Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 289

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 289
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 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 reduce the net receivable to the amount reasonably believed to be collectible from the customer.  For all other customers, the Company uses an aging schedule and recognizes allowances for doubtful accounts based on the creditworthiness of the debtor, the age and status of outstanding receivables, the current business environment and historical collection experience adjusted for current expectations for the customers or industry.  Accounts receivable are written off against the allowance for uncollectible accounts when the Company determines amounts are no longer collectible.  Trade credit is extended based upon evaluations of each customer’s ability to perform its obligations, which are updated periodically.InventoriesInventories are stated at