Pension Plans and Postretirement Benefits

For the domestic pension plans, the discount rate decreased to 4.02% in 2018 compared with a 4.54% discount rate used in 2017. Pension expense associated with contracts pursuant to U.S. Government Cost Accounting Standards (“CAS”) was $3.2 million for the third quarter of 2018 and $3.5 million for the third quarter of 2017. Pension expense associated with contracts pursuant to CAS was $9.7 million for the first nine months of 2018 and $10.4 million for the first nine months of 2017. Pension expense determined under CAS can generally be recovered through the pricing of products and services sold to the U.S. Government. Teledyne has not made any cash pension contributions to its domestic qualified pension plan since 2013. No cash pension contributions are planned for 2018 for the domestic qualified pension plan.



	Third Quarter						Nine Months
	2018			2017			2018			2017
Service cost — benefits earned during the period (in millions)	$	2.7		$	2.7		$	8.1		$	8.1

Pension non-service income (in millions):
Interest cost on benefit obligation	$	8.2		$	9.1		$	24.5		$	27.4
Expected return on plan assets	(17.9		)	(18.3		)	(53.7		)	(54.9		)
Amortization of prior service cost	(1.5		)	(1.5		)	(4.5		)	(4.5		)
Amortization of net actuarial loss	7.8			7.3			23.6			21.9
Pension non-service income	$	(3.4	)	$	(3.4	)	$	(10.1	)	$	(10.1	)

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



	Third Quarter						Nine Months
Postretirement benefits non-service (income)/expense (in millions):	2018			2017			2018			2017
Interest cost on benefit obligation	$	0.1		$	0.1		$	0.3		$	0.3
Amortization of net actuarial gain	(0.1		)	(0.1		)	(0.3		)	(0.3		)
Postretirement benefits non-service (income)/expense	$	—		$	—		$	—		$	—