Company: TDY
Filing Date: 2025-04-28
Form Type: 10-Q
Source: 0001094285-25-000105
Chunk: 71

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-04-28
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 dollar.  These cross-currency swaps mature between March 2027 and September 2029.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 had notional amounts of €156.0 million and $150.0 million and matured in October 2024.Non-Designated Hedging ActivitiesThe Company utilizes foreign currency forward contracts to mitigate foreign exchange rate risk associated with foreign currency denominated monetary assets and liabilities, including intercompany receivables and payables.  These foreign currency forward contracts are not designated as accounting hedges.  The gain or loss resulting from a change in fair value of a derivative instrument that is not designated in accounting hedge is recognized immediately in earnings and intended to, at a minimum, partially offset the transaction gains and losses recognized in earnings.Derivative InstrumentsThe following is a summary of the gain (loss) included in the condensed consolidated statements of income (loss) and comprehensive income (loss) related to the derivative instruments described above (in millions): First Quarter 20252024Net gain (loss) recognized in AOCI—Foreign Exchange Contracts (a)$0.8 $0.7 Net gain (loss) recognized in AOCI—Cross-Currency Swap Contracts (a)$(5.5)$— Net gain (loss) reclassified from AOCI into revenue/cost of sales—Foreign Exchange Contracts (a)$(0.9)$0.7 Net gain (loss) reclassified from AOCI into other income and expense, net—Foreign Exchange Contracts (b)$— $3.7 Net gain (loss) reclassified from AOCI into interest expense—Foreign Exchange Contracts$— $1.9 Net gain (loss) recognized in other income and expense, net—Foreign Exchange Contracts$11.4 $9.3 (a) Effective portion, pre-tax(b) Amount reclassified to offset earnings impact of liability hedged by cross-currency swap, used to hedge debt

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Net deferred losses recorded in AOCI for the forward contracts that will mature in the next 12 months total $1.0 million, net of taxes.  These losses are expected to be offset by anticipated gains in the value of the forecasted underlying hedged item.The following is a summary of notional amounts and fair values of the Company