Business Segments

6 Months Ended

Jul. 02, 2023

Segment Reporting [Abstract]

Business Segments

Business Segments

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 include net sales and operating income by segment but excludes corporate office expenses. Corporate expense primarily includes various administrative expenses relating to the corporate office not allocated to our segments.

The following table presents net sales and operating income by segment (dollars in millions):

	Second Quarter				%		Six Months				%
	2023		2022		Change		2023		2022		Change
Net sales (a):
Digital Imaging	$	793.3	$	775.8	2.3	%	$	1,565.8	$	1,526.3	2.6	%
Instrumentation	328.4		312.5		5.1	%	661.9		621.4		6.5	%
Aerospace and Defense Electronics	186.0		168.8		10.2	%	359.2		335.0		7.2	%
Engineered Systems	117.0		98.7		18.5	%	221.1		194.1		13.9	%
Total net sales	$	1,424.7	$	1,355.8	5.1	%	$	2,808.0	$	2,676.8	4.9	%
Operating income:
Digital Imaging	$	124.6	$	117.9	5.7	%	$	246.8	$	233.6	5.7	%
Instrumentation	81.4		73.6		10.6	%	162.1		145.2		11.6	%
Aerospace and Defense Electronics	53.2		44.1		20.6	%	100.2		87.0		15.2	%
Engineered Systems	11.5		8.6		33.7	%	21.5		18.0		19.4	%
Corporate expense	(14.6)		(14.7)		(0.7)	%	(32.0)		(30.8)		3.9	%
Operating income	$	256.1	$	229.5	11.6	%	$	498.6	$	453.0	10.1	%
(a) Net sales excludes inter-segment sales of $8.1 million and $14.3 million for the second quarter and first six months of 2023, respectively, and $5.1 million and $10.6 million for the second quarter and first six months of 2022, respectively.

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):

Identifiable assets:	July 2, 2023		January 1, 2023
Digital Imaging	$	11,341.3	$	11,432.3
Instrumentation	1,637.8		1,626.4
Aerospace and Defense Electronics	568.6		540.1
Engineered Systems	215.9		200.3
Corporate	392.7		554.9
Total identifiable assets	$	14,156.3	$	14,354.0

Product Lines

The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. The Company’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):

	Second Quarter				Six Months
Instrumentation	2023		2022		2023		2022
Marine Instrumentation	$	127.4	$	115.3	$	255.6	$	227.2
Environmental Instrumentation	115.3		115.5		233.2		229.5
Test and Measurement Instrumentation	85.7		81.7		173.1		164.7
Total	$	328.4	$	312.5	$	661.9	$	621.4