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Pension Plans and Postretirement Benefits (Tables)
 12 Months Ended
Jan. 01, 2017
Compensation and Retirement Disclosure [Abstract]  
Net Periodic Benefit Cost (Income) for Defined Benefit Pension Plans and Postretirement Benefit Plans
 
  
 
 Net period postretirement benefit cost (income) - in millions:
  
2016
 
2015
 
2014
Service cost - benefits earned during the period
  
$
—

 
$
—

 
$
—

Interest cost on benefit obligation
  
0.5

 
0.5

 
0.6

Amortization of prior service cost
  
—

 
—

 
(0.2
)
Amortization of actuarial gain
  
(0.4
)
 
(0.2
)
 
(0.5
)
Net periodic benefit (income) expense
  
$
0.1

 
$
0.3

 
$
(0.1
)
 Net periodic benefit (income) expense - in millions:
 
Domestic
 
 Foreign
 
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost - benefits earned during the period
 
$
10.4

 
$
12.4

 
$
11.7

 
$
0.8

 
$
0.9

 
$
0.8

Interest cost on benefit obligation
 
38.9

 
37.8

 
40.3

 
1.6

 
1.7

 
2.2

Expected return on plan assets
 
(72.9
)
 
(74.4
)
 
(73.7
)
 
(2.2
)
 
(2.2
)
 
(2.6
)
Amortization of prior service cost
 
(6.0
)
 
(6.0
)
 
(4.6
)
 
—

 
—

 
—

Amortization of actuarial loss
 
26.6

 
33.4

 
24.6

 
0.6

 
0.6

 
—

Curtailment
 
—

  
(1.2
)
 
—

 
—

  
—

 
—

Net periodic benefit (income) expense
 
$
(3.0
)
 
$
2.0

 
$
(1.7
)
 
$
0.8

 
$
1.0

 
$
0.4
Schedule of Assumptions Used
The following assumptions were used to measure the net benefit income/cost within each respective year:
Pension Plan Assumptions:
 
Weighted average discount rate
 
Weighted average increase in future compensation levels
 
Expected weighted-average long-term rate of return
 
 
 
 
 
 
 
Domestic plan - 2016
 
4.91
%
 
2.75
%
 
8.00
%
Domestic plan - 2015
 
4.50
%
 
2.75
%
 
8.25
%
Domestic plan - 2014
 
5.40
%
 
2.75
%
 
8.25
%
 
 
 
 
 
 
 
Foreign plans 2016
 
0.90% - 3.60%

 
1.00% - 2.43%

 
1.40% - 6.50%

Foreign plans 2015
 
1.20% - 3.50%

 
1.30% - 2.40%

 
1.80% - 6.40%

Foreign plans 2014
 
2.10% - 4.30%

 
1.75% - 2.50%

 
3.00% - 6.40%

 
The key assumptions used to measure the benefit obligation at each respective year-end were
Reconciliation of Beginning and Ending Balances of Benefit Obligation
 
  
2016
 
2015
Changes in benefit obligation (in millions):
  
 
 
 
Benefit obligation - beginning of year
  
$
10.7

 
$
12.8

Interest cost on projected benefit obligation
  
0.5

 
0.5

Actuarial gain
  
0.1

 
(1.3
)
Benefits paid
  
(1.5
)
 
(1.3
)
Benefit obligation - end of year
  
$
9.8

 
$
10.7

 
  
Domestic
 
Foreign
 
  
2016
 
2015
 
2016
 
2015
Changes in benefit obligation (in millions):
  
 
 
 
 
 
 
 
Benefit obligation - beginning of year
  
$
820.4

 
$
878.4

 
$
56.6

 
$
61.1

Service cost - benefits earned during the year
  
10.4

 
12.4

 
0.8

 
0.9

Interest cost on projected benefit obligation
  
38.9

 
37.8

 
1.6

 
1.7

Actuarial (gain) loss
  
29.5

 
(33.8
)
 
6.2

 
(0.9
)
Benefits paid(a)
  
(88.3
)
 
(57.2
)
 
(1.8
)
 
(2.8
)
Plan amendments(b)
  
—

 
(17.0
)
 
(0.3
)
 
(0.2
)
Settlements/curtailments
  
—

  
—

  
(4.6
)
  
—

Other - including foreign currency
 
—

 
(0.2
)
 
(7.1
)
 
