Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2018 | May 02, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TELEDYNE TECHNOLOGIES INC | |
Entity Central Index Key | 1,094,285 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 35,762,990 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 695.6 | $ 566.1 |
Costs and expenses | ||
Cost of sales | 438.2 | 357 |
Selling, general and administrative expenses | 169 | 154.3 |
Total costs and expenses | 607.2 | 511.3 |
Operating income | 88.4 | 54.8 |
Interest and debt expense, net | (7.1) | (8.2) |
Non-service retirement benefit income | 3.4 | 3.3 |
Other expense, net | (2.5) | (9.3) |
Income before income taxes | 82.2 | 40.6 |
Provision for income taxes | 15.7 | 10.1 |
Net income | $ 66.5 | $ 30.5 |
Basic earnings per common share: | ||
Basic earnings per common share (in USD per share) | $ 1.87 | $ 0.87 |
Weighted average common shares outstanding (in shares) | 35.6 | 35.1 |
Diluted earnings per common share: | ||
Diluted earnings per common share (in USD per share) | $ 1.81 | $ 0.84 |
Weighted average diluted common shares outstanding (in shares) | 36.8 | 36.1 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 66.5 | $ 30.5 |
Other comprehensive income (loss): | ||
Foreign exchange translation adjustment | 17.2 | 4 |
Hedge activity, net of tax | (1.6) | (0.2) |
Pension and postretirement benefit adjustments, net of tax | 4.3 | 3.5 |
Other comprehensive income | 19.9 | 7.3 |
Comprehensive income, net of tax | $ 86.4 | $ 37.8 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash | $ 79.9 | $ 70.9 |
Accounts receivable, net | 386.6 | 388.3 |
Unbilled receivables, net | 148.2 | 89.8 |
Inventories, net | 381.8 | 400.2 |
Prepaid expenses and other current assets | 63.7 | 62.7 |
Total current assets | 1,060.2 | 1,011.9 |
Property, plant and equipment, net of accumulated depreciation and amortization of $548.8 at April 1, 2018 and $531.6 at December 31, 2017 | 441.9 | 442.8 |
Goodwill | 1,802.6 | 1,776.7 |
Acquired intangibles, net | 390.7 | 398.9 |
Prepaid pension assets | 137.5 | 127.2 |
Other assets, net | 87.2 | 88.9 |
Total Assets | 3,920.1 | 3,846.4 |
Current Liabilities | ||
Accounts payable | 198 | 191.7 |
Accrued liabilities | 348 | 345.3 |
Current portion of long-term debt, capital leases and other debt | 9.2 | 3.6 |
Total current liabilities | 555.2 | 540.6 |
Long-term debt and capital lease obligations | 1,019.2 | 1,069.3 |
Other long-term liabilities | 289.8 | 289.2 |
Total Liabilities | 1,864.2 | 1,899.1 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Preferred stock, $0.01 par value; outstanding shares - none | 0 | 0 |
Common stock, $0.01 par value; authorized 125,000,000 shares; issued shares: 37,697,865 at April 1, 2018 and December 31, 2017; outstanding shares: 35,739,323 at April 1, 2018 and 35,540,233 at December 31, 2017 | 0.4 | 0.4 |
Additional paid-in capital | 335.8 | 337.3 |
Retained earnings | 2,209.4 | 2,139.6 |
Treasury stock, 1,958,542 at April 1, 2018 and 2,157,632 at December 31, 2017 | (180.3) | (200.7) |
Accumulated other comprehensive loss | (309.4) | (329.3) |
Total Stockholders’ Equity | 2,055.9 | 1,947.3 |
Total Liabilities and Stockholders’ Equity | $ 3,920.1 | $ 3,846.4 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation and amortization | $ 548.8 | $ 531.6 |
Preferred stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares, issued (in shares) | 37,697,865 | 37,697,865 |
Common stock, shares outstanding (in shares) | 35,739,323 | 35,540,233 |
Treasury stock (in shares) | 1,958,542 | 2,157,632 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Operating Activities | ||
Net income | $ 66.5 | $ 30.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28.8 | 22.8 |
Deferred income taxes | (3.6) | 0.6 |
Stock-based compensation | 6.5 | 5.4 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (27) | (10.1) |
Inventories | (6) | (21.7) |
Prepaid expenses and other assets | (3.6) | (5.8) |
Accounts payable | 9.7 | 14 |
Accrued liabilities | (11.9) | 9.7 |
Income taxes receivable/payable, net | 14.5 | 8.1 |
Long-term assets | 1.5 | (1.8) |
Other long-term liabilities | 0.1 | (0.2) |
Pension and postretirement benefits | (7.4) | (5.8) |
Other operating, net | 3.5 | 7.7 |
Net cash provided by operating activities | 71.6 | 53.4 |
Investing Activities | ||
Purchases of property, plant and equipment | (19.8) | (12.6) |
Purchase of businesses and other investments, net of cash acquired | 0 | (740.6) |
Proceeds from the sale of assets | 0.2 | 0.3 |
Net cash used in investing activities | (19.6) | (752.9) |
Financing Activities | ||
Net proceeds from (payments on) credit facility | (54.5) | 595 |
Proceeds from senior notes | 0 | 100 |
Proceeds from (payments on) other debt | 1.6 | (31) |
Proceeds from exercise of stock options | 12.3 | 6.3 |
Other financing, net | (2) | (1.4) |
Net cash provided by (used in) financing activities | (42.6) | 668.9 |
Effect of exchange rate changes on cash | (0.4) | 1.7 |
Change in cash | 9 | (28.9) |
Cash—beginning of period | 70.9 | 98.6 |
Cash—end of period | $ 79.9 | $ 69.7 |
General
General | 3 Months Ended |
Apr. 01, 2018 | |
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 (“GAAP”) as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes in Teledyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (“ 2017 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 April 1, 2018 and the consolidated results of operations, consolidated comprehensive income and cash flows for the three months then ended. The results of operations and cash flows for the period ended April 1, 2018 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 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, to address a specific consequence of the Tax Cuts and Jobs Act (“Tax Act”) by allowing a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act reduction of the U.S. federal corporate income tax rate. The guidance is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Teledyne is currently evaluating the impact this guidance will have on the consolidated financial statements and footnote disclosures. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” This ASU better aligns an entity’s risk management activities and financial reporting for hedging relationships. This ASU expands and refines hedge accounting for both nonfinancial and financial risk components, and this ASU simplifies and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein, with early adoption permitted. Teledyne is currently evaluating the impact this guidance will have on the consolidated financial statements and footnote disclosures. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU requires the service cost component of net benefit costs to be disaggregated from all other components and be reported in the same line item or items as other compensation costs and allow only the service cost component to be eligible for capitalization when applicable. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and before income from operations. The Company adopted the requirements of this ASU as of January 1, 2018 on a retrospective basis. As such, the Company reclassified $2.9 million and $0.4 million from cost of sales and selling, general and administrative expenses, respectively to non-service retirement benefit income for the three months ended April 2, 2017 to conform to current period presentation. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the computation of the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record a goodwill impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We expect the adoption of this standard will reduce the complexity surrounding the evaluation of goodwill for impairment. The impact of this new standard for the Company will depend on the outcomes of future goodwill impairment tests. I n May 2014, the FASB issued ASU No. 2014-09 (Topic 606), 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 superseded most current revenue recognition guidance under Topic 605, Revenue Recognition. Under the new standard, an entity recognizes revenue when or as it satisfies a performance obligation by transferring control of a good or service to the customer, either at a point in time or over time. The new standard requires expanded disclosures, including how and when we satisfy performance obligations as well as additional disaggregated revenue information to be provided more frequently in the reporting process. The Company adopted the requirements of Topic 606 as of January 1, 2018, using the modified retrospective transition method which required a cumulative-effect adjustment as of the date of adoption. Adoption of Topic 606 primarily impacted contracts for which revenue prior to fiscal year 2018 was recognized using the percentage of completion (“POC”), units-of-delivery or milestone methods, as these contracts are now recognized primarily using the POC cost-to-cost method to depict the transfer of control of the good or service to the customer as the work on the contract is performed. Also, to a much lesser extent, certain contracts for customized goods and services, certain products sold to the U.S. Government, and product repair contracts are now recognized over time, as control of the good or service produced transfers to the customer over time in accordance with the guidance in Topic 606. For impacted contracts that were in process at December 31, 2017, we calculated the difference in the life to date revenue (and related costs and expenses) between legacy accounting standards and Topic 606, with the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings, as shown below. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. While Topic 606 includes additional disclosures, as discussed within these Notes to the Condensed Consolidated Financial Statements, comparative disclosures with prior periods are not required in the year of adoption due to our use of the modified retrospective transition method. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of Topic 606 were as follows (in millions): Balance at December 31, 2017 Topic ASC 606 Adjustments Balance at January 1, 2018 Assets Accounts receivable, net $ 388.3 $ 1.0 $ 389.3 Unbilled receivables, net 89.8 29.0 118.8 Inventories, net 400.2 (24.8 ) 375.4 Liabilities Accrued liabilities $ 345.3 $ 1.9 $ 347.2 Stockholders' Equity Retained earnings $ 2,139.6 $ 3.3 $ 2,142.9 In accordance with the requirements of Topic 606, the disclosure of the impact of adoption on our condensed consolidated income statement and balance sheet for the first quarter of 2018 was as follows (in millions): For the first quarter ended April 1, 2018 As Reported Topic ASC 606 Adjustments Without ASC 606 Adoption Assets Accounts receivable, net $ 386.6 $ (1.2 ) $ 385.4 Unbilled receivables, net 148.2 (60.3 ) 87.9 Inventories, net 381.8 47.4 429.2 Liabilities Accrued liabilities $ 348.0 $ (3.8 ) $ 344.2 Stockholders' Equity Retained earnings $ 2,209.4 $ (10.3 ) $ 2,199.1 For the first quarter ended April 1, 2018 As Reported Topic ASC 606 Adjustments Without ASC 606 Adoption Net sales $ 695.6 $ (32.4 ) $ 663.2 Cost of sales 438.2 (23.2 ) 415.0 Provision for income taxes 15.7 (2.2 ) 13.5 Net income $ 66.5 $ (7.0 ) $ 59.5 Significant Accounting Policies Update Our significant accounting policies are detailed in “Note 2: Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Topic 606 are discussed below. Revenue Recognition We determine the appropriate method by which we recognize revenue by analyzing the nature of the products or services being provided as well as the terms and conditions of contracts or arrangements entered into with our customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A contract’s transaction price is allocated to each distinct good or service (i.e., performance obligation) identified in the contract, and each performance obligation is valued based on its estimated relative standalone selling price. For standard products or services, list prices generally represent the standalone selling price. For performance obligations where list price is not available, we typically use the expected cost plus a margin approach to estimate the standalone selling price for that performance obligation. Approximately 60% of our revenue is recognized at a point in time, with the remaining 40% recognized over time. Revenue recognized at a point in time relates primarily to the sale of standard or minimally customized products, with control transferring to the customer generally upon the transfer of title. This type of revenue arrangement is typical for our commercial contracts within the Instrumentation, Digital Imaging, and Aerospace and Defense Electronics segments, and to a lesser extent for certain commercial contracts within the Engineered Systems segment relating to the sale of standard hydrogen/oxygen gas generators. In limited circumstances, customer specified acceptance criteria exist. If we cannot objectively demonstrate that the product meets those specifications prior to the shipment, the revenue is deferred until customer acceptance is obtained. Performance obligations recognized at a point in time can include variable consideration, such as product returns and sales allowances. The estimation of this variable consideration and determination of whether to include estimated amounts as a reduction in the transaction price is based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Revenue recognized over time relates primarily to contracts to design, develop and/or manufacture highly engineered products used in both defense and commercial applications. This type of revenue arrangement is typical of our U.S. government contracts and to a lesser extent for certain commercial contracts, with both contract types occurring across all segments. The customer typically controls the work in process as evidenced either by contractual termination clauses or by our right to payment for costs incurred to date plus a reasonable profit for products or services that do not have an alternative use . As control