Stock-based Compensation

6 Months Ended

Jun. 30, 2024

Share-Based Payment Arrangement [Abstract]

Teledyne has long-term incentive plans pursuant to which it has granted non-qualified stock options, restricted stock awards and restricted stock units. The Company also has non-employee director stock compensation plans, pursuant to which common stock, stock options and restricted stock units have been issued to its directors. The Company issues shares of common stock upon the exercise of stock options. In 2024, the Company began using the Black-Scholes option pricing model to determine the fair value of stock options. The adoption of the Black-Scholes option pricing model was driven by a review of option exercise history, which more closely aligned with the methodology of the Black-Scholes option pricing model, and the adoption of the Black-Scholes option pricing model did not materially change the grant-date fair value calculation.

Stock-based compensation expense was $9.3 million and $21.3 million for the second quarter and first six months of 2024, respectively, and $8.4 million and $16.3 million for the second quarter and first six months of 2023, respectively. Stock option activity for the second quarter and first six months of 2024 is as follows:



	Second Quarter			Six Months
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Beginning balance	1,312,665	$	267.47	1,337,972	$	223.43
Granted	—	$	—	67,003	$	441.98
Exercised	(16,012)	$	149.11	(99,039)	$	115.76
Canceled	(9,377)	$	376.60	(18,660)	$	382.80
Ending balance	1,287,276	$	268.15	1,287,276	$	268.15
Exercisable at end of period	1,086,068	$	242.05	1,086,068	$	242.05

Restricted stock activity for the second quarter and first six months of 2024 is as follows:


	Second Quarter			Six Months
	Shares	Weighted average fair value per share		Shares	Weighted average fair value per share
Beginning balance	188,237	$	394.81	123,089	$	364.86
Granted	4,783	$	364.21	94,050	$	428.99
Vested	(2,170)	$	405.09	(23,033)	$	384.35
Forfeited/canceled	(1,882)	$	391.94	(5,138)	$	381.97
Ending balance	188,968	$	383.89	188,968	$	383.89