±/2ÿñH5  d 1$&%*ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ)ñ'TELEDYNE TECHNOLOGIES INCORPORATED(ñ'CONSOLIDATED STATEMENTS OF INCOME.ñ'(In millions, except per-share amounts) ñ^2001 ñ^2000 ñ^1999 ñ'Salesñ"$ 744.3ñ"$ 795.1ñ"$ 761.4ñ'Costs and Expensesñ'Cost of sales ñ"573.4 ñ"579.6 ñ"552.13ñ 'Selling, general and administrative expenses ñ "143.8 ñ "158.4 ñ "130.5ñ 'Asset impairment charge ñ "7.5 ñ "-- ñ "--&ñ 'Restructuring and other charges ñ "8.8 ñ "-- ñ "--ñ 'Costs and expenses ñ "733.5 ñ "738.0 ñ "682.6ñ 'Operating profit ñ "10.8 ñ "57.1 ñ "78.8%ñ'Interest and debt expense, net ñ"1.9 ñ"5.3 ñ"0.8ñ'Other income ñ"2.4 ñ"1.1 ñ"1.0/ñ'Income from continuing operations beforeñ'income taxes ñ"11.3 ñ"52.9 ñ"79.0!ñ'Provision for income taxes ñ"4.5 ñ"21.0 ñ"31.8(ñ'Income from continuing operations ñ"6.8 ñ"31.9 ñ"47.2*ñ'Discontinued operations, net of tax ñ"(0.2 ) ñ"0.4 ñ"1.8ñ'Net incomeñ"$ 6.6ñ"$ 32.3ñ"$ 49.0'ñ'Basic earnings per common share:ñ'Continuing operationsñ"$ 0.21ñ"$ 1.12ñ"$ 1.73ñ'Discontinued operationsñ"(0.01 ) ñ"0.01 ñ"0.06&ñ'Basic earnings per common shareñ"$ 0.20ñ"$ 1.13ñ"$ 1.79)ñ'Diluted earnings per common share:ñ'Continuing operationsñ"$ 0.21ñ"$ 1.08ñ"$ 1.73ñ'Discontinued operationsñ"(0.01 ) ñ"0.01 ñ"0.06(ñ'Diluted earnings per common shareñ"$ 0.20ñ"$ 1.09ñ"$ 1.79Qñ'The accompanying notes are an integral part of these financial statements.)ñ!'TELEDYNE TECHNOLOGIES INCORPORATED"ñ"'CONSOLIDATED BALANCE SHEETS*ñ#'(In millions, except share amounts) ñ%^2001 ñ%^2000ñ&'Current Assets ñ''Cash and cash equivalentsñ'"$ 11.9ñ'"$ 14.9 ñ('Accounts receivables, net ñ("108.7 ñ("118.5ñ)'Inventories, net ñ)"56.1 ñ)"65.2!ñ*'Deferred income taxes, net ñ*"18.4 ñ*"16.97ñ+'Prepaid expenses, taxes and other current assets ñ+"14.2 ñ+"7.3ñ,'Total current assets ñ,"209.3 ñ,"222.8)ñ-'Property, plant and equipment, net ñ-"80.2 ñ-"74.0!ñ.'Deferred income taxes, net ñ."7.9 ñ."27.0ñ/'Prepaid pension cost ñ/"5.2 ñ/"--ñ0'Goodwill, net ñ0"26.2 ñ0"7.6ñ1'Other assets, net ñ1"20.5 ñ1"19.5ñ2'Total Assetsñ2"$ 349.3ñ2"$ 350.9+ñ3'Liabilities and Stockholders' Equityñ4'Accounts payableñ4"$ 36.9ñ4"$ 58.7ñ5'Accrued liabilities ñ5"57.1 ñ5"56.5 ñ6'Total current liabilities ñ6"94.0 ñ6"115.2ñ7'Long-term debt ñ7"30.0 ñ7"--!ñ8'Accrued pension obligation ñ8"-- ñ8"5.2&ñ9'Accrued postretirement benefits ñ9"29.0 ñ9"31.2"ñ:'Other long-term liabilities ñ:"23.3 ñ:"36.2ñ;'Total Liabilities ñ;"176.3 ñ;"187.8$ñ<'Commitments and Contingenciesñ='Stockholders' equity4ñ>'Preferred stock, $0.01 par value; outstandingñ?'shares -- none ñ?"-- ñ?"--<ñ@'Common stock, $0.01 par value; authorized 125 million ñ@"0.3 ñ@"0.3AñA'shares; Outstanding shares: 2001 -- 31,859,839 and 2000 --ñB'31586735!