YEAR IN
REVIEW
2013
Teledyne Technologies Incorporated Year in Review 2013
$ per share
$ in millions
$2,339
$2,127
$1,942
$1,652 $1,644
$4.87
$4.33
$3.81
$3.17 $3.25
$5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
2500
2000
1500
1000
500
0
2009 2010 2011 2012 2013
2009 2010 2011 2012 2013
Diluted earnings per share
from continuing operations
44%
12%
18%
26%
Instrumentation
Test and measurement, monitoring and
control instrumentation, and power and
communications connectivity devices for
marine, environmental, electronics and
other applications
Digital Imaging
High performance sensors, cameras and
systems within the visible, infrared and
X-ray spectra, used in industrial,
government and medical applications
Aerospace and Defense Electronics
Sophisticated electronic components,
subsystems and communications
products, including defense electronics,
commercial avionics, and harsh
environment interconnects
Engineered Systems
Innovative systems engineering,
manufacturing and specialized products
for government, space, energy, and
industrial customers
Cumulative Total
Stockholder Return
The graph set forth to the right shows
the cumulative total stockholder return
(i.e. price change plus reinvestment of
dividends) on our common stock from fiscal
year end December 28, 2008, through fiscal
year end December 29, 2013, as compared
to the Standard and Poor’s 500 Composite
Index, the Russell 2000 Index, and the
Standard and Poor’s 1500 Industrials Index.
The graph assumes that $100 was invested
on December 26, 2008.
In accordance with the rules of the
Securities and Exchange Commission,
this presentation is not incorporated by
reference into any of our registration
statements under the Securities Act of 1933.
300
250
200
150
100
50
12/28/08
01/03/10
01/02/11
01/01/12
12/30/12
12/29/13
Teledyne Technologies
S&P 1500 Industrials
Russell 2000
S&P 500 Composite
12/28/08
01/03/10
01/02/11
01/01/12
12/30/12
12/29/13
100
100
100
100
94
126
133
131
108
161
169
151
135
159
162
154
156
182
185
175
227
261
261
235
FINANCIAL
Selected Consolidated Financial Data
(In millions, except per share data)
SUMMARY FINANCIAL INFORMATION
Sales
$2,338.6
$2,127.3
$1,941.9
$1,644.2
$1,652.1
2013
2012
2011
2010
2009
Net income from
continuing operations
Income (loss) from
discontinued
operations,
net of taxes
Net income attributable
to Teledyne
Diluted earnings per
common share
Continuing operations
Discontinued
operations
Diluted earnings per
common share
Weighted average
common shares
outstanding
185.0
-
161.8
2.3
142.1
113.1
119.9
115 .9
0.6
(2.6)
185.0
164.1
255.2
120.5
113.3
4.87
-
4.87
38.0
4.33
0.06
3.81
3.03
3.25
0.02
3.17
(0.07)
4.39
6.84
3.27
3.10
37.4
37.3
36.9
36.6
SUMMARY BALANCE SHEET DATA
Cash and cash
equivalents
Working capital
Total assets
Long-term debt and
capital lease
obligations
Total equity
2013
$66.0
381.0
2,751.1
549.0
2012
2011
2010
2009
$45.8
$49.4
$75.1
$26.1
337.5
2,406.4
268.5
1,826.1
306.8
1,557.8
242.6
1,421.5
556.2
311.4
265.3
251.6
1,518.7
1,203.4
984.1
787.0
667.4
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the “Notes to Consolidated Financial
Statements” in the 2013 Form 10-K for additional information regarding Teledyne Technologies Incorporated’s financial data.
On April 19, 2011, we completed the sale of our general aviation piston engine businesses, which comprised the former Aerospace Engines and
Components segment. Accordingly, our consolidated financial statements have been restated to classify this former segment as a discontinued
operation.
Teledyne Technologies Incorporated Year in Review 2013
SEEING
From the depths of the vast ocean floor to the outer limits
of space, Teledyne’s expertise is serving markets that require
advanced technology and an extraordinary measure of high
reliability. We differentiate ourselves by having a customer
and company sponsored research center that augments our
product development capability.
We make mission-critical components for acoustic
oceanographic exploration and subsea energy production.
We make infrared imagers for astronomy, and on the other end
of the electromagnetic spectrum, we also make X-ray detectors
for dental and surgical radiography. We make oscilloscopes
and protocol analyzers that engineers use in designing next
generation electronics, and we make factory automation
components that help those designs get built with higher
quality and lower cost.
We like to say our technology is “Everywhereyoulook” but
in truth the value we deliver represents (and deserves) more
than just a quick glance. Literally and figuratively, many of our
businesses revolve around enabling deeper insight for our
customers. We invite you to take a closer look.
