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. The Company uses the Black–Scholes option pricing model to determine the fair value of stock options.

Stock-based compensation expense was $13.9 million and $19.5 million for the second quarter and first six months of 2026, respectively, and $11.3 million and $20.2 million for the second quarter and first six months of 2025, respectively.


	Second Quarter			Six Months
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Beginning balance	806,107	$	322.63	946,782	$	306.37
Granted (a)	47,251	$	656.69	47,251	$	656.69
Exercised	(13,867)	$	233.35	(150,110)	$	214.34
Canceled	(1,931)	$	453.23	(6,363)	$	303.24
Ending balance	837,560	$	342.65	837,560	$	342.65
Exercisable at end of period	734,323	$	313.25	734,323	$	313.25

(a) In the second quarter of 2026, the Company granted stock options with a grant date fair value of $253.85 per share.


	Second Quarter			Six Months
	Shares	Weighted Average Fair Value per Share		Shares	Weighted Average Fair Value per Share
Beginning balance	158,338	$	449.24	173,727	$	434.60
Granted	54,989	$	656.45	77,929	$	569.50
Vested	(23,384)	$	460.09	(54,112)	$	458.17
Forfeited/canceled	(1,568)	$	493.71	(9,169)	$	429.93
Ending balance	188,375	$	508.05	188,375	$	508.05