false2019Q30001094285--12-29P3YP3Y2.472.70P1Y00010942852018-12-312019-09-29xbrli:shares00010942852019-10-23iso4217:USD00010942852019-07-012019-09-2900010942852018-07-022018-09-3000010942852018-01-012018-09-30iso4217:USDxbrli:shares00010942852019-09-2900010942852018-12-300001094285us-gaap:CommonStockMember2018-12-300001094285us-gaap:AdditionalPaidInCapitalMember2018-12-300001094285us-gaap:TreasuryStockMember2018-12-300001094285us-gaap:RetainedEarningsMember2018-12-300001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-300001094285us-gaap:RetainedEarningsMember2018-12-312019-03-3100010942852018-12-312019-03-310001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-312019-03-310001094285us-gaap:AdditionalPaidInCapitalMember2018-12-312019-03-310001094285us-gaap:TreasuryStockMember2018-12-312019-03-310001094285us-gaap:CommonStockMember2019-03-310001094285us-gaap:AdditionalPaidInCapitalMember2019-03-310001094285us-gaap:TreasuryStockMember2019-03-310001094285us-gaap:RetainedEarningsMember2019-03-310001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-3100010942852019-03-310001094285us-gaap:RetainedEarningsMember2019-04-012019-06-3000010942852019-04-012019-06-300001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001094285us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001094285us-gaap:TreasuryStockMember2019-04-012019-06-300001094285us-gaap:CommonStockMember2019-06-300001094285us-gaap:AdditionalPaidInCapitalMember2019-06-300001094285us-gaap:TreasuryStockMember2019-06-300001094285us-gaap:RetainedEarningsMember2019-06-300001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-3000010942852019-06-300001094285us-gaap:RetainedEarningsMember2019-07-012019-09-290001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-290001094285us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-290001094285us-gaap:TreasuryStockMember2019-07-012019-09-290001094285us-gaap:CommonStockMember2019-09-290001094285us-gaap:AdditionalPaidInCapitalMember2019-09-290001094285us-gaap:TreasuryStockMember2019-09-290001094285us-gaap:RetainedEarningsMember2019-09-290001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-290001094285us-gaap:CommonStockMember2017-12-310001094285us-gaap:AdditionalPaidInCapitalMember2017-12-310001094285us-gaap:TreasuryStockMember2017-12-310001094285us-gaap:RetainedEarningsMember2017-12-310001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-3100010942852017-12-310001094285us-gaap:RetainedEarningsMember2018-01-012018-04-0100010942852018-01-012018-04-010001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-04-010001094285us-gaap:AdditionalPaidInCapitalMember2018-01-012018-04-010001094285us-gaap:TreasuryStockMember2018-01-012018-04-010001094285us-gaap:RetainedEarningsMember2018-01-010001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-0100010942852018-01-010001094285us-gaap:CommonStockMember2018-04-010001094285us-gaap:AdditionalPaidInCapitalMember2018-04-010001094285us-gaap:TreasuryStockMember2018-04-010001094285us-gaap:RetainedEarningsMember2018-04-010001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-0100010942852018-04-010001094285us-gaap:RetainedEarningsMember2018-04-022018-07-0100010942852018-04-022018-07-010001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-022018-07-010001094285us-gaap:AdditionalPaidInCapitalMember2018-04-022018-07-010001094285us-gaap:TreasuryStockMember2018-04-022018-07-010001094285us-gaap:CommonStockMember2018-07-010001094285us-gaap:AdditionalPaidInCapitalMember2018-07-010001094285us-gaap:TreasuryStockMember2018-07-010001094285us-gaap:RetainedEarningsMember2018-07-010001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-0100010942852018-07-010001094285us-gaap:RetainedEarningsMember2018-07-022018-09-300001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-022018-09-300001094285us-gaap:AdditionalPaidInCapitalMember2018-07-022018-09-300001094285us-gaap:TreasuryStockMember2018-07-022018-09-300001094285us-gaap:RetainedEarningsMember2018-07-020001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-0200010942852018-07-020001094285us-gaap:CommonStockMember2018-09-300001094285us-gaap:AdditionalPaidInCapitalMember2018-09-300001094285us-gaap:TreasuryStockMember2018-09-300001094285us-gaap:RetainedEarningsMember2018-09-300001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-3000010942852018-09-300001094285us-gaap:AccountingStandardsUpdate201602Member2018-12-31tdy:leasexbrli:pure0001094285us-gaap:AccumulatedTranslationAdjustmentMember2019-06-300001094285us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-06-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-06-300001094285us-gaap:AccumulatedTranslationAdjustmentMember2019-07-012019-09-290001094285us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-07-012019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-07-012019-09-290001094285us-gaap:AccumulatedTranslationAdjustmentMember2019-09-290001094285us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-09-290001094285us-gaap:AccumulatedTranslationAdjustmentMember2018-07-010001094285us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-07-010001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-07-010001094285us-gaap:AccumulatedTranslationAdjustmentMember2018-07-022018-09-300001094285us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-07-022018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-07-022018-09-300001094285us-gaap:AccumulatedTranslationAdjustmentMember2018-09-300001094285us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-09-300001094285us-gaap:AccumulatedTranslationAdjustmentMember2018-12-300001094285us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-12-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-300001094285us-gaap:AccumulatedTranslationAdjustmentMember2018-12-312019-09-290001094285us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-12-312019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-12-312019-09-290001094285us-gaap:AccumulatedTranslationAdjustmentMember2017-12-310001094285us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2017-12-310001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2017-12-310001094285us-gaap:AccumulatedTranslationAdjustmentMember2018-01-012018-09-300001094285us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-01-012018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2018-01-012018-09-300001094285us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-09-300001094285us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2019-07-012019-09-290001094285us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-07-022018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2019-07-012019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2018-07-022018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2019-07-012019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2018-07-022018-09-300001094285us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2018-12-312019-09-290001094285us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2018-01-012018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2018-12-312019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2018-01-012018-09-300001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2018-12-312019-09-290001094285us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2018-01-012018-09-300001094285tdy:RoperTechnologiesIncMember2019-02-052019-02-050001094285tdy:A3MGasAndFlameDetectionBusinessMember2019-08-012019-08-010001094285tdy:MicralyneIncMember2019-08-302019-08-300001094285tdy:AcquisitionsIn2019Member2018-12-312019-09-29tdy:acquisition0001094285us-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285tdy:CurrencySwapAndInterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:ForeignExchangeForwardMembertdy:SellUsDollarsAndBuyCanadianDollarsMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285tdy:SellUsDollarsAndBuyGreatBritainPoundsMemberus-gaap:ForeignExchangeForwardMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-29iso4217:EUR0001094285tdy:CurrencySwapMaturingOctober2019Memberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285tdy:CurrencySwapMaturingMarch2023Memberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-07-012019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-07-022018-09-300001094285us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-312019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-01-012018-09-300001094285us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-07-012019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-07-022018-09-300001094285us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-312019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:SalesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-01-012018-09-300001094285us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-07-012019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-07-022018-09-300001094285us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-312019-09-290001094285us-gaap:CashFlowHedgingMemberus-gaap:InterestExpenseMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-01-012018-09-300001094285us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-07-012019-09-290001094285us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-07-022018-09-300001094285us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-312019-09-290001094285us-gaap:OtherOperatingIncomeExpenseMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-01-012018-09-300001094285us-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMembersrt:MinimumMember2019-09-29iso4217:CAD0001094285us-gaap:NondesignatedMemberus-gaap:LongMemberus-gaap:ForeignExchangeForwardMembertdy:SellUsDollarsAndBuyCanadianDollarsMember2019-09-290001094285us-gaap:ShortMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMembertdy:SellUsDollarsAndBuyCanadianDollarsMember2019-09-290001094285us-gaap:NondesignatedMemberus-gaap:LongMembertdy:SellEurosandBuyCanadianDollarsMemberus-gaap:ForeignExchangeForwardMember2019-09-290001094285us-gaap:ShortMemberus-gaap:NondesignatedMembertdy:SellEurosandBuyCanadianDollarsMemberus-gaap:ForeignExchangeForwardMember2019-09-29iso4217:GBP0001094285tdy:SellUsDollarsAndBuyGreatBritainPoundsMemberus-gaap:NondesignatedMemberus-gaap:LongMemberus-gaap:ForeignExchangeForwardMember2019-09-290001094285us-gaap:ShortMembertdy:SellUsDollarsAndBuyGreatBritainPoundsMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2019-09-290001094285tdy:SellUSDollarsandBuyEurosMemberus-gaap:NondesignatedMemberus-gaap:LongMemberus-gaap:ForeignExchangeForwardMember2019-09-290001094285us-gaap:ShortMembertdy:SellUSDollarsandBuyEurosMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMember2019-09-29iso4217:DKK0001094285us-gaap:NondesignatedMemberus-gaap:LongMemberus-gaap:ForeignExchangeForwardMembertdy:SellUSDollarsAndBuyDanishKroneMemberMember2019-09-290001094285us-gaap:ShortMemberus-gaap:NondesignatedMemberus-gaap:ForeignExchangeForwardMembertdy:SellUSDollarsAndBuyDanishKroneMemberMember2019-09-290001094285us-gaap:NondesignatedMemberus-gaap:LongMembertdy:SellEurosAndBuyGreatBritishPoundsMemberus