Company: TDY
Filing Date: 2025-07-28
Form Type: 10-Q
Source: 0001094285-25-000131
Chunk: 95

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-07-28
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 ActivitiesThe Company utilizes foreign currency forward contracts to mitigate foreign exchange rate risk associated with foreign currency denominated monetary assets and liabilities, including intercompany receivables and payables.  These foreign currency forward contracts are not designated as accounting hedges.  The gain or loss resulting from a change in fair value of a derivative instrument that is not designated in accounting hedge is recognized immediately in earnings and intended to, at a minimum, partially offset the transaction gains and losses recognized in earnings.Derivative InstrumentsThe following is a summary of the gain (loss) included in the condensed consolidated statements of income (loss) and comprehensive income (loss) related to the derivative instruments described above (in millions): Second QuarterSix Months 2025202420252024Net gain (loss) recognized in AOCI—Foreign Exchange Contracts (a)$3.5 $0.2 $4.3 $0.9 Net gain (loss) recognized in AOCI—Cross-Currency Swap Contracts (a)$(32.0)$— $(37.5)$— Net (gain) loss reclassified from AOCI into revenue/cost of sales—Foreign Exchange Contracts (a)$(0.1)$0.2 $0.8 $1.0 Net gain (loss) reclassified from AOCI into other income and expense, net—Foreign Exchange Contracts (b)$— $1.2 $— $4.9 Net gain (loss) reclassified from AOCI into interest expense—Foreign Exchange Contracts$— $2.0 $— $3.9 Net gain (loss) recognized in other income and expense, net—Foreign Exchange Contracts$29.1 $(2.8)$40.5 $(12.1)(a) Effective portion, pre-tax(b) Amount reclassified to offset earnings impact of liability hedged by cross-currency swap, used to hedge debt

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Net deferred gains recorded in AOCI for the forward contracts that will mature in the next 12 months total $1.6 million, net of taxes.  These gains are expected to be offset by anticipated losses in the value of the forecasted underlying hedged item.The following is a summary of notional amounts and fair values of the Company’s derivatives recorded in the condensed consolidated balance sheets presented by instrument type and use (in millions):Notional AmountFair Value AssetFair Value LiabilityJune 29, 2025December 29, 2024June