QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
PAGE | ||||||||
First Quarter | |||||||||||
2022 | 2021 | ||||||||||
Net sales | $ | $ | |||||||||
Costs and expenses | |||||||||||
Cost of sales | |||||||||||
Selling, general and administrative expenses | |||||||||||
Acquired intangible asset amortization | |||||||||||
Total costs and expenses | |||||||||||
Operating income | |||||||||||
Interest and debt expense, net | ( | ( | |||||||||
Non-service retirement benefit income | |||||||||||
Other expense, net | ( | ( | |||||||||
Income before income taxes | |||||||||||
(Benefit) provision for income taxes | ( | ||||||||||
Net income | $ | $ | |||||||||
Basic earnings per common share | $ | $ | |||||||||
Weighted average common shares outstanding | |||||||||||
Diluted earnings per common share | $ | $ | |||||||||
Weighted average diluted common shares outstanding |
First Quarter | |||||||||||
2022 | 2021 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss): | |||||||||||
Foreign exchange translation adjustment | ( | ||||||||||
Hedge activity, net of tax | ( | ||||||||||
Pension and postretirement benefit adjustments, net of tax | |||||||||||
Other comprehensive income (loss) | ( | ||||||||||
Comprehensive income | $ | $ |
April 3, 2022 | January 2, 2022 | ||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Unbilled receivables, net | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net of accumulated depreciation and amortization of $ at January 2, 2022 | |||||||||||
Goodwill | |||||||||||
Acquired intangibles, net | |||||||||||
Prepaid pension assets | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets, net | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued liabilities | |||||||||||
Current portion of long-term debt | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current portion | |||||||||||
Long-term operating lease liabilities | |||||||||||
Long-term deferred tax liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total Liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ Equity | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock, | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Stockholders’ Equity | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | $ |
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||
Balance, January 2, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Treasury stock issued | — | ( | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, April 3, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||
Balance, January 3, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | |||||||||||||||||||||||||||||||
Treasury stock issued | — | ( | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, April 4, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||
Three Months | |||||||||||
2022 | 2021 | ||||||||||
Operating Activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Bridge financing and debt extinguishment expense | |||||||||||
Changes in operating assets and liabilities excluding the effect of business acquired: | |||||||||||
Accounts receivable and unbilled receivables | ( | ( | |||||||||
Inventories | ( | ||||||||||
Accounts payable | |||||||||||
Deferred and income taxes receivable/payable, net | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Other operating, net | |||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Investing Activities | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Other investing, net | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Net proceeds from fixed rate notes | |||||||||||
Net proceeds from (payments on) credit facility | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Payments for bridge financing and debt extinguishment | ( | ||||||||||
Other financing, net | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents—beginning of period | |||||||||||
Cash and cash equivalents—end of period | $ | $ | |||||||||
Fair values allocated to the assets acquired and liabilities assumed - FLIR (in millions): | ||||||||
Cash and cash equivalents | $ | |||||||
Accounts receivables, net | ||||||||
Unbilled receivables, net | ||||||||
Inventories, net | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Property, plant and equipment | ||||||||
Goodwill | ||||||||
Acquired intangible assets | ||||||||
Other long-term assets | ||||||||
Total assets acquired | $ | |||||||
Accounts payable | ||||||||
Accrued liabilities | ||||||||
Total current liabilities assumed | ||||||||
Long-term debt, net | ||||||||
Long-term deferred tax liabilities | ||||||||
Other long-term liabilities | ||||||||
Total liabilities assumed | ||||||||
Consideration transferred | $ | |||||||
Consideration transferred, net of cash acquired (a) | $ |
Intangibles subject to amortization:(a) | Intangible Assets | Weighted average useful life in years | ||||||||||||
Proprietary technology | $ | |||||||||||||
Customer list/relationships | ||||||||||||||
Total intangibles subject to amortization | ||||||||||||||
Intangibles not subject to amortization:(a) | ||||||||||||||
Trademarks | ||||||||||||||
Total acquired intangible assets | $ |
First Quarter (a) | |||||
(unaudited - in millions, except per share amounts) | 2021 | ||||
Net sales | $ | ||||
Net income | $ | ||||
Basic earnings per common share | $ | ||||
Diluted earnings per common share | $ | ||||
(a) The above unaudited proforma information is presented for the FLIR acquisition as it is considered a material acquisition. |
April 3, 2022 | January 2, 2022 | |||||||||||||||||||||||||||||||||||||
Acquired intangible assets (in millions): | Gross carrying amount | Accumulated amortization | Net carrying amount | Gross carrying amount | Accumulated amortization | Net carrying amount | ||||||||||||||||||||||||||||||||
Proprietary technology | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Customer list/relationships | ||||||||||||||||||||||||||||||||||||||
Patents | ||||||||||||||||||||||||||||||||||||||
Non-compete agreements | ||||||||||||||||||||||||||||||||||||||
Trademarks | ||||||||||||||||||||||||||||||||||||||
Backlog | ||||||||||||||||||||||||||||||||||||||
Total intangibles subject to amortization | ||||||||||||||||||||||||||||||||||||||
Intangibles not subject to amortization: | ||||||||||||||||||||||||||||||||||||||
Trademarks | — | — | ||||||||||||||||||||||||||||||||||||
Total acquired intangible assets | $ | $ | $ | $ | $ | $ |
Foreign Currency Translation | Cash Flow Hedges and Other | Pension and Postretirement Benefits | Total | ||||||||||||||||||||
Balance as of January 2, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | |||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||
Net other comprehensive income (loss) | ( | ( | |||||||||||||||||||||
Balance as of April 3, 2022 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Foreign Currency Translation | Cash Flow Hedges and Other | Pension and Postretirement Benefits | Total | ||||||||||||||||||||
Balance as of January 3, 2021 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income before reclassifications | |||||||||||||||||||||||
Amounts reclassified from AOCI | ( | ( | |||||||||||||||||||||
Net other comprehensive income (loss) | ( | ||||||||||||||||||||||
Balance as of April 4, 2021 | $ | ( | $ | $ | ( | $ | ( |
Amount Reclassified from AOCI for the Three Months Ended | Amount Reclassified from AOCI for the Three Months Ended | Statement of Income | ||||||||||||
April 3, 2022 | April 4, 2021 | Presentation | ||||||||||||
(Gain) loss on cash flow hedges: | ||||||||||||||
Gain recognized in income on derivatives | $ | ( | $ | ( | See Note 4 | |||||||||
Income tax impact | (Benefit) provision for income taxes | |||||||||||||
Total | $ | ( | $ | ( | ||||||||||
Amortization of defined benefit pension and postretirement plan items: | ||||||||||||||
Amortization of prior service cost | $ | $ | ( | Costs and expenses | ||||||||||