-gaap:ForeignExchangeForwardMember2019-09-290001094285us-gaap:ShortMemberus-gaap:NondesignatedMembertdy:SellEurosAndBuyGreatBritishPoundsMemberus-gaap:ForeignExchangeForwardMember2019-09-290001094285us-gaap:NondesignatedMember2019-07-012019-09-290001094285us-gaap:NondesignatedMember2018-12-312019-09-290001094285us-gaap:NondesignatedMember2018-07-022018-09-300001094285us-gaap:NondesignatedMember2018-01-012018-09-300001094285us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:ForeignExchangeContractMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285tdy:CurrencySwapMaturingOctober2019Memberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285tdy:CurrencySwapMaturingOctober2019Memberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285tdy:CurrencySwapMaturingMarch2023Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285tdy:CurrencySwapMaturingMarch2023Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285us-gaap:InterestRateSwapMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:InterestRateSwapMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285us-gaap:CurrencySwapMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:CurrencySwapMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285us-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:ForeignExchangeContractMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285tdy:CurrencySwapMaturingOctober2019Memberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285tdy:CurrencySwapMaturingOctober2019Memberus-gaap:OtherCurrentLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285us-gaap:DesignatedAsHedgingInstrumentMember2019-09-290001094285us-gaap:DesignatedAsHedgingInstrumentMember2018-12-300001094285us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2019-09-290001094285us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2018-12-300001094285us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:AccruedLiabilitiesMember2019-09-290001094285us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:AccruedLiabilitiesMember2018-12-300001094285us-gaap:NondesignatedMember2019-09-290001094285us-gaap:NondesignatedMember2018-12-300001094285us-gaap:EmployeeStockOptionMembertdy:EmployeeMember2018-12-312019-09-290001094285srt:ScenarioForecastMember2018-12-312019-12-290001094285us-gaap:EmployeeStockOptionMember2018-12-312019-09-290001094285tdy:EmployeeandNonEmployeeStockOptionMember2019-06-300001094285tdy:EmployeeandNonEmployeeStockOptionMember2018-12-300001094285tdy:EmployeeandNonEmployeeStockOptionMember2019-07-012019-09-290001094285tdy:EmployeeandNonEmployeeStockOptionMember2018-12-312019-09-290001094285tdy:EmployeeandNonEmployeeStockOptionMember2019-09-290001094285us-gaap:PerformanceSharesMember2018-12-312019-03-310001094285us-gaap:PerformanceSharesMember2018-01-012018-04-010001094285us-gaap:PerformanceSharesMember2019-09-290001094285srt:MaximumMemberus-gaap:PerformanceSharesMember2019-09-290001094285us-gaap:RestrictedStockMember2018-12-300001094285us-gaap:RestrictedStockMember2018-12-312019-09-290001094285us-gaap:RestrictedStockMember2019-09-290001094285srt:MinimumMember2018-12-312019-09-290001094285srt:MaximumMember2018-12-312019-09-2900010942852019-09-302019-09-2900010942852020-09-302019-09-290001094285us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2018-12-300001094285us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2019-09-290001094285us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2019-03-310001094285us-gaap:LoansPayableMembertdy:UnsecuredTermLoanDueOct2019Member2019-09-290001094285us-gaap:LoansPayableMembertdy:UnsecuredTermLoanDueOct2019Member2018-12-300001094285us-gaap:LoansPayableMembertdy:UnsecuredTermLoanDueOct2019Member2019-03-310001094285tdy:SeniorUnsecuredNotesDueDecember42019Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:SeniorUnsecuredNotesDueDecember42019Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:UnsecuredSeniorNotesDueSeptemberFifteenTwoThousandTwentyMemberMemberus-gaap:SeniorNotesMember2019-09-290001094285tdy:UnsecuredSeniorNotesDueSeptemberFifteenTwoThousandTwentyMemberMemberus-gaap:SeniorNotesMember2019-03-310001094285tdy:SeniorUnsecuredNotes2.81DueNovember52020Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:SeniorUnsecuredNotes2.81DueNovember52020Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:SeniorUnsecuredNotesDueDecember62021Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:SeniorUnsecuredNotesDueDecember62021Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:A3.28percentUnsecuredSeniorNotesDueNovember2022Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:A3.28percentUnsecuredSeniorNotesDueNovember2022Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:A0.70UnsecuredSeniorNotesdueApril2022Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:A0.70UnsecuredSeniorNotesdueApril2022Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:A0.92UnsecuredSeniorNotesdueApril2023Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:A0.92UnsecuredSeniorNotesdueApril2023Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:A1.09UnsecuredSeniorNotesdueApril2024Memberus-gaap:SeniorNotesMember2019-09-290001094285tdy:A1.09UnsecuredSeniorNotesdueApril2024Memberus-gaap:SeniorNotesMember2019-03-310001094285tdy:OtherUnsecuredDebtDueThrough2018Member2019-09-290001094285tdy:OtherUnsecuredDebtDueThrough2018Member2019-03-310001094285us-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2019-09-290001094285us-gaap:LetterOfCreditMember2019-09-290001094285us-gaap:ReserveForEnvironmentalCostsMember2019-09-290001094285country:US2019-09-290001094285country:US2018-12-300001094285us-gaap:PensionPlansDefinedBenefitMember2019-07-012019-09-290001094285us-gaap:PensionPlansDefinedBenefitMember2018-07-022018-09-300001094285us-gaap:PensionPlansDefinedBenefitMember2018-12-312019-09-290001094285us-gaap:PensionPlansDefinedBenefitMember2018-01-012018-09-300001094285us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2019-07-012019-09-290001094285us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-07-022018-09-300001094285us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-12-312019-09-290001094285us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2018-01-012018-09-30tdy:segment0001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMembertdy:ElectronicManufacturingServicesProductsMember2018-01-012018-12-300001094285us-gaap:OperatingSegmentsMembertdy:ElectronicManufacturingServicesProductsMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-12-300001094285us-gaap:OperatingSegmentsMembertdy:MicrowaveAndManufacturedCompositePartsMembertdy:EngineeredSystemsMembercountry:GB2018-01-012018-12-300001094285us-gaap:OperatingSegmentsMembertdy:InstrumentationMember2019-07-012019-09-290001094285us-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-07-022018-09-300001094285us-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-12-312019-09-290001094285us-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:DigitalImagingMemberus-gaap:OperatingSegmentsMember2019-07-012019-09-290001094285tdy:DigitalImagingMemberus-gaap:OperatingSegmentsMember2018-07-022018-09-300001094285tdy:DigitalImagingMemberus-gaap:OperatingSegmentsMember2018-12-312019-09-290001094285tdy:DigitalImagingMemberus-gaap:OperatingSegmentsMember2018-01-012018-09-300001094285us-gaap:OperatingSegmentsMembertdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285us-gaap:OperatingSegmentsMembertdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285us-gaap:OperatingSegmentsMembertdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285us-gaap:OperatingSegmentsMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMember2019-07-012019-09-290001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMember2018-07-022018-09-300001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMember2018-12-312019-09-290001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMember2018-01-012018-09-300001094285us-gaap:CorporateNonSegmentMember2019-07-012019-09-290001094285us-gaap:CorporateNonSegmentMember2018-07-022018-09-300001094285us-gaap:CorporateNonSegmentMember2018-12-312019-09-290001094285us-gaap:CorporateNonSegmentMember2018-01-012018-09-300001094285us-gaap:IntersegmentEliminationMember2019-07-012019-09-290001094285us-gaap:IntersegmentEliminationMember2018-12-312019-09-290001094285us-gaap:IntersegmentEliminationMember2018-07-022018-09-300001094285us-gaap:IntersegmentEliminationMember2018-01-012018-09-300001094285us-gaap:OperatingSegmentsMembertdy:InstrumentationMember2019-09-290001094285us-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-12-300001094285tdy:DigitalImagingMemberus-gaap:OperatingSegmentsMember2019-09-290001094285tdy:DigitalImagingMemberus-gaap:OperatingSegmentsMember2018-12-300001094285us-gaap:OperatingSegmentsMembertdy:AerospaceAndDefenseElectronicsMember2019-09-290001094285us-gaap:OperatingSegmentsMembertdy:AerospaceAndDefenseElectronicsMember2018-12-300001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMember2019-09-290001094285us-gaap:OperatingSegmentsMembertdy:EngineeredSystemsMember2018-12-300001094285us-gaap:CorporateNonSegmentMember2019-09-290001094285us-gaap:CorporateNonSegmentMember2018-12-30tdy:product_line0001094285tdy:InstrumentationMember2019-09-290001094285tdy:EngineeredSystemsMember2019-09-290001094285tdy:DigitalImagingMember2019-09-290001094285tdy:AerospaceAndDefenseElectronicsMember2019-09-290001094285us-gaap:OperatingSegmentsMembertdy:MarineInstrumentationMembertdy:InstrumentationMember2019-07-012019-09-290001094285us-gaap:OperatingSegmentsMembertdy:MarineInstrumentationMembertdy:InstrumentationMember2018-07-022018-09-300001094285us-gaap:OperatingSegmentsMembertdy:MarineInstrumentationMembertdy:InstrumentationMember2018-12-312019-09-290001094285us-gaap:OperatingSegmentsMembertdy:MarineInstrumentationMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:EnvironmentalInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2019-07-012019-09-290001094285tdy:EnvironmentalInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-07-022018-09-300001094285tdy:EnvironmentalInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:EnvironmentalInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:TestAndMeasurementInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2019-07-012019-09-290001094285tdy:TestAndMeasurementInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-07-022018-09-300001094285tdy:TestAndMeasurementInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:TestAndMeasurementInstrumentationMemberus-gaap:OperatingSegmentsMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:InstrumentationMembertdy:USGovernmentMember2019-07-012019-09-290001094285tdy:CommercialMembertdy:InstrumentationMember2019-07-012019-09-290001094285tdy:InstrumentationMember2019-07-012019-09-290001094285tdy:InstrumentationMembertdy:USGovernmentMember2018-12-312019-09-290001094285tdy:CommercialMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:InstrumentationMember2018-12-312019-09-290001094285tdy:DigitalImagingMembertdy:USGovernmentMember2019-07-012019-09-290001094285tdy:DigitalImagingMembertdy:CommercialMember2019-07-012019-09-290001094285tdy:DigitalImagingMember2019-07-012019-09-290001094285tdy:DigitalImagingMembertdy:USGovernmentMember2018-12-312019-09-290001094285tdy:DigitalImagingMembertdy:CommercialMember2018-12-312019-09-290001094285tdy:DigitalImagingMember2018-12-312019-09-290001094285tdy:AerospaceAndDefenseElectronicsMembertdy:USGovernmentMember2019-07-012019-09-290001094285tdy:CommercialMembertdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285tdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285tdy:AerospaceAndDefenseElectronicsMembertdy:USGovernmentMember2018-12-312019-09-290001094285tdy:CommercialMembertdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285tdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMembertdy:USGovernmentMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMembertdy:CommercialMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMembertdy:USGovernmentMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMembertdy:CommercialMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMember2018-12-312019-09-290001094285tdy:USGovernmentMember2019-07-012019-09-290001094285tdy:CommercialMember2019-07-012019-09-290001094285tdy:USGovernmentMember2018-12-312019-09-290001094285tdy:CommercialMember2018-12-312019-09-290001094285us-gaap:FixedPriceContractMembertdy:InstrumentationMember2019-07-012019-09-290001094285tdy:CostTypeMembertdy:InstrumentationMember2019-07-012019-09-290001094285us-gaap:FixedPriceContractMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:CostTypeMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:DigitalImagingMemberus-gaap:FixedPriceContractMember2019-07-012019-09-290001094285tdy:DigitalImagingMembertdy:CostTypeMember2019-07-012019-09-290001094285tdy:DigitalImagingMemberus-gaap:FixedPriceContractMember2018-12-312019-09-290001094285tdy:DigitalImagingMembertdy:CostTypeMember2018-12-312019-09-290001094285us-gaap:FixedPriceContractMembertdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285tdy:CostTypeMembertdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285us-gaap:FixedPriceContractMembertdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285tdy:CostTypeMembertdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMemberus-gaap:FixedPriceContractMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMembertdy:CostTypeMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMemberus-gaap:FixedPriceContractMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMembertdy:CostTypeMember2018-12-312019-09-290001094285us-gaap:FixedPriceContractMember2019-07-012019-09-290001094285tdy:CostTypeMember2019-07-012019-09-290001094285us-gaap:FixedPriceContractMember2018-12-312019-09-290001094285tdy:CostTypeMember2018-12-312019-09-290001094285country:UStdy:InstrumentationMember2019-07-012019-09-290001094285srt:EuropeMembertdy:InstrumentationMember2019-07-012019-09-290001094285tdy:OtherGeographicalAreasMembertdy:InstrumentationMember2019-07-012019-09-290001094285country:UStdy:InstrumentationMember2018-12-312019-09-290001094285srt:EuropeMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:OtherGeographicalAreasMembertdy:InstrumentationMember2018-12-312019-09-290001094285tdy:DigitalImagingMembercountry:US2019-07-012019-09-290001094285tdy:DigitalImagingMembersrt:EuropeMember2019-07-012019-09-290001094285tdy:DigitalImagingMembertdy:OtherGeographicalAreasMember2019-07-012019-09-290001094285tdy:DigitalImagingMembercountry:US2018-12-312019-09-290001094285tdy:DigitalImagingMembersrt:EuropeMember2018-12-312019-09-290001094285tdy:DigitalImagingMembertdy:OtherGeographicalAreasMember2018-12-312019-09-290001094285country:UStdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285srt:EuropeMembertdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285tdy:OtherGeographicalAreasMembertdy:AerospaceAndDefenseElectronicsMember2019-07-012019-09-290001094285country:UStdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285srt:EuropeMembertdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285tdy:OtherGeographicalAreasMembertdy:AerospaceAndDefenseElectronicsMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMembercountry:US2019-07-012019-09-290001094285tdy:EngineeredSystemsMembersrt:EuropeMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMembertdy:OtherGeographicalAreasMember2019-07-012019-09-290001094285tdy:EngineeredSystemsMembercountry:US2018-12-312019-09-290001094285tdy:EngineeredSystemsMembersrt:EuropeMember2018-12-312019-09-290001094285tdy:EngineeredSystemsMembertdy:OtherGeographicalAreasMember2018-12-312019-09-290001094285country:US2019-07-012019-09-290001094285srt:EuropeMember2019-07-012019-09-290001094285tdy:OtherGeographicalAreasMember2019-07-012019-09-290001094285country:US2018-12-312019-09-290001094285srt:EuropeMember2018-12-312019-09-290001094285tdy:OtherGeographicalAreasMember2018-12-312019-09-290001094285tdy:InstrumentationMembertdy:USGovernmentMember2018-07-022018-09-300001094285tdy:CommercialMembertdy:InstrumentationMember2018-07-022018-09-300001094285tdy:InstrumentationMember2018-07-022018-09-300001094285tdy:InstrumentationMembertdy:USGovernmentMember2018-01-012018-09-300001094285tdy:CommercialMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:InstrumentationMember2018-01-012018-09-300001094285tdy:DigitalImagingMembertdy:USGovernmentMember2018-07-022018-09-300001094285tdy:DigitalImagingMembertdy:CommercialMember2018-07-022018-09-300001094285tdy:DigitalImagingMember2018-07-022018-09-300001094285tdy:DigitalImagingMembertdy:USGovernmentMember2018-01-012018-09-300001094285tdy:DigitalImagingMembertdy:CommercialMember2018-01-012018-09-300001094285tdy:DigitalImagingMember2018-01-012018-09-300001094285tdy:AerospaceAndDefenseElectronicsMembertdy:USGovernmentMember2018-07-022018-09-300001094285tdy:CommercialMembertdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285tdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285tdy:AerospaceAndDefenseElectronicsMembertdy:USGovernmentMember2018-01-012018-09-300001094285tdy:CommercialMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285tdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMembertdy:USGovernmentMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMembertdy:CommercialMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMembertdy:USGovernmentMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMembertdy:CommercialMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMember2018-01-012018-09-300001094285tdy:USGovernmentMember2018-07-022018-09-300001094285tdy:CommercialMember2018-07-022018-09-300001094285tdy:USGovernmentMember2018-01-012018-09-300001094285tdy:CommercialMember2018-01-012018-09-300001094285us-gaap:FixedPriceContractMembertdy:InstrumentationMember2018-07-022018-09-300001094285tdy:CostTypeMembertdy:InstrumentationMember2018-07-022018-09-300001094285us-gaap:FixedPriceContractMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:CostTypeMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:DigitalImagingMemberus-gaap:FixedPriceContractMember2018-07-022018-09-300001094285tdy:DigitalImagingMembertdy:CostTypeMember2018-07-022018-09-300001094285tdy:DigitalImagingMemberus-gaap:FixedPriceContractMember2018-01-012018-09-300001094285tdy:DigitalImagingMembertdy:CostTypeMember2018-01-012018-09-300001094285us-gaap:FixedPriceContractMembertdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285tdy:CostTypeMembertdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285us-gaap:FixedPriceContractMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285tdy:CostTypeMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMemberus-gaap:FixedPriceContractMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMembertdy:CostTypeMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMemberus-gaap:FixedPriceContractMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMembertdy:CostTypeMember2018-01-012018-09-300001094285us-gaap:FixedPriceContractMember2018-07-022018-09-300001094285tdy:CostTypeMember2018-07-022018-09-300001094285us-gaap:FixedPriceContractMember2018-01-012018-09-300001094285tdy:CostTypeMember2018-01-012018-09-300001094285country:UStdy:InstrumentationMember2018-07-022018-09-300001094285srt:EuropeMembertdy:InstrumentationMember2018-07-022018-09-300001094285tdy:OtherGeographicalAreasMembertdy:InstrumentationMember2018-07-022018-09-300001094285country:UStdy:InstrumentationMember2018-01-012018-09-300001094285srt:EuropeMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:OtherGeographicalAreasMembertdy:InstrumentationMember2018-01-012018-09-300001094285tdy:DigitalImagingMembercountry:US2018-07-022018-09-300001094285tdy:DigitalImagingMembersrt:EuropeMember2018-07-022018-09-300001094285tdy:DigitalImagingMembertdy:OtherGeographicalAreasMember2018-07-022018-09-300001094285tdy:DigitalImagingMembercountry:US2018-01-012018-09-300001094285tdy:DigitalImagingMembersrt:EuropeMember2018-01-012018-09-300001094285tdy:DigitalImagingMembertdy:OtherGeographicalAreasMember2018-01-012018-09-300001094285country:UStdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285srt:EuropeMembertdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285tdy:OtherGeographicalAreasMembertdy:AerospaceAndDefenseElectronicsMember2018-07-022018-09-300001094285country:UStdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285srt:EuropeMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285tdy:OtherGeographicalAreasMembertdy:AerospaceAndDefenseElectronicsMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMembercountry:US2018-07-022018-09-300001094285tdy:EngineeredSystemsMembersrt:EuropeMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMembertdy:OtherGeographicalAreasMember2018-07-022018-09-300001094285tdy:EngineeredSystemsMembercountry:US2018-01-012018-09-300001094285tdy:EngineeredSystemsMembersrt:EuropeMember2018-01-012018-09-300001094285tdy:EngineeredSystemsMembertdy:OtherGeographicalAreasMember2018-01-012018-09-300001094285country:US2018-07-022018-09-300001094285srt:EuropeMember2018-07-022018-09-300001094285tdy:OtherGeographicalAreasMember2018-07-022018-09-300001094285country:US2018-01-012018-09-300001094285srt:EuropeMember2018-01-012018-09-300001094285tdy:OtherGeographicalAreasMember2018-01-012018-09-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________
FORM 10-Q
_____________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 29, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission file number 1-15295
_____________________________________
TELEDYNE TECHNOLOGIES INCORPORATED
(Exact name of registrant as specified in its charter)
_____________________________________
Delaware   25-1843385
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification Number)
1049 Camino Dos Rios
Thousand Oaks California 91360-2362
(Address of principal executive offices)   (Zip Code)
805 373-4545
(Registrant’s telephone number, including area code)
____________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value TDY New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes  ☐
    No  
There were 36,470,156 shares of common stock, $.01 par value per share, outstanding as of October 23, 2019.


