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Business Segments
 12 Months Ended
Jan. 02, 2022
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company has four reportable segments: Digital Imaging; Instrumentation; Aerospace and Defense Electronics; and Engineered Systems. The Company manages, evaluates and aggregates its operating segments for segment reporting purposes primarily on the basis of product and service type, production process, distribution methods, type of customer, management organization, sales growth potential and long-term profitability. The Digital Imaging segment includes high-performance sensors, cameras and systems, within the visible, infrared and X-ray spectra for use in industrial, government and medical applications, as well as micro electromechanical systems (“MEMS”) and high-performance, high-reliability semiconductors including analog-to-digital and digital-to-analog converters. This segment also includes our sponsored and centralized research laboratories which benefit government programs and commercial businesses. Teledyne acquired FLIR in May 2021, which is reported in the Digital Imaging segment. FLIR offers a diversified portfolio that serves a number of applications in government and defense, industrial, and commercial markets. FLIR technologies include thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and advanced threat-detection solutions. The Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, electronic test and measurement equipment and harsh environment interconnect products. The Aerospace and Defense Electronics segment provides sophisticated electronic components and subsystems and communications products, including defense electronics, harsh environment interconnects, data acquisition and communications equipment for aircraft and components and subsystems for wireless and satellite communications, as well as general aviation batteries. The Engineered Systems segment provides innovative systems engineering and integration, advanced technology application, software development and manufacturing solutions for defense, space, environmental and energy applications. The Engineered Systems segment also designs and manufactures electrochemical energy systems. Teledyne exited the cruise missile turbine engine business in the first quarter of 2021.
Segment results include net sales and operating income by segment but excludes noncontrolling interest, equity income or loss, unusual non-recurring legal matter settlements, interest income and expense, 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 nonoperating expenses 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 the COVID pandemic, beginning in 2020 the Company took actions to reduce headcount across various businesses, reducing our exposure to weak end markets, such as commercial aerospace. We also exited certain facilities no longer needed. In 2021, we took actions to integrate FLIR into our businesses resulting in higher severance and facility closure costs in the Digital Imaging segment. At January 2, 2022, an immaterial amount remains to be paid related to these actions.
The following pre-tax charges were incurred related to severance and facility consolidations (in millions):
202120202019
Digital Imaging$23.9 $2.9 $1.1 
Instrumentation1.3 5.9 1.5 
Aerospace and Defense Electronics0.7 11.1 0.5 
Engineered Systems0.4 0.5 0.1 
Corporate0.1 0.4 — 
Total$26.4 $20.8 $3.2 
Information on the Company’s business segments was as follows (in millions):
Net sales:202120202019
Digital Imaging$2,412.9 $986.0 $992.9 
Instrumentation1,166.9 1,094.5 1,105.1 
Aerospace and Defense Electronics628.7 589.4 690.1 
Engineered Systems405.8 416.3 375.5 
Total net sales$4,614.3 $3,086.2 $3,163.6 
Operating income:202120202019
Digital Imaging$325.6 $192.8 $176.5 
Instrumentation253.7 213.2 200.4 
Aerospace and Defense Electronics133.2 80.8 143.4 
Engineered Systems48.6 50.1 36.5 
Corporate expense(136.8)(56.8)(65.1)
Total operating income $624.3 $480.1 $491.7 
Depreciation and amortization:  202120202019
Digital Imaging  $309.2 $49.2 $48.5 
Instrumentation  38.1 38.3 35.9 
Aerospace and Defense Electronics  13.2 13.7 14.3 
Engineered Systems  7.2 9.2 6.0 
Corporate  4.1 5.8 7.2 
Total depreciation and amortization  $371.8 $116.2 $111.9 
 
Capital expenditures:  202120202019
Digital Imaging  $64.2 $33.4 $45.2 
Instrumentation  13.3 18.0 18.9 
Aerospace and Defense Electronics  8.4 10.4 19.0 
Engineered Systems  12.9 7.5 3.6 
Corporate2.8 2.1 1.7 
Total capital expenditures  $101.6 $71.4 $88.4 

Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash and cash equivalents, deferred taxes, pension assets and other assets.
Identifiable assets:202120202019
Digital Imaging  $11,756.8 $2,000.8 $1,874.6 
Instrumentation  1,640.3 1,676.2 1,680.2 
Aerospace and Defense Electronics  536.3 567.6 618.3 
Engineered Systems  179.2 175.1 143.4 
Corporate  317.7 665.1 263.3 
Total identifiable assets  $14,430.3 $5,084.8 $4,579.8 
Information on the Company’s sales by country of origin and long-lived assets by major geographic area was as follows: 
Sales by country of origin:  202120202019
United States  $2,932.1 $2,078.7 $2,179.6 
Canada  458.1 333.7 301.0 
United Kingdom286.3 237.5 251.7 
Belgium227.3 10.7 10.2 
The Netherlands127.0 105.5 134.2 
All other countries  583.5 320.1 286.9 
Total sales  $4,614.3   $3,086.2   $3,163.6 
 
