Derivative Instruments (Tables)

9 Months Ended

Oct. 01, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Effect of Derivative Instruments Designated as Cash Flow Hedges

The effect of derivative instruments designated as cash flow hedges in the condensed consolidated financial statements for the third quarter and nine months ended October 1, 2017 and October 2, 2016 was as follows (in millions):

	Third Quarter						Nine Months
	2017			2016			2017			2016
Net gain (loss) recognized in AOCI (a)	$	1.0		$	(1.0	)	$	(1.9	)	$	3.4
Net gain (loss) reclassified from AOCI into cost of sales (a)	$	(0.8	)	$	(0.1	)	$	—		$	2.9
Net gain reclassified from AOCI into interest expense (a)	$	0.4		$	—		$	0.9		$	—
Net loss reclassified from AOCI into other income and expense, net (b)	$	(3.0	)	$	—		$	(9.3	)	$	—
Net foreign exchange gain (loss) recognized in other income and expense, net (c)	$	0.8		$	0.1		$	(0.8	)	$	(0.2	)

a)    Effective portion, pre-tax

b)     Amount reclassified to offset earnings impact of liability hedged by cross currency swap

c)     Amount excluded from effectiveness testing

Schedule of Notional Amounts of Outstanding Foreign Currency Contracts

As of October 1, 2017, Teledyne had non-designated foreign currency contracts of this type in the following pairs (in millions):

Contracts to Buy			Contracts to Sell
Currency	Amount		Currency	Amount
Canadian Dollars	C$	155.4	U.S. Dollars	US$	124.1
Canadian Dollars	C$	4.0	Euros	€	2.6
Euros	€	36.8	Great Britain Pounds	£	33.8
Great Britain Pounds	£	1.7	Australian Dollars	A$	2.7
Great Britain Pounds	£	54.8	U.S. Dollars	US$	71.8
Singapore Dollars	S$	1.9	U.S. Dollars	US$	1.4
Euros	€	14.2	U.S. Dollars	US$	17.1
Swiss Franc	Fr.	1.2	U.S. Dollars	US$	1.3
U.S. Dollars	US$	0.9	Japanese Yen	¥	100.0
Danish Krone	DKR	31.2	U.S. Dollars	US$	5.0
Swedish Krone	kr	34.2	Great Britain Pounds	£	3.3

Fair Values of Derivative Financial Instruments

The fair values of the Company’s derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy (in millions):

Asset/(Liability) Derivatives	Balance sheet location	October 1, 2017			January 1, 2017
Derivatives designated as hedging instruments:
Cash flow forward contracts	Other assets	$	5.3		$	—
Cash flow cross currency swap	Accrued liabilities	(10.0		)	—
Cash flow forward contracts	Accrued liabilities	—			(1.0		)
Cash flow forward contracts	Other long-term liabilities	—			(0.1		)
Total derivatives designated as hedging instruments		(4.7		)	(1.1		)
Derivatives not designated as hedging instruments:
Non-designated forward contracts	Other current assets	4.7			6.4
Non-designated forward contracts	Accrued liabilities	(4.1		)	(1.0		)
Total derivatives not designated as hedging instruments		0.6			5.4
Total (liability) asset derivatives		$	(4.1	)	$	4.3