transfers continuously over time on these contracts, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress as this measure best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The transaction price in these arrangements may include estimated amounts of variable consideration, including award fees, incentive fees, or other provisions that can either increase or decrease the transaction price. We estimate variable consideration at the amount to which we expect to be entitled, and we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the estimation uncertainty is resolved. The estimation of this variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The majority of our over time contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Over time contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of our contract modifications on over time contracts are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. For over time contracts using cost-to-cost, we have an Estimate at Completion (“EAC”) process in which management reviews the progress and execution of our performance obligations. This EAC process requires management judgment relative to assessing risks, estimating contract revenue and cost, and making assumptions for schedule and technical issues. This EAC process requires management’s judgment to make reasonably dependable cost estimates. Since certain contracts extend over a longer period of time, the impact of revisions in cost and revenue estimates during the progress of work may adjust the current period earnings through a cumulative catch-up basis. This method recognizes, in the current period, the cumulative effect of the changes on current and prior quarters. Additionally, if the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract cost and revenue estimates for significant contracts are generally reviewed and reassessed quarterly. Revenue recognized over time using our EAC process represented approximately 35% of net sales for the first quarter of 2017. The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first quarter of 2018 was $0.2 million of favorable revenue and operating income. None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income for any period presented. While extended or non-customary warranties do not represent a significant portion of our revenue, we recognize warranty services as a separate performance obligations when it is material to the contract. When extended or non-customary warranties represents a separate performance obligation, the revenue is deferred and recognized ratably over the extended warranty period. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities, which are included in accrued liabilities and other long-term liabilities) on the Condensed Consolidated Balance Sheet. Under the typical payment terms of our over time contracts, the customer pays us either performance-based payments or progress payments. Amounts billed and due from our customers are classified as receivables on the Condensed Consolidated Balance Sheet. We may receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these interim and advance payments in excess of revenue recognized and present it as a contract liability which is included within accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheet, which represented $115.2 million and $14.1 million as of April 1, 2018, and $110.3 million and $15.5 million as of January 1, 2018, respectively. Contract liabilities typically are not considered a significant financing component because these cash advances are used to meet working capital demands that can be higher in the early stages of a contract, and these cash advances protect us from the other party failing to adequately complete some or all of its obligations under the contract. When revenue recognized exceeds the amount billed to the customer, we record an unbilled receivable (contract asset) for the amount we are entitled to receive based on our enforceable right to payment. The unbilled receivable balance increased from the beginning of the year by $29.4 million , or 24.7% , primarily due to work performed ahead of billings on certain over time revenue contracts primarily in our Aerospace and Defense Electronics operating segment. Contract liabilities increased slightly from the beginning of the year by $3.5 million , or 2.7% . The Company recognized revenue of $28.9 million during the quarter ended April 1, 2018 from contract liabilities that existed at the beginning of year. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less. Incremental costs to obtain or fulfill contracts with an amortization period greater than one year were not material. Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and excludes unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity). As of April 1, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,492.9 million . The Company expects approximately 85% of remaining performance obligations to be recognized into revenue within the next twelve months, with the remaining 15% recognized thereafter. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive income/(loss) ( “ AOCI ”) by component, net of tax, for the first quarter ended April 1, 2018 and April 2, 2017 are as follows (in millions): Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total Balance as of December 31, 2017 $ (102.0 ) $ 0.5 $ (227.8 ) $ (329.3 ) Other comprehensive income (loss) before reclassifications 17.2 (2.7 ) — 14.5 Amounts reclassified from AOCI — 1.1 4.3 5.4 Net other comprehensive income (loss) 17.2 (1.6 ) 4.3 19.9 Balance as of April 1, 2018 $ (84.8 ) $ (1.1 ) $ (223.5 ) $ (309.4 ) Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total Balance as of January 1, 2017 $ (198.8 ) $ (2.8 ) $ (249.6 ) $ (451.2 ) Other comprehensive income before reclassifications 4.0 0.3 — 4.3 Amounts reclassified from AOCI — (0.5 ) 3.5 3.0 Net other comprehensive income (loss) 4.0 (0.2 ) 3.5 7.3 Balance as of April 2, 2017 $ (194.8 ) $ (3.0 ) $ (246.1 ) $ (443.9 ) The reclassifications out of AOCI for the first quarter ended April 1, 2018 and April 2, 2017 are as follows (in millions): Amount Reclassified from AOCI Three Months Ended Amount Reclassified from AOCI Three Months Ended Statement of Income April 1, 2018 April 2, 2017 Presentation (Gain) loss on cash flow hedges: (Gain) loss recognized in income on derivatives $ 1.3 $ (0.6 ) See note 2 Income tax impact (0.2 ) 0.1 Provision for income taxes Total $ 1.1 $ (0.5 ) Amortization of defined benefit pension and postretirement plan items: Amortization of prior service cost $ (1.5 ) $ (1.6 ) Costs and expenses Amortization of net actuarial loss 7.3 7.2 Costs and expenses Total before tax 5.8 5.6 Income tax impact (1.5 ) (2.1 ) Provision for income taxes Total $ 4.3 $ 3.5 |
Business Combinations, Goodwill
Business Combinations, Goodwill and Acquired Intangible Assets | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations and Investments, Goodwill and Acquired Intangible Assets [Abstract] | |
Business Combinations, Goodwill and Acquired Intangible Assets | Business Combinations, Goodwill and Acquired Intangible Assets Acquisition of e2v On March 28, 2017, Teledyne completed the acquisition of all of the outstanding common stock of e2v technologies plc (“e2v”) for $770.7 million , including stock options and assumed debt, net of $24.4 million of cash acquired. e2v provides high performance image sensors and custom camera solutions and application specific standard products for the machine vision market. In addition, e2v provides high performance space qualified imaging sensors and arrays for space science and astronomy. e2v also produces components and subsystems that deliver high reliability radio frequency power generation for healthcare, industrial and defense applications. Finally, the company provides high reliability semiconductors and board-level solutions for use in aerospace, space and communications applications. Teledyne funded the acquisition of e2v with borrowings under its credit facility and cash on hand as well as $100.0 million in a newly issued term loan. Most of e2v’s operations are included in the Digital Imaging and Aerospace and Defense Electronics segments. The Instrumentation segment includes a small portion of e2v’s operations. Principally located in Chelmsford, United Kingdom and Grenoble, France, e2v had sales of approximately £236 million for its fiscal year ended March 31, 2016. The first quarter of 2017 included pretax charges of $21.2 million related to the acquisition of e2v, which included $11.5 million in transaction costs, including stamp duty, advisory, legal and other consulting fees and other costs recorded to selling, general and administrative expenses, $1.4 million in inventory fair value step-up amortization expense recorded to cost of sales, $2.3 million in bank bridge facility commitment expense recorded to interest expense and $6.0 million related to a foreign currency option contract expense to hedge the e2v purchase price recorded as other expense. Of these amounts, $2.5 million impacted segment operating income. The unaudited proforma information below, as required by GAAP, assumes that e2v had been acquired at the beginning of the 2017 fiscal year and includes the effect of increased interest expense on net acquisition debt and the amortization of acquired intangible assets. The 2017 proforma amount also include $12.3 million in transaction costs, including legal and other consulting fees, $11.5 million in expense related to a foreign currency option contract to hedge the e2v purchase price, $2.8 million in bridge financing costs and $1.4 million in inventory fair value step-up amortization expense. These amounts totaling $28.0 million should be considered non-recurring costs that were necessary to complete the acquisition and are not indicative of the ongoing operations of the combined company. This unaudited proforma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have resulted had the acquisition been in effect at the beginning of the periods presented. In addition, the unaudited proforma results are not intended to be a projection of future results and do not reflect any operating efficiencies or cost savings that might be achievable. The following table presents proforma net sales, net income and earnings per share data assuming e2v was acquired at the beginning of the 2017 fiscal year: First Quarter (a) (unaudited - in millions, except per share amounts) 2017 Net sales $ 659.1 Net income $ 13.1 Basic earnings per common share $ 0.37 Diluted earnings per common share $ 0.36 a) The above unaudited proforma information is presented for the e2v acquisition as it is considered a material acquisition. The following table is a summary of the final purchase accounting allocation for e2v acquisition (dollars in millions): Fair values allocated to the assets acquired and liabilities assumed - e2v (in millions): Current assets, excluding cash acquired $ 144.6 Property, plant and equipment 90.3 Goodwill 494.3 Acquired intangible assets 172.3 Other long-term assets 8.8 Total assets acquired 910.3 Current liabilities (79.6 ) Long-term liabilities (88.3 ) Total liabilities assumed (167.9 ) Consideration transferred, net of cash acquired (a) $ 742.4 (a) Consideration transferred included a $2.0 million liability for the payment to former e2v share option holders paid prior to the end of fiscal year 2017. The following table is a summary of the final purchase accounting allocation for the acquired intangible assets and weighted average useful life in years for the e2v acquisition (dollars in millions): Intangibles subject to amortization: Intangible Assets Weighted average useful life in years Proprietary technology $ 97.5 11.8 Customer list/relationships 25.2 12.9 Backlog 2.8 0.8 Total intangibles subject to amortization 125.5 11.8 Intangibles not subject to amortization: Trademarks 46.8 Total acquired intangible assets $ 172.3 Other Acquisitions On July 20, 2017, a subsidiary of Teledyne acquired assets of Scientific Systems, Inc. (“SSI”) for $31.0 million in cash. Headquartered in State College, PA, SSI manufactures precision components and specialized subassemblies used primarily in analytical and diagnostic instrumentation, such as high performance liquid chromatography systems (HPLC) and specific medical devices and is part of the Instrumentation segment. For a further description of the Company’s acquisition activity for fiscal year 2017, please refer to Note 3 of the Notes to Consolidated Financial Statements included in our 2017 Form 10-K. Goodwill and Acquired Intangible Assets Teledyne’s goodwill was $1,802.6 million at April 1, 2018 and $1,776.7 million at December 31, 2017 . The increase in the balance of goodwill in 2018 included the impact of exchange rate changes and adjustments for the finalization of the e2v purchase accounting allocation. Goodwill from the e2v acquisition will not be deductible for tax purposes. Teledyne’s net acquired intangible assets were $390.7 million at April 1, 2018 and $398.9 million at December 31, 2017 . The Company completed 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 e2v acquisition, including the allocation by segment, resulting in an increase to goodwill of $3.9 million in the first quarter of 2018. In addition, 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 SSI acquisition made in July 2017. The amounts recorded as of April 1, 2018 are preliminary since there was insufficient time between the acquisition date and the end of the period to finalize the analysis. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Apr. 01, 2018 | |
