Teledyne Technologies(TDY)
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Teledyne Technologies(TDY) - 2022 Q4 - Annual Report
2022-02-25 22:20
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 2, 2022 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 25-184 ...
Teledyne Technologies (TDY) Investor Presentation - Slideshow
2022-02-12 14:35
1 Teledyne Technologies INVESTOR PRESENTATION | FEBRUARY 2022 Teledyne's investor presentation contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, with respect to management's beliefs about the financial condition, results of operations and businesses of Teledyne in the future. Forward-looking statements involve risks and uncertainties, are based on the current expectations of the management of Teledyne and are subject to uncertainty and changes in circum ...
Teledyne Technologies(TDY) - 2021 Q4 - Earnings Call Transcript
2022-01-27 21:09
Teledyne Technologies Inc. (NYSE:TDY) Q4 2021 Results Conference Call January 27, 2022 11:00 AM ET Company Participants Jason VanWees - Vice Chairman Robert Mehrabian - Chairman, President, Chief Executive Officer Susan Main - Chief Financial Officer Melanie Cibik - SVP, General Counsel, Chief Compliance Officer Edwin Roks - EVP of Teledyne and President, Teledyne Digital Imaging Conference Call Participants Mike Maugeri - Wolfe Research Greg Konrad - Jefferies Jim Ricchiuti - Needham & Company Kristine Liw ...
Teledyne Technologies(TDY) - 2022 Q3 - Quarterly Report
2021-10-28 21:18
Table of Contents 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 October 3, 2021 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 _____________________________________ TE ...
Teledyne Technologies(TDY) - 2021 Q3 - Earnings Call Transcript
2021-10-27 18:45
Financial Data and Key Metrics Changes - Company achieved record revenue of $4.59 billion, a 75.2% increase compared to last year, driven by organic growth of 11.9% and a 63.3% contribution from Teledyne FLIR [7][9] - GAAP earnings per share (EPS) increased by 13.3% to $2.81, while non-GAAP EPS, excluding acquisition-related charges, rose by 61.9% to $4.34 [9][26] - Cash flow from operating activities reached a record $192.8 million, with free cash flow at $165.7 million, compared to $135.1 million in the same period of 2020 [23][24] Business Segment Performance - Digital Imaging segment saw a 217.3% increase in sales, largely due to the FLIR acquisition, with organic growth of 17.9% [14] - Instrumentation segment sales increased by 9%, with test and measurement systems growing by 20.8% year-over-year [16] - Aerospace and Defense Electronics segment sales rose by 11.7%, driven by a 27% increase in commercial aerospace products [18] - Engineered Systems segment revenue increased by 1.4%, but operating profit and margin declined slightly due to exiting the higher-margin turbine engine business [19] Market Data and Key Metrics Changes - Orders exceeded sales for the fourth consecutive quarter, with a book-to-bill ratio of 1.1 [9] - Digital Imaging's book-to-bill ratio was 1.12, while Aerospace and Defense Electronics was 1.06 [65] Company Strategy and Industry Competition - Company aims to improve overall operating margin from low teens to over 20%, with a current forecasted operating margin of approximately 21% [20][21] - Management expects to achieve annualized cost savings of $80 million from the FLIR acquisition by mid-2022, accelerated from previous estimates [11][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from supply chain issues and inflation but expressed confidence in navigating these challenges [12] - Full-year organic sales growth outlook for 2021 is now approximately 7% to 7.5%, with Digital Imaging expected to grow nearly 13% [13][26] Other Important Information - Company ended the quarter with approximately $3.89 billion of net debt, with a leverage ratio declining to 3.3% [25] - Management anticipates a GAAP EPS range of $2.53 to $2.69 for Q4 2021, and a full-year GAAP EPS outlook of $9.13 to $9.29 [26] Q&A Session Summary Question: What are the drivers of margin sustainability? - Management expects margins to continue increasing, projecting an additional 60 basis points per year [32] Question: What allowed the acceleration of FLIR synergies? - Reduction in dependence on third-party consultants and legal costs contributed to the acceleration [34] Question: How is the government business performing under the continuing resolution? - Management is monitoring opportunities in underwater vehicles and satellite programs, with a balanced portfolio aiding performance [42][44] Question: What is the outlook for the Energy sector? - Management expects a modest increase in sales tied to Energy exposure due to rising oil prices [77] Question: What is the growth rate for FLIR excluding EST? - Management estimates mid-single digits growth for FLIR, aligning with overall company growth expectations [84]
Teledyne Technologies(TDY) - 2022 Q2 - Quarterly Report
2021-07-31 01:26
Table of Contents 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 July 4, 2021 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 _____________________________________ TELED ...
