/2H5    d 1$&%*)'TELEDYNE TECHNOLOGIES INCORPORATED('CONSOLIDATED STATEMENTS OF INCOME.'(IN MILLIONS, EXCEPT PER-SHARE AMOUNTS) ^2000 ^1999 ^1998C'SALES....................................................... "$795.1 "$761.4 "$733.0'COSTS AND EXPENSESA'Cost of sales............................................. "579.6 "552.1 "532.1A 'Selling, general and administrative expenses..............  "158.4  "130.5  "123.4  "738.0  "682.6  "655.5C 'OPERATING PROFIT............................................  "57.1  "78.8  "77.5A'Interest and debt expense, net............................ "5.3 "0.8 "--A'Other income.............................................. "1.1 "1.0 "1.6C'INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES....... "52.9 "79.0 "79.1C'Provision for income taxes.................................. "21.0 "31.8 "32.7C'Income from continuing operations........................... "31.9 "47.2 "46.4C'Discontinued operations, net of tax......................... "0.4 "1.8 "2.3C'NET INCOME.................................................. "$ 32.3 "$ 49.0 "$ 48.7''BASIC EARNINGS PER COMMON SHARE:C'Continuing operations....................................... "$ 1.12 "$ 1.73 "$ 1.65C'Discontinued operations..................................... "0.01 "0.06 "0.08C'BASIC EARNINGS PER COMMON SHARE............................. "$ 1.13 "$ 1.79 "$ 1.73)'DILUTED EARNINGS PER COMMON SHARE:C 'Continuing operations.......................................  "$ 1.08  "$ 1.73  "$ 1.65C!'Discontinued operations..................................... !"0.01 !"0.06 !"0.08C#'DILUTED EARNINGS PER COMMON SHARE........................... #"$ 1.09 #"$ 1.79 #"$ 1.73Q&'The accompanying notes are an integral part of these financial statements.)('TELEDYNE TECHNOLOGIES INCORPORATED")'CONSOLIDATED BALANCE SHEETS**'(IN MILLIONS, EXCEPT SHARE AMOUNTS) ,^2000 ,^1999.'CURRENT ASSETSA/'Cash and cash equivalents................................. /"$ 14.9 /"$ 7.1A0'Accounts receivables, net................................. 0"118.5 0"109.1A1'Inventories, net.......................................... 1"65.2 1"51.4A2'Deferred income taxes, net................................ 2"16.9 2"21.7A3'Prepaid expenses and other current assets................. 3"7.3 3"4.595'TOTAL CURRENT ASSETS.............................. 5"222.8 5"193.8A6'Property, plant and equipment, net........................ 6"74.0 6"56.0A7'Deferred income taxes, net................................ 7"27.0 7"25.6A8'Cost in excess of net assets acquired, net................ 8"7.6 8"8.2A9'Other assets, net......................................... 9"19.5 9"16.9A:'Net assets of discontinued operations..................... :"-- :"12.9C<'TOTAL ASSETS................................................ <"$350.9 <"$313.4+>'LIABILITIES AND STOCKHOLDERS' EQUITYA?'Accounts payable.......................................... ?"$ 58.7 ?"$ 44.2A@'Accrued liabilities....................................... @"56.5 @"47.3AA'Income taxes payable...................................... A"-- A"3.89C'TOTAL CURRENT LIABILITIES......................... C"115.2 C"95.3AD'Long-term debt............................................ D"-- D"97.0AE'Accrued pension obligation................................ E"5.2 E"14.7AF'Accrued postretirement benefits........................... F"31.2 F"33.6AG'Other long-term liabilities............................... G"36.2 G"28.39I'TOTAL LIABILITIES................................. I"187.8 I"268.9$J'COMMITMENTS AND CONTINGENCIESK'STOCKHOLDERS' EQUITY4L'Preferred stock, $0.01 par value; outstanding>M'shares -- none......................................... M"-- M"--?N'Common stock, $0.01 par value issued in 1999; authorized.O'125 million shares; Outstanding shares:>P'2000 -- 31,586,735 and 1999 -- 26,687,002.............. P"0.3 P"0.3AQ'Additional paid-in capital................................ Q"124.8 Q"37.9AR'Retained earnings......................................... R"37.9 R"5.6AS'Accumulated other comprehensive income.................... S"0.1 S"0.7CU'TOTAL STOCKHOLDERS' EQUITY.................................. U"163.1 U"44.5CW'TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY.................. W"$350.9 W"$313.4QZ'The accompanying notes are an integral part of these financial statements.)