Business Segments

9 Months Ended

Oct. 01, 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 expenses. Corporate expense primarily includes 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):

	Third Quarter				%		Nine Months				%
	2023		2022		Change		2023		2022		Change
Net sales (a):
Digital Imaging	$	775.8	$	777.9	(0.3)	%	$	2,341.6	$	2,304.2	1.6	%
Instrumentation	329.1		306.4		7.4	%	991.0		927.8		6.8	%
Aerospace and Defense Electronics	183.3		169.5		8.1	%	542.5		504.5		7.5	%
Engineered Systems	114.3		109.8		4.1	%	335.4		303.9		10.4	%
Total net sales	$	1,402.5	$	1,363.6	2.9	%	$	4,210.5	$	4,040.4	4.2	%
Operating income:
Digital Imaging	$	136.3	$	133.7	1.9	%	$	383.1	$	367.3	4.3	%
Instrumentation	85.5		71.1		20.3	%	247.6		216.3		14.5	%
Aerospace and Defense Electronics	49.4		44.3		11.5	%	149.6		131.3		13.9	%
Engineered Systems	10.9		11.9		(8.4)	%	32.4		29.9		8.4	%
Corporate expense	(17.8)		(15.8)		12.7	%	(49.8)		(46.6)		6.9	%
Operating income	$	264.3	$	245.2	7.8	%	$	762.9	$	698.2	9.3	%
(a) Net sales exclude inter-segment sales of $7.2 million and $21.5 million for the third quarter and first nine months of 2023, respectively, and $4.8 million and $15.4 million for the third quarter and first nine 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:	October 1, 2023		January 1, 2023
Digital Imaging	$	11,267.8	$	11,432.3
Instrumentation	1,643.1		1,626.4
Aerospace and Defense Electronics	570.9		540.1
Engineered Systems	210.7		200.3
Corporate	523.3		554.9
Total identifiable assets	$	14,215.8	$	14,354.0

Product Lines

The Instrumentation segment includes three product lines: Marine Instrumentation, Environmental 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):

	Third Quarter				Nine Months
Instrumentation	2023		2022		2023		2022
Marine Instrumentation	$	132.5	$	110.0	$	388.1	$	337.2
Environmental Instrumentation	113.0		114.8		346.2		344.3
Test and Measurement Instrumentation	83.6		81.6		256.7		246.3
Total	$	329.1	$	306.4	$	991.0	$	927.8