Teledyne Technologies(TDY) - 2021 Q2 - Earnings Call Transcript
2021-07-28 21:48
Teledyne Technologies Incorporated (NYSE:TDY) Q2 2021 Earnings Conference Call July 28, 2021 11:00 AM ET Company Participants Jason VanWees - Investor Relations Robert Mehrabian - Executive Chairman Al Pichelli - President and Chief Executive Officer Sue Main - Senior Vice President and Chief Financial Officer Melanie Cibik - Senior Vice President, General Counsel, Chief Compliance Officer and Secretary Conference Call Participants Mike Maugeri - Wolfe Research Joe Giordano - Cowen Jim Ricchiuti - Needham & ...
Teledyne Technologies(TDY) - 2022 Q1 - Quarterly Report
2021-04-30 01:36
Table of Contents 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 April 4, 2021 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 _____________________________________ TELE ...
Teledyne Technologies(TDY) - 2021 Q1 - Earnings Call Transcript
2021-04-28 21:25
Teledyne Technologies Incorporated (NYSE:TDY) Q1 2021 Results Earnings Conference Call April 28, 2021 11:00 AM ET Company Participants Jason VanWees - Executive Vice President Robert Mehrabian - Executive Chairman, Director Al Pichelli - President, Chief Executive Officer Sue Main - Senior Vice President, Chief Financial Officer Conference Call Participants Greg Konrad - Jefferies Blake Gendron - Wolfe Research Jim Ricchiuti - Needham & Company Joe Giordano - Cowen Andrew Buscaglia - Berenberg Capital Marke ...
Teledyne Technologies(TDY) - 2021 Q4 - Annual Report
2021-02-26 01:33
PART I [Business](index=3&type=section&id=Item%201.%20Business) Teledyne Technologies provides advanced enabling technologies across four segments, serving diverse industrial markets, with a significant pending $8.0 billion acquisition of FLIR Systems expected in mid-2021 - On January 4, 2021, Teledyne announced a definitive agreement to acquire FLIR Systems, Inc. in a cash and stock transaction valued at approximately **$8.0 billion**. The transaction is expected to close in mid-2021[16](index=16&type=chunk)[17](index=17&type=chunk) 2020 Sales Contribution by Business Segment | Segment | Percentage of Total Net Sales (2020) | | :--- | :--- | | Instrumentation | 35% | | Digital Imaging | 32% | | Aerospace and Defense Electronics | 19% | | Engineered Systems | 14% | U.S. Government Sales by Segment (in millions) | Segment | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Instrumentation | $80.6 | $80.4 | $68.3 | | Digital Imaging | $120.9 | $107.4 | $90.5 | | Aerospace and Defense Electronics | $229.9 | $225.3 | $177.2 | | Engineered Systems | $386.8 | $346.7 | $319.3 | | **Total U.S. Government Sales** | **$818.2** | **$759.8** | **$655.3** | - International customers accounted for approximately **45% of total sales** in 2020. The top five international markets were China, the United Kingdom, Germany, Japan, and France, representing about **20% of total net sales**[39](index=39&type=chunk) - The company's total backlog of confirmed and funded orders was approximately **$1,700.2 million** at January 3, 2021, stable compared to **$1,699.3 million** at the end of 2019. Over **77%** of this backlog is expected to be fulfilled in 2021[42](index=42&type=chunk) Workforce Demographics as of January 3, 2021 | Region | Percent of Total Employees | Average Age | Average Years of Service | Male | Female | Not Specified | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Americas | 72% | 49.1 | 11.4 | 59% | 34% | 7% | | Europe, the Middle East and Africa | 26% | 44.9 | 11.3 | 56% | 22% | 22% | | Asia-Pacific Region | 2% | 42.4 | 7.6 | 42% | 20% | 38% | [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks, primarily from the pending FLIR acquisition, substantial indebtedness, global trade tensions, industry cyclicality, and dependence on U.S. Government contracts, alongside cybersecurity and goodwill impairment concerns - The pending acquisition of FLIR, valued at approximately **$8.0 billion**, is the company's largest to date and presents numerous risks, including the incurrence of substantial indebtedness, potential disruption to business relationships, and failure to realize anticipated benefits[57](index=57&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Escalating global trade tensions, particularly tariffs and restrictions involving China (a top-five international market), could increase material costs, cause production delays, and harm sales[67](index=67&type=chunk)[68](index=68&type=chunk) - A material amount of revenue is derived from the cyclical offshore oil and gas industry. A prolonged reduction in exploration and development activities could adversely affect the Instrumentation segment[71](index=71&type=chunk) - Sales from U.S. Government contracts represented approximately **26% of total revenue** in 2020. These revenues are dependent on continued government funding and are subject to risks of cancellation, delays, and