XML 68 R36.htm IDEA: XBRL DOCUMENT v2.4.1.9
Pension Plans and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 28, 2014
Compensation and Retirement Disclosure [Abstract]  
Net Periodic Pension Benefit Expense for Defined Benefit Pension Plans and Postretirement Benefit Plans
The following table sets forth the components of net period postretirement benefit income for the postretirement benefit plans for 2014, 2013 and 2012 (in millions):
 
  
Postretirement Benefits
 
  
2014
 
2013
 
2012
Service cost - benefits earned during the period
  
$
—

 
$
—

 
$
—

Interest cost on benefit obligation
  
0.6

 
0.6

 
0.8

Amortization of prior service cost
  
(0.2
)
 
(0.5
)
 
(0.5
)
Amortization of actuarial gain
  
(0.5
)
 
(0.3
)
 
(0.4
)
Net periodic benefit income
  
$
(0.1
)
 
$
(0.2
)
 
$
(0.1
)
The following tables set forth the components of net periodic pension benefit expense for the pension plans (in millions):
 
 
Domestic
 
 Foreign
 
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Service cost - benefits earned during the period
 
$
11.7

 
$
14.4

 
$
12.7

 
$
0.8

 
$
0.9

 
$
0.3

Interest cost on benefit obligation
 
40.3

 
36.3

 
39.6

 
2.2

 
1.9

 
1.7

Expected return on plan assets
 
(73.7
)
 
(70.1
)
 
(65.5
)
 
(2.6
)
 
(2.0
)
 
(1.7
)
Amortization of prior service cost
 
(4.6
)
 
(4.6
)
 
(4.6
)
 
—

 
—

 
—

Amortization of actuarial loss
 
24.6

 
40.6

 
24.4

 
—

 
0.1

 
0.1

Net periodic benefit (income) expense
 
$
(1.7
)
 
$
16.6

 
$
6.6

 
$
0.4

 
$
0.9

 
$
0.4
Schedule of Assumptions Used
The following assumptions were used to measure the net benefit income/cost within each respective year:
Pension Plan
 
Weighted average discount rate
 
Weighted average increase in future compensation levels
 
Expected weighted-average long-term rate of return
 
 
 
 
 
 
 
Domestic plan - 2014
 
5.40
%
 
2.75
%
 
8.25
%
Domestic plan - 2013
 
4.40
%
 
2.75
%
 
8.25
%
Domestic plan - 2012
 
5.50
%
 
2.75
%
 
8.25
%
 
 
 
 
 
 
 
Foreign plans 2014
 
2.10% - 4.30%

 
1.75% - 2.50%

 
3.00% - 6.40%

Foreign plans 2013
 
1.80% - 4.20%

 
1.75% - 2.50%

 
3.00% - 5.50%

Foreign plans 2012
 
2.00% - 4.70%

 
1.75
%
 
3.00% - 5.70%

The key assumptions used to measure the benefit obligation at each respective year-end were:
 
 
Domestic Plan
 
Foreign Plans
 
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Discount rate
 
4.50
%
 
5.40
%
 
4.40
%
 
1.20% - 3.50%
 
2.10% - 4.30%
 
1.80% - 4.20%
Salary growth rate
 
2.75
%
 
2.75
%
 
4.14
%
 
1.70% - 2.40%
 
1.75% - 2.50%
 
1.75% - 2.50%
Reconciliation of Beginning and Ending Balances of Benefit Obligation
The following table sets forth the reconciliation of the beginning and ending balances of the benefit obligation of the pension plans (in millions):
 
  
Domestic
 
Foreign
 
  
2014
 
2013
 
2014
 
2013
Changes in benefit obligation:
  
 
 
 
 
 
 
 
Benefit obligation - beginning of year
  
$
768.9

 
$
846.9

 
$
60.3

 
$
50.6

Service cost - benefits earned during the year
  
11.7

 
14.4

 
0.8

 
0.9

Interest cost on projected benefit obligation
  
40.3

 
36.3

 
2.2

 
1.9

Actuarial (gain) loss
  
134.5

 
(78.4
)
 
11.4

 
1.4

Benefits paid(a)
  
(78.6
)
 
(50.3
)
 
(2.4
)
 
(2.8
)
Plan amendments(b)
  
1.6

 
—

 
(0.1
)
 
