Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 70

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 income on derivatives$0.9 $(9.3)See Note 13Income tax impact(0.2)2.4 Provision for income taxesTotal$0.7 $(6.9)Amortization of defined benefit pension and postretirement plan items:Amortization of prior service cost$0.1 $(0.1)Costs and expensesAmortization of net actuarial loss1.8 2.9 Costs and expensesTotal before tax1.9 2.8 Income tax impact(0.4)(0.7)Provision for income taxesTotal$1.5 $2.1 

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Table of Contents

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 the first quarter ended March 30, 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 our Canadian companies, and in British pounds for our UK companies.  As of March 30, 2025, foreign currency forward contracts in Canadian dollars designated as cash flow hedges have maturities ranging from June 2025 to February 2026.  As of March 30, 2025, foreign currency forward contracts in British pounds designated as cash flow hedges have maturities ranging from June 2025 to February 2026.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 quarter of 2025, the Company entered cross-currency swaps designated as net investment hedges with a total notional amount of €300.0 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.