Segment Information

3 Months Ended

Apr. 04, 2021

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 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.

As part of a continuing effort to reduce costs and improve operating performance, as well as to respond to the impact of COVID-19, beginning in 2020, the Company took actions to reduce headcount across various businesses, reducing our exposure to weak end markets, such as commercial aerospace. Teledyne incurred $1.0 million in expense related to these actions, including facility consolidation expense, for the first quarter of 2021, compared with $3.7 million for the first quarter of 2020. At April 4, 2021, Teledyne had a liability of $1.3 million included in other current liabilities related to these actions.

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

	First Quarter				%
	2021		2020		Change
Net sales(a):
Instrumentation	$	286.5	$	285.1	0.5	%
Digital Imaging	263.3		246.7		6.7	%
Aerospace and Defense Electronics	151.2		156.3		(3.3)	%
Engineered Systems	104.7		96.5		8.5	%
Total net sales	$	805.7	$	784.6	2.7	%
Operating income:
Instrumentation	$	59.4	$	50.8	16.9	%
Digital Imaging	52.0		43.8		18.7	%
Aerospace and Defense Electronics	28.3		13.4		111.2	%
Engineered Systems	14.9		11.4		30.7	%
Corporate expense	(19.4)		(15.4)		26.0	%
Operating income	$	135.2	$	104.0	30.0	%
(a) Net sales excludes inter-segment sales of $4.2 million and $6.9 million for the first quarter 2021 and 2020, respectively.

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

Identifiable assets:	April 4, 2021		January 3, 2021
Instrumentation	$	1,663.3	$	1,676.2
Digital Imaging	1,984.4		2,000.8
Aerospace and Defense Electronics	540.9		567.6
Engineered Systems	163.1		175.1
Corporate (a)	3,266.7		665.1
Total identifiable assets	$	7,618.4	$	5,084.8

(a) The increase from January 3, 2021 was primarily due to higher cash and cash equivalents which included the proceeds of debt incurred to partially fund the pending acquisition of FLIR.

Product Lines

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

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

	First Quarter
Instrumentation	2021		2020
Marine Instrumentation	102.0		$	109.3
Environmental Instrumentation	114.8		109.3
Test and Measurement Instrumentation	69.7		66.5
Total	$	286.5	$	285.1

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 April 4, 2021						First Quarter Ended March 29, 2020
	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	$	22.6	$	263.9	$	286.5	$	41.5	$	243.6	$	285.1
Digital Imaging	32.1		231.2		263.3		29.3		217.4		246.7
Aerospace and Defense Electronics	53.7		97.5		151.2		53.8		102.5		156.3
Engineered Systems	99.2		5.5		104.7		88.3		8.2		96.5
	$	207.6	$	598.1	$	805.7	$	212.9	$	571.7	$	784.6
a) Includes sales as a prime contractor or subcontractor.

	First Quarter Ended April 4, 2021						First Quarter Ended March 29, 2020
	Contract Type						Contract Type
(in millions)	Fixed Price		Cost Type		Total		Fixed Price		Cost Type		Total
Net Sales:
Instrumentation	$	282.8	$	3.7	$	286.5	$	281.5	$	3.6	$	285.1
Digital Imaging	240.1		23.2		263.3		213.4		33.3		246.7
Aerospace and Defense Electronics	151.1		0.1		151.2		156.1		0.2		156.3
Engineered Systems	51.0		53.7		104.7		50.3		46.2		96.5
	$	725.0	$	80.7	$	805.7	$	701.3	$	83.3	$	784.6

	First Quarter Ended April 4, 2021								First Quarter Ended March 29, 2020
	Geographic Region (a)								Geographic Region (a)
(in millions)	United States		Europe		All other		Total		United States		Europe		All other		Total
Net sales:
Instrumentation	$	213.4	$	58.6	$	14.5	$	286.5	$	217.8	$	54.9	$	12.4	$	285.1
Digital Imaging	80.2		72.2		110.9		263.3		77.6		68.8		100.3		246.7
Aerospace and Defense Electronics	125.5		25.7		—		151.2		131.9		24.2		0.2		156.3
Engineered Systems	104.7		—		—		104.7		96.5		—		—		96.5
	$	523.8	$	156.5	$	125.4	$	805.7	$	523.8	$	147.9	$	112.9	$	784.6
a) Net sales by geographic region of origin.