Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 29, 2015 | Apr. 28, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TELEDYNE TECHNOLOGIES INC | |
Entity Central Index Key | 1094285 | |
Document Type | 10-Q | |
Document Period End Date | 29-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -16 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 35,335,689 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Income Statement [Abstract] | ||
Net sales | $565 | $573.50 |
Costs and expenses | ||
Cost of sales | 345.9 | 351.7 |
Selling, general and administrative expenses | 151.8 | 155.8 |
Total costs and expenses | 497.7 | 507.5 |
Operating income | 67.3 | 66 |
Interest and debt expense, net | -5.9 | -4.7 |
Other income, net | 0.8 | 0.6 |
Income before income taxes | 62.2 | 61.9 |
Provision for income taxes | 18.5 | 15.9 |
Net income | 43.7 | 46 |
Noncontrolling interest | -0.2 | |
Net income attributable to Teledyne | $43.70 | $45.80 |
Basic earnings per common share (in USD per share) | $1.22 | $1.22 |
Weighted average common shares outstanding (in shares) | 35.7 | 37.5 |
Diluted earnings per common share (in USD per share) | $1.20 | $1.20 |
Weighted average diluted common shares outstanding (in shares) | 36.5 | 38.3 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net income | $43.70 | $46 |
Other comprehensive income (loss): | ||
Foreign exchange translation adjustment | -49.2 | -9.4 |
Hedge activity and interest rate swap, net of tax | -2.3 | -1 |
Pension and postretirement benefit adjustments, net of tax | 4.9 | 2.9 |
Other comprehensive income (loss) | -46.6 | -7.5 |
Comprehensive income (loss) | -2.9 | 38.5 |
Noncontrolling interest | -0.2 | |
Comprehensive income (loss) attributable to Teledyne | ($2.90) | $38.30 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $110.20 | $141.40 |
Accounts receivable, net | 389.1 | 400.7 |
Inventories, net | 323.4 | 311.8 |
Deferred tax assets | 42 | 42.8 |
Prepaid expenses and other current assets | 36.6 | 45 |
Total current assets | 901.3 | 941.7 |
Property, plant and equipment, at cost, net of accumulated depreciation and amortization of $425.6 at March 29, 2015 and $417.5 at December 28, 2014 | 329.1 | 336.5 |
Goodwill | 1,133.70 | 1,150.60 |
Acquired intangibles, net | 264.8 | 277.6 |
Prepaid pension assets | 94.7 | 86.3 |
Other assets, net | 69.5 | 69.5 |
Total Assets | 2,793.10 | 2,862.20 |
Current Liabilities | ||
Accounts payable | 152.1 | 162.5 |
Accrued liabilities | 244.3 | 290.3 |
Current portion of long-term debt and capital leases | 87.5 | 86.2 |
Total current liabilities | 483.9 | 539 |
Long-term debt and capital leases | 742.5 | 618.9 |
Other long-term liabilities | 237.2 | 235.8 |
Total Liabilities | 1,463.60 | 1,393.70 |
Stockholders’ Equity | ||
Preferred stock, $0.01 par value; outstanding shares - none | 0 | 0 |
Common stock, $0.01 par value; authorized 125 million shares; issued shares: 37,697,865 at March 29, 2015 and 37,697,865 at December 28, 2014; Outstanding shares: 35,331,555 at March 29, 2015 and 36,655,584 at December 28, 2014 | 0.4 | 0.4 |
Additional paid-in capital | 318.4 | 326.5 |
Retained earnings | 1,569.40 | 1,525.70 |
Treasury stock | -227 | -102.1 |
Accumulated other comprehensive loss | -369.8 | -323.2 |
Total Teledyne Stockholders’ Equity | 1,291.40 | 1,427.30 |
Noncontrolling interest | 38.1 | 41.2 |
Total Stockholders’ Equity | 1,329.50 | 1,468.50 |
Total Liabilities and Stockholders’ Equity | $2,793.10 | $2,862.20 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Accumulated depreciation and amortization | $425.60 | $417.50 |
Preferred stock, par value (in USD per share) | $0.01 | $0.01 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in USD per share) | $0.01 | $0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Common stock, shares outstanding | 35,331,555 | 36,655,584 |
Common Stock, Shares, Issued | 37,697,865 | 37,697,865 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Operating Activities | ||
Net income | $43.70 | $46 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23.2 | 23.2 |
Deferred income taxes | 0.4 | 0.5 |
Stock option compensation expense | 3.8 | 2.6 |
Excess income tax benefits from stock options exercised | -0.8 | -2.9 |
Changes in operating assets and liabilities, excluding the effect of businesses acquired: | ||
Accounts receivable | 7.7 | 0.4 |
Inventories | -15.9 | -14.2 |
Prepaid expenses and other assets | -4.6 | 0.6 |
Accounts payable | -8.8 | 5.1 |
Accrued liabilities | -39.1 | -29.3 |
Income taxes payable, net | 11.4 | 5 |
Long-term assets | -0.2 | -2.3 |
Other long-term liabilities | 1.9 | -1.7 |
Accrued pension obligation | -3.6 | -6.1 |
Accrued postretirement benefits | -0.3 | 0.1 |
Other, net | -2.1 | 0.1 |
Net cash provided by operating activities | 16.7 | 27.1 |
Investing Activities | ||
Purchases of property, plant and equipment | -7.7 | -11.7 |
Purchase of businesses and other investments | -18.8 | |
Proceeds from the disposal of fixed assets | 0.3 | |
Net cash used by investing activities | -26.2 | -11.7 |
Financing Activities | ||
Net proceeds from debt | 127.1 | 7.9 |
Proceeds from exercise of stock options | 2.7 | 6.7 |
Purchase of treasury stock | -142 | -23.6 |
Excess income tax benefits from stock options exercised | 0.8 | 2.9 |
Issuance of cash flow hedges | -2.3 | -0.9 |
Net cash used by financing activities | -13.7 | -7 |
Effect of exchange rate changes on cash and cash equivalents | -8 | -0.7 |
Increase (decrease) in cash and cash equivalents | -31.2 | 7.7 |
Cash and cash equivalents—beginning of period | 141.4 | 66 |
Cash and cash equivalents—end of period | $110.20 | $73.70 |
General
General | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared by Teledyne Technologies Incorporated (“Teledyne” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in notes to consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, but resultant disclosures are in accordance with accounting principles generally accepted in the United States as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto in Teledyne’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014 (“2014 Form 10-K”). | |
In the opinion of Teledyne’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of March 29, 2015 and the consolidated results of operations and consolidated comprehensive income and consolidated cash flows for the three months then ended. The results of operations and cash flows for the period ended March 29, 2015 are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current period presentation. | |
Recent Accounting Pronouncements | |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, “Amendments to the Consolidation Analysis” which changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. The new guidance will be effective for the Company’s 2016 fiscal year and subsequent interim periods. The adoption of the guidance is not expected to have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early application not permitted. In March 2015, the FASB voted to defer the effective date by one year, but allow early adoption as of the original adoption date. This proposed delay is subject to the board's normal due diligence process, including a public comment period. The Company is currently in the process of determining its implementation approach and assessing the impact on the consolidated financial statements and footnote disclosures. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the first quarter and March 29, 2015 and March 30, 2014 are as follows (in millions): | ||||||||||||||||
Foreign Currency Translation | Cash Flow Hedges | Pension and Postretirement Benefits | Total | |||||||||||||
Balance as of December 28, 2014 | $ | (90.6 | ) | $ | (5.3 | ) | $ | (227.3 | ) | $ | (323.2 | ) | ||||
Other comprehensive loss before reclassifications | (49.2 | ) | (3.4 | ) | — | (52.6 | ) | |||||||||
Amounts reclassified from AOCI | — | 1.1 | 4.9 | 6 | ||||||||||||
Net other comprehensive income (loss) | (49.2 | ) | (2.3 | ) | 4.9 | (46.6 | ) | |||||||||
Balance as of March 29, 2015 | $ | (139.8 | ) | $ | (7.6 | ) | $ | (222.4 | ) | $ | (369.8 | ) | ||||
Foreign Currency Translation | Cash Flow Hedges | Pension and Postretirement Benefits | Total | |||||||||||||
Balance as of December 29, 2013 | $ | (32.4 | ) | $ | (3.3 | ) | $ | (129.8 | ) | $ | (165.5 | ) | ||||
Other comprehensive income (loss) before reclassifications | (9.4 | ) | (1.6 | ) | — | (11.0 | ) | |||||||||
Amounts reclassified from AOCI | — | 0.6 | 2.9 | 3.5 | ||||||||||||
Net other comprehensive income (loss) | (9.4 | ) | (1.0 | ) | 2.9 | (7.5 | ) | |||||||||
Balance as of March 30, 2014 | $ | (41.8 | ) | $ | (4.3 | ) | $ | (126.9 | ) | $ | (173.0 | ) | ||||
The reclassifications out of AOCI for the first quarter and ended March 29, 2015 and March 30, 2014 are as follows (in millions): | ||||||||||||||||
Amount Reclassified from AOCI Three Months Ended | Amount Reclassified from AOCI Three Months Ended | Statement of Income | ||||||||||||||
29-Mar-15 | March 30, 2014 | Presentation | ||||||||||||||
Loss on cash flow hedges: | ||||||||||||||||
Loss recognized in income on derivatives | $ | 1.4 | $ | 0.9 | Other expense | |||||||||||
Income tax benefit | (0.3 | ) | (0.3 | ) | Income tax benefit | |||||||||||
Total | $ | 1.1 | $ | 0.6 | ||||||||||||
Amortization of defined benefit pension and postretirement plan items: | ||||||||||||||||
Amortization of prior service cost | $ | (1.5 | ) | $ | (1.1 | ) | Pension expense | |||||||||
Amortization of net actuarial loss | 9 | 5.9 | Pension expense | |||||||||||||
Total before tax | 7.5 | 4.8 | ||||||||||||||
Income tax benefit | (2.6 | ) | (1.9 | ) | Income tax benefit | |||||||||||
Total | $ | 4.9 | $ | 2.9 | ||||||||||||
Business_Combinations_and_Inve
Business Combinations and Investments, Goodwill and Acquired Intangible Assets | 3 Months Ended |
Mar. 29, 2015 | |
Business Combinations and Investments, Goodwill and Acquired Intangible Assets [Abstract] | |
