Business Combinations, Investments, Goodwill and Acquired Intangible Assets

3 Months Ended

Apr. 03, 2016

Business Combinations and Investments, Goodwill and Acquired Intangible Assets [Abstract]

Business Combinations, Investments, Goodwill and Acquired Intangible Assets

Business Combinations, Investments, Goodwill and Acquired Intangible Assets

In the first quarter of 2016, Teledyne did not make any acquisitions, however, in the second quarter of 2016, Teledyne completed the acquisitions of two test and measurement instrumentation companies and one imaging software company for initial aggregate cash consideration of $60.0 million.

Teledyne spent $66.7 million on acquisitions and other investments in 2015, of which $18.8 million was spent in the first quarter of 2015.

In June 2015, Teledyne DALSA BV, a Netherlands-based subsidiary, acquired Industrial Control Machines SA (“ICM”). In April 2015, Teledyne DALSA, Inc. acquired the remaining 49% noncontrolling interest in the parent company of Optech Incorporated (“Optech”). In February 2015, Teledyne acquired Bowtech Products Limited (“Bowtech”) through a U.K.-based subsidiary. Also in 2015, Teledyne made an additional investment in Ocean Aero, Inc. (“Ocean Aero”).

Teledyne funded the purchases from borrowings under its credit facility and cash on hand. The results of the acquisitions have been included in Teledyne’s results since the dates of the respective acquisition.

For a further description of the Company’s acquisition activity for the fiscal year ended January 3, 2016, please refer to Note 3 of our 2015 Form 10-K.

Teledyne’s goodwill was $1,151.9 million at April 3, 2016 and $1,140.2 million at January 3, 2016. The increase in the balance of goodwill in 2016 resulted from the impact of exchange rate changes. Teledyne’s net acquired intangible assets were $240.0 million at April 3, 2016 and $243.3 million at January 3, 2016. The decrease in the balance of acquired intangible assets in 2016 resulted from amortization, partially offset by the impact of exchange rate changes.