/2 H;   d 1$&%*)'TELEDYNE TECHNOLOGIES INCORPORATED('CONSOLIDATED STATEMENTS OF INCOME' .'(IN MILLIONS, EXCEPT PER-SHARE AMOUNTS) ^1999 ^1998 ^1997:'SALES.............................................. "$803.4 "$780.4 "$756.6'COSTS AND EXPENSES8'Cost of sales.................................... "587.7 "572.1 "551.18 'Selling, general and administrative expenses.....  "133.9  "126.9  "138.2  "------  "------  "------  "721.6  "699.0  "689.3  "------  "------  "------: 'OPERATING PROFIT...................................  "81.8  "81.4  "67.38'Interest and debt expense, net................... ".8 "-- "--8'Other income..................................... "1.0 "1.6 "1.4 "------ "------ "------:'EARNINGS BEFORE INCOME TAXES....................... "82.0 "83.0 "68.7:'Provision for income taxes......................... "33.0 "34.3 "27.1 "------ "------ "------:'NET INCOME......................................... "$ 49.0 "$ 48.7 "$ 41.6 "====== "====== "======:'BASIC EARNINGS PER COMMON SHARE.................... "$ 1.79 "$ 1.73 "$ 1.48 "====== "====== "======:'DILUTED EARNINGS PER COMMON SHARE.................. "$ 1.79 "$ 1.73 "$ 1.48 "====== "====== "======Q'The accompanying notes are an integral part of these financial statements.' )'TELEDYNE TECHNOLOGIES INCORPORATED"'CONSOLIDATED BALANCE SHEETS' * '(IN MILLIONS, EXCEPT SHARE AMOUNTS)  ^1999  ^1998"'CURRENT ASSETSA#'Cash and cash equivalents................................. #"$ 7.1 #"$ --A$'Accounts receivable, net.................................. $"117.6 $"103.2A%'Inventories, net.......................................... %"53.7 %"53.2A&'Deferred income taxes, net................................ &"21.7 &"12.9A''Prepaid expenses and other current assets................. '"4.5 '"1.7 ("------ ("------>)'TOTAL CURRENT ASSETS................................... )"204.6 )"171.0 *"------ *"------A+'Property, plant and equipment, net........................ +"62.1 +"43.0A,'Deferred income taxes, net................................ ,"25.6 ,"22.1A-'Cost in excess of net assets acquired, net................ -"8.2 -"9.4A.'Other assets.............................................. ."16.9 ."5.3 /"------ /"------>0'TOTAL ASSETS........................................... 0"$317.4 0"$250.8 1"====== 1"======+2'LIABILITIES AND STOCKHOLDERS' EQUITYA3'Accounts payable.......................................... 3"$ 46.9 3"$ 43.4A4'Accrued liabilities....................................... 4"48.6 4"49.1A5'Income taxes payable...................................... 5"3.8 5"-- 6"------ 6"------>7'TOTAL CURRENT LIABILITIES.............................. 7"99.3 7"92.5A8'Long-term debt............................................ 8"97.0 8"--A9'Net unrecognized actuarial gains on pension obligation.... 9"14.7 9"--A:'Accrued postretirement benefits........................... :"33.6 :"32.9A;'Other long-term liabilities............................... ;"28.3 ;"19.0 <"------ <"------>='TOTAL LIABILITIES...................................... ="272.9 ="144.4 >"------ >"------$?'COMMITMENTS AND CONTINGENCIES@'STOCKHOLDERS' EQUITY>A'Common stock, $.01 par value issued in 1999; authorized.B'125 million shares; outstanding shares:>C'1999--26,687,002....................................... C".3 C"--AD'Additional paid-in capital................................ D"37.9 D"--AE'Net advances from ATI..................................... E"-- E"104.7AF'Retained earnings......................................... F"5.6 F"--AG'Accumulated other comprehensive income.................... G".7 G"1.7 H"------ H"------>I'TOTAL STOCKHOLDERS' EQUITY............................. I"44.5 I"106.4 J"------ J"------>K'TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............. K"$317.4 K"$250.8 L"====== L"======QN'The accompanying notes are an integral part of these financial statements.O' )P'TELEDYNE TECHNOLOGIES INCORPORATED6Q'CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYR' S'(IN MILLIONS)S^ACCUMULATEDT^ADVANCEST^ADDITIONAL T^OTHER T^TOTALU^(TO) FROM U^COMMONU^PAID-INU^RETAINEDU^COMPREHENSIVEU^STOCKHOLDERS' V^ATI V^STOCKV^CAPITALV^EARNINGS V^INCOME V^EQUITY*Y'BALANCE, DECEMBER 29, 1996.........Y"$ 126.1 Y"$ --Y"$ --Y"$ --Y"$ 1.9Y"$ 128.0*Z'Net income/comprehensive income.... Z"41.6 Z"-- Z"-- Z"-- Z"-- Z"41.6*['Net transactions with ATI.......... ["(60.2) ["-- ["-- ["-- ["-- ["(60.2)\"--------\"-------\"-------\"-------\"-------\"-------*]'BALANCE, DECEMBER 28, 1997.........]"