Business Combinations, Goodwill and Acquired Intangible Assets (Tables)

9 Months Ended

Oct. 03, 2021

Business Combination and Asset Acquisition [Abstract]

Estimated Fair Values of the Assets Acquired and Liabilities Assumed

Fair values allocated to the assets acquired and liabilities assumed - FLIR (in millions):
Cash and cash equivalents	$	287.7
Accounts receivables, net	240.2
Unbilled receivables, net	72.2
Inventories, net	556.4
Prepaid expenses and other current assets	106.1
Total current assets	1,262.6
Property, plant and equipment	391.7
Goodwill	5,795.0
Acquired intangible assets	2,400.0
Other long-term assets	131.4
Total assets acquired	$	9,980.7
Accounts payable	144.6
Accrued liabilities	601.5
Total current liabilities assumed	746.1
Long-term debt, net	496.8
Long-term deferred tax liabilities	647.5
Other long-term liabilities	181.7
Total liabilities assumed	2,072.1
Consideration transferred	$	7,908.6
Consideration transferred, net of cash acquired (a)	$	7,620.9

(a)     The consideration transferred included approximately $3.9 billion of Teledyne shares issued to existing shareholders of the acquired company. This $3.9 billion of equity consideration is a non-cash transaction. An immaterial portion of the cash consideration for certain vested FLIR restricted stock awards was deferred at the election of the award holder and will be paid out in future periods.

Acquired Intangible Assets

The following table is a summary at the acquisition date of the acquired intangible assets and weighted average useful life in years for the FLIR acquisition made in 2021 (dollars in millions):

Intangibles subject to amortization:(a)	Intangible Assets		Weighted average useful life in years
Proprietary technology	$	1,412.0	10.0
Customer list/relationships	380.0		12.0
Backlog	8.0		0.8
Total intangibles subject to amortization	1,800.0		10.4
Intangibles not subject to amortization:(a)
Trademarks	600.0
Total acquired intangible assets	$	2,400.0

a)     The amounts recorded as of October 3, 2021 are preliminary since there was insufficient time between the acquisition date and the end of the period to finalize the analysis.

Pro Forma Information

The following table presents proforma net sales, net income and earnings per share data assuming FLIR was acquired at the beginning of the 2020 fiscal year:

	Third Quarter (a)				Nine Months (a)
(unaudited - in millions, except per share amounts)	2021		2020		2021		2020
Net sales	$	1,311.9	$	1,215.5	$	3,859.9	$	3,676.3
Net income	$	164.3	$	99.7	$	356.8	$	218.4
Basic earnings per common share	$	3.53	$	2.15	$	8.50	$	4.73
Diluted earnings per common share	$	3.44	$	2.11	$	8.28	$	4.62
(a) The above unaudited proforma information is presented for the FLIR acquisition as it is considered a material acquisition.

Schedule of Acquired Intangible Assets

Acquired intangible assets are summarized as follows:

	October 3, 2021						January 3, 2021
Acquired intangible assets (in millions):	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Proprietary technology	$	1,826.6	$	315.5	$	1,511.1	$	420.3	$	242.7	$	177.6
Customer list/relationships	547.0		130.9		416.1		168.3		112.8		55.5
Patents	0.6		0.6		—		0.7		0.7		—
Non-compete agreements	0.9		0.9		—		0.9		0.9		—
Trademarks	4.5		3.8		0.7		4.5		3.6		0.9
Backlog	24.3		20.0		4.3		16.5		16.5		—
Total intangibles subject to amortization	2,403.9		471.7		1,932.2		611.2		377.2		234.0
Intangibles not subject to amortization:
Trademarks	773.0		—		773.0		175.7		—		175.7
Total acquired intangible assets	$	3,176.9	$	471.7	$	2,705.2	$	786.9	$	377.2	$	409.7