Off the coast of Portugal, a six foot yellow cigar with wings
and a tailfin bobs gently to the surface of the waves, as it has
done thousands of times since it was launched months ago by
ocean researchers in New England. It’s a Slocum glider built
by Teledyne Webb Research, and through battery-powered
control of its own buoyancy, it has crossed the entire Atlantic,
repeatedly diving and resurfacing, gliding forward with every
cycle, charting a vertical sine wave through the top 600 feet of
the ocean. It has calmly and silently weathered seas, storms,
and sharks for 4,000 miles. And like dozens of its “brothers”
deployed by scientists in this and other oceans, every time it
has surfaced it has called home with the data its instruments
have gathered, providing oceanographers and climate
scientists with invaluable intel on the currents, temperatures,
and other conditions of the ocean.
EVERYWHERE
YOU LOOK
Teledyne LeCroy’s growth path includes
next generation products with lower noise
and higher native bandwidths using the
Indium Phosphide technology developed
by Teledyne Scientific.
Teledyne LeCroy’s growth path includes
next generation products with lower noise
and higher native bandwidths using the
Indium Phosphide technology developed
by Teledyne Scientific.
I
m
a
g
e
C
r
e
d
i
t
:
N
A
S
A
,
E
S
A
a
n
d
S
T
S
c
i
WE’RE PUSHING
BOUNDARIES
Teledyne Technologies Incorporated Year in Review 2013
Hurricanes and typhoons are guided by atmospheric changes,
but their intensity is governed by ocean temperatures, so
by reporting back in near real-time, gliders can help predict
how strong a storm will become. In 2013, researchers from 16
American and Canadian government agencies and research
teams took part in “Gliderpalooza,” a collaborative ocean-
survey experiment along the eastern continental shelf of North
America involving satellites, radar stations, research buoys
and 15 Slocum gliders. Satellites give great views of the ocean
surface, but gliders allow active exploration up close and in
3-D. Organizations such as the National Oceanographic and
Atmospheric Administration and the Mid-Atlantic Regional
Association Coastal Ocean Observing System prize not only the
glider data itself, but the expanded insights they can gain by
combining it with other data sets from other modalities.
Teledyne of course has technology to serve these other
modalities as well. Our acoustic Doppler current profilers
measure water in motion and motion in water; combining
their data with our multibeam sonar and LIDAR solutions in
applications such as coastal mapping can create integrated
and unprecedented views for completely new levels of
understanding.
Oceanographers are not the only researchers making use
of our technology. Our instrumentation enables oil and gas
exploration and production and has proved increasingly
valuable to the petroleum industry as the U.S. has grown into
one of the world’s largest combined producers of crude oil and
natural gas. In 2013, Teledyne officially opened a new 52,000
square foot high-tech research and new product development
center in Daytona Beach to bring forward engineered solutions
to complex technical challenges, primarily for the offshore
oil and gas production and exploration industries. Product
performance and reliability in harsh deepwater environments
is a differentiating feature for Teledyne and it flows directly
from our meticulous focus on research. Teledyne Scientific, our
research and development laboratory, is a prolific generator
of new technology that has led directly to new products and
solutions for us all across our diversity of business segments,
from subsea connectors to semiconductors.
Besides oceanographic instruments that measure the behavior
of water and geophysical instruments that survey below the
waves, our environmental instruments analyze water quality
to monitor chemicals that contribute to acid rain and identify
trace contaminants in oceans, lakes, rivers, and drinking
water supplies. We provide similar instrumentation to detect
atmospheric pollution and monitor air quality.
Teledyne Technologies Incorporated Year in Review 2013
Raising our gaze from the sea to the sky, we can find still
more Teledyne technology. Our avionics systems have
provided “intelligence in flight” to the world’s major aircraft
manufacturers and airlines for years, helping improve flight
safety, efficiency and maintenance. In 2013, Teledyne won
a landmark single source contract to develop and supply
unique aircraft information management solutions for the
majority of future Boeing aircraft.
Looking even higher, our ultra high resolution and
multispectral image sensors are used in satellites and aerial
photography for environmental and earth observation. We
continue to develop a commercial imaging pointing platform
to be mounted on the International Space Station. Up to
four planned Earth-looking instruments on this platform will
help differentiate our imaging business by collecting data
of unprecedented spectral quality from space for scientific,
commercial, educational, and humanitarian purposes. In
terms of “seeing deeper,” our space imaging technology is
one of the most recognizable examples. In 2013, Teledyne
infrared imagers on NASA’s Hubble Space Telescope helped
deliver the deepest-yet observations of a cluster of galaxies.