Amortization of net actuarial loss | Costs and expenses | |||||||||||||
Total before tax | ||||||||||||||
Income tax impact | ( | ( | (Benefit) provision for income taxes | |||||||||||
Total | $ | $ |
First Quarter | |||||||||||
2022 | 2021 | ||||||||||
Net gain recognized in AOCI - Foreign Exchange Contracts (a) | $ | $ | |||||||||
Net gain (loss) reclassified from AOCI into revenue - Foreign Exchange Contracts (a) | $ | ( | $ | ||||||||
Net gain recognized in AOCI - Interest Rate Contracts | $ | $ | |||||||||
Net gain (loss) reclassified from AOCI into other income and expense, net - Foreign Exchange Contracts (b) | $ | $ | |||||||||
Net gain reclassified from AOCI into interest expense - Foreign Exchange Contracts | $ | $ | |||||||||
Net gain (loss) loss reclassified from AOCI into interest expense - Interest Rate Contracts | $ | ( | $ | ( | |||||||
Contracts to Buy | Contracts to Sell | |||||||||||||
Currency | Amount | Currency | Amount | |||||||||||
Canadian Dollars | $ | U.S. Dollars | US$ | |||||||||||
Great Britain Pounds | £ | U.S. Dollars | US$ | |||||||||||
Euros | € | U.S. Dollars | US$ | |||||||||||
Danish Krone | DKR | U.S. Dollars | US$ | |||||||||||
Swedish Krona | SEK | Euros | € | |||||||||||
Norwegian Krone | kr | Swedish Krona | SEK | |||||||||||
Asset/(Liability) Derivatives | Balance sheet location | April 3, 2022 | January 2, 2022 | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Cash flow forward contracts | Other current assets | $ | $ | ||||||||||||||
Cash flow forward contracts | Accrued liabilities | ( | ( | ||||||||||||||
Cash flow cross currency swap | Other current assets | ||||||||||||||||
Cash flow cross currency swap | Other non-current assets | ||||||||||||||||
Cash flow cross currency swap | Other non-current liabilities | ( | |||||||||||||||
Cash flow cross currency swap | Other current assets (accrued interest) | ||||||||||||||||
Interest rate contracts | Other long-term liabilities | ( | |||||||||||||||
Interest rate contracts | Other current liabilities | ( | |||||||||||||||
Interest rate contracts | Other current assets | ||||||||||||||||
Total derivatives designated as hedging instruments | ( | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Non-designated forward contracts | Other current assets | ||||||||||||||||
Non-designated forward contracts | Accrued liabilities | ( | ( | ||||||||||||||
Total derivatives not designated as hedging instruments | |||||||||||||||||
Total derivatives, net | $ | $ | ( |
First Quarter | |||||||||||
2022 | 2021 | ||||||||||
Weighted average basic common shares outstanding | |||||||||||
Effect of dilutive securities (primarily stock options) | |||||||||||
Weighted average diluted common shares outstanding |
2022 | |||||||||||
First Quarter | |||||||||||
Shares | Weighted Average Exercise Price | ||||||||||
Beginning balance | $ | ||||||||||
Exercised | ( | $ | |||||||||
Canceled | ( | $ | |||||||||
Ending balance | $ | ||||||||||
Exercisable at end of period | $ |
Shares | Weighted average fair value per share | ||||||||||
Balance, January 2, 2022 (a) | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited/Canceled | ( | $ | |||||||||
Balance, April 3, 2022 | $ |
Balance at | |||||||||||
Inventories (in millions): | April 3, 2022 | January 2, 2022 | |||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total inventories, net | $ | $ |
Three Months | |||||||||||
Warranty Reserve (in millions): | 2022 | 2021 | |||||||||
Balance at beginning of year | $ | $ | |||||||||
Product warranty expense | |||||||||||
Deductions | ( | ( | |||||||||
Balance at end of period | $ | $ |
Balance at | |||||||||||
Long-Term Debt (in millions): | April 3, 2022 | January 2, 2022 | |||||||||
$ | $ | $ | |||||||||
Term loan due October 2024, variable rate of | |||||||||||
Term loan due May 2026, variable rate of | |||||||||||
Other debt | |||||||||||
Debt discount and debt issuance costs | ( | ( | |||||||||
Total debt, net | |||||||||||
Less: current portion of long-term debt | ( | ||||||||||
Total long-term debt, net of current portion | $ | $ |
First Quarter | |||||||||||
2022 | 2021 | ||||||||||
Service cost — benefits earned during the period (in millions) | $ | $ | |||||||||
Pension non-service income (in millions): | |||||||||||
Interest cost on benefit obligation | $ | $ | |||||||||
Expected return on plan assets | ( | ( | |||||||||
Amortization of net prior service cost | ( | ( | |||||||||
Amortization of net actuarial loss | |||||||||||
Pension non-service income | $ | ( | $ | ( | |||||||
First Quarter | % | ||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Net sales(a): | |||||||||||||||||
Digital Imaging (b) | $ | $ | % | ||||||||||||||
Instrumentation | % | ||||||||||||||||
Aerospace and Defense Electronics | % | ||||||||||||||||
Engineered Systems | ( | % | |||||||||||||||
Total net sales | $ | $ | % | ||||||||||||||
Operating income: | |||||||||||||||||
Digital Imaging (b) | $ | $ | % | ||||||||||||||
Instrumentation | % | ||||||||||||||||
Aerospace and Defense Electronics | % | ||||||||||||||||
Engineered Systems | ( | % | |||||||||||||||
Corporate expense (c) | ( | ( | ( | % | |||||||||||||
Operating income | $ | $ | % | ||||||||||||||
(a) Net sales excludes inter-segment sales of $ | |||||||||||||||||
(b) On May 14, 2021, the Company completed the acquisition of FLIR, and the financial results of FLIR have been included since the date of the acquisition. The first quarter of 2022 includes $ | |||||||||||||||||
(c) Corporate expense for the first quarter of 2021 includes $ |
Identifiable assets: | April 3, 2022 | January 2, 2022 | ||||||||||||
Digital Imaging | $ | $ | ||||||||||||
Instrumentation | ||||||||||||||
Aerospace and Defense Electronics | ||||||||||||||
Engineered Systems | ||||||||||||||
Corporate | ||||||||||||||
Total identifiable assets | $ | $ |
First Quarter | |||||||||||
Instrumentation | 2022 | 2021 | |||||||||
Marine Instrumentation | $ | $ | |||||||||
Environmental Instrumentation | |||||||||||
Test and Measurement Instrumentation | |||||||||||
Total | $ | $ | |||||||||
First Quarter Ended April 3, 2022 | First Quarter Ended April 4, 2021 | |||||||||||||||||||||||||||||||||||||
Customer Type | Customer Type | |||||||||||||||||||||||||||||||||||||
(in millions) | United States Government (a) | Other, Primarily Commercial | Total | United States Government (a) | Other, Primarily Commercial | Total | ||||||||||||||||||||||||||||||||
Net Sales: | ||||||||||||||||||||||||||||||||||||||
Digital Imaging | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Instrumentation | ||||||||||||||||||||||||||||||||||||||
Aerospace and Defense Electronics | ||||||||||||||||||||||||||||||||||||||
Engineered Systems | ||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
(a) Includes sales as a prime contractor or subcontractor. |
First Quarter Ended April 3, 2022 | First Quarter Ended April 4, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Region (a) | Geographic Region (a) | |||||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | United States | Europe | All other | Total | United States | Europe | All other | Total | ||||||||||||||||||||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Digital Imaging | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Instrumentation | ||||||||||||||||||||||||||||||||||||||||||||||||||
Aerospace and Defense Electronics | ||||||||||||||||||||||||||||||||||||||||||||||||||
Engineered Systems | ||||||||||||||||||||||||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
(a) Net sales by geographic region of origin. |
First Quarter | |||||||||||
(in millions) | 2022 | 2021 | |||||||||
Net sales | $ | 1,321.0 | $ | 805.7 | |||||||
Costs and expenses | |||||||||||
Cost of sales | 752.6 | 492.5 | |||||||||
Selling, general and administrative expenses | 291.3 | 168.2 | |||||||||
Acquired intangible asset amortization | 53.6 | 9.8 | |||||||||
Total costs and expenses | 1,097.5 | 670.5 | |||||||||