Business Combinations and Investments, Goodwill and Acquired Intangible Assets | Business Combinations and Investments, Goodwill and Acquired Intangible Assets |
On February 2, 2015, Teledyne acquired Bowtech Products Limited (“Bowtech”) through a U.K.-based subsidiary for $18.8 million in cash, net of cash acquired and including an estimated working capital adjustment. Based in Aberdeen, Scotland, Bowtech designs and manufactures harsh underwater environment vision systems. Bowtech had sales of £6.6 million for its fiscal year ended January 31, 2015 and is part of the Instrumentation segment. | |
During 2014, Teledyne made four acquisitions, the largest of which was Bolt Technology Corporation on November 18, 2014. All of the 2014 acquisitions are part of the Instrumentation segment. | |
Teledyne funded the purchases from borrowings under its credit facility and cash on hand. The results of the acquisitions have been included in Teledyne’s results since the dates of the respective acquisition. | |
For a further description of the Company’s acquisition activity for the fiscal year ended December 28, 2014, please refer to Note 3 of our 2014 Form 10-K. | |
Teledyne’s goodwill was $1,133.7 million at March 29, 2015 and $1,150.6 million at December 28, 2014. The decrease in the balance of goodwill in 2015 resulted from the impact of exchange rate changes, partially offset by the Bowtech acquisition. Goodwill resulting from the Bowtech acquisition will not be deductible for tax purposes. Teledyne’s net acquired intangible assets were $264.8 million at March 29, 2015 and $277.6 million at December 28, 2014. The decrease in the balance of acquired intangible assets in 2015 resulted from amortization and the impact of exchange rate changes, partially offset by acquired intangibles for the Bowtech acquisition. The Company is still in the process of specifically identifying the amount to be assigned to certain assets, including acquired intangible assets, and liabilities and the related impact on taxes and goodwill for the Bowtech and Bolt acquisitions. The Company made preliminary estimates as of March 29, 2015 since there was insufficient time between the acquisition dates and the end of the period to finalize the analysis. |
Derivative_Instruments
Derivative Instruments | 3 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
Derivative Instruments | Derivative Instruments | |||||||||
Teledyne transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency risk. The Company’s primary foreign currency risk management objective is to protect the United States dollar value of future cash flows and minimize the volatility of reported earnings. The Company utilizes foreign currency forward contracts to reduce the volatility of cash flows primarily related to forecasted revenues and expenses denominated in Canadian dollars. These contracts are designated and qualify as cash flow hedges. | ||||||||||
Cash Flow Hedging Activities | ||||||||||
The effectiveness of the cash flow hedge contracts, excluding time value, is assessed prospectively and retrospectively on a monthly basis using regression analysis, as well as using other timing and probability criteria. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedges and must be highly effective in offsetting changes to future cash flows on hedged transactions. The effective portion of the cash flow hedge contracts’ gains or losses resulting from changes in the fair value of these hedges is initially reported, net of tax, as a component of AOCI in stockholders’ equity until the underlying hedged item is reflected in our consolidated statements of income, at which time the effective amount in AOCI is reclassified to cost of sales in our consolidated statements of income. Net deferred losses recorded in AOCI, net of tax, for contracts that will mature in the next twelve months total $4.4 million. These losses are expected to be offset by anticipated gains in the value of the forecasted underlying hedged item. | ||||||||||
In the event that the gains or losses in AOCI are deemed to be ineffective, the ineffective portion of gains or losses resulting from changes in fair value, if any, is reclassified to other income and expense. In the event that the underlying forecasted transactions do not occur, or it becomes remote that they will occur, within the defined hedge period, the gains or losses on the related cash flow hedges will be reclassified from AOCI to other income and expense. During the current reporting period, all forecasted transactions occurred and, therefore, there were no such gains or losses reclassified to other income and expense. As of March 29, 2015, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy Canadian dollars and to sell U.S. dollars totaling $61.0 million. These foreign currency forward contracts have maturities ranging from June 2015 to February 2016. | ||||||||||
Non-Designated Hedging Activities | ||||||||||
In addition, the Company utilizes foreign currency forward contracts to mitigate foreign exchange rate risk associated with foreign-currency-denominated monetary assets and liabilities, including intercompany receivables and payables. As of March 29, 2015, Teledyne had foreign currency contracts of this type in the following pairs (in millions): | ||||||||||
Contracts to Buy | Contracts to Sell | |||||||||
Currency | Amount | Currency | Amount | |||||||
Canadian Dollars | C$ | 79 | U.S. Dollars | US$ | 62.8 | |||||
Euros | € | 1.3 | Canadian Dollars | C$ | 1.8 | |||||
Euros | € | 19.6 | U.S. Dollars | US$ | 22 | |||||
Great Britain Pounds | £ | 0.9 | Australian Dollars | A$ | 1.8 | |||||
Great Britain Pounds | £ | 17.7 | U.S. Dollars | US$ | 26.7 | |||||
Singapore Dollars | S$ | 1.6 | U.S. Dollars | US$ | 1.2 | |||||
U.S. Dollars | US$ | 1.8 | Canadian Dollars | C$ | 2.2 | |||||
U.S. Dollars | US$ | 13.8 | Euros | € | 12.3 | |||||
U.S. Dollars | US$ | 6.8 | Great Britain Pounds | £ | 4.5 | |||||
U.S. Dollars | US$ | 0.8 | Japanese Yen | ¥ | 90.1 | |||||
The gains and losses on these derivatives which are not designated as hedging instruments are intended to, at a minimum, partially offset the transaction gains and losses recognized in earnings. All derivatives are recorded on the balance sheet at fair value. As discussed below, the accounting for gains and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. Teledyne does not use foreign currency forward contracts for speculative or trading purposes. | ||||||||||
The effect of derivative instruments designated as cash flow hedges in our condensed consolidated financial statements for the first quarter ended March 29, 2015 and March 30, 2014 was as follows (in millions): | ||||||||||
First Quarter | ||||||||||
2015 | 2014 | |||||||||
Net loss recognized in AOCI (a) | $ | (4.6 | ) | $ | (2.2 | ) | ||||
Net loss reclassified from AOCI into cost of sales (a) | $ | (1.4 | ) | $ | (0.9 | ) | ||||
Net foreign exchange gain recognized in other income and expense (b) | $ | 0.2 | $ | 0.1 | ||||||
a) Effective portion, pre-tax | ||||||||||
b) Amount excluded from effectiveness testing | ||||||||||
The effect of derivative instruments not designated as cash flow hedges recognized in other income and expense for the first quarter ended March 29, 2015 was $4.9 million and expense of $0.5 million for the quarter ended March 30, 2014. | ||||||||||
Fair Value 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 | 29-Mar-15 | 28-Dec-14 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Cash flow forward contracts | Accrued liabilities | $ | (7.0 | ) | $ | (3.9 | ) | |||
Total derivatives designated as hedging instruments | (7.0 | ) | (3.9 | ) | ||||||
Derivatives not designated as hedging instruments: | ||||||||||
Non-designated forward contracts | Other current assets | 1.1 | 0.3 | |||||||
Non-designated forward contracts | Accrued liabilities | (2.3 | ) | (4.8 | ) | |||||
Total derivatives not designated as hedging instruments | (1.2 | ) | (4.5 | ) | ||||||
Total asset (liability) derivatives | $ | (8.2 | ) | $ | (8.4 | ) |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | Earnings Per Share | |||||||
Basic and diluted earnings per share were computed based on net earnings. The weighted average number of common shares outstanding during the period was used in the calculation of basic earnings per share. This number of shares was increased by contingent shares that could be issued under various compensation plans as well as by the dilutive effect of stock options based on the treasury stock method in the calculation of diluted earnings per share. | ||||||||
In October 2011, the Company’s Board of Directors authorized a stock repurchase program to repurchase up to 2,500,000 shares of the Company’s common stock. In September 2014, the Company entered into a $101.6 million accelerated share repurchase (“ASR”) agreement with a financial institution (“ASR Counterparty”) in a privately negotiated transaction for 1,030,000 shares of the Company’s common stock at an initial price of $98.62 per share. Pursuant to the ASR agreement, in September 2014, the Company advanced $101.6 million to the ASR counterparty and received 927,000 shares of common stock, which used $91.4 million of the $101.6 million advanced, representing 90% of the estimated shares to be repurchased under the ASR agreement. | ||||||||
On January 27, 2015, Teledyne’s Board of Directors approved an additional stock repurchase program authorizing the Company to repurchase up to an additional 2,500,000 shares of its common stock. On February 2, 2015, the Company entered into a $142.0 million ASR agreement with a financial institution in a privately negotiated transaction for 1,500,000 shares of the Company's common stock under at an initial price of $94.68 per share. Pursuant to the ASR agreement, in February 2015, the Company advanced $142.0 million to the ASR counterparty and received 1,425,000 shares of common stock, which used $134.9 million of the $142.0 million advanced, representing 95% of the estimated shares to be repurchased under the ASR agreement. | ||||||||