TELEDYNE TECHNOLOGIES INCORPORATED
TABLE OF CONTENTS

1

PART I FINANCIAL INFORMATION
 
Item 1. Financial Statements
TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 29, 2019 AND SEPTEMBER 30, 2018
(Unaudited - Amounts in millions, except per-share amounts)
Third Quarter Nine Months
  2019 2018 2019 2018
Net sales $ 802.2    $ 725.3    $ 2,329.4    $ 2,153.4   
Costs and expenses
Cost of sales 487.7    446.2    1,415.2    1,331.4   
Selling, general and administrative expenses 185.8    173.6    556.3    516.6   
Total costs and expenses 673.5    619.8    1,971.5    1,848.0   
Operating income
128.7    105.5    357.9    305.4   
Interest and debt expense, net (5.5)   (6.0)   (16.3)   (19.8)  
Non-service retirement benefit income 1.9    3.4    6.1    10.1   
Other expense, net (1.7)   (2.7)   (3.5)   (8.9)  
Income before income taxes
123.4    100.2    344.2    286.8   
Provision for income taxes 16.7    9.9    57.6    44.1   
Net income $ 106.7    $ 90.3    $ 286.6    $ 242.7   
Basic earnings per common share $ 2.93    $ 2.52    $ 7.92    $ 6.80   
Weighted average common shares outstanding 36.4    35.9    36.2    35.7   
Diluted earnings per common share $ 2.84    $ 2.43    $ 7.66    $ 6.56   
Weighted average diluted common shares outstanding 37.6    37.2    37.4    37.0   
The accompanying notes are an integral part of these condensed consolidated financial statements.

TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 29, 2019 AND SEPTEMBER 30, 2018
(Unaudited - Amounts in millions)
  Third Quarter Nine Months
  2019 2018 2019 2018
Net income $ 106.7    $ 90.3    $ 286.6    $ 242.7   
Other comprehensive income (loss):
Foreign exchange translation adjustment (27.4)   (0.8)   (15.0)   (42.9)  
Hedge activity, net of tax (1.1)   2.5    2.0    (2.0)  
Pension and postretirement benefit adjustments, net of tax 4.9    4.8    14.4    14.2   
Other comprehensive income (loss) (23.6)   6.5    1.4    (30.7)  
Comprehensive income $ 83.1    $ 96.8    $ 288.0    $ 212.0   
The accompanying notes are an integral part of these condensed consolidated financial statements.
2

TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited - Amounts in millions, except share amounts)
September 29, 2019 December 30, 2018
Assets
Current Assets
Cash $ 128.5    $ 142.5   
Accounts receivable, net 448.4    416.5   
Unbilled receivables, net 195.3    145.3   
Inventories, net 404.4    364.3   
Prepaid expenses and other current assets 61.5    45.8   
Total current assets 1,238.1    1,114.4   
Property, plant and equipment, net of accumulated depreciation and amortization of $608.9 at September 29, 2019 and $566.0
     at December 30, 2018
468.2    442.6   
Goodwill 2,007.8    1,735.2   
Acquired intangibles, net 439.9    344.3   
Prepaid pension assets 108.0    88.2   
Operating lease right-of-use assets 130.2    —   
Other assets, net 87.4    84.6   
Total Assets $ 4,479.6    $ 3,809.3   
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable $ 244.9    $ 227.8   
Accrued liabilities 384.5    355.6   
Current portion of long-term debt and other debt 206.1    137.4   
Total current liabilities 835.5    720.8   
Long-term debt 719.3    610.1   
Long-term operating lease liabilities 122.6    —   
Other long-term liabilities 231.2    248.7   
Total Liabilities 1,908.6    1,579.6   
Commitments and contingencies
Stockholders’ Equity
Preferred stock, $0.01 par value; outstanding shares - none
—    —   
Common stock, $0.01 par value; authorized 125,000,000 shares; issued shares: 37,697,865 at September 29, 2019 and December 30, 2018; outstanding shares: 36,468,438 at September 29, 2019 and 36,087,297 at December 30, 2018
0.4    0.4   
Additional paid-in capital 356.7    343.7   
Retained earnings 2,810.3    2,523.7   
Treasury stock, 1,229,427 shares at September 29, 2019 and 1,610,568 shares at December 30, 2018
(104.6)   (144.9)  
Accumulated other comprehensive loss (491.8)   (493.2)  
Total Stockholders’ Equity 2,571.0    2,229.7   
Total Liabilities and Stockholders’ Equity $ 4,479.6    $ 3,809.3   
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In millions)
Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total
Balance, December 30, 2018 $ 0.4    $ 343.7    $ (144.9)   $ 2,523.7    $ (493.2)   $ 2,229.7   
Net income —    —    —    75.3    —    75.3   
Other comprehensive income, net of tax —    —    —    —    23.4    23.4   
Treasury stock issued —    (15.0)   15.0    —    —    —   
Stock-based compensation —    10.9    —    —    —    10.9   
Exercise of stock options and other —    10.2    —    —    —    10.2   
Balance, March 31, 2019 0.4    349.8    (129.9)   2,599.0    (469.8)   2,349.5   
Net income —    —    —    104.6    —    104.6   
Other comprehensive income, net of tax —    —    —    —    1.6    1.6   
Treasury stock issued —    (14.7)   14.7    —    —    —   
Stock-based compensation —    6.8    —    —    —    6.8   
Exercise of stock options and other —    10.5    —    —    —    10.5   
Balance, June 30, 2019 0.4    352.4    (115.2)   2,703.6    (468.2)   2,473.0   
Net income —    —    —    106.7    —    106.7   
Other comprehensive income, net of tax —    —    —    —    (23.6)   (23.6)  
Treasury stock issued —    (10.6)   10.6    —    —    —   
Stock-based compensation —    6.4    —    —    —    6.4   
Exercise of stock options and other —    8.5    —    —    —    8.5   
Balance, September 29, 2019 $ 0.4    $ 356.7    $ (104.6)   $ 2,810.3    $ (491.8)   $ 2,571.0   

Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total
Balance, December 31, 2017 $ 0.4    $ 337.3    $ (200.7)   $ 2,139.6    $ (329.3)   $ 1,947.3   
Net income —    —    —    66.5    —    66.5   
Other comprehensive income, net of tax —    —    —    —    19.9    19.9   
Treasury stock issued —    (20.4)   20.4    —    —    —   
Stock-based compensation —    6.6    —    —    —    6.6   
Exercise of stock options and other —    12.3    —    —    —    12.3   
Cumulative effect of new accounting standards —    —    —    50.9    (47.6)   3.3   
Balance, April 1, 2018 0.4    335.8    (180.3)   2,257.0    (357.0)   2,055.9   
Net income —    —    —    85.9    —    85.9   
Other comprehensive loss, net of tax —    —    —    —    (57.1)   (57.1)  
Treasury stock issued —    (17.2)   17.2    —    —    —   
Stock-based compensation —    6.5    —    —    —    6.5   
Exercise of stock options and other —    11.6    —    —    —    11.6   
Balance, July 1, 2018 0.4    336.7    (163.1)   2,342.9    (414.1)   2,102.8   
Net income —    —    —    90.3    —    90.3   
Other comprehensive loss, net of tax —    —    —    —    6.5    6.5   
Treasury stock issued —    (16.7)   16.7    —    —    —   
Stock-based compensation —    5.6    —    —    —    5.6   
Exercise of stock options and other —    12.3    —    —    —    12.3   
Cumulative effect of new accounting standards —    —    —    (0.7)   —    (0.7)  
Balance, September 30, 2018 $ 0.4    $ 337.9    $ (146.4)   $ 2,432.5    $ (407.6)   $ 2,216.8   
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

TELEDYNE TECHNOLOGIES INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 29, 2019 AND SEPTEMBER 30, 2018
(Unaudited - Amounts in millions)
  Nine Months
  2019 2018
Operating Activities
Net income $ 286.6    $ 242.7   
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 82.6    83.7   
Stock-based compensation 24.1    18.8   
Changes in operating assets and liabilities excluding the effect of business acquired:
Accounts receivable (49.1)   (52.4)  
Inventories (2.7)   (10.1)  
Prepaid expenses and other assets (6.8)   3.7   
Accounts payable 7.3    18.3   
Accrued liabilities (0.8)   26.1   
Deferred and income taxes receivable/payable, net (18.7)   (6.1)  
Long-term assets (11.2)   (0.4)  
Other long-term liabilities 8.8    2.6   
     Other operating, net (5.9)   (5.5)  
Net cash provided by operating activities 314.2    321.4   
Investing Activities
Purchases of property, plant and equipment (64.5)   (68.1)  
Purchase of businesses, net of cash acquired (483.7)   —   
Other investing, net 0.4    1.2   
Net cash used in investing activities (547.8)   (66.9)  
Financing Activities
Net proceeds from (payments on) credit facility 196.0    (165.0)  
Net proceeds from (payments on) other debt (7.1)   (59.6)  
Proceeds from exercise of stock options 29.2    36.1   
Other financing, net (1.4)   (2.0)  
Net cash provided by (used in) financing activities 216.7    (190.5)  
Effect of exchange rate changes on cash 2.9    (8.8)  
Change in cash (14.0)   55.2   
Cash—beginning of period 142.5    70.9   
Cash—end of period $ 128.5    $ 126.1   
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

TELEDYNE TECHNOLOGIES INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
September 29, 2019

Note 1. 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 30, 2018 (“2018 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 September 29, 2019 and the consolidated results of operations, consolidated comprehensive income for the three and nine months then ended and consolidated cash flows for the nine months then ended. The results of operations and cash flows for the periods ended September 29, 2019 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.
In the third quarter of 2019, we realigned the segment reporting structure for certain business units, primarily related to certain refinements of our management reporting structure. This change primarily related to moving certain electronic manufacturing services products from the Aerospace and Defense Electronics segment to the Engineered Systems segment. The realignment had no impact on the Instrumentation Segment or the condensed consolidated statements of income, balance sheet or cash flows. See Note 13 to these condensed consolidated financial statements for additional information on the realignment. Previously reported segment data has been adjusted to reflect these changes.
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 (“AOCI”) to retained earnings for stranded tax effects resulting from the Tax Act reduction of the U.S. federal corporate income tax rate. In the second quarter of 2018, we elected to early adopt this ASU and elected to reclassify, in the period of enactment, stranded tax effects totaling $47.6 million from AOCI to retained earnings in our condensed consolidated balance sheet. The reclassification amount primarily included income tax effects related to our pension and postretirement benefit plans. Income tax effects remaining in AOCI will be released into earnings as the related pretax amounts are reclassified to earnings.
In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities.” This guidance better aligns an entity’s risk management activities and financial reporting for hedging relationships and expands and refines hedge accounting for both nonfinancial and financial risk components. This guidance also simplifies and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. We adopted the guidance as of December 31, 2018, the beginning of our 2019 fiscal year using the modified retrospective approach, there was no cumulative adjustment to retained earnings related to hedge ineffectiveness for the year ended December 31, 2018. Additionally, as a result of the adoption, we no longer disclose the ineffective portion of the change in fair value of our derivative financial instruments.  The entire change in the fair value of the cash flow hedging instruments aside from components excluded from the assessment of hedge effectiveness will now be recorded in other comprehensive income and subsequently reclassified to earnings in the period the hedged item impacts earnings.   The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.
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 guidance is effective for interim and annual reporting periods beginning after December 15, 2019, with early adoption permitted. We expect the adoption of this guidance will reduce the complexity surrounding the evaluation of goodwill for impairment. The impact of this guidance for the Company will depend on the outcomes of future goodwill impairment tests.
6

