A N N UAL
REP O RT
Teledyne Technologies Annual Report 2015
GAAP EPS
$ per share
SALES
$ in millions
$5.75
$5.44
$2,500
$2,394
$2,339
$2,298
$2,127
2,000
$1,942
$6.00
5.50
5.00
4.50
4.00
$3.81
$4.87
$4.33
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
1,500
1,000
500
0
2011 2012 2013 2014 2015
2011
2012
2013
2014
2015
Diluted earnings per share
from continuing operations
46%
12%
16%
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 January 2, 2011, through fiscal year
end January 3, 2016, 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, 2010.
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.
250
230
210
190
170
150
130
110
90
70
50
01/02/11
01/01/12
12/30/12
12/29/13
12/28/14
01/03/16
01/02/11
01/01/2012
12/30/12
12/29/13
12/28/14
01/03/16
Teledyne Technologies
Russell 2000
S&P 1500 Industrials
S&P 500 Composite
100
100
100
100
125
96
99
102
145
109
113
116
210
154
162
156
238
164
179
181
202
155
172
181
FINANCIAL
HIGHLIGHTS
Selected Consolidated Financial Data
(In millions, except per share data)
SUMMARY FINANCIAL INFORMATION
Sales
$2,298.1
$2,394.0
$2,338.6
$2,127.3
$1,941.9
2015
2014
2013
2012
2011
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
195.8
217.7
185.0
-
-
-
161.8
2.3
142.1
113.1
195.8
217.7
185.0
164.1
255.2
5.44
-
5.44
5.75
-
5.75
4.87
-
4.87
36.0
37.9
38.0
4.33
0.06
4.39
37.4
3.81
3.03
6.84
37.3
SUMMARY BALANCE SHEET DATA
Cash and cash
equivalents
Working capital
Total assets
Long-term debt and
capital lease
obligations
Total equity
2015
$85.1
434.6
2,718.5
762.9
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
268.5
1,826.1
311.4
1,344.1
1,468.5
1,518.7
1,203.4
984.1
See “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and the “Notes to Consolidated Financial
Statements” in the 2015 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 Annual Report 2015
LETTER TO
STOCKHOLDERS
2015 was fraught with challenges: a very weak industrial economy, contractions in corporate capital
spending, and wild swings in energy prices and foreign exchange rates. While I am proud of our
efforts to address these challenges, and our financial results in light of the circumstances, 2015 was
nevertheless a difficult year.
We were disappointed to miss and lower our own earnings forecast for the first time in over 14
years. Furthermore, both revenue and earnings per share in 2015 declined year-over-year, also for
the first time since the 2001 recession.
Dr. George A. Roberts was the long-
time president of Teledyne, Inc., our
predecessor company, under Dr. Henry
Singleton as Chairman and Chief Executive
Officer. In 1989, George Roberts visited
Teledyne Ryan Electronics, a provider
of Doppler radars and other military
electronic systems. Dr. Roberts was
there to present to Ryan Electronics’
management and employees an award
for being the most profitable company in
Teledyne. After offering brief, but genuine,
congratulations, Dr. Roberts then told a
story about how things can, and most
certainly will, change.
$2,500
2,000
1,500
1,000
500
0
Sales from Continuing Operations
$ in millions
Gross Margin
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
40%
36%
32%
28%
24%
20%
Teledyne began operating offshore oil platforms in 1965. In the 1970s during the oil shocks of the
era, this business was among the most profitable at Teledyne. But as George told the employees
of Ryan Electronics, things changed, and by the late 1980s, Teledyne was paying millions just to
maintain heavy assets that were generating little to no revenue, let alone profit.
GAAP Earnings per Share
$ per share
$6.00
5.00
4.00
Teledyne has long been familiar with cyclical business. Managing change, and risk, is part of our
culture, our DNA.
3.00
2.00
1.00
Our response to the current market challenges is consistent with the past; that is, stabilize revenue
and consolidate facilities and businesses, reduce costs and focus on operations to improve margins.
0.00
At the same time, leverage our unique technology and scale in key markets, to develop new products
and gain market share, as well as expand our products and markets through acquisitions.
0
1
0
2
1
1
0
2
4
0
0
2
9
0
0
2
2
1
0
2
3
0
0
2
2
0
0
2
3
1
0
2
6
0
0
2
1
0
0
2
8
0
0
2
5
0
0
2
7
0
0
2
5
1
0
2
4
1
0
2
Total diluted earnings per share for 2002 through 2008 and 2013 through 2015, and
diluted earnings per share from continuing operations for 2001 and 2009 through 2012
Operating Margin
14%
12%
10%
8%
6%
4%
2%
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
$2,500
2,000
1,500
1,000
500
0
$6.00
5.00
4.00
3.00
2.00
1.00
0.00
In Teledyne’s more recent history,
U.S. Government budget cuts and a
Sales from Continuing Operations
corresponding shrinking defense business
$ in millions
resulted in over $100 million of lost annual
sales from 2012 to 2015. At the outset,
we began aggressive cost reductions and
facility consolidations. By 2014 and during
2015, despite the lower revenue, and given
a strong commercial aerospace market, our
Aerospace & Defense Electronics segment
had record margins. Our government-
focused businesses are now stabilizing,
and we are committed to maintain our
current cost structure as this business
cycle recovers, resulting in further margin
improvement.