Long-lived assets:  202120202019
United States  $9,446.3 $1,707.0 $1,839.4 
Canada  763.5 372.9 355.0 
United Kingdom622.4 539.5 492.2 
France463.7 505.1 367.1 
All other countries  679.3 201.7 195.6 
Total long-lived assets  $11,975.2   $3,326.2   $3,249.3
Long-lived assets consist of property, plant and equipment, goodwill, acquired intangible assets, prepaid pension assets and other long-term assets including deferred compensation assets but excluding any deferred tax assets. Until purchase accounting for the FLIR acquisition is finalized, provisional amounts for goodwill and intangible assets are primarily included in the United States. The all other countries category primarily consists of Teledyne’s other operations in Europe.
Product Lines
The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. All other segments each contain one product line.
The tables below provide a summary of the sales by product line for the Instrumentation segment (in millions):
Instrumentation:202120202019
Environmental Instrumentation$446.3 $411.3 $391.4 
Marine Instrumentation424.1 426.3 450.2 
Test and Measurement Instrumentation296.5 256.9 263.5 
Total$1,166.9 $1,094.5 $1,105.1 
Sales to the U.S. Government included sales to the U.S. Department of Defense of $876.6 million in 2021, $578.4 million in 2020, and $545.5 million in 2019. Total sales to international customers were $2,147.9 million in 2021, $1,385.3 million in 2020, and $1,391.6 million in 2019. Of these amounts, sales by operations in the United States to customers in other countries were $723.9 million in 2021, $546.8 million in 2020, and $638.0 million in 2019. There were no sales to individual countries outside of the United States in excess of 10 percent of the Company’s sales. Sales between business segments generally were priced at prevailing market prices and were $20.2 million, $23.4 million and $30.3 million for 2021, 2020 and 2019, respectively.
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 year ended January 2, 2022, approximately 47% of net sales in the Engineered Systems segment was derived from fixed price contracts.

Fiscal Year Ended
January 2, 2022		Fiscal Year Ended
January 3, 2021		Fiscal Year Ended
December 29, 2019
Customer TypeCustomer TypeCustomer Type
(in millions)United States Government (a)Other, Primarily CommercialTotalUnited States Government (a)Other, Primarily CommercialTotalUnited States Government (a)Other, Primarily CommercialTotal
Net Sales:
Digital Imaging$515.9 $1,897.0 $2,412.9 $120.9 $865.1 $986.0 $107.4 $885.5 $992.9 
Instrumentation91.6 1,075.3 1,166.9 80.6 1,013.9 1,094.5 80.4 1,024.7 1,105.1 
Aerospace and Defense Electronics227.2 401.5 628.7 229.9 359.5 589.4 225.3 464.8 690.1 
Engineered Systems358.4 47.4 405.8 386.8 29.5 416.3 338.9 36.6 375.5 
Total$1,193.1 $3,421.2 $4,614.3 $818.2 $2,268.0 $3,086.2 $752.0 $2,411.6 $3,163.6 
a) Includes sales as a prime contractor or subcontractor.
Fiscal Year Ended
January 2, 2022		Fiscal Year Ended
January 3, 2021		Fiscal Year Ended
December 29, 2019
Geographic Region (a)Geographic Region (a)Geographic Region (a)
(in millions)United StatesEuropeAll otherTotalUnited StatesEuropeAll otherTotalUnited StatesEuropeAll otherTotal
Net sales:
Digital Imaging$1,144.9 $642.7 $625.3 $2,412.9 $309.3 $272.9 $403.8 $986.0 $316.1 $299.4 $377.4 $992.9 
Instrumentation857.9 248.2 60.8 1,166.9 844.4 204.4 45.7 1,094.5 899.7 164.8 40.6 1,105.1 
Aerospace and Defense Electronics523.5 105.2 — 628.7 508.7 80.1 0.6 589.4 588.3 100.8 1.0 690.1 
Engineered Systems405.8 — — 405.8 416.3 — — 416.3 375.5 — — 375.5 
Total$2,932.1 $996.1 $686.1 $4,614.3 $2,078.7 $557.4 $450.1 $3,086.2 $2,179.6 $565.0 $419.0 $3,163.6 
a) Net sales by geographic region of origin.