Hubble’s exquisite image quality and the gravitational
lensing predicted by Einstein’s theory of general relativity
enabled astronomers to see background galaxies more than
12 billion light-years away.
On a more human scale, in 2013 we entered volume
production of our world-leading CMOS X-ray detectors for
medical and dental radiography. In delivering better images
for medical and dental practitioners and lower X-ray dose
for patients, we also enable competitive edge for our global
medical device customers.
Our deeper insight continues in the test and measurement
instrumentation we provide for electronics designers.
Teledyne LeCroy’s HD oscilloscopes provide 12-bit resolution,
16 times the precision of the previous industry standards,
and in 2013 the company demonstrated the world’s first 100
GHz real-time scope. As the world demands increasingly
high speed digital networks, tools like these become vital to
leading-edge electronics designers, revealing deeper details
on faster, fainter, more complex signals.
These are Teledyne technologies at work. We’re not only
everywhere you look, we’re also many places you can’t,
across the spectrum and across the planet. With innovation
and engineering, we create exceptional solutions enabling
deeper understanding, which in turn create possibilities for
our customers.
AND ENABLING
DEEPER INSIGHT
I
m
a
g
e
C
r
e
d
i
t
:
N
A
S
A
,
E
S
A
a
n
d
S
T
S
c
i
Robert Mehrabian
Chairman, President and Chief Executive Officer,
Teledyne Technologies Incorporated
Teledyne Technologies Incorporated Year in Review 2013
LETTER TO
In 2013, we achieved our twelfth consecutive year of GAAP
earnings growth, led by the growing strength of our high-
technology industrial businesses. Furthermore, record
earnings were achieved, despite an increase of over 20% in
company-funded research and development expense. Our
commercial focus and global presence continued to grow,
with approximately 73% of our total sales, and an even greater
proportion of our profit, derived from commercial customers.
In addition, sales to international customers represented 44%
of our revenue in 2013, exceeding U.S. commercial customers
by 15 percentage points.
Record Performance
• Full year sales of $2.34 billion increased 9.9% compared to
last year
• Earnings per share from continuing operations of $4.87
increased 12.5%
Instrumentation Sales Exceed $1 Billion
In our Instrumentation segment, which is our largest and most
profitable, we provide our customers with one of the most
comprehensive portfolios of marine technological products,
ranging from connectors and communication devices to
sensors, imaging systems and complete underwater vehicles.
In 2013, we made two acquisitions to expand our marine
imaging and sensor capabilities. In March, we acquired
RESON, the world’s leading supplier of commercial shallow
water multibeam sonars that are used for 3-D surveys of
the seafloor for mapping of coastlines, ports and harbors,
dredging, and for siting of offshore drilling rigs. In October,
we acquired CDL, a provider of small form factor subsea
inertial navigation and motion sensor systems, especially well-
suited for remotely operated underwater vehicles. Supported
by our acquisitions, total sales of marine instrumentation
increased 23%. In addition, organic sales growth for marine
instruments was 9%, due to strong sales of marine sensors
for oil exploration, interconnect systems used in offshore
energy production, and significant growth in sales of complete
autonomous underwater vehicles. Other unique products
such as our subsea cable and pipe detection systems also
contributed meaningfully.
Sales of environmental and electronic test and measurement
instrumentation also increased in 2013. Our products that
measure pollutants in ambient air reached record levels in
2013. In addition, sales of instrumentation for laboratory
and field applications increased with the acquisition of
CETAC, a provider of automated sample handling and
sample introduction equipment primarily for trace elemental
analysis. In the electronic test domain, despite a relatively
soft market in 2013, Teledyne LeCroy performed well,
achieving organic growth of nearly 5% in the fourth quarter,
and ending the year with the highest level of quarterly sales
since the acquisition by Teledyne.
Expanding the Spectrum in Digital Imaging
During 2013, we made solid progress in our strategic
initiatives in high performance X-ray image sensors and
lower cost uncooled infrared detectors. These developments
are aimed at broadening our product lines beyond our
core businesses in machine vision cameras and cooled
infrared sensors primarily for space, astronomy and defense
applications. Nonetheless, we continued to innovate in our
core machine vision market, launching new CMOS cameras
used in manufacturing the most popular tablet computers,
as well as new smart cameras for a host of general industrial
applications. Finally, our machine vision products found
their way into the world of sports, powering the 3-D replay
system for the New York Yankees and Dallas Cowboys.
