2014
SUMMARY
TROPERLAUNNA
Teledyne Technologies Summary Annual Report 2014
GAAP EPS
$ per share
SALES
$ in millions
$4.87
$4.33
$3.81
$3.25
$6.00
5.50
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
$5.75
$2,500
$2,394
$2,339
$2,127
2,000
$1,942
$1,644
1,500
1,000
500
0
2010 2011 2012 2013 2014
2010
2011
2012
2013
2014
Diluted earnings per share
from continuing operations
47%
11%
17%
25%
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 January 3, 2010, through fiscal
year end December 28, 2014, 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 31, 2009.
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
0
01/03/10
01/02/11
01/01/12
12/30/12
12/29/13
12/28/14
Teledyne Technologies
Russell 2000
S&P 1500 Industrials
S&P 500 Composite
01/03/10
01/02/11
01/01/2012
12/30/12
12/29/13
12/28/14
100
100
100
100
115
127
127
115
143
122
126
117
166
139
144
134
241
196
207
180
273
208
228
208
SUM
TROPER LAUN N A
MARY
2014
FINANCIAL
HIGHLIGHTS
Selected Consolidated Financial Data
(In millions, except per share data)
SUMMARY FINANCIAL INFORMATION
Sales
$2,394.0
$2,338.6
$2,127.3
$1,941.9
$1,644.2
2014
2013
2012
2011
2010
Net income from
continuing operations
Income 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
217.7
185.0
-
-
161.8
2.3
142.1
113.1
119.9
0.6
217.7
185.0
164.1
255.2
120.5
5.75
-
5.75
4.87
-
4.87
37.9
38.0
4.33
0.06
4.39
37.4
3.81
3.03
6.84
3.25
0.02
3.27
37.3
36.9
SUMMARY BALANCE SHEET DATA
Cash and cash
equivalents
Working capital
Total assets
Long-term debt and
capital lease
obligations
Total equity
2014
$141.4
402.7
2,862.2
618.9
2013
$66.0
381.0
2,751.1
549.0
2012
$45.8
337.5
2,406.4
556.2
2011
$49.4
2010
$75.1
268.5
306.8
1,826.1
311.4
1,557.8
265.3
1,468.5
1,518.7
1,203.4
984.1
787.0
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the “Notes to Consolidated Financial
Statements” in the 2014 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.
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Teledyne Technologies Summary Annual Report 2014
ENGINEERED
FOR RELIABILITY
Teledyne distinguishes itself by solving the
most difficult challenges in markets that require
the utmost in performance and reliability.
Aerospace
Safety is critical in
commercial aviation,
and 2014 marked the
50th anniversary of
Teledyne Controls,
whose avionics and
software help airlines
increase flight safety and
operational reliability through
more efficient aircraft data and
information management.
Marine
Teledyne possesses one of the
broadest portfolios of marine
sensors and systems designed to
weather the unforgiving subsea
environment. Our connectors are
designed for decades of reliable
performance on the ocean floor;
our autonomous marine vehicles
withstand hurricanes; and Teledyne’s
remotely operated vehicles can
be dropped from aircraft, before
searching for mines.
Environmental
We provide specialty instrumentation to detect trace
contaminants in ambient air and drinking water,
as well as examine food for residual pesticides.
Teledyne also makes rugged instruments and
software for the detection, measurement, and
reporting of air pollutants from power plants.
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Machine
Vision
Reliably improving yield with
high speed automated inspection
is crucial to quality control
in applications ranging from
consumer electronics to food
production, and Teledyne’s
scanning machine vision cameras
have the highest combination of
speed, resolution and sensitivity
in the industry.
Test and
Measurement
For nearly two
decades, Teledyne
has produced
measurement
and analysis
instrumentation
to ensure that
valves in nuclear
power plants will
operate when called
upon. In 2014, with the
assistance of engineers at
Teledyne LeCroy, we updated our
flagship product and software in
this domain.
Defense
When there is no other option, military pilots trust Teledyne’s
electronics to obtain speed and altitude data and then
precisely time firing pulses to initiate a safe ejection.