(3.2
)
Benefit obligation - end of year
  
$
810.9

 
$
820.4

 
$
51.4

 
$
56.6

 
 
 
 
 
 
 
 
 
Accumulated benefit obligation - end of year
  
$
807.3

 
$
817.8

 
$
49.1

 
$
53.7


(a)
The 2016 and 2015 amounts include lump sum payments to certain participants of $14.6 million and $10.5 million, respectively. In addition, in 2016, the Company’s U.S. domestic qualified pension plan purchased group annuity contracts from two insurance companies and paid a total annuity premium of $27.2 million.
(b)
The $17.0 million amount reflects the impact of actions taken in 2015 whereby Teledyne amended the domestic qualified pension plan to allow participants to elect a lump-sum payment form upon retirement.

 
Reconciliation of the Beginning and Ending Balances of the Fair Value of Plan Assets
 
  
Domestic
 
Foreign
 
  
2016
 
2015
 
2016
 
2015
Changes in plan assets (in millions):
  
 
 
 
 
 
 
 
Fair value of net plan assets - beginning of year
  
$
890.4

 
$
957.5

 
$
43.8

 
$
47.6

Actual return on plan assets
  
52.9

 
(12.1
)
 
5.8

 
0.7

Employer contribution - other benefit plan
  
2.1

 
2.2

 
3.4

 
0.7

Foreign currency changes
  
—

 
—

 
(5.9
)
 
(2.4
)
Benefits paid
  
(88.3
)
 
(57.2
)
 
(1.8
)
 
(2.8
)
Other
 
—

 
—

 
(3.2
)
 
—

Fair value of net plan assets - end of year
  
$
857.1

 
$
890.4

 
$
42.1

 
$
43.8
Schedule of Funded Status and Amounts Recognized in Balance Sheet
The following table sets forth the funded status and amounts recognized in the consolidated balance sheets at year-end 2016 and 2015 for the domestic qualified and nonqualified pension plans and the foreign-based pension plans for benefits provided to certain employees (in millions):
 
  
Domestic
 
Foreign
 
  
2016
 
2015
 
2016
 
2015
Funded status
  
$
46.2

 
$
70.0

 
$
(9.3
)
 
$
(12.8
)
 
  
 
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets:
  
 
 
 
 
 
 
 
Prepaid pension asset long-term
  
$
88.5

 
$
111.0

 
$
—

 
$
—

Accrued pension obligation long-term
 
(34.5
)
 
(33.8
)
 
(9.3
)
 
(12.8
)
Accrued pension obligation short-term
  
(2.6
)
 
(2.2
)
 
—

 
—

Other long-term liabilities
  
(5.2
)
 
(5.0
)
 
—

 
—

Net amount recognized
  
$
46.2

 
$
70.0

 
$
(9.3
)
 
$
(12.8
)
 
 
 
 
 
Amounts recognized in accumulated other comprehensive loss:
  
 
 
 
 
 
 
 
Prior service credit
  
$
(30.7
)
 
$
(36.7
)
 
$
(0.5
)
 
$
(0.3
)
Net loss
  
421.5

 
398.6

 
10.3

 
13.0

Net amount recognized, before tax effect
  
$
390.8

 
$
361.9

 
$
9.8

 
$
12.7



The following table sets forth the funded status and amounts recognized in Teledyne’s consolidated balance sheets for the postretirement plans at year-end 2016 and 2015 (in millions):
 
 
2016
 
2015
Funded status:
 
 
 
 
Funded status
 
$
(9.8
)
 
$
(10.7
)
Unrecognized net gain
 
(3.8
)
 
(4.2
)
Accrued benefit cost
 
$
(13.6
)
 
$
(14.9
)
 
 
 
 
 
Amounts recognized in the consolidated balance sheets:
 
 
 
 
Accrued postretirement benefits (long-term)
 
$
(8.7
)
 
$
(9.6
)
Accrued postretirement benefits (short-term)
 
(1.1
)
 
(1.1
)
Accumulated other comprehensive income
 
(3.8
)
 
(4.2
)
Net amount recognized
 
$
(13.6
)
 
$
(14.9
)
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows (in millions):
 
 
2016
2015
Projected benefit obligation
 
$
93.7

$
97.6

Accumulated benefit obligation
 
$
91.4

$
94.7

Fair value of plan assets
 
$
42.1

$
43.8
Fair Value of Assets by Fair Value Hierarchy
The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S. and foreign pension plans as of January 1, 2017, by asset category are as follows (in millions):
Asset category:(a)
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents (b)
 
