Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 29, 2019

Accounting Policies [Abstract]

Schedule of Accumulated Other Comprehensive Income/(Loss)

The following table summarizes the changes in accumulated balances of other comprehensive income/(loss) (“AOCI”) for the fiscal years ended December 29, 2019, and December 30, 2018 (in millions):

	Foreign Currency Translation		Cash Flow Hedges and other		Pension and Postretirement Benefits		Total
Balance as of December 31, 2017	$	(102.0)	$	0.5	$	(227.8)	$	(329.3)
Other comprehensive income (loss) before reclassifications	(79.5)		1.0		—		(78.5)
Amounts reclassified from AOCI	—		(6.4)		(31.4)		(37.8)
Net other comprehensive loss	(79.5)		(5.4)		(31.4)		(116.3)
Reclassification of stranded income tax effects	—		—		(47.6)		(47.6)
Balance as of December 30, 2018	(181.5)		(4.9)		(306.8)		(493.2)
Other comprehensive income before reclassifications	31.1		7.6		—		38.7
Amounts reclassified from AOCI	—		(5.0)		(16.3)		(21.3)
Net other comprehensive income (loss)	31.1		2.6		(16.3)		17.4
Balance as of December 29, 2019	$	(150.4)	$	(2.3)	$	(323.1)	$	(475.8)

The reclassification out of AOCI for the fiscal years ended December 29, 2019, and December 30, 2018, are as follows (in millions):

	December 29, 2019		December 30, 2018
	Amount reclassified from AOCI		Amount reclassified from AOCI		Financial Statement Presentation
Gain on cash flow hedges:
Gain recognized in income on derivatives	$	(6.9)	$	(8.7)	See Note 2
Income tax impact	1.9		2.3		Provision for income taxes
Total	$	(5.0)	$	(6.4)
Amortization of defined benefit pension and postretirement plan items:
Amortization of prior service cost	$	(5.9)	$	(6.1)	See Note 11
Amortization of net actuarial loss	30.9		31.5		See Note 11
Pension adjustments	(47.1)		(66.6)		See Note 11
Total before tax	(22.1)		(41.2)
Income tax impact	5.8		9.8
Net of tax	$	(16.3)	$	(31.4)

Changes in Product Warranty Reserve

Warranty Reserve (in millions):	2019		2018		2017
Balance at beginning of year	$	21.0	$	21.1	$	18.4
Product warranty expense	13.1		10.0		6.0
Deductions	(14.2)		(10.1)		(6.4)
Acquisitions	4.9		—		3.1
Balance at end of year	$	24.8	$	21.0	$	21.1

Computations of Basic and Diluted Earnings per Share

The following table sets forth the computations of basic and diluted earnings per share (amounts in millions, except per share data):

Net Income Per Common Share:	2019		2018		2017
Net income	$	402.3	$	333.8	$	227.2
Basic earnings per common share:
Weighted average common shares outstanding	36.3		35.8		35.2
Basic earnings per common share	$	11.08	$	9.32	$	6.45
Diluted earnings per share:
Weighted average common shares outstanding	36.3		35.8		35.2
Effect of diluted securities (primarily stock options)	1.2		1.2		1.1
Weighted average diluted common shares outstanding	37.5		37.0		36.3
Diluted earnings per common share	$	10.73	$	9.01	$	6.26

Schedule of Notional Amounts of Outstanding Foreign Currency Contracts

As of December 29, 2019, Teledyne primarily had foreign currency contracts of this type in the following pairs (in millions):

Contracts to Buy			Contracts to Sell
Currency	Amount		Currency	Amount
Canadian Dollars	$	7.9	U.S. Dollars	US$	6.2
Euros	€	35.8	U.S. Dollars	US$	39.2
Great Britain Pounds	£	44.9	U.S. Dollars	US$	55.5
Canadian Dollars	$	11.9	Euros	€	8.2
Danish Krone	Kr.	66.2	U.S. Dollars	US$	9.7
Great Britain Pounds	£	9.1	Euros	€	10.3

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The effect of derivative instruments designated as cash flow hedges for 2019 and 2018 was as follows (in millions):

	2019		2018
Net gain recognized in AOCI - foreign exchange contracts (a)	$	9.3	$	1.2
Net gain recognized in AOCI - interest rate contracts	$	0.8	$	—
Net gain (loss) reclassified from AOCI into revenue/cost of sales - foreign exchange contracts	$	(1.8)	$	2.1
Net gain reclassified from AOCI into interest expense - foreign exchange contracts	$	2.4	$	2.4
Net gain reclassified from AOCI into interest expense -interest rate contracts	$	0.2	$	—
Net gain reclassified from AOCI into other income and expense, net - foreign exchange contracts (b)	$	6.0	$	4.2
Net foreign exchange loss recognized in revenue, net - foreign exchange contracts (c)	$	(0.5)	$	(0.5)

(a)Effective portion

(b)Amount reclassified to offset earnings impact of liability hedged by cross currency swap

(c)Amount excluded from effectiveness testing (recorded in other income and expense in 2018)

Fair Values of Derivative Financial Instruments

The fair values of the Company’s derivative financial instruments are presented below. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy (in millions):

Asset/(Liability) Derivatives	Balance sheet location	December 29, 2019		December 30, 2018
Derivatives designated as hedging instruments:
Cash flow forward contracts	Other assets	$	1.3	$	—
Interest rate contracts	Other current assets	0.2		—
Interest rate contracts	Other non-current assets	0.3		—
Cash flow forward contracts	Accrued liabilities	(0.1)		(4.2)
Cash flow cross currency swaps	Other current assets	5.4		—
Cash flow cross currency swaps	Other non-current liabilities	(7.8)		—
Cash flow cross currency swaps	Accrued liabilities	0.3		(6.3)
Total derivatives designated as hedging instruments		(0.4)		(10.5)
Derivatives not designated as hedging instruments:
Non-designated forward contracts	Other current assets	0.1		—
Non-designated forward contracts	Accrued liabilities	(0.4)		(0.6)
Total derivatives not designated as hedging instruments		(0.3)		(0.6)
Total liability derivatives		$	(0.7)	$	(11.1)