ñC'Additional paid-in capital ñC"128.0 ñC"124.8ñD'Retained earnings ñD"44.5 ñD"37.9-ñE'Accumulated other comprehensive income ñE"0.2 ñE"0.1!ñF'Total Stockholders' Equity ñF"173.0 ñF"163.11ñG'Total Liabilities and Stockholders' EquityñG"$ 349.3ñG"$ 350.9QñI'The accompanying notes are an integral part of these financial statements.)ñK'TELEDYNE TECHNOLOGIES INCORPORATED6ñL'CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITYñM'(In millions)ñO^AccumulatedñP^AdvancesñP^Additional ñP^Other ñP^TotalñQ^(to) from ñQ^CommonñQ^Paid-inñQ^RetainedñQ^ComprehensiveñQ^Stockholders' ñR^ATI ñR^StockñR^CapitalñR^Earnings ñR^Income ñR^EquityñT'Balance, January 3, 1999ñT"$ 104.7 ñT"$ --ñT"$ --ñT"$ --ñT"$ 1.7ñT"$ 106.4ñU'Net income ñU"43.4 ñU"-- ñU"-- ñU"-- ñU"-- ñU"43.4ñV'Other comprehensiveñW'income, net of tax:ñX'Foreign currency ñX"-- ñX"-- ñX"-- ñX"-- ñX"(0.1 ) ñX"(0.1 )ñY'translation lossesñZ'Comprehensive income ñZ"43.4 ñZ"-- ñZ"-- ñZ"-- ñZ"(0.1 ) ñZ"43.3ñ['Net transactions withñ["(47.5 ) ñ["-- ñ["-- ñ["-- ñ["--ñ["(47.5 ) ñ\'ATIñ]'Balance prior to"ñ^'spin-off, November 29, 1999 ñ^"100.6 ñ^"-- ñ^"-- ñ^"-- ñ^"1.6 ñ^"102.2ñ_'Spin-off capitalizationñ_"(100.6 ) ñ_"0.3 ñ_"37.9 ñ_"-- ñ_"(0.9 )ñ_"(63.3 )ñ`'transactionsña'Balance after spin-off ña"-- ña"0.3 ña"37.9 ña"0.7 ña"38.9 ñb'Net ñb"-- ñb"-- ñb"-- ñb"5.6 ñb"-- ñb"5.6"ñc'income/comprehensive incomeñd'Balance, January 2, 2000 ñd"-- ñd"0.3 ñd"37.9 ñd"5.6 ñd"0.7 ñd"44.5ñe'Net income ñe"-- ñe"-- ñe"-- ñe"32.3 ñe"-- ñe"32.3ñf'Other comprehensiveñg'income, net of tax:ñh'Foreign currency ñh"-- ñh"-- ñh"-- ñh"-- ñh"(0.6 ) ñh"(0.6 )ñi'translation lossesñj'Comprehensive income ñj"-- ñj"-- ñj"-- ñj"32.3 ñj"(0.6 ) ñj"31.7ñk'Exercise of stock ñk"-- ñk"-- ñk"2.9 ñk"-- ñk"-- ñk"2.9ñl'options and other, netñm'Issuance of common ñn'stock ñn"-- ñn"-- ñn"84.0 ñn"-- ñn"-- ñn"84.0ño'Balance, December 31, ño"-- ño"0.3 ño"124.8 ño"37.9 ño"0.1 ño"163.1 ñp'2000ñq'Net income ñq"-- ñq"-- ñq"-- ñq"6.6 ñq"-- ñq"6.6ñr'Other comprehensiveñs'income, net of tax:ñt'Gain on marketableñu'equity security ñu"-- ñu"-- ñu"-- ñu"-- ñu"0.2 ñu"0.2ñv'Foreign currency ñv"-- ñv"-- ñv"-- ñv"-- ñv"(0.1 ) ñv"(0.1 )ñw'translation lossesñx'Comprehensive income ñx"-- ñx"-- ñx"-- ñx"6.6 ñx"0.1 ñx"6.7ñy'Exercise of stock ñy"-- ñy"-- ñy"3.2 ñy"-- ñy"-- ñy"3.2ñz'options and other, netñ{'Balance, December 30, ñ|'2001ñ|"$ -- ñ|"$ 0.3ñ|"$ 128.0ñ|"$ 44.5ñ|"$ 0.2ñ|"$ 173.0Pñ~'The accompanying notes are an integral part of these financial statements)ñ€'TELEDYNE TECHNOLOGIES INCORPORATED,ñ'CONSOLIDATED STATEMENTS OF CASH FLOWSñ‚'(In millions) ñ„^2001 ñ„^2000 ñ„^1999ñ…'Operating Activities,ñ†'Net income from continuing operationsñ†"$ 6.8ñ†"$ 31.9ñ†"$ 47.2Bñ‡'Adjustments to reconcile net income to net cash provided byñˆ'operating activities:.