Industry Segments

3 Months Ended

Apr. 01, 2012

Industry Segments [Abstract]

Industry Segments

Note 13. Industry Segments

Teledyne is a leading provider of sophisticated instrumentation, digital imaging products and software, 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: Instrumentation; Digital Imaging; Aerospace and Defense Electronics; and Engineered Systems. The Company manages, evaluates and aggregates its operating segments for segment reporting purposes primarily on the basis of product and service type, production process, distribution methods, type of customer, management organization, sales growth potential and long-term profitability. The Instrumentation segment provides monitoring and control instruments for marine, environmental, scientific, industrial and defense applications and harsh environment interconnect products. The Digital Imaging segment includes our sponsored and centralized research laboratories benefiting government programs and businesses, as well as major development efforts for innovative digital imaging products for government and space applications. It also includes digital image capture products, primarily consisting of high performance sensors, cameras and software for use in industrial, scientific, medical and professional applications products, specialty semiconductors and micro electro mechanical systems, and infrared detectors, cameras and optomechanical assemblies. The Aerospace and Defense Electronics segment provides sophisticated electronic components and subsystems and communications products, including defense electronics, data acquisition and communications equipment for air transport and business aircraft and components and subsystems for wireless and satellite communications, as well as general aviation batteries. The Engineered Systems segment provides innovative systems engineering and integration, advanced technology application, software development and manufacturing solutions to space, military, environmental, energy, chemical, biological and nuclear systems and missile defense requirements. The Engineered Systems segment also designs and manufactures electrochemical energy systems and small turbine engines.

Segment operating profit includes other income and expense directly related to the segment, but excludes minority interest, 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.

The following table presents Teledyne’s interim industry segment disclosures for net sales and operating profit including other segment income. The table also provides a reconciliation of segment operating profit and other segment income to total net income attributable to common stockholders (amounts in millions):

	First Quarter 2012			First Quarter 2011			% Change
Net sales:
Instrumentation	$	160.6		$	157.9			1.7	%
Digital Imaging		94.2			66.2			42.3	%
Aerospace and Defense Electronics		164.8			166.9			(1.3	)%
Engineered Systems		74.4			77.1			(3.5	)%
Total net sales	$	494.0		$	468.1			5.5	%
Operating profit and other segment income:
Instrumentation	$	31.6		$	32.0			(1.3	)%
Digital Imaging		4.3			3.9			10.3	%
Aerospace and Defense Electronics		22.9			21.6			6.0	%
Engineered Systems		6.2			6.6			(6.1	)%
Segment operating profit and other segment income		65.0			64.1			1.4	%
Corporate expense		(9.5	)		(9.4	)		1.1	%
Other expense, net		(0.4	)		(0.3	)		33.3	%
Interest expense, net		(4.0	)		(4.4	)		(9.1	)%
Income from continuing operations before income taxes		51.1			50.0			2.2	%
Provision for income taxes		15.5			17.5			(11.4	)%
Net income		35.6			32.5			9.5	%
Loss from discontinued operations		—			(0.5	)		*
Net income before noncontrolling interest		35.6			32.0			11.3	%
Add back: Net loss attributable to noncontrolling interest		0.1			—			*
Net income attributable to Teledyne	$	35.7		$	32.0			11.6	%

* percentage change not meaningful

Product Lines

The Instrumentation segment includes two product lines: Environmental Instrumentation and Marine Instrumentation. The Digital Imaging segment contains one product line as does the Aerospace and Defense Electronics segment. The Engineered Systems segment includes three product lines: Engineered Products and Services, Turbine Engines and Energy Systems.

The tables below provide a summary of the sales by product line for the Instrumentation segment and the Engineered Systems segment (in millions):

	First Quarter
Instrumentation	2012		2011
Environmental Instrumentation	$	64.6	$	58.7
Marine Instrumentation		96.0		99.2
Total	$	160.6	$	157.9
	First Quarter
Engineered Systems	2012		2011
Engineered Products and Services	$	57.2	$	65.7
Turbine Engines		6.9		4.4
Energy Systems		10.3		7.0
Total	$	74.4	$	77.1