Pension Plans and Postretirement Benefits

Teledyne’s pension income was $0.3 million for the first quarter of 2014, compared with pension expense of $4.3 million the first quarter of 2013. The change to pension income in the first quarter of 2014, from pension expense in the first quarter of 2013, primarily reflected the impact of using a 5.4 percent discount rate to determine the benefit obligation for the domestic plan in 2014 compared with a 4.4 percent discount rate used in 2013. Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (“CAS”) was $3.5 million for the first quarter of 2014, compared with $3.6 million for the first quarter of 2013. Pension expense determined under CAS can generally be recovered through the pricing of products and services sold to the U.S. Government. Teledyne did not make any cash pension contributions to its domestic pension plan in the first three months of 2014, compared with voluntary pretax cash pension contributions totaling $83.0 million to its domestic pension plan in the first three months of 2013. No cash pension contributions are planned for 2014 for the domestic pension plan.

The Company sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees. The following tables set forth the components of net income/expense for Teledyne’s pension plans and postretirement benefit plans for the first quarter of 2014 and 2013 (in millions):



	First Quarter
Pension Benefits	2014			2013
Service cost — benefits earned during the period	$	3.1		$	3.8
Interest cost on benefit obligation	10.7			9.6
Expected return on plan assets	(19.1		)	(18.1		)
Amortization of prior service cost	(1.2		)	(1.2		)
Amortization of net actuarial loss	6.2			10.2
Net (income)/expense	$	(0.3	)	$	4.3



	First Quarter
Postretirement Benefits	2014			2013
Interest cost on benefit obligation	$	0.2		$	0.2
Amortization of prior service cost	(0.1		)	(0.2		)
Amortization of net actuarial gain	(0.1		)	(0.1		)
Net (income)/expense	$	—		$	(0.1	)