Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 159

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 159
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 unfavorable contract estimate changes related to electronic manufacturing services products.  Cost of sales as a percentage of net sales for 2024 increased compared with 2023.  Selling, general and administrative expense in 2024 increased slightly compared with 2023.  The selling, general and administrative expense as a percentage of net sales increased slightly compared with 2023.

Operating income in 2024 primarily reflected the impact of unfavorable contract estimate changes related to electronic manufacturing services products. 

Financial Condition, Liquidity and Capital Resources

Principal Cash and Capital Requirements

Our principal cash and capital requirements are to fund working capital needs, capital expenditures, income tax payments and debt service requirements, as well as acquisitions.  We may deploy cash for the stock repurchase program.  It is anticipated that operating cash flow, together with available borrowings under the credit facility and the debt financing arrangements described below, will be sufficient to meet these requirements.  To support acquisitions, we may need to raise additional capital.  Our liquidity is not dependent upon the use of off-balance sheet financial arrangements.  We have no off-balance sheet financing arrangements that incorporate the use of special purpose or unconsolidated entities.

Cash and Cash Equivalents

Cash and cash equivalents totaled $649.8 million at December 29, 2024, of which $314.4 million was held by foreign subsidiaries.  Cash equivalents consist of highly liquid money-market mutual funds with maturities of three months or less when purchased.

30

Long-term Debt

Long-term debt, including unamortized debt issuance costs was $2,649.0 million at December 29, 2024 compared to $3,244.9 million at December 31, 2023.  During 2024, we repaid $450.0 million Fixed Rate Senior Notes due April 2024 and $150.0 million for a term loan due October 2024.

At December 29, 2024, we had $52.9 million in outstanding letters of credit, including $29.3 million against our credit facility.

Our credit facility requires us to comply with various financial and operating covenants and at December 29, 2024, we were in compliance with these covenants and had a significant amount of margin between required financial covenant ratios and our actual ratios.  Currently, we do not believe our ability to undertake additional debt financing, if needed, is reasonably likely to be materially impacted by debt restrictions under our credit agreements.  Available