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 US dollar value of future cash flows and minimize the volatility of reported 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. 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 for our Canadian companies, including DALSA and in British pounds for our UK companies, including e2v. These contracts are designated and qualify as cash flow hedges. The Company has converted a US dollar denominated, variable rate debt obligation into a euro fixed rate obligation using a receive-float, pay fixed cross currency swap. This cross currency swap is designated as a cash flow hedge. Cash Flow Hedging Activities The effectiveness of the forward contract cash flow hedge, which exclude time value, and the cross currency swap cash flow hedge 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 forward 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. For the cross currency swap cash flow hedge, effective amounts are recorded in AOCI, and reclassified into interest expense in the consolidated statements of income. In addition, for the cross currency swap an amount is reclassified from AOCI to other income and expense each reporting period, to offset the earnings impact of the remeasurement of the hedged liability. Net deferred gains recorded in AOCI, net of tax, for the forward contracts that will mature in the next twelve months total $1.2 million . These gains are expected to be offset by anticipated losses in the value of the forecasted underlying hedged item. Amounts related to the cross currency swap expected to be reclassified from AOCI into income in the coming twelve months total $2.5 million . 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 April 1, 2018 , Teledyne had foreign currency forward contracts designated as cash flow hedges to buy Canadian dollars and to sell U.S. dollars totaling $100.1 million . These foreign currency forward contracts have maturities ranging from June 2018 to February 2020. Teledyne had foreign currency forward contracts designated as cash flow hedges to buy British pounds and sell U.S. dollars totaling $0.8 million . The foreign currency forward contract has a maturity of June 2018. Together these contracts had a fair value of $1.2 million . The cross currency swap has notional amounts of €93.0 million equivalent to $100.0 million , and matures in October 2019. The effect of derivative instruments designated as cash flow hedges in the condensed consolidated financial statements for the first quarter ended April 1, 2018 and April 2, 2017 was as follows (in millions): First Quarter 2018 2017 Net gain (loss) recognized in AOCI (a) $ (3.7 ) $ 0.5 Net gain (loss) reclassified from AOCI into cost of sales (a) $ 1.2 $ (0.2 ) Net gain reclassified from AOCI into interest expense (a) $ 0.5 $ 0.8 Net loss reclassified from AOCI into other income and expense, net (b) $ (3.0 ) $ — Net foreign exchange loss recognized in other income and expense, net (c) $ — $ (0.1 ) a) Effective portion, pre-tax b) Amount reclassified to offset earnings impact of liability hedged by cross currency swap c) Amount excluded from effectiveness testing 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 April 1, 2018 , Teledyne had non-designated 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$ 179.3 U.S. Dollars US$ 139.7 Canadian Dollars C$ 13.8 Euros € 8.7 Euros € 48.0 Great Britain Pounds £ 42.9 Great Britain Pounds £ 1.4 Australian Dollars A$ 2.5 Great Britain Pounds £ 83.5 U.S. Dollars US$ 114.9 Singapore Dollars S$ 2.0 U.S. Dollars US$ 1.5 Euros € 44.1 U.S. Dollars US$ 54.5 U.S. Dollars US$ 0.8 Japanese Yen ¥ 80.0 Danish Krone DKR 43.4 U.S. Dollars US$ 7.2 The above table includes non-designated hedges derived from terms contained in triggered or previously designated cash flow hedges. 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. Teledyne does not use foreign currency forward contracts for speculative or trading purposes. The effect of derivative instruments not designated as cash flow hedges recognized in other income and expense for the first quarter ended April 1, 2018 was expense of $0.8 million . The effect of derivative instruments not designated as cash flow hedges in other income and expense for the first quarter ended April 2, 2017 was expense of $6.0 million . Fair Value of Derivative Financial Instruments The Company has elected to use the income approach to value the derivatives, using observable Level 2 market expectations at measurement date and standard valuation techniques to convert future amounts to a single present amount. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets (specifically futures contracts on LIBOR and EURIBOR) and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR and EURIBOR cash and swap rates, foreign currency forward rates and cross currency basis spreads). Mid-market pricing is used as a practical expedient for fair value measurements. The fair value measurement of an asset or liability must reflect the nonperformance risk of the entity and the counterparty. Therefore, the impact of the counterparty’s creditworthiness when in an asset position and the Company’s creditworthiness when in a liability position has also been factored into the fair value measurement of the derivative instruments and did not have a material impact on the fair value of these derivative instruments. Both the counterparty and the Company are expected to continue to perform under the contractual terms of the 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 April 1, 2018 December 31, 2017 Derivatives designated as hedging instruments: Cash flow forward contracts Other assets $ 1.5 $ 3.8 Cash flow cross currency swap Other assets — 2.2 Cash flow cross currency swap Accrued liabilities (14.7 ) — Cash flow forward contracts Accrued liabilities (0.3 ) (13.9 ) Total derivatives designated as hedging instruments (13.5 ) (7.9 ) Derivatives not designated as hedging instruments: Non-designated forward contracts Other current assets 2.8 4.9 Non-designated forward contracts Accrued liabilities (2.1 ) (1.2 ) Total derivatives not designated as hedging instruments 0.7 3.7 Total (liability) asset derivatives $ (12.8 ) $ (4.2 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share For the first quarter of 2018, 370,583 stock options were excluded in the computation of diluted earnings per share because they had exercise prices that were greater than the weighted average market price of the Company’s common stock during the period. For the first quarter of 2017, 900 stock options were excluded in the computation of diluted earnings per share because they had exercise prices that were greater than the weighted average market price of the Company’s common stock during the period. The weighted average number of common shares used in the calculation of basic and diluted earnings per share consisted of the following (in millions): First Quarter 2018 2017 Weighted average basic common shares outstanding 35.6 35.1 Effect of dilutive securities (primarily stock options) 1.2 1.0 Weighted average diluted common shares outstanding 36.8 36.1 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 3 Months Ended |
Apr. 01, 2018 | |
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 Board of 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. After 2014, non-employee directors no longer receive non-qualified stock options. Stock Incentive Plan The following disclosures are based on stock options granted to Teledyne’s employees and directors. Stock option compensation expense was $4.9 million for the first quarter of 2018 and was $4.1 million for the first quarter of 2017. Employee stock option grants are charged to expense evenly over the three year vesting period. For 2018 , the Company currently expects approximately $21.2 million in stock option compensation expense based on stock options currently outstanding. This amount can be impacted by employee retirements and terminations or stock options granted during the remainder of the year. The Company issues shares of common stock upon the exercise of stock options. The following assumptions were used in the valuation of stock options granted in 2018: 2018 Expected volatility 31.0% Risk-free interest rate range 1.99% to 2.58% Expected life in years 6.8 Expected dividend yield — Based on the assumptions used in the valuation of stock options, the grant date weighted average fair value of stock options granted in 2018 was $71.79 per share. Stock option transactions for the first quarter ended April 1, 2018 are summarized as follows: 2018 First Quarter Shares Weighted Average Exercise Price Beginning balance 2,285,703 $ 83.73 Granted 371,990 $ 192.00 Exercised (177,383 ) $ 69.38 Canceled (17,300 ) $ 109.03 Ending balance 2,463,010 $ 100.94 Options exercisable at end of period 1,597,005 $ 77.14 Performance Share Plan and Restricted Stock Award Program In the first quarter of 2018, the Company issued 6,481 shares of Teledyne common stock for the first of three annual payouts under the 2015 to 2017 Performance Share Plan. A total of 31,117 shares remain to be issued in equal installments in 2019 and 2020. The following table shows the restricted stock activity for the first quarter ended 2018: Restricted stock: Shares Weighted average fair value per share Balance, December 31, 2017 88,436 $ 90.63 Granted 16,733 $ 171.80 Vested (28,855 ) $ 92.74 Balance, April 1, 2018 76,314 $ 107.64 |
Inventories
Inventories | 3 Months Ended |
Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at current cost net of reserves for excess, slow moving and obsolete inventory, 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 $341.1 million at April 1, 2018 and $348.6 million at December 31, 2017 . The remainder of the inventories using the LIFO method were $50.1 million at April 1, 2018 and $63.6 million at December 31, 2017 . 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 estimates are subject to many factors beyond the Company’s control, interim results are subject to the final year-end LIFO inventory valuation. Balance at Inventories (in millions): April 1, 2018 December 31, 2017 Raw materials and supplies $ 202.3 $ 200.2 Work in process 138.9 157.9 Finished goods 50.0 54.1 391.2 412.2 Progress payments — (1.4 ) Reduction to LIFO cost basis (9.4 ) (10.6 ) Total inventories, net $ 381.8 $ 400.2 |
Warranty Reserve
Warranty Reserve | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Warranty Reserve | Warranty Reserve 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 warranty reserve 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. The warranty reserve is included in current and long-term accrued liabilities on the balance sheet. First Quarter Warranty Reserve (in millions): 2018 2017 Balance at beginning of year $ 21.1 $ 18.4 Accruals for product warranties charged to expense 3.1 1.8 Cost of product warranty claims (2.2 ) (1.6 ) Acquisitions — 3.0 Balance at end of period $ 22.0 $ 21.6 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 01, 2018 | |
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. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Act”) was enacted. The Tax Act significantly revised the U.S. corporate income tax by, among other things, lowering corporate income tax rates, implementing the territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries. As a result of the Tax Act, Teledyne incurred provisional charges of $4.7 million in the fourth quarter of 2017 primarily due to the repatriation tax and the remeasurement of U.S. deferred tax assets and liabilities. The impacts of the Tax Act may differ from this estimate, possibly materially (and the amount of the provisional charge may accordingly be adjusted over the course of 2018), due to changes in interpretations and assumptions Teledyne has made, guidance that may be issued, and actions Teledyne may take as a result of the Tax Act. In the first quarter of 2018, the provisional charge was adjusted by an additional $0.6 million . The Company’s effective income tax rate for the first quarter of 2018 was 19.1% . The Company’s effective income tax rate for the first quarter of 2017 was 24.9% . The first quarter of 2018 includes net discrete income tax benefits of $2.1 million . This amount includes a $3.0 million income tax benefit related to share-based accounting, and an increase in the provisional charge. The first quarter of 2017 included net discrete tax benefits of $1.4 million which included a net discrete tax benefit of $1.6 million related to share-based accounting. Excluding the net discrete income tax benefits in both periods and the impact of the Tax Act, the effective tax rates would have been 21.7% for the first quarter of 2018 and 28.3% for the first quarter of 2017. |
Long-Term Debt, Capital Lease a
Long-Term Debt, Capital Lease and Letters of Credit | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt, Capital Lease and Letters of Credit | Long-Term Debt, Capital Lease and Letters of Credit Balance at Long-Term Debt (in millions): April 1, 2018 December 31, 2017 $750.0 million credit facility due December 2020, weighted average rate of 3.047% at April 1, 2018 and 2.72% at December 31, 2017 $ 110.5 $ 165.0 Term loans due through January 2022, weighted average rate of 3.13% at April 1, 2018 and 2.94% at December 31, 2017 175.5 175.5 Term loan due October 2019, variable rate of 3.0% swapped to a Euro fixed rate of 0.7055% 100.0 100.0 2.61% Fixed Rate Senior Notes due December 2019 30.0 30.0 5.30% Fixed Rate Senior Notes due September 2020 75.0 75.0 2.81% Fixed Rate Senior Notes due November 2020 25.0 25.0 3.09% Fixed Rate Senior Notes due December 2021 95.0 95.0 3.28% Fixed Rate Senior Notes due November 2022 100.0 100.0 0.70% € 50 Million Fixed Rate Senior Notes due April 2022 61.6 60.0 0.92% € 100 Million Fixed Rate Senior Notes due April 2023 123.2 120.0 1.09% € 100 Million Fixed Rate Senior Notes due April 2024 123.2 120.0 Other debt at various rates due through 2018 4.6 2.7 Total debt 1,023.6 1,068.2 Less: current portion of long-term debt and debt issuance costs (9.7 ) (4.3 ) Total long-term debt $ 1,013.9 $ 1,063.9 Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $614.1 million at April 1, 2018 . The credit agreements require the Company to comply with various financial and operating covenants and at April 1, 2018 , 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 is 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 April 1, 2018 and December 31, 2017 , approximated the carrying value. At April 1, 2018 , the Company had $6.7 million in capital leases, of which $1.4 million is current. At December 31, 2017 , the Company had $6.7 million in capital leases, of which $1.3 million was current. At April 1, 2018 , Teledyne had $28.1 million in outstanding letters of credit. |