Operating income | 223.5 | 135.2 | |||||||||
Interest and debt expense, net | (22.3) | (35.7) | |||||||||
Non-service retirement benefit income | 2.8 | 2.8 | |||||||||
Other expense, net | (1.0) | (1.0) | |||||||||
Income before income taxes | 203.0 | 101.3 | |||||||||
Provision (benefit) for income taxes | (9.6) | 16.6 | |||||||||
Net income | $ | 212.6 | $ | 84.7 | |||||||
First Quarter | % | ||||||||||||||||
(dollars in millions) | 2022 | 2021 | Change | ||||||||||||||
Net sales (a): | |||||||||||||||||
Digital Imaging (b) | $ | 750.5 | $ | 263.3 | 185.0 | % | |||||||||||
Instrumentation | 308.9 | 286.5 | 7.8 | % | |||||||||||||
Aerospace and Defense Electronics | 166.2 | 151.2 | 9.9 | % | |||||||||||||
Engineered Systems | 95.4 | 104.7 | (8.9) | % | |||||||||||||
Total net sales | $ | 1,321.0 | $ | 805.7 | 64.0 | % | |||||||||||
Operating income: | |||||||||||||||||
Digital Imaging (b) | $ | 115.7 | $ | 52.0 | 122.5 | % | |||||||||||
Instrumentation | 71.6 | 59.4 | 20.5 | % | |||||||||||||
Aerospace and Defense Electronics | 42.9 | 28.3 | 51.6 | % | |||||||||||||
Engineered Systems | 9.4 | 14.9 | (36.9) | % | |||||||||||||
Corporate expense (c) | (16.1) | (19.4) | (17.0) | % | |||||||||||||
Total operating income | $ | 223.5 | $ | 135.2 | 65.3 | % | |||||||||||
(a) Net sales excludes inter-segment sales of $5.5 million and $4.2 million for the first quarter of 2022 and 2021, respectively. | |||||||||||||||||
(b) On May 14, 2021, the Company completed the acquisition of FLIR, and the financial results of FLIR have been included since the date of the acquisition. The first quarter of 2022 includes $452.6 million in incremental net sales from FLIR. | |||||||||||||||||
(c) Corporate expense for the first quarter of 2021 includes $5.9 million in acquisition-related transaction and purchase accounting expenses related to the FLIR acquisition. |
First Quarter | ||||||||||||||
(dollars in millions) | 2022 | 2021 | ||||||||||||
Digital Imaging | ||||||||||||||
Net sales | $ | 750.5 | $ | 263.3 | ||||||||||
Cost of sales | $ | 405.2 | $ | 153.8 | ||||||||||
Cost of sales as a % of net sales | 54.0 | % | 58.4 | % | ||||||||||
Instrumentation | ||||||||||||||
Net sales | $ | 308.9 | $ | 286.5 | ||||||||||
Cost of sales | $ | 163.9 | $ | 155.9 | ||||||||||
Cost of sales as a % of net sales | 53.0 | % | 54.4 | % | ||||||||||
Aerospace and Defense Electronics | ||||||||||||||
Net sales | $ | 166.2 | $ | 151.2 | ||||||||||
Cost of sales | $ | 103.0 | $ | 99.6 | ||||||||||
Cost of sales as a % of net sales | 62.0 | % | 65.9 | % | ||||||||||
Engineered Systems | ||||||||||||||
Net sales | $ | 95.4 | $ | 104.7 | ||||||||||
Costs of sales | $ | 80.5 | $ | 83.2 | ||||||||||
Cost of sales as a % of net sales | 84.4 | % | 79.5 | % | ||||||||||
Total Company | ||||||||||||||
Net sales | $ | 1,321.0 | $ | 805.7 | ||||||||||
Costs of sales | $ | 752.6 | $ | 492.5 | ||||||||||
Cost of sales as a % of net sales | 57.0 | % | 61.1 | % |
First Quarter | |||||||||||
(dollars in millions) | 2022 | 2021 | |||||||||
Net sales | $ | 750.5 | $ | 263.3 | |||||||
Cost of sales | $ | 405.2 | $ | 153.8 | |||||||
Selling, general and administrative expenses | $ | 181.1 | $ | 52.9 | |||||||
Acquired intangible asset amortization | $ | 48.5 | $ | 4.6 | |||||||
Operating income | $ | 115.7 | $ | 52.0 | |||||||
Cost of sales as a % of net sales | 54.0 | % | 58.4 | % | |||||||
Selling, general and administrative expenses as a % of net sales | 24.1 | % | 20.2 | % | |||||||
Acquired intangible asset amortization as a % of net sales | 6.5 | % | 1.7 | % | |||||||
Operating income as a % of net sales | 15.4 | % | 19.7 | % |
First Quarter | |||||||||||
(dollars in millions) | 2022 | 2021 | |||||||||
Net sales | $ | 308.9 | $ | 286.5 | |||||||
Cost of sales | $ | 163.9 | $ | 155.9 | |||||||
Selling, general and administrative expenses | $ | 68.5 | $ | 66.2 | |||||||
Acquired intangible asset amortization | $ | 4.9 | $ | 5.0 | |||||||
Operating income | $ | 71.6 | $ | 59.4 | |||||||
Cost of sales as a % of net sales | 53.0 | % | 54.4 | % | |||||||
Selling, general and administrative expenses as a % of net sales | 22.2 | % | 23.1 | % | |||||||
Acquired intangible asset amortization as a % of net sales | 1.6 | % | 1.8 | % | |||||||
Operating income as a % of net sales | 23.2 | % | 20.7 | % |
First Quarter | |||||||||||
(dollars in millions) | 2022 | 2021 | |||||||||
Net sales | $ | 166.2 | $ | 151.2 | |||||||
Cost of sales | $ | 103.0 | $ | 99.6 | |||||||
Selling, general and administrative expenses | $ | 20.1 | $ | 23.1 | |||||||
Acquired intangible asset amortization | $ | 0.2 | $ | 0.2 | |||||||
Operating income | $ | 42.9 | $ | 28.3 | |||||||
Cost of sales as a % of net sales | 62.0 | % | 65.9 | % | |||||||
Selling, general and administrative expenses as a % of net sales | 12.1 | % | 15.3 | % | |||||||
Acquired intangible asset amortization as a % of net sales | 0.1 | % | 0.1 | % | |||||||
Operating income as a % of net sales | 25.8 | % | 18.7 | % |
First Quarter | |||||||||||
(dollars in millions) | 2022 | 2021 | |||||||||
Net sales | $ | 95.4 | $ | 104.7 | |||||||
Cost of sales | $ | 80.5 | $ | 83.2 | |||||||
Selling, general and administrative expenses | $ | 5.5 | $ | 6.6 | |||||||
Operating income | $ | 9.4 | $ | 14.9 | |||||||
Cost of sales as a % of net sales | 84.4 | % | 79.5 | % | |||||||
Selling, general and administrative expenses as a % of net sales | 5.7 | % | 6.3 | % | |||||||
Operating income as a % of net sales | 9.9 | % | 14.2 | % |
Financial Covenants | Requirement | Actual Measure | |||||||||
Consolidated Leverage Ratio (Net Debt/EBITDA) (a) | No more than 4.75 to 1 | 2.8 to 1 | |||||||||
Consolidated Interest Coverage Ratio (EBITDA/Interest) (b) | No less than 3.0 to 1 | 15.7 to 1 | |||||||||
Item 1A. | Risk Factors |
Item 6. | Exhibits |
(a) | Exhibits | |||||||
Exhibit 10.1 | Amended and Restated Change in Control Severance Agreement, dated as of January 31, 2011, by and between Teledyne Technologies Incorporated and Edwin Roks (incorporated by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K for the fiscal year end December 30, 2018 (File No. I-15295)† | |||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
Exhibit 101 (INS) | XBRL Instance Document | |||||||
Exhibit 101 (SCH) | XBRL Schema Document | |||||||
Exhibit 101 (CAL) | XBRL Calculation Linkbase Document | |||||||
Exhibit 101 (LAB) | XBRL Label Linkbase Document XBRL Schema Document | |||||||
Exhibit 101 (PRE) | XBRL Presentation Linkbase Document XBRL Schema Document | |||||||
Exhibit 101 (DEF) | XBRL Definition Linkbase Document XBRL Schema Document | |||||||
Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||
† | Denotes management contract or compensatory arrangement |
TELEDYNE TECHNOLOGIES INCORPORATED | |||||||||||
DATE: May 2, 2022 | By: | /s/ Susan L. Main | |||||||||
Susan L. Main, Senior Vice President and | |||||||||||
Chief Financial Officer | |||||||||||
(Principal Financial Officer and Authorized Officer) | |||||||||||
Exhibit Number | Description | ||||
Exhibit 10.1 | Amended and Restated Change in Control Severance Agreement, dated as of January 31, 2011, by and between Teledyne Technologies Incorporated and Edwin Roks (incorporated by reference to Exhibit 10.40 to the Company's Annual Report on Form 10-K for the fiscal year end December 30, 2018 (File No. I-15295)† | ||||
Exhibit 31.1 | |||||
Exhibit 31.2 | |||||
Exhibit 32.1 | |||||
Exhibit 32.2 | |||||
Exhibit 101 (INS) | XBRL Instance Document | ||||
Exhibit 101 (SCH) | XBRL Schema Document | ||||
Exhibit 101 (CAL) | XBRL Calculation Linkbase Document | ||||
Exhibit 101 (DEF) | XBRL Definition Linkbase Document XBRL Schema Document | ||||
Exhibit 101 (LAB) | XBRL Label Linkbase Document XBRL Schema Document | ||||
Exhibit 101 (PRE) | XBRL Presentation Linkbase Document XBRL Schema Document | ||||
Exhibit 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||