The up-front payments were accounted for as a reduction to stockholders’ equity in the Company’s Condensed Consolidated Balance Sheet in the period the payments were made. The total number of shares of common stock that the Company will repurchase under each ASR will be based on the average of the daily volume-weighted average prices of the common stock during the term of the respective ASR, less a discount. At settlement, the ASR Counterparty may be required to deliver additional shares of the Company’s common stock to the Company or, under certain circumstances, the Company may be required to deliver shares of its common stock or make a cash payment to the ASR Counterparty. Final settlement of the September 2014 ASR agreement is expected to occur in June 2015, although the settlement may be accelerated at the ASR Counterparty’s option. Final settlement of the February 2015 ASR agreement is expected to occur in December 2015, although the settlement may be accelerated at the ASR Counterparty’s option. The Company has treated the ASR's as a treasury share repurchase of common stock in the period the shares are delivered for purposes of calculating earnings per share and as a forward contract indexed to its own common stock. The ASR's meet all of the applicable criteria for equity classification, and, therefore, is not accounted for as a derivative instrument. | ||||||||
The February 2015 ASR was funded by cash on hand and floating rate borrowings of $120.0 million under the $750 million credit facility. The 2011 and 2015 stock repurchase authorizations are expected to remain open continuously, and the number of shares purchased will depend on a variety of factors, such as share price, levels of cash and borrowing capacity available, alternative investment opportunities available immediately or longer-term, and other regulatory, market or economic conditions. Repurchases would be funded with cash on hand and borrowings under the company’s credit facility. Teledyne has 2,366,310 shares of treasury stock at March 29, 2015. | ||||||||
For the first three months of 2015 and 2014, no stock options were excluded in the computation of 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): | ||||||||
First Quarter | ||||||||
2015 | 2014 | |||||||
Net income attributable to Teledyne | $ | 43.7 | $ | 45.8 | ||||
Basic earnings per share: | ||||||||
Weighted average common shares outstanding | 35.7 | 37.5 | ||||||
Basic earnings per common share | $ | 1.22 | $ | 1.22 | ||||
Diluted earnings per share: | ||||||||
Weighted average common shares outstanding | 35.7 | 37.5 | ||||||
Dilutive effect of exercise of options outstanding | 0.8 | 0.8 | ||||||
Weighted average diluted common shares outstanding | 36.5 | 38.3 | ||||||
Diluted earnings per common share | $ | 1.2 | $ | 1.2 | ||||
StockBased_Compensation_Plans
Stock-Based Compensation Plans | 3 Months Ended | ||||||
Mar. 29, 2015 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Stock-Based Compensation Plans | Stock-Based Compensation Plans | ||||||
Teledyne has long-term incentive plans pursuant to which it has granted non-qualified stock options, restricted stock and performance shares to certain employees. The Company also has non-employee director stock compensation plans, pursuant to which non-qualified stock options and common stock, and beginning in 2015 restricted stock units, have been issued to its directors. | |||||||
Stock Incentive Plan | |||||||
The following disclosures are based on stock options granted to Teledyne’s employees and directors. The Company recorded a total of $3.8 million in stock option compensation expense for the first quarter of 2015 and $2.6 million for the first quarter of 2014. Employee stock option grants are charged to expense evenly over the three year vesting period. Director stock option grants are charged to expense evenly over the one-year vesting period. For 2015, the Company currently expects approximately $12.8 million in stock option compensation expense based on stock options already granted. This does not include any estimated expense for stock options that may be granted during the remainder of the year and can be impacted by employee retirements and terminations. The Company issues shares of common stock upon the exercise of stock options. | |||||||
The Company uses its historical stock price volatility on the Company stock to compute the expected volatility for purposes of valuing stock options issued. The period used for the historical stock price corresponded to the expected term of the options and was seven years, five months. The expected dividend yield is based on Teledyne’s practice of not paying dividends. The risk-free rate of return is based on the yield of U. S. Treasury Strips with terms equal to the expected life of the options as of the grant date. The expected life in years is based on historical actual stock option exercise experience. | |||||||
No stock options have been granted in 2015. The following assumptions were used in the valuation of stock options granted in 2014: | |||||||
2014 | |||||||
Expected dividend yield | — | ||||||
Expected volatility | 30.7 | % | |||||
Risk-free interest rate | 1.7 | % | |||||
Expected life in years | 7.4 | ||||||
Based on the assumptions in the table above, the grant date weighted average fair value of stock options granted in 2014 was $36.19. | |||||||
Stock option transactions for Teledyne’s employee stock option plans for the first quarter ended March 29, 2015 are summarized as follows: | |||||||
2015 | |||||||
First Quarter | |||||||
Shares | Weighted | ||||||
Average | |||||||
Exercise | |||||||
Price | |||||||
Beginning balance | 2,499,708 | $ | 63.85 | ||||
Exercised | (61,333 | ) | $ | 39.04 | |||
Canceled | (10,846 | ) | $ | 69.26 | |||
Ending balance | 2,427,529 | $ | 64.45 | ||||
Options exercisable at end of period | 1,413,872 | $ | 50.31 | ||||
Stock option transactions for Teledyne’s non-employee director stock option plans for the first quarter ended March 29, 2015 are summarized as follows: | |||||||
2015 | |||||||
First Quarter | |||||||
Shares | Weighted | ||||||
Average | |||||||
Exercise | |||||||
Price | |||||||
Beginning balance | 351,169 | $ | 51.76 | ||||
Exercised | (9,540 | ) | $ | 29.75 | |||
Ending balance | 341,629 | $ | 52.38 | ||||
Options exercisable at end of period | 304,052 | $ | 47.57 | ||||
Performance Share Plan and Restricted Stock Award Program | |||||||
For the first of three annual installments of the 2012 to 2014 Performance Share Plan, 1,944 shares of Teledyne common stock were issued in the first quarter of 2015. The remaining 8,309 shares are expected to be issued in approximately two equal annual installments. Also in the first quarter of 2015, the restriction was removed for 29,642 shares of Teledyne common stock and 7,662 shares were forfeited related to the 2012 to 2014 Restricted Stock Award Program. In the first three months of 2015, the Company granted 33,411 shares of restricted stock at a weighted average fair value of $100.80 per share. |
Cash_Equivalents
Cash Equivalents | 3 Months Ended |
Mar. 29, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash Equivalents | Cash Equivalents |
Cash equivalents consist of highly liquid money-market mutual funds and bank deposits with maturities of three months or less when purchased. There were no cash equivalents outstanding at March 29, 2015 or December 28, 2014. |
Inventories
Inventories | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories | |||||||
Inventories are stated at the lower of cost or market, less progress payments. Inventories are valued under the FIFO method, LIFO method and average cost method. Inventories at cost determined on the average cost or the FIFO methods were $247.0 million at March 29, 2015 and $241.8 million at December 28, 2014. The remainder of the inventories using the LIFO method were $103.5 million at March 29, 2015 and $98.1 million at December 28, 2014. Interim LIFO calculations are based on the Company’s estimates of expected year-end inventory levels and costs since an actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Because these are subject to many factors beyond the Company’s control, interim results are subject to the final year-end LIFO inventory valuation. Inventories consist of the following (in millions): | ||||||||
Balance at | 29-Mar-15 | 28-Dec-14 | ||||||
Raw materials and supplies | $ | 143.2 | $ | 143.1 | ||||
Work in process | 164.5 | 153.5 | ||||||
Finished goods | 42.8 | 43.3 | ||||||
350.5 | 339.9 | |||||||
Progress payments | (10.5 | ) | (11.6 | ) | ||||
LIFO reserve | (16.6 | ) | (16.5 | ) | ||||
Total inventories, net | $ | 323.4 | $ | 311.8 | ||||
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 3 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information | |||||||||
The following table presents the balance of selected components of Teledyne’s balance sheet (in millions): | ||||||||||
Balance sheet items | Balance sheet location | 29-Mar-15 | 28-Dec-14 | |||||||
Deferred tax assets | Prepaid expenses and other current assets | $ | 42 | $ | 42.8 | |||||
Income tax receivable | Prepaid expenses and other current assets | $ | 1.6 | $ | 13.6 | |||||
Deferred compensation assets | Other assets, net | $ | 50.7 | $ | 49.6 | |||||
Salaries and wages | Accrued liabilities | $ | 79.7 | $ | 108.7 | |||||
Customer deposits and credits | Accrued liabilities | $ | 47 | $ | 47.9 | |||||
Accrued pension obligation | Other long-term liabilities | $ | 13.5 | $ | 14.2 | |||||
Accrued postretirement benefits | Other long-term liabilities | $ | 11.3 | $ | 11.6 | |||||
Deferred compensation liabilities | Other long-term liabilities | $ | 47.1 | $ | 45.8 | |||||
Deferred tax liabilities | Other long-term liabilities | $ | 78.7 | $ | 77.3 | |||||
