Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 72

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 15
Chunk 72
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 with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities.  On an ongoing basis, the Company evaluates its estimates, including those related to sales returns and allowances, allowance for doubtful accounts, inventories, goodwill, intangible assets, asset valuations, income taxes, warranty obligations, pension and other postretirement benefits, long-term contracts, environmental, workers’ compensation and general liability, employee benefits and other contingencies and litigation.  The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances at the time, the results of which form the basis for making its judgments.  Actual results may differ materially from these estimates under different assumptions or conditions.  Management believes that the estimates used are reasonable. 

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Cash and Cash EquivalentsCash and cash equivalents include cash on hand and highly liquid money-market mutual funds with maturities of three months or less when purchased.Accounts Receivable, Contract Assets and Contract LiabilitiesThe timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities).  Under the typical payment terms of the Company’s over time contracts, the customer pays the Company either performance-based payments or progress payments.  Amounts billed and due from the Company’s customers are classified as receivables on the consolidated balance sheets.  The Company may receive interim payments as work progresses, although for some contracts, the Company may be entitled to receive an advance payment.  The Company recognizes a liability for these interim and advance payments in excess of revenue recognized and present it as a contract liability.  Contract liabilities typically are not considered a significant financing component because these cash advances are used to meet working capital demands that can be higher in the early stages of a contract, and these cash advances protect us from the other party failing to adequately complete some or all of its obligations under the contract. When revenue recognized exceeds the amount billed to the customer, the Company records an unbilled receivable (contract asset) for the amount entitled to be received based on an enforceable right to payment.The Company evaluates the collectability of its accounts receivable and contract assets based on a combination of factors, and judgment is required in the estimation process.  If the Company becomes aware of a customer’s inability to meet its financial obligations, a specific allowance is recorded to