Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 296

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 296
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, the Company discontinued the Performance Share Plan (“PSP”), with an immaterial amount of compensation expense recorded in 2024 and 2023.  Teledyne’s PSP provided grants of performance share units, which key officers and executives could earn if Teledyne met specified performance objectives over a three-year period.  Awards were payable in cash and to the extent available, shares of Teledyne common stock.Stock-based Compensation CostsThe Company recognizes compensation expense for its stock-based compensation programs, which include stock options, restricted stock and restricted stock units.  The fair value of share-based compensation is determined at the grant date and the recognition of the related expense is generally recorded over the period in which the share-based compensation vests.  Since 2019, stock options granted to the Company’s Executive Chairman are expensed immediately, as stock options continue to vest after retirement.  The Company issues shares of common stock upon the exercise of stock options.The fair value of stock options granted through 2022 was determined by using a lattice-based option pricing model, and the Company did not grant stock options in 2023.  In recent years, the Company began granting stock options to a smaller group of employees, as the Company began granting restricted stock units to a larger group of employees.  In 2024, the Company began using the Black-Scholes option pricing model to determine the fair value of stock options.  The adoption of the Black-Scholes option pricing model was driven by a review of option exercise history, which more closely aligned with the methodology of the Black-Scholes option pricing model, and the adoption of the Black-Scholes option pricing model did not materially change the grant-date fair value calculation.  The Company uses a combination of its historical stock price volatility and the volatility of exchange traded options, if any, on the Company stock to compute the expected volatility for purposes of valuing stock options granted.  The period used for the historical stock price corresponded to the expected term of the options.  The period used for the exchange traded options, if any, included the longest-dated options publicly available, generally three months.  The expected dividend yield is based on Teledyne’s practice of not paying dividends.  The risk-free rate of return is based on the yield of U.S. Treasury Strips with terms equal to the expected life of the options as of the grant date.  The expected life in years is based on historical actual stock option exercise experience. 

56

Treasury StockIn April 202