Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 24

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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350.1 $694.8 $331.4 $213.0 $110.9 $1,350.1 (a) U.S. Government sales include sales as a prime contractor or subcontractor.(b) Primarily commercial sales(c) Geographic region by destination

With the exception of the Engineered Systems segment, net sales in each segment are primarily derived from fixed price contracts.  Net sales in the Engineered Systems segment are typically between 45% and 55% fixed price contracts in a given reporting period, with the balance of net sales derived from cost-reimbursable type contracts.  For the three months ended March 30, 2025, approximately 47% of net sales in the Engineered Systems segment were derived from fixed price contracts.Contract LiabilitiesBalance atContract Liabilities by Balance Sheet Location (in millions)March 30, 2025December 29, 2024Accrued liabilities$323.7 $312.6 Other long-term liabilities42.5 30.5 Total contract liabilities$366.2 $343.1 The Company recognized revenue of $98.3 million during the three months ended March 30, 2025, from contract liabilities that existed at the beginning of year.Remaining Performance ObligationsRemaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and exclude unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity).  As of March 30, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,214.5 million.  The Company expects approximately 77% of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 23% recognized thereafter.

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Changes in Contract Estimates at CompletionFor over time contracts using the cost-to-cost method, the Company has an Estimate at Completion (“EAC”) process in which management reviews the progress and execution of our performance obligations.  This EAC process requires management’s judgment relative to assessing risks, estimating contract revenue, determining reasonably dependable cost estimates, and making assumptions for scheduling and technical issues.  The majority of revenue recognized over time uses an EAC process.  Since certain contracts extend over a long period of time, the impact of revisions in cost and revenue estimates during the progress of work may adjust the current period earnings through a cumulative catch-up