Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 42

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 42
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 monitoring instruments and energy systems products.

Many of our products are used by industrial customers and municipalities to monitor ambient air quality, water quality and gas and particulate emissions in order comply with regulatory requirements issued by the U.S. Environmental Protection Agency and other federal agencies.  The new Presidential Administration has signaled its intent to scale back many of these regulations, which could result in decreased demand for our products.  The new Presidential Administration has also signaled its intent to roll back green energy initiatives, which could harm our energy systems business that manufactures hydrogen-based energy generation systems.

Risks related to Finance and Tax Matters

Our indebtedness, and any failure to comply with our covenants that apply to our indebtedness, could materially and adversely affect our business.

As of December 29, 2024, we had $2,665.0 million total outstanding indebtedness in senior notes.  As of December 29, 2024, no borrowings were outstanding under our $1.20 billion credit facility.  Teledyne incurred a significant amount of indebtedness in connection with the financing of the acquisition of FLIR in 2021.  The agreements we entered into with respect to our indebtedness, including the agreements we entered into to finance the FLIR acquisition and in connection with the assumption of FLIR’s existing senior notes, contain negative covenants, that, subject to certain exceptions, include limitations on indebtedness related to our credit facility, liens, dispositions, investments and mergers and other fundamental changes.  Our ability to comply with these negative covenants can be affected by events beyond our control.  The indebtedness and these negative covenants may also have the effect, among other things, of limiting our ability to obtain additional financing, if needed, reducing the funds available to make acquisitions or capital expenditures, reducing our flexibility in planning for or reacting to changes in our business or market conditions, and making us more vulnerable to economic downturns and adverse competitive and industry conditions.  In addition, a breach of the negative covenants could result in an event of default with respect to the indebtedness, which, if not cured or waived, could result in the indebtedness becoming immediately due and payable and could have a material adverse effect on our business, financial condition or operating results.  Any future indebtedness incurred under our credit facility will expose us to interest rate risk.

We may not be able to service our debt obligations.

Our ability to meet our interest expense and debt service obligations will depend on our future performance,