$
—

 
$
39.5

 
$
—

 
$
39.5

Equity securities
 
152.0

 
78.2

 
—

 
230.2

U.S. government securities and futures
 
46.2

 
0.1

 
—

 
46.3

Corporate bonds
 
—

 
84.8

 
—

 
84.8

Insurance contracts related to foreign plans
 
—

 
12.7

 
—

 
12.7

Fair value of net plan assets at the end of the year
 
$
198.2

 
$
215.3

 
$
—

 
$
413.5

 
 
 
 
 
 
 
 
 
Investments measured at net asset value:
 
 
 
 
 
 
 
 
Equity securities
 
 
 
 
 
 
 
$
147.2

Alternatives
 
 
 
 
 
 
 
148.5

Mutual funds (c)
 
 
 
 
 
 
 
136.4

Corporate bonds
 
 
 
 
 
 
 
19.4

Senior secured loans
 
 
 
 
 
 
 
4.4

Mortgage-backed securities
 
 
 
 
 
 
 
16.5

High yield bonds
 
 
 
 
 
 
 
13.2

Fair value of net plan assets at the end of the year
 
 
 
 
 
 
 
$
485.6

a) There were no transfers of plan assets between the three levels of the fair value hierarchy during the year.
b) Reflects cash and cash equivalents held in overnight cash investments.
c) 29% of mutual funds invest in fixed income types of securities; 71% invest in equity securities.

The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S. and foreign pension plans as of January 3, 2016, by asset category are as follows (in millions):
Asset category: (a)
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents (b)
 
$
—

 
$
30.3

 
$
—

 
$
30.3

Equity securities
 
185.5

 
69.4

 
—

 
254.9

U.S. government securities and futures
 
73.6

 
0.1

 
—

 
73.7

Corporate bonds
 
—

 
81.4

 
—

 
81.4

Insurance contracts related to foreign plans
 
—

 
14.8

 
—

 
14.8

Fair value of net plan assets at the end of the year
 
$
259.1

 
$
196.0

 
$
—

 
$
455.1

 
 
 
 
 
 
 
 
 
Investments measured at net asset value:
 
 
 
 
 
 
 
 
Equity securities
 
 
 
 
 
 
 
$
180.9

Alternatives
 
 
 
 
 
 
 
110.9

Mutual funds (c)
 
 
 
 
 
 
 
135.2

Corporate bonds
 
 
 
 
 
 
 
20.4

Senior secured loans
 
 
 
 
 
 
 
4.0

Mortgage-backed securities
 
 
 
 
 
 
 
15.9

High yield bonds
 
 
 
 
 
 
 
11.7

Fair value of net plan assets at the end of the year
 
 
 
 
 
 
 
$
479.0


(a) There were $15.3 million of transfers of plan assets between the three levels of the fair value hierarchy during the year.
(b) Reflects cash and cash equivalents held in overnight cash investments.
(c) 18% of mutual funds invest in fixed income types of securities; 82% invest in equity securities.
The following table sets forth the percentage of year-end market value by asset class for the pension plans:
Market value by asset class:
  
Domestic 
 Plan  Assets
 % to Total
 
Foreign
 Plan Assets
 % to Total
 
  
2016
 
2015
 
2016
 
2015
Equity instruments
  
57
%
 
59
%
 
75
%
 
75
%
Fixed income instruments
  
30

 
29

 
15

 
15

Alternatives and other
  
13

 
12

 
10

 
10

Total
  
100
%
 
100
%
 
100
%
 
100
%
Estimated Future Benefit Payments
Estimated future pension plan benefit payments (in millions): 
  
Domestic
 
Foreign
2017
  
$
56.9

  
$
2.2

2018
  
57.7

  
2.0

2019
  
58.0

  
1.8

2020
  
57.8

  
2.0

2021
  
58.6

  
1.8

2022-2026
  
295.9

  
10.5

Total
  
$
584.9

  
$
20.3

The measurement date for the Company’s postretirement plans is December 31.

Future postretirement plan benefit payments (in millions):
  
 
2017
  
$
1.1

2018
  
1.0

2019
  
1.0

2020
  
0.9

2021
  
0.9

2022-2026
  
3.5

Total
  
$
8.4