Company: TDY
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001094285-25-000053
Chunk: 22

Company: TELEDYNE TECHNOLOGIES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 22
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.3Engineered Systems389.0384.8366.4Total U.S. Government sales$1,377.1$1,381.7$1,359.9Total U.S. Government sales as a percent of total net sales24.3 %24.5 %24.9 %

Our principal U.S. Government customer is the U.S. Department of Defense, with total net sales of $1,062.7 million and $1,081.3 million in 2024 and 2023, respectively.  With the exception of the Engineered Systems segment, no U.S Government program in 2024 or 2023 accounted for more than 10% of net sales for any of our segments or for the total Company.  In 2024 and 2023, the largest program with the U.S. Government within the Engineered Systems segment was the Marshall Operations, Systems, Services, and Integration II (“MOSSI II”) contract with the NASA Marshall Space Flight Center, which represented approximately 16% and approximately 17% of Engineered Systems net sales, respectively.

As described in greater detail under Item 1A. Risk Factors, there are risks associated with doing business with the U.S. Government.  In 2024, approximately 78% of our U.S. Government prime contracts and subcontracts were fixed-price type contracts, compared to 79% in 2023, with the remaining U.S. Government contracts related to cost-reimbursable contracts (“cost-type”) contracts.  Under fixed-price type contracts, we bear the inherent risk that actual performance cost may exceed the fixed contract price.  Such contracts are typically not subject to renegotiation of profits if we fail to anticipate technical problems, estimate costs accurately or control costs during performance.  Additionally, U.S. Government contracts are subject to termination by the U.S. Government at its convenience, without identification of any default.  When contracts are terminated for convenience, we can recover costs incurred or committed, settlement expenses and profit on work completed prior to termination.  During 2024 and 2023, contracts terminated by the U.S. Government did not materially impact our results of operations.

Many of our U.S. Government contracts are awarded after a competitive bidding process in which we seek to emphasize our ability to provide superior products and technical solutions.

Raw Materials and Suppliers

Most raw materials used in our operations are readily available.  Some raw materials are purchased from a limited