Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 217

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 217
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 timing of the recognition of income and expense were as follows (in millions):Deferred income tax assets:20242023Long-term:  Accrued liabilities$33.9 $29.5 Inventory valuation22.4 29.1 Accrued vacation7.9 8.1 Deferred compensation and other benefit plans15.1 14.5 Operating lease liabilities21.6 27.9 Capitalization of research and development 165.0 141.1 Tax credit and net operating loss carryforward33.2 39.3     Other 30.0 34.8 Valuation allowance(20.2)(18.2)Total deferred income tax assets308.9 306.1 Deferred income tax liabilities:  Long-term:  Intangible amortization587.0 638.7 Property, plant and equipment differences28.4 29.0 Operating lease right-of-use assets 18.9 25.3 Unremitted earnings of foreign subsidiaries7.4 3.6 Other 9.5 12.4 Total deferred income tax liabilities651.2 709.0 Net deferred income tax liabilities $342.3 $402.9 The Company is not permanently reinvested with respect to unremitted earnings of most of its foreign subsidiaries.  The Company is subject to U.S. income tax on substantially all of these foreign earnings, while any remaining foreign earnings are eligible for potential U.S. tax deductions.  As of December 29, 2024, the incremental tax cost to repatriate these earnings was not material.

69

The Company continues to make an indefinite reinvestment assertion on the unrepatriated prior year earnings of its material subsidiaries in Canada.  Those unremitted earnings were used to finance Canadian operations and investments.  The Company estimates that future cash generation will be sufficient to meet future domestic cash requirements.  The unrecognized deferred tax liability for the historical unremitted Canadian earnings is estimated between at $23.0 million to $26.0 million of potential tax. In assessing the need for a valuation allowance, the Company considers all positive and negative evidence, including recent financial performance, scheduled reversals of temporary differences, projected future taxable income, availability of taxable income in carryback periods and tax planning strategies.  Based on a review of such information, management believes that it is possible that some portion of deferred tax assets will not be realized as