Lawsuits, Claims, Commitments,
Lawsuits, Claims, Commitments, Contingencies and Related Matters | 3 Months Ended |
Apr. 01, 2018 | |
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 14 of the Company’s financial statements as of and for the fiscal year ended December 31, 2017 , included in the 2017 Form 10-K. At April 1, 2018 , the Company’s reserves for environmental remediation obligations totaled $4.8 million , of which $0.6 million is included in current accrued liabilities. At December 31, 2017, the Company’s reserves for environmental remediation obligations totaled $5.1 million . 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, 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 statements. |
Pension Plans and Postretiremen
Pension Plans and Postretirement Benefits | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans and Postretirement Benefits | Pension Plans and Postretirement Benefits For the domestic pension plan, the discount rate decreased to 4.02% in 2018 compared with a 4.54% discount rate used in 2017 . Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (“CAS”) was $3.2 million and $3.5 million for the first quarter of 2018 and 2017, respectively. 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 qualified pension plan since 2013. No cash pension contributions are planned for 2018 for the domestic qualified pension plan. First Quarter 2018 2017 Service cost — benefits earned during the period (in millions) $ 2.7 $ 2.6 Pension non-service income (in millions): Interest cost on benefit obligation $ 8.1 $ 9.2 Expected return on plan assets (17.9 ) (18.3 ) Amortization of prior service cost (1.5 ) (1.5 ) Amortization of net actuarial loss 7.9 7.3 Pension non-service income $ (3.4 ) $ (3.3 ) Teledyne sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees. First Quarter Postretirement benefits non-service (income)/expense (in millions): 2018 2017 Interest cost on benefit obligation $ 0.1 $ 0.1 Amortization of net actuarial gain (0.1 ) (0.1 ) Postretirement benefits non-service (income)/expense $ — $ — |
Segment Information
Segment Information | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Teledyne is a leading provider of sophisticated instrumentation, digital imaging products and software, aerospace and defense electronics, and engineered systems. Our customers include government agencies, aerospace prime contractors, energy exploration and production companies, major industrial companies and airlines. The Company has four reportable segments: Instrumentation; Digital Imaging; Aerospace and Defense Electronics; and Engineered Systems. Segment results include net sales and operating income by segment but excludes equity income or loss, unusual non-recurring legal matter settlements, interest income and expense, gains and losses on the disposition of assets, sublease rental income and non-revenue licensing and royalty income, domestic and foreign income taxes and corporate office expenses. Corporate expense includes various administrative expenses relating to the corporate office and certain non-operating expenses, including certain acquisition related transaction costs, not allocated to our segments. The following table presents Teledyne’s segment disclosures (dollars in millions): First Quarter % 2018 2017 Change Net sales(a): Instrumentation $ 239.0 $ 232.8 2.7 % Digital Imaging 206.4 113.8 81.4 % Aerospace and Defense Electronics 178.2 151.9 17.3 % Engineered Systems 72.0 67.6 6.5 % Total net sales $ 695.6 $ 566.1 22.9 % Operating income: Instrumentation $ 27.8 $ 30.2 (7.9 )% Digital Imaging (b) 34.6 15.1 129.1 % Aerospace and Defense Electronics 31.7 24.8 27.8 % Engineered Systems 7.2 7.4 (2.7 )% Corporate expense (b) (12.9 ) (22.7 ) (43.2 )% Operating income $ 88.4 $ 54.8 61.3 % (a) Net sales excludes inter-segment sales of $5.2 million and $3.9 million for the first quarter of 2018 and 2017, respectively. (b) The first quarter of 2017 included pretax charges of $12.9 million in acquisition transaction costs related to the acquisition of e2v, of which, $2.5 million was recorded in the Digital Imaging segment and $10.4 million was recorded to corporate expense. Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash, deferred taxes, net pension assets/liabilities and other assets (in millions): Identifiable assets: April 1, 2018 December 31, 2017 Instrumentation $ 1,412.2 $ 1,413.6 Digital Imaging 1,540.9 1,496.4 Aerospace and Defense Electronics 627.2 605.5 Engineered Systems 111.5 107.0 Corporate 228.3 223.9 Total identifiable assets $ 3,920.1 $ 3,846.4 Product Lines The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. Teledyne’s other three segments each contain one product line. The following tables provide a summary of the net sales by product line for the Instrumentation segment (in millions): First Quarter Instrumentation 2018 2017 Marine Instrumentation $ 104.2 $ 109.5 Environmental Instrumentation 81.2 75.5 Test and Measurement Instrumentation 53.6 47.8 Total $ 239.0 $ 232.8 We also disaggregate our revenue from contracts with customers by customer type, contract-type and geographic region for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. As we adopted Topic 606 using the modified retrospective transition method, prior period information was not adjusted for Topic 606 and comparative disclosures for disaggregated revenue are not required in the year of adoption. First Quarter Ended April 1, 2018 Customer Type (in millions) US Government (a) Commercial Total Net Sales: Instrumentation $ 12.8 $ 226.2 $ 239.0 Digital Imaging 22.4 184.0 206.4 Aerospace and Defense Electronics 65.2 113.0 178.2 Engineered Systems 59.0 13.0 72.0 $ 159.4 $ 536.2 $ 695.6 a) Includes sales as a prime contractor or subcontractor. First Quarter Ended April 1, 2018 Contract Type (in millions) Fixed Price Cost Type Total Net Sales: Instrumentation $ 234.1 $ 4.9 $ 239.0 Digital Imaging 186.9 19.5 206.4 Aerospace and Defense Electronics 177.6 0.6 178.2 Engineered Systems 23.2 48.8 72.0 $ 621.8 $ 73.8 $ 695.6 First Quarter Ended April 1, 2018 Geographic Region (in millions) United States Europe All other Total Net sales: Instrumentation $ 191.0 $ 39.4 $ 8.6 $ 239.0 Digital Imaging 56.8 62.4 87.2 206.4 Aerospace and Defense Electronics 154.1 23.4 0.7 178.2 Engineered Systems 70.2 1.8 — 72.0 $ 472.1 $ 127.0 $ 96.5 $ 695.6 |
General (Policies)
General (Policies) | 3 Months Ended |
Apr. 01, 2018 | |
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 (“GAAP”) as they apply to interim reporting. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes in Teledyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (“ 2017 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 April 1, 2018 and the consolidated results of operations, consolidated comprehensive income and cash flows for the three months then ended. The results of operations and cash flows for the period ended April 1, 2018 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 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, to address a specific consequence of the Tax Cuts and Jobs Act (“Tax Act”) by allowing a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act reduction of the U.S. federal corporate income tax rate. The guidance is effective for all entities for annual periods beginning after December 15, 2018, with early adoption permitted, and is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Teledyne is currently evaluating the impact this guidance will have on the consolidated financial statements and footnote disclosures. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” This ASU better aligns an entity’s risk management activities and financial reporting for hedging relationships. This ASU expands and refines hedge accounting for both nonfinancial and financial risk components, and this ASU simplifies and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. This ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein, with early adoption permitted. Teledyne is currently evaluating the impact this guidance will have on the consolidated financial statements and footnote disclosures. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” This ASU requires the service cost component of net benefit costs to be disaggregated from all other components and be reported in the same line item or items as other compensation costs and allow only the service cost component to be eligible for capitalization when applicable. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and before income from operations. The Company adopted the requirements of this ASU as of January 1, 2018 on a retrospective basis. As such, the Company reclassified $2.9 million and $0.4 million from cost of sales and selling, general and administrative expenses, respectively to non-service retirement benefit income for the three months ended April 2, 2017 to conform to current period presentation. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates the computation of the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record a goodwill impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The new standard is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We expect the adoption of this standard will reduce the complexity surrounding the evaluation of goodwill for impairment. The impact of this new standard for the Company will depend on the outcomes of future goodwill impairment tests. I n May 2014, the FASB issued ASU No. 2014-09 (Topic 606), 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 superseded most current revenue recognition guidance under Topic 605, Revenue Recognition. Under the new standard, an entity recognizes revenue when or as it satisfies a performance obligation by transferring control of a good or service to the customer, either at a point in time or over time. The new standard requires expanded disclosures, including how and when we satisfy performance obligations as well as additional disaggregated revenue information to be provided more frequently in the reporting process. The Company adopted the requirements of Topic 606 as of January 1, 2018, using the modified retrospective transition method which required a cumulative-effect adjustment as of the date of adoption. Adoption of Topic 606 primarily impacted contracts for which revenue prior to fiscal year 2018 was recognized using the percentage of completion (“POC”), units-of-delivery or milestone methods, as these contracts are now recognized primarily using the POC cost-to-cost method to depict the transfer of control of the good or service to the customer as the work on the contract is performed. Also, to a much lesser extent, certain contracts for customized goods and services, certain products sold to the U.S. Government, and product repair contracts are now recognized over time, as control of the good or service produced transfers to the customer over time in accordance with the guidance in Topic 606. For impacted contracts that were in process at December 31, 2017, we calculated the difference in the life to date revenue (and related costs and expenses) between legacy accounting standards and Topic 606, with the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings, as shown below. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. While Topic 606 includes additional disclosures, as discussed within these Notes to the Condensed Consolidated Financial Statements, comparative disclosures with prior periods are not required in the year of adoption due to our use of the modified retrospective transition method. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of Topic 606 were as follows (in millions): Balance at December 31, 2017 Topic ASC 606 Adjustments Balance at January 1, 2018 Assets Accounts receivable, net $ 388.3 $ 1.0 $ 389.3 Unbilled receivables, net 89.8 29.0 118.8 Inventories, net 400.2 (24.8 ) 375.4 Liabilities Accrued liabilities $ 345.3 $ 1.9 $ 347.2 Stockholders' Equity Retained earnings $ 2,139.6 $ 3.3 $ 2,142.9 In accordance with the requirements of Topic 606, the disclosure of the impact of adoption on our condensed consolidated income statement and balance sheet for the first quarter of 2018 was as follows (in millions): For the first quarter ended April 1, 2018 As Reported Topic ASC 606 Adjustments Without ASC 606 Adoption Assets Accounts receivable, net $ 386.6 $ (1.2 ) $ 385.4 Unbilled receivables, net 148.2 (60.3 ) 87.9 Inventories, net 381.8 47.4 429.2 Liabilities Accrued liabilities $ 348.0 $ (3.8 ) $ 344.2 Stockholders' Equity Retained earnings $ 2,209.4 $ (10.3 ) $ 2,199.1 For the first quarter ended April 1, 2018 As Reported Topic ASC 606 Adjustments Without ASC 606 Adoption Net sales $ 695.6 $ (32.4 ) $ 663.2 Cost of sales 438.2 (23.2 ) 415.0 Provision for income taxes 15.7 (2.2 ) 13.5 Net income $ 66.5 $ (7.0 ) $ 59.5 Significant Accounting Policies Update Our significant accounting policies are detailed in “Note 2: Summary of Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2017. Significant changes to our accounting policies as a result of adopting Topic 606 are discussed below. Revenue Recognition We determine the appropriate method by which we recognize revenue by analyzing the nature of the products or services being provided as well as the terms and conditions of contracts or arrangements entered into with our customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. A contract’s transaction price is allocated to each distinct good or service (i.e., performance obligation) identified in the contract, and each performance obligation is valued based on its estimated relative standalone selling price. For standard products or services, list prices generally represent the standalone