ||||||||
| Effect of Changes in Tax Laws or Rates Enacted in the Current Period | (1,192) | (4.9) | % | ||||||||
| Effect of Cross-Border Tax Laws | |||||||||||
| Net CFC Tested Income (NCTI), net of tax credits | 5,673 | 23.1 | % | ||||||||
Subpart F inclusions, net of tax credits | (3,323) | (13.5) | % | ||||||||
Foreign Derived Deduction Eligible Income (FDDEI) deduction | (9,271) | (37.8) | % | ||||||||
| Other | — | — | % | ||||||||
| Tax Credits | |||||||||||
Research and development tax credits | (2,610) | (10.6) | % | ||||||||
| Changes in Valuation Allowance | — | — | % | ||||||||
| Nontaxable or Nondeductible Items | |||||||||||
Forward currency contract settlement | (17,263) | (70.3) | % | ||||||||
Stock compensation | 4,052 | 16.5 | % | ||||||||
Contingent consideration | 3,457 | 14.1 | % | ||||||||
| Other | (2,308) | (9.4) | % | ||||||||
| Changes in prior year unrecognized tax benefits | (1,164) | (4.7) | % | ||||||||
Other | 1,870 | 7.7 | % | ||||||||
Effective Tax Rate | $ | (33,977) | (138.4) | % | |||||||
(1) State and Local Taxes in New York, California, New York City, and Illinois made up the majority of the tax effect in this category
| 2024 | 2023 | ||||||||||
| Federal statutory rate | 21.0 | % | 21.0 | % | |||||||
| Tax effect of international items | (66.6) | (3.1) | |||||||||
Pension settlement charge | (110.4) | — | |||||||||
Legal entity rationalization - deferred taxes | — | 13.4 | |||||||||
| Excess tax benefits related to share-based compensation | 5.6 | (0.7) | |||||||||
| State taxes, net of federal benefit | 9.7 | (0.3) | |||||||||
| Uncertain tax contingencies | (3.5) | (1.3) | |||||||||
| Contingent consideration | 10.9 | (3.1) | |||||||||
| Goodwill impairment charge | — | — | |||||||||
| Research and development tax credit | (11.4) | (1.7) | |||||||||
| Other, net | 27.1 | (1.8) | |||||||||
| (117.6) | % | 22.6 | % | ||||||||
The effective income tax rate for 2025 was (138.4)% compared to (117.6)% for 2024.The effective income tax rate for 2025 reflects a tax benefit associated with the impairment of the Titan SGS asset group. The effective income tax rate for 2025 also reflects nontaxable favorable adjustments incurred in relation to foreign currency exchange rates, largely stemming from non-designated foreign currency forward contracts designed to hedge against the cash consideration for the VI Business acquisition.
Tax benefits were recognized in both 2024 and 2023 related to the pension settlement charge recognized in connection with the termination of the TRIP. The effective income tax rate for 2023 reflects the impact of deferred charges resulting from a legal entity rationalization, the impact of a non-taxable contingent consideration adjustment recognized in connection with a decrease in the estimated fair value of our contingent consideration liabilities and a tax expense resulting from a deferred charge relating to the 2022 Restructuring Plan.
We are routinely subject to examinations by various taxing authorities. In conjunction with these examinations and as a regular practice, we establish and adjust reserves with respect to its uncertain tax positions to address developments related to those positions. We realized a net benefit of $1.2 million, $0.9 million and $2.3 million in 2025, 2024 and 2023 respectively, as a result of reducing our reserves with respect to uncertain tax positions, principally due to the expiration of a number of applicable statutes of limitations.
The following table summarizes significant components of our deferred tax assets and liabilities at December 31, 2025 and 2024:
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Tax loss and credit carryforwards | $ | 116,366 | $ | 106,471 | |||||||
| Lease Liabilities | 28,779 | 26,263 | |||||||||
| Pension | — | — | |||||||||
| Reserves and accruals | 67,169 | 71,800 | |||||||||
Investment in subsidiaries | 59,787 | — | |||||||||
| Other | 78,478 | 8,375 | |||||||||
| Less: valuation allowances | (88,708) | (88,413) | |||||||||
| Total deferred tax assets | 261,871 | 124,496 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Property, plant and equipment | 32,928 | 8,445 | |||||||||
| Intangibles — stock acquisitions | 317,931 | 317,896 | |||||||||
| Unremitted non-U.S. earnings | 49,051 | 51,638 | |||||||||
| Lease Assets | 28,779 | 26,263 | |||||||||
| Other | 4,338 | 6,424 | |||||||||
| Total deferred tax liabilities | 433,027 | 410,666 | |||||||||
| Net deferred tax liability | $ | (171,156) | $ | (286,170) | |||||||
Under the tax laws of various jurisdictions in which we operate, deductions or credits that cannot be fully utilized for tax purposes during the current year may be carried forward, subject to statutory limitations, to reduce taxable income or taxes payable in a future tax year. At December 31, 2025, the tax effect of such carryforwards approximated $116.4 million. Of this amount, $21.9 million has no expiration date, $17.1 million expires after 2025 but before the end of 2030 and $77.4 million expires after 2030. A portion of these carryforwards consists of tax losses and credits obtained by us as a result of acquisitions; the utilization of these carryforwards is subject to an annual limitation imposed by Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), which limits a company’s ability to deduct prior net operating losses following a more than 50 percent change in ownership. It is not expected that the Section 382 limitation will prevent us ultimately from utilizing the applicable loss carryforwards. The determination of state net operating loss carryforwards is dependent upon the U.S. subsidiaries’ taxable income or loss, the state’s proportion of each subsidiary's taxable net income and the application of state laws, which can change from year to year and impact the amount of such carryforward.