Teledyne is proud to empower our military personnel, and
in 2014, we demonstrated the first-ever precision guided
munition capability under DARPA’s EXtreme ACcuracy
Tasked Ordnance (EXACTO) program.
Teledyne Technologies Summary Annual Report 2014
LETTER TO
STOCKHOLDERS
Given the strength and diversity of Teledyne’s highly engineered
products, we were able to achieve our thirteenth consecutive
year of GAAP earnings growth. In an era where more and
more companies are deciding to adjust financial results for
non-cash charges or non-recurring items – which,
incidentally, seem to recur somewhat frequently – we are
proud to hold ourselves to a higher standard.
In 2014, Teledyne achieved record sales of $2.4 billion, and
earnings per share increased 18.1% to $5.75 from $4.87
in 2013.
Robert Mehrabian
Chairman, President and
Chief Executive Officer,
Teledyne Technologies Incorporated
In addition, Teledyne achieved record gross margin and
operating margin due to our ongoing focus on operational
excellence coupled with the continued evolution of Teledyne
into a high technology company serving multiple industrial markets
requiring advanced technology.
We entered 2014 with headwind in our government businesses as a result of U.S. Government
budget cuts, also known as Sequestration, and austerity measures across the U.K. and Europe.
In response, throughout 2013 and 2014, we took aggressive expense-reduction actions to lower
our cost structure and reduce our manufacturing footprint in businesses serving these markets.
Today, sales from our defense and other U.S. Government-focused businesses appear to be
stabilizing, with revenue in the fourth quarter at the greatest level throughout 2014. However,
while the outlook is now more positive, we are committed to maintain our current cost structure,
thereby generating greater margins.
Our success depends on how we manage change, both operationally
and strategically, across our portfolio of businesses.
For our businesses serving commercial aviation, the air transport
aircraft cycle remains strong with record deliveries of new
aircraft. Furthermore, the positive trajectory of our avionics
business, Teledyne Controls, has accelerated with market share
gains, both on new aircraft as well as increased share in the
aftermarket.
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We entered 2015 with uncertainly in our marine businesses
exposed to energy markets, given the decline in energy
prices. Revenue from offshore energy exploration markets
has begun to decline, but offshore oil production-related
revenue has remained strong.
Nevertheless, our marine businesses are somewhat
buffered from swings in energy markets, since
our businesses also serve markets with different
economic cycles, such as ocean science and
climatology, defense, marine survey for port
construction, harbor security and search and
rescue. In 2014, we further invested in these
businesses with the acquisition of SeaBotix,
a leading supplier of miniature remotely
operated vehicles (Mini ROVs) and the
acquisition of Oceanscience, which produces
remotely operated and tethered marine surface
vehicles. Each of these businesses largely serves
markets unrelated to offshore energy. With these
acquisitions, in addition to our existing portfolio
of subsea floats, autonomous gliders, powered
autonomous underwater vehicle (AUVs), Teledyne
now possesses the broadest portfolio of unmanned
marine systems, as well as the most complete suite of
sensors used on these vehicles.
While global GDP growth remains relatively weak, we expect
recent investments in R&D to generate sales growth of new
products, such as new visible and infrared cameras, as well
as X-ray products. In fact, in early 2015, we received
orders for our first infrared cameras with uncooled
longwave detectors.
We shall also continue to leverage
Teledyne Scientific, our research and
development laboratory, and integrate
and expand Teledyne’s capabilities
across multiple business segments.
For example, our Engineered
Systems segment has been able to
leverage technologies developed
by our marine instrumentation
companies into U.S. Navy prime
contracts with contract ceilings in
excess of $400 million.
Teledyne Technologies Summary Annual Report 2014
Across all of our businesses, we shall continue
operational excellence, expense control and business unit
consolidation to improve margins.
Regarding capital allocation, our primary focus remains
acquisitions that enhance our core businesses. In
aggregate, we deployed approximately $195 million on
acquisitions in 2014. We are, nonetheless, increasingly
comfortable with stock repurchases, and spent over $145
million on stock repurchases in 2014. We are very pleased
with the current composition of our business portfolio,
and we will continue to weigh investment in our own stock
against the availability and price of acquisitions.
As stewards of our stockholders’ capital, we realize we
need to compete against all other investment alternatives.