Some of the Company’s products are subject to specified warranties and the Company provides for the estimated cost of product warranties. The adequacy of the pre-existing warranty liabilities is assessed regularly and the reserve is adjusted as necessary based on a review of historic warranty experience with respect to the applicable business or products, as well as the length and actual terms of the warranties, which are typically one year. The product warranty reserve is included in current and long term accrued liabilities on the balance sheet. Changes in the Company’s product warranty reserve during the first three months of 2015 and 2014 are as follows (in millions): | ||||||||||
Three Months | ||||||||||
2015 | 2014 | |||||||||
Balance at beginning of year | $ | 18.5 | $ | 17.3 | ||||||
Accruals for product warranties charged to expense | 1.5 | 0.5 | ||||||||
Cost of product warranty claims | (2.1 | ) | (1.2 | ) | ||||||
Balance at end of period | $ | 17.9 | $ | 16.6 | ||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 29, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which the Company operates. However, losses in certain jurisdictions and discrete items, such as the resolution of uncertain tax positions, are treated separately. | |
The Company’s effective income tax rate for the first quarter of 2015 was 29.8% compared with 25.8% for the first quarter of 2014. The first quarter of 2015 included net tax expense for discrete items of $0.2 million compared with net tax benefits for discrete items of $2.3 million for the first quarter of 2014. The net tax benefits for the first quarter of 2014 included the remeasurement of uncertain tax positions due to a favorable resolution of a tax matter. Excluding net discrete tax items in both periods, the effective tax rates would have been 29.5% for both the first quarter of 2015 and 2014. |
LongTerm_Debt_and_Capital_Leas
Long-Term Debt and Capital Leases | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt and Capital Leases | Long-Term Debt and Capital Leases | |||||||
Long-term debt consisted of the following (in millions): | ||||||||
Balance at | March 29, 2015 | December 28, 2014 | ||||||
4.04% Senior Notes due September 2015 | $ | 75 | $ | 75 | ||||
4.74% Senior Notes due September 2017 | 100 | 100 | ||||||
2.61% Senior Notes due December 2019 | 30 | 30 | ||||||
5.30% Senior Notes due September 2020 | 75 | 75 | ||||||
3.09% Senior Notes due December 2021 | 95 | 95 | ||||||
Term loans due through March 2019, weighted average rate of 1.30% at March 29, 2015 and 1.28% at December 28, 2014 | 200 | 200 | ||||||
Other debt at various rates due through 2031 | 12.4 | 14.7 | ||||||
$750.0 million revolving credit facility due March 2018, weighted average rate of 1.27% at March 29, 2015 and 1.24% at December 28, 2014 | 233 | 105 | ||||||
Total debt | 820.4 | 694.7 | ||||||
Less: current portion of long-term debt | (86.3 | ) | (84.9 | ) | ||||
Total long-term debt | $ | 734.1 | $ | 609.8 | ||||
Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $502.5 million at March 29, 2015. The credit agreement requires the Company to comply with various financial and operating covenants and at March 29, 2015, the Company was in compliance with these covenants. | ||||||||
Teledyne estimates the fair value of its long-term debt based on debt of similar type, rating and maturity and at comparable interest rates. The Company’s long-term debt was considered a level 2 fair value hierarchy and is valued based on observable market data. The estimated fair value of Teledyne’s long-term debt at March 29, 2015 and December 28, 2014, approximated the carrying value. | ||||||||
At March 29, 2015, the Company had $9.6 million in capital leases, of which $1.2 million is current. At December 28, 2014, the Company had $10.4 million in capital leases, of which $1.3 million was current. At March 29, 2015, Teledyne had $16.7 million in outstanding letters of credit. |
Lawsuits_Claims_Commitments_Co
Lawsuits, Claims, Commitments, Contingencies and Related Matters | 3 Months Ended |
Mar. 29, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lawsuits, Claims, Commitments, Contingencies and Related Matters | Lawsuits, Claims, Commitments, Contingencies and Related Matters |
For a further description of the Company’s commitments and contingencies, reference is made to Note 15 of the Company’s financial statements as of and for the fiscal year ended December 28, 2014, included in our 2014 Form 10-K. | |
At March 29, 2015, the Company’s reserves for environmental remediation obligations totaled $9.5 million, of which $5.1 million is included in current accrued liabilities. The Company periodically evaluates whether it may be able to recover a portion of future costs for environmental liabilities from its insurance carriers and from third parties. The timing of expenditures depends on a number of factors that vary by site, including the nature and extent of contamination, the number of potentially responsible parties, the timing of regulatory approvals, the complexity of the investigation and remediation, and the standards for remediation. The Company expects that it will expend present accruals over many years and will complete remediation of all sites with which it has been identified in up to 30 years. | |
A number of other lawsuits, claims and proceedings have been or may be asserted against the Company, including those pertaining to product liability, acquisitions, patent infringement, commercial contracts, environmental, employment and employee benefits matters. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition. The resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s results of operations for that period. |
Pension_Plans_and_Postretireme
Pension Plans and Postretirement Benefits | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Pension Plans and Postretirement Benefits | Pension Plans and Postretirement Benefits | |||||||
Teledyne’s pension income was $0.2 million for the first quarter of 2015, compared with pension income of $0.3 million for the first quarter of 2014. In the first quarter of 2015, Teledyne froze its non-qualified pension plan for top executives which resulted in a one-time gain of $1.2 million in the first quarter of 2015. For the domestic pension plan, the discount rate decreased to 4.5 percent in 2015 compared with a 5.4 percent discount rate used in 2014. Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (“CAS”) was $3.5 million for both the first quarter of 2015 and the first quarter of 2014. Pension expense determined under CAS can generally be recovered through the pricing of products and services sold to the U.S. Government. Teledyne did not make any cash pension contributions to its domestic pension plan in the first three months of 2015 or in 2014. No cash pension contributions are planned for 2015 for the domestic pension plan. | ||||||||
The Company sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees. The following tables set forth the components of net income/expense for Teledyne’s pension plans and postretirement benefit plans for the first quarter of 2015 and 2014 (in millions): | ||||||||
First Quarter | ||||||||
Pension Benefits | 2015 | 2014 | ||||||
Service cost — benefits earned during the period | $ | 3.3 | $ | 3.1 | ||||
Interest cost on benefit obligation | 9.9 | 10.7 | ||||||
Expected return on plan assets | (19.2 | ) | (19.1 | ) | ||||
Amortization of prior service cost | (1.5 | ) | (1.2 | ) | ||||
Amortization of net actuarial loss | 8.5 | 6.2 | ||||||
Pension plan curtailment | (1.2 | ) | — | |||||
Net income | $ | (0.2 | ) | $ | (0.3 | ) | ||
First Quarter | ||||||||
Postretirement Benefits | 2015 | 2014 | ||||||
Interest cost on benefit obligation | $ | 0.1 | $ | 0.2 | ||||
Amortization of prior service cost | — | (0.1 | ) | |||||
Amortization of net actuarial gain | — | (0.1 | ) | |||||
Net expense | $ | 0.1 | $ | — | ||||
Industry_Segments
Industry Segments | 3 Months Ended | ||||||||||
Mar. 29, 2015 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Industry Segments | 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 equipment for marine, environmental, scientific, industrial and defense applications, electronic test and measurement instruments and harsh environment interconnect products. The Digital Imaging segment includes high performance sensors, cameras and systems, within the visible, infrared and X-ray spectra, for use in industrial, government and medical applications, as well as micro electro-mechanical systems. It also includes our sponsored and centralized research laboratories benefiting government programs and businesses. The Aerospace and Defense Electronics segment provides sophisticated electronic components and subsystems and communications products, including defense electronics, harsh environment interconnects, data acquisition and communications equipment for 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 for defense, space, environmental and energy applications. The Engineered Systems segment also designs and manufactures electrochemical energy systems and small turbine engines. | |||||||||||
Segment results include net sales and operating profit by segment but excludes noncontrolling interest, 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. | |||||||||||
The following table presents Teledyne’s interim industry segment disclosures. The table also provides a reconciliation of segment operating profit to total net income attributable to Teledyne (dollars in millions): | |||||||||||
First Quarter | % | ||||||||||
2015 | 2014 | Change | |||||||||
Net sales: | |||||||||||
Instrumentation | $ | 270.3 | $ | 258.9 | 4.4 | % | |||||
Digital Imaging | 90.4 | 101.9 | (11.3 | )% | |||||||
Aerospace and Defense Electronics | 141.2 | 153.3 | (7.9 | )% | |||||||
Engineered Systems | 63.1 | 59.4 | 6.2 | % | |||||||
Total net sales | $ | 565 | $ | 573.5 | (1.5 | )% | |||||
Segment operating profit: | |||||||||||
