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Derivative Instruments
 12 Months Ended
Jan. 01, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
As of January 1, 2023, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy Canadian dollars and to sell U.S. dollars totaling $125.8 million. These foreign currency forward contracts have maturities ranging from March 2023 to February 2024. As of January 1, 2023, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy British pounds and to sell U.S. dollars totaling $16.8 million. These foreign currency forward contracts have maturities ranging from March 2023 to February 2024.
The cross currency swaps have notional amounts of €130.0 million and $125.0 million, and €156.0 million and $150.0 million, and mature in March 2023 and October 2024, respectively. The interest rate swap has a notional amount of $125.0 million U.S. dollars and matures in March 2023.
In addition, the Company utilizes foreign currency forward contracts which are not designated as hedging instruments for accounting purposes to mitigate foreign exchange rate risk associated with foreign currency denominated monetary assets and liabilities, including intercompany receivables and payables. As of January 1, 2023, Teledyne had foreign currency contracts of this type primarily in the following pairs (in millions):
Contracts to BuyContracts to Sell
CurrencyAmountCurrencyAmount
Canadian Dollars$236.1 U.S. DollarsUS$178.6 
Euros€237.4 U.S. DollarsUS$237.2 
Great Britain Pounds£89.5 U.S. DollarsUS$104.9 
U.S. DollarsUS$15.6 Swedish Kronakr168.8 
Danish KroneKr.74.6 U.S. DollarsUS$10.0 
Swedish Kronakr491.1 Euros€46.0 
Norwegian Kronekr214.7 Swedish Kronakr231.4 
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.
All derivatives are recorded on the balance sheet at fair value. The accounting for income and losses resulting from changes in fair value depends on the use of the derivative and whether it is designated and qualifies for hedge accounting. Teledyne does not use foreign currency forward contracts for speculative or trading purposes.
The effect of derivative instruments designated as cash flow hedges for 2022 and 2021 was as follows (in millions):
 20222021
Net gain (loss) recognized in AOCI - foreign exchange contracts (a)$17.6 $23.6 
Net gain (loss) recognized in AOCI - interest rate contracts$1.7 $0.4 
Net gain (loss) reclassified from AOCI into revenue/cost of sales - foreign exchange contracts$4.8 $9.2 
Net gain (loss) reclassified from AOCI into interest expense - foreign exchange contracts$5.2 $3.4 
Net gain (loss) reclassified from AOCI into interest expense -interest rate contracts$0.4 $(1.6)
Net gain (loss) reclassified from AOCI into other income and expense, net - foreign exchange contracts (b)$15.5 $20.7 
(a)Effective portion
(b)Amount reclassified to offset earnings impact of liability hedged by cross currency swap
Net deferred losses recorded in AOCI, net of tax, for forward contracts that will mature in the next 12 months total $5.0 million. These losses are expected to be offset by anticipated gains in the value of the forecasted underlying hedged item. Amounts related to the cross currency swaps and interests rate swap expected to be reclassified from AOCI into income in the next 12 months total $7.2 million.
The effect of derivative instruments not designated as cash flow hedges recognized in other income and expense for 2022 and 2021 was an expense of $32.0 million and income of $21.9 million, respectively.