XML 56 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Industry Segments
 3 Months Ended
Mar. 30, 2014
Segment Reporting [Abstract]  
Industry Segments
Industry Segments
Teledyne is a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems. Our customers include government agencies, aerospace prime contractors, energy exploration and production companies, major industrial companies and airlines.
In the second quarter of 2013, the Company changed the reporting structure of two of its interconnect business units. The two interconnect business units were formerly reported as part of the Aerospace and Defense Electronics segment and are now reported as part of the Instrumentation segment. These business units primarily serve energy production markets and are now managed by and integrated with our other interconnect businesses within Teledyne Oil & Gas, which is part of the marine instrumentation product line. Previously reported segment data has been restated to reflect this change.
The Company has four reportable segments: Instrumentation; Digital Imaging; Aerospace and Defense Electronics; and Engineered Systems. The Company manages, evaluates and aggregates its operating segments for segment reporting purposes primarily on the basis of product and service type, production process, distribution methods, type of customer, management organization, sales growth potential and long-term profitability. The Instrumentation segment provides monitoring and control equipment for marine, environmental, scientific, industrial and defense applications, electronic test and measurement instruments and harsh environment interconnect products. The Digital Imaging segment includes high performance sensors, cameras and systems, within the visible, infrared and X-ray spectra, for use in industrial, government and medical applications, as well as MEMS. It also includes our sponsored and centralized research laboratories benefiting government programs and businesses. The Aerospace and Defense Electronics segment provides sophisticated electronic components and subsystems and communications products, including defense electronics, harsh environment interconnects, data acquisition and communications equipment for aircraft and components and subsystems for wireless and satellite communications, as well as general aviation batteries. The Engineered Systems segment provides innovative systems engineering and integration, advanced technology application, software development and manufacturing solutions for defense, space, environmental and energy applications. The Engineered Systems segment also designs and manufactures electrochemical energy systems and small turbine engines.
Segment operating profit includes other income and expense directly related to the segment, but excludes noncontrolling interest, interest income and expense, gains and losses on the disposition of assets, sublease rental income and non-revenue licensing and royalty income, domestic and foreign income taxes and corporate office expenses.
The following table presents Teledyne’s interim industry segment disclosures for net sales and operating profit including other segment income. The table also provides a reconciliation of segment operating profit to total net income attributable to Teledyne (dollars in millions):
 
 
First Quarter
 
%
 
 
2014
 
2013
 
Change
Net sales:
 
 
 
 
 
 
Instrumentation (a)
 
$
258.9

 
$
232.7

 
11.3
 %
Digital Imaging
 
101.9

 
102.4

 
(0.5
)%
Aerospace and Defense Electronics (a)
 
153.3

 
163.1

 
(6.0
)%
Engineered Systems
 
59.4

 
71.2

 
(16.6
)%
Total net sales
 
$
573.5

 
$
569.4

 
0.7
 %
Segment operating profit:
 
 
 
 
 
 
Instrumentation (a)
 
$
37.5

 
$
36.6

 
2.5
 %
Digital Imaging
 
9.7

 
5.2

 
86.5
 %
Aerospace and Defense Electronics (a)
 
23.8

 
20.2

 
17.8
 %
Engineered Systems
 
6.1

 
6.4

 
(4.7
)%
Total segment operating profit
 
77.1

 
68.4

 
12.7
 %
Corporate expense
 
(11.1
)
 
(9.5
)
 
16.8
 %
Other income/(expense), net
 
0.6

 
(0.5
)
 
*
Interest and debt expense, net
 
(4.7
)
 
(5.4
)
 
(13.0
)%
Income before income taxes
 
61.9

 
53.0

 
16.8
 %
Provision for income taxes
 
15.9

 
13.2

 
20.5
 %
Net income
 
46.0

 
39.8

 
15.6
 %
Noncontrolling interest
 
(0.2
)
 
0.6

 
*
Net income attributable to Teledyne
 
$
45.8

 
$
40.4

 
13.4
 %
*     not meaningful
a)
Our previously reported 2013 segment data has been restated to reflect a revised segment reporting structure adopted in the second quarter of 2013. The change only impacted the Instrumentation and Aerospace and Defense Electronics segments.

Product Lines
The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. In the first quarter of 2014, within the instrumentation segment, one business unit previously reported in the environmental instrumentation product line is now reported as part of the test and measurement instrumentation product line. Total sales for the business unit for 2013 were $9.4 million. Previously reported product line data has been restated to reflect this change. The Digital Imaging segment contains one product line as does the Aerospace and Defense Electronics segment. The Engineered Systems segment includes three product lines: Engineered Products and Services, Turbine Engines and Energy Systems.
The following tables provide a summary of the sales by product line for the Instrumentation segment and the Engineered Systems segment (in millions):
 
First Quarter
Instrumentation
2014
 
2013
Environmental Instrumentation
$
61.3

 
$
60.1

Marine Instrumentation
150.6

 
127.1

Test and Measurement Instrumentation
47.0

 
45.5

Total
$
258.9

 
$
232.7

 
 
 
 
 
First Quarter
Engineered Systems
2014
 
2013
Engineered Products and Services
$
47.6

 
$
58.6

Turbine Engines
6.1

 
6.0

Energy Systems
5.7

 
6.6

Total
$
59.4

 
$
71.2