budget cuts[83](index=83&type=chunk)[84](index=84&type=chunk) - As of January 3, 2021, the company had **$2,150.0 million** in goodwill. Changes in future business conditions could lead to impairment charges, which could have a material adverse effect on reported financial results[81](index=81&type=chunk) - The commercial aerospace business faces risks from the heavily regulated airline industry and cyclical downturns. The grounding and production suspension of the Boeing 737 Max has negatively impacted the Teledyne Controls' business[99](index=99&type=chunk)[102](index=102&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) Teledyne operates 68 principal facilities across 17 U.S. states and six foreign countries, with its executive offices in Thousand Oaks, California - The Company operates **68 principal facilities** in **17 states** and **six foreign countries**, with executive offices and the main R&D center in Thousand Oaks, California[132](index=132&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various ordinary course lawsuits and claims, which management does not expect to materially affect its financial condition - Teledyne is involved in various lawsuits and claims in the ordinary course of business but does not expect their resolution to have a material adverse effect on its financial condition[133](index=133&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=22&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Teledyne's common stock trades on the NYSE under 'TDY', with no anticipated cash dividends as earnings are prioritized for growth and acquisitions, and a dormant stock repurchase program - The company's common stock is listed on the New York Stock Exchange under the symbol "**TDY**"[135](index=135&type=chunk) - Teledyne does not anticipate paying cash dividends in the foreseeable future, prioritizing the use of earnings for business development and acquisitions[137](index=137&type=chunk) - A stock repurchase program for up to approximately **three million shares** is authorized, but no repurchases have been made since 2015[138](index=138&type=chunk) [Selected Financial Data](index=22&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of Teledyne's consolidated financial data, highlighting 2020 net sales of $3,086.2 million and net income of $401.9 million Five-Year Summary of Selected Financial Data (in millions, except per-share amounts) | | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net sales | $3,086.2 | $3,163.6 | $2,901.8 | $2,603.8 | $2,149.9 | | Net income | $401.9 | $402.3 | $333.8 | $227.2 | $190.9 | | Diluted earnings per common share | $10.62 | $10.73 | $9.01 | $6.26 | $5.37 | | Total assets | $5,084.8 | $4,579.8 | $3,809.3 | $3,846.4 | $2,774.4 | | Total stockholders' equity | $3,228.6 | $2,714.7 | $2,229.7 | $1,947.3 | $1,554.4 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2020, Teledyne achieved record operating margin and cash flow despite a 2.4% sales decrease, maintaining stable net income and strong liquidity, with a key strategic focus on the pending $8.0 billion FLIR acquisition - The company's strategy emphasizes growth in core markets (instrumentation, digital imaging, aerospace and defense electronics, engineered systems) through targeted acquisitions and product development, while pursuing operational excellence[144](index=144&type=chunk) - Despite the COVID-19 pandemic, 2020 saw the best operating margin and cash flow in the company's history. Headcount was reduced by **9.8%** to reduce exposure to weak end markets like commercial aerospace[146](index=146&type=chunk)[148](index=148&type=chunk) Consolidated Operating Results Summary (in millions) | | 2020 | 2019 | | :--- | :--- | :--- | | Net sales | $3,086.2 | $3,163.6 | | Operating income | $480.1 | $491.7 | | Net income | $401.9 | $402.3 | | Diluted EPS | $10.62 | $10.73 | [Results of Operations](index=26&type=section&id=Results%20of%20Operations) In 2020, net sales decreased by 2.4% to $3,086.2 million, while net income remained stable at $401.9 million, with segment-specific sales and operating income shifts and a 14.4% effective tax rate Net Sales by Segment: 2020 vs. 2019 (in millions) | Segment | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Instrumentation | $1,094.5 | $1,105.1 | (1.0)% | | Digital Imaging | $986.0 | $992.9 | (0.7)% | | Aerospace and Defense Electronics | $589.4 | $690.1 | (14.6)% | | Engineered Systems | $416.3 | $375.5 | 10.9% | | **Total net sales** | **$3,086.2** | **$3,163.6** | **(2.4)%** | Operating Income by Segment: 2020 vs. 2019 (in millions) | Segment | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | Instrumentation | $213.2 | $200.4 | 6.4% | | Digital Imaging | $192.8 | $176.5 | 9.2% | | Aerospace and Defense Electronics | $80.8 | $143.4 | (43.7)% | | Engineered Systems | $50.1 | $36.5 | 37.3% | | **Total Operating Income** | **$480.1** | **$491.7** | **(2.4)%** | - The