Instrumentation | $ | 42.1 | $ | 37.5 | 12.3 | % | |||||
Digital Imaging | 9.3 | 9.7 | (4.1 | )% | |||||||
Aerospace and Defense Electronics | 19.4 | 23.8 | (18.5 | )% | |||||||
Engineered Systems | 6.7 | 6.1 | 9.8 | % | |||||||
Total segment operating profit | 77.5 | 77.1 | 0.5 | % | |||||||
Corporate expense | (10.2 | ) | (11.1 | ) | (8.1 | )% | |||||
Operating income | 67.3 | 66 | 2 | % | |||||||
Interest and debt expense, net | (5.9 | ) | (4.7 | ) | 25.5 | % | |||||
Other income, net | 0.8 | 0.6 | 33.3 | % | |||||||
Income before income taxes | 62.2 | 61.9 | 0.5 | % | |||||||
Provision for income taxes | 18.5 | 15.9 | 16.4 | % | |||||||
Net income | 43.7 | 46 | (5.0 | )% | |||||||
Noncontrolling interest | — | (0.2 | ) | * | |||||||
Net income attributable to Teledyne | $ | 43.7 | $ | 45.8 | (4.6 | )% | |||||
* not meaningful | |||||||||||
Product Lines | |||||||||||
The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement 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 following tables provide a summary of the sales by product line for the Instrumentation segment and the Engineered Systems segment (in millions): | |||||||||||
First Quarter | |||||||||||
Instrumentation | 2015 | 2014 | |||||||||
Marine Instrumentation | $ | 159.5 | $ | 150.6 | |||||||
Environmental Instrumentation | 67.7 | 61.3 | |||||||||
Test and Measurement Instrumentation | 43.1 | 47 | |||||||||
Total | $ | 270.3 | $ | 258.9 | |||||||
First Quarter | |||||||||||
Engineered Systems | 2015 | 2014 | |||||||||
Engineered Products and Services | $ | 49.1 | $ | 47.6 | |||||||
Turbine Engines | 5.6 | 6.1 | |||||||||
Energy Systems | 8.4 | 5.7 | |||||||||
Total | $ | 63.1 | $ | 59.4 | |||||||
Subsequent_Event
Subsequent Event | 3 Months Ended |
Mar. 29, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
On April 29, 2015, Teledyne DALSA, Inc. acquired the remaining 49% minority interest in the parent company of Optech Incorporated for CAD$26.5 million. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared by Teledyne Technologies Incorporated (“Teledyne” or the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in notes to consolidated financial statements have been condensed or omitted pursuant to such rules and regulations, but resultant disclosures are in accordance with accounting principles generally accepted in the United States as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto in Teledyne’s Annual Report on Form 10-K for the fiscal year ended December 28, 2014 (“2014 Form 10-K”). | |
In the opinion of Teledyne’s management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, Teledyne’s consolidated financial position as of March 29, 2015 and the consolidated results of operations and consolidated comprehensive income and consolidated cash flows for the three months then ended. The results of operations and cash flows for the period ended March 29, 2015 are not necessarily indicative of the results of operations or cash flows to be expected for any subsequent quarter or the full fiscal year. Certain prior year amounts have been reclassified to conform to the current period presentation. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-02, “Amendments to the Consolidation Analysis” which changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination, and (5) certain investment funds. The new guidance will be effective for the Company’s 2016 fiscal year and subsequent interim periods. The adoption of the guidance is not expected to have a material effect on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. This new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption, with early application not permitted. In March 2015, the FASB voted to defer the effective date by one year, but allow early adoption as of the original adoption date. This proposed delay is subject to the board's normal due diligence process, including a public comment period. The Company is currently in the process of determining its implementation approach and assessing the impact on the consolidated financial statements and footnote disclosures. |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||
Mar. 29, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Changes in AOCI by Component | Note 2. Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
The changes in accumulated other comprehensive income (“AOCI”) by component, net of tax, for the first quarter and March 29, 2015 and March 30, 2014 are as follows (in millions): | ||||||||||||||||
Foreign Currency Translation | Cash Flow Hedges | Pension and Postretirement Benefits | Total | |||||||||||||
Balance as of December 28, 2014 | $ | (90.6 | ) | $ | (5.3 | ) | $ | (227.3 | ) | $ | (323.2 | ) | ||||
Other comprehensive loss before reclassifications | (49.2 | ) | (3.4 | ) | — | (52.6 | ) | |||||||||
Amounts reclassified from AOCI | — | 1.1 | 4.9 | 6 | ||||||||||||
Net other comprehensive income (loss) | (49.2 | ) | (2.3 | ) | 4.9 | (46.6 | ) | |||||||||
Balance as of March 29, 2015 | $ | (139.8 | ) | $ | (7.6 | ) | $ | (222.4 | ) | $ | (369.8 | ) | ||||
Foreign Currency Translation | Cash Flow Hedges | Pension and Postretirement Benefits | Total | |||||||||||||
Balance as of December 29, 2013 | $ | (32.4 | ) | $ | (3.3 | ) | $ | (129.8 | ) | $ | (165.5 | ) | ||||
Other comprehensive income (loss) before reclassifications | (9.4 | ) | (1.6 | ) | — | (11.0 | ) | |||||||||
Amounts reclassified from AOCI | — | 0.6 | 2.9 | 3.5 | ||||||||||||
Net other comprehensive income (loss) | (9.4 | ) | (1.0 | ) | 2.9 | (7.5 | ) | |||||||||
Balance as of March 30, 2014 | $ | (41.8 | ) | $ | (4.3 | ) | $ | (126.9 | ) | $ | (173.0 | ) | ||||
The reclassifications out of AOCI for the first quarter and ended March 29, 2015 and March 30, 2014 are as follows (in millions): | ||||||||||||||||
Amount Reclassified from AOCI Three Months Ended | Amount Reclassified from AOCI Three Months Ended | Statement of Income | ||||||||||||||
29-Mar-15 | March 30, 2014 | Presentation | ||||||||||||||
Loss on cash flow hedges: | ||||||||||||||||
Loss recognized in income on derivatives | $ | 1.4 | $ | 0.9 | Other expense | |||||||||||
Income tax benefit | (0.3 | ) | (0.3 | ) | Income tax benefit | |||||||||||
Total | $ | 1.1 | $ | 0.6 | ||||||||||||
Amortization of defined benefit pension and postretirement plan items: | ||||||||||||||||
Amortization of prior service cost | $ | (1.5 | ) | $ | (1.1 | ) | Pension expense | |||||||||
Amortization of net actuarial loss | 9 | 5.9 | Pension expense | |||||||||||||
Total before tax | 7.5 | 4.8 | ||||||||||||||
Income tax benefit | (2.6 | ) | (1.9 | ) | Income tax benefit | |||||||||||
Total | $ | 4.9 | $ | 2.9 | ||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||
Schedule of Notional Amounts of Outstanding Foreign Currency Contracts | As of March 29, 2015, Teledyne 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 | C$ | 79 | U.S. Dollars | US$ | 62.8 | |||||
Euros | € | 1.3 | Canadian Dollars | C$ | 1.8 | |||||
Euros | € | 19.6 | U.S. Dollars | US$ | 22 | |||||
Great Britain Pounds | £ | 0.9 | Australian Dollars | A$ | 1.8 | |||||
Great Britain Pounds | £ | 17.7 | U.S. Dollars | US$ | 26.7 | |||||
Singapore Dollars | S$ | 1.6 | U.S. Dollars | US$ | 1.2 | |||||
U.S. Dollars | US$ | 1.8 | Canadian Dollars | C$ | 2.2 | |||||
U.S. Dollars | US$ | 13.8 | Euros | € | 12.3 | |||||
U.S. Dollars | US$ | 6.8 | Great Britain Pounds | £ | 4.5 | |||||
U.S. Dollars | US$ | 0.8 | Japanese Yen | ¥ | 90.1 | |||||
Effect of Derivative Instruments Designated as Cash Flow Hedges | The effect of derivative instruments designated as cash flow hedges in our condensed consolidated financial statements for the first quarter ended March 29, 2015 and March 30, 2014 was as follows (in millions): | |||||||||
First Quarter | ||||||||||
2015 | 2014 | |||||||||
Net loss recognized in AOCI (a) | $ | (4.6 | ) | $ | (2.2 | ) | ||||
Net loss reclassified from AOCI into cost of sales (a) | $ | (1.4 | ) | $ | (0.9 | ) | ||||
Net foreign exchange gain recognized in other income and expense (b) | $ | 0.2 | $ | 0.1 | ||||||
a) Effective portion, pre-tax | ||||||||||
b) Amount excluded from effectiveness testing | ||||||||||
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 | 29-Mar-15 | 28-Dec-14 | |||||||
Derivatives designated as hedging instruments: | ||||||||||
Cash flow forward contracts | Accrued liabilities | $ | (7.0 | ) | $ | (3.9 | ) | |||
Total derivatives designated as hedging instruments | (7.0 | ) | (3.9 | ) | ||||||
Derivatives not designated as hedging instruments: | ||||||||||
Non-designated forward contracts | Other current assets | 1.1 | 0.3 | |||||||
Non-designated forward contracts | Accrued liabilities | (2.3 | ) | (4.8 | ) | |||||
Total derivatives not designated as hedging instruments | (1.2 | ) | (4.5 | ) | ||||||
Total asset (liability) derivatives | $ | (8.2 | ) | $ | (8.4 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
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): | |||||||
First Quarter | ||||||||
2015 | 2014 | |||||||
Net income attributable to Teledyne | $ | 43.7 | $ | 45.8 | ||||
Basic earnings per share: | ||||||||
Weighted average common shares outstanding | 35.7 | 37.5 | ||||||
Basic earnings per common share | $ | 1.22 | $ | 1.22 | ||||
Diluted earnings per share: | ||||||||
Weighted average common shares outstanding | 35.7 | 37.5 | ||||||
Dilutive effect of exercise of options outstanding | 0.8 | 0.8 | ||||||
Weighted average diluted common shares outstanding | 36.5 | 38.3 | ||||||
Diluted earnings per common share | $ | 1.2 | $ | 1.2 | ||||
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Tables) | 3 Months Ended | ||||||
Mar. 29, 2015 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Valuation of Stock Options Granted | The following assumptions were used in the valuation of stock options granted in 2014: | ||||||
2014 | |||||||
Expected dividend yield | — | ||||||
Expected volatility | 30.7 | % | |||||