† | Denotes management contract or compensatory arrangement |
By: | /s/ Robert Mehrabian | ||||
Robert Mehrabian | |||||
Chairman, President and Chief Executive Officer |
By: | /s/ Susan L. Main | ||||
Susan L. Main | |||||
Senior Vice President and Chief Financial Officer |
By: | /s/ Robert Mehrabian | ||||
Robert Mehrabian | |||||
Chairman, President and Chief Executive Officer | |||||
May 2, 2022 |
By: | /s/ Susan L. Main | ||||
Susan L. Main | |||||
Senior Vice President and Chief Financial Officer | |||||
May 2, 2022 |
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Income Statement [Abstract] | ||
Net sales | $ 1,321.0 | $ 805.7 |
Costs and expenses | ||
Cost of sales | 752.6 | 492.5 |
Selling, general and administrative expenses | 291.3 | 168.2 |
Acquired intangible asset amortization | 53.6 | 9.8 |
Total costs and expenses | 1,097.5 | 670.5 |
Operating income | 223.5 | 135.2 |
Interest and debt expense, net | (22.3) | (35.7) |
Non-service retirement benefit income | 2.8 | 2.8 |
Other expense, net | (1.0) | (1.0) |
Income before income taxes | 203.0 | 101.3 |
(Benefit) provision for income taxes | (9.6) | 16.6 |
Net income | $ 212.6 | $ 84.7 |
Basic earnings per common share (in USD per share) | $ 4.55 | $ 2.29 |
Weighted average common shares outstanding (in shares) | 46.7 | 37.0 |
Diluted earnings per common share (in USD per share) | $ 4.46 | $ 2.23 |
Weighted average diluted common shares outstanding (in shares) | 47.7 | 38.0 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 212.6 | $ 84.7 |
Other comprehensive income (loss): | ||
Foreign exchange translation adjustment | (32.6) | 1.0 |
Hedge activity, net of tax | 6.5 | (0.1) |
Pension and postretirement benefit adjustments, net of tax | 4.2 | 4.3 |
Other comprehensive income (loss) | (21.9) | 5.2 |
Comprehensive income | $ 190.7 | $ 89.9 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Apr. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 803.4 | $ 743.3 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 47,194,766 | 47,194,766 |
Common stock, shares outstanding (in shares) | 46,827,834 | 46,692,296 |
Treasury stock (in shares) | 366,932 | 502,470 |
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions |
Total |
Common Stock |
Additional Paid-in Capital |
Treasury Stock |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
---|---|---|---|---|---|---|
Beginning balance at Jan. 03, 2021 | $ 3,228.6 | $ 0.4 | $ 389.9 | $ (59.5) | $ 3,327.9 | $ (430.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 84.7 | 84.7 | ||||
Other comprehensive income (loss), net of tax | 5.2 | 5.2 | ||||
Treasury stock issued | 0.0 | (9.3) | 9.3 | |||
Stock-based compensation | 7.0 | 7.0 | ||||
Exercise of stock options | 10.8 | 10.8 | ||||
Ending balance at Apr. 04, 2021 | 3,336.3 | 0.4 | 398.4 | (50.2) | 3,412.6 | (424.9) |
Beginning balance at Jan. 02, 2022 | 7,622.0 | 0.5 | 4,317.1 | (38.8) | 3,773.2 | (430.0) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 212.6 | 212.6 | ||||
Other comprehensive income (loss), net of tax | (21.9) | (21.9) | ||||
Treasury stock issued | 0.0 | (11.6) | 11.6 | |||
Stock-based compensation | 7.0 | 7.0 | ||||
Exercise of stock options | 12.7 | 12.7 | ||||
Ending balance at Apr. 03, 2022 | $ 7,832.4 | $ 0.5 | $ 4,325.2 | $ (27.2) | $ 3,985.8 | $ (451.9) |
General |
3 Months Ended |
---|---|
Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Teledyne Technologies Incorporated (“Teledyne” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in notes to consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, but resultant disclosures are in accordance with generally accepted accounting principles in the United States (“GAAP”) as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes in Teledyne’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022 (“2021 Form 10-K”). In the opinion of Teledyne’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of April 3, 2022 and the consolidated results of operations, consolidated comprehensive income and consolidated cash flows for the first quarter ended April 3, 2022. The results of operations and cash flows for the period ended April 3, 2022 are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current period presentation. The Company now discloses acquired intangible asset amortization on a separate income statement line. Acquired intangible asset amortization was previously included in selling, general and administrative expenses. Teledyne had an immaterial amount of cash equivalents at April 3, 2022 and January 2, 2022.
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Business Combinations, Goodwill and Acquired Intangible Assets |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations, Goodwill and Acquired Intangible Assets | Business Combinations, Goodwill and Acquired Intangible Assets Acquisition of FLIR Systems, Inc. On May 14, 2021, Teledyne acquired the outstanding stock of FLIR Systems, Inc. ( “FLIR”) for approximately $8.1 billion, comprising of net cash payments of $3.7 billion, net Teledyne share issuances of $3.9 billion, and the assumption of FLIR debt of $0.5 billion. FLIR stockholders received $28.00 per share in cash and 0.0718 shares of Teledyne common stock for each FLIR share, and Teledyne issued approximately 9.5 million shares at $409.41 per share. See Note 3 to the Notes to Consolidated Financial Statements in Teledyne’s 2021 Form 10-K for additional information regarding the FLIR acquisition. Founded in 1978, FLIR is an industrial technology company focused on intelligent sensing solutions for defense and industrial applications. FLIR offers a diversified portfolio that serves a number of applications in government and defense, industrial, and commercial markets. FLIR develops technologies that enhance perception and awareness. FLIR designs, develops, markets, and distributes solutions that detect people, objects and substances that may not be perceived by human senses and improve the way people interact with the world around them. FLIR technologies include thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and advanced threat-detection solutions. FLIR is part of the Digital Imaging segment. The significant factors that resulted in recognition of goodwill were: (a) the purchase price was based on cash flow and return on capital projections assuming integration with our businesses and (b) the calculation of the fair value of tangible and intangible assets acquired that qualified for recognition. Goodwill resulting from the FLIR acquisition will not be deductible for tax purposes. The following table presents the preliminary purchase price allocation for FLIR. We are accounting for the FLIR acquisition under the acquisition method and are required to measure identifiable assets acquired and liabilities assumed of the acquiree at the fair values on the closing date. The Company made an initial allocation of the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. As of April 3, 2022, the measurement period (not to exceed one year) is open; therefore, the assets acquired and liabilities assumed related to the FLIR acquisition are subject to adjustment until the end of the respective measurement period. The Company is in the process of specifically identifying the amounts assigned to certain assets, including acquired intangible assets, and liabilities and the related impact on taxes and goodwill for the FLIR acquisition. The Company is in the process of reviewing a third-party valuation of certain intangible assets and tangible assets of FLIR. The fair values of acquired intangibles are determined based on estimates and assumptions that are deemed reasonable by the Company. The amounts recorded as of April 3, 2022 are preliminary since there was insufficient time between the acquisition date and the end of the period to gather the remaining information to finalize the analysis.