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance requires lessees to recognize most leases on their balance sheet as a right-of-use asset and a lease liability, other than leases that meet the definition of a short-term lease. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. We adopted the guidance on December 31, 2018, the beginning of our 2019 fiscal year using the modified retrospective transition method. Prior period comparative information was not adjusted. In addition, we elected the package of practical expedients permitted under the transition guidance, which among other things, allowed us to carry forward the historical lease classification. The adoption of this guidance did not have a material impact related to existing leases and as a result, a cumulative-effect adjustment was not recorded. Also, the adoption of the guidance did not have a material impact on our results of operations or cash flows. Upon adoption, on December 31, 2018, we recognized right-of-use assets of $128.4 million and a total lease liability of $139.8 million for operating leases.
Lease Commitments
We determine if an arrangement is a lease at inception. Effective December 31, 2018, operating leases are recorded as right-of-use assets, other long-term lease liabilities and current accrued liabilities in our condensed consolidated balance sheets. Finance leases are included in property and equipment, current accrued liabilities, and other long-term liabilities in our condensed consolidated balance sheets.  
Operating lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Since most of our leases do not provide an implicit rate, we use the incremental borrowing rate to determine the present value of lease payments at the commencement date. We use the implicit rate when readily determinable. Our lease agreements may include options to extend the lease term. We include those options to extend the lease term in determining the present value of the future lease payments when it is reasonably certain that we will exercise such option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.
Many lease agreements contain renewal options at either a fixed cost, fixed increase or market value adjustment. For those leases with renewal options, we will include the renewal options that are reasonably certain to be exercised for purposes of calculating the lease liability and corresponding right-of-use asset. We evaluate the likelihood of exercising each renewal option based on many factors, including the length of the renewal option and the future new lease cost, if known, or the estimated future new lease cost if it is not a fixed amount. 
Operating Leases
Teledyne has approximately 120 operating lease agreements, which are primarily for manufacturing facilities and office space. These agreements frequently include one or more renewal options and may require the Company to pay for utilities, taxes, insurance and maintenance expense. No lease agreement imposes a restriction on the Company’s ability to engage in financing transactions or enter into further lease agreements. At September 29, 2019, Teledyne has right-of-use assets of $130.2 million and a total lease liability for operating leases of $141.5 million of which $122.6 million is included in long-term lease liabilities and $18.9 million is included in current accrued liabilities.
At September 29, 2019, future minimum lease payments for operating leases with non-cancelable terms of more than one year were as follows (in millions):
Remainder of 2019 $ 6.4   
2020 24.2   
2021 22.1   
2022 19.2   
2023 17.5   
Thereafter 84.7   
Total minimum lease payments 174.1   
Less:
Imputed interest (32.6)  
Current portion (18.9)  
Present value of minimum lease payments, net of current portion $ 122.6   
The weighted average remaining lease term for operating leases is approximately 10 years and the weighted average discount rate is 4.07%. Operating lease expense was $6.0 million and $17.6 million for the third quarter and first nine months of 2019, respectively.

7

As previously disclosed in Note 13 of the Notes to Consolidated Financial Statements included in our 2018 Form 10-K and under the previous lease accounting, future minimum lease payments for operating leases having initial or remaining non-cancelable lease terms in excess of one year were as follows (in millions):
As of December 30, 2018
2019 $ 23.2   
2020 20.6   
2021 18.4   
2022 18.4   
2023 11.8   
Thereafter 48.2   
Total minimum lease payments $ 140.6   
Other
Our finance leases and subleases are not material.
Note 2. Accumulated Other Comprehensive Loss
The changes in AOCI by component, net of tax, for the third quarter and nine months ended September 29, 2019 and September 30, 2018 are as follows (in millions):
Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total
Balance as of June 30, 2019 $ (169.1)   $ (1.8)   $ (297.3)   $ (468.2)  
   Other comprehensive income/(loss) before reclassifications (27.4)   3.9    —    (23.5)  
   Amounts reclassified from AOCI —    (5.0)   4.9    (0.1)  
Net other comprehensive income/(loss) (27.4)   (1.1)   4.9    (23.6)  
Balance as of September 29, 2019 $ (196.5)   $ (2.9)   $ (292.4)   $ (491.8)  
Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total
Balance as of July 1, 2018 $ (144.1)   $ (4.0)   $ (266.0)   $ (414.1)  
   Other comprehensive income/(loss) before reclassifications (0.8)   2.5    —    1.7   
   Amounts reclassified from AOCI —    —    4.8    4.8   
Net other comprehensive income/(loss) (0.8)   2.5    4.8    6.5   
Reclassification of income tax effects for ASU 2018-02 —    $ —    —    —   
Balance as of September 30, 2018 $ (144.9)   $ (1.5)   $ (261.2)   $ (407.6)  




8

Foreign Currency Translation Cash Flow Hedges and Other Pension and Postretirement Benefits Total
Balance as of December 30, 2018 $ (181.5)   $ (4.9)   $ (306.8)   $ (493.2)  
   Other comprehensive income/(loss) before reclassifications (15.0)   7.7    —    (7.3)  
   Amounts reclassified from AOCI —    (5.7)   14.4    8.7   
Net other comprehensive income/(loss) (15.0)   2.0    14.4    1.4   
Balance as of September 29, 2019 $ (196.5)   $ (2.9)   $ (292.4)   $ (491.8)  
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 (42.9)   2.4    —    (40.5)  
   Amounts reclassified from AOCI —    (4.4)   14.2    9.8   
Net other comprehensive income/(loss) (42.9)   (2.0)   14.2    (30.7)  
Reclassification of income tax effects for ASU 2018-02 —    —    (47.6)   (47.6)  
Balance as of September 30, 2018 (144.9)   (1.5)   (261.2)   (407.6)  

The reclassifications out of AOCI to net income for the third quarter and nine months ended September 29, 2019 and September 30, 2018 are as follows (in millions):
Amount Reclassified from AOCI for the Three Months Ended Amount Reclassified from AOCI for the Three Months Ended Statement of Income
September 29, 2019 September 30, 2018 Presentation
(Gain) loss on cash flow hedges:
(Gain) loss recognized in income on derivatives $ (6.8)   $ —    See Note 4
Income tax impact 1.8    —    Provision for income taxes
Total $ (5.0)   $ —   
Amortization of defined benefit pension and postretirement plan items:
Amortization of prior service cost $ (1.5)   $ (1.5)   Costs and expenses
Amortization of net actuarial loss 8.0    7.8    Costs and expenses
Total before tax 6.5    6.3   
Income tax impact (1.6)   (1.5)   Provision for income taxes
Total $ 4.9    $ 4.8   

9

Amount Reclassified from AOCI Nine Months Ended Amount Reclassified from AOCI Nine Months Ended Statement of Income
September 29, 2019 September 30, 2018 Presentation
Gain on cash flow hedges:
Gain recognized in income on derivatives $ (7.6)   $ (6.2)   See Note 4
Income tax impact 1.9    1.8    Provision for income taxes
Total $ (5.7)   $ (4.4)  
Amortization of defined benefit pension and postretirement plan items:
Amortization of prior service cost (4.5)   (4.5)   Costs and expenses
Amortization of net actuarial loss 23.3    23.2    Costs and expenses
Total before tax 18.8    18.7   
Income tax impact $ (4.4)   $ (4.5)   Provision for income taxes
Total $ 14.4    $ 14.2   

Note 3. Business Combinations, Goodwill and Acquired Intangible Assets
Acquisition of the scientific imaging businesses of Roper Technologies, Inc.
On February 5, 2019, we acquired the scientific imaging businesses of Roper Technologies, Inc. for $225.0 million in cash. Principally located in the United States and Canada, the acquired businesses are part of the Digital Imaging segment. The acquired businesses include Princeton Instruments, Photometrics and Lumenera. The acquired businesses provide a range of imaging solutions, primarily for life sciences, academic research and customized OEM industrial imaging solutions. Princeton Instruments and Photometrics manufacture state-of-the-art cameras, spectrographs and optics for advanced research in physical sciences, life sciences research and spectroscopy imaging. Applications and markets include materials analysis, quantum technology and cell biology imaging using fluorescence and chemiluminescence. Lumenera primarily provides rugged USB-based customized cameras for markets such as traffic management, as well as life sciences applications.
Acquisition of the gas and flame detection business of 3M Company
On August 1, 2019, we acquired the gas and flame detection business of 3M Company for $230.0 million in cash. The gas and flame detection business includes Oldham, Simtronics, Gas Measurement Instruments (GMI), Detcon and select Scott Safety products. The gas and flame detection business provides a portfolio of fixed and portable industrial gas and flame detection instruments used in a variety of industries including petrochemical, power generation, oil and gas, food and beverage, mining and waste water treatment. Principally located in France, the United Kingdom and the United States, the acquired business is part of the Environmental Instrumentation product line of the Instrumentation segment.
Acquisition of Micralyne
On August 30, 2019, we acquired Micralyne Inc. for $25.0 million in cash. Based in Edmonton, Alberta, Canada, Micralyne is a privately-owned foundry providing Micro Electro Mechanical Systems or MEMS devices. In particular, Micralyne possesses unique microfluidic technology for biotech applications, as well as capabilities in non-silicon-based MEMS (e.g. gold, polymers) often required for human body compatibility. The acquired business is part of the Digital Imaging segment.
Goodwill and Acquired Intangible Assets
Teledyne’s goodwill was $2,007.8 million at September 29, 2019 and $1,735.2 million at December 30, 2018. The increase in the balance of goodwill in 2019 resulted from $292.6 million in goodwill from recent acquisitions. The majority of the goodwill resulting from the acquisition of the scientific imaging businesses of Roper Technologies, Inc. will be deductible for tax purposes. Goodwill resulting from the acquisition of the gas and flame detection business of 3M Company and Micralyne will not be deductible for tax purposes. Teledyne’s net acquired intangible assets were $439.9 million at September 29, 2019 and $344.3 million at December 30, 2018. The increase in the balance of net acquired intangible assets resulted from $129.2 million in acquired intangible assets from recent acquisitions, partially offset by amortization of acquired intangible assets. The Company is 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 three 2019 acquisitions since there was insufficient time between the acquisition dates and the end of the period to finalize the analysis.
Teledyne funded the acquisitions with borrowings under its credit facility and cash on hand. The results of each acquisition have been included in Teledyne’s results since the date of each respective acquisition.