Risk-free interest rate | 1.7 | % | |||||
Expected life in years | 7.4 | ||||||
Stock Option Transactions for Employee Stock Option Plans | Stock option transactions for Teledyne’s employee stock option plans for the first quarter ended March 29, 2015 are summarized as follows: | ||||||
2015 | |||||||
First Quarter | |||||||
Shares | Weighted | ||||||
Average | |||||||
Exercise | |||||||
Price | |||||||
Beginning balance | 2,499,708 | $ | 63.85 | ||||
Exercised | (61,333 | ) | $ | 39.04 | |||
Canceled | (10,846 | ) | $ | 69.26 | |||
Ending balance | 2,427,529 | $ | 64.45 | ||||
Options exercisable at end of period | 1,413,872 | $ | 50.31 | ||||
Stock Option Transactions for Non-Employee Stock Option Plans | Stock option transactions for Teledyne’s non-employee director stock option plans for the first quarter ended March 29, 2015 are summarized as follows: | ||||||
2015 | |||||||
First Quarter | |||||||
Shares | Weighted | ||||||
Average | |||||||
Exercise | |||||||
Price | |||||||
Beginning balance | 351,169 | $ | 51.76 | ||||
Exercised | (9,540 | ) | $ | 29.75 | |||
Ending balance | 341,629 | $ | 52.38 | ||||
Options exercisable at end of period | 304,052 | $ | 47.57 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories | Inventories consist of the following (in millions): | |||||||
Balance at | 29-Mar-15 | 28-Dec-14 | ||||||
Raw materials and supplies | $ | 143.2 | $ | 143.1 | ||||
Work in process | 164.5 | 153.5 | ||||||
Finished goods | 42.8 | 43.3 | ||||||
350.5 | 339.9 | |||||||
Progress payments | (10.5 | ) | (11.6 | ) | ||||
LIFO reserve | (16.6 | ) | (16.5 | ) | ||||
Total inventories, net | $ | 323.4 | $ | 311.8 | ||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 3 Months Ended | |||||||||
Mar. 29, 2015 | ||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||
Selected Components of Balance Sheet | The following table presents the balance of selected components of Teledyne’s balance sheet (in millions): | |||||||||
Balance sheet items | Balance sheet location | 29-Mar-15 | 28-Dec-14 | |||||||
Deferred tax assets | Prepaid expenses and other current assets | $ | 42 | $ | 42.8 | |||||
Income tax receivable | Prepaid expenses and other current assets | $ | 1.6 | $ | 13.6 | |||||
Deferred compensation assets | Other assets, net | $ | 50.7 | $ | 49.6 | |||||
Salaries and wages | Accrued liabilities | $ | 79.7 | $ | 108.7 | |||||
Customer deposits and credits | Accrued liabilities | $ | 47 | $ | 47.9 | |||||
Accrued pension obligation | Other long-term liabilities | $ | 13.5 | $ | 14.2 | |||||
Accrued postretirement benefits | Other long-term liabilities | $ | 11.3 | $ | 11.6 | |||||
Deferred compensation liabilities | Other long-term liabilities | $ | 47.1 | $ | 45.8 | |||||
Deferred tax liabilities | Other long-term liabilities | $ | 78.7 | $ | 77.3 | |||||
Company's Product Warranty Reserve | Changes in the Company’s product warranty reserve during the first three months of 2015 and 2014 are as follows (in millions): | |||||||||
Three Months | ||||||||||
2015 | 2014 | |||||||||
Balance at beginning of year | $ | 18.5 | $ | 17.3 | ||||||
Accruals for product warranties charged to expense | 1.5 | 0.5 | ||||||||
Cost of product warranty claims | (2.1 | ) | (1.2 | ) | ||||||
Balance at end of period | $ | 17.9 | $ | 16.6 | ||||||
LongTerm_Debt_and_Capital_Leas1
Long-Term Debt and Capital Leases (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Summary of Long-Term Debt | Long-term debt consisted of the following (in millions): | |||||||
Balance at | March 29, 2015 | December 28, 2014 | ||||||
4.04% Senior Notes due September 2015 | $ | 75 | $ | 75 | ||||
4.74% Senior Notes due September 2017 | 100 | 100 | ||||||
2.61% Senior Notes due December 2019 | 30 | 30 | ||||||
5.30% Senior Notes due September 2020 | 75 | 75 | ||||||
3.09% Senior Notes due December 2021 | 95 | 95 | ||||||
Term loans due through March 2019, weighted average rate of 1.30% at March 29, 2015 and 1.28% at December 28, 2014 | 200 | 200 | ||||||
Other debt at various rates due through 2031 | 12.4 | 14.7 | ||||||
$750.0 million revolving credit facility due March 2018, weighted average rate of 1.27% at March 29, 2015 and 1.24% at December 28, 2014 | 233 | 105 | ||||||
Total debt | 820.4 | 694.7 | ||||||
Less: current portion of long-term debt | (86.3 | ) | (84.9 | ) | ||||
Total long-term debt | $ | 734.1 | $ | 609.8 | ||||
Pension_Plans_and_Postretireme1
Pension Plans and Postretirement Benefits (Tables) | 3 Months Ended | |||||||
Mar. 29, 2015 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Defined Benefit Pension Plans and Postretirement Benefit Plans | The following tables set forth the components of net income/expense for Teledyne’s pension plans and postretirement benefit plans for the first quarter of 2015 and 2014 (in millions): | |||||||
First Quarter | ||||||||
Pension Benefits | 2015 | 2014 | ||||||
Service cost — benefits earned during the period | $ | 3.3 | $ | 3.1 | ||||
Interest cost on benefit obligation | 9.9 | 10.7 | ||||||
Expected return on plan assets | (19.2 | ) | (19.1 | ) | ||||
Amortization of prior service cost | (1.5 | ) | (1.2 | ) | ||||
Amortization of net actuarial loss | 8.5 | 6.2 | ||||||
Pension plan curtailment | (1.2 | ) | — | |||||
Net income | $ | (0.2 | ) | $ | (0.3 | ) | ||
First Quarter | ||||||||
Postretirement Benefits | 2015 | 2014 | ||||||
Interest cost on benefit obligation | $ | 0.1 | $ | 0.2 | ||||
Amortization of prior service cost | — | (0.1 | ) | |||||
Amortization of net actuarial gain | — | (0.1 | ) | |||||
Net expense | $ | 0.1 | $ | — | ||||
Industry_Segments_Tables
Industry Segments (Tables) | 3 Months Ended | ||||||||||
Mar. 29, 2015 | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Industry Segment Disclosures for Net Sales and Operating Profit Including Other Segment Income | The following table presents Teledyne’s interim industry segment disclosures. The table also provides a reconciliation of segment operating profit to total net income attributable to Teledyne (dollars in millions): | ||||||||||
First Quarter | % | ||||||||||
2015 | 2014 | Change | |||||||||
Net sales: | |||||||||||
Instrumentation | $ | 270.3 | $ | 258.9 | 4.4 | % | |||||
Digital Imaging | 90.4 | 101.9 | (11.3 | )% | |||||||
Aerospace and Defense Electronics | 141.2 | 153.3 | (7.9 | )% | |||||||
Engineered Systems | 63.1 | 59.4 | 6.2 | % | |||||||
Total net sales | $ | 565 | $ | 573.5 | (1.5 | )% | |||||
Segment operating profit: | |||||||||||
Instrumentation | $ | 42.1 | $ | 37.5 | 12.3 | % | |||||
Digital Imaging | 9.3 | 9.7 | (4.1 | )% | |||||||
Aerospace and Defense Electronics | 19.4 | 23.8 | (18.5 | )% | |||||||
Engineered Systems | 6.7 | 6.1 | 9.8 | % | |||||||
Total segment operating profit | 77.5 | 77.1 | 0.5 | % | |||||||
Corporate expense | (10.2 | ) | (11.1 | ) | (8.1 | )% | |||||
Operating income | 67.3 | 66 | 2 | % | |||||||
Interest and debt expense, net | (5.9 | ) | (4.7 | ) | 25.5 | % | |||||
Other income, net | 0.8 | 0.6 | 33.3 | % | |||||||
Income before income taxes | 62.2 | 61.9 | 0.5 | % | |||||||
Provision for income taxes | 18.5 | 15.9 | 16.4 | % | |||||||
Net income | 43.7 | 46 | (5.0 | )% | |||||||
Noncontrolling interest | — | (0.2 | ) | * | |||||||
Net income attributable to Teledyne | $ | 43.7 | $ | 45.8 | (4.6 | )% | |||||
* not meaningful | |||||||||||
Summary of the sales by product line | The following tables provide a summary of the sales by product line for the Instrumentation segment and the Engineered Systems segment (in millions): | ||||||||||
First Quarter | |||||||||||
Instrumentation | 2015 | 2014 | |||||||||
Marine Instrumentation | $ | 159.5 | $ | 150.6 | |||||||
Environmental Instrumentation | 67.7 | 61.3 | |||||||||
Test and Measurement Instrumentation | 43.1 | 47 | |||||||||
Total | $ | 270.3 | $ | 258.9 | |||||||
First Quarter | |||||||||||
Engineered Systems | 2015 | 2014 | |||||||||
Engineered Products and Services | $ | 49.1 | $ | 47.6 | |||||||
Turbine Engines | 5.6 | 6.1 | |||||||||
Energy Systems | 8.4 | 5.7 | |||||||||
Total | $ | 63.1 | $ | 59.4 | |||||||
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Changes in AOCI by Component) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning | ($323.20) | ($165.50) |
Other comprehensive loss before reclassifications | -52.6 | -11 |
Amounts reclassified from AOCI | 6 | 3.5 |
Other comprehensive income (loss) | -46.6 | -7.5 |
Balance, end | -369.8 | -173 |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning | -90.6 | -32.4 |
Other comprehensive loss before reclassifications | -49.2 | -9.4 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income (loss) | -49.2 | -9.4 |
Balance, end | -139.8 | -41.8 |
Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning | -5.3 | -3.3 |
Other comprehensive loss before reclassifications | -3.4 | -1.6 |
Amounts reclassified from AOCI | 1.1 | 0.6 |
Other comprehensive income (loss) | -2.3 | -1 |
Balance, end | -7.6 | -4.3 |
Pension and Postretirement Benefits | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance, beginning | -227.3 | -129.8 |
Other comprehensive loss before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 4.9 | 2.9 |
Other comprehensive income (loss) | 4.9 | 2.9 |
Balance, end | ($222.40) | ($126.90) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassifications Out of Accumulated OCI) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other expense | ($0.80) | ($0.60) |
Income tax benefit | 18.5 | 15.9 |
Amount Reclassified from AOCI | Cash Flow Hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other expense | 1.4 | 0.9 |
Income tax benefit | -0.3 | -0.3 |
Net of tax | 1.1 | 0.6 |
Amount Reclassified from AOCI | Pension and Postretirement Benefits | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Income tax benefit | -2.6 | -1.9 |
Amortization of defined benefit pension and postretirement plan items: | ||
Amortization of prior service cost | -1.5 | -1.1 |
Amortization of net actuarial loss | 9 | 5.9 |
Total before tax | 7.5 | 4.8 |
