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Business Segments
 12 Months Ended
Jan. 01, 2023
Segment Reporting [Abstract]  
Business Segments Business Segments
Teledyne's businesses are aligned in four reportable segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics and Engineered Systems. The Company manages, evaluates and aggregates its operating segments for segment reporting purposes primarily on the basis of product and service type, production process, distribution methods, type of customer, management organization, sales growth potential and long-term profitability. The Digital Imaging segment includes high-performance sensors, cameras and systems, within the visible, infrared and X-ray spectra for use in industrial, government and medical applications, as well as micro electromechanical systems (“MEMS”) and high-performance, high-reliability semiconductors including analog-to-digital and digital-to-analog converters. This segment also includes our sponsored and centralized research laboratories which benefit government programs and commercial businesses. Teledyne acquired FLIR in May 2021. Teledyne FLIR technologies include thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and advanced threat-detection solutions. The Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, electronic test and measurement equipment and harsh environment interconnect products. The Aerospace and Defense Electronics segment provides sophisticated electronic components and subsystems and communications products, including defense electronics, harsh environment interconnects, data acquisition and communications equipment for aircraft and components and subsystems for wireless and satellite communications, as well as general aviation batteries. The Engineered Systems segment provides innovative systems engineering and integration, advanced technology application, software development and manufacturing solutions for defense, space, environmental and energy applications.
Segment results include net sales and operating income by segment but excludes corporate office expenses. Corporate expense primarily includes various administrative expenses relating to the corporate office not allocated to our segments.
Information on the Company’s business segments was as follows (in millions):
Net sales (a):202220212020
Digital Imaging$3,110.9 $2,412.9 $986.0 
Instrumentation1,254.0 1,166.9 1,094.5 
Aerospace and Defense Electronics682.4 628.7 589.4 
Engineered Systems411.3 405.8 416.3 
Total net sales$5,458.6 $4,614.3 $3,086.2 
Operating income (loss):202220212020
Digital Imaging$519.3 $325.6 $192.8 
Instrumentation295.3 253.7 213.2 
Aerospace and Defense Electronics184.1 133.2 80.8 
Engineered Systems39.2 48.6 50.1 
Corporate expense(65.9)(136.8)(56.8)
Total operating income (loss)$972.0 $624.3 $480.1 
(a) Net sales excludes inter-segment sales of $25.3 million and $20.2 million for fiscal years 2022 and 2021, respectively.
Depreciation and amortization (in millions):  202220212020
Digital Imaging (a)  $279.0 $309.2 $49.2 
Instrumentation  32.6 38.1 38.3 
Aerospace and Defense Electronics  12.4 13.2 13.7 
Engineered Systems  4.4 7.2 9.2 
Corporate  3.8 4.1 5.8 
Total depreciation and amortization  $332.2 $371.8 $116.2 
(a) The fiscal year 2022 amount for Digital Imaging included $167.6 million of acquired asset intangible amortization related to FLIR. The fiscal year 2021 amount included $106.4 million of acquired inventory step-up expense and $110.3 million of acquired asset intangible amortization related to FLIR.
 
Capital expenditures (in millions):202220212020
Digital Imaging$63.9 $64.2 $33.4 
Instrumentation9.3 13.3 18.0 
Aerospace and Defense Electronics8.0 8.4 10.4 
Engineered Systems5.3 12.9 7.5 
Corporate6.1 2.8 2.1 
Total capital expenditures$92.6 $101.6 $71.4 

Identifiable assets are those assets used in the operations of the segments. Corporate assets primarily consist of cash and cash equivalents, deferred taxes, pension assets and other assets.
Identifiable assets (in millions):202220212020
Digital Imaging$11,432.3 $11,756.8 $2,000.8 
Instrumentation1,626.4 1,640.3 1,676.2 
Aerospace and Defense Electronics540.1 536.3 567.6 
Engineered Systems200.3 179.2 175.1 
Corporate554.9 317.7 665.1 
Total identifiable assets$14,354.0 $14,430.3 $5,084.8 
Information on the Company’s sales by geographic region and long-lived assets by major geographic area was as follows: 
Sales by geographic region (in millions):202220212020
United States$2,872.6 $2,466.4 $1,700.9 
Europe1,157.3 958.5 616.9 
Asia971.5 807.9 597.6 
All other regions457.2 381.5 170.8 
Total sales$5,458.6 $4,614.3 $3,086.2 
 
Long-lived assets (in millions):202220212020
United States$7,873.1 $9,446.3 $1,707.0 
Canada1,169.7 763.5 372.9 
United Kingdom825.8 622.4 539.5 
France427.4 463.7 505.1 
All other countries1,225.4 679.3 201.7 
Total long-lived assets$11,521.4 $11,975.2 $3,326.2
Long-lived assets consist of property, plant and equipment, goodwill, acquired intangible assets, prepaid pension assets and other long-term assets including deferred compensation assets but excluding any deferred tax assets. In 2021, provisional amounts for goodwill and intangible assets were primarily included in the United States as the FLIR acquisition was provisional at that time. The all other countries category primarily consists of Teledyne’s other operations in Europe, primarily in Sweden, Norway, Belgium and Estonia.
Product Lines
The Instrumentation segment includes three product lines: Environmental Instrumentation, Marine Instrumentation and Test and Measurement Instrumentation. All other segments each contain one product line.
The tables below provide a summary of the sales by product line for the Instrumentation segment (in millions):
Instrumentation:202220212020
Environmental Instrumentation$465.0 $446.3 $411.3 
Marine Instrumentation460.7 424.1 426.3 
Test and Measurement Instrumentation328.3 296.5 256.9 
Total$1,254.0 $1,166.9 $1,094.5 
As part of a continuing effort to reduce costs and improve operating performance, as well as to respond to the impact of the COVID pandemic, beginning in 2020 the Company took actions to reduce headcount across various businesses, reducing our exposure to weak end markets, such as commercial aerospace. Teledyne also exited certain facilities no longer needed. In 2021, the Company took actions to integrate FLIR into our businesses resulting in higher severance and facility closure costs in the Digital Imaging segment. In 2021, the Company incurred $26.4 million of severance and facility consolidation costs, primarily related to our Digital Imaging Segment. Severance and facility consolidation costs incurred in 2022 were not material, and, at January 1, 2023, an immaterial amount remains to be paid related to these actions.