Stockholders’ Equity

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]


Common stock and treasury stock activity:	Common Stock	Treasury Stock

















Balance, January 2, 2022	47,194,766	502,470
Issued	—	(220,339)
Balance, January 1, 2023	47,194,766	282,131
Issued	137,079	(282,131)
Balance, December 31, 2023	47,331,845	—

Shares issued from treasury stock include stock options exercised as well as shares issued under certain other compensation plans.

Stock Options

The Company recorded $12.4 million, $17.9 million, and $20.0 million for stock option expense for 2023, 2022 and 2021, respectively. The Company issues shares of common stock upon the exercise of stock options.

During 2023 and 2022, the amount of cash received from the exercise of stock options was $45.4 million and $23.6 million, respectively. The total pretax intrinsic value of options exercised during 2023 and 2022 (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) was $111.0 million and $53.7 million, respectively. At December 31, 2023, the intrinsic value of stock options outstanding was $262.9 million and the intrinsic value of stock options exercisable was $255.1 million.

At December 31, 2023, there was $13.1 million of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted-average period of 1.4 years. This amount can be impacted by employee retirements or terminations. On January 23, 2024, the Company granted approximately 67,000 stock options at an exercise price of $441.98 per share and a weighted-average fair value of $171.05 per share.


Stock option valuation assumptions:	2022	2021
Expected dividend yield	n/a	n/a
Expected volatility	26.5%	27.8%
Risk-free interest rate	3.33%	0.09% to 1.58%
Expected life in years	6.4	5.2

The Company did not grant stock options in 2023. Based on the assumptions used in the valuation of stock options, the grant date weighted average fair value of stock options granted in 2022 and 2021 was $124.44 and $134.88, respectively.

Stock option transactions for Teledyne’s stock option plans are summarized as follows:



	2023			2022			2021
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Beginning balance	1,726,731	$	223.43	1,793,857	$	206.08	1,819,147	$	170.10
Granted	—	$	—	135,751	$	360.39	211,973	$	440.48
Exercised	(372,739)	$	121.73	(179,828)	$	131.44	(213,384)	$	118.55
Canceled or expired	(16,020)	$	389.85	(23,049)	$	397.36	(23,879)	$	328.15
Ending balance	1,337,972	$	249.76	1,726,731	$	223.43	1,793,857	$	206.08
Options exercisable at end of period	1,190,838	$	232.10	1,395,949	$	182.53	1,328,191	$	148.73

The following table provides certain information with respect to stock options outstanding and stock options exercisable at December 31, 2023, under the stock option plans.


	Stock Options Outstanding				Stock Options Exercisable
Range of Exercise Prices	Shares	Weighted Average Exercise Price		Remaining life in years	Shares	Weighted Average Exercise Price
$40.70-$99.99	164,086	$	83.89	1.4	164,086	$	83.89
$100.00-$199.99	419,498	$	156.20	3.6	419,498	$	156.20
$200.00-$299.99	251,966	$	217.65	5.1	251,966	$	217.65
$300.00-$399.99	319,635	$	373.76	7.3	231,537	$	378.78
$400.00-$445.21	182,787	$	440.85	7.7	123,751	$	440.86



	1,337,972	$	249.76	5.1	1,190,838	$	232.10

Restricted Stock

The following table shows restricted stock award activity:


	Employee Time-Based Restricted Stock Units		Employee Performance-Based Restricted Stock Awards			Non-Employee Directors Restricted Stock Units
Restricted Stock:	Shares	Weighted average fair value per share	Shares	Weighted average fair value per share		Shares		Weighted average fair value per share
Balance, January 3, 2021	—	—	43,405	$	228.80	$	9,766	$	224.94
Granted	62,974	$409.41	10,227	$	334.92	2,592		$	450.27
Vested	(8,720)	$409.41	(15,423)	$	176.64	(5,300)		$	227.9
Forfeited/Canceled	(4,903)	$409.41	(380)	$	176.64	—		$	—
Balance, January 2, 2022	49,351	$409.41	37,829	$	279.27	7,058		$	308.54
Granted	89,472	$360.39	19,492	$	427.51	3,904		$	451.13
Vested	(15,698)	$409.41	(17,522)	$	200.00	(1,440)		$	450.27
Forfeited/Canceled	(5,653)	$399.20	(398)	$	388.15	—		$	—
Balance, January 1, 2023	117,472	$372.51	39,401	$	386.76	9,522		$	345.57
Granted	2,316	$418.20	14,139	$	361.08	4,190		$	404.92
Vested	(39,705)	$376.99	(9,106)	$	360.33	(1,880)		$	451.16
Forfeited/Canceled	(10,644)	$369.60	(2,616)	$	346.08	—		$	—
Balance, December 31, 2023	69,439	$371.90	41,818	$	357.43	11,832		$	349.81

Employee Time-based Restricted Stock Units

The Company recorded $14.2 million, $7.8 million and $7.8 million in compensation expense related to restricted stock units to employees for fiscal years 2023, 2022 and 2021 respectively, which is primarily recorded in the Digital Imaging segment. At December 31, 2023, there was $19.2 million of total estimated unrecognized compensation cost related to non-vested awards which is expected to be recognized over a weighted-average period of approximately 1.8 years. This amount can be impacted by employee retirements or terminations. On January 23, 2024, the Company granted approximately 70,000 time-based restricted stock units with a weighted-average fair value of $441.98 per share.

Employee Performance-based Restricted Stock Awards

Under Teledyne’s restricted stock award program key officers and executives receive a grant of stock equal to a specified percentage of the participant’s annual base salary at the date of grant. The restricted stock is subject to transfer and forfeiture restrictions during an applicable “restricted period”. The restrictions have both time-based and performance-based components. The restricted period expires (and the restrictions lapse) on the third anniversary of the date of grant, subject to the achievement of stated performance objectives over a specified three-year performance period. If employment is terminated (other than by death, retirement or disability) during the restricted period, the stock grant is forfeited.

The estimated expense for restricted stock awards with both time-based and performance-based components to employees is based on a lattice-based simulation which takes into consideration several factors including volatility, risk free interest rates and the correlation of Teledyne’s stock price with the comparator, which has been the S&P 500 Index for awards granted since 2021. The Company recorded $5.2 million, $5.1 million and $3.5 million in compensation expense related to restricted stock awards to employees for fiscal years 2023, 2022 and 2021, respectively. At December 31, 2023, there was $5.8 million of total estimated unrecognized compensation cost related to non-vested awards which is expected to be recognized over a weighted-average period of approximately 1.5 years.

Non-Employee Directors Restricted Stock

Non-employee directors each received restricted stock units valued at $170,000 in 2023, $170,000 in 2022 and $130,000 in 2021 or valued at half the amount for a person who becomes a director for the first time after the date of the Annual Meeting. The restricted stock units generally vest one year following the date of grant and are settled in shares of common stock on the date of vesting unless a director has elected to defer settlement of the award until his or her separation from Board service. The annual expense related to non-employee director’s restricted stock units was $1.7 million for 2023, $1.7 million for 2022 and $1.2 million for 2021, with an immaterial amount of unrecognized compensation cost that will be recognized over the first half of 2024.