Company: TDY
Filing Date: 2025-02-28
Form Type: PRE 14A
Source: 0001193125-25-042748
Chunk: 58

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-28
Form: PRE 14A
Chunk 58
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*                              |     | 40%       |
| Adjusted revenue*                                          |     | 25%       |
| Managed working capital as a percentage of sales (“MWC”)** |     | 15%       |
| Individual performance objectives                          |     | 20%       |
| Total                                                      |     | 100%      |

| * | For purposes of determining adjusted income before taxes and adjusted revenue for AIP, we adjust the corresponding GAAP amounts for certain intercompany sales and certain one-time events and tax items and, for AIP awards for fiscal years 2021 and 2022 only, acquired intangible asset amortization related to our acquisition of FLIR Systems, Inc. |

| ** | MWC is calculated utilizing a 13-month average of managed working capital commencing with December of the previous year divided by GAAP revenue (for segment executives, we adjust revenue for certain intercompany sales). Managed working capital is comprised of the net balance of the following balance sheet accounts: gross receivables, unbilled costs, advance payments offset to unbilled accounts receivables, gross inventory, accounts payable, customer advance payments and deferred revenue. |

Target amounts are typically derived from our annual business plan, which is presented to and approved by our Board of Directors in January of each year. We chose adjusted income before taxes, adjusted revenue and MWC as the corporate performance components of the 2024 AIP award because we believe these measures are key objective indicators of our year-over-year financial performance. The use of adjusted revenue and adjusted income before taxes is designed to encourage profitable growth, while the use of MWC is designed to promote operational efficiency. (A lower MWC percentage represents greater operational efficiency than a higher one.)

| TELEDYNE TECHNOLOGIES INCORPORATED | 2025 Proxy Statement |     | 53 |

Compensation Discussion and Analysis (continued) Generally, AIP awards for NEOs are based on overall corporate results. Each of the performance measures allows for participants to earn between zero and 200% of the target, with the overall weighting emphasizing profitable growth that exceeds our business plan. Adjusted income before taxes serves as an absolute threshold for the entire AIP. Both the adjusted income before taxes and adjusted revenue components are further weighted so that performance above the target is rewarded proportionally better than performance below the target, as more fully described below:

| Adjusted income before taxes      |     | •   If actual performance equals or exceeds