(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. During fiscal year 2018, the Swedish Tax Authority (“STA”) issued a reassessment of tax for the year ending December 31, 2012 to one of FLIR’s non-operating subsidiaries in Sweden. The total taxes, penalties and interest levied by the STA totaled SEK 3.1 billion ($364.7 million based on exchange rates as of the acquisition date). The reassessment concerned the use of tax credits applied against capital gains pursuant to European Union Council Directive 2009/133/EC, commonly referred to as the EU Merger Directive, and the reassessment levied significant taxes and penalties. In March 2020, FLIR received an adverse judgment from the First Instance Court of Sweden regarding the STA’s reassessment. FLIR appealed the decision to the Administrative Court of Appeal in Stockholm, Sweden. After completing an extensive analysis, including consultation with outside specialists, Teledyne recorded a liability for this uncertain tax position that reflected the most likely outcome for this tax matter under the acquisition method for business combinations in the third quarter of 2021, which was included within accrued liabilities on the consolidated balance sheet at January 2, 2022. On January 26, 2022, the Administrative Court of Appeal in Stockholm, Sweden generally affirmed the March 2020 ruling of the First Instance Court and determined an estimated tax liability in the amount of SEK 2.765 billion. We paid the tax on February 2, 2022 totaling $296.4 million. We have requested for permission to appeal this ruling to the Swedish Administrative Supreme Court. We have not yet received a response to our request. The Company is in the process of reviewing and identifying acquisition accounting adjustments for a number of acquired tax positions of FLIR that may meet the definition of an acquired uncertain tax position. In addition to the STA matter described above, the Company has preliminarily recorded $201.8 million of provisional purchase accounting adjustments for the accrual of other uncertain tax positions of FLIR. These amounts are primarily included within other long-term liabilities on the Condensed Consolidated Balance Sheet. These preliminary estimates are subject to change as the Company obtains additional information on these matters and as additional information is made known during the post-acquisition measurement period. The final acquisition accounting adjustments for these tax matter may be materially different, as Teledyne obtains additional information on this matter and as additional information is made known during the post-acquisition measurement period. 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):
a) The amounts recorded as of April 3, 2022 are preliminary since there was insufficient time between the acquisition date and the end of the period to finalize the analysis. The unaudited proforma information below assumes that FLIR had been acquired at the beginning of the 2020 fiscal year and includes the effect of transaction accounting adjustments. These adjustments include financing and interest costs associated with debt to fund the acquisition, amortization of acquired intangible assets, depreciation of the fair value step-up of acquired property, plant and equipment, amortization of inventory fair value step-up (assumed to be fully amortized in 2020) and tax related effects as well as the issuance of Teledyne common stock in connection with the acquisition. This unaudited proforma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have resulted had the acquisition been in effect at the beginning of the 2020 fiscal year. In addition, the unaudited proforma results are not intended to be a projection of future results and do not reflect any operating efficiencies or cost savings that might be achievable. 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:
Goodwill and Acquired Intangible Assets Teledyne’s goodwill was $7,977.0 million at April 3, 2022 and $7,986.7 million at January 2, 2022. Teledyne’s net acquired intangible assets were $2,682.8 million at April 3, 2022 and $2,741.6 million at January 2, 2022. The decrease in the balance of net acquired intangible assets primarily reflected amortization of acquired intangible assets. Acquired intangible assets are summarized as follows:
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Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossThe changes in AOCI by component, net of tax, for the first quarter ended April 3, 2022 and April 4, 2021 are as follows (in millions):
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments Teledyne transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. The Company’s primary foreign currency risk management objective is to protect the U.S. dollar value of future cash flows and minimize the volatility of reported earnings. The Company utilizes foreign currency forward contracts to reduce the volatility of cash flows primarily related to forecasted revenues and expenses denominated in Canadian dollars for our Canadian companies, and in British pounds for our UK companies. These contracts are designated and qualify as cash flow hedges. The Company has also converted U.S. dollar denominated, variable rate and fixed rate obligations into euro fixed rate obligations using a receive float, pay fixed cross currency swap, and a receive fixed, pay fixed cross currency swap. These cross currency swaps are designated as cash flow hedges. In addition the Company has converted domestic U.S. variable rate debt to fixed rate debt using a receive variable, pay fixed interest rate swap. The interest rate swap is also designated as a cash flow hedge. The effectiveness of the cash flow hedge forward contracts is assessed prospectively and retrospectively using regression analysis as well as using other timing and probability criteria. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges, and hedges must be highly effective in offsetting changes to future cash flows on hedged transactions. The effective portion of the cash flow hedge forward contracts’ gains or losses resulting from changes in the fair value of these hedges is initially reported, net of tax, as a component of AOCI in stockholders’ equity until the underlying hedged item is reflected in our condensed consolidated statements of income, at which time the effective amount in AOCI is reclassified to revenue in our condensed consolidated statements of income. Net deferred gains recorded in AOCI, net of tax, for the forward contracts that will mature in the next twelve months total $1.8 million. These gains are expected to be offset by anticipated losses in the value of the forecasted underlying hedged item. Amounts related to the cross currency swaps and interest rate swap expected to be reclassified from AOCI into income in the next twelve months total $4.4 million. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur, within the defined hedge period, the gains or losses on the related cash flow hedges will be reclassified from AOCI to other income or expense. During the current reporting period, all forecasted transactions occurred and, therefore, there were no such gains or losses reclassified to other income and expense. As of April 3, 2022, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy Canadian dollars and to sell U.S. dollars totaling $166.9 million. These foreign currency forward contracts have maturities ranging from June 2022 to February 2024. Teledyne had foreign currency forward contracts designated as cash flow hedges to buy British pounds and to sell U.S. dollars totaling $18.7 million. These foreign currency forward contracts have maturities ranging from June 2022 to May 2023. The cross currency swaps have notional amounts of €113.0 million and $125.0 million, and €135.0 million and $150.0 million, and mature in March 2023 and October 2024, respectively. The interest rate swap has a notional amount of $125.0 million and matures in March 2023. In addition, Teledyne manages the risk of changes in the fair value of certain monetary liabilities attributable to changes in exchange rates. Teledyne manages these risks by using currency forward contracts formally designated and effective as fair value hedges. Hedge effectiveness is generally determined by evaluating the alignment of the hedging instrument's critical terms with the critical terms of the hedged item. The forward points attributable to the hedging instruments are excluded from the assessment of effectiveness and amortized to other income or expense, net using a systematic and rational methodology. Differences between the change in the fair value of the excluded component and amounts recognized under the systematic and rational method are recognized in other comprehensive income (loss). The change in fair value of the hedging instruments attributable to the hedged risk is reported in the other income or expense, net. The change in fair value of the hedged item attributable to the hedged risk is reported as an adjustment to its carrying value and also in other income or expense, net. At April 3, 2022 Teledyne had no forward contracts designated as fair value hedges. The effect of derivative instruments designated as cash flow hedges in the condensed consolidated financial statements for the first quarter ended April 3, 2022 and April 4, 2021 was as follows (in millions):
