Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 34

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 34
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 sales to customers outside the United States accounted for approximately 48% and 49% of total net sales, respectively.  In both 2024 and 2023, we sold products to customers in over 100 foreign countries.  In 2024, the top five countries for sales to international customers, ranked by net sales, were the United Kingdom, China, Germany, Japan and France and represented approximately 19% of our total net sales.  We anticipate that future sales to international customers will continue to account for a significant and increasing percentage of our revenues.

Risks associated with international sales and operations include, but are not limited to:

•political and economic instability, including the war between Ukraine and Russia, the conflict in Israel and neighboring region and potential hostilities between China and Taiwan;

•additional deterioration in United States - China and United States - Russia relations;

•existing and intensifying global economic sanctions and export controls, including export controls related to China, sanctions related to Russia, and increasingly complex regulations related to exports of marine instruments, digital imaging and other products;

•our ability to obtain export licenses in a timely manner;

•unauthorized release of export-controlled or otherwise protected information;

•compliance with anti-corruption laws, including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act;

•changes in tax laws and tariff rates;

•protection and enforcement of intellectual property rights;

•compliance with non-U.S. data protection laws, including the EU General Data Protection Regulation (“GDPR”) in the European Union and the Personal Information Protection Law in China;

•new and emerging non-U.S. regulations relating to ESG and CSR matters, which could be costly to comply with;

•international terrorism;

•transportation, including piracy in international waters; 

•currency exchange rate fluctuations; and

•challenges relating to managing a global workforce with diverse cultures, backgrounds and labor laws.

The impact of these factors is difficult to predict, but one or more of them could have a material adverse effect on our financial position, results of operations, or cash flows.

Currency exchange rate fluctuations may increase the cost of our products to international customers and therefore reduce our competitive position.  In addition to making our products manufactured in the United States more expensive, a stronger dollar impacts the value of our foreign profits when translated back into dollars.  Since we report our financials in U.S. dollars, volatility in the strength of the U.S. dollar could have a material impact on our reported earnings.

Continued economic slowdown