Pension Plans and Postretirement Benefits

For the domestic pension plan, the discount rate decreased to 4.54% in 2017 compared with a 4.91% discount rate used in 2016. Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (“CAS”) was $3.5 million and $10.4 million for the third quarter and first nine months of both 2017 and 2016, respectively. 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 2017 or 2016. No cash pension contributions are planned for 2017 for the domestic pension plan.



	Third Quarter						Nine Months
Net periodic pension benefit (income) expense (in millions):	2017			2016			2017			2016
Service cost — benefits earned during the period	$	2.7		$	2.8		$	8.1		$	8.4
Interest cost on benefit obligation	9.1			10.2			27.4			30.4
Expected return on plan assets	(18.3		)	(18.8		)	(54.9		)	(56.3		)
Amortization of prior service cost	(1.5		)	(1.5		)	(4.5		)	(4.5		)
Amortization of net actuarial loss	7.3			6.8			21.9			20.4
Net periodic pension income	$	(0.7	)	$	(0.5	)	$	(2.0	)	$	(1.6	)

Teledyne sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees.



	Third Quarter						Nine Months
Net periodic postretirement benefits expense (in millions):	2017			2016			2017			2016
Interest cost on benefit obligation	$	0.1		$	0.1		$	0.3		$	0.4
Amortization of net actuarial gain	(0.1		)	(0.1		)	(0.3		)	(0.3		)
Net periodic postretirement expense	$	—		$	—		$	—		$	0.1