selling price. For performance obligations where list price is not available, we typically use the expected cost plus a margin approach to estimate the standalone selling price for that performance obligation. Approximately 60% of our revenue is recognized at a point in time, with the remaining 40% recognized over time. Revenue recognized at a point in time relates primarily to the sale of standard or minimally customized products, with control transferring to the customer generally upon the transfer of title. This type of revenue arrangement is typical for our commercial contracts within the Instrumentation, Digital Imaging, and Aerospace and Defense Electronics segments, and to a lesser extent for certain commercial contracts within the Engineered Systems segment relating to the sale of standard hydrogen/oxygen gas generators. In limited circumstances, customer specified acceptance criteria exist. If we cannot objectively demonstrate that the product meets those specifications prior to the shipment, the revenue is deferred until customer acceptance is obtained. Performance obligations recognized at a point in time can include variable consideration, such as product returns and sales allowances. The estimation of this variable consideration and determination of whether to include estimated amounts as a reduction in the transaction price is based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. Revenue recognized over time relates primarily to contracts to design, develop and/or manufacture highly engineered products used in both defense and commercial applications. This type of revenue arrangement is typical of our U.S. government contracts and to a lesser extent for certain commercial contracts, with both contract types occurring across all segments. The customer typically controls the work in process as evidenced either by contractual termination clauses or by our right to payment for costs incurred to date plus a reasonable profit for products or services that do not have an alternative use . As control transfers continuously over time on these contracts, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress as this measure best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. The transaction price in these arrangements may include estimated amounts of variable consideration, including award fees, incentive fees, or other provisions that can either increase or decrease the transaction price. We estimate variable consideration at the amount to which we expect to be entitled, and we include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the estimation uncertainty is resolved. The estimation of this variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us. The majority of our over time contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Over time contracts are often modified to account for changes in contract specifications and requirements. We consider contract modifications to exist when the modification either creates new or changes the existing enforceable rights and obligations. Most of our contract modifications on over time contracts are for goods or services that are not distinct from the existing contract due to the significant integration service provided in the context of the contract and are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. For over time contracts using cost-to-cost, we have an Estimate at Completion (“EAC”) process in which management reviews the progress and execution of our performance obligations. This EAC process requires management judgment relative to assessing risks, estimating contract revenue and cost, and making assumptions for schedule and technical issues. This EAC process requires management’s judgment to make reasonably dependable cost estimates. Since certain contracts extend over a longer period of time, the impact of revisions in cost and revenue estimates during the progress of work may adjust the current period earnings through a cumulative catch-up basis. This method recognizes, in the current period, the cumulative effect of the changes on current and prior quarters. Additionally, if the current contract estimate indicates a loss, a provision is made for the total anticipated loss in the period that it becomes evident. Contract cost and revenue estimates for significant contracts are generally reviewed and reassessed quarterly. Revenue recognized over time using our EAC process represented approximately 35% of net sales for the first quarter of 2017. The net aggregate effects of these changes in estimates on contracts accounted for under the cost-to-cost method in the first quarter of 2018 was $0.2 million of favorable revenue and operating income. None of the effects of changes in estimates on any individual contract were material to the condensed consolidated statements of income for any period presented. While extended or non-customary warranties do not represent a significant portion of our revenue, we recognize warranty services as a separate performance obligations when it is material to the contract. When extended or non-customary warranties represents a separate performance obligation, the revenue is deferred and recognized ratably over the extended warranty period. The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities, which are included in accrued liabilities and other long-term liabilities) on the Condensed Consolidated Balance Sheet. Under the typical payment terms of our over time contracts, the customer pays us either performance-based payments or progress payments. Amounts billed and due from our customers are classified as receivables on the Condensed Consolidated Balance Sheet. We may receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. We recognize a liability for these interim and advance payments in excess of revenue recognized and present it as a contract liability which is included within accrued liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheet, which represented $115.2 million and $14.1 million as of April 1, 2018, and $110.3 million and $15.5 million as of January 1, 2018, respectively. Contract liabilities typically are not considered a significant financing component because these cash advances are used to meet working capital demands that can be higher in the early stages of a contract, and these cash advances protect us from the other party failing to adequately complete some or all of its obligations under the contract. When revenue recognized exceeds the amount billed to the customer, we record an unbilled receivable (contract asset) for the amount we are entitled to receive based on our enforceable right to payment. The unbilled receivable balance increased from the beginning of the year by $29.4 million , or 24.7% , primarily due to work performed ahead of billings on certain over time revenue contracts primarily in our Aerospace and Defense Electronics operating segment. Contract liabilities increased slightly from the beginning of the year by $3.5 million , or 2.7% . The Company recognized revenue of $28.9 million during the quarter ended April 1, 2018 from contract liabilities that existed at the beginning of year. The Company recognizes the incremental costs of obtaining or fulfilling a contract as expense when incurred if the amortization period of the asset is one year or less. Incremental costs to obtain or fulfill contracts with an amortization period greater than one year were not material. Remaining performance obligations represent the transaction price of firm orders for which work has not been performed as of the period end date and excludes unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity). As of April 1, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,492.9 million . The Company expects approximately 85% of remaining performance obligations to be recognized into revenue within the next twelve months, with the remaining 15% recognized thereafter. |
General (Tables)
General (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | In accordance with the requirements of Topic 606, the disclosure of the impact of adoption on our condensed consolidated income statement and balance sheet for the first quarter of 2018 was as follows (in millions): For the first quarter ended April 1, 2018 As Reported Topic ASC 606 Adjustments Without ASC 606 Adoption Assets Accounts receivable, net $ 386.6 $ (1.2 ) $ 385.4 Unbilled receivables, net 148.2 (60.3 ) 87.9 Inventories, net 381.8 47.4 429.2 Liabilities Accrued liabilities $ 348.0 $ (3.8 ) $ 344.2 Stockholders' Equity Retained earnings $ 2,209.4 $ (10.3 ) $ 2,199.1 For the first quarter ended April 1, 2018 As Reported Topic ASC 606 Adjustments Without ASC 606 Adoption Net sales $ 695.6 $ (32.4 ) $ 663.2 Cost of sales 438.2 (23.2 ) 415.0 Provision for income taxes 15.7 (2.2 ) 13.5 Net income $ 66.5 $ (7.0 ) $ 59.5 The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of Topic 606 were as follows (in millions): Balance at December 31, 2017 Topic ASC 606 Adjustments Balance at January 1, 2018 Assets Accounts receivable, net $ 388.3 $ 1.0 $ 389.3 Unbilled receivables, net 89.8 29.0 118.8 Inventories, net 400.2 (24.8 ) 375.4 Liabilities Accrued liabilities $ 345.3 $ 1.9 $ 347.2 Stockholders' Equity Retained earnings $ 2,139.6 $ 3.3 $ 2,142.9 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Equity [Abstract] | |
Changes in AOCI by Component | The changes in accumulated other comprehensive income/(loss) ( “ AOCI ”) by component, net of tax, for the first quarter ended April 1, 2018 and April 2, 2017 are as follows (in millions): Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total Balance as of December 31, 2017 $ (102.0 ) $ 0.5 $ (227.8 ) $ (329.3 ) Other comprehensive income (loss) before reclassifications 17.2 (2.7 ) — 14.5 Amounts reclassified from AOCI — 1.1 4.3 5.4 Net other comprehensive income (loss) 17.2 (1.6 ) 4.3 19.9 Balance as of April 1, 2018 $ (84.8 ) $ (1.1 ) $ (223.5 ) $ (309.4 ) Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total Balance as of January 1, 2017 $ (198.8 ) $ (2.8 ) $ (249.6 ) $ (451.2 ) Other comprehensive income before reclassifications 4.0 0.3 — 4.3 Amounts reclassified from AOCI — (0.5 ) 3.5 3.0 Net other comprehensive income (loss) 4.0 (0.2 ) 3.5 7.3 Balance as of April 2, 2017 $ (194.8 ) $ (3.0 ) $ (246.1 ) $ (443.9 ) The reclassifications out of AOCI for the first quarter ended April 1, 2018 and April 2, 2017 are as follows (in millions): Amount Reclassified from AOCI Three Months Ended Amount Reclassified from AOCI Three Months Ended Statement of Income April 1, 2018 April 2, 2017 Presentation (Gain) loss on cash flow hedges: (Gain) loss recognized in income on derivatives $ 1.3 $ (0.6 ) See note 2 Income tax impact (0.2 ) 0.1 Provision for income taxes Total $ 1.1 $ (0.5 ) Amortization of defined benefit pension and postretirement plan items: Amortization of prior service cost $ (1.5 ) $ (1.6 ) Costs and expenses Amortization of net actuarial loss 7.3 7.2 Costs and expenses Total before tax 5.8 5.6 Income tax impact (1.5 ) (2.1 ) Provision for income taxes Total $ 4.3 $ 3.5 |
Business Combinations, Goodwi23
Business Combinations, Goodwill and Acquired Intangible Assets (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Business Combinations and Investments, Goodwill and Acquired Intangible Assets [Abstract] | |
Business Acquisition, Pro Forma Information | The following table presents proforma net sales, net income and earnings per share data assuming e2v was acquired at the beginning of the 2017 fiscal year: First Quarter (a) (unaudited - in millions, except per share amounts) 2017 Net sales $ 659.1 Net income $ 13.1 Basic earnings per common share $ 0.37 Diluted earnings per common share $ 0.36 a) The above unaudited proforma information is presented for the e2v acquisition as it is considered a material acquisition. |
Schedule of Business Acquisitions, by Acquisition | The following table is a summary of the final purchase accounting allocation for e2v acquisition (dollars in millions): Fair values allocated to the assets acquired and liabilities assumed - e2v (in millions): Current assets, excluding cash acquired $ 144.6 Property, plant and equipment 90.3 Goodwill 494.3 Acquired intangible assets 172.3 Other long-term assets 8.8 Total assets acquired 910.3 Current liabilities (79.6 ) Long-term liabilities (88.3 ) Total liabilities assumed (167.9 ) Consideration transferred, net of cash acquired (a) $ 742.4 (a) Consideration transferred included a $2.0 million liability for the payment to former e2v share option holders paid prior to the end of fiscal year 2017. |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table is a summary of the final purchase accounting allocation for the acquired intangible assets and weighted average useful life in years for the e2v acquisition (dollars in millions): Intangibles subject to amortization: Intangible Assets Weighted average useful life in years Proprietary technology $ 97.5 11.8 Customer list/relationships 25.2 12.9 Backlog 2.8 0.8 Total intangibles subject to amortization 125.5 11.8 Intangibles not subject to amortization: Trademarks 46.8 Total acquired intangible assets $ 172.3 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Derivative Instruments Designated as Cash Flow Hedges | The effect of derivative instruments designated as cash flow hedges in the condensed consolidated financial statements for the first quarter ended April 1, 2018 and April 2, 2017 was as follows (in millions): First Quarter 2018 2017 Net gain (loss) recognized in AOCI (a) $ (3.7 ) $ 0.5 Net gain (loss) reclassified from AOCI into cost of sales (a) $ 1.2 $ (0.2 ) Net gain reclassified from AOCI into interest expense (a) $ 0.5 $ 0.8 Net loss reclassified from AOCI into other income and expense, net (b) $ (3.0 ) $ — Net foreign exchange loss recognized in other income and expense, net (c) $ — $ (0.1 ) a) Effective portion, pre-tax b) Amount reclassified to offset earnings impact of liability hedged by cross currency swap c) Amount excluded from effectiveness testing |
