Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 153

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 153
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 related to higher compensation expense, including higher stock-based compensation as well as higher consulting and legal costs.

Research and Development Expense

Research and development expense decreased in 2024, primarily driven by a decrease within the Digital Imaging segment.

Acquired Intangible Asset Amortization

Acquired intangible asset amortization for 2024 was $198.0 million, compared with $196.7 million for 2023.

26

Impairment of Acquired Intangible Assets

We recorded $52.5 million of pretax, non-cash trademark impairments in 2024 in the Digital Imaging and Instrumentation segments.  No comparative amounts were recorded in 2023.

Operating Income

Operating income decreased in 2024 primarily driven by $52.5 million of pretax, non-cash trademark impairments recorded in 2024.  No comparative amounts were recorded in 2023.

Non-operating Income and Expense

Interest expense, including credit facility fees and other bank charges and net of interest income, was $57.9 million in 2024, compared with $77.3 million in 2023.  The decrease was due primarily to reduced outstanding borrowings with lower weighted average interest rates compared to 2023.  In 2023, we repurchased and retired $10 million of its Fixed Rate Senior Notes due April 2031, recording a $1.6 million non-cash gain on the extinguishment of this debt.  The other expense, net in other income and expense, net, in 2024 was driven primarily by lower foreign exchange losses compared to the 2023 other expense, net amount.

Income Taxes

The income tax provision considers income, permanent items, tax credits, and various statutory tax rates.  The effective tax rate decreased in 2024 compared to 2023 primarily due to lower reversals of unrecognized tax benefits in 2024 as well as lower research and development tax credits in 2024.  See Note 9 for further information regarding our income taxes.

(dollars in millions)20242023Provision (benefit) for income taxes$117.2$72.3Income (loss) before income taxes$937.9$958.9Effective tax rate12.5%7.5%

Business Segment Operating Results

The following discussion of our four segments should be read in conjunction with Note 4.

Digital Imaging

(dollars in millions)20242023$ Change% ChangeNet sales$3,070.8