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 $12.2 million and $31.7 million for the third quarter and first nine months of 2026, respectively, and $10.5 million and $30.7 million for the third quarter and first nine months of 2025, respectively.


	Third Quarter			Nine Months
	Shares	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
Beginning balance	837,560	$	342.65	946,782	$	306.37
Granted (a)	—	$	—	47,251	$	656.69
Exercised	(18,082)	$	219.45	(168,192)	$	214.89
Canceled	(309)	$	454.79	(6,672)	$	310.26
Ending balance	819,169	$	345.33	819,169	$	345.33
Exercisable at end of period	717,795	$	316.14	717,795	$	316.14

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


	Third Quarter			Nine Months
	Shares	Weighted Average Fair Value per Share		Shares	Weighted Average Fair Value per Share
Beginning balance	188,375	$	509.39	173,727	$	434.60
Granted	243	$	612.95	78,172	$	613.72
Vested	(320)	$	413.74	(54,432)	$	437.66
Forfeited/canceled	(2,616)	$	520.99	(11,785)	$	429.05
Ending balance	185,682	$	509.51	185,682	$	509.51