Derivative Instruments

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 31, 2023, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy Canadian dollars and to sell U.S. dollars totaling $164.2 million. These foreign currency forward contracts have maturities ranging from March 2024 to February 2026. As of December 31, 2023, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy British pounds and to sell U.S. dollars totaling $16.8 million. These foreign currency forward contracts have maturities ranging from March 2024 to February 2025.

The cross currency swap has notional amounts of €156.0 million and $150.0 million and mature in October 2024.

In addition, the Company utilizes foreign currency forward contracts which are not designated as hedging instruments for accounting purposes to mitigate foreign exchange rate risk associated with foreign currency denominated monetary assets and liabilities, including intercompany receivables and payables. As of December 31, 2023, Teledyne had foreign currency contracts of this type primarily in the following pairs (in millions):



Contracts to Buy			Contracts to Sell
Currency	Amount		Currency	Amount
Canadian Dollars	$	11.1	Euros	€	7.5
Canadian Dollars	$	271.5	U.S. Dollars	US$	200.7
Danish Krone	Kr.	115.6	U.S. Dollars	US$	17.0
Euros	€	55.5	U.S. Dollars	US$	59.6

Great Britain Pounds	£	20.6	Euros	€	23.8
Great Britain Pounds	£	34.8	U.S. Dollars	US$	43.8





Norwegian Krone	kr	138.1	U.S. Dollars	US$	13.1
Swedish Krona	kr	205.0	Euros	€	16.8

The above table includes non-designated hedges derived from terms contained in triggered or previously designated cash flow hedges. The gains and losses on these derivatives which are not designated as hedging instruments, are intended to, at a minimum, partially offset the transaction gains and losses recognized in earnings.

All derivatives are recorded on the balance sheet at fair value. The accounting for income and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. Teledyne does not use foreign currency forward contracts for speculative or trading purposes.

The effect of derivative instruments designated as cash flow hedges for 2023 and 2022 was as follows (in millions):


	2023		2022
Net gain (loss) recognized in AOCI - foreign exchange contracts (a)	$	19.3	$	17.6
Net gain (loss) recognized in AOCI - interest rate contracts	$	—	$	1.7
Net gain (loss) reclassified from AOCI into revenue/cost of sales - foreign exchange contracts	$	(6.2)	$	4.8
Net gain (loss) reclassified from AOCI into interest expense - foreign exchange contracts	$	7.6	$	5.2
Net gain (loss) reclassified from AOCI into interest expense -interest rate contracts	$	0.6	$	0.4
Net gain (loss) reclassified from AOCI into other income and expense, net - foreign exchange contracts (b)	$	8.0	$	15.5

(a)Effective portion

(b)Amount reclassified to offset earnings impact of liability hedged by cross currency swap

Net deferred gains recorded in AOCI, net of tax, for forward contracts that will mature in the next 12 months total $3.4 million. These gains are expected to be offset by anticipated losses in the value of the forecasted underlying hedged item. Amounts related to the cross currency swaps expected to be reclassified to AOCI into income in the next 12 months total $5.0 million.

The effect of derivative instruments not designated as cash flow hedges recognized in other income and expense for 2023 and 2022 was an expense of $13.7 million and expense of $32.0 million, respectively.