Long-Term Debt

12 Months Ended

Jan. 01, 2012

Long-Term Debt [Abstract]

Long-Term Debt

Note 10.    Long-Term Debt

At January 1, 2012, Teledyne had $298.0 million in long-term debt outstanding. At January 2, 2011, Teledyne had $250.0 million in long-term debt outstanding.

On September 15, 2010 the Company issued $250.0 million in aggregate principal amount of private placement Senior Notes at par. The interest rates for the notes were determined on April 14, 2010. The Company used the proceeds of the private placement Senior Notes to pay down amounts outstanding under the Company’s then existing $590.0 million credit facility.

Teledyne’s amended and restated credit facility had lender commitments totaling $590.0 million and was set to expire on July 14, 2011. On February 25, 2011, Teledyne refinanced the then existing $590.0 million credit facility by terminating the facility and entering into a new facility that has lender commitments totaling $550.0 million. The new facility has a termination date of February 25, 2016. The new facility requires the Company to comply with various financial and operating covenants, including maintaining certain consolidated leverage and interest coverage ratios. Excluding interest and fees, no payments are due under the $550.0 million facility until it matures. Borrowings under our credit facility are at variable rates which are, at our option, tied to a Eurocurrency rate equal to LIBOR (London Interbank Offered Rate) plus an applicable rate or a base rate as defined in our credit agreement. Eurocurrency rate loans may be denominated in U.S. dollars or an alternative currency as defined in the agreement. Eurocurrency or LIBOR based loans under the facility typically have terms of one, two, three or six months and the interest rate for each such loan is subject to change if the loan is continued or converted following the applicable maturity date. Base rate loans have interest rates that primarily fluctuate with changes in the prime rate. Interest rates are also subject to change based on our consolidated leverage ratio as defined in the credit agreement. The credit agreement also provides for facility fees that vary between 0.20% and 0.45% of the credit line, depending on our consolidated leverage ratio as calculated from time to time. Teledyne also has a $5.0 million uncommitted credit line which permits credit extensions up to $5.0 million plus an incremental $2.0 million solely for standby letters of credit. This credit line is utilized, as needed, for periodic cash needs. There were no outstanding funding advances under the uncommitted credit line at January 1, 2012 or January 2, 2011. The Company also has $14.8 million outstanding under capital leases, of which $1.4 million is current. At year-end 2011, Teledyne had $13.5 million in outstanding letters of credit.

Total interest expense including credit facility fees and other bank charges was $16.7 million in 2011, $6.9 million in 2010 and $5.1 million in 2009.

At January 1, 2012 and January 2, 2011, long-term debt consisted of the following (in millions):

	2011		2010
4.04 % Senior Notes due September 2015	$	75.0	$	75.0
4.74% Senior Notes due September 2017		100.0		100.0
5.30% Senior Notes due September 2020		75.0		75.0
$550.0 million revolving credit facility, weighted average rate of 2.48% at January 1, 2012		48.0		—
Total long-term debt	$	298.0	$	250.0

No minimum principal payments on long-term debt are required until September 2015.