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Pension and other postretirement benefits | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
Pension and other postretirement benefits | Pension and other postretirement benefits We have a number of defined benefit pension and postretirement plans covering eligible U.S. and non-U.S. employees. The defined benefit pension plans are noncontributory. The benefits under these plans are based primarily on years of service and employees’ pay near retirement. Our funding policy for U.S. plans is to contribute annually, at a minimum, amounts required by applicable laws and regulations. Obligations under non-U.S. plans are systematically provided for by depositing funds with trustees or by book reserves. As of December 31, 2024, no further benefits are being accrued under the U.S. defined benefit pension plans and the other postretirement benefit plans, other than certain postretirement benefit plans covering employees subject to a collective bargaining agreement. In 2023, we began the execution of a plan to terminate the TRIP, a U.S. defined benefit pension plan. The TRIP is subject to Title IV of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and, therefore, must be terminated in accordance with the requirements of ERISA and the process governed by the Pension Benefit Guaranty Corporation (the “PBGC”). The termination date of the TRIP was August 1, 2023, which is the date upon which the timing of the requirements for the formal termination process is based. On September 8, 2023, we filed the required notice regarding the TRIP termination with the PBGC. The termination process requires that all TRIP benefits be distributed to participants, beneficiaries and alternate payees or transferred to a group annuity contract or the PBGC. In December 2023, we made payments to eligible participants, beneficiaries and alternate payees who elected the one-time lump sum distribution option offered in connection with the TRIP termination, resulting in the recognition of a pre-tax settlement charge of $45.2 million. In 2024, we purchased a group annuity contract, using TRIP assets, which resulted in the recognition of net pre-tax settlement charges of $132.7 million for the year-ended December 31, 2024. The participants, beneficiaries, and alternate payees whose benefits were transferred to the group annuity contract will each receive from such group annuity contract the full value of their benefit that accrued under the TRIP. The assets in the TRIP Trust exceed the estimated liability for amounts to be transferred to the PBGC for missing participants and beneficiaries (“surplus plan assets”) and as a result, we transferred $43.0 million of the surplus plan assets to a suspense account within the Teleflex 401(k) Savings Plan, a qualified defined contribution plan. These assets are restricted for future use in accordance with our election to use them to fund future employer contributions to participants in the Teleflex 401(k) Savings Plan. The surplus assets contributed to the suspense account remaining as of December 31, 2024 are included within prepaid and other current assets and other assets on the Consolidated Balance Sheet. For additional information regarding the surplus plan assets classified as restricted cash equivalents included within prepaid and other current assets and other assets for the year ended December 31, 2024, refer to Note 19 within the consolidated financial statements included in this report. Teleflex and certain of our subsidiaries provide medical, dental and life insurance benefits to pensioners or their survivors. The associated plans are unfunded and approved claims are paid from our funds. The following table provides information regarding the components of the net benefit (income) expense of the pension and postretirement benefit plans for the years ended December 31, 2024, 2023 and 2022:
| Pension |  | Other Benefits
| 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022
Service cost | $ | 823 |  |  | $ | 1,435 |  |  | $ | 1,346 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost | 2,940 |  |  | 17,297 |  |  | 10,776 |  |  | 384 |  |  | 824 |  |  | 477 |
Expected return on plan assets | (2,591) |  |  | (25,277) |  |  | (25,776) |  |  | — |  |  | — |  |  | — |
Net amortization and deferral | 1,849 |  |  | 8,536 |  |  | 7,900 |  |  | (2,664) |  |  | (1,564) |  |  | (1,258) |
Settlements, net | 132,732 |  |  | 45,244 |  |  | — |  |  | — |  |  | — |  |  | — |
Net benefit expense (income) | $ | 135,753 |  |  | $ | 47,235 |  |  | $ | (5,754) |  |  | $ | (2,280) |  |  | $ | (740) |  |  | $ | (781) |
Net benefit expense (income) is primarily included in selling, general and administrative expenses within the consolidated statements of income. The following table provides the weighted average assumptions for U.S. and foreign plans used in determining net benefit cost:
| Pension |  | Other Benefits
| 2024 |  | 2023 |  | 2022 |  | 2024 |  | 2023 |  | 2022
Discount rate | 4.7 | % |  | 5.1 | % |  | 2.8 | % |  | 5.0 | % |  | 5.1 | % |  | 2.7 | %