effective tax rate was **14.4%** in 2020, down from **15.1%** in 2019. The 2020 rate included **$34.6 million** in net discrete income tax benefits, primarily from share-based accounting and U.S. export sales[169](index=169&type=chunk) [Segments Analysis](index=32&type=section&id=Segments) In 2020, Aerospace and Defense Electronics saw significant declines, while Engineered Systems grew strongly, and Instrumentation and Digital Imaging achieved higher operating income despite slight sales decreases - **Instrumentation:** 2020 sales decreased **1.0%** to **$1,094.5 million**, but operating income increased **6.4%** to **$213.2 million** due to improved margins. Lower marine and test & measurement sales were partly offset by acquired gas and flame detection businesses[182](index=182&type=chunk)[183](index=183&type=chunk) - **Digital Imaging:** 2020 sales decreased **0.7%** to **$986.0 million**, while operating income grew **9.2%** to **$192.8 million**. The increase in operating income was driven by a favorable product mix, with higher sales of infrared detectors and MEMS products offsetting lower sales of X-ray products for dental/medical use[190](index=190&type=chunk)[191](index=191&type=chunk) - **Aerospace and Defense Electronics:** 2020 sales fell **14.6%** to **$589.4 million**, and operating income dropped **43.7%** to **$80.8 million**. The decline was primarily due to a **$94.8 million** decrease in aerospace electronics sales caused by weakness in the commercial aerospace industry[198](index=198&type=chunk)[199](index=199&type=chunk) - **Engineered Systems:** 2020 sales increased **10.9%** to **$416.3 million**, with operating income rising **37.3%** to **$50.1 million**. Growth was driven by increased sales from marine, space, nuclear, and other manufacturing programs[206](index=206&type=chunk)[207](index=207&type=chunk) [Financial Condition, Liquidity and Capital Resources](index=36&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company ended 2020 with strong liquidity, including $673.1 million in cash and $618.9 million in operating cash flow, and has arranged a $4.5 billion credit commitment for the pending FLIR acquisition - A **$4.5 billion** 364-day credit commitment has been arranged to support funding of the pending FLIR acquisition[213](index=213&type=chunk) Long-Term Debt Summary (in millions) | Debt Instrument | Jan 3, 2021 | Dec 29, 2019 | | :--- | :--- | :--- | | $750.0M credit facility | $125.0 | $125.0 | | Term loan | $150.0 | $150.0 | | Fixed Rate Senior Notes | $499.3 | $553.8 | | Other debt | $4.0 | $2.0 | | **Total long-term debt** | **$778.5** | **$850.6** | - The company was in compliance with all financial covenants at year-end, with a Consolidated Leverage Ratio of **1.338 to 1** (vs. a requirement of no more than **3.25 to 1**)[215](index=215&type=chunk)[216](index=216&type=chunk) Cash Flow Summary (in millions) | | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $618.9 | $482.1 | $446.9 | | Capital expenditures | ($71.4) | ($88.4) | ($86.8) | | **Free cash flow** | **$547.5** | **$393.7** | **$360.1** | [Critical Accounting Policies](index=42&type=section&id=Critical%20Accounting%20Policies) Management identifies critical accounting policies including revenue recognition (40% over time), pension plans, business combinations (goodwill of $2.15 billion), and income taxes, all involving significant judgment and estimation - Approximately **40% of revenue** is recognized over time, primarily using a cost-to-cost measure of progress which requires management judgment in estimating contract revenue and costs[263](index=263&type=chunk)[264](index=264&type=chunk) - Accounting for defined benefit pension plans requires significant assumptions regarding the discount rate and the expected long-term rate of return on plan assets[268](index=268&type=chunk) - Goodwill and acquired intangible assets are tested for impairment annually. The quantitative test uses a discounted cash flow model requiring judgmental assumptions about revenue growth, margins, and discount rates. As of the 2020 test, the fair value of all reporting units exceeded their carrying values by at least **116%**[271](index=271&type=chunk)[274](index=274&type=chunk)[276](index=276&type=chunk) [Financial Statements and Supplementary Data](index=47&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the complete audited consolidated financial statements for 2018-2020, including notes, management's internal control report, and Deloitte & Touche LLP's unqualified audit opinion [Consolidated Statements of Income](index=55&type=section&id=Consolidated%20Statements%20of%20Income) For fiscal year 2020, Teledyne reported net sales of $3,086.2 million, operating income of $480.1 million, and stable net income of $401.9 million Consolidated Statements of Income (in millions, except per-share