Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 38

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 also prompted retaliatory tariffs and export restrictions from certain countries.  As of April 2025, certain tariffs and retaliatory tariffs have been delayed, but a number of the new tariffs remain in effect, including significant tariffs and trade sanctions between the United States and China.  Our net sales to China-based customers represented approximately 4% of total revenues in 2024, of which less than 50% of these sales were made directly from our U.S. subsidiaries.  China has also restricted the export of certain rare earth minerals which are used in our products.  Tariffs, trade restrictions and retaliatory measures could result in revenue reduction, cost increases on material used in our products or significant production delays, which could adversely affect our business, financial condition, operational results and cash flows.  Consistent with our strategy, we are optimizing operations and facilities and taking measures to contain costs to reduce the impact from tariffs.  We may also implement additional pricing actions to mitigate the impact of these tariffs.

Sales recorded and costs incurred recorded by subsidiaries operating outside of the United States are translated into U.S. dollars using exchange rates effective during the respective period.  As a result, we are exposed to movements in the exchange rates of various currencies against the U.S. dollar.  See Note 13 for additional discussion around our derivative instruments and hedging activities used to mitigate these impacts.

As part of a continuing effort to reduce costs and improve operating performance, we continue to take actions to consolidate and relocate certain facilities and reduce head count across various businesses, reducing our exposure to weaker end markets.  We continue to seek cost reductions in our businesses.

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Results of Operations

  First Quarter%(dollars in millions)20252024ChangeNet sales$1,449.9 $1,350.1 7.4 %Costs and expensesCost of sales830.4 770.2 7.8 %Selling, general and administrative233.9 219.7 6.5 %Research and development74.3 76.5 (2.9)%Acquired intangible asset amortization52.0 49.4 5.3 %Total costs and expenses1,190.6 1,115.8 6.7 %Operating income (loss)259.3 234.3 10.7 %Interest and debt income (expense), net(17.3)(12.7)36.2 %Non-service retirement benefit income (expense