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
2
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
1
0
0
2
GAAP Earnings per Share
$ per share
In 2015 and continuing throughout 2016,
we are again consolidating facilities and
businesses, but this time our efforts are
largely focused on Marine Instrumentation,
which has been impacted by decade-low
energy prices. Our ongoing actions include
difficult workforce reductions, elimination
of leased facilities, and a streamlined
management organization, designed not
only to reduce costs, but also improve
coordination amongst our businesses to
more easily provide integrated solutions to
our customers.
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
2
0
0
2
3
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
1
0
0
2
Total diluted earnings per share for 2002 through 2008 and 2013 through 2015, and
diluted earnings per share from continuing operations for 2001 and 2009 through 2012
$2,500
40%
2,000
36%
1,500
32%
1,000
28%
500
24%
0
20%
$6.00
14%
5.00
12%
4.00
10%
3.00
8%
2.00
6%
1.00
4%
0.00
2%
Sales from Continuing Operations
$ in millions
Gross Margin
Gross Margin
1
0
0
2
1
0
0
2
2
0
0
2
2
0
0
2
3
0
0
2
3
0
0
2
4
0
0
2
4
0
0
2
5
0
0
2
5
0
0
2
6
0
0
2
6
0
0
2
7
0
0
2
7
0
0
2
8
0
0
2
8
0
0
2
9
0
0
2
9
0
0
2
0
1
0
2
0
1
0
2
1
1
0
2
1
1
0
2
2
1
0
2
2
1
0
2
3
1
0
2
3
1
0
2
4
1
0
2
4
1
0
2
5
1
0
2
5
1
0
2
GAAP Earnings per Share
Operating Margin
$ per share
Operating Margin
1
0
0
2
1
0
0
2
2
0
0
2
2
0
0
2
3
0
0
2
3
0
0
2
4
0
0
2
4
0
0
2
5
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
9
0
0
2
0
1
0
2
0
1
0
2
1
1
0
2
1
1
0
2
2
1
0
2
2
1
0
2
3
1
0
2
3
1
0
2
4
1
0
2
4
1
0
2
5
1
0
2
8
0
0
2
7
0
0
2
6
0
0
2
5
1
0
2
40%
36%
32%
28%
24%
20%
14%
12%
10%
8%
6%
4%
2%
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
Total diluted earnings per share for 2002 through 2008 and 2013 through 2015, and
diluted earnings per share from continuing operations for 2001 and 2009 through 2012
With weak industrial end markets, especially energy, and a strong U.S. dollar, generating revenue
growth has been difficult. However, given past R&D investments and the resulting new products,
we did achieve sequential quarterly improvement in revenue throughout 2015 in both our Digital
Imaging and Aerospace and Defense Electronics segments. Furthermore, we were able to maintain
overall GAAP operating margin in 2015 even with the decline in total revenue.
Despite low interest rates, and a contraction in industrial markets in 2015, we resisted any temptation
to engage in short-term pseudo-strategic behavior. Excessively priced acquisitions just for the sake
of growth, and reactionary divestitures or spinoffs, generally do not address, but simply mask,
challenges at hand.
Our strategy remains the same:
• Maintain a balanced business portfolio not dependent on any single product or market
• Keep financial leverage at a prudent, manageable level, especially given economic uncertainty
• Avoid products and markets subject to commoditization
• Grow internally and through acquisitions, but maintain discipline on price, strategic fit
and manageability
• Do not shy away from risk, but avoid large, irreversible mistakes
• Continue our commitment to innovation and leverage our unique technology and scale in key markets
Sales from Continuing Operations
Gross Margin
$ in millions
$2,500
2,000
1,500
1,000
500
0
$6.00
5.00
4.00
3.00
2.00
1.00
0.00
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
Teledyne Technologies Annual Report 2015
We continually evaluate our businesses
GAAP Earnings per Share
to ensure that they are aligned with our
$ per share
strategy, and, as we have done in the past,
exit those businesses we no longer find
attractive. We follow a consistent long-
term strategy, but also react appropriately to
market forces. For example, while the strong
U.S. dollar hurt reported revenue in 2015, it
created an opportunity for foreign domiciled
acquisitions, of which Teledyne made three –
one each in the United Kingdom, Belgium
and Canada.
