Business Combinations, Goodwill and Acquired Intangible Assets (Tables)

6 Months Ended

Jul. 03, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Provisional Fair Values Allocated to Assets Acquired and Liabilities Assumed

Fair values allocated to the assets acquired and liabilities assumed - FLIR (in millions):
Cash and cash equivalents	$	287.7
Accounts receivables, net	241.3
Unbilled receivables, net	72.1
Inventories, net	519.4
Prepaid expenses and other current assets	54.8
Total current assets	1,175.3
Property, plant and equipment	354.1
Goodwill	5,939.7
Acquired intangible assets	2,490.0
Other long-term assets	141.9
Total assets acquired	$	10,101.0
Accounts payable	144.7
Accrued liabilities	612.1
Total current liabilities assumed	756.8
Long-term debt, net	496.8
Long-term deferred tax liabilities	603.3
Other long-term liabilities	335.5
Total liabilities assumed	2,192.4
Consideration transferred	$	7,908.6
Consideration transferred, net of cash acquired (a)	$	7,620.9

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

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):

Intangibles subject to amortization:	Intangible Assets		Weighted average useful life in years
Proprietary technology	$	1,355.0	9.7
Customer list/relationships	450.0		14.4
Total intangibles subject to amortization	1,805.0		10.9
Intangibles not subject to amortization:
Trademarks	685.0
Total acquired intangible assets	$	2,490.0

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:

	Second Quarter (a)		Six Months (a)
(unaudited - in millions, except per share amounts)	2021		2021
Net sales	$	1,275.0	$	2,548.0
Net income	$	93.2	$	192.3
Basic earnings per common share	$	2.19	$	4.84
Diluted earnings per common share	$	2.14	$	4.71
(a) The above unaudited proforma information is presented for the FLIR acquisition as it is considered a material acquisition.

Schedule of Acquired Intangible Assets

Acquired intangible assets are summarized as follows:

	July 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	$	1,750.4	$	432.7	$	1,317.7	$	1,767.7	$	358.2	$	1,409.5
Customer list/relationships	611.0		159.6		451.4		616.2		141.8		474.4
Patents	0.6		0.6		—		0.6		0.6		—
Non-compete agreements	0.9		0.9		—		0.9		0.9		—
Trademarks	5.3		4.1		1.2		4.5		3.9		0.6
Backlog	15.8		15.8		—		16.3		16.3		—
Total intangibles subject to amortization	2,384.0		613.7		1,770.3		2,406.2		521.7		1,884.5
Intangibles not subject to amortization:
Trademarks	848.5		—		848.5		857.1		—		857.1
Total acquired intangible assets	$	3,232.5	$	613.7	$	2,618.8	$	3,263.3	$	521.7	$	2,741.6