Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 254

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 254
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.8 million, sales of unmanned air systems increased $56.7 million, sales of commercial and defense infrared detectors and subsystems increased $7.5 million and sales of surveillance systems increased $27.4 million.

Cost of sales for 2024 decreased compared with 2023 and reflected the impact of lower net sales partially offset by unfavorable product mix and higher engineering costs.  The cost of sales percentage in 2024 increased compared with 2023 and reflected the impact of product mix.  Selling, general and administrative expense and the selling, general and administrative expense percentage for 2024 increased compared with 2023 and included incremental selling, general and administrative expense from current and prior year acquisitions, higher bad debt expense in 2024 compared to a bad debt recovery in 2023 on previously reserved amounts and higher third party sales commissions.  Research and development expense and the research and development expense percentage for 2024 decreased 27.3% compared with 2023, with the decrease driven primarily by the completion of certain unmanned air systems product development activities in 2023 that moved to commercialization in early 2024, FLIR integration-related cost-reduction efforts implemented in the second half of 2023 and a larger percentage of labor focused on customer-funded research and development projects in 2024 as compared to 2023.

The decrease in operating income in 2024 reflected the impact of lower net sales, unfavorable product mix, higher engineering costs and $49.5 million impairment of acquired intangible assets, partially offset by lower research and development expense.

Instrumentation

(dollars in millions)20242023$ Change% ChangeNet sales$1,382.6$1,326.2$56.44.3%Cost of sales$706.4$692.6$13.82.0%Selling, general and administrative expense$196.4$188.2$8.24.4%Research and development expense$92.6$92.9$(0.3)(0.3)%Acquired intangible asset amortization expense$13.9$14.2$(0.3)(2.1)%Impairment of acquired intangible assets$3.0$—$3.0*Operating income$370.3$338.3$32.09.5%Cost of sales % of net sales51.1 %52.2 %(1.1)%Selling, general and administrative expense % of net sales14.2