Company: TDY
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001094285-25-000131
Chunk: 37

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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  Although the FLIR sales forecasts were based on assumptions that are considered reasonable by management and consistent with the plans and estimates management uses to operate the underlying businesses, there is significant judgment in determining the expected results of the FLIR business.  Changes in sales forecast estimates or the application of alternative assumptions could produce significantly different results.  The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure.  The royalty rate was driven by historical and estimated future profitability of the underlying FLIR business.  The royalty rate may be impacted by significant adverse changes in long-term operating margins.  Subsequent to the assessment made in the prior year, additional non-cash impairment of the trademark could result from a number of circumstances, including different assumptions used in determining the fair value of the trademark, changes to customer spending priorities, or a sharp increase in interest rates without a corresponding increase in future net sales.For all indefinite-lived trademarks, including the FLIR trademark, there have been no events or changes in circumstances which indicate that it is more likely than not that the fair value of the trademark is below its carrying value.  As such, no interim impairment review was required.  The Company will perform its annual analysis during the fourth quarter of 2025.

Note 6. Supplemental Balance Sheet Information

Cash EquivalentsThe Company had $102.1 million and $304.1 million of cash equivalents at June 29, 2025, and December 29, 2024, respectively.  The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets.Accounts Receivable, NetAccounts receivable is presented net of an allowance for estimated credit losses of $14.5 million at June 29, 2025 and $15.5 million at December 29, 2024. Inventories, NetInventories are stated at the lower of cost or net realizable value and primarily valued on an average cost or first-in, first-out method.  Inventory adjustments are recorded when inventory is considered to be excess or obsolete based upon an analysis of actual on-hand quantities on a part-level basis to forecasted product demand and historical usage.  Inventory balances are summarized as follows (in millions):Balance atJune 29, 2025December 29, 2024Raw materials and