(a) Effective portion, pre-tax (b) Amount reclassified to offset earnings impact of liability hedged by cross currency swap Non-Designated Hedging Activities In addition, the Company utilizes foreign currency forward contracts to mitigate foreign exchange rate risk associated with foreign currency denominated monetary assets and liabilities, including intercompany receivables and payables. As of April 3, 2022, Teledyne had non-designated foreign currency contracts of this type, primarily in the following pairs (in millions):
The preceding table includes non-designated hedges derived from terms contained in triggered or previously designated cash flow hedges. The gains and losses on these derivatives which are not designated as hedging instruments are intended to, at a minimum, partially offset the transaction gains and losses recognized in earnings. Teledyne does not use foreign currency forward contracts for speculative or trading purposes. The effect of derivative instruments not designated as cash flow hedges recognized in other income and expense for the first quarter ended April 3, 2022 was expense of $4.8 million. The effect of derivative instruments not designated as cash flow hedges in other income and expense for the first quarter ended April 4, 2021 was expense of $0.2 million. The income or expense was largely offset by losses or gains in the value of the underlying hedged item excluding the impact of forward points. Fair Value of Derivative Financial Instruments The Company has elected to use the income approach to value the derivatives, using observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts on LIBOR and EURIBOR) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR and EURIBOR cash and swap rates, foreign currency forward rates and cross currency basis spreads). Mid-market pricing is used as a practical expedient for fair value measurements. The fair value measurement of an asset or liability must reflect the nonperformance risk of the entity and the counterparty. Therefore, the impact of the counterparty’s creditworthiness when in an asset position and the Company’s creditworthiness when in a liability position has also been factored into the fair value measurement of the derivative instruments and did not have a material impact on the fair value of these derivative instruments. Both the counterparty and the Company are expected to continue to perform under the contractual terms of the 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):
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per ShareFor the first quarter of 2022, 192,569 stock options were excluded in the computation of diluted earnings per share because the effect of their inclusion would have been anti-dilutive. For the first quarter of 2021, no stock options were excluded in the computation of earnings per share. As part of the consideration transferred for the acquisition of FLIR, the Company issued approximately 9.5 million shares of common stock on May 14, 2021. The weighted average number of common shares used in the calculation of basic and diluted earnings per share consisted of the following (in millions):
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Stock-Based Compensation Plans |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Plans | Stock-Based Compensation PlansTeledyne has long-term incentive plans pursuant to which it has granted non-qualified stock options, restricted stock and performance shares to certain employees. Performance shares are not significant. The Company also has non-employee Board of Director stock compensation plans, pursuant to which common stock, stock options and restricted stock units have been issued to its directors. Stock Incentive Plan Stock option compensation expense was $4.3 million for the first quarter of 2022 and was $4.2 million for the first quarter of 2021. The Company issues shares of common stock upon the exercise of stock options. Stock option transactions for the first quarter of 2022 are summarized as follows:
Restricted Stock The following table shows the restricted stock activity for the first three months of 2022: a) includes restricted stock units issued on May 14, 2021 in connection with the FLIR acquisition.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | InventoriesInventories are stated at current cost, net of reserves for excess, slow moving and obsolete inventory. Inventories are primarily valued under the FIFO method or average cost method, with an immaterial amount of inventories valued under the LIFO method .
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Customer Contracts |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Contracts | Customer Contracts Estimate at Completion Process For over time contracts using the cost-to-cost method, we have an Estimate at Completion (“EAC”) process in which management reviews the progress and execution of our performance obligations. This EAC process requires management judgment relative to assessing risks, estimating contract revenue and cost, and making assumptions for schedule and technical issues. Since certain contracts extend over multiple reporting periods, the impact of revisions in cost and revenue estimates during the progress of work may adjust the current period earnings through a cumulative catch-up basis. This method recognizes, in the current period, the cumulative effect of the changes on current and prior quarters. Additionally, if the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract cost and revenue estimates for significant contracts are reviewed and reassessed quarterly. The majority of revenue recognized over time uses an EAC process. The net aggregate effects of changes in estimates on contracts accounted for under the cost-to-cost method in the first three months of 2022 was approximately $7.6 million of favorable operating income, primarily related to favorable changes in estimates that impacted revenue within the Digital Imaging segment. The net aggregate effects of changes in estimates on contracts accounted for under the cost-to-cost method in the first three months of 2021 was approximately $7.7 million of favorable operating income, primarily related to favorable changes in estimates that impacted revenue within the Digital Imaging operating segment. None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income for any period presented. Contract Liabilities We recognize a liability for interim and advance payments in excess of revenue recognized and present it as a contract liability which is included within accrued liabilities and other long-term liabilities on the condensed consolidated balance sheet, which represented $178.4 million and $24.5 million as of April 3, 2022, and $186.0 million and $25.3 million as of January 2, 2022, respectively. The Company recognized revenue of $63.7 million during the three months ended April 3, 2022 from contract liabilities that existed at the beginning of year. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less. Incremental costs to obtain or fulfill contracts with an amortization period greater than one year were not material. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and excludes unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity). As of April 3, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $2,989.7 million. The Company expects approximately 77% of remaining performance obligations to be recognized into revenue within the next twelve months, with the remaining 23% recognized thereafter. Product Warranty Costs Some of the Company’s products are subject to specified warranties, and the Company provides for the estimated cost of product warranties. The adequacy of the warranty reserve is assessed regularly, and the reserve is adjusted as necessary based on a review of historic warranty experience with respect to the applicable business or products, as well as the length and actual terms of the warranties. The warranty reserve is included in current and long-term accrued liabilities on the Condensed Consolidated Balance Sheet.
Accounts Receivable, net Accounts receivable is presented net of an allowance for doubtful accounts of $11.7 million at April 3, 2022 and $13.8 million at January 2, 2022.
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Income Taxes |
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Apr. 03, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which the Company operates. However, losses in certain jurisdictions and discrete items, such as the resolution of uncertain tax positions, are treated separately. The Company’s effective income tax rate for the first quarter of 2022 was a negative 4.7% compared with an effective income tax rate of 16.4% for the first quarter of 2021. The first quarter of 2022 includes net discrete income tax benefits of $56.5 million compared with net discrete income tax benefits of $6.3 million. The first quarter of 2022 net discrete income tax amounts include a non-cash income tax benefit of $50.0 million primarily related to the resolution of certain FLIR tax reserves and $6.7 million related to share-based accounting. The first quarter of 2021 net discrete tax benefits include $4.8 million related to share-based accounting. Excluding the net discrete income tax items in both periods, the effective tax rates would have been 23.1% for the first quarter of 2022 and 22.6% for the first quarter of 2021. See Note 2 to these Notes to Condensed Consolidated Financial Statements for information regarding FLIR historical tax matters that existed at the date of the acquisition, including the STA’s reassessment of tax for the year ending December 31, 2012 related to one of FLIR’s non-operating subsidiaries in Sweden.