(0.1
)
Other - including foreign currency
 
—

 
—

 
(11.1
)
 
1.6

Business combinations
  
—

 
—

 
—

 
6.8

Benefit obligation - end of year
  
$
878.4

 
$
768.9

 
$
61.1

 
$
60.3

 
 
 
 
 
 
 
 
 
Accumulated benefit obligation - end of year
  
$
875.5

 
$
767.6

 
$
59.2

 
$
58.7

 
(a)
The 2014 amount includes $32.4 million of lump sum payments to certain participants.
(b)
Impact of a new executive agreement.
The following table sets forth the reconciliation of the beginning and ending balances of the benefit obligation of the postretirement benefit plans (in millions): 
 
  
Postretirement Benefits
 
  
2014
 
2013
Changes in benefit obligation:
  
 
 
 
Benefit obligation - beginning of year
  
$
11.9

 
$
14.3

Interest cost on projected benefit obligation
  
0.6

 
0.6

Actuarial (gain) loss
  
1.6

 
(1.7
)
Benefits paid
  
(1.3
)
 
(1.3
)
Benefit obligation - end of year
  
$
12.8

 
$
11.9
Reconciliation of the Beginning and Ending Balances of the Fair Value of Plan Assets
The following table sets forth the reconciliation of the beginning and ending balances of the fair value of plan assets for the pension plans (in millions):
 
  
Domestic
 
Foreign
 
  
2014
 
2013
 
2014
 
2013
Changes in plan assets:
  
 
 
 
 
 
 
 
Fair value of plan assets - beginning of year
  
$
986.3

 
$
793.3

 
$
52.1

 
$
42.3

Actual return on plan assets
  
47.5

 
158.3

 
4.7

 
5.2

Employer contribution - defined benefit plan
  
—

 
83.0

 
—

 
—

Employer contribution - other benefit plan
  
2.3

 
2.0

 
3.3

 
1.1

Foreign currency changes
  
—

 
—

 
(3.5
)
 
0.4

Benefits paid
  
(78.6
)
 
(50.3
)
 
(2.4
)
 
(2.8
)
Other
 
—

 
—

 
(6.6
)
 
1.1

Business combination
 
—

 
—

 
—

 
4.8

Fair value of net plan assets - end of year
  
$
957.5

 
$
986.3

 
$
47.6

 
$
52.1
Schedule of Funded Status and Amounts Recognized in Balance Sheet
The following table sets forth the funded status and amounts recognized in Teledyne’s consolidated balance sheets for the postretirement plans at year-end 2014 and 2013 (in millions):
 
 
Postretirement
 Benefits
 
 
2014
 
2013
Funded status
 
$
(12.8
)
 
$
(11.9
)
Unrecognized prior service cost
 
—

 
(0.2
)
Unrecognized net gain
 
(3.1
)
 
(5.2
)
Accrued benefit cost
 
$
(15.9
)
 
$
(17.3
)
 
 
 
 
 
Accrued postretirement benefits (long-term)
 
$
(11.6
)
 
$
(10.3
)
Accrued postretirement benefits (short-term)
 
(1.2
)
 
(1.6
)
Accumulated other comprehensive income
 
(3.1
)
 
(5.4
)
Net amount recognized
 
$
(15.9
)
 
$
(17.3
)
The following table sets forth the funded status of the pension plans and amounts recognized in the consolidated balance sheets at year end 2014 and 2013 (in millions):
 
  
Domestic
 
Foreign
 
  
2014
 
2013
 
2014
 
2013
Funded status
  
$
79.1

 
$
217.4

 
$
(13.5
)
 
$
(8.2
)
 
  
 
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets:
  
 
 
 
 
 
 
 
Prepaid pension asset/(accrued pension obligation) (long-term)
  
$
86.1

 
$
222.0

 
$
(13.5
)
 
$
(8.2
)
Accrued pension obligation (short-term)
  
(1.8
)
 
(1.5
)
 
—

 
—

Other liabilities
  
(5.2
)
 
(3.1
)
 
—

 
—

Net amount recognized
  
$
79.1

 
$
217.4

 
$
(13.5
)
 
$
(8.2
)
 
 
 
 
 
Amounts recognized in accumulated other comprehensive loss:
  
 
 
 
 
 
 
 
Unrecognized prior service credit
  
$
(27.0
)
 
