Company: TDY
Filing Date: 2025-10-24
Form Type: 10-Q
Source: 0001094285-25-000140
Chunk: 39

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-10-24
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 indefinite-lived trademarks, with the exception of the FLIR indefinite-lived trademark, significantly exceeded their respective carrying value.  At the prior year annual assessment date, the FLIR indefinite-lived trademark value was reduced to $635.8 million, which represented the estimated fair value of the asset as of the prior year assessment date. The most significant assumptions utilized in the determination of the fair value of the FLIR trademark were the net sales growth rates (including residual growth rates), discount rate, and royalty rate.  Although the FLIR sales forecasts were based on assumptions that are considered reasonable by management and consistent with the plans and estimates management uses to operate the underlying businesses, there is significant judgment in determining the expected results of the FLIR business.  Changes in sales forecast estimates or the application of alternative assumptions could produce significantly different results.  The discount rate, which is consistent with a weighted average cost of capital that is likely to be expected by a market participant, is based upon industry required rates of return, including consideration of both debt and equity components of the capital structure.  The royalty rate was driven by historical and estimated future profitability of the underlying FLIR business.  The royalty rate may be impacted by significant adverse changes in long-term operating margins.  Subsequent to the assessment made in the prior year, additional non-cash impairment of the trademark could result from a number of circumstances, including different assumptions used in determining the fair value of the trademark, changes to customer spending priorities or a sharp increase in interest rates without a corresponding increase in future net sales.For all indefinite-lived trademarks, including the FLIR trademark, there have been no events or changes in circumstances which indicate that it is more likely than not that the fair value of the trademark is below its carrying value.  As such, no interim impairment review was required.  The Company will perform its annual analysis during the fourth quarter of 2025.

Note 6. Supplemental Balance Sheet Information

Cash EquivalentsThe Company had $313.6 million and $304.1 million of cash equivalents at September 28, 2025, and December 29, 2024, respectively.  The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets.Accounts Receivable, NetAccounts receivable is presented net of an allowance for estimated credit losses of $15.7 million at September 28, 2025 and $15.5 million at December 29, 2024. Invent