Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Cash equivalents were $265.1 million and $167.1 million at December 31, 2023 and January 1, 2023, respectively. The Company has categorized its cash equivalents as a Level 1 financial asset, measured at fair value based on quoted prices in active markets of identical assets.

Teledyne estimates the fair value of its long-term debt based on debt of similar type, rating and maturity and at comparable interest rates. The Company’s long-term debt is considered a level 2 fair value hierarchy and is valued based on observable market data. As of December 31, 2023 and January 1, 2023, the aggregate fair values of our borrowings were $2,965.3 million and $3,492.7 million, respectively, and the carrying values were $3,266.0 million and $3,947.1 million, respectively.

The fair values of the Company’s derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy (in millions):


Asset (Liability) Derivative Positions	Balance sheet location	December 31, 2023		January 1, 2023
Derivatives designated as hedging instruments:
Cash flow forward contracts	Other current assets	$	3.7	$	0.4
Cash flow forward contracts	Other non-current assets	2.4		$	—
Cash flow forward contracts	Accrued liabilities	—		(6.8)
Interest rate contracts	Other current assets	—		0.7


Cash flow cross currency swaps	Other current assets	0.1		2.7
Cash flow cross currency swaps	Accrued liabilities	(21.3)		(14.0)
Cash flow cross currency swaps	Other long-term liabilities	—		(18.3)


Total derivatives designated as hedging instruments		(15.1)		(35.3)
Derivatives not designated as hedging instruments:
Non-designated foreign currency forward contracts	Other current assets	14.2		3.5
Non-designated foreign currency forward contracts	Accrued liabilities	(3.2)		(7.0)
Total derivatives not designated as hedging instruments		11.0		(3.5)
Total asset (liability) derivatives		$	(4.1)	$	(38.8)

The carrying value of other on-balance-sheet financial instruments approximates fair value, and the cost, if any, to

terminate off-balance sheet financial instruments (primarily letters of credit) is not significant.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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