10



Note 4. 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 U.S. 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 Teledyne DALSA and in British pounds for our UK companies, including Teledyne e2v. These contracts are designated and qualify as cash flow hedges. The Company has converted U.S. dollar denominated, variable rate and fixed rate debt obligations of a European subsidiary, into euro fixed rate obligations using a receive float, pay fixed cross currency swap, and a received fixed pay, fixed cross currency swap. These cross currency swaps are designated as a cash flow hedges. In addition the Company has converted domestic U.S. variable rate debt to fixed rate debt using a receive variable, pay fixed interest rate swap. The interest rate swap is also designated as a cash flow hedge.
Cash Flow Hedging Activities
The effectiveness of the forward contract cash flow hedges, the cross currency swap cash flow hedges, and the interest rate swap cash flow hedge is assessed prospectively and retrospectively on a monthly basis using quantitative and qualitative 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 hedges 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 revenue in our consolidated statements of income. For the cross currency swap and interest rate cash flow hedges, 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 liabilities. Net deferred losses recorded in AOCI, net of tax, for the forward contracts that will mature in the next twelve months total $0.7 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 interest rate swap expected to be reclassified from AOCI into income in the next twelve months total $3.2 million.
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 September 29, 2019, Teledyne had foreign currency forward contracts designated as cash flow hedges to buy Canadian dollars and to sell U.S. dollars totaling $79.7 million. These foreign currency forward contracts have maturities ranging from December 2019 to November 2020. Teledyne had foreign currency forward contracts designated as cash flow hedges to buy British pounds and to sell U.S. dollars totaling $20.0 million. These foreign currency forward contracts have maturities ranging from December 2019 to February 2021. The cross currency swap have notional amounts of €93.0 million and €113.0 million equivalent to $100.0 million and $125.0 million, and mature in October 2019 and March 2023, respectively. The interest rate swap has a notional amount of $125.0 million and matures in March 2023.

11

The effect of derivative instruments designated as cash flow hedges in the condensed consolidated financial statements for the third quarter and nine months ended September 29, 2019 and September 30, 2018 was as follows (in millions):
  Third Quarter Nine Months
  2019 2018 2019 2018
Net gain (loss) recognized in AOCI (a) $ 5.2    $ 3.2    $ 10.2    $ 3.1   
Net gain (loss) reclassified from AOCI into revenue (a) $ (0.3)   $ —    $ (1.5)   $ 2.0   
Net gain reclassified from AOCI into interest expense (a) $ 1.1    $ 0.6    $ 2.6    $ 1.7   
Net gain (loss) reclassified from AOCI into other income and expense, net (b) $ 6.0    $ (0.6)   $ 6.5    $ 2.4   
Net foreign exchange gain (loss) recognized in other income, net (c) $ (0.1)   $ (0.2)   $ (0.5)   $ (0.4)  
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 September 29, 2019, Teledyne had non-designated foreign currency contracts, (in excess of approximately $5.0 million) of this type in the following pairs (in millions):
Contracts to Buy Contracts to Sell
Currency Amount Currency Amount
Canadian Dollars $ 7.9    U.S. Dollars US$ 6.2   
Canadian Dollars $ 11.9    Euros 8.2   
Great Britain Pounds £ 44.9    U.S. Dollars US$ 55.5   
Euros 35.8    U.S. Dollars US$ 39.2   
Danish Krone DKR 66.2    U.S. Dollars US$ 9.7   
Great Britain Pounds £ 9.1    Euros 10.3   
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 third quarter and nine months ended September 29, 2019 was expense of $0.7 million and income $0.2 million, respectively. The effect of derivative instruments not designated as cash flow hedges in other income and expense for the third quarter and nine months ended September 30, 2018 was income of $3.1 million and expense of $14.7 million, respectively. The income/expense was largely offset by losses/gains in the value of the underlying hedged item excluding the impact of forward points.
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):
12

Asset/(Liability) Derivatives Balance sheet location September 29, 2019 December 30, 2018
Derivatives designated as hedging instruments:
Cash flow forward contracts Other assets $ 0.3    $ —   
Cross currency swap Other current assets 0.1    —   
Cross currency swap Other assets 2.7    —   
Interest rate contracts Other current assets 0.3    —   
Cash flow cross currency swap Accrued liabilities (1.7)   (6.3)  
Cash flow forward contracts Accrued liabilities (1.4)   (4.2)  
Cross currency swap Other current liabilities (1.1)   —   
Interest rate contracts Other non-current liabilities (0.2)   —   
Total derivatives designated as hedging instruments (1.0)   (10.5)  
Derivatives not designated as hedging instruments:
Non-designated forward contracts Other current assets 0.1    —   
Non-designated forward contracts Accrued liabilities (0.5)   (0.6)  
Total derivatives not designated as hedging instruments (0.4)   (0.6)  
Total liability derivatives, net $ (1.4)   $ (11.1)  


Note 5. Earnings Per Share
For the third quarter of 2019, no stock options were excluded in the computation of earnings per share. For the first nine months of 2019, 2,160 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 third quarter of 2018, no stock options were excluded in the computation of earnings per share. For the first nine months of 2018, 2,580 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):
  Third Quarter Nine Months
2019 2018 2019 2018
Weighted average basic common shares outstanding 36.4    35.9    36.2    35.7   
Effect of dilutive securities (primarily stock options) 1.2    1.3    1.2    1.3   
Weighted average diluted common shares outstanding 37.6    37.2    37.4    37.0   

Note 6. 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 common stock, stock options and restricted stock units have been issued to its directors.
Stock Incentive Plan
Stock option compensation expense was $5.7 million for the third quarter of 2019 and was $4.6 million for the third quarter of 2018. Stock option compensation expense was $20.4 million for the first nine months of 2019 and was $14.9 million for the first nine months of 2018. Employee stock option grants are charged to expense evenly over the three year vesting period except for stock options that were granted in January 2019 to Teledyne’s Executive Chairman and Teledyne’s President and Chief Executive Officer which were expensed immediately. For 2019, the Company currently expects approximately $26.2 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.


13

The following assumptions were used in the valuation of stock options granted in 2019:
2019
Expected volatility 26.7%   
Risk-free interest rate range 2.47% to 2.70%   
Expected life in years 6.6
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 2019 was $72.00 per share.

Stock option transactions for the third quarter and first nine months of 2019 are summarized as follows:
  2019
  Third Quarter Nine Months
  Shares Weighted
Average
Exercise
Price
Shares Weighted
Average
Exercise
Price
Beginning balance 2,170,843 $ 127.09    2,064,740 $ 104.66   
Granted —    $ —    390,789    $ 217.58   
Exercised (92,062)   $ 88.26    (352,823)   $ 82.61   
Canceled (10,946)   $ 197.19    (34,871)   $ 182.62   
Ending balance 2,067,835 $ 128.45    2,067,835 $ 128.45   
Options exercisable at end of period 1,319,171 $ 92.57    1,319,171    $ 92.57   
Performance Share Plan and Restricted Stock Award Program
Under the 2015 to 2017 Performance Share Plan, in the first quarter of 2019 the Company issued 8,586 shares of Teledyne common stock and in the first quarter of 2018, the Company issued 6,481 shares of Teledyne common stock. A total of 15,578 shares remain to be issued in 2020, subject to the terms of the plan.
In the first quarter of 2018, the performance cycle for the three-year period ending December 31, 2020, was set.  Under the plan, the maximum number of shares that could be issued in three equal installments in 2021, 2022 and 2023, is 59,278.
The following table shows the restricted stock activity for the first nine months of 2019:
Shares Weighted average fair value per share
Balance, December 30, 2018 74,220    $ 108.05   
Granted 17,522    $ 200.00   
Vested (35,330)   $ 72.91   
Balance, September 29, 2019 56,412    $ 158.62   

