Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 43

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 43
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 including the cash we generate from operating activities, which will be affected by financial, business, economic and other factors, including potential changes in laws or regulations, industry conditions, industry supply and demand, customer preferences, the success of our products and pressure from competitors.  If we are unable to meet our debt service obligations or should we fail to comply with our financial and other negative covenants contained in the agreements governing our indebtedness, we may be required to refinance all or part of our debt, sell strategic assets at unfavorable prices, incur additional indebtedness or issue common stock or other equity securities.  We may not be able to, at any given time, refinance our debt, sell assets, incur additional indebtedness or issue equity securities on terms acceptable to us, in amounts sufficient to meet our needs.  If we are able to raise additional funds through the issuance of equity securities, such issuance would also result in dilution to our stockholders.  Our inability to service our obligations or refinance our debt could have a material and adverse effect on our business, financial condition or operating results.

The credit rating of Teledyne could be downgraded, which may increase borrowing costs.

The credit ratings of Teledyne’s debt could be subject to a downgrade below investment grade.  If a ratings downgrade were to occur, we could experience higher borrowing costs in the future and more restrictive debt covenants, which would reduce profitability and diminish operational flexibility.  A ratings downgrade could also limit our access to certain sources of debt financing.

Higher tax rates may harm our results of operations and cash flow.

Increases in the United States on the taxation of foreign income and expense may harm our results of operations and cash flow.  The relative amount of income we earn in jurisdictions outside the United States could reduce our net income and increase our cash payments.  Additionally, beginning in 2023, the United States has adopted a 15% corporate alternative minimum tax for certain large corporations.  Teledyne does not expect to be subject to this tax in 2023 or 2024; however, Teledyne is closely monitoring the potential impact of the U.S. corporate minimum tax.  Many other jurisdictions have also enacted corporate global 15% minimum tax rules, which applied to Teledyne beginning in 2024.  Teledyne is monitoring the impact of these foreign minimum tax rules.  Increased tax due to corporate minimum taxes in the United States or in other jurisdictions could reduce our net income and increase our cash payments.

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