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Roughly what % of Teledyne?s overall business comes from the subsea/offshore/marine side of the business? Back in 2004, offshore marine represented just under 4% of total sales. In 2011, our marine businesses accounted for 19% of Teledyne?s total revenues. Can you share with our readers the Teledyne philosophy be- hind the acquisitions? Logically, we target acquisitions that are highly complementary, ac- cretive to earnings-per-share, possess leading technology, market position and brand, who have demonstrated a growth path and who are led by a strong, dedi- cated management team. And, to further emphasize, we will not consummate a deal if the company?s management team isn?t prepared to remain at its helm. Every acquired company is encouraged to retain, nurture, privilege and continue to practice the innovative culture that attracted them to us in the  rst place. How- ever, being a publicly traded company, we do impose a more frequent and timely  nancial reporting discipline as well as a corporate-wide set of operational ex- cellence metrics. We extract the best practices and best-of-breed methodologies amongst our companies and share them across our segment. The integration pro- cess begins with  nancial controls, after which it is customized for each acqui- sition based on risk exposures, priorities, and/or business needs. We don?t toss a rigid integration playbook at the feet of an acquired company. Early on we conduct a strategic technology roadmapping study of the business to hone and prioritize R&D investments in order to maximize bene t and impact. We also utilize experienced corporate and segment level functional experts to assist and remain on call during the integration phase. What do you count as the biggest advantage to integrating multiple brands under the Teledyne corporate banner? Clearly, the biggest advantage of associating and linking the Teledyne corporate name with the individual company names under a Teledyne Marine brand is the ability to directly connect with Teledyne?s global commercial repu- tation, provide greater comfort and con dence to each acquired company?s cus- tomer base, convey greater market strength, stronger business dependability and con dence, reduced business risk and uncertainty, superior critical mass and proven corporate resources to deliver on the most challenging of programs. What do you count as the biggest challenge to integrating multiple brands under the Teledyne corporate banner? There are really no signi cant challenges. However, because our acqui- sitions are highly complementary, sister companies want to immediately engage acquired companies with excellent ideas of integrating each other?s technologies into exciting, novel systems-level solutions or into new or existing platforms. So, the minor challenge becomes one of choosing whose individual brand goes on the integrated solution or do the businesses defer to the umbrella brand of Teledyne Marine. What areas, by technology type or niche, do you feel are most ripe today for consolidation and why? Several areas come to mind, especially were a case for a broader offering of related products or services can be made. Marine sensors, whether physical, Interview September 2012MTR #7 (18-33).indd 22MTR #7 (18-33).indd 229/10/2012 9:26:46 AM9/10/2012 9:26:46 AM