Schedule of Notional Amounts of Outstanding Foreign Currency Contracts | As of April 1, 2018 , Teledyne had non-designated 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$ 179.3 U.S. Dollars US$ 139.7 Canadian Dollars C$ 13.8 Euros € 8.7 Euros € 48.0 Great Britain Pounds £ 42.9 Great Britain Pounds £ 1.4 Australian Dollars A$ 2.5 Great Britain Pounds £ 83.5 U.S. Dollars US$ 114.9 Singapore Dollars S$ 2.0 U.S. Dollars US$ 1.5 Euros € 44.1 U.S. Dollars US$ 54.5 U.S. Dollars US$ 0.8 Japanese Yen ¥ 80.0 Danish Krone DKR 43.4 U.S. Dollars US$ 7.2 |
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 April 1, 2018 December 31, 2017 Derivatives designated as hedging instruments: Cash flow forward contracts Other assets $ 1.5 $ 3.8 Cash flow cross currency swap Other assets — 2.2 Cash flow cross currency swap Accrued liabilities (14.7 ) — Cash flow forward contracts Accrued liabilities (0.3 ) (13.9 ) Total derivatives designated as hedging instruments (13.5 ) (7.9 ) Derivatives not designated as hedging instruments: Non-designated forward contracts Other current assets 2.8 4.9 Non-designated forward contracts Accrued liabilities (2.1 ) (1.2 ) Total derivatives not designated as hedging instruments 0.7 3.7 Total (liability) asset derivatives $ (12.8 ) $ (4.2 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Earnings per Share | The weighted average number of common shares used in the calculation of basic and diluted earnings per share consisted of the following (in millions): First Quarter 2018 2017 Weighted average basic common shares outstanding 35.6 35.1 Effect of dilutive securities (primarily stock options) 1.2 1.0 Weighted average diluted common shares outstanding 36.8 36.1 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock Valuation Assumptions | The following assumptions were used in the valuation of stock options granted in 2018: 2018 Expected volatility 31.0% Risk-free interest rate range 1.99% to 2.58% Expected life in years 6.8 Expected dividend yield — |
Stock Option Transactions for Employee Stock Option Plans | Stock option transactions for the first quarter ended April 1, 2018 are summarized as follows: 2018 First Quarter Shares Weighted Average Exercise Price Beginning balance 2,285,703 $ 83.73 Granted 371,990 $ 192.00 Exercised (177,383 ) $ 69.38 Canceled (17,300 ) $ 109.03 Ending balance 2,463,010 $ 100.94 Options exercisable at end of period 1,597,005 $ 77.14 |
Schedule of Restricted Stock Activity | The following table shows the restricted stock activity for the first quarter ended 2018: Restricted stock: Shares Weighted average fair value per share Balance, December 31, 2017 88,436 $ 90.63 Granted 16,733 $ 171.80 Vested (28,855 ) $ 92.74 Balance, April 1, 2018 76,314 $ 107.64 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Balance at Inventories (in millions): April 1, 2018 December 31, 2017 Raw materials and supplies $ 202.3 $ 200.2 Work in process 138.9 157.9 Finished goods 50.0 54.1 391.2 412.2 Progress payments — (1.4 ) Reduction to LIFO cost basis (9.4 ) (10.6 ) Total inventories, net $ 381.8 $ 400.2 |
Warranty Reserve (Tables)
Warranty Reserve (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company's Product Warranty Reserve | First Quarter Warranty Reserve (in millions): 2018 2017 Balance at beginning of year $ 21.1 $ 18.4 Accruals for product warranties charged to expense 3.1 1.8 Cost of product warranty claims (2.2 ) (1.6 ) Acquisitions — 3.0 Balance at end of period $ 22.0 $ 21.6 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Leases (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Balance at Long-Term Debt (in millions): April 1, 2018 December 31, 2017 $750.0 million credit facility due December 2020, weighted average rate of 3.047% at April 1, 2018 and 2.72% at December 31, 2017 $ 110.5 $ 165.0 Term loans due through January 2022, weighted average rate of 3.13% at April 1, 2018 and 2.94% at December 31, 2017 175.5 175.5 Term loan due October 2019, variable rate of 3.0% swapped to a Euro fixed rate of 0.7055% 100.0 100.0 2.61% Fixed Rate Senior Notes due December 2019 30.0 30.0 5.30% Fixed Rate Senior Notes due September 2020 75.0 75.0 2.81% Fixed Rate Senior Notes due November 2020 25.0 25.0 3.09% Fixed Rate Senior Notes due December 2021 95.0 95.0 3.28% Fixed Rate Senior Notes due November 2022 100.0 100.0 0.70% € 50 Million Fixed Rate Senior Notes due April 2022 61.6 60.0 0.92% € 100 Million Fixed Rate Senior Notes due April 2023 123.2 120.0 1.09% € 100 Million Fixed Rate Senior Notes due April 2024 123.2 120.0 Other debt at various rates due through 2018 4.6 2.7 Total debt 1,023.6 1,068.2 Less: current portion of long-term debt and debt issuance costs (9.7 ) (4.3 ) Total long-term debt $ 1,013.9 $ 1,063.9 |
Pension Plans and Postretirem30
Pension Plans and Postretirement Benefits (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans and Postretirement Benefit Plans | First Quarter 2018 2017 Service cost — benefits earned during the period (in millions) $ 2.7 $ 2.6 Pension non-service income (in millions): Interest cost on benefit obligation $ 8.1 $ 9.2 Expected return on plan assets (17.9 ) (18.3 ) Amortization of prior service cost (1.5 ) (1.5 ) Amortization of net actuarial loss 7.9 7.3 Pension non-service income $ (3.4 ) $ (3.3 ) Teledyne sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees. First Quarter Postretirement benefits non-service (income)/expense (in millions): 2018 2017 Interest cost on benefit obligation $ 0.1 $ 0.1 Amortization of net actuarial gain (0.1 ) (0.1 ) Postretirement benefits non-service (income)/expense $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 01, 2018 | |
Segment Reporting [Abstract] | |
Industry Segment Disclosures | Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash, deferred taxes, net pension assets/liabilities and other assets (in millions): Identifiable assets: April 1, 2018 December 31, 2017 Instrumentation $ 1,412.2 $ 1,413.6 Digital Imaging 1,540.9 1,496.4 Aerospace and Defense Electronics 627.2 605.5 Engineered Systems 111.5 107.0 Corporate 228.3 223.9 Total identifiable assets $ 3,920.1 $ 3,846.4 The following table presents Teledyne’s segment disclosures (dollars in millions): First Quarter % 2018 2017 Change Net sales(a): Instrumentation $ 239.0 $ 232.8 2.7 % Digital Imaging 206.4 113.8 81.4 % Aerospace and Defense Electronics 178.2 151.9 17.3 % Engineered Systems 72.0 67.6 6.5 % Total net sales $ 695.6 $ 566.1 22.9 % Operating income: Instrumentation $ 27.8 $ 30.2 (7.9 )% Digital Imaging (b) 34.6 15.1 129.1 % Aerospace and Defense Electronics 31.7 24.8 27.8 % Engineered Systems 7.2 7.4 (2.7 )% Corporate expense (b) (12.9 ) (22.7 ) (43.2 )% Operating income $ 88.4 $ 54.8 61.3 % (a) Net sales excludes inter-segment sales of $5.2 million and $3.9 million for the first quarter of 2018 and 2017, respectively. (b) The first quarter of 2017 included pretax charges of $12.9 million in acquisition transaction costs related to the acquisition of e2v, of which, $2.5 million was recorded in the Digital Imaging segment and $10.4 million was recorded to corporate expense. |
Summary of the sales by product line | The following tables provide a summary of the net sales by product line for the Instrumentation segment (in millions): First Quarter Instrumentation 2018 2017 Marine Instrumentation $ 104.2 $ 109.5 Environmental Instrumentation 81.2 75.5 Test and Measurement Instrumentation 53.6 47.8 Total $ 239.0 $ 232.8 |
Disaggregation of Revenue | We also disaggregate our revenue from contracts with customers by customer type, contract-type and geographic region for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. As we adopted Topic 606 using the modified retrospective transition method, prior period information was not adjusted for Topic 606 and comparative disclosures for disaggregated revenue are not required in the year of adoption. First Quarter Ended April 1, 2018 Customer Type (in millions) US Government (a) Commercial Total Net Sales: Instrumentation $ 12.8 $ 226.2 $ 239.0 Digital Imaging 22.4 184.0 206.4 Aerospace and Defense Electronics 65.2 113.0 178.2 Engineered Systems 59.0 13.0 72.0 $ 159.4 $ 536.2 $ 695.6 a) Includes sales as a prime contractor or subcontractor. First Quarter Ended April 1, 2018 Contract Type (in millions) Fixed Price Cost Type Total Net Sales: Instrumentation $ 234.1 $ 4.9 $ 239.0 Digital Imaging 186.9 19.5 206.4 Aerospace and Defense Electronics 177.6 0.6 178.2 Engineered Systems 23.2 48.8 72.0 $ 621.8 $ 73.8 $ 695.6 First Quarter Ended April 1, 2018 Geographic Region (in millions) United States Europe All other Total Net sales: Instrumentation $ 191.0 $ 39.4 $ 8.6 $ 239.0 Digital Imaging 56.8 62.4 87.2 206.4 Aerospace and Defense Electronics 154.1 23.4 0.7 178.2 Engineered Systems 70.2 1.8 — 72.0 $ 472.1 $ 127.0 $ 96.5 $ 695.6 |
General - Narrative (Details)
General - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of sales | $ (438.2) | $ (357) | |
Selling, general and administrative expenses | (169) | (154.3) | |
Non-service retirement benefit income | 3.4 | 3.3 | |
Change in estimate | 0.2 | ||
Contract with customer, current liability | 115.2 | $ 110.3 | |
Contract with customer, noncurrent liability | 14.1 | $ 15.5 | |
Increase (decrease) in unbilled receivables | $ 29.4 | ||
Increase (decrease) in unbilled receivables (percent) | 25.00% | ||
Increase (decrease) in contract liability | $ 3.5 | ||
Increase (decrease) in contract liability (percent) | 3.00% | ||
Revenue recognized from contract liabilities | $ 28.9 | ||
Remaining performance obligation | $ 1,492.9 | ||
Accounting Standards Update 2017-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cost of sales | 2.9 | ||
Selling, general and administrative expenses | $ 0.4 | ||
Sales Revenue, Net | Transferred at Point in Time | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration of revenue (percent) | 60.00% | ||
Sales Revenue, Net | Transferred over Time | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration of revenue (percent) | 40.00% | 35.00% |
General - Schedule of Adjustmen
General - Schedule of Adjustments Due to Topic 606 (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Apr. 01, 2018 | Apr. 02, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Assets | ||||
Accounts receivable, net | $ 386.6 | $ 389.3 | $ 388.3 | |
Unbilled receivables, net | 148.2 | 118.8 | ||
Inventories, net | 381.8 | 375.4 | 400.2 | |
Liabilities | ||||
Accrued liabilities | 348 | 347.2 | 345.3 | |
Stockholders' Equity | ||||
Retained earnings | 2,209.4 | 2,142.9 | 2,139.6 | |
Net sales | 695.6 | $ 566.1 | ||
Cost of sales | 438.2 | 357 | ||
Provision for income taxes | 15.7 | 10.1 | ||
Net income | 66.5 | $ 30.5 | ||
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Assets | ||||
Accounts receivable, net | 385.4 | 388.3 | ||
Unbilled receivables, net | 87.9 | 89.8 | ||
Inventories, net | 429.2 | 400.2 | ||
Liabilities | ||||
Accrued liabilities | 344.2 | 345.3 | ||
Stockholders' Equity | ||||
Retained earnings | 2,199.1 | $ 2,139.6 | ||
Net sales | 663.2 | |||
Cost of sales | 415 | |||
Provision for income taxes | 13.5 | |||
Net income | 59.5 | |||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||
Assets | ||||
Accounts receivable, net | (1.2) | 1 | ||
Unbilled receivables, net | (60.3) | 29 | ||
Inventories, net | 47.4 | (24.8) | ||
Liabilities | ||||
Accrued liabilities | (3.8) | 1.9 | ||
Stockholders' Equity | ||||
Retained earnings | (10.3) | $ 3.3 | ||
Net sales | (32.4) | |||
Cost of sales | (23.2) | |||
Provision for income taxes | (2.2) | |||
Net income | $ (7) |
General - Performance Obligatio
General - Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-02 | 3 Months Ended |
Apr. 01, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 15.00% |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss (Changes in AOCI by Component) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | $ 14.5 | $ 4.3 |
Amounts reclassified from AOCI | 5.4 | 3 |
Other comprehensive income | 19.9 | 7.3 |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (102) | (198.8) |
Other comprehensive income (loss) before reclassifications | 17.2 | 4 |
Amounts reclassified from AOCI | 0 | 0 |
Other comprehensive income | 17.2 | 4 |
Ending balance | (84.8) | (194.8) |
Cash Flow Hedges and Other | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 0.5 | (2.8) |
Other comprehensive income (loss) before reclassifications | (2.7) | 0.3 |
Amounts reclassified from AOCI | 1.1 | (0.5) |
Other comprehensive income | (1.6) | (0.2) |
Ending balance | (1.1) | (3) |
Pension and Postretirement Benefits | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (227.8) | (249.6) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 4.3 | 3.5 |
Other comprehensive income | 4.3 | 3.5 |
Ending balance | (223.5) | (246.1) |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (329.3) | (451.2) |
Ending balance | $ (309.4) | $ (443.9) |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss (Reclassifications Out of Accumulated OCI) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
(Gain) loss on cash flow hedges: | ||
(Gain) loss recognized in income on derivatives | $ 438.2 | $ 357 |
Income tax impact | 15.7 | 10.1 |
Total | (66.5) | (30.5) |
Amortization of defined benefit pension and postretirement plan items: | ||
Total | 5.4 | 3 |
Cash Flow Hedges | ||
Amortization of defined benefit pension and postretirement plan items: | ||
Total | 1.1 | (0.5) |
Prior Service Cost | ||
Amortization of defined benefit pension and postretirement plan items: | ||
Amortization of defined benefit pension and postretirement plan items | (1.5) | (1.6) |
Net Actuarial Loss | ||
Amortization of defined benefit pension and postretirement plan items: | ||
Amortization of defined benefit pension and postretirement plan items | 7.3 | 7.2 |
Pension and Postretirement Benefits | ||
Amortization of defined benefit pension and postretirement plan items: | ||
Amortization of defined benefit pension and postretirement plan items | 5.8 | 5.6 |
Income tax impact | (1.5) | (2.1) |
Total | 4.3 | 3.5 |