Total | $4.90 | $2.90 |
Business_Combinations_and_Inve1
Business Combinations and Investments, Goodwill and Acquired Intangible Assets (Details) | Mar. 29, 2015 | Dec. 28, 2014 | Feb. 02, 2015 | Feb. 02, 2015 |
In Millions, unless otherwise specified | USD ($) | USD ($) | Bowtech Products Limited | Subsidiaries |
GBP (£) | Bowtech Products Limited | |||
USD ($) | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire businesses, gross | $18.80 | |||
Revenue reported by acquired entity for last annual period | 6.6 | |||
Goodwill | 1,133.70 | 1,150.60 | ||
Acquired intangibles, net | $264.80 | $277.60 |
Derivative_Instruments_Foreign
Derivative Instruments (Foreign Currency Contracts) (Details) | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 | Mar. 29, 2015 |
In Millions, unless otherwise specified | USD ($) | Sell US Dollars and Buy Canadian Dollars | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Long | Long | Long | Long | Long | Long | Long | Long | Long | Long | Short | Short | Short | Short | Short | Short | Short | Short | Short | Short |
USD ($) | USD ($) | USD ($) | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | ||
Sell US Dollars and Buy Canadian Dollars | Sell Canadian Dollars and Buy Euros | Sell US Dollars and Buy Euros | Sell Australian Dollars and Buy Great Britain Pounds | Sell US Dollars and Buy Great Britain Pounds | Sell US Dollars and Buy Singapore Dollars | Sell Canadian Dollars and Buy US Dollars | Sell Euros and Buy US Dollars | Sell Great Britain Pounds and Buy US Dollars | Sell Japanese Yen and Buy US Dollars | Sell US Dollars and Buy Canadian Dollars | Sell Canadian Dollars and Buy Euros | Sell US Dollars and Buy Euros | Sell Australian Dollars and Buy Great Britain Pounds | Sell US Dollars and Buy Great Britain Pounds | Sell US Dollars and Buy Singapore Dollars | Sell Canadian Dollars and Buy US Dollars | Sell Euros and Buy US Dollars | Sell Great Britain Pounds and Buy US Dollars | Sell Japanese Yen and Buy US Dollars | |||||
CAD | EUR (€) | EUR (€) | GBP (£) | GBP (£) | SGD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | AUD | USD ($) | USD ($) | CAD | EUR (€) | GBP (£) | JPY (¥) | |||||
Derivative Instruments (Textual) [Abstract] | ||||||||||||||||||||||||
Expected reclassification of gain (loss) over the next 12 months | $4.40 | |||||||||||||||||||||||
Amount of foreign currency contract | 61 | 79 | 1.3 | 19.6 | 0.9 | 17.7 | 1.6 | 1.8 | 13.8 | 6.8 | 0.8 | 62.8 | 1.8 | 22 | 1.8 | 26.7 | 1.2 | 2.2 | 12.3 | 4.5 | 90.1 | |||
Effect of derivative instruments not designated as cash flow hedges recognized in other income and expense | $4.90 | $0.50 |
Derivative_Instruments_Effect_
Derivative Instruments (Effect of Derivative Instruments) (Details) (Cash Flow Hedging, USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | ||
Cash Flow Hedging | ||||
Effect of derivative instruments designated as cash flow hedges | ||||
Net loss recognized in AOCI (a) | ($4.60) | [1] | ($2.20) | [1] |
Net loss reclassified from AOCI into cost of sales (a) | -1.4 | [1] | -0.9 | [1] |
Net foreign exchange gain recognized in other income and expense (b) | $0.20 | [2] | $0.10 | [2] |
[1] | Effective portion, pre-tax | |||
[2] | Amount excluded from effectiveness testing |
Derivative_Instruments_Fair_Va
Derivative Instruments (Fair Values of Instruments) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Fair values of derivative financial instruments | ||
Total asset/(liability) derivatives | ($8.20) | ($8.40) |
Designated as Hedging Instrument | ||
Fair values of derivative financial instruments | ||
Total asset/(liability) derivatives | -7 | -3.9 |
Not Designated as Hedging Instrument | ||
Fair values of derivative financial instruments | ||
Total asset/(liability) derivatives | -1.2 | -4.5 |
Foreign Exchange Contract | Designated as Hedging Instrument | Accrued liabilities | ||
Fair values of derivative financial instruments | ||
Total asset/(liability) derivatives | -7 | -3.9 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Accrued liabilities | ||
Fair values of derivative financial instruments | ||
Total asset/(liability) derivatives | -2.3 | -4.8 |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other current assets | ||
Fair values of derivative financial instruments | ||
Total asset/(liability) derivatives | $1.10 | $0.30 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Feb. 02, 2015 | Sep. 28, 2014 | Feb. 28, 2015 | Jan. 27, 2015 |
Equity, Class of Treasury Stock [Line Items] | ||||||
Payments for repurchase of common stock | $142 | $23.60 | ||||
Line of credit facility, current borrowing capacity | 750 | |||||
Treasury stock, shares | 2,366,310 | |||||
Stock options excluded in computation of diluted earnings per share (in shares) | 0 | |||||
Computation of Basic and Diluted Earnings Per Share | ||||||
Net income attributable to Teledyne | 43.7 | 45.8 | ||||
Basic earnings per share: | ||||||
Weighted average common shares outstanding (in shares) | 35,700,000 | 37,500,000 | ||||
Basic earnings per common share (in USD per share) | $1.22 | $1.22 | ||||
Diluted earnings per share: | ||||||
Weighted average common shares outstanding (in shares) | 35,700,000 | 37,500,000 | ||||
Dilutive effect of exercise of options outstanding (in shares) | 800,000 | 800,000 | ||||
Weighted average diluted common shares outstanding (in shares) | 36,500,000 | 38,300,000 | ||||
Diluted earnings per common share (in USD per share) | $1.20 | $1.20 | ||||
Accelerated share repurchase agreement | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | 142 | 101.6 | ||||
Stock repurchase program, authorized amount to be repurchased (in shares) | 1,500,000 | 1,030,000 | 2,500,000 | |||
Treasury stock acquired, average cost (per share) | $94.68 | $98.62 | ||||
Treasury stock acquired (in shares) | 1,425,000 | 927,000 | ||||
Payments for repurchase of common stock | 134.9 | 91.4 | ||||
Percentage of shares repurchased | 90.00% | |||||
Percentage of shares repurchased | 95.00% | |||||
Accelerated share repurchase agreement | Revolving Credit Facility | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Payments for repurchase of common stock | $120 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation expense | $3.80 | $2.60 | |
Expected stock option compensation expense | $12.80 | ||
Period of historical stock price corresponded to the expected term of the option | 7 years 5 months | ||
Options granted in the period, gross | 0 | ||
Grant date fair value of stock options granted (dollars per share) | $36.19 | ||
Removal of restrictions from stock of restricted stock performance period | 29,642 | ||
Forfeited shares related to restricted stock performance period | 7,662 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares issued | 1,944 | ||
Number of annual performance share plan installments | 3 | ||
Shares expected to be issued in two equal installments | 8,309 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 33,411 | ||
Weighted average fair value | $100.80 | ||
Employee | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period over which employee stock option grants are evenly expensed | 3 years | ||
Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period over which employee stock option grants are evenly expensed | 1 year |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Fair Value Assumptions) (Details) (Stock Options) | 3 Months Ended |
Mar. 30, 2014 | |
Stock Options | |
Valuation of stock options granted | |
Expected dividend yield | 0.00% |
Expected volatility | 30.70% |
Risk-free interest rate | 1.70% |
Expected life in years | 7 years 5 months 0 days |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Options Plans) (Details) (USD $) | 3 Months Ended |
Mar. 29, 2015 | |
Stock Options | |
Shares | |
Beginning balance, Shares | 2,499,708 |
Exercised, Shares | -61,333 |
Canceled or expired, Shares | -10,846 |
Ending balance, Shares | 2,427,529 |
Options exercisable at end of period, Shares | 1,413,872 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Beginning balance (in USD per share) | $63.85 |
Weighted Average Exercise Price, Exercised (in USD per share) | $39.04 |
Weighted Average Exercise Price, Canceled or expired (in USD per share) | $69.26 |
Weighted Average Exercise Price, Ending Balance (in USD per share) | $64.45 |
Weighted Average Exercise Price, Options exercisable at end of period (in USD per share) | $50.31 |
Non-Employee Stock Option Plan | |
Shares | |
Beginning balance, Shares | 351,169 |
Exercised, Shares | -9,540 |
Ending balance, Shares | 341,629 |
Options exercisable at end of period, Shares | 304,052 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Beginning balance (in USD per share) | $51.76 |
Weighted Average Exercise Price, Exercised (in USD per share) | $29.75 |
Weighted Average Exercise Price, Ending Balance (in USD per share) | $52.38 |
Weighted Average Exercise Price, Options exercisable at end of period (in USD per share) | $47.57 |
Cash_Equivalents_Details
Cash Equivalents (Details) (USD $) | 3 Months Ended | |
Mar. 29, 2015 | Dec. 28, 2014 | |
Cash and Cash Equivalents [Abstract] | ||
Maximum maturity of money market mutual funds and bank deposits | 3 months | |
Cash equivalents | $0 | $0 |
Inventories_Narrative_Details
Inventories (Narrative) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Inventories at average cost or FIFO methods | $247 | $241.80 |
Inventories at cost as per LIFO | $103.50 | $98.10 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials and supplies | $143.20 | $143.10 |
Work in process | 164.5 | 153.5 |
Finished goods | 42.8 | 43.3 |
Total inventories, gross | 350.5 | 339.9 |
Progress payments | -10.5 | -11.6 |
LIFO reserve | -16.6 | -16.5 |
Total inventories, net | $323.40 | $311.80 |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Balance Sheet Components) (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Deferred tax assets | $42 | $42.80 |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Deferred tax assets | 42 | 42.8 |
