Company: TDY
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001094285-25-000131
Chunk: 34

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 months ended June 29, 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 June 29, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $4,452.8 million.  The Company expects approximately 73% of remaining performance obligations to be recognized into revenue within the next 12 months, with the remaining 27% recognized thereafter.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 the 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 basis.  This method recognizes, in the current period, the cumulative effect of the changes on current and prior quarters.  Additionally, if the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident.  Contract cost and revenue estimates for significant contracts are generally reviewed and reassessed quarterly.The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first six months of 2025 was $1.9 million of favorable operating income compared with $2.1 million of favorable operating income in the first six months of 2024.  None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income (loss) for any period presented.

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Note 5. Goodwill and Acquired Intangible Assets

GoodwillThe carrying value of goodwill by segment was as follows (in millions):Digital Imaging InstrumentationAerospace and Defense ElectronicsEngineered SystemsTotalBalance at December 29, 2024$6,854.6 $955.3 $163.0 $17.6 $7,990.5 Current year acquisitions