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Segment Information
 6 Months Ended
Jul. 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.
On May 14, 2021, the Company completed the acquisition of FLIR. The financial results of FLIR have been included since the date of the acquisition and are part of the Digital Imaging segment. See Note 3 to these Notes to Condensed Consolidated Financial Statements for information regarding the FLIR acquisition.
As part of a continuing effort to reduce costs and improve operating performance, as well as to respond to the impact of COVID, 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 $24.2 million and $25.1 million in expense related to these actions, including facility consolidation expense, for the second quarter and first six months of 2021 respectively, compared with $7.7 million and $11.4 million for the second quarter and first six months of 2020, respectively. The second
quarter and first six months of 2021 includes $23.2 million related to FLIR. At July 4, 2021, Teledyne had a liability of approximately $1.0 million included in other current liabilities related to these actions.
The following table presents Teledyne’s segment disclosures (dollars in millions):
Second Quarter%Six Months%
20212020Change20212020Change
Net sales(a):
Digital Imaging (b)$579.5 $237.6 143.9 %$842.8 $484.3 74.0 %
Instrumentation 291.1 263.1 10.6 %577.6 548.2 5.4 %
Aerospace and Defense Electronics152.4 143.1 6.5 %303.6 299.4 1.4 %
Engineered Systems98.0 99.5 (1.5)%202.7 196.0 3.4 %
Total net sales$1,121.0 $743.3 50.8 %$1,926.7 $1,527.9 26.1 %
Operating income:
Digital Imaging (b)$84.6 $46.8 80.8 %$136.6 $90.6 50.8 %
Instrumentation64.6 48.5 33.2 %124.0 99.3 24.9 %
Aerospace and Defense Electronics28.4 17.5 62.3 %56.7 30.9 83.5 %
Engineered Systems11.0 10.8 1.9 %25.9 22.2 16.7 %
Corporate expense (c)(84.2)(13.8)510.1 %(103.6)(29.2)254.8 %
Operating income$104.4 $109.8 (4.9)%$239.6 $213.8 12.1 %
(a) Net sales excludes inter-segment sales of $5.1 million and $9.3 million for the second quarter and first six months of 2021, respectively, and $5.5 million and $12.4 million for the second quarter and first six months of 2020, respectively.
(b) On May 14, 2021, the Company completed the acquisition of FLIR, and the 2021 financial results of FLIR have been included since the date of the acquisition.
(c) Corporate expense for the second quarter and first six months of 2021 includes $70.5 million and $76.4 million, respectively, in acquisition-related transaction and purchase accounting expenses related to the FLIR acquisition.
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:July 4, 2021January 3, 2021
Digital Imaging (a)$11,613.3 $2,000.8 
Instrumentation1,660.7 1,676.2 
Aerospace and Defense Electronics533.1 567.6 
Engineered Systems156.4 175.1 
Corporate259.4 665.1 
Total identifiable assets$14,222.9 $5,084.8 
(a) The increase from January 3, 2021 was primarily due to assets acquired, including goodwill and acquired intangible assets, acquired in connection with the May 2021 FLIR acquisition.

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):
Second QuarterSix Months
Instrumentation2021202020202020
Marine Instrumentation$104.9 $109.9 $206.9 $219.2 
Environmental Instrumentation112.8 94.3 227.6 203.6 
Test and Measurement Instrumentation73.4 58.9 143.1 125.4 
Total$291.1 $263.1 $577.6 $548.2 
We also disaggregate our revenue from contracts with customers by customer 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. With the exception of the Engineered Systems segment, net sales in our segments is primarily derived from fixed price contracts. Net sales in the Engineered Systems segment is typically between 45% and 55% fixed price contracts in a given reporting period, with the balance of net sales derived from cost type contracts. For the six months ended July 4, 2021, approximately 47% of net sales in the Engineered Systems segment was derived from fixed price contracts.
Second Quarter Ended July 4, 2021
Six Months Ended July 4, 2021
Customer TypeCustomer Type
(in millions)United States Government (a)Other, Primarily CommercialTotalUnited States Government (a)Other, Primarily CommercialTotal
Net Sales:
Digital Imaging$112.8 $466.7 $579.5 $144.9 $697.9 $842.8 
Instrumentation20.8 270.3 291.1 43.4 534.2 577.6 
Aerospace and Defense Electronics54.9 97.5 152.4 108.6 195.0 303.6 
Engineered Systems88.4 9.6 98.0 187.6 15.1 202.7 
$276.9 $844.1 $1,121.0 $484.5 $1,442.2 $1,926.7 
(a) Includes sales as a prime contractor or subcontractor.
Second Quarter Ended July 4, 2021
Six Months Ended July 4, 2021
Geographic Region (a)Geographic Region (a)
(in millions)United StatesEuropeAll otherTotalUnited StatesEuropeAll otherTotal
Net sales:
Digital Imaging$265.8 $163.1 $150.6 $579.5 $346.0 $235.3 $261.5 $842.8 
Instrumentation218.4 60.5 12.2 291.1 431.8 119.1 26.7 577.6 
Aerospace and Defense Electronics126.9 25.5 — 152.4 252.4 51.2 — 303.6 
Engineered Systems98.0 — — 98.0 202.7 — — 202.7 
$709.1 $249.1 $162.8 $1,121.0 $1,232.9 $405.6 $288.2 $1,926.7 
(a) Net sales by geographic region of origin.

Second Quarter Ended June 28, 2020
Six Months Ended June 28, 2020
Customer TypeCustomer Type
(in millions)United States Government (a)Other, Primarily CommercialTotalUnited States Government (a)Other, Primarily CommercialTotal
Net Sales:
Digital Imaging$30.1 $207.5 $237.6 $59.4 $424.9 $484.3 
Instrumentation21.4 241.7 263.1 35.5 512.7 548.2 
Aerospace and Defense Electronics57.8 85.3 143.1 111.6 187.8 299.4 
Engineered Systems96.5 3.0 99.5 184.8 11.2 196.0 
$205.8 $537.5 $743.3 $391.3 $1,136.6 $1,527.9 
(a) Includes sales as a prime contractor or subcontractor.

Second Quarter Ended June 28, 2020Six Months Ended June 28, 2020
Geographic Region (a)Geographic Region (a)
(in millions)United StatesEuropeAll otherTotalUnited StatesEuropeAll otherTotal
Net sales:
Digital Imaging$78.0 $61.8 $97.8 $237.6 $155.6 $130.6 $198.1 $484.3 
Instrumentation211.3 43.1 8.7 263.1 429.1 98.0 21.1 548.2 
Aerospace and Defense Electronics125.1 17.8 0.2 143.1 257.0 42.0 0.4 299.4 
Engineered Systems99.5 — — 99.5 196.0 — — 196.0 
$513.9 $122.7 $106.7 $743.3 $1,037.7 $270.6 $219.6 $1,527.9 
(a) Net sales by geographic region of origin.