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Long-Term Debt and Letters of Credit |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Letters of Credit | Long-Term Debt and Letters of Credit
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Leases |
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Apr. 03, 2022 | |
Leases [Abstract] | |
Leases | LeasesOperating lease expense was $9.6 million and $6.4 million for the first quarter of 2022 and 2021, respectively. |
Lawsuits, Claims, Commitments, Contingencies and Related Matters |
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Apr. 03, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lawsuits, Claims, Commitments, Contingencies and Related Matters | Lawsuits, Claims, Commitments, Contingencies and Related Matters For a further description of the Company’s commitments and contingencies, reference is made to Note 14 of the Company’s financial statements as of and for the fiscal year ended January 2, 2022, included in the 2021 Form 10-K. At April 3, 2022, the Company’s reserves for environmental remediation obligations totaled $6.3 million, of which $1.8 million is included in current accrued liabilities. At January 2, 2022, the Company’s reserves for environmental remediation obligations totaled $6.3 million. The Company evaluates whether it may be able to recover a portion of future costs for environmental liabilities from its insurance carriers and from third parties. The timing of expenditures depends on a number of factors that vary by site, including the nature and extent of contamination, the number of potentially responsible parties, the timing of regulatory approvals, the complexity of the investigation and remediation, and the standards for remediation. The Company expects that it will expend present accruals over many years and will complete remediation of all sites with which it has been identified in up to 30 years. Effective April 24, 2022, The United States Department of State’s Office of Defense Trade Controls Compliance (“DDTC”) closed the four-year Consent Agreement that had been entered into by FLIR Systems, Inc., on April 24, 2018, to resolve allegations regarding the unauthorized export of technical data and defense services to dual and third country nationals in certain of FLIR’s facilities, the failure to properly use and manage export licenses and export authorizations, and failures to report certain payments under 22 CFR Part 130 in potential violation of the International Traffic in Arms Regulations (“ITAR”). On April 13, 2022, Teledyne paid $3.5 million as the final installment of the civil penalty under the Consent Agreement. While FLIR and its successor by mergers, Teledyne FLIR, has enhanced the trade compliance program more broadly, implemented remedial measures and have undergone external audits of the ITAR compliance program, future adverse disclosures and findings could cause incurrence of additional expenses in connection with implementation of remedial measures. In June 2017, the Bureau of Industry and Security (“BIS”) of the United States Department of Commerce informed FLIR of additional export licensing requirements that restricted the FLIR’s ability to sell certain thermal products without a license to customers in China not identified on a list maintained by the United States Department of Commerce. This action was precipitated by concerns of sale without a license or potential diversion of some of FLIR’s products to prohibited end users and to countries subject to economic and other sanctions implemented by the United States. BIS subsequently favorably modified these restrictions to reduce the applicability of the restrictions to sales of FLIR's Tau camera cores (as opposed to finished products containing Tau camera cores) to customers in China not identified on a list maintained by the United States Department of Commerce and persons in a country other than those in the Export Administration Regulations (“EAR”) Country Group A:5 (Supplement No. 1 to Part 740 of the EAR). FLIR has identified certain shipments that potentially violate these license requirements and voluntary disclosed this matter to BIS. On April 22, 2022, BIS closed this voluntary disclosure with the issuance of a Warning Letter to Teledyne FLIR, LLC. In April 2021, FLIR resolved allegations of misrepresentations made to BIS, between November 2012 and December 2013, in a commodity jurisdiction request relating to newly developed Lepton uncooled focal plane arrays by an administrative settlement and fine of $0.3 million and agreeing to perform two internal audits of its EAR export compliance programs. The first internal audit has been completed and a voluntary disclosure was filed to report potential violations. The second internal audit is to be completed by October 2022. FLIR and its successor by mergers, Teledyne FLIR, has made other voluntary disclosures to the U.S. Department of State and the U.S. Department of Commerce, including to BIS with respect to the shipments of products by FLIR from non-U.S. jurisdictions which were not licensed due to incorrect de minimis calculation methodology, as well as to other non-U.S. government agencies. If FLIR and now Teledyne FLIR, as its successor by mergers, is found to have violated applicable rules and regulations with respect to customers and limitations on the export and end use of its products or other trade compliance matters, Teledyne could be subject to substantial fines and penalties, suspension of existing licenses or other authorizations and/or loss or suspension of export privileges. At this time, based on available information, we are unable to reasonably estimate the time it may take to resolve the above-described open matters or the amount or range of potential loss, penalty or other government action, if any, that may be incurred in connection with these matters. However, an unfavorable outcome could result in substantial fines and penalties or loss or suspension of export privileges or of particular authorizations. Certain provisional adjustments have been made for the FLIR historical export compliance matters in Teledyne’s current preliminary estimates of its purchase price allocation. The final acquisition accounting adjustment for these matters may be materially different, as Teledyne obtains additional information on these matters and as additional information is made known during the post-acquisition measurement period. A number of other lawsuits, claims and proceedings have been or may be asserted against the Company, including those pertaining to product liability, acquisitions, patent infringement, contracts, environmental, employment and employee benefits matters. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial statements.
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Pension Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Pension Plans
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Teledyne is a leading provider of sophisticated digital imaging products and software, instrumentation, 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: Digital Imaging; Instrumentation; 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 2 to these Notes to Condensed Consolidated Financial Statements for information regarding the FLIR acquisition. The following table presents Teledyne’s segment disclosures (dollars in millions):
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):
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):
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 three months ended April 3, 2022, approximately 47% of net sales in the Engineered Systems segment were derived from fixed price contracts.
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General (Policies) |
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Apr. 03, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Teledyne Technologies Incorporated (“Teledyne” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in notes to consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, but resultant disclosures are in accordance with generally accepted accounting principles in the United States (“GAAP”) as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes in Teledyne’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022 (“2021 Form 10-K”). In the opinion of Teledyne’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of April 3, 2022 and the consolidated results of operations, consolidated comprehensive income and consolidated cash flows for the first quarter ended April 3, 2022. The results of operations and cash flows for the period ended April 3, 2022 are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current period presentation. The Company now discloses acquired intangible asset amortization on a separate income statement line. Acquired intangible asset amortization was previously included in selling, general and administrative expenses.
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Business Combinations, Goodwill and Acquired Intangible Assets (Tables) |
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Business Combination and Asset Acquisition [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Provisional Fair Values Allocated to Assets Acquired and Liabilities Assumed |
(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.
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Schedule of 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):
a) The amounts recorded as of April 3, 2022 are preliminary since there was insufficient time between the acquisition date and the end of the period to finalize the analysis.
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Schedule of 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:
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Schedule of Acquired Intangible Assets | Acquired intangible assets are summarized as follows:
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Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in AOCI by Component | The changes in AOCI by component, net of tax, for the first quarter ended April 3, 2022 and April 4, 2021 are as follows (in millions):
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Schedule of Reclassification out of Accumulated Other Comprehensive Income | The reclassifications out of AOCI to net income for the first quarter ended April 3, 2022 and April 4, 2021 are as follows (in millions):
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Derivative Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges | The effect of derivative instruments designated as cash flow hedges in the condensed consolidated financial statements for the first quarter ended April 3, 2022 and April 4, 2021 was as follows (in millions):
(a) Effective portion, pre-tax (b) Amount reclassified to offset earnings impact of liability hedged by cross currency swap
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Schedule of Notional Amounts of Outstanding Foreign Currency Contracts | As of April 3, 2022, Teledyne had non-designated foreign currency contracts of this type, primarily in the following pairs (in millions):
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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):
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Earnings per Share | The weighted average number of common shares used in the calculation of basic and diluted earnings per share consisted of the following (in millions):
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Stock-Based Compensation Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Transactions for Employee Stock Option Plans | Stock option transactions for the first quarter of 2022 are summarized as follows:
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Schedule of Restricted Stock Activity | The following table shows the restricted stock activity for the first three months of 2022:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories |
|
Customer Contracts (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warranty Reserve |
|
Long-Term Debt and Letters of Credit (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt |
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Pension Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Pension Plans and Postretirement Benefit Plans |
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 03, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Industry Segment Disclosures | The following table presents Teledyne’s segment disclosures (dollars in millions):
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):
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Schedule of Sales by Product Line | The following table provides a summary of the net sales by product line for the Instrumentation segment (in millions):
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Schedule of Disaggregation of Revenue | 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 three months ended April 3, 2022, approximately 47% of net sales in the Engineered Systems segment were derived from fixed price contracts.