amounts) | | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net Sales | $3,086.2 | $3,163.6 | $2,901.8 | | Operating income | $480.1 | $491.7 | $416.6 | | Net income | $401.9 | $402.3 | $333.8 | | Diluted earnings per common share | $10.62 | $10.73 | $9.01 | [Consolidated Balance Sheets](index=56&type=section&id=Consolidated%20Balance%20Sheets) As of January 3, 2021, Teledyne's total assets increased to $5,084.8 million, driven by higher cash, with total liabilities at $1,856.2 million and stockholders' equity at $3,228.6 million Consolidated Balance Sheet Highlights (in millions) | | Jan 3, 2021 | Dec 29, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $673.1 | $199.5 | | Total Current Assets | $1,722.6 | $1,313.7 | | Goodwill | $2,150.0 | $2,050.5 | | Total Assets | $5,084.8 | $4,579.8 | | Total Liabilities | $1,856.2 | $1,865.1 | | Total Stockholders' Equity | $3,228.6 | $2,714.7 | [Consolidated Statements of Cash Flows](index=58&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) In 2020, net cash from operating activities significantly increased to $618.9 million, while investing and financing activities used $99.4 million and $61.8 million respectively, leading to a $473.6 million increase in cash Consolidated Statements of Cash Flows Highlights (in millions) | | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $618.9 | $482.1 | $446.9 | | Net cash used in investing activities | ($99.4) | ($571.9) | ($88.6) | | Net cash provided by (used in) financing activities | ($61.8) | $141.7 | ($271.3) | | Change in cash and cash equivalents | $473.6 | $57.0 | $71.6 | [Notes to Consolidated Financial Statements](index=59&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on the pending $8.0 billion FLIR acquisition, goodwill, $778.5 million long-term debt, segment performance, pension plans, and income taxes, with 40% of revenue recognized over time - **Note 3:** In 2020, the company acquired OakGate Technology for **$28.5 million**. In 2019, three acquisitions were completed for a total of **$484.0 million**. Goodwill stood at **$2,150.0 million** at year-end 2020[403](index=403&type=chunk)[404](index=404&type=chunk)[412](index=412&type=chunk) - **Note 9:** Total long-term debt was **$778.5 million** as of January 3, 2021, with maturities extending to 2024 and beyond. The company maintains a **$750.0 million** credit facility, of which **$615.5 million** was available[442](index=442&type=chunk)[443](index=443&type=chunk) - **Note 11:** The company restructured its domestic qualified defined benefit pension plan into two separate plans (active and inactive participants). As of January 3, 2021, the domestic plans had a funded status of **$7.7 million** (assets exceeded obligations)[454](index=454&type=chunk)[463](index=463&type=chunk) - **Note 12:** Provides detailed segment data, including sales by customer type, contract type, and geographic region. U.S. Government sales were **$818.2 million** in 2020, with the Engineered Systems segment being the largest contributor[488](index=488&type=chunk) - **Note 15:** Details the subsequent event of the definitive agreement to acquire FLIR Systems, Inc. for approximately **$8.0 billion** in a cash and stock transaction, expected to close in mid-2021[500](index=500&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of January 3, 2021, with an unqualified audit opinion from Deloitte & Touche LLP - The President and CEO and the Senior VP and CFO concluded that the company's disclosure controls and procedures were effective as of January 3, 2021[295](index=295&type=chunk) - Management's report on internal control over financial reporting, based on the COSO framework, concluded that controls were effective as of January 3, 2021. This was attested to by the independent auditor, Deloitte & Touche LLP[313](index=313&type=chunk)[314](index=314&type=chunk)[316](index=316&type=chunk) PART III [Directors, Executive Officers, Corporate Governance, and Other Matters](index=49&type=section&id=Item%2010-14) This section incorporates by reference information from the 2021 Proxy Statement regarding directors, executive officers, compensation, security ownership, and related party transactions - Information required for Items 10 through 14 is incorporated by reference from the registrant's definitive proxy statement for the 2021 Annual Meeting of Shareholders[301](index=301&type=chunk)[302](index=302&type=chunk)[303](index=303&type=chunk)[304](index=304&type=chunk)[305](index=305&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=49&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed with the Form 10-K, including financial statements, Schedule II, and an index of various corporate documents - This section provides an index to the financial statements, financial statement schedules (Schedule II - Valuation and Qualifying Accounts), and a list of all exhibits filed with the report[306](index=306&type=chunk)