Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 02, 2022

Accounting Policies [Abstract]

Schedule of Accumulated Other Comprehensive Income/(Loss)

The following table summarizes the changes in accumulated balances of other comprehensive income (loss) (“AOCI”) for the fiscal years ended January 2, 2022, and January 3, 2021 (in millions):

	Foreign Currency Translation		Cash Flow Hedges and other		Pension and Postretirement Benefits		Total
Balance as of December 29, 2019	$	(150.4)	$	(2.3)	$	(323.1)	$	(475.8)
Other comprehensive income (loss) before reclassifications	65.8		(13.8)		—		52.0
Amounts reclassified from AOCI	—		18.4		(24.7)		(6.3)
Net other comprehensive income (loss)	65.8		4.6		(24.7)		45.7
Balance as of January 3, 2021	(84.6)		2.3		(347.8)		(430.1)
Other comprehensive income (loss) before reclassifications	(44.4)		18.0		—		(26.4)
Amounts reclassified from AOCI	—		(23.7)		50.2		26.5
Net other comprehensive income (loss)	(44.4)		(5.7)		50.2		0.1
Balance as of January 2, 2022	$	(129.0)	$	(3.4)	$	(297.6)	$	(430.0)

The reclassification out of AOCI for the fiscal years ended January 2, 2022, and January 3, 2021, are as follows (in millions):

	January 2, 2022		January 3, 2021
	Amount reclassified from AOCI		Amount reclassified from AOCI		Financial Statement Presentation
Gain (loss) on cash flow hedges:
Gain (loss) recognized in income on derivatives	$	(31.7)	$	24.8	See Note 2
Income tax impact	8.0		(6.4)		Provision for income taxes
Total	$	(23.7)	$	18.4
Amortization of defined benefit pension and postretirement plan items:
Amortization of prior service cost	$	(3.5)	$	(6.0)	See Note 11
Amortization of net actuarial loss	26.8		22.8		See Note 11
Pension adjustments	36.6		(49.7)		See Note 11
Total before tax	59.9		(32.9)
Income tax impact	(9.7)		8.2
Net of tax	$	50.2	$	(24.7)

Schedule of Changes in Product Warranty Reserve

Warranty Reserve (in millions):	2021		2020		2019
Balance at beginning of year	$	22.4	$	24.8	$	21.0
Product warranty expense	11.9		3.3		13.1
Deductions	(10.1)		(8.2)		(14.2)
Acquisitions	25.3		2.5		4.9
Balance at end of year	$	49.5	$	22.4	$	24.8

Schedule of Computations of Basic and Diluted Earnings per Share

The following table sets forth the computations of basic and diluted earnings per common share (amounts in millions, except per share data):

Earnings Per Common Share:	2021		2020		2019
Net income	$	445.3	$	401.9	$	402.3
Basic earnings per common share:
Weighted average common shares outstanding	43.2		36.7		36.3
Basic earnings per common share	$	10.31	$	10.95	$	11.08
Diluted earnings per share:
Weighted average common shares outstanding	43.2		36.7		36.3
Effect of diluted securities (primarily stock options)	1.1		1.2		1.2
Weighted average diluted common shares outstanding	44.3		37.9		37.5
Diluted earnings per common share	$	10.05	$	10.62	$	10.73

Schedule of Outstanding Foreign Currency Contracts

As of January 2, 2022, Teledyne had foreign currency contracts of this type primarily in the following pairs (in millions):

Contracts to Buy			Contracts to Sell
Currency	Amount		Currency	Amount
Canadian Dollars	C$	169.4	U.S. Dollars	US$	132.0
Euros	€	147.3	U.S. Dollars	US$	167.1
Euros	€	33.5	Canadian Dollars	C$	48.4
Great Britain Pounds	£	59.2	U.S. Dollars	US$	78.9
U.S. Dollars	US$	31.0	Swedish Krona	kr	280.1
Danish Krone	Kr.	395.3	U.S. Dollars	US$	60.2
Swedish Krona	kr	355.7	Euros	€	35.0
Norwegian Krone	kr	228.0	Swedish Krona	kr	227.1
Norwegian Krone	kr	78.9	U.S. Dollars	US$	8.6

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of derivative instruments designated as cash flow hedges for 2021 and 2020 was as follows (in millions):

	2021		2020
Net gain (loss) recognized in AOCI - foreign exchange contracts (a)	$	23.6	$	(13.7)
Net gain recognized in AOCI - interest rate contracts	$	0.4	$	4.8
Net gain reclassified from AOCI into revenue/cost of sales - foreign exchange contracts	$	9.2	$	1.5
Net gain reclassified from AOCI into interest expense - foreign exchange contracts	$	3.4	$	4.4
Net loss reclassified from AOCI into interest expense -interest rate contracts	$	(1.6)	$	(1.0)
Net gain (loss) reclassified from AOCI into other income and expense, net - foreign exchange contracts (b)	$	20.7	$	(26.7)

(a)Effective portion

(b)Amount reclassified to offset earnings impact of liability hedged by cross currency swap

The effect of derivative instruments designated as fair value hedges for 2021 and 2020 was as follows (in millions):

	2021		2020
Net gain recognized in earnings for effective portion - other income and expense, net - foreign exchange contracts	$	7.9	$	—
Net gain recognized in earnings for amounts excluded from effectiveness testing - other income and expense, net - foreign exchange contracts	$	0.2	$	—

Schedule of Fair Values of Derivative Financial Instruments

The fair values of the Company’s derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy (in millions):

Asset/(Liability) Derivatives	Balance sheet location	January 2, 2022		January 3, 2021
Derivatives designated as hedging instruments:
Cash flow forward contracts	Other assets	$	0.3	$	7.3
Interest rate contracts	Other non-current liabilities	(0.1)		(1.8)
Interest rate contracts	Other current liabilities	(1.2)		(1.5)
Cash flow forward contracts	Accrued liabilities	(1.2)		—
Cash flow cross currency swaps	Other current assets	3.8		3.3
Cash flow cross currency swaps	Other non-current liabilities	(9.4)		(29.2)
Cash flow cross currency swaps	Other current assets (accrued interest)	0.1		0.1
Total derivatives designated as hedging instruments		(7.7)		(21.8)
Derivatives not designated as hedging instruments:
Non-designated forward contracts	Other current assets	4.7		6.7
Non-designated forward contracts	Accrued liabilities	(2.1)		(1.2)
Total derivatives not designated as hedging instruments		2.6		5.5
Total liability derivatives		$	(5.1)	$	(16.3)