$ 107.5 ]"$ --]"$ --]"$]"$ 1.9]"$ 109.4*^'Net income......................... ^"48.7 ^"-- ^"-- ^"-- ^"-- ^"48.7"_'Other comprehensive income,`'net of tax:#a'Foreign currency translation$b'losses....................... b"-- b"-- b"-- b"-- b"(.2) b"(.2)c"--------c"-------c"-------c"-------c"-------c"-------*d'Comprehensive income............... d"48.7 d"-- d"-- d"-- d"(.2) d"48.5*e'Net transactions with ATI.......... e"(51.5) e"-- e"-- e"-- e"-- e"(51.5)f"--------f"-------f"-------f"-------f"-------f"-------*g'BALANCE, JANUARY 3, 1999...........g"$ 104.7 g"$ --g"$ --g"$ --g"$ 1.7g"$ 106.4*h'Net income......................... h"43.4 h"-- h"-- h"-- h"-- h"43.4"i'Other comprehensive income,j'net of tax:#k'Foreign currency translation$l'losses....................... l"-- l"-- l"-- l"-- l"(.1) l"(.1)m"--------m"-------m"-------m"-------m"-------m"-------*n'Comprehensive income............... n"43.4 n"-- n"-- n"-- n"(.1) n"43.3*o'Net transactions with ATI.......... o"(47.5) o"-- o"-- o"-- o"-- o"(47.5)p"--------p"-------p"-------p"-------p"-------p"-------*q'BALANCE PRIOR TO SPIN-OFF, NOVEMBER(r'29, 1999.........................r"$ 100.6 r"$ --r"$ --r"$ --r"$ 1.6r"$ 102.2s'Spin-off capitalization(t'transactions.....................t"(100.6) t".3 t"37.9 t"-- t"(.9) t"(63.3)u"--------u"-------u"-------u"-------u"-------u"-------v'Balance after spin-offv"$ -- v"$ .3v"$ 37.9v"$ --v"$ .7v"$ 38.9*w'Net income/comprehensive income.... w"-- w"-- w"-- w"5.6 w"-- w"5.6x"--------x"-------x"-------x"-------x"-------x"-------*y'BALANCE, JANUARY 2, 2000...........y"$ -- y"$ .3y"$ 37.9y"$ 5.6y"$ .7y"$ 44.5z"========z"=======z"=======z"=======z"=======z"=======Q|'The accompanying notes are an integral part of these financial statements.}' )~'TELEDYNE TECHNOLOGIES INCORPORATED,'CONSOLIDATED STATEMENTS OF CASH FLOWS' '(IN MILLIONS) ^1999 ^1998 ^1997'OPERATING ACTIVITIESA'Net income................................................"$ 49.0"$ 48.7"$ 41.6?'Adjustments to reconcile net income to net cash provided'by operating activities:>'Depreciation and amortization of assets................ "11.9 "11.1 "11.3>'Deferred income taxes.................................. "(1.4) "(.4) ".3>'Gains on sale of property, plant and equipment......... "(.1) "(.4) "--3'Changes in operating assets and liabilities:>'Decrease (increase) in accounts receivable............. "(14.4) "17.8 ".2>'Increase in inventories................................ "(.5) "(6.1) "(2.9)>'Increase in prepaid expenses and other assets.......... "(2.8) "-- "-->'Increase in accounts payable........................... "3.6 ".8 "14.3>'Increase (decrease) in accrued liabilities............. "(.5) "(5.5) "2.8>'Increase in current income taxes payable............... "3.8 "-- "-->'Increase in other long-term liabilities................ "-- "2.9 "3.1>'Increase in accrued postretirement benefits............ ".6 ".2 ".4A'Other operating, net...................................... "(1.8) "(2.0) "1.8"-------"-------"------->'NET CASH PROVIDED BY OPERATING ACTIVITIES.............. "47.4 "67.1 "72.9"-------"-------"-------'INVESTING ACTIVITIESA'Purchases of property, plant and equipment................ "(31.5) "(18.1) "(15.8)A'Disposals of property, plant and equipment................ ".1 ".7 ".1A'Other investing, net...................................... "(.7) "1.8 "2.9"-------"-------"------->'NET CASH USED BY INVESTING ACTIVITIES.................. "(32.1) "(15.6) "(12.8)"-------"-------"-------'FINANCING ACTIVITIESA'Net payments on revolving credit agreement................ "(3.0) "-- "--A'Net advances/spin-off capitalization with ATI............. "(5.2) "(51.5) "(60.2)"-------"-------"------->'NET CASH USED BY FINANCING ACTIVITIES.................. "(8.2) "(51.5) "(60.2)"-------"-------"-------C'INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS............ "7.1 "-- "(.1)C'Cash and cash equivalents -- beginning of year.............. "-- "-- ".1"-------"-------"-------C'CASH AND CASH EQUIVALENTS -- END OF YEAR...................."$ 7.1"$ --"$ --"======="======="=======Q'The accompanying notes are an integral part of these financial statements.' &'