The valuation allowance for deferred tax assets of $88.7 million and $88.4 million at December 31, 2025 and 2024, respectively, relates principally to the uncertainty of our ability to utilize certain deferred tax assets, primarily tax loss and credit carryforwards in various jurisdictions. The valuation allowance was calculated in accordance with applicable accounting standards, which require that a valuation allowance be established and maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized.
Uncertain Tax Positions: The following table is a reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended December 31, 2025, 2024 and 2023:
| 2025 | 2024 | 2023 | |||||||||||||||
Balance at January 1 | $ | 1,021 | $ | 2,020 | $ | 4,260 | |||||||||||
Increase in unrecognized tax benefits related to prior years | 3,077 | — | — | ||||||||||||||
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations | (959) | (902) | (2,287) | ||||||||||||||
(Decrease) increase in unrecognized tax benefits due to foreign currency translation | 90 | (97) | 47 | ||||||||||||||
Balance at December 31 | $ | 3,229 | $ | 1,021 | $ | 2,020 | |||||||||||
The total liabilities associated with the unrecognized tax benefits that, if recognized, would impact the effective tax rate for continuing operations, were $3.2 million at December 31, 2025.
We accrue interest and penalties associated with unrecognized tax benefits in income tax expense in the consolidated statements of income, and the corresponding liability is included in the consolidated balance sheets. The net interest expense (benefit) and penalties reflected in income from continuing operations for the year ended December 31, 2025 was $0.0 million and $(0.4) million, respectively; for the year ended December 31, 2024, $0.1 million and $(0.3) million, respectively; and for the year ended December 31, 2023, $0.1 million and $(0.6) million, respectively. The liabilities in the consolidated balance sheets for interest and penalties at December 31, 2025 were $0.1 million and $0.2 million, respectively, and at December 31, 2024, $0.3 million and $0.4 million, respectively.
The taxable years for which the applicable statute of limitations remains open by major tax jurisdictions are as follows:
| Beginning | Ending | ||||||||||
| U.S. | 2017 | 2025 | |||||||||
| Canada | 2021 | 2025 | |||||||||
| China | 2020 | 2025 | |||||||||
Cyprus | 2020 | 2025 | |||||||||
| Czech Republic | 2022 | 2025 | |||||||||
| France | 2023 | 2025 | |||||||||
| Germany | 2011 | 2025 | |||||||||
| India | 2018 | 2025 | |||||||||
| Ireland | 2021 | 2025 | |||||||||
| Italy | 2020 | 2025 | |||||||||
| Malaysia | 2021 | 2025 | |||||||||
| Singapore | 2021 | 2025 | |||||||||
We are routinely subject to income tax examinations by various taxing authorities. As of December 31, 2025, the most significant tax examinations in process were in Germany, the United States, and Sweden. The date at which these examinations may be concluded and the ultimate outcome of the examinations are uncertain. As a result of the uncertain outcome of these ongoing examinations, future examinations or the expiration of statutes of limitation, it is reasonably possible that the related unrecognized tax benefits for tax positions taken could materially change from those recorded as liabilities at December 31, 2025.
The following tables summarize the components of income taxes paid from continuing operations, net of refunds:
| Year Ended December 31, | |||||
| 2025 | |||||
U.S. Federal | $ | 63,544 | |||
U.S. State | 9,274 | ||||
Foreign | |||||
Malta (1) | 10,321 | ||||
Ireland | 9,279 | ||||
Italy | 7,193 | ||||
Other | 18,047 | ||||
Total Foreign | 44,840 | ||||
| Income taxes paid, net of refunds | $ | 117,658 | |||
(1) Income tax payments in Malta related to prior tax year return payments
Year Ended December 31, | |||||||||||
| 2024 | 2023 | ||||||||||
| Income taxes paid, net of refunds | $ | 110,284 | $ | 78,328 | |||||||
On July 4, 2025, the One Big Beautiful Bill (“OBBB”) Act was signed into law. The OBBB permanently extends several key provisions of the Tax Cuts and Jobs Act, including 100 percent bonus depreciation, domestic research cost expensing, and makes substantive modifications to the international tax framework. The legislation contains multiple effective dates, with certain provisions effective in 2025 and others phased in through 2027. The OBBB did not have a material impact on our 2025 results of operations. We continue to evaluate the impact of the OBBB's provisions that take effect in future years.
A significant number of jurisdictions, including EU member states, have enacted legislation to establish a 15% global minimum tax in accordance with both the established Pillar Two framework and guidance subsequently published by the Organization for Economic Co-operation and Development (the "OECD"). On January 5th, 2026, the OECD/G20 released the Side-by-Side package ("SbS"), implemented as administrative guidance and modifying
the operation of Pillar Two rules. The SbS package introduces simplifications and new safe harbors for U.S. and other multinational companies where domestic and international tax systems meet robust requirements to coexist with Pillar 2. Such safe harbor would fully exempt U.S.-parented groups from the application of two of the three Pillar 2 top up taxes.
The SbS package is expected to be available for fiscal years beginning on or after January 1, 2026. However, the safe harbors are not self‑executing and require domestic legislation by each Inclusive Framework member, subject to local legislative processes and timelines, as well as potential European Union ("EU") guidance related to the EU Minimum Tax Directive. We continue to monitor ongoing developments and assess the potential impact of the SbS package on our 2026 results of operations and future cash tax obligations.
The SbS package also extends the current Transitional Country-by-Country Reporting (CbCR) Safe Harbor by one year, through the end of fiscal year 2027.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 25, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.