Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 99

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 15
Chunk 99
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1)U.S. export sales(1.9)(2.2)(2.0)Other0.4 0.9 2.2 Effective income tax rate12.5%7.5 %13.1 %Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes, and differences between the fair value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases.  Deferred income taxes represent future tax benefits or costs to be recognized when those temporary differences reverse. The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense were as follows (in millions):Deferred income tax assets:20242023Long-term:  Accrued liabilities$33.9 $29.5 Inventory valuation22.4 29.1 Accrued vacation7.9 8.1 Deferred compensation and other benefit plans15.1 14.5 Operating lease liabilities21.6 27.9 Capitalization of research and development 165.0 141.1 Tax credit and net operating loss carryforward33.2 39.3     Other 30.0 34.8 Valuation allowance(20.2)(18.2)Total deferred income tax assets308.9 306.1 Deferred income tax liabilities:  Long-term:  Intangible amortization587.0 638.7 Property, plant and equipment differences28.4 29.0 Operating lease right-of-use assets 18.9 25.3 Unremitted earnings of foreign subsidiaries7.4 3.6 Other 9.5 12.4 Total deferred income tax liabilities651.2 709.0 Net deferred income tax liabilities $342.3 $402.9 The Company is not permanently reinvested with respect to unremitted earnings of most of its foreign subsidiaries.  The Company is subject to U.S. income tax on substantially all of these foreign earnings, while any remaining foreign earnings are eligible for potential U.S. tax deductions.  As of December 29, 2024, the incremental tax cost to repatriate these earnings was not material.

69

The Company continues to make an indefinite reinvestment assertion on the unrepatriated prior year earnings of its material subsidiaries in Canada.  Those unremitted earnings were used to finance