Teledyne Technologies Incorporated Year in Review 2013
Consolidation in Defense Electronics and Growth in
Commercial Avionics
In 2013, we completed a number of facilities rationalizations
to better align our defense electronics cost structure
with market conditions. For example, we relocated our
microelectronics business from leased space in California
to an owned existing site in Tennessee. These changes have
not only reduced costs but have also allowed us to provide
customers with a more extensive range of capabilities
in more highly integrated facilities. In the commercial
aerospace market, our avionics business performed
extremely well throughout the year, developing new
products and gaining share in this growing market.
Evolution of Engineered Systems
Like Teledyne, as a whole, our Engineered Systems
segment continues to leverage its heritage in defense and
space markets into new commercial opportunities. At the
same time, we are finding ways to develop system level
products using technologies from our Instrumentation and
Digital Imaging segments. While produced by our marine
instrumentation companies, our largest marine autonomous
glider program is managed within this segment. The
new shallow water combat submersible which we are
producing for the Navy SEALs utilizes our marine electronics.
Through this segment, we also manage commercial
laboratory facilities, which utilize Teledyne’s environmental
instrumentation. In our commercial space efforts, we signed
a memorandum of agreement with the German Aerospace
Center (also known as DLR) to deliver the first instrument
for our platform, the Multi-User System for Earth Sensing
(MUSES), to be mounted on the International Space Station.
In conclusion, I am very pleased with our performance in
2013. While the global economy remains relatively slow, we
delivered growth in our commercial businesses and, at the
same time, took the necessary actions to control costs and
reduce our exposure to government markets. We entered
2014 with a demonstrated record of performance, a much
more efficient and more attractive business portfolio and a
strong balance sheet.
Finally, I would like to thank our Board of Directors for
their guidance and our employees for their unwavering
commitment to our customers, our stockholders and
Teledyne’s success.
Sincerely,
Robert Mehrabian
Chairman, President and Chief Executive Officer
February 25, 2014
BOARD OF
EXECUTIVE
STOCKHOLDER
CORPORATE OFFICES
Teledyne Technologies Incorporated
1049 Camino Dos Rios
Thousand Oaks, CA 91360
Telephone: (805) 373-4545
Fax: (805) 373-4775
www.teledyne.com
TRANSFER AGENT AND REGISTRAR
Computershare
480 Washington Boulevard
Jersey City, NJ 07310
Customer Service: 1-888-540-9867
www.computershare.com
STOCKHOLDER PUBLICATIONS -
FORM 10-K
Information on how to access Annual Reports
(including Form 10-K) and proxy statements
is mailed to all stockholders of record.
Copies of our SEC periodic reports, corporate
governance guidelines, code of ethics and
committee charters are also available on
our website at www.teledyne.com. For
additional information, contact Corporate
Communications or Investor Relations.
STOCK EXCHANGE LISTING
The common stock of Teledyne Technologies
Incorporated is traded on the New York Stock
Exchange (symbol TDY).
ANNUAL MEETING
The annual meeting of stockholders will be
held on Wednesday, April 23, 2014, at 9:00
a.m. PDT, at Teledyne Technologies
Incorporated, 1049 Camino Dos Rios,
Thousand Oaks, CA 91360.
INDEPENDENT AUDITORS
Ernst & Young LLP
Los Angeles, California
CURRENT NEWS AND
GENERAL INFORMATION
Information about Teledyne is
available at www.teledyne.com.
ROXANNE S. AUSTIN (2)(3)
President, Austin Investment Advisors
Former President and Chief Operating
Officer of DIRECTV, Inc.
RUTH E. BRUCH (1)(3)
Retired Senior Vice President and Chief
Information Officer of Kellogg Company
FRANK V. CAHOUET (1)(2)
Retired Chairman and Chief Executive Officer,
Mellon Financial Corporation
CHARLES CROCKER (2)(3)(4)
Chairman and Chief Executive Officer,
Crocker Capital
Retired Chairman and Chief Executive Officer,
BEI Technologies, Inc.
KENNETH C. DAHLBERG (1)(3)
Retired Chairman and Chief Executive Officer,
Science Applications International
Corporation (SAIC)
SIMON M. LORNE (1)(2)
Vice Chairman and Chief Legal Officer,
Millennium Management LLC
Co-director of Stanford Law School’s
Directors’ College
WAJID ALI*
Vice President and Controller
CYNTHIA Y. BELAK
Vice President, Business Risk
Assurance
STEPHEN F. BLACKWOOD
Vice President and Treasurer
GEORGE C. BOBB, III*
Vice President, Chief Compliance Officer and
Deputy General Counsel - Litigation
MELANIE S. CIBIK*
Senior Vice President,
General Counsel and Secretary
BRIAN C. DOODY
Chief Executive Officer, Teledyne DALSA
REX D. GEVEDEN*
Executive Vice President
Digital Imaging and
Engineered Systems Segments
SUSAN L. MAIN*
Senior Vice President and
Chief Financial Officer
ROBERT MEHRABIAN
Chairman, President and
Chief Executive Officer, Teledyne Technologies
Incorporated
ROBYN E. MCGOWAN
Vice President, Administration,
Human Resources and Assistant
Secretary
PAUL D. MILLER (1)(2)
Retired Chairman and Chief Executive Officer,
Alliant Techsystems, Inc.
