Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 31

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 31
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Table of Contents

Item 1A.Risk Factors

Risk Factors

The following discussion sets forth the material risk factors that could affect Teledyne’s financial condition and operations.  You should not consider any descriptions of these factors to be a complete set of all potential risks that could affect Teledyne.  Any of the risk factors discussed below could by itself, or combined with other factors, materially and adversely affect our business, results of operations, financial condition, competitive position or reputation, including by materially increasing expenses or decreasing revenues, which could result in material losses or a decrease in earnings.

Risks Related to our Business and Industry

A possible recession in the United States or globally may adversely affect us.

We sell products and services to customers in industries that are sensitive to the level of general economic activity and consumer spending habits.  If another recession emerges, either globally or in the United States, we may experience declines in revenues, profitability and cash flows from reduced orders, payment delays, collection difficulties, increased price pressures for our products, increased risk of excess and obsolete inventories or other factors caused by the economic problems of our customers.

Acquisitions and our ability to make acquisitions involve inherent risks that may adversely affect our operating results and financial condition.

Our growth strategy includes acquisitions.  Acquisitions involve various inherent risks, such as:

•our ability to assess accurately the value, strengths, weaknesses, internal controls, contingent and other liabilities and potential profitability of acquisition candidates;

•difficulties in integrating acquired businesses, including the potential loss of key personnel from an acquired business, our potential inability to achieve identified financial, operating and other synergies anticipated to result from an acquisition, and integration issues associated with internal controls of acquired businesses;

•the diversion of management’s attention from our existing businesses;

•the potential impairment of assets;

•potential unknown liabilities associated with a business that we acquire or in which we invest, including environmental liabilities; 

•new and proposed regulations limiting the enforcement of noncompetition and nonsolicitation agreements;

•production delays associated with consolidating acquired facilities and manufacturing operations;

•pre-existing vulnerabilities, undetected malware and access management issues at the acquired business and its supply chain;

•the incurrence of significant transaction costs, including for acquisitions which we may not complete; and

•the inadequacy of indemnification, insurance, escrows, holdbacks or other forms of protection for liabilities of the acquired company.

If we are unable to make acquisitions our future growth may be adversely impacted.  Our ability to make acquisitions depends on a