Beyond managing our business operations and deploying
the company’s cash flow prudently, we also sometimes
need to make other difficult decisions. For example, given
ever increasing healthcare costs and longevity of current
and future retirees, we have had to make changes to our
pension plan. While these changes ensure the viability of
the pension plan for the fraction of employees who still
participate, and also protect our shareholders capital, the
changes did not come without sacrifices by employees.
On a sad note, Teledyne suffered the loss of contributions
from two outstanding individuals in 2014. First, Robyn
E. McGowan, our Vice President, Administration, Human
Resources and Assistant Secretary, left the company for
health reasons, and second, Ruth E. Bruch, a member of
our Board of Directors, passed away. Both Robyn and Ruth
contributed significantly to the success of Teledyne and we
miss them both very much.
Lastly, I want to express sincere gratitude to our employees
and our Board of Directors for their efforts, and our
stockholders for their continued support.
Best regards,
Robert Mehrabian
Chairman, President and Chief Executive Officer
February 26, 2015
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BOARD OF
DIRECTORS
Left to Right:
CHARLES CROCKER (2)(3)(4)
Chairman and CEO,
Crocker Capital
Retired Chairman and CEO,
BEI Technologies, Inc.
FRANK V. CAHOUET (1)(2)
Retired Chairman and CEO,
Mellon Financial Corporation
JANE C. SHERBURNE (1)(3)
Former Senior Executive Vice President,
General Counsel and Corporate Secretary,
The Bank of New York Mellon Corporation
KENNETH C. DAHLBERG (1)(3)
Retired Chairman and CEO
Science Applications International
Corporation (SAIC)
MICHAEL T. SMITH (1)(2)
Retired Chairman and CEO,
Hughes Electronics Corporation
(1) Audit Committee
(2) Nominating and Governance Committee
(3) Personnel and Compensation Committee
(4) Lead Director
ROBERT MEHRABIAN
Chairman, President and
CEO, Teledyne Technologies
Incorporated
PAUL D. MILLER (1)(2)
Retired Chairman and CEO,
Alliant Techsystems, Inc.
ROXANNE S. AUSTIN (2)(3)
President, Austin Investment Advisors
Former President and Chief Operating
Officer of DIRECTV, Inc.
SIMON M. LORNE (1)(2)
Vice Chairman and Chief Legal Officer,
Millennium Management LLC
Co-director of Stanford Law School’s
Directors’ College
WESLEY W. VON SCHACK (2)(3)
Chairman,
AEGIS Insurance Company
Former Chairman, President and CEO
Energy East Corporation
EXECUTIVE
MANAGEMENT
STOCKHOLDER
INFORMATION
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
P.O. BOX 30170
College Station, TX 77842
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 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 22, 2015, 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.
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*
Chief Compliance Officer
Vice President, Information Technology and
Deputy General Counsel – Litigation
MELANIE S. CIBIK*
Senior Vice President,
General Counsel and Secretary
REX D. GEVEDEN*
Executive Vice President
Digital Imaging and
Engineered Systems Segments
SUSAN L. MAIN*
Senior Vice President and
Chief Financial Officer
ANNA SEGOBIA MASTERS
Vice President, Human Resources and
Deputy General Counsel
ROBERT MEHRABIAN*
Chairman, President and
Chief Executive Officer
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
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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 2014 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
CAUTIONARY NOTICE
From time to time the Company makes, and this Summary
Annual Report 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, environmental remediation
costs, stock repurchases, taxes, exchange rate fluctuations and
strategic plans. All statements made in this Summary Annual
Report 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;
cuts to defense spending resulting from existing and future
deficit reduction measures; and threats to the security of our
confidential and proprietary information, including cyber
security threats. 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.
Increasing fuel costs could negatively affect the markets of
our own commercial aviation businesses. In addition, financial
market fluctuations affect the value of our pension assets.
Changes in the policies of U.S. and foreign governments,
including economic sanctions, could result, over time, in
reductions or realignment in defense or other government
spending and further changes in programs in which the
Company participates.
Copyright © 2015 Teledyne Technologies Incorporated. All Rights Reserved.
Editor: Neil Humphrey | 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