Note 7. Inventories
Inventories are stated at current cost net of reserves for excess, slow moving and obsolete inventory. Inventories are valued under the FIFO method, LIFO method or average cost method. Inventories at cost determined on the average cost or the FIFO methods were $373.6 million at September 29, 2019 and $331.3 million at December 30, 2018. The remainder of the inventories using the LIFO method is $39.1 million at September 29, 2019 and $42.3 million at December 30, 2018. 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.
14

Balance at
Inventories (in millions): September 29, 2019 December 30, 2018
Raw materials and supplies $ 235.1    $ 205.6   
Work in process 120.9    117.5   
Finished goods 56.7    50.5   
412.7    373.6   
Reduction to LIFO cost basis (8.3)   (9.3)  
Total inventories, net $ 404.4    $ 364.3   

Note 8. Customer Contracts
Estimate at Completion Process
For over time contracts using the cost-to-cost method, 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. Since certain contracts extend over multiple reporting periods, 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 reviewed and reassessed quarterly. The majority of revenue recognized over time uses an EAC process. The net aggregate effects of changes in estimates on contracts accounted for under the cost-to-cost method in the first nine month of 2019 was approximately $17.0 million of favorable operating income, primarily related to favorable changes in estimates that impacted revenue, and, to a lesser degree, cost of sales, within the Digital Imaging operating segment. The net aggregate effects of changes in estimates on contracts accounted for under the cost-to-cost method in the first nine months of 2018 was approximately $2.0 million of favorable operating income, primarily related to favorable changes in estimates that impacted revenue. 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.
Contract Liabilities
We recognize a liability for 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 $110.6 million and $17.4 million as of September 29, 2019, and $111.5 million and $15.3 million as of December 30, 2018, respectively.
The Company recognized revenue of $78.2 million during the nine months ended September 29, 2019 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
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 September 29, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was $1,755.1 million. The Company expects approximately 74% of remaining performance obligations to be recognized into revenue within the next twelve months, with the remaining 26% recognized thereafter.
Product Warranty Costs
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 Condensed Consolidated Balance Sheet.
  Nine Months
Warranty Reserve (in millions): 2019 2018
Balance at beginning of year $ 21.0    $ 21.1   
Accruals for product warranties charged to expense 7.2    7.6   
Cost of product warranty claims (7.6)   (6.8)  
Acquisition 3.0    —   
Balance at end of period $ 23.6    $ 21.9   

15

Note 9. Income Taxes
The income tax provision is calculated using an estimated annual effective tax rate, based upon expected annual income, permanent items, statutory rates and planned tax strategies in the various jurisdictions in which the Company operates. However, losses in certain jurisdictions and discrete items, such as the resolution of uncertain tax positions, are treated separately.
The Company’s effective income tax rate for the third quarter and first nine months of 2019 was 13.5% and 16.7%, respectively. The Company’s effective income tax rate for the third quarter and first nine months of 2018 was 9.9% and 15.4%, respectively. The third quarter and first nine months of 2019 include net discrete income tax benefits of $10.4 million and $17.8 million, respectively. The 2019 third quarter and first nine months of net discrete tax benefits includes $3.5 million and $11.2 million, respectively, related to share-based accounting. The first nine months of 2019 also included $8.1 million in income tax benefit as a result of the remeasurement of uncertain tax positions due to the expiration of statute of limitations and a favorable tax settlement, of which $7.8 million was recorded in the third quarter of 2019. The third quarter and first nine months of 2018 includes net discrete income tax benefits of $11.4 million and $16.9 million, respectively. The 2018 third quarter and first nine months net discrete tax benefits includes $5.0 million and $12.7 million, respectively, related to share-based accounting. The third quarter and first nine months of 2018 also included $4.4 million in income tax benefit as a result of the remeasurement of uncertain tax positions due to the expiration of statute of limitations. Excluding the net discrete income tax benefits in both periods, the effective tax rate would have been 21.9% for the both the third quarter and the first nine months of 2019. Excluding the net discrete income tax benefits in both periods, the effective tax rate would have been 21.3% for both the third quarter and the first nine months of 2018.
Note 10. Long-Term Debt and Letters of Credit
Balance at
Long-Term Debt (in millions): September 29, 2019 December 30, 2018
$750 million credit facility due March 2024, weighted average rate of 3.0% at September 29, 2019 and 5.50% at December 30, 2018
$ 225.0    $ 29.0   
Term loan due October 2019, variable rate of 3.18% at September 29, 2019 and 3.63% at December 30, 2018, 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
54.9    57.2   
0.92% €100 Million Fixed Rate Senior Notes due April 2023
109.7    114.4   
1.09% €100 Million Fixed Rate Senior Notes due April 2024
109.7    114.4   
Other debt 2.0    8.8   
Total debt 926.3    748.8   
Less: current portion of long-term debt and debt issuance costs (207.0)   (138.7)  
Total long-term debt $ 719.3    $ 610.1   
On March 15, 2019, Teledyne amended its $750.0 million credit agreement to extend the maturity date from December 2020 to March 2024. While the borrowing capacity remains at $750.0 million, the amendment permits Teledyne to increase the aggregate amount of the borrowing capacity by up to $250.0 million subject to certain conditions.
Available borrowing capacity under the $750.0 million credit facility, which is reduced by borrowings and certain outstanding letters of credit, was $494.7 million at September 29, 2019. The credit agreements require the Company to comply with various financial and operating covenants and at September 29, 2019, the Company was in compliance with these covenants. At September 29, 2019, Teledyne had $30.3 million in outstanding letters of credit.
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 September 29, 2019 and December 30, 2018, approximated the carrying value.

16

Note 11. 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 30, 2018, included in the 2018 Form 10-K.
At September 29, 2019, the Company’s reserves for environmental remediation obligations totaled $6.0 million, of which $1.5 million is included in current accrued liabilities. At December 30, 2018, the Company’s reserves for environmental remediation obligations totaled $6.0 million. The Company 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.
Note 12. Pension Plans and Postretirement Benefits
For the domestic pension plans, the discount rate increased to 4.59% in 2019 compared with a 4.02% discount rate used in 2018. Teledyne has not made any cash pension contributions to its domestic qualified pension plan since 2013. No cash pension contributions are planned for 2019 for the domestic qualified pension plan.
  Third Quarter Nine Months
2019 2018 2019 2018
Service cost — benefits earned during the period (in millions) $ 2.4    $ 2.7    $ 7.1    $ 8.1   
Pension non-service income (in millions):
Interest cost on benefit obligation $ 8.4    $ 8.2    $ 25.2    $ 24.5   
Expected return on plan assets (16.6)   (17.9)   (49.7)   (53.7)  
Amortization of prior service cost (1.4)   (1.5)   (4.4)   (4.5)  
Amortization of net actuarial loss 7.7    7.8    23.2    23.6   
Curtailment/settlements —    —    (0.4)   —   
Pension non-service income $ (1.9)   $ (3.4)   $ (6.1)   $ (10.1)  
Teledyne sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees.
  Third Quarter Nine Months
Postretirement benefits non-service (income)/expense (in millions): 2019 2018 2019 2018
Interest cost on benefit obligation $ 0.1    $ 0.1    $ 0.3    $ 0.3   
Amortization of net actuarial gain —    (0.1)   (0.1)   (0.3)  
Postretirement benefits non-service (income)/expense $ 0.1    $ —    $ 0.2    $ —   


17

Note 13. 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 includes net sales and operating income by segment but excludes non-service retirement benefit income, 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.
In the third quarter of 2019, we realigned the reporting structure for certain business units, primarily related to certain refinements of our management reporting structure. This change primarily related to moving certain electronic manufacturing services products from the Aerospace and Defense Electronics segment to the Engineered Systems segment. Total net sales for these products were $76.2 million for fiscal year 2018. Other immaterial changes included moving certain United Kingdom (U.K.) microwave product lines (previously within the Digital Imaging segment) and certain U.K. manufactured composite parts (previously within the Engineered Systems segment) into the Aerospace and Defense Electronics segment. Total net sales for these U.K. product lines was less than $20.0 million for fiscal year 2018. Previously reported segment data has been adjusted to reflect these changes.
The following table presents Teledyne’s segment disclosures (dollars in millions):
Third Quarter % Nine Months %
2019 2018 Change 2019 2018 Change
Net sales(a):
Instrumentation $ 282.9    $ 256.2    10.4  % $ 803.5    $ 757.8    6.0  %
Digital Imaging (b) 244.0    220.7    10.6  % 724.8    652.0    11.2  %
Aerospace and Defense Electronics (b) 177.1    160.3