Segment Information

3 Months Ended

Mar. 29, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

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.

Segment results includes net sales and operating income by segment but excludes non-service retirement benefit income, equity income or loss, unusual non-recurring legal matter settlements, 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. Corporate expense includes various administrative expenses relating to the corporate office and certain non-operating expenses, including certain acquisition-related transaction costs, not allocated to our segments.

The following table presents Teledyne’s segment disclosures (dollars in millions):

	First Quarter				%
	2020		2019		Change
Net sales(a):
Instrumentation	$	285.1	$	256.5	11.2	%
Digital Imaging	246.7		232.4		6.2	%
Aerospace and Defense Electronics	156.3		166.6		(6.2)	%
Engineered Systems	96.5		89.7		7.6	%
Total net sales	$	784.6	$	745.2	5.3	%
Operating income:
Instrumentation	$	50.8	$	39.9	27.3	%
Digital Imaging	43.8		36.6		19.7	%
Aerospace and Defense Electronics	13.4		32.5		(58.8)	%
Engineered Systems	11.4		6.4		78.1	%
Corporate expense	(15.4)		(18.1)		(14.9)	%
Operating income	$	104.0	$	97.3	6.9	%

(a) Net sales excludes inter-segment sales of $6.9 million and $6.4 million for the first quarter of 2020 and 2019, respectively.

Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash, deferred taxes, net pension assets/liabilities and other assets (in millions):

Identifiable assets:	March 29, 2020		December 29, 2019
Instrumentation	$	1,703.3	$	1,680.2
Digital Imaging	1,837.5		1,874.6
Aerospace and Defense Electronics	604.2		618.3
Engineered Systems	157.6		143.4
Corporate	282.4		263.3
Total identifiable assets	$	4,585.0	$	4,579.8

Product Lines

The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. Teledyne’s other three segments each contain one product line.

The following tables provide a summary of the net sales by product line for the Instrumentation segment (in millions):

	First Quarter
Instrumentation	2020		2019
Marine Instrumentation	109.3		$	105.2
Environmental Instrumentation	109.3		86.4
Test and Measurement Instrumentation	66.5		64.9
Total	$	285.1	$	256.5

We also disaggregate our revenue from contracts with customers by customer type, contract-type and geographic region for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

	First Quarter Ended March 29, 2020						First Quarter Ended March 31, 2019
	Customer Type						Customer Type
(in millions)	United States Government (a)		Other, Primarily Commercial		Total		United States Government (a)		Other, Primarily Commercial		Total
Net Sales:
Instrumentation	$	41.5	$	243.6	$	285.1	$	14.2	$	242.3	$	256.5
Digital Imaging	29.3		217.4		246.7		26.2		206.2		232.4
Aerospace and Defense Electronics	53.8		102.5		156.3		49.5		117.1		166.6
Engineered Systems	88.3		8.2		96.5		80.0		9.7		89.7
	$	212.9	$	571.7	$	784.6	$	169.9	$	575.3	$	745.2

a) Includes sales as a prime contractor or subcontractor.

	First Quarter Ended March 29, 2020						First Quarter Ended March 31, 2019
	Contract Type						Contract Type
(in millions)	Fixed Price		Cost Type		Total		Fixed Price		Cost Type		Total
Net Sales:
Instrumentation	$	281.5	$	3.6	$	285.1	$	251.0	$	5.5	$	256.5
Digital Imaging	213.4		33.3		246.7		199.2		33.2		232.4
Aerospace and Defense Electronics	156.1		0.2		156.3		163.4		3.2		166.6
Engineered Systems	50.3		46.2		96.5		34.9		54.8		89.7
	$	701.3	$	83.3	$	784.6	$	648.5	$	96.7	$	745.2

	First Quarter Ended March 29, 2020								First Quarter Ended March 31, 2019
	Geographic Region (a)								Geographic Region (a)
(in millions)	United States		Europe		All other		Total		United States		Europe		All other		Total
Net sales:
Instrumentation	$	217.8	$	54.9	$	12.4	$	285.1	$	211.1	$	33.6	$	11.8	$	256.5
Digital Imaging	77.6		68.8		100.3		246.7		72.4		67.4		92.6		232.4
Aerospace and Defense Electronics	131.9		24.2		0.2		156.3		146.6		19.8		0.2		166.6
Engineered Systems	96.5		—		—		96.5		89.7		—		—		89.7
	$	523.8	$	147.9	$	112.9	$	784.6	$	519.8	$	120.8	$	104.6	$	745.2

a) Net sales by geographic region of origin.