Amount Reclassified from AOCI | Cash Flow Hedges | ||
(Gain) loss on cash flow hedges: | ||
(Gain) loss recognized in income on derivatives | 1.3 | (0.6) |
Income tax impact | (0.2) | 0.1 |
Total | $ 1.1 | $ (0.5) |
Business Combinations, Goodwi37
Business Combinations, Goodwill and Acquired Intangible Assets (Details) £ in Millions | Jul. 20, 2017USD ($) | Mar. 28, 2017USD ($) | Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Mar. 31, 2016GBP (£) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | $ 0 | $ 740,600,000 | ||||
Operating income (loss) | 88,400,000 | 54,800,000 | ||||
Goodwill | 1,802,600,000 | $ 1,776,700,000 | ||||
Acquired intangibles, net | 390,700,000 | $ 398,900,000 | ||||
Net income | 13,100,000 | |||||
e2v | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 21,200,000 | |||||
Operating income (loss) | 2,500,000 | |||||
Goodwill | $ 494,300,000 | |||||
Total intangibles subject to amortization | 125,500,000 | |||||
Goodwill purchase accounting adjustments | $ 3,900,000 | |||||
Subsidiaries | e2v | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | 770,700,000 | |||||
Cash acquired | 24,400,000 | |||||
Revenue reported by acquired entity for last annual period | £ | £ 236 | |||||
Subsidiaries | Scientific Systems, Inc | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses, net of cash acquired | $ 31,000,000 | |||||
Term Loans | Term loan due October 2019, variable rate of 2.72% swapped to a Euro fixed rate of 0.7055% at July 2, 2017 | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument, face amount | $ 100,000,000 | |||||
Legal and Consulting | Selling, General and Administrative Expenses | e2v | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 11,500,000 | |||||
Net income | 12,300,000 | |||||
Foreign Exchange Option | Other Expense | e2v | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 6,000,000 | |||||
Net income | 11,500,000 | |||||
Bridge Financing Costs | Interest Expense | e2v | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 2,300,000 | |||||
Net income | 2,800,000 | |||||
Fair Value Adjustment to Inventory | Cost of sales | e2v | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | 1,400,000 | |||||
Net income | 1,400,000 | |||||
Acquisition-related Costs | e2v | ||||||
Business Acquisition [Line Items] | ||||||
Net income | $ 28,000,000 |
Business Combinations, Goodwi38
Business Combinations, Goodwill and Acquired Intangible Assets - Pro Forma Information (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Apr. 02, 2017USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net income | $ | $ 13.1 |
Basic earnings per common share (in USD per share) | $ / shares | $ 0.37 |
Diluted earnings per common share (in USD per share) | $ / shares | $ 0.36 |
e2v | |
Business Acquisition [Line Items] | |
Net sales | $ | $ 659.1 |
Business Combinations, Goodwi39
Business Combinations, Goodwill and Acquired Intangible Assets - Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 28, 2017 | Apr. 01, 2018 | Dec. 31, 2017 |
Total assets acquired | |||
Goodwill | $ 1,802.6 | $ 1,776.7 | |
e2v | |||
Total assets acquired | |||
Current assets, excluding cash acquired | $ 144.6 | ||
Property, plant and equipment | 90.3 | ||
Goodwill | 494.3 | ||
Acquired intangible assets | 172.3 | ||
Other long-term assets | 8.8 | ||
Total assets acquired | 910.3 | ||
Total liabilities assumed | |||
Current liabilities | (79.6) | ||
Long-term liabilities | (88.3) | ||
Total liabilities assumed | (167.9) | ||
Consideration transferred, net of cash acquired (a) | 742.4 | ||
Payment for liability to former share option holders | $ 2 |
Business Combinations, Goodwi40
Business Combinations, Goodwill and Acquired Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 28, 2017 | Apr. 01, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,802.6 | $ 1,776.7 | |
e2v | |||
Business Acquisition [Line Items] | |||
Total intangibles subject to amortization | $ 125.5 | ||
Weighted average useful life in years | 11 years 9 months | ||
Total acquired intangible assets | $ 172.3 | ||
Goodwill | 494.3 | ||
Trademarks | e2v | |||
Business Acquisition [Line Items] | |||
Intangibles not subject to amortization | 46.8 | ||
Proprietary technology | e2v | |||
Business Acquisition [Line Items] | |||
Total intangibles subject to amortization | $ 97.5 | ||
Weighted average useful life in years | 11 years 9 months | ||
Customer list/relationships | e2v | |||
Business Acquisition [Line Items] | |||
Total intangibles subject to amortization | $ 25.2 | ||
Weighted average useful life in years | 12 years 10 months 24 days | ||
Backlog | e2v | |||
Business Acquisition [Line Items] | |||
Total intangibles subject to amortization | $ 2.8 | ||
Weighted average useful life in years | 9 months |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | ||||
Apr. 01, 2018USD ($) | Apr. 02, 2017USD ($) | Apr. 01, 2018EUR (€) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Long-term debt | $ 1,023.6 | $ 1,068.2 | |||
Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative instruments in hedges, at fair value | 1.2 | ||||
Not Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Income (expense) related to derivative instruments not designated as cash flow hedges recognized in other income and expense | $ 0.8 | $ 6 | |||
Foreign Exchange Forward | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected reclassification of gain (loss) over the next 12 months | 1.2 | ||||
Foreign Exchange Forward | Designated as Hedging Instrument | Sell US Dollars and Buy Canadian Dollars | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of foreign currency contract | 100.1 | ||||
Currency Swap | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Expected reclassification of gain (loss) over the next 12 months | 2.5 | ||||
Term Loan Due Oct 2019 | Term Loans | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Long-term debt | € 93 | 100 | |||
e2v | Foreign Exchange Forward | Designated as Hedging Instrument | Sell US Dollars and Buy Great Britain Pounds | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amount of foreign currency contract | $ 0.8 |
Derivative Instruments (Effect
Derivative Instruments (Effect of Derivative Instruments) (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) recognized in AOCI | $ (3.7) | $ 0.5 |
Net foreign exchange gain (loss) recognized in other income and expense | 0 | (0.1) |
Cost of sales | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) reclassified from AOCI into cost of sales | 1.2 | (0.2) |
Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) reclassified from AOCI into cost of sales | 0.5 | 0.8 |
Other Operating Income (Expense) | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Net gain (loss) reclassified from AOCI into cost of sales | $ (3) | $ 0 |
Derivative Instruments (Foreign
Derivative Instruments (Foreign Currency Contracts) (Details) - Apr. 01, 2018 - Foreign Exchange Forward - Not Designated as Hedging Instrument € in Millions, ¥ in Millions, £ in Millions, kr in Millions, $ in Millions, $ in Millions, $ in Millions, $ in Millions | SGD ($) | AUD ($) | JPY (¥) | GBP (£) | EUR (€) | CAD ($) | DKK (kr) | USD ($) |
Long | Sell US Dollars and Buy Canadian Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | $ 179.3 | |||||||
Long | Sell Euros and Buy Canadian Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | $ 13.8 | |||||||
Long | Sell Great British Pounds and Buy Euros | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | € | € 48 | |||||||
Long | Sell Australian Dollars and Buy Great Britain Pounds | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | £ | £ 1.4 | |||||||
Long | Sell US Dollars and Buy Great Britain Pounds | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | £ | 83.5 | |||||||
Long | Sell US Dollars and Buy Singapore Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | $ 2 | |||||||
Long | Sell US Dollars and Buy Euros | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | € | 44.1 | |||||||
Long | Sell Japanese Yen and Buy US Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | $ 0.8 | |||||||
Long | Sell US Dollars And Buy Danish Krone | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | kr | kr 43.4 | |||||||
Short | Sell US Dollars and Buy Canadian Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | 139.7 | |||||||
Short | Sell Euros and Buy Canadian Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | € | € 8.7 | |||||||
Short | Sell Great British Pounds and Buy Euros | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | £ | £ 42.9 | |||||||
Short | Sell Australian Dollars and Buy Great Britain Pounds | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | $ 2.5 | |||||||
Short | Sell US Dollars and Buy Great Britain Pounds | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | 114.9 | |||||||
Short | Sell US Dollars and Buy Singapore Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | 1.5 | |||||||
Short | Sell US Dollars and Buy Euros | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | 54.5 | |||||||
Short | Sell Japanese Yen and Buy US Dollars | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | ¥ | ¥ 80 | |||||||
Short | Sell US Dollars And Buy Danish Krone | ||||||||
Derivative Instruments (Textual) [Abstract] | ||||||||
Amount of foreign currency contract | $ 7.2 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Values of Instruments) (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2017 |
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | $ (12.8) | $ (4.2) |
Designated as Hedging Instrument | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | (13.5) | (7.9) |
Not Designated as Hedging Instrument | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | 0.7 | 3.7 |
Foreign Exchange Contract | Designated as Hedging Instrument | Other assets | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | 1.5 | 3.8 |
Foreign Exchange Contract | Designated as Hedging Instrument | Accrued liabilities | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | (0.3) | (13.9) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Accrued liabilities | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | (2.1) | (1.2) |
Foreign Exchange Contract | Not Designated as Hedging Instrument | Other current assets | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | 2.8 | 4.9 |
Currency Swap | Designated as Hedging Instrument | Other assets | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | 0 | 2.2 |
Currency Swap | Designated as Hedging Instrument | Accrued liabilities | ||
Fair values of derivative financial instruments | ||
Total (liability) asset derivatives | $ (14.7) | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Earnings Per Share [Abstract] | ||
Stock options excluded in computation of diluted earnings per share (in shares) | 370,583 | 900 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Earnings Per Share [Abstract] | ||
Weighted average basic common shares outstanding (in shares) | 35.6 | 35.1 |
Effect of dilutive securities (in shares) | 1.2 | 1 |
Weighted average diluted common shares outstanding (in shares) | 36.8 | 36.1 |
Stock-Based Compensation Plan47
Stock-Based Compensation Plans (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | Dec. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option compensation expense | $ 4.9 | $ 4.1 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in USD per share) | $ 71.79 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 6,481 | ||
Shares available for grant (shares) | 31,117 | ||
Employee | Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period over which employee stock option grants are evenly expensed | 3 years | ||
Scenario, Forecast | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock option compensation expense | $ 21.2 |
Stock-Based Compensation Plan48
Stock-Based Compensation Plans (Stock Option Valuation Assumptions) (Details) | 3 Months Ended |
Apr. 01, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility | 31.00% |
Expected life in years | 6 years 9 months 18 days |
Expected dividend yield | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate range | 1.99% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate range | 2.58% |
Stock-Based Compensation Plan49
Stock-Based Compensation Plans (Options Plans) (Details) - Stock Options | 3 Months Ended |
Apr. 01, 2018$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 2,285,703 |
Granted (in shares) | shares | 371,990 |
Exercised (in shares) | shares | (177,383) |
Canceled (in shares) | shares | (17,300) |
Ending balance (in shares) | shares | 2,463,010 |
Options exercisable at end of period (in shares) | shares | 1,597,005 |
Weighted Average Exercise Price | |
Beginning balance (in USD per share) | $ / shares | $ 83.73 |
Granted (in USD per share) | $ / shares | 192 |
Exercised (in USD per share) | $ / shares | 69.38 |
Canceled (in USD per share) | $ / shares | 109.03 |
Ending balance (in USD per share) | $ / shares | 100.94 |
Options exercisable at end of period (in USD per share) | $ / shares | $ 77.14 |
Stock-Based Compensation Plan50
Stock-Based Compensation Plans (Restricted Stock Activity) (Details) - Restricted Stock | 3 Months Ended |
Apr. 01, 2018$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 88,436,000 |
Granted (in shares) | shares | 16,733,000 |
Issued (in shares) | shares | (28,855,000) |
Ending balance (in shares) | shares | 76,314,000 |
Weighted average fair value per share | |
Beginning balance (in USD per share) | $ / shares | $ 90.63 |
Granted (in USD per share) | $ / shares | 171.80 |
Issued (in USD per share) | $ / shares | 92.74 |
Ending balance (in USD per share) | $ / shares | $ 107.64 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Inventories at average cost or FIFO methods | $ 341.1 | $ 348.6 |
Inventories at cost as per LIFO | $ 50.1 | $ 63.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventories | |||
Raw materials and supplies | $ 202.3 | $ 200.2 | |
Work in process | 138.9 | 157.9 | |
Finished goods | 50 | 54.1 | |
Total inventories, gross | 391.2 | 412.2 | |