\'TELEDYNE TECHNOLOGIES INCORPORATED6]'CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY^'(IN MILLIONS)`^ACCUMULATEDa^ADVANCESa^ADDITIONAL a^OTHER a^TOTALb^(TO) FROM b^COMMONb^PAID-INb^RETAINEDb^COMPREHENSIVEb^STOCKHOLDERS' c^ATI c^STOCKc^CAPITALc^EARNINGS c^INCOME c^EQUITY.e'BALANCE, DECEMBER 28, 1997............. e"$107.5 e"$ -- e"$ -- e"$ -- e"$ 1.9 e"$109.4,f'Net income........................... f"48.7 f"-- f"-- f"-- f"-- f"48.7)g'Other comprehensive income, net of h'tax:#i'Foreign currency translation(j'losses........................... j"-- j"-- j"-- j"-- j"(0.2) j"(0.2),l'Comprehensive income................. l"48.7 l"-- l"-- l"-- l"(0.2) l"48.5,m'Net transactions with ATI............ m"(51.5) m"-- m"-- m"-- m"-- m"(51.5).o'BALANCE, JANUARY 3, 1999............... o"$104.7 o"$ -- o"$ -- o"$ -- o"$ 1.7 o"$106.4,p'Net income........................... p"43.4 p"-- p"-- p"-- p"-- p"43.4)q'Other comprehensive income, net of r'tax:#s'Foreign currency translation(t'losses........................... t"-- t"-- t"-- t"-- t"(0.1) t"(0.1),v'Comprehensive income................. v"43.4 v"-- v"-- v"-- v"(0.1) v"43.3,w'Net transactions with ATI............ w"(47.5) w"-- w"-- w"-- w"-- w"(47.5).y'BALANCE PRIOR TO SPIN-OFF, NOVEMBER 29,,z'1999................................. z"$100.6 z"$ -- z"$ -- z"$ -- z"$ 1.6 z"$102.2{'Spin-off capitalization*|'transactions.......................|"(100.6) |"0.3 |"37.9 |"-- |"(0.9) |"(63.3).~'BALANCE AFTER SPIN-OFF................. ~"$ -- ~"$ 0.3 ~"$ 37.9 ~"$ -- ~"$ 0.7 ~"$ 38.9,'Net income/comprehensive income...... "-- "-- "-- "5.6 "-- "5.6.'BALANCE, JANUARY 2, 2000............... "$ -- "$ 0.3 "$ 37.9 "$ 5.6 "$ 0.7 "$ 44.5,'Net income........................... "-- "-- "-- "32.3 "-- "32.3)'Other comprehensive income, net of 'tax:#'Foreign currency translation('losses........................... "-- "-- "-- "-- "(0.6) "(0.6),'Comprehensive income................. "-- "-- "-- "32.3 "(0.6) "31.7+'Exercise of stock options and other,*'net................................ "-- "-- "2.2 "-- "-- "2.2)'Tax benefit from exercise of stock*'options............................ "-- "-- "0.7 "-- "-- "0.7,'Issuance of common stock............. "-- "-- "84.0 "-- "-- "84.0.'BALANCE, DECEMBER 31, 2000............. "$ -- "$ 0.3 "$124.8 "$37.9 "$ 0.1 "$163.1Q'The accompanying notes are an integral part of these financial statements.)'TELEDYNE TECHNOLOGIES INCORPORATED,'CONSOLIDATED STATEMENTS OF CASH FLOWS'(IN MILLIONS) ^2000 ^1999 ^1998'OPERATING ACTIVITIESA'Net income from continuing operations..................... "$ 31.9 "$ 47.2 "$ 46.4?'Adjustments to reconcile net income to net cash provided'by operating activities:>'Depreciation and amortization of assets................ "14.8 "11.3 "10.6>'Deferred income taxes.................................. "3.4 "(1.4) "(0.4)>'Gains on sale of property, plant and equipment......... "(0.1) "(0.1) "(0.4)3'Changes in operating assets and liabilities:>'Decrease(increase) in accounts receivables............. "(9.4) "(12.6) "15.6>'Increase in inventories................................ "(13.8) "(1.8) "(7.8)>'Increase in prepaid expenses and other assets.......... "(1.6) "(2.8) "-->'Increase in accounts payable........................... "14.5 "4.3 "0.4>'Increase(decrease) in accrued liabilities.............. "9.1 "(0.8) "(4.8)>'Increase (decrease) in current income taxes receivable,<'net.................................................. "(4.3) "3.8 "-->'Increase in other long-term liabilities................ "4.3 "-- "2.95'Increase (decrease) in accrued post retirement<'benefits............................................. "(2.4) "0.6 "0.2>'Decrease in accrued pension obligation................. "(9.5) "-- "--A'Other operating, net...................................... "(0.4) "(1.8) "(2.0)>'NET CASH PROVIDED BY OPERATING ACTIVITIES.............. "36.5 "45.9 "60.7>'Net cash from discontinued operations.................. "1.5 "1.5 "6.4>'NET CASH PROVIDED BY OPERATING ACTIVITIES.............. "38.0 "47.4 "67.1'INVESTING ACTIVITIESA'Purchases of property, plant and equipment................ "(30.7) "(28.3) "(16.7)A'Proceeds from sale of business, net....................... "17.0 "-- "--A'Disposals of property, plant and equipment................ "0.1 "0.1 "0.7A'Other investing, net...................................... "(4.3) "(0.7) "1.7>'Net cash used by investing activities.................. "(17.9) "(28.9) "(14.3)>'Net cash used by discontinued operations............... "(1.5) "(3.2) "(1.3)>'NET CASH USED BY INVESTING ACTIVITIES.................. "(19.4) "(32.1) "(15.6)'FINANCING ACTIVITIESA'Net payments on long-term debt............................ "(97.0) "(3.0) "--A'Net proceeds from common stock offering................... "84.0 "-- "--A'Proceeds from exercise of stock options and other, net.... "2.2 "-- "--A'Net advances/spin-off capitalization with ATI............. "-- "(5.2) "(51.5)>'NET CASH USED BY FINANCING ACTIVITIES.................. "(10.8) "(8.2) "(51.5)C'INCREASE IN CASH AND CASH EQUIVALENTS....................... "7.8 "7.1 "--C'Cash and cash equivalents -- beginning of year.............. "7.1 "-- "--C'CASH AND CASH EQUIVALENTS -- END OF YEAR.................... "$ 14.9 "$ 7.1 "$ --Q'The accompanying notes are an integral part of these financial statements.