MICHAEL T. SMITH (1)(2)
Retired Chairman and Chief Executive Officer,
Hughes Electronics Corporation
ROBERT MEHRABIAN*
Chairman, President and
Chief Executive Officer
PATRICK T. NEVILLE
Vice President and Chief
Information Officer
WESLEY W. VON SCHACK (2)(3)
Chairman,
AEGIS Insurance Company
Former Chairman, President and Chief
Executive Officer, Energy East Corporation
(1) Audit Committee
(2) Nominating and Governance Committee
(3) Personnel and Compensation Committee
(4) Lead Director
ALDO (AL) PICHELLI*
Executive Vice President
Instrumentation and Aerospace
and Defense Electronics Segments
THOMAS H. RESLEWIC
Chief Executive Officer, Environmental &
Electronic Measurement Instrumentation
EDWIN ROKS
Vice President and
Chief Technology Officer
JASON VANWEES*
Senior Vice President, Strategy and
Mergers & Acquisitions
* Section 16 Officer
While Teledyne’s growth strategy includes possible acquisitions,
we cannot provide any assurance as to when, if or on what
terms any acquisitions will be made. Acquisitions involve
various inherent risks, such as, among others, our ability to
integrate acquired businesses, retain customers and achieve
identified financial and operating synergies. There are additional
risks associated with acquiring, owning and operating
businesses outside of the United States, including those arising
from U.S. and foreign government policy changes or actions
and exchange rate fluctuations.
The Company continues to take action to assure compliance
with the internal controls, disclosure controls and other
requirements of the Sarbanes-Oxley Act of 2002. While we
believe our control systems are effective, there are inherent
limitations in all control systems, and misstatements due to
error or fraud may occur and may not be detected.
Additional information concerning factors that could cause
actual results to differ materially from those projected in
the forward-looking statements is contained in Teledyne
Technologies’ periodic filings with the Securities and Exchange
Commission, including its 2013 Annual Report on Form
10-K. Forward-looking statements are generally accompanied
by words such as “estimate”, “project”, “predict”, “believes”
or “expect”, that convey the uncertainty of future events or
outcomes. The Company assumes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information or otherwise.
FORWARD-LOOKING
STATEMENTS
From time to time the Company makes, and this Year in Review
and the Company’s Annual Report on Form 10-K may contain,
forward-looking statements, as defined in the Private Securities
Litigation Reform Act of 1995, directly and indirectly relating
to earnings, growth opportunities, product sales, capital
expenditures, pension matters, stock option compensation
expense, the credit facility, interest expense, severance and
relocation costs, stock repurchases, taxes and strategic plans.
All statements made in this Year in Review and the Company’s
Annual Report on Form 10-K that are not historical in nature
should be considered forward-looking. Actual results could
differ materially from these forward-looking statements.
Many factors could change the anticipated results, including:
disruptions in the global economy; changes in demand for
products sold to the defense electronics, instrumentation,
digital imaging, energy exploration and production, commercial
aviation, semiconductor and communications markets; funding,
continuation and award of government programs; and cuts
to defense spending resulting from future deficit reduction
measures, including potential automatic cuts to defense
spending that have been triggered by the Budget Control Act
of 2011, as amended by the Bipartisan Budget Act of 2013.
Increasing fuel costs could negatively affect the markets of
our commercial aviation businesses. Lower oil and natural
gas prices, as well as instability in the Middle East or other oil
producing regions, and new regulations or restrictions relating
to energy production, including with respect to hydraulic
fracturing could negatively affect our businesses that supply the
oil and gas industry. In addition, financial market fluctuations
affect the value of our pension assets. Changes in the policies
of U.S. and foreign governments could result, over time, in
reductions and realignment in defense or other government
spending and further changes in programs in which the
Company participates.
Copyright © 2014 Teledyne Technologies Incorporated. All Rights Reserved.
Editors: Neil Humphrey & Patrick Myles | Designer: Laura Fama | Printed in the U.S.A.
www.teledyne.com
1049 Camino Dos Rios, Thousand Oaks, California 91360 • 805.373.4545 • fax: 805.373.4775