Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 46

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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s and expensesAmortization of net actuarial loss7.0 8.1 Costs and expensesTotal before tax7.2 7.8 Income tax impact(1.7)(2.1)Provision for income taxesTotal$5.5 $5.7 

Note 13. Derivative Instruments and Hedging Activities

The Company’s primary exposure to market risk relates to changes in foreign currency exchange rates and interest rates.  The Company’s primary foreign currency risk management objective is to protect the U.S. dollar value of future cash flows and minimize the volatility of reported earnings.  During 2025, the Company entered into certain derivative contracts to reduce the volatility from translation of the Company’s euro denominated net investments.  The Company does not use foreign currency forward contracts for speculative or trading purposes.The Company mitigates exposure to foreign currency exchange rates and interest rates primarily through the following:Designated Hedging ActivitiesThe Company utilizes foreign currency forward contracts to reduce the volatility of cash flows primarily related to forecasted revenue and expenses denominated in Canadian dollars for the Canadian companies, and in British pounds for the UK companies.  As of September 28, 2025, foreign currency forward contracts in Canadian dollars designated as cash flow hedges have maturities ranging from October 2025 to February 2026.  As of September 28, 2025, foreign currency forward contracts in British pounds designated as cash flow hedges have maturities ranging from October 2025 to February 2026.

20

The Company utilizes cross-currency swaps to hedge portions of the Company’s euro denominated net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar.  In the first nine months of 2025, the Company entered cross-currency swaps designated as net investment hedges with a total notional amount of €450.0 million to hedge portions of the Company’s euro denominated net investments against the effect of exchange rate fluctuations on the translation of foreign currency balances to the U.S. dollar.  These cross-currency swaps mature between September 2026 and September 2030.The Company converted a U.S. dollar denominated, variable rate debt obligation of a European subsidiary into a euro fixed rate obligation using a receive float, pay fixed cross-currency swap to reduce the variability of interest rates.  This cross-currency swap matured in October 2024.Non-Designated Hedging ActivitiesThe Company utilizes foreign