Progress payments | 0 | (1.4) | |
Reduction to LIFO cost basis | (9.4) | (10.6) | |
Total inventories, net | $ 381.8 | $ 375.4 | $ 400.2 |
Warranty Reserve (Product Warra
Warranty Reserve (Product Warranty) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Company's product warranty reserve | ||
Balance at beginning of year | $ 21.1 | $ 18.4 |
Accruals for product warranties charged to expense | 3.1 | 1.8 |
Cost of product warranty claims | (2.2) | (1.6) |
Acquisitions | 0 | 3 |
Balance at end of period | $ 22 | $ 21.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2018 | Dec. 31, 2017 | Apr. 02, 2017 | |
Income Tax Disclosure [Abstract] | |||
Provisional income tax expense | $ 4.7 | ||
Adjustment to provisional income tax expense | $ 0.6 | ||
Effective income tax rate | 19.10% | 24.90% | |
Net discrete income tax expense | $ (2.1) | $ (1.4) | |
Effective income tax rate, excluding discrete items | 21.70% | 28.30% | |
Discrete tax expense (benefit), share-based accounting | $ (3) | $ (1.6) |
Long-Term Debt and Capital Le55
Long-Term Debt and Capital Leases - Long-Term Debt (Details) | Apr. 01, 2018GBP (£) | Apr. 01, 2018USD ($) | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |||
Total debt | $ 1,023,600,000 | $ 1,068,200,000 | |
Less: current portion of long-term debt and debt issuance costs | (9,700,000) | (4,300,000) | |
Total long-term debt | 1,013,900,000 | 1,063,900,000 | |
Other debt at various rates due through 2018 | |||
Debt Instrument [Line Items] | |||
Total debt | 4,600,000 | 2,700,000 | |
Credit facility | $750.0 million credit facility due December 2020, weighted average rate of 3.047% at April 1, 2018 and 2.72% at December 31, 2017 | |||
Debt Instrument [Line Items] | |||
Total debt | 110,500,000 | $ 165,000,000 | |
Line of credit facility, current borrowing capacity | $ 750,000,000 | ||
Weighted average interest rate | 3.047% | 3.047% | 2.72% |
Term Loans | Term loans due through January 2022 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 175,500,000 | $ 175,500,000 | |
Weighted average interest rate | 3.13% | 3.13% | 2.94% |
Term Loans | Term loan due October 2019 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 100,000,000 | $ 100,000,000 | |
Stated interest rate | 0.7055% | 0.7055% | |
Effective interest rate | 3.00% | 3.00% | |
Senior Notes | 2.61% Fixed Rate Senior Notes due December 2019 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 30,000,000 | 30,000,000 | |
Stated interest rate | 2.61% | 2.61% | |
Senior Notes | 5.30% Fixed Rate Senior Notes due September 2020 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 75,000,000 | 75,000,000 | |
Stated interest rate | 5.30% | 5.30% | |
Senior Notes | 2.81% Fixed Rate Senior Notes due November 2020 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 25,000,000 | 25,000,000 | |
Stated interest rate | 2.81% | 2.81% | |
Senior Notes | 3.09% Fixed Rate Senior Notes due December 2021 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 95,000,000 | 95,000,000 | |
Stated interest rate | 3.09% | 3.09% | |
Senior Notes | 3.28% Fixed Rate Senior Notes due November 2022 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 100,000,000 | 100,000,000 | |
Stated interest rate | 3.28% | 3.28% | |
Senior Notes | 0.70% €50 Million Fixed Rate Senior Notes due April 2022 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 61,600,000 | 60,000,000 | |
Debt instrument, face amount | £ | £ 50,000,000 | ||
Stated interest rate | 0.70% | 0.70% | |
Senior Notes | 0.92% €100 Million Fixed Rate Senior Notes due April 2023 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 123,200,000 | 120,000,000 | |
Debt instrument, face amount | £ | £ 100,000,000 | ||
Stated interest rate | 0.92% | 0.92% | |
Senior Notes | 1.09% €100 Million Fixed Rate Senior Notes due April 2024 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 123,200,000 | $ 120,000,000 | |
Debt instrument, face amount | £ | £ 100,000,000 | ||
Stated interest rate | 1.09% | 1.09% |
Long-Term Debt and Capital Le56
Long-Term Debt and Capital Leases - Credit Facility and Capital Lease (Details) - USD ($) | Apr. 01, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | ||
Total capital leases | $ 6,700,000 | $ 6,700,000 |
Total capital leases, current | 1,400,000 | $ 1,300,000 |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit, outstanding | 28,100,000 | |
Credit facility | $750.0 million credit facility due December 2020, weighted average rate of 3.047% at April 1, 2018 and 2.72% at December 31, 2017 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 750,000,000 | |
Credit facility | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Available borrowings capacity under letters of credit | $ 614,100,000 |
Lawsuits, Claims, Commitments57
Lawsuits, Claims, Commitments, Contingencies and Related Matters (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Apr. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Reserves for environmental remediation obligations | $ 4.8 | ||
Accrued liabilities | $ 348 | $ 347.2 | $ 345.3 |
Accrual for environmental loss contingencies | $ 5.1 | ||
Maximum | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Estimated duration of remediation | 30 years | ||
Environmental Reserves | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Accrued liabilities | $ 0.6 |
Pension Plans and Postretirem58
Pension Plans and Postretirement Benefits (Narrative) (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2018 | Apr. 02, 2017 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions by employer by during period | $ 0 | $ 0 | |
Estimated contributions in current fiscal year | 0 | ||
Pension Benefits Allocated to Contracts Pursuant to 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 | $ 3,200,000 | $ 3,500,000 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine the benefit obligation | 4.02% | 4.54% |
Pension Plans and Postretirem59
Pension Plans and Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Pension Plan | ||
Components of net period pension benefit expense | ||
Service cost — benefits earned during the period (in millions) | $ 2.7 | $ 2.6 |
Interest cost on benefit obligation | 8.1 | 9.2 |
Expected return on plan assets | (17.9) | (18.3) |
Amortization of prior service cost | (1.5) | (1.5) |
Amortization of net actuarial loss (gain) | 7.9 | 7.3 |
Net periodic (income) expense | (3.4) | (3.3) |
Other Postretirement Benefits Plan | ||
Components of net period pension benefit expense | ||
Interest cost on benefit obligation | 0.1 | 0.1 |
Amortization of net actuarial loss (gain) | (0.1) | (0.1) |
Net periodic (income) expense | $ 0 | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Apr. 01, 2018segmentproduct_line | |
Revenue from External Customer [Line Items] | |
Number of reportable segments | segment | 4 |
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 | 1 |
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 |
Segment Information (Reconcilia
Segment Information (Reconciliation) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Net sales: | ||
Net sales | $ 695.6 | $ 566.1 |
Net sales, percentage change | 22.90% | |
Operating income: | ||
Operating income | $ 88.4 | 54.8 |
Total segment operating profit, percentage change | 61.30% | |
Corporate, Non-Segment | ||
Operating income: | ||
Operating income | $ (12.9) | (22.7) |
Total segment operating profit, percentage change | (43.20%) | |
Intersegment Eliminations | ||
Net sales: | ||
Net sales | $ 5.2 | 3.9 |
Instrumentation | Operating Segments | ||
Net sales: | ||
Net sales | $ 239 | 232.8 |
Net sales, percentage change | 2.70% | |
Operating income: | ||
Operating income | $ 27.8 | 30.2 |
Total segment operating profit, percentage change | (7.90%) | |
Digital Imaging | Operating Segments | ||
Net sales: | ||
Net sales | $ 206.4 | 113.8 |
Net sales, percentage change | 81.40% | |
Operating income: | ||
Operating income | $ 34.6 | 15.1 |
Total segment operating profit, percentage change | 129.10% | |
Aerospace and Defense Electronics | Operating Segments | ||
Net sales: | ||
Net sales | $ 178.2 | 151.9 |
Net sales, percentage change | 17.30% | |
Operating income: | ||
Operating income | $ 31.7 | 24.8 |
Total segment operating profit, percentage change | 27.80% | |
Engineered Systems | Operating Segments | ||
Net sales: | ||
Net sales | $ 72 | 67.6 |
Net sales, percentage change | 6.50% | |
Operating income: | ||
Operating income | $ 7.2 | 7.4 |
Total segment operating profit, percentage change | (2.70%) | |
e2v | ||
Operating income: | ||
Operating income | 2.5 | |
Acquisition related costs | 21.2 | |
e2v | Cost Of Sales And Sales General And Administrative Expenses | ||
Operating income: | ||
Acquisition related costs | 12.9 | |
e2v | Cost Of Sales And Sales General And Administrative Expenses | Corporate, Non-Segment | ||
Operating income: | ||
Acquisition related costs | 10.4 | |
e2v | Cost Of Sales And Sales General And Administrative Expenses | Digital Imaging | ||
Operating income: | ||
Acquisition related costs | $ 2.5 |
Segment Information (Identifiab
Segment Information (Identifiable Assets) (Details) - USD ($) $ in Millions | Apr. 01, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 3,920.1 | $ 3,846.4 |
Operating Segments | Instrumentation | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 1,412.2 | 1,413.6 |
Operating Segments | Digital Imaging | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 1,540.9 | 1,496.4 |
Operating Segments | Aerospace and Defense Electronics | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 627.2 | 605.5 |
Operating Segments | Engineered Systems | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | 111.5 | 107 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 228.3 | $ 223.9 |
Segment Information (Sales) (De
Segment Information (Sales) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 01, 2018 | Apr. 02, 2017 | |
Revenue from External Customer [Line Items] | ||
Net sales | $ 695.6 | $ 566.1 |
Operating Segments | Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 239 | 232.8 |
Operating Segments | Instrumentation | Marine Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 104.2 | 109.5 |
Operating Segments | Instrumentation | Environmental Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | 81.2 | 75.5 |
Operating Segments | Instrumentation | Test and Measurement Instrumentation | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 53.6 | $ 47.8 |
Segment Information (Disaggrega
Segment Information (Disaggregation of Revenue) (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Net Sales | $ 695.6 |
United States | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 472.1 |
Europe | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 127 |
All other | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 96.5 |
Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 621.8 |
Cost Type | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 73.8 |
US Government (a) | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 159.4 |
Commercial | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 536.2 |
Instrumentation | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 239 |
Instrumentation | United States | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 191 |
Instrumentation | Europe | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 39.4 |
Instrumentation | All other | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 8.6 |
Instrumentation | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 234.1 |
Instrumentation | Cost Type | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 4.9 |
Instrumentation | US Government (a) | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 12.8 |
Instrumentation | Commercial | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 226.2 |
Digital Imaging | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 206.4 |
Digital Imaging | United States | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 56.8 |
Digital Imaging | Europe | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 62.4 |
Digital Imaging | All other | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 87.2 |
Digital Imaging | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 186.9 |
Digital Imaging | Cost Type | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 19.5 |
Digital Imaging | US Government (a) | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 22.4 |
Digital Imaging | Commercial | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 184 |
Aerospace and Defense Electronics | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 178.2 |
Aerospace and Defense Electronics | United States | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 154.1 |
Aerospace and Defense Electronics | Europe | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 23.4 |
Aerospace and Defense Electronics | All other | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 0.7 |
Aerospace and Defense Electronics | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 177.6 |
Aerospace and Defense Electronics | Cost Type | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 0.6 |
Aerospace and Defense Electronics | US Government (a) | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 65.2 |
Aerospace and Defense Electronics | Commercial | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 113 |
Engineered Systems | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 72 |
Engineered Systems | United States | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 70.2 |
Engineered Systems | Europe | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 1.8 |
Engineered Systems | All other | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 0 |
Engineered Systems | Fixed Price | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 23.2 |
Engineered Systems | Cost Type | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 48.8 |
Engineered Systems | US Government (a) | |
Disaggregation of Revenue [Line Items] | |
Net Sales | 59 |
Engineered Systems | Commercial | |
Disaggregation of Revenue [Line Items] | |
Net Sales | $ 13 |