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 includes net sales and operating income by segment but excludes non-service retirement benefit income, 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, including certain acquisition-related transaction costs, not allocated to our segments.

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



	First Quarter						%
	2019			2018			Change
Net sales(a):
Instrumentation	$	256.5		$	239.0		7.3	%
Digital Imaging	235.3			211.0			11.5	%
Aerospace and Defense Electronics	180.4			173.6			3.9	%
Engineered Systems	73.0			72.0			1.4	%
Total net sales	$	745.2		$	695.6		7.1	%
Operating income:
Instrumentation	$	39.9		$	27.8		43.5	%
Digital Imaging	37.0			34.6			6.9	%
Aerospace and Defense Electronics	33.8			31.7			6.6	%
Engineered Systems	4.7			7.2			(34.7	)%
Corporate expense	(18.1		)	(12.9		)	40.3	%
Operating income	$	97.3		$	88.4		10.1	%



(a)	Net sales excludes inter-segment sales of $6.4 million and $5.2 million for the first quarter of 2019 and 2018, respectively.

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:	March 31, 2019		December 30, 2018
Instrumentation	$	1,422.2	$	1,392.7
Digital Imaging	1,832.2		1,600.9
Aerospace and Defense Electronics	597.4		521.4
Engineered Systems	117.6		116.6
Corporate	192.3		177.7
Total identifiable assets	$	4,161.7	$	3,809.3

Product Lines

The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. Teledyne’s other three segments each contain one product line.

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



	First Quarter
Instrumentation	2019		2018
Marine Instrumentation	$	105.2	$	104.2
Environmental Instrumentation	86.4		81.2
Test and Measurement Instrumentation	64.9		53.6
Total	$	256.5	$	239.0

We also disaggregate our revenue from contracts with customers by customer type, contract-type and geographic region for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.



	First Quarter Ended March 31, 2019						First Quarter Ended April 1, 2018
	Customer Type						Customer Type
(in millions)	United States Government (a)		Other, Primarily Commercial		Total		United States Government (a)		Other, Primarily Commercial		Total
Net Sales:
Instrumentation	$	14.2	$	242.3	$	256.5	$	12.8	$	226.2	$	239.0
Digital Imaging	26.2		209.1		235.3		22.4		188.6		211.0
Aerospace and Defense Electronics	68.0		112.4		180.4		65.3		108.3		173.6
Engineered Systems	61.5		11.5		73.0		59.0		13.0		72.0
	$	169.9	$	575.3	$	745.2	$	159.5	$	536.1	$	695.6

a) Includes sales as a prime contractor or subcontractor.



	First Quarter Ended March 31, 2019						First Quarter Ended April 1, 2018
	Contract Type						Contract Type
(in millions)	Fixed Price		Cost Type		Total		Fixed Price		Cost Type		Total
Net Sales:
Instrumentation	$	251.0	$	5.5	$	256.5	$	234.1	$	4.9	$	239.0
Digital Imaging	213.3		22.0		235.3		191.2		19.8		211.0
Aerospace and Defense Electronics	180.1		0.3		180.4		173.4		0.2		173.6
Engineered Systems	18.2		54.8		73.0		23.2		48.8		72.0
	$	662.6	$	82.6	$	745.2	$	621.9	$	73.7	$	695.6



	First Quarter Ended March 31, 2019								First Quarter Ended April 1, 2018
	Geographic Region (a)								Geographic Region (a)
(in millions)	United States		Europe		All other		Total		United States		Europe		All other		Total
Net sales:
Instrumentation	$	211.1	$	33.6	$	11.8	$	256.5	$	191.0	$	39.4	$	8.6	$	239.0
Digital Imaging	72.4		70.3		92.6		235.3		56.8		67.0		87.2		211.0
Aerospace and Defense Electronics	165.1		15.1		0.2		180.4		154.1		18.8		0.7		173.6
Engineered Systems	71.2		1.8		—		73.0		70.2		1.8		—		72.0
	$	519.8	$	120.8	$	104.6	$	745.2	$	472.1	$	127.0	$	96.5	$	695.6

a) Net sales by geographic region of origin.