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Business Combinations, Goodwill and Acquired Intangible Assets - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
May 14, 2021 |
Apr. 03, 2022 |
Jan. 02, 2022 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 7,977.0 | $ 7,986.7 | |
FLIR | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 287.7 | ||
Accounts receivables, net | 241.3 | ||
Unbilled receivables, net | 72.2 | ||
Inventories, net | 528.8 | ||
Prepaid expenses and other current assets | 55.2 | ||
Total current assets | 1,185.2 | ||
Property, plant and equipment | 356.3 | ||
Goodwill | 5,924.3 | ||
Acquired intangible assets | 2,490.0 | ||
Other long-term assets | 167.4 | ||
Total assets acquired | 10,123.2 | ||
Accounts payable | 144.7 | ||
Accrued liabilities | 651.3 | ||
Total current liabilities assumed | 796.0 | ||
Long-term debt, net | 496.8 | ||
Long-term deferred tax liabilities | 646.5 | ||
Other long-term liabilities | 275.2 | ||
Total liabilities assumed | 2,214.5 | ||
Consideration transferred | 7,908.7 | ||
Consideration transferred, net of cash acquired | 7,621.0 | ||
Net share issuances | $ 3,900.0 |
Business Combinations, Goodwill and Acquired Intangible Assets - Summary of Acquisition Date Acquired Intangible Assets (Details) - FLIR $ in Millions |
May 14, 2021
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Intangibles subject to amortization | $ 1,805.0 |
Total acquired intangible assets | $ 2,490.0 |
Weighted average useful life in years | 10 years 10 months 24 days |
Trademarks | |
Business Acquisition [Line Items] | |
Intangible assets not subject to amortization | $ 685.0 |
Proprietary technology | |
Business Acquisition [Line Items] | |
Intangibles subject to amortization | $ 1,355.0 |
Weighted average useful life in years | 9 years 8 months 12 days |
Customer list/relationships | |
Business Acquisition [Line Items] | |
Intangibles subject to amortization | $ 450.0 |
Weighted average useful life in years | 14 years 4 months 24 days |
Business Combinations, Goodwill and Acquired Intangible Assets - Pro Forma Information (Details) - FLIR $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Apr. 04, 2021
USD ($)
$ / shares
| |
Business Acquisition [Line Items] | |
Net sales | $ | $ 1,273.0 |
Net income | $ | $ 103.5 |
Basic earnings per common share (in USD per share) | $ / shares | $ 2.23 |
Diluted earnings per common share (in USD per share) | $ / shares | $ 2.18 |
Earnings Per Share - Narrative (Details) - shares |
3 Months Ended | ||
---|---|---|---|
May 14, 2021 |
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Earnings Per Share [Abstract] | |||
Stock options excluded in computation of diluted earnings per share (in shares) | 192,569 | 0 | |
FLIR | |||
Business Acquisition [Line Items] | |||
Shares issued (in shares) | 9,500,000 |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Earnings Per Share [Abstract] | ||
Weighted average basic common shares outstanding (in shares) | 46.7 | 37.0 |
Effect of dilutive securities (primarily stock options) (in shares) | 1.0 | 1.0 |
Weighted average diluted common shares outstanding (in shares) | 47.7 | 38.0 |
Stock-Based Compensation Plans - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option compensation expense | $ 4.3 | $ 4.2 |
Stock-Based Compensation Plans - Options Plans (Details) - Stock Options |
3 Months Ended |
---|---|
Apr. 03, 2022
$ / shares
shares
| |
Shares | |
Beginning balance (in shares) | shares | 1,793,857 |
Exercised (in shares) | shares | (96,582) |
Canceled (in shares) | shares | (6,403) |
Ending balance (in shares) | shares | 1,690,872 |
Exercisable at end of period (in shares) | shares | 1,415,510 |
Weighted Average Exercise Price | |
Beginning balance (in USD per share) | $ / shares | $ 206.08 |
Exercised (in USD per share) | $ / shares | 131.06 |
Canceled (in USD per share) | $ / shares | 421.79 |
Ending balance (in USD per share) | $ / shares | 209.55 |
Options exercisable at end of period (in USD per share) | $ / shares | $ 167.52 |
Stock-Based Compensation Plans - Restricted Stock Activity (Details) - Restricted Stock |
3 Months Ended |
---|---|
Apr. 03, 2022
$ / shares
shares
| |
Shares | |
Beginning balance (in shares) | shares | 87,180 |
Granted (in shares) | shares | 19,492 |
Vested (in shares) | shares | (30,404) |
Forfeited/Canceled (in shares) | shares | (1,195) |
Ending balance (in shares) | shares | 75,073 |
Weighted average fair value per share | |
Beginning balance (in USD per share) | $ / shares | $ 352.94 |
Granted (in USD per share) | $ / shares | 384.76 |
Vested (in USD per share) | $ / shares | 288.73 |
Forfeited/Canceled (in USD per share) | $ / shares | 409.41 |
Ending balance (in USD per share) | $ / shares | $ 386.31 |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions |
Apr. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Inventories | ||
Raw materials and supplies | $ 520.0 | $ 479.8 |
Work in process | 131.9 | 123.0 |
Finished goods | 149.4 | 150.1 |
Total inventories, net | $ 801.3 | $ 752.9 |
Customer Contracts - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
Jan. 02, 2022 |
|
Segment Reporting Information [Line Items] | |||
Contract with customer, current liability | $ 178.4 | $ 186.0 | |
Contract with customer, long-term liability | 24.5 | 25.3 | |
Revenue recognized from contract liabilities | 63.7 | ||
Remaining performance obligation | 2,989.7 | ||
Allowance for doubtful accounts | 11.7 | $ 13.8 | |
Digital Imaging | |||
Segment Reporting Information [Line Items] | |||
Change in estimate | $ 7.6 | $ 7.7 |
Customer Contracts - Schedule of Warranty Reserve (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Company's product warranty reserve | ||
Balance at beginning of year | $ 49.5 | $ 22.4 |
Product warranty expense | 0.6 | 3.5 |
Deductions | (4.8) | (3.3) |
Balance at end of period | $ 45.3 | $ 22.6 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 4.70% | 16.40% |
Discrete items | $ 56.5 | $ 6.3 |
Resolution of certain FLIR tax reserves | 50.0 | |
Share-based accounting discrete tax benefits | $ 6.7 | $ 4.8 |
Effective tax rate excluding discrete items (as a percent) | 23.10% | 22.60% |
Long-Term Debt and Letters of Credit - Narratives (Details) - Credit facility - USD ($) |
Apr. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Additional borrowing capacity | $ 1,150,000,000 | |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Available borrowing capacity | 969,900,000 | |
Long-term debt, gross | 157,000,000 | $ 125,000,000.0 |
Letters of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 23,100,000 |
Leases (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Leases [Abstract] | ||
Operating lease expense | $ 9.6 | $ 6.4 |
Pension Plans - Schedule of Defined Benefit Pension Plans and Postretirement Benefit Plans (Details) - Pension Plan - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Components of net period pension benefit expense | ||
Service cost — benefits earned during the period | $ 2.2 | $ 2.7 |
Pension non-service income | ||
Interest cost on benefit obligation | 5.9 | 5.6 |
Expected return on plan assets | (14.0) | (14.3) |
Amortization of net prior service cost | (0.5) | (0.8) |
Amortization of net actuarial loss | 5.8 | 6.7 |
Pension non-service income | $ (2.8) | $ (2.8) |
Segment Information - Identifiable Assets (Details) - USD ($) $ in Millions |
Apr. 03, 2022 |
Jan. 02, 2022 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 14,251.1 | $ 14,430.3 |
Operating segments | Digital Imaging | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 11,587.1 | 11,756.8 |
Operating segments | Instrumentation | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 1,634.2 | 1,640.3 |
Operating segments | Aerospace and Defense Electronics | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 528.9 | 536.3 |
Operating segments | Engineered Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 184.3 | 179.2 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 316.6 | $ 317.7 |
Segment Information - Sales (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Apr. 03, 2022 |
Apr. 04, 2021 |
|
Revenue from External Customer [Line Items] | ||
Net sales | $ 1,321.0 | $ 805.7 |
Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 308.9 | 286.5 |
Instrumentation | Marine Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 111.9 | 102.0 |
Instrumentation | Environmental Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 114.0 | 114.8 |
Instrumentation | Test and Measurement Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 83.0 | $ 69.7 |
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