Pension Plans and Postretirement Benefits

9 Months Ended

Sep. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Pension Plans and Postretirement Benefits

Pension Plans and Postretirement Benefits

Teledyne has a defined benefit pension plan covering substantially all U.S. employees hired before January 1, 2004 or approximately 27% of Teledyne’s employees. The Company’s assumed discount rate on plan liabilities is 5.5% for 2012. In 2011, the assumed discount rate on plan liabilities was 5.90% until the April 19, 2011 sale date of the piston engine businesses. For the remainder of 2011 the plan liabilities were measured using a discount rate of 6.15%. The Company’s assumed long-term rate of return on plan assets is 8.25% for both 2012 and 2011.

Teledyne’s net periodic pension expense was $1.7 million and $5.0 million for the third quarter and first nine months of 2012, respectively, compared with net periodic pension expense of $1.5 million and $5.2 million for the third quarter and first nine months of 2011, respectively. Pension expense allocated to contracts pursuant to U.S. Government Cost Accounting Standards (“CAS”) was $3.1 million and $9.0 million for the third quarter and first nine months of 2012, respectively, compared with $2.9 million and $8.9 million for the third quarter and first nine months of 2011, respectively. Pension expense determined under CAS can generally be recovered through the pricing of products and services sold to the U.S. Government. Teledyne made voluntary cash pension contributions totaling $92.8 million to its qualified pension plan in the first nine months of 2012, compared with voluntary cash pension contributions of $69.0 million to its qualified pension plan in the first nine months of 2011.

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

The following tables set forth the components of net periodic pension benefit expense for Teledyne’s defined benefit pension plans and postretirement benefit plans for the third quarter and first nine months of 2012 and 2011 (in millions):

	Third Quarter						Nine Months
Pension Benefits - U.S. Plans	2012			2011			2012			2011
Service cost — benefits earned during the period	$	3.2		$	3.7		$	9.5		$	9.4
Interest cost on benefit obligation	10.0			12.5			29.8			30.0
Expected return on plan assets	(16.4		)	(18.6		)	(49.1		)	(44.2		)
Amortization of prior service cost	(1.2		)	0.1			(3.5		)	0.2
Amortization of net actuarial loss	6.1			3.8			18.3			9.8
Net periodic benefit expense	$	1.7		$	1.5		$	5.0		$	5.2
	Third Quarter						Nine Months
Pension Benefits - Non U.S. Plans	2012			2011			2012			2011
Interest cost on benefit obligation	$	0.3		$	0.4		$	1.1		$	1.2
Expected return on plan assets	(0.3		)	(0.4		)	(1.1		)	(1.2		)
Net periodic benefit expense	$	—		$	—		$	—		$	—

	Third Quarter						Nine Months
Postretirement Benefits	2012			2011			2012			2011
Service cost — benefits earned during the period	$	—		$	—		$	—		$	—
Interest cost on benefit obligation	0.2			0.2			0.6			0.7
Amortization of prior service cost	(0.1		)	(0.1		)	(0.3		)	(0.3		)
Amortization of net actuarial gain	(0.1		)	(0.2		)	(0.3		)	(0.7		)
Net periodic benefit expense	—			(0.1		)	—			(0.3		)
Less: Amounts attributable to discontinued operations included above	—			0.1			—			0.3
Net periodic benefit (income) expense	$	—		$	—		$	—		$	—