$
(33.1
)
 
$
(0.1
)
 
$
(0.1
)
Unrecognized net loss
  
379.6

 
243.5

 
12.9

 
3.7

Net amount recognized, before tax effect
  
$
352.6

 
$
210.4

 
$
12.8

 
$
3.6
Estimated Future Benefit Payments
The following table presents the estimated future benefit payments for the pension plans (in millions):
 
  
Domestic
 
Foreign
2015
  
$
47.6

  
$
2.5

2016
  
49.2

  
2.5

2017
  
50.6

  
2.5

2018
  
51.6

  
2.6

2019
  
52.7

  
2.4

2020-2024
  
278.6

  
13.7

Total
  
$
530.3

  
$
26.2

The measurement date for the Company’s postretirement plans is December 31. The following table presents the estimated future benefit payments for the Company’s postretirement plans (in millions):
 
  
Postretirement
 Benefit Plans
2015
  
$
1.3

2016
  
1.2

2017
  
1.2

2018
  
1.1

2019
  
1.1

2020-2024
  
4.5

Total
  
$
10.4
Year-end Market Value by Asset Class
The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S and non-U.S. pension plans as of December 31, 2014, by asset category are as follows (in millions):
Asset category
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents (a)
 
$
—

 
$
57.2

 
$
—

 
$
57.2

Equity securities:
 


 


 


 


   U.S. equity
 
183.5

 
98.6

 
—

 
282.1

   International equity
 
37.0

 
101.9

 
1.9

 
140.8

Alternatives
 
—

 
115.2

 
1.9

 
117.1

Mutual funds (b)
 
166.8

 
8.0

 
—

 
174.8

U.S. government securities
 
77.6

 
—

 
—

 
77.6

U.S. government futures
 
(0.3
)
 
—

 
—

 
(0.3
)
Corporate bonds
 
—

 
107.3

 
—

 
107.3

Senior secured loans
 
—

 
4.1

 
—

 
4.1

Mortgage-backed securities
 
—

 
15.6

 
—

 
15.6

High yield bonds
 
—

 
12.9

 
—

 
12.9

Insurance contracts related to foreign plans
 
—

 
15.9

 
—

 
15.9

Fair value of net plan assets at the end of the year
 
$
464.6

 
$
536.7

 
$
3.8

 
$
1,005.1

(a) Reflects cash and cash equivalents held in overnight cash investments.
(b) 25% of mutual funds invest in fixed income types of securities; 75% invest in equity securities.

The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S and non-U.S. pension plans as of December 31, 2013, by asset category are as follows (in millions):
Asset category
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents (a)
 
$
—

 
$
19.0

 
$
—

 
$
19.0

Equity securities:
 
 
 
 
 
 
 


   U.S. equity
 
246.7

 
129.8

 
—

 
376.5

   International equity
 
37.6

 
92.4

 
1.3

 
131.3

Alternatives
 
—

 
106.1

 
3.0

 
109.1

Mutual funds (b)
 
181.4

 
7.3

 
—

 
188.7

U.S. government securities
 
68.9

 
—

 
—

 
68.9

U.S. government futures
 
0.6

 
—

 
—

 
0.6

Corporate bonds
 
—

 
92.0

 
—

 
92.0

Senior secured loans
 
—

 
4.0

 
—

 
4.0

Mortgage-backed securities
 
—

 
14.6

 
—

 
14.6

High yield bonds
 
—

 
12.7

 
—

 
12.7

Insurance contracts related to foreign pans
 
—

 
21.0

 
—

 
21.0

Fair value of net plan assets at the end of the year
 
$
535.2

 
$
498.9

 
$
4.3

 
$
1,038.4

(a) Reflects cash and cash equivalents held in overnight cash investments.
(b) 44% of mutual funds invest in fixed income types of securities; 56% invest in equity securities
The following table sets forth the percentage of year-end market value by asset class for the pension plans:
 
  
Domestic 
 Plan  Assets
 % to Total
 
Foreign
 Plan Assets
 % to Total
 
  
2014
 
2013
 
2014
 
2013
Equity instruments
  
59
%
 
61
%
 
62
%
 
61
%
Fixed income instruments
  
30

 
29

 
11

 
10

Alternates and other
  
11

 
10

 
27

 
29

Total
  
100
%
 
100
%
 
100
%
 
100
%