Pension Plans and Postretirement Benefits

6 Months Ended

Jun. 28, 2020

Retirement Benefits [Abstract]

Pension Plans and Postretirement Benefits

Pension Plans and Postretirement Benefits

Effective January 1, 2020, Teledyne restructured its domestic qualified defined benefit pension plan. The restructuring involved dividing our domestic qualified defined pension plan into two separate plans, one comprised primarily of inactive participants (the “inactive plan”) and the other comprised primarily of active participants (the “active plan”). The reorganization was made to efficiently facilitate a targeted investment strategy and to provide additional flexibility in evaluating opportunities to reduce risk and volatility. As a result of the restructuring, the Company re-measured the assets and liabilities of the two plans, based on assumptions and market conditions on the January 1, 2020 effective date. Actuarial gains and losses associated with the active plan will continue to be amortized over the average remaining service period of the active participants, while the actuarial gains and losses associated with the inactive plan will be amortized over the average remaining life expectancy of the inactive participants which is currently approximately 17.7 years.

For the domestic qualified pension plans, the weighted-average discount rate decreased to 3.41% in 2020 compared with a 4.59% discount rate used in 2019. Teledyne has not made any cash pension contributions to its domestic qualified pension plan since 2013. No cash pension contributions are planned for 2020 for the domestic qualified pension plans.

	Second Quarter				Six Months
	2020		2019		2020		2019
Service cost — benefits earned during the period (in millions)	$	2.6	$	2.3	$	5.2	$	4.7
Pension non-service income (in millions):
Interest cost on benefit obligation	$	6.8	$	8.4	$	13.7	$	16.8
Expected return on plan assets	(14.3)		(16.6)		(28.6)		(33.1)
Amortization of prior service cost	(1.5)		(1.5)		(3.0)		(3.0)
Amortization of net actuarial loss	5.8		7.8		11.5		15.5
Curtailment/settlements	—		(0.1)		0.7		(0.4)
Pension non-service income	$	(3.2)	$	(2.0)	$	(5.7)	$	(4.2)

Teledyne sponsors several postretirement defined benefit plans that provide health care and life insurance benefits for certain eligible retirees. Postretirement benefits non-service expense is not material.