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Business Combinations and Investments, Goodwill and Acquired Intangible Assets
 6 Months Ended
Jul. 03, 2011
Business Combinations and Investments, Goodwill and Acquired Intangible Assets [Abstract]  
Business Combinations and Investments, Goodwill and Acquired Intangible Assets
Note 2. Business Combinations and Investments, Goodwill and Acquired Intangible Assets
The following briefly describes the Company’s acquisition activity for the six months ended July 3, 2011. For a description of the Company’s acquisition and divestiture activity for the year ended January 2, 2011, please refer to Notes 3 and 16 of our 2010 Form 10-K.
On February 12, 2011, the Company acquired the stock of DALSA Corporation (“DALSA”). DALSA designs and manufactures digital image capture products, primarily consisting of high performance sensors, cameras and software for use in industrial, scientific, medical and professional applications products, as well as specialty semiconductors and micro electro mechanical systems (MEMS). The Company acquired DALSA for an aggregate purchase price of $339.5 million in cash. Headquartered in Waterloo, Ontario, Canada, DALSA had annual revenues of CAD $212.3 million for its fiscal year ended December 2010. DALSA operates within the Digital Imaging segment.
In addition to the acquisition of DALSA, during the first six months of 2011, the Company completed the acquisition of a majority interest in Nova Sensors (“Nova”) for total consideration of $5.1 million in cash and a minority interest in Optech Incorporated (“Optech”) for $18.9 million. Nova produces compact short-wave and mid-wave infrared cameras and operates within the Digital Imaging segment. Optech is a laser-based survey and digital imaging company.
Teledyne Technologies funded the purchases primarily from borrowings under its credit facility and cash on hand.
DALSA’s results have been included since the date of the acquisition. The unaudited pro forma financial information below assumes that DALSA had been acquired at the beginning of the 2011 and 2010 fiscal years and includes the effect of estimated amortization of acquired identifiable intangible assets, increased interest expense on net acquisition debt, as well as the impact of purchase accounting adjustments for certain liabilities and inventory valuation adjustments. This unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have resulted had the acquisition been in effect at the beginning of the periods presented. In addition, the unaudited pro forma financial results are not intended to be a projection of future results and do not reflect any operating efficiencies or cost savings that might be achievable.
                                 
    Second Quarter     Six Months  
(unaudited -in millions, except per share amounts)   2011     2010     2011     2010  
Net sales
  $ 502.9     $ 458.8     $ 995.1     $ 912.1  
Net income from continuing operations
  $ 38.7     $ 27.1     $ 62.6     $ 49.3  
Net income attributable to Teledyne Technologies
  $ 152.3     $ 27.7     $ 175.7     $ 49.9  
Basic earnings per common share — continuing operations
  $ 1.06     $ 0.75     $ 1.71     $ 1.36  
Basic earnings per common share — attributable to Teledyne Technologies
  $ 4.16     $ 0.77     $ 4.80     $ 1.38  
Diluted earnings per common share — continuing operations
  $ 1.04     $ 0.73     $ 1.68     $ 1.34  
Diluted earnings per common share — attributable to Teledyne Technologies
  $ 4.08     $ 0.75     $ 4.71     $ 1.36  
 
                       
 
(a)   The above unaudited proforma information is presented for the DALSA acquisition as it is considered a material acquisition.
Teledyne Technologies’ goodwill was $721.5 million at July 3, 2011 and $546.3 million at January 2, 2011. The increase in the balance of goodwill in 2011 primarily resulted from the acquisition of DALSA. Teledyne Technologies’ net acquired intangible assets were $197.7 million at July 3, 2011 and $113.9 million at January 2, 2011. The increase in the balance of acquired intangible assets in 2011 primarily resulted from the acquisition of DALSA. The Company’s cost to acquire DALSA has been allocated to the assets acquired and liabilities assumed based upon their respective fair values as of the date of the completion of the acquisition. The differences between the fair value of the consideration paid and the estimated fair value of the assets and liabilities acquired has been recorded as goodwill. The Company is still in the process of specifically identifying the amount to be assigned to certain liabilities and the related impact on taxes and goodwill for the DALSA acquisition. The Company made preliminary estimates as of July 3, 2011, as the measurement period for the acquisition has not yet ended.
The following is a summary at the acquisition date of the estimated fair values allocated to the assets acquired and liabilities assumed for the acquisitions made during fiscal 2011 (in millions):
         
Current assets
  $ 98.7  
Property, plant and equipment
    53.3  
Goodwill
    170.8  
Acquired intangible assets
    93.5  
Current liabilities
    (33.3 )
Long-term liabilities
    (38.4 )
 
     
Total net assets acquired
  $ 344.6