Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 46

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 46
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 alter our operations and product design activities.  Proposed rules under the Federal Acquisition Regulation and similar rules in other jurisdictions such as the United Kingdom require or will require major contractors to disclose enhanced information on GHG emissions and commit to GHG emission reduction targets.  If we are unable to comply with these rules, we may be ineligible to receive future contract awards from the United States and other governments.  The inconsistent international, regional and/or national requirements associated with climate change regulations also create economic and regulatory uncertainty. 

15

Investor sentiment towards climate change and sustainability could adversely affect our business and the market price for our common stock.

Increased investor focus and activism related to climate change and sustainability may hinder our access to capital, as investors may reconsider their capital investment as a result of their assessment of our sustainability practices.  We may face increasing pressure regarding our sustainability disclosures and practices.  Additionally, members of the investment community may screen companies such as ours for sustainability performance before investing in our stock.  If we are unable to meet the sustainability standards set by these investors, or if we are unable meet GHG reduction targets we communicate to the public, we may lose investors, our stock price may be negatively impacted, and our reputation may be negatively affected.

Risks related to Legal and Compliance Matters

Adverse findings in matters related to export control practices, including FLIR’s historical practices, could materially impact us.

Effective April 24, 2022, the United States Department of State’s Office of Defense Trade Controls Compliance (“DDTC”) closed the four-year Consent Agreement that had been entered into by FLIR Systems, Inc., to resolve various export allegations under the International Traffic in Arms Regulations (“ITAR”).  In connection with this Consent Agreement and other export matters, FLIR and its successor by mergers, Teledyne FLIR, has enhanced the trade compliance program more broadly, implemented remedial measures and have undergone external and internal audits of the trade compliance program.  Nonetheless, adverse disclosures and findings could cause additional expenses in connection with further remedial measures or potential penalties.

We have made other voluntary disclosures to the U.S. Department of State and the U.S. Department of Commerce, including to the Bureau of Industry and Security (“BIS”) with respect to Teledyne FLIR shipments of products from non-U.S. jurisdictions which were not licensed due to incorrect de minimis calculation methodology under the Export Administration Regulations.  We have made voluntary disclosures to export authorities in jurisdictions outside the United States for certain potential violations of local export laws. 

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