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Pension Plans and Postretirement Benefits
 12 Months Ended
Jan. 02, 2022
Retirement Benefits [Abstract]  
Pension Plans and Postretirement Benefits Pension Plans and Postretirement Benefits
Pension Plans
Teledyne has two domestic qualified defined benefit pension plans covering substantially all U.S. employees hired before January 1, 2004, excluding FLIR U.S. employees. All FLIR U.S. employees participate in a defined contribution plan, as FLIR has no legacy U.S. Pension Plans. As of January 1, 2004, new Teledyne hires participate in a defined contribution plan only. The Company also has several small domestic non-qualified and foreign-based defined benefit pension plans.
The domestic qualified pension plans allow participants to elect a lump-sum payment at retirement. In 2021, 2020 and 2019, the Company made lump sum payments of $24.5 million, $24.9 million and $17.2 million, respectively, from the domestic qualified pension plans assets to certain participants in the plan. Each year beginning with 2014, the Society of Actuaries released revised mortality tables, which updated life expectancy assumptions. In consideration of these tables, each year the Company reviews the mortality assumptions used in determining our pension and post-retirement obligations. 
 Domestic  Foreign
  202120202019202120202019
Service cost - benefits earned during the period (in millions) $9.3 $9.3 $8.5 $1.3 $1.1 $0.9 
Domestic  Foreign
Pension non-service (income)/expense (in millions):202120202019202120202019
Interest cost on benefit obligation 21.6 26.5 32.4 0.7 0.9 1.2 
Expected return on plan assets (55.8)(56.0)(64.8)(1.0)(1.1)(1.4)
Amortization of prior service cost (3.6)(6.0)(6.0)0.1 0.1 0.1 
Amortization of actuarial loss 26.3 22.5 30.6 0.4 0.3 0.3 
Settlements/Curtailment —   — — —   — (0.5)
Pension non-service (income)/expense $(11.5)$(13.0)$(7.8)$0.2 $0.2 $(0.3)
The expected long-term rate of return on plan assets is reviewed annually, taking into consideration the Company’s asset allocation, historical returns on the types of assets held, the current economic environment, and prospective expectations. We determined the discount rate based on a model which matches the timing and amount of expected benefit payments to maturities of high-quality corporate bonds priced as of the pension plan measurement date. The yields on the bonds are used to derive a discount rate for the obligation.
The following assumptions were used to measure the net benefit income/cost within each respective year for the domestic qualified plans and the foreign plans:
Pension Plan Assumptions:Weighted average discount rateWeighted average increase in future compensation levelsExpected weighted-average long-term rate of return
Domestic plan - 2021
2.55% - 2.78%
2.75%
6.71% - 7.80%
Domestic plan - 2020
3.38% to 3.52%
2.75%
6.71% - 7.80%
Domestic plan - 2019
4.59%2.75%7.80%
Foreign plans - 2021
0.10% - 1.20%
1.00% - 2.50%
0.80% - 2.50%
Foreign plans - 2020
0.20% - 1.80%
1.00% - 2.50%
1.00% - 3.00%
Foreign plans - 2019
0.90% - 2.60%
1.00% - 2.50%
1.00% - 3.80%
For its domestic based pension plans the Company is projecting a long-term rate of return on plan assets of 6.82% in 2022. For its foreign based pension plans the Company is projecting a long-term rate of return on plan assets of 2.23% in 2022.
