Goodwill and Intangible Assets

12 Months Ended

Jan. 01, 2023

Goodwill and Intangible Assets Disclosure [Abstract]


Goodwill (in millions):	Digital Imaging		Instrumentation		Aerospace and Defense Electronics		Engineered Systems		Total















Balance at January 3, 2021	$	997.8	$	968.8	$	165.8	$	17.6	$	2,150.0
Current year acquisitions	5,905.5		—		—		—		5,905.5
Foreign currency changes and other	(35.8)		(32.9)		(0.1)		—		(68.8)
Balance at January 3, 2022	6,867.5		935.9		165.7		17.6		7,986.7
Current year acquisitions	78.5		—		—		—		78.5
Foreign currency changes and other	(165.6)		(22.7)		(3.9)		—		(192.2)
Balance at January 1, 2023	$	6,780.4	$	913.2	$	161.8	$	17.6	$	7,873.0

In the fourth quarter of 2022, the Company performed a quantitative test for the FLIR reporting unit and qualitative tests for all other reporting units. The results of our annual impairment tests of goodwill indicated that no impairment existed in 2022, 2021 or 2020.


	2022						2021
	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
Acquired intangible assets (in millions):
Proprietary technology	$	1,667.7	$	497.4	$	1,170.3	$	1,767.7	$	358.2	$	1,409.5
Customer list/relationships	596.1		177.0		419.1		616.2		141.8		474.4
Patents	0.6		0.6		—		0.6		0.6		—
Non-compete agreements	0.9		0.9		—		0.9		0.9		—
Definite-lived trademarks	7.1		4.4		2.7		4.5		3.9		0.6
Backlog	16.1		15.8		0.3		16.3		16.3		—
Acquired intangible assets subject to amortization	2,288.5		696.1		1,592.4		2,406.2		521.7		1,884.5
Acquired intangible assets not subject to amortization:
Indefinite-lived trademarks	848.2		—		848.2		857.1		—		857.1
Total acquired intangible assets	$	3,136.7	$	696.1	$	2,440.6	$	3,263.3	$	521.7	$	2,741.6

Amortizable acquired intangible assets are amortized on a straight-line basis over their estimated useful lives ranging from one to 15 years. Consistent with Teledyne’s growth strategy, the Company seeks to acquire companies in markets characterized by high barriers to entry and that include specialized products not likely to be commoditized. Given our markets and highly engineered nature of our products, the rates of new technology development and customer acquisition and/or attrition are often not volatile. As such, Teledyne believes the value of acquired intangible assets decline in a linear, as opposed to an accelerated fashion, and the Company believes amortization on a straight-line basis is appropriate. Recorded impairment charges to intangible assets were not material in 2022, 2021 or 2020. The expected future amortization expense for the next five years is as follows (in millions): 2023 - $195.2; 2024 - $193.1; 2025 - $187.7; 2026 - $185.4; 2027 - $178.8.

The estimated remaining useful lives by asset category as of January 1, 2023, are as follows:


Acquired intangibles subject to amortization						Weighted average remaining useful life in years
Proprietary technology						7.5
Customer list/relationships						10.7
Patents						1.3
Backlog						0.7
Trademarks						4.0
Total acquired intangibles subject to amortization						8.2