Income tax receivable | 1.6 | 13.6 |
Other assets, net | ||
Derivatives, Fair Value [Line Items] | ||
Deferred compensation assets | 50.7 | 49.6 |
Accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Salaries and wages | 79.7 | 108.7 |
Customer deposits and credits | 47 | 47.9 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Accrued pension obligation | 13.5 | 14.2 |
Accrued postretirement benefits | 11.3 | 11.6 |
Deferred compensation liabilities | 47.1 | 45.8 |
Deferred tax liabilities | $78.70 | $77.30 |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information (Narrative) (Details) | 3 Months Ended |
Mar. 29, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Period for product warranty | 1 year |
Supplemental_Balance_Sheet_Inf4
Supplemental Balance Sheet Information (Product Warranty) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Company's product warranty reserve | ||
Balance at beginning of year | $18.50 | $17.30 |
Accruals for product warranties charged to expense | 1.5 | 0.5 |
Cost of product warranty claims | -2.1 | -1.2 |
Balance at end of period | $17.90 | $16.60 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 29.80% | 25.80% |
Net tax benefits | $0.20 | $2.30 |
Effective income tax rate reconciliation, excluding tax credits | 29.50% | 29.50% |
LongTerm_Debt_and_Capital_Leas2
Long-Term Debt and Capital Leases - Long-Term Debt (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
In Millions, unless otherwise specified | ||
Summary of Long-Term Debt | ||
Total debt | $820.40 | $694.70 |
Less: current portion of long-term debt | -86.3 | -84.9 |
Total long-term debt | 734.1 | 609.8 |
4.04% Senior Notes due September 2015 | ||
Summary of Long-Term Debt | ||
Total debt | 75 | 75 |
Stated interest rate | 4.04% | 4.04% |
4.74% Senior Notes due September 2017 | ||
Summary of Long-Term Debt | ||
Total debt | 100 | 100 |
Stated interest rate | 4.74% | 4.74% |
2.61% Senior Notes due December 2019 | ||
Summary of Long-Term Debt | ||
Total debt | 30 | 30 |
Stated interest rate | 2.61% | 2.61% |
5.30% Senior Notes due September 2020 | ||
Summary of Long-Term Debt | ||
Total debt | 75 | 75 |
Stated interest rate | 5.30% | 5.30% |
3.09% Senior Notes due December 2021 | ||
Summary of Long-Term Debt | ||
Total debt | 95 | 95 |
Stated interest rate | 3.09% | 3.09% |
Term loans due through March 2019, weighted average rate of 1.30% at March 29, 2015 and 1.28% at December 28, 2014 | ||
Summary of Long-Term Debt | ||
Total debt | 200 | 200 |
Long-term debt, weighted average interest rate | 1.30% | 1.28% |
Other debt at various rates due through 2031 | ||
Summary of Long-Term Debt | ||
Total debt | 12.4 | 14.7 |
$750.0 million revolving credit facility due March 2018, weighted average rate of 1.27% at March 29, 2015 and 1.24% at December 28, 2014 | ||
Summary of Long-Term Debt | ||
Total debt | $233 | $105 |
Long-term debt, weighted average interest rate | 1.27% | 1.24% |
LongTerm_Debt_and_Capital_Leas3
Long-Term Debt and Capital Leases - Credit Facility and Capital Lease (Details) (USD $) | Mar. 29, 2015 | Dec. 28, 2014 |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $750,000,000 | |
Available borrowings capacity under letters of credit | 502,500,000 | |
Total capital leases | 9,600,000 | 10,400,000 |
Capital leases, current | 1,200,000 | 1,300,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit, outstanding | $16,700,000 |
Lawsuits_Claims_Commitments_Co1
Lawsuits, Claims, Commitments, Contingencies and Related Matters (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Reserves for environmental remediation obligations | 9.5 | |
Portion of reserves included in current accrued liabilities | 244.3 | 290.3 |
Maximum | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Up to estimated duration of remediation | 30 years | |
Environmental Reserves | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Portion of reserves included in current accrued liabilities | 5.1 |
Pension_Plans_and_Postretireme2
Pension Plans and Postretirement Benefits (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Dec. 28, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan curtailment | $1,200,000 | ||
Contributions by employer by during period | 0 | 0 | |
Estimated contributions in current fiscal year | 0 | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net periodic pension expense (income) | -200,000 | -300,000 | |
Pension plan curtailment | -1,200,000 | ||
Pension Benefits - U.S. Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine the benefit obligation | 4.50% | 5.40% | |
U.S. Government Cost Accounting Standards | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards | $3,500,000 | $3,500,000 |
Pension_Plans_and_Postretireme3
Pension Plans and Postretirement Benefits (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Components of net period pension benefit expense | ||
Pension plan curtailment | $1.20 | |
Pension Benefits | ||
Components of net period pension benefit expense | ||
Service cost — benefits earned during the period | 3.3 | 3.1 |
Interest cost on benefit obligation | 9.9 | 10.7 |
Expected return on plan assets | -19.2 | -19.1 |
Amortization of prior service cost | -1.5 | -1.2 |
Amortization of net actuarial gains (losses) | 8.5 | 6.2 |
Pension plan curtailment | -1.2 | |
Net income | -0.2 | -0.3 |
Postretirement Benefits | ||
Components of net period pension benefit expense | ||
Interest cost on benefit obligation | 0.1 | 0.2 |
Amortization of prior service cost | -0.1 | |
Amortization of net actuarial gains (losses) | 0 | -0.1 |
Net income | $0.10 | $0 |
Industry_Segments_Narrative_De
Industry Segments (Narrative) (Details) | 3 Months Ended |
Mar. 29, 2015 | |
segment | |
Revenue from External Customer [Line Items] | |
Number of reportable segments | 4 |
Instrumentation | |
Revenue from External Customer [Line Items] | |
Number of product lines | 3 |
Digital Imaging | |
Revenue from External Customer [Line Items] | |
Number of product lines | 1 |
Aerospace and Defense Electronics | |
Revenue from External Customer [Line Items] | |
Number of product lines | 1 |
Engineered Systems | |
Revenue from External Customer [Line Items] | |
Number of product lines | 3 |
Industry_Segments_Reconciliati
Industry Segments (Reconciliation) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Net sales: | ||
Net sales | $565 | $573.50 |
Net sales, percentage change | -1.50% | |
Segment operating profit: | ||
Total segment operating profit | 67.3 | 66 |
Corporate expense, percentage change | 2.00% | |
Interest and debt expense, net | -5.9 | -4.7 |
Interest and debt expense, net, percentage change | 25.50% | |
Other income, net | 0.8 | 0.6 |
Other nonoperating income (expense), net percentage change | 33.30% | |
Income before income taxes | 62.2 | 61.9 |
Income before income taxes, percentage change | 0.50% | |
Provision for income taxes | 18.5 | 15.9 |
Provision for income taxes, percentage change | 16.40% | |
Net income | 43.7 | 46 |
Net income, percentage change | -5.00% | |
Noncontrolling interest | -0.2 | |
Net income attributable to Teledyne | 43.7 | 45.8 |
Net income attributable to Teledyne, percentage change | -4.60% | |
Operating Segments [Member] | ||
Segment operating profit: | ||
Total segment operating profit | 77.5 | 77.1 |
Total segment operating profit, percentage change | 0.50% | |
Instrumentation | ||
Net sales: | ||
Net sales | 270.3 | 258.9 |
Net sales, percentage change | 4.40% | |
Segment operating profit: | ||
Total segment operating profit | 42.1 | 37.5 |
Total segment operating profit, percentage change | 12.30% | |
Digital Imaging | ||
Net sales: | ||
Net sales | 90.4 | 101.9 |
Net sales, percentage change | -11.30% | |
Segment operating profit: | ||
Total segment operating profit | 9.3 | 9.7 |
Total segment operating profit, percentage change | -4.10% | |
Aerospace and Defense Electronics | ||
Net sales: | ||
Net sales | 141.2 | 153.3 |
Net sales, percentage change | -7.90% | |
Segment operating profit: | ||
Total segment operating profit | 19.4 | 23.8 |
Total segment operating profit, percentage change | -18.50% | |
Engineered Systems | ||
Net sales: | ||
Net sales | 63.1 | 59.4 |
Net sales, percentage change | 6.20% | |
Segment operating profit: | ||
Total segment operating profit | 6.7 | 6.1 |
Total segment operating profit, percentage change | 9.80% | |
Corporate and Other | ||
Segment operating profit: | ||
Corporate expense | ($10.20) | ($11.10) |
Corporate expense, percentage change | -8.10% |
Industry_Segments_Sales_Detail
Industry Segments (Sales) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 |
Revenue from External Customer [Line Items] | ||
Net sales | $565 | $573.50 |
Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 270.3 | 258.9 |
Instrumentation | Marine Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 159.5 | 150.6 |
Instrumentation | Environmental Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 67.7 | 61.3 |
Instrumentation | Test and Measurement Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 43.1 | 47 |
Engineered Systems | ||
Revenue from External Customer [Line Items] | ||
Net sales | 63.1 | 59.4 |
Engineered Systems | Engineered Products and Services | ||
Revenue from External Customer [Line Items] | ||
Net sales | 49.1 | 47.6 |
Engineered Systems | Turbine Engines | ||
Revenue from External Customer [Line Items] | ||
Net sales | 5.6 | 6.1 |
Engineered Systems | Energy Systems | ||
Revenue from External Customer [Line Items] | ||
Net sales | $8.40 | $5.70 |
Subsequent_Event_Details
Subsequent Event (Details) (Optech Incorporated, Subsequent Event, CAD) | 0 Months Ended | |
In Millions, unless otherwise specified | Apr. 29, 2015 | Apr. 29, 2015 |
Optech Incorporated | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Noncontrolling interest, ownership percentage | 49.00% | 49.00% |
Payments to acquire interest in subsidiaries and affiliates | 26.5 |