   Domestic Foreign
   2021202020212020
Changes in benefit obligation (in millions):      
Benefit obligation - beginning of year  $846.8 $805.7 $70.4 $60.3 
Service cost - benefits earned during the year  9.3 9.3 1.3 1.1 
Interest cost on projected benefit obligation  21.6 26.5 0.7 0.9 
Actuarial (gain) loss  (11.8)72.5 (7.4)5.8 
Benefits paid  (66.6)(67.2)(2.2)(1.7)
Other - including foreign currency, settlements/curtailments— — (2.6)4.0 
Benefit obligation - end of year  $799.3 $846.8 $60.2 $70.4 
Accumulated benefit obligation - end of year  $795.4 $842.0 $55.8 $65.3 

The key assumptions used to measure the benefit obligation at each respective year-end were:
Key assumptions:Domestic PlansForeign Plans
202120202019202120202019
Discount rate
2.91% - 3.08%
2.55% to 2.78%
3.41%
0.20% - 1.80%
0.10% - 1.20%
0.20% - 1.80%
Salary growth rate2.75%
2.75%
2.75%
1.00% - 2.50%
1.00% - 2.50%
1.00% -2.50%
   Domestic Foreign
   2021202020212020
Changes in plan assets (in millions):      
Fair value of net plan assets - beginning of year  $854.5 $835.7 $54.4 $48.0 
Actual return on plan assets  74.1 83.5 0.3 4.0 
Employer contribution - other benefit plan  2.3 2.5 1.9 1.1 
Foreign currency changes  — — (1.6)3.4 
Benefits paid  (66.6)(67.2)(2.2)(1.7)
Other — — 0.1 (0.4)
Fair value of net plan assets - end of year  $864.3 $854.5 $52.9 $54.4 
 
The measurement date for the Company’s pension plans is December 31.
The following tables sets forth the funded status and amounts recognized in the consolidated balance sheets at year-end 2021 and 2020 for the domestic qualified and nonqualified pension plans and the foreign-based pension plans for benefits provided to certain employees (in millions):
   Domestic Foreign
   2021202020212020
Funded status  $65.0 $7.7 $(7.3)$(16.0)
       
Amounts recognized in the consolidated balance sheets:      
Prepaid pension asset long-term  $118.9 $67.9 $4.8 $— 
Accrued pension obligation long-term(44.4)(51.6)(11.7)(15.5)
Accrued pension obligation short-term  (3.7)(2.7)(0.4)(0.5)
Other long-term liabilities  (5.8)(5.9)— — 
Net amount recognized  $65.0 $7.7 $(7.3)$(16.0)
  
Amounts recognized in accumulated other comprehensive loss:      
Net prior service cost (credit)  $(3.0)$(6.6)$0.6 $0.8 
Net loss  397.7 454.2 3.4 10.6 
Net amount recognized, before tax effect  $394.7 $447.6 $4.0 $11.4 
Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows (in millions):
20212020
Projected benefit obligation$79.2 $300.4 
Accumulated benefit obligation$74.9 $290.8 
Fair value of plan assets$15.6 $224.3 
 At year-end 2021 and 2020 the Company had an accumulated non-cash reduction to stockholders’ equity of $297.6 million and $347.8 million, respectively, related to its pension and postretirement plans. The accumulated non-cash reductions to stockholders’ equity did not affect net income and were recorded net of accumulated deferred taxes of $100.9 million at year end 2021 and $110.5 million at year end 2020.
At January 2, 2022, the estimated amounts of the minimum liability adjustment that are expected to be recognized as components of net periodic benefit cost during 2022 for the pension plans are: net loss $22.7 million and net prior service credit $1.7 million.
Estimated future pension plan benefit payments (in millions):   Domestic Foreign
2022  $62.3   $2.2 
2023  59.2   2.3 
2024  57.2   2.3 
2025  58.3   2.4 
2026  59.7   2.6 
2027-2031  267.9   13.0 
Total  $564.6   $24.8 
The following table sets forth the percentage of year-end market value by asset class for the pension plans:
Market value by asset class:  Domestic 
 Plan Assets
 % to Total		Foreign
 Plan Assets
 % to Total
   2021202020212020
Equity instruments  34 %38 %55 %52 %
Fixed income instruments  55 49 25 25 
Alternatives and other  11 13 20 23 
Total  100 %100 %100 %100 %
 The Company has an active management policy for the pension assets in the qualified domestic pension plan. As of January 2, 2022, the long term asset allocation target for the domestic plan consists of approximately 34% in equity instruments, approximately 55% in fixed income instruments and approximately 11% in alternatives.
