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Industry Segments
 3 Months Ended
Mar. 29, 2015
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.
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 micro electro-mechanical systems. 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 results include net sales and operating profit by segment but excludes noncontrolling interest, equity income or loss, unusual non-recurring legal matter settlements, 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. The table also provides a reconciliation of segment operating profit to total net income attributable to Teledyne (dollars in millions):
 
First Quarter
 
%
 
2015
 
2014
 
Change
Net sales:
 
 
 
 
 
Instrumentation
$
270.3

 
$
258.9

 
4.4
 %
Digital Imaging
90.4

 
101.9

 
(11.3
)%
Aerospace and Defense Electronics
141.2

 
153.3

 
(7.9
)%
Engineered Systems
63.1

 
59.4

 
6.2
 %
Total net sales
$
565.0

 
$
573.5

 
(1.5
)%
Segment operating profit:
 
 
 
 
 
Instrumentation
$
42.1

 
$
37.5

 
12.3
 %
Digital Imaging
9.3

 
9.7

 
(4.1
)%
Aerospace and Defense Electronics
19.4

 
23.8

 
(18.5
)%
Engineered Systems
6.7

 
6.1

 
9.8
 %
Total segment operating profit
77.5

 
77.1

 
0.5
 %
Corporate expense
(10.2
)
 
(11.1
)
 
(8.1
)%
Operating income
67.3

 
66.0

 
2.0
 %
Interest and debt expense, net
(5.9
)
 
(4.7
)
 
25.5
 %
Other income, net
0.8

 
0.6

 
33.3
 %
Income before income taxes
62.2

 
61.9

 
0.5
 %
Provision for income taxes
18.5

 
15.9

 
16.4
 %
Net income
43.7

 
46.0

 
(5.0
)%
Noncontrolling interest
—

 
(0.2
)
 
*
Net income attributable to Teledyne
$
43.7

 
$
45.8

 
(4.6
)%
*     not meaningful
Product Lines
The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. 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
2015
 
2014
Marine Instrumentation
$
159.5

 
$
150.6

Environmental Instrumentation
67.7

 
61.3

Test and Measurement Instrumentation
43.1

 
47.0

Total
$
270.3

 
$
258.9

 
 
 
 
 
First Quarter
Engineered Systems
2015
 
2014
Engineered Products and Services
$
49.1

 
$
47.6

Turbine Engines
5.6

 
6.1

Energy Systems
8.4

 
5.7

Total
$
63.1

 
$
59.4