Rate of return | 4.8 | % |  | 7.3 | % |  | 5.6 | % |  |  |  |  |  |
Initial healthcare trend rate |  |  |  |  |  |  | 6.9 | % |  | 6.1 | % |  | 6.4 | %
Ultimate healthcare trend rate |  |  |  |  |  |  | 4.5 | % |  | 4.5 | % |  | 4.5 | %
The following table provides summarized information with respect to the pension and postretirement benefit plans, measured as of December 31, 2024 and 2023:
| Pension |  | Other Benefits
| 2024 |  | 2023 |  | 2024 |  | 2023
Benefit obligation, beginning of year | $ | 275,397 |  |  | $ | 356,757 |  |  | $ | 9,535 |  |  | $ | 18,620 |
Service cost | 823 |  |  | 1,435 |  |  | — |  |  | — |
Interest cost | 2,940 |  |  | 17,297 |  |  | 384 |  |  | 824 |
Actuarial loss (gain) | (7,798) |  |  | 11,557 |  |  | (2,150) |  |  | (508) |
Currency translation | (1,028) |  |  | 1,067 |  |  | — |  |  | — |
Benefits paid | (227,491) |  |  | (21,208) |  |  | (545) |  |  | (1,910) |
Liability gain due to settlement | (16,969) |  |  | (15,272) |  |  | — |  |  | — |
Medicare Part D reimbursement | — |  |  | — |  |  | 51 |  |  | (3) |
Plan amendments | — |  |  | — |  |  | — |  |  | (7,488) |
Settlements | — |  |  | (73,932) |  |  | — |  |  | — |
Administrative costs | (767) |  |  | (2,304) |  |  | — |  |  | — |
Projected benefit obligation, end of year | 25,107 |  |  | 275,397 |  |  | 7,275 |  |  | 9,535 |
Fair value of plan assets, beginning of year | 285,513 |  |  | 357,270 |  |  |  |  |
Actual return on plan assets | (5,241) |  |  | 23,740 |  |  |  |  |
Contributions | 1,663 |  |  | 1,276 |  |  |  |  |
Benefits paid | (227,491) |  |  | (95,139) |  |  |  |  |
Administrative costs | (767) |  |  | (2,304) |  |  |  |  |
Assets Transferred to Qualified Replacement Plan | (42,966) |  |  | — |  |  |  |  |
Currency translation | (179) |  |  | 670 |  |  |  |  |
Fair value of plan assets, end of year | 10,532 |  |  | 285,513 |  |  |  |  |
Funded status, end of year | $ | (14,575) |  |  | $ | 10,116 |  |  | $ | (7,275) |  |  | $ | (9,535) |
The actuarial gain for pension for the year ended December 31, 2024 was primarily due to an increase in the discount rate for the TRIP plan prior to its termination in Q1 2024 and an increase in the discount rate and financial assumption changes for non-US pension plans. The actuarial loss for pension for the year ended December 31, 2023 was primarily due to a decrease in the discount rate used to measure the obligation, offset by demographic gains. The accumulated benefit obligations (ABO) and the projected benefit obligations (PBO) for plans with ABO and PBO in excess of plan assets were $14.6 million and $15.1 million, respectively, at December 31, 2024 and $262.6 million and $263.2 million respectively, at December 31, 2023. The fair value of plan assets for plans with PBO and ABO in excess of plan assets were $0.0 million and $272.3 million at December 31, 2024 and December 31, 2023, respectively. The following table sets forth the amounts recognized in the consolidated balance sheet with respect to the pension and postretirement plans:
| Pension |  | Other Benefits
| 2024 |  | 2023 |  | 2024 |  | 2023
Other assets | $ | 477 |  |  | $ | 27,370 |  |  | $ | — |  |  | $ | — |
Payroll and benefit-related liabilities | (1,117) |  |  | (1,439) |  |  | (1,025) |  |  | (1,361) |
Pension and postretirement benefit liabilities | (13,935) |  |  | (15,815) |  |  | (6,250) |  |  | (8,174) |
Accumulated other comprehensive loss (gain) | 12,677 |  |  | 164,139 |  |  | (13,730) |  |  | (14,244) |
| $ | (1,898) |  |  | $ | 174,255 |  |  | $ | (21,005) |  |  | $ | (23,779) |
The following tables set forth the amounts recognized in accumulated other comprehensive income with respect to the plans:
| Pension
| Prior Service Cost |  | Net Loss or (Gain) |  | Deferred Taxes |  | Accumulated Other Comprehensive Loss, Net of Tax
Balance at December 31, 2022 | $ | 200 |  |  | $ | 219,355 |  |  | $ | (77,347) |  |  | $ | 142,208 |
Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period: |  |  |  |  |  |  |
Net amortization and deferral | (9) |  |  | (8,527) |  |  | 1,961 |  |  | (6,575) |
Amounts arising during the period: |  |  |  |  |  |  |
Actuarial changes in benefit obligation | — |  |  | (47,453) |  |  | 10,805 |  |  | (36,648) |
Impact of currency translation | — |  |  | 573 |  |  | (139) |  |  | 434 |
Balance at December 31, 2023 | 191 |  |  | 163,948 |  |  | (64,720) |  |  | 99,419 |
Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period: |  |  |  |  |  |  |
Net amortization and deferral | — |  |  | (1,849) |  |  | 446 |  |  | (1,403) |
Amounts arising during the period: |  |  |  |  |  |  |
Actuarial changes in benefit obligation (1) | — |  |  | (149,294) |  |  | 60,645 |  |  | (88,649) |
Impact of currency translation | — |  |  | (319) |  |  | 86 |  |  | (233) |
Balance at December 31, 2024 | $ | 191 |  |  | $ | 12,486 |  |  | $ | (3,543) |  |  | $ | 9,134 |
(1)The tax benefit primarily relates to an adjustment to deferred taxes associated with the settlement charge and stranded tax costs within accumulated other comprehensive income.