The pension plan’s investments are stated at fair value. Plan investments that are considered a level 1 fair value hierarchy and are valued at quoted market prices in active markets. Plan investments that are considered a level 2 fair value hierarchy and are valued based on observable market data. Plan investments that would be considered a level 3 fair value hierarchy are valued based on management’s own assumption about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).
Certain investments measured at fair value using net asset values as a practical expedient are not required to be categorized in the fair value hierarchy table listed below. As such, the total fair value of these net asset values based investments has been included in the table below to permit reconciliation to the plan asset amounts previously disclosed.
The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S. and foreign pension plans as of January 2, 2022, by asset category are as follows (in millions):
Asset category:(a)Level 1Level 2Level 3Total
Cash and cash equivalents (b)$— $69.0 $— $69.0 
Equity securities2.4 230.0 — 232.4 
U.S. government securities and futures242.8 13.0 — 255.8 
Corporate bonds— 33.3 — 33.3 
Insurance contracts related to foreign plans— 15.5 — 15.5 
Fair value of net plan assets at the end of the year$245.2 $360.8 $— $606.0 
Investments measured at net asset value:
Alternatives$211.8 
Mutual funds (c)7.3 
Mortgage-backed securities54.7 
High yield bonds37.4 
Fair value of net plan assets at the end of the year$311.2 
a) There were no transfers of plan assets between the three levels of the fair value hierarchy during the year.
b) Reflects cash and cash equivalents held in overnight cash investments.
c) The mutual funds are invested in equity securities.
The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S. and foreign pension plans as of January 3, 2021, by asset category are as follows (in millions):
Asset category: (a)Level 1Level 2Level 3Total
Cash and cash equivalents (b)$— $55.0 $— $55.0 
Equity securities44.6 218.9 — 263.5 
U.S. government securities and futures202.1 13.3 — 215.4 
Corporate bonds— 48.8 — 48.8 
Insurance contracts related to foreign plans— 16.9 — 16.9 
Fair value of net plan assets at the end of the year$246.7 $352.9 $— $599.6 
Investments measured at net asset value:
Alternatives$202.9 
Mutual funds (c)16.8 
Mortgage-backed securities52.5 
High yield bonds37.1 
Fair value of net plan assets at the end of the year$309.3 
(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) The mutual funds are invested in equity securities.
U.S. equities are valued at the closing price reported in an active market on which the individual securities are traded. U.S. equities and non-U.S. equities are also valued at the net asset value provided by the independent administrator or custodian of the commingled fund.  The net asset value is based on the value of the underlying equities, which are traded on an active market. Corporate bonds are valued using inputs such as the closing price reported, if traded on an active market, values derived from comparable securities of issuers with similar credit ratings, or under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments. Fixed income investments are also valued at the net asset value provided by the independent administrator or custodian of the fund.  The net asset value is based on the underlying assets, which are valued using inputs such as the closing price reported, if traded on an active market, values derived from comparable securities of issuers with similar credit ratings, or under a discounted cash flow approach that utilizes observable inputs, such as
current yields of similar instruments.  Alternative investments are primarily valued at the net asset value as determined by the independent administrator or custodian of the fund.  The net asset value is based on the underlying investments, which are valued using inputs such as quoted market prices of identical instruments or values derived from comparable securities of issuers with similar credit ratings, or under a discounted cash flow approach that utilizes observable inputs, such as current yields of similar instruments.  
The Company’s contributions associated with its 401(k) plans were $15.2 million, $13.8 million and $13.4 million, for 2021, 2020 and 2019, respectively.
Postretirement Plans
The Company sponsors several postretirement defined benefit plans covering certain salaried and hourly employees. The plans provide health care and life insurance benefits for certain eligible retirees. Total cost for these plans was less than $1.0 million for each fiscal year 2021, 2020 and 2019.