ñ‰'Depreciation and amortization of assets ñ‰"20.5 ñ‰"14.8 ñ‰"11.3ñŠ'Deferred income taxes ñŠ"17.7 ñŠ"3.4 ñŠ"(1.4 )5ñ‹'Gains on sale of property, plant and equipment ñ‹"-- ñ‹"(0.1 ) ñ‹"(0.1 )@ñŒ'Noncash asset impairment, restructuring and other charges ñŒ"15.6 ñŒ"-- ñŒ"--3ñ'Changes in operating assets and liabilities:2ñŽ'Decrease (increase) in accounts receivables ñŽ"10.7 ñŽ"(9.4 )ñŽ"(12.6 ))ñ'Decrease (increase) in inventories ñ"1.4ñ"(13.8 ) ñ"(1.8 )?ñ'Decrease (increase) in prepaid expenses and other assets ñ"(2.5 ) ñ"(1.6 ) ñ"(2.8 )#ñ‘'Decrease in long term assets ñ‘"1.9 ñ‘"-- ñ‘"--.ñ’'Increase (decrease) in accounts payableñ’"(22.3 ) ñ’"14.5 ñ’"4.31ñ“'Increase (decrease) in accrued liabilities ñ“"(2.2 ) ñ“"9.1 ñ“"(0.8 )Bñ”'Increase (decrease) in current income taxes receivable, net ñ”"(4.6 ) ñ”"(4.3 ) ñ”"3.89ñ•'Increase (decrease) in other long-term liabilitiesñ•"(12.2 ) ñ•"4.3 ñ•"--=ñ–'Increase (decrease) in accrued postretirement benefits ñ–"(2.2 ) ñ–"(2.4 ) ñ–"0.6-ñ—'Decrease in accrued pension obligationñ—"(10.4 ) ñ—"(9.5 ) ñ—"--ñ˜'Other operating, net ñ˜"0.8 ñ˜"(0.4 ) ñ˜"(1.8 )0ñ™'Net cash provided by operating activities ñ™"19.0 ñ™"36.5 ñ™"45.9,ñš'Net cash from discontinued operations ñš"(1.3 ) ñš"1.5 ñš"1.50ñ›'Net cash provided by operating activities ñ›"17.7 ñ›"38.0 ñ›"47.4ñœ'Investing Activities1ñ'Purchases of property, plant and equipmentñ"(26.4 )ñ"(30.7 )ñ"(28.3 )>ñž'Purchase of business and other investments, net of cashñŸ'acquiredñŸ"(26.5 ) ñŸ"(0.3 ) ñŸ"--*ñ 'Proceeds from sale of business, net ñ "-- ñ "17.0 ñ "--1ñ¡'Disposals of property, plant and equipment ñ¡"1.0 ñ¡"0.1 ñ¡"0.1ñ¢'Other investing, net ñ¢"(1.3 ) ñ¢"(4.0 ) ñ¢"(0.7 ),ñ£'Net cash used by investing activitiesñ£"(53.2 )ñ£"(17.9 )ñ£"(28.9 )/ñ¤'Net cash used by discontinued operations ñ¤"-- ñ¤"(1.5 ) ñ¤"(3.2 ),ñ¥'Net cash used by investing activitiesñ¥"(53.2 )ñ¥"(19.4 )ñ¥"(32.1 )ñ¦'Financing Activities7ñ§'Net proceeds from (repayments of) long-term debt ñ§"30.0ñ§"(97.0 ) ñ§"(3.0 ).ñ¨'Net proceeds from common stock offering ñ¨"-- ñ¨"84.0 ñ¨"--=ñ©'Proceeds from exercise of stock options and other, net ñ©"2.5 ñ©"2.2 ñ©"--4ñª'Net advances/spin-off capitalization with ATI ñª"-- ñª"-- ñª"(5.2 )7ñ«'Net cash provided (used) by financing activities ñ«"32.5ñ«"(10.8 ) ñ«"(8.2 )7ñ¬'Increase (decrease) in cash and cash equivalents ñ¬"(3.0 ) ñ¬"7.8 ñ¬"7.15ñ­'Cash and cash equivalents -- beginning of year ñ­"14.9 ñ­"7.1 ñ­"--/ñ®'Cash and cash equivalents -- end of yearñ®"$ 11.9ñ®"$ 14.9ñ®"$ 7.1Rñ±" The accompanying notes are an integral part of these financial statements.