| Other Benefits
| Prior Service Cost |  | Net (Gain) or Loss |  | Deferred Taxes |  | Accumulated Other Comprehensive Loss, Net of Tax
Balance at December 31, 2022 | $ | (2,635) |  |  | $ | (5,177) |  |  | $ | 1,403 |  |  | $ | (6,409) |
Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period: |  |  |  |  |  |  |
Net amortization and deferral | 1,017 |  |  | 547 |  |  | (359) |  |  | 1,205 |
Amounts arising during the period: |  |  |  |  |  |  |
Actuarial changes in benefit obligation | — |  |  | (7,996) |  |  | 1,830 |  |  | (6,166) |
Balance at December 31, 2023 | (1,618) |  |  | (12,626) |  |  | 2,874 |  |  | (11,370) |
Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period: |  |  |  |  |  |  |
Net amortization and deferral | 1,967 |  |  | 697 |  |  | (609) |  |  | 2,055 |
Amounts arising during the period: |  |  |  |  |  |  |
Actuarial changes in benefit obligation | — |  |  | (2,150) |  |  | 493 |  |  | (1,657) |
Balance at December 31, 2024 | $ | 349 |  |  | $ | (14,079) |  |  | $ | 2,758 |  |  | $ | (10,972) |
The following table provides the weighted average assumptions for U.S. and foreign plans used in determining benefit obligations:
| Pension |  | Other Benefits
| 2024 |  | 2023 |  | 2024 |  | 2023
Discount rate | 4.4 | % |  | 4.7 | % |  | 5.6 | % |  | 5.0 | %
Rate of compensation increase | 2.9 | % |  | 3.0 | % |  |  |  |
Initial healthcare trend rate |  |  |  |  | 6.8 | % |  | 6.6 | %
Ultimate healthcare trend rate |  |  |  |  | 4.5 | % |  | 4.5 | %
The discount rate represents the interest rate used to determine the present value of future cash flows currently expected to be required to settle the pension and other benefit obligations. The weighted average discount rates for U.S. pension plans and other benefit plans of 5.48% and 5.61%, respectively, were established by comparing the projection of expected benefit payments to the AA Above Median yield curve as of December 31, 2024. The expected benefit payments are discounted by each corresponding discount rate on the yield curve. For payments beyond 30 years, we extend the curve assuming that the discount rate derived in year 30 is extended to the end of the plan’s payment expectations. Once the present value of the string of benefit payments is established, we determine the single rate on the yield curve that, when applied to all obligations of the plan, will exactly match the previously determined present value. As part of the evaluation of pension and other postretirement assumptions, we applied assumptions for mortality and healthcare cost trends that incorporate generational white and blue collar mortality trends. In determining its benefit obligations, we used generational tables that take into consideration increases in plan participant longevity. Our assumption for the expected return on plan assets is primarily based on the determination of an expected return for its current portfolio. This determination is made using assumptions for return and volatility of the portfolio. Asset class assumptions are set using a combination of empirical and forward-looking analysis. To the extent historical results have been affected by unsustainable trends or events, the effects of those trends are quantified and removed. We apply a variety of models for filtering historical data and isolating the fundamental characteristics of asset classes. These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long term relationships between asset classes before a return estimate is finalized. The qualitative analysis is intended to provide an additional means for addressing the effect of unrealistic or unsustainable short-term valuations or trends, resulting in return levels and behavior we believe are more likely to prevail over long periods. The accumulated benefit obligation for all U.S. and foreign defined benefit pension plans was $24.7 million and $274.9 million for 2024 and 2023, respectively. All of the pension plans had accumulated benefit obligations in excess of their respective plan assets as of December 31, 2024 and 2023, with the exception of one foreign plan that had plan assets of $0.5 million and $1.0 million in excess of the accumulated benefit obligation as of December 31, 2024 and 2023, respectively. Our investment objective is to achieve an enhanced long-term rate of return on plan assets, subject to a prudent level of portfolio risk, for the purpose of enhancing the availability of benefits for participants. These investments are comprised of fixed income mutual funds. Fixed-income funds are held for diversification relative to equities and as a partial hedge of interest rate risk with respect to plan liabilities. The plans may also hold cash to meet liquidity requirements. Actual performance may not be consistent with the respective investment strategies. Investment risks and returns are measured and monitored on an ongoing basis through annual liability measurements and investment portfolio reviews to determine whether the asset allocation targets continue to represent an appropriate balance of expected risk and reward. The following table provides the fair values of the pension plan assets at December 31, 2024 by asset category:
|  | Fair Value Measurements
Asset Category (a) |  | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash |  | $ | 110 |  |  | $ | 110 |  |  | $ | — |  |  | $ | — |
Money market funds |  | 19 |  |  | 19 |  |  | — |  |  | — |
Other types of investments: |  |  |  |  |  |  |  |
Contract with insurance company (b) |  | 10,403 |  |  | — |  |  | — |  |  | 10,403 |
Total investments at fair value |  | $ | 10,532 |  |  | $ | 129 |  |  | $ | — |  |  | $ | 10,403 |
Total |  | $ | 10,532 |  |  |  |  |  |  |
The following table provides the fair values of the pension plan assets at December 31, 2023 by asset category:
|  | Fair Value Measurements
Asset Category (a) |  | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Cash |  | $ | 909 |  |  | $ | 909 |  |  | $ | — |  |  | $ | — |
Money market funds |  | 4,424 |  |  | 4,424 |  |  | — |  |  | — |
Fixed income securities: |  |  |  |  |  |  |  |
Intermediate duration fund (c) |  | 193,674 |  |  | 193,674 |  |  | — |  |  | — |
Long duration bond fund (d) |  | 1,357 |  |  | 1,357 |  |  | — |  |  | — |
Corporate, government and foreign bonds |  | 72,037 |  |  | — |  |  | 72,037 |  |  | — |
Absolute return credit fund (e) |  | 317 |  |  | — |  |  | 317 |  |  | — |
Other types of investments: |  |  |  |  |  |  |  |
Contract with insurance company (b) |  | 12,795 |  |  | — |  |  | — |  |  | 12,795 |
Total investments at fair value |  | $ | 285,513 |  |  | $ | 200,364 |  |  | $ | 72,354 |  |  | $ | 12,795 |
Total |  | $ | 285,513 |  |  |  |  |  |  |
(a)Information on asset categories described in notes (b)-(e) is derived from prospectuses and other material provided by the respective funds comprising the respective asset categories. (b)This category comprises the asset established out of an agreement to purchase a bulk-annuity policy from an insurer to fully cover the liabilities for members of the pension plan. The asset value is based on the fair value of the contract as determined by the insurance company using inputs that are not observable. (c)This category comprises a mutual fund that invests in instruments or derivatives having economic characteristics similar to fixed income securities. The fund invests in investment grade fixed income instruments, including U.S. and foreign corporate obligations, fixed income securities issued by sovereigns or agencies in both developed and emerging foreign markets, debt obligations issued by governments or other municipalities, and securities issued or guaranteed by the U.S. Government and its agencies. The fund will seek to maintain an effective average duration between three and ten years, and uses derivative instruments, including interest rate swap agreements and credit default swaps, for the purpose of managing the overall duration and yield curve exposure of the Fund’s portfolio of fixed income securities. (d)This category comprises a mutual fund that invests in instruments or derivatives having economic characteristics similar to fixed income securities. The fund invests in investment grade fixed income instruments, including securities issued or guaranteed by the U.S. Government and its agencies and instrumentalities, corporate bonds, asset-backed securities, exchange traded funds, mortgage-backed securities and collateralized mortgage-backed securities. The fund invests primarily in long duration government and corporate fixed income securities, and uses derivative instruments, including interest rate swap agreements and Treasury futures contracts, for the purpose of managing the overall duration and yield curve exposure of the Fund’s portfolio of fixed income securities. (e)This category comprises a mutual fund that invests primarily in investment grade bonds and similar fixed income and floating rate securities. Our contributions to U.S. and foreign pension plans during 2025 are expected to be approximately $1.1 million. Contributions to postretirement healthcare plans during 2025 are expected to be approximately $1.0 million. The following table provides information about the expected benefit payments under its U.S. and foreign plans for each of the five succeeding years and the aggregate of the five years thereafter:
| Pension |  | Other Benefits
2025 | $ | 2,080 |  |  | $ | 1,022 |
2026 | 2,114 |  |  | 756 |
2027 | 2,014 |  |  | 602 |
2028 | 2,086 |  |  | 574 |
2029 | 2,174 |  |  | 563 |
Years 2030 — 2034 | 10,693 |  |  | 2,488 |
We maintain a number of defined contribution savings plans covering eligible U.S. and non-U.S. employees. We partially match employee contributions. Costs related to these plans were $33.2 million, $26.1 million and $24.3 million for 2024, 2023 and 2022, respectively.

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