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
40%
36%
32%
28%
24%
20%
14%
12%
10%
8%
6%
4%
2%
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
Operating Margin
Total diluted earnings per share for 2002 through 2008 and 2013 through 2015, and
diluted earnings per share from continuing operations for 2001 and 2009 through 2012
Despite economic concerns, we believe it
remains a generally attractive time to deploy
capital wisely among acquisitions or share repurchases. Many of our markets remain fragmented,
and borrowing costs are low.
1
0
0
2
2
0
0
2
3
0
0
2
4
0
0
2
5
0
0
2
6
0
0
2
7
0
0
2
8
0
0
2
9
0
0
2
0
1
0
2
1
1
0
2
2
1
0
2
3
1
0
2
4
1
0
2
5
1
0
2
Our long-term preference for capital deployment remains acquisitions, which are a core competency
of Teledyne.
Since Teledyne Technologies became publicly traded in late 1999, we have deployed over $2.5
billion of cash flow for acquisitions and share repurchases with over 80% of the cash allocated
to acquisitions. In 2015, we increased our share buyback activity, announcing $244 million of
repurchases when we considered Teledyne’s valuation attractive relative to potential acquisitions.
At the same time, we granted no stock options to employees in order to lower costs and dilution.
Following each major economic cycle, such as the 2001 and 2009 recessions, Teledyne exited leaner,
regained growth momentum, and achieved new levels of profitability and cash flow.
While global industrial markets are likely to remain challenging in the near-term, our stockholders
should expect the same long-term success.
Finally, I want to express my deep gratitude to our Director, Mr. Frank V. Cahouet who has decided to
retire from our Board at the April 2016 stockholder meeting. Mr. Cahouet has served as a Director of
Teledyne for 22 years, first serving with Dr. Henry Singleton and then continuing to the present day
with Teledyne Technologies, including 14 years as Chairman of our Audit Committee. He has been a
close advisor to me in all matters during my tenure and I will miss his wisdom and guidance.
Best regards,
Robert Mehrabian
Chairman, President and Chief Executive Officer
February 29, 2016
BOARD OF
DIRECTORS
ROXANNE S. AUSTIN (2)(3)
President, Austin Investment Advisors
Former President and Chief Operating
Officer of DIRECTV, Inc.
FRANK V. CAHOUET (1)(2)
Retired Chairman and CEO,
Mellon Financial Corporation
CHARLES CROCKER (2)(3)(4)
Chairman and CEO,
Crocker Capital
Retired Chairman and CEO,
BEI Technologies, Inc.
KENNETH C. DAHLBERG (1)(3)
Retired Chairman and CEO
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
ROBERT A. MALONE (1)(3)
Executive Chairman, President and CEO
First Sonora Bancshares, Inc.
ROBERT MEHRABIAN
Chairman, President and
CEO, Teledyne Technologies
Incorporated
PAUL D. MILLER (1)(2)
Retired Chairman and CEO,
Alliant Techsystems, Inc.
JANE C. SHERBURNE (1)(3)
Former Senior Executive Vice President,
General Counsel and Corporate Secretary,
The Bank of New York Mellon Corporation
MICHAEL T. SMITH (1)(2)
Retired Chairman and CEO,
Hughes Electronics Corporation
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 27, 2016, at 9:00
a.m. PDT, at Teledyne Technologies
Incorporated, 1049 Camino Dos Rios,
Thousand Oaks, CA 91360.
INDEPENDENT AUDITORS
Deloitte & Touche LLP
Los Angeles, California
CURRENT NEWS AND
GENERAL INFORMATION
Information about Teledyne is
available at www.teledyne.com.
CARL ADAMS
Vice President, Business Risk
Assurance
CYNTHIA Y. BELAK*
Vice President and Controller
STEPHEN F. BLACKWOOD
Vice President and Treasurer
GEORGE C. BOBB, III*
Chief Compliance Officer
Vice President, Information Technology and
Deputy General Counsel for Litigation
MELANIE S. CIBIK*
Senior Vice President,
General Counsel and Secretary
JANICE L. HESS
President, Engineered Systems Segment
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*
Chief Operating Officer
MIKE R. READ
President, Marine Instrumentation
THOMAS H. RESLEWIC
Chief Executive Officer, Environmental &
Electronic Measurement Instrumentation
EDWIN ROKS
Vice President, Teledyne and President,
Teledyne DALSA, Inc.
JASON VANWEES*
Senior Vice President, Strategy and
Mergers & Acquisitions
(1) Audit Committee
(2) Nominating and Governance Committee
(3) Personnel and Compensation Committee
(4) Lead Director
* 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 2015 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 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, note
issuances, 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 and strategic
plans. All statements made in this 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 further 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 © 2016 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