Segment Information

3 Months Ended

Apr. 02, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

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.

Segment results include net sales and operating income by segment but excludes 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. Corporate expense includes various administrative expenses relating to the corporate office and certain non-operating expenses not allocated to our segments.

During 2016, as part of a continuing effort to reduce costs and improve operating performance the Company took actions to consolidate and relocate certain facilities and reduce headcount across various businesses, reducing our exposure to weak end markets and high cost locations. Teledyne incurred $0.4 million and $1.1 million in expense related to these efforts for the first quarter of 2017 and 2016, respectively. At April 2, 2017, Teledyne had a liability of $2.9 million included in other current liabilities related to these charges.

The following table presents Teledyne’s segment disclosures (dollars in millions):

	First Quarter						%
	2017			2016			Change
Net sales(a):
Instrumentation	$	232.8		$	223.7		4.1	%
Digital Imaging	113.8			89.9			26.6	%
Aerospace and Defense Electronics	151.9			152.6			(0.5	)%
Engineered Systems	67.6			64.3			5.1	%
Total net sales	$	566.1		$	530.5		6.7	%
Operating income(b):
Instrumentation	$	30.4		$	31.4		(3.2	)%
Digital Imaging	15.3			8.2			86.6	%
Aerospace and Defense Electronics	26.2			24.1			8.7	%
Engineered Systems	8.9			8.0			11.3	%
Corporate expense	(22.7		)	(10.8		)	110.2	%
Operating income	$	58.1		$	60.9		(4.6	)%

(a)	Net sales excludes inter-segment sales of $3.9 million and $5.1 million for the first quarter of 2017 and 2016, respectively.
(b)	The first quarter of 2017 includes pretax charges of $12.9 million related to the acquisition of e2v technologies plc, of which, $2.5 million was recorded in the Digital Imaging segment and $10.4 million was recorded to corporate expense.

Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash, deferred taxes, net pension assets/liabilities and other assets (in millions):

Identifiable assets:	April 2, 2017		January 1, 2017
Instrumentation	$	1,388.2	$	1,361.0
Digital Imaging	1,404.4		671.1
Aerospace and Defense Electronics	610.1		449.4
Engineered Systems	102.0		93.9
Corporate	168.3		199.0
Total identifiable assets	$	3,673.0	$	2,774.4

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 and the Engineered Systems segment.

The following tables provide a summary of the net sales by product line for the Instrumentation segment (in millions):

	First Quarter
Instrumentation	2017		2016
Marine Instrumentation	$	109.5	$	112.9
Environmental Instrumentation	75.5		68.7
Test and Measurement Instrumentation	47.8		42.1
Total	$	232.8	$	223.7