XML 98 R34.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Pension Plans and Postretirement Benefits (Tables)
12 Months Ended
Dec. 29, 2019
Retirement Benefits [Abstract]  
Net Periodic Benefit Cost (Income) for Defined Benefit Pension Plans and Postretirement Benefit Plans
 Domestic  Foreign
  201920182017201920182017
Service cost - benefits earned during the period (in millions) $8.5  $9.8  $10.2  $0.9  $0.9  $1.0  
Domestic  Foreign
Pension non-service income (in millions):201920182017201920182017
Interest cost on benefit obligation 32.4  31.5  35.6  1.2  1.3  1.2  
Expected return on plan assets (64.8) (70.0) (71.3) (1.4) (1.7) (2.1) 
Amortization of prior service cost (6.0) (6.0) (6.0) 0.1  (0.1) (0.1) 
Amortization of actuarial loss 30.6  31.1  28.6  0.3  0.4  0.6  
Curtailment —      —  —  (0.5)     (0.1) (0.4) 
Pension non-service income  $(7.8) $(13.4) $(13.1) $(0.3) $(0.2) $(0.8) 
Postretirement benefits non-service expense (in millions):  201920182017
Interest cost on benefit obligation  0.4  0.4  0.4  
Amortization of actuarial gain  (0.3) (0.3) (0.4) 
Postretirement benefits non-service expense  $0.1  $0.1  $—  
Schedule of Assumptions Used
The following assumptions were used to measure the net benefit income/cost within each respective year for the domestic qualified plan 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 - 20194.59%  2.75%  7.80%  
Domestic plan - 20184.02%  2.75%  8.00%  
Domestic plan - 20174.54%  2.75%  8.00%  
Foreign plans - 20190.90% - 2.60%  1.00% - 2.50%  1.00% - 3.80%  
Foreign plans - 20180.70% - 2.40%  1.00% - 2.50%  1.00% - 4.50%  
Foreign plans - 20170.60% - 2.50%  1.00% - 2.50%  1.00% - 5.90%  
The key assumptions used to measure the benefit obligation at each respective year-end were:
Key assumptions:Domestic PlanForeign Plans
201920182017201920182017
Discount rate3.41 %4.59 %4.02 %0.20% - 1.80%  0.90% - 2.60%  0.70% - 2.40%  
Salary growth rate2.75 %2.75 %2.75 %1.00% - 2.50%1.00% - 2.50%1.00% - 2.50%
Reconciliation of Beginning and Ending Balances of Benefit Obligation
   Domestic Foreign
   2019201820192018
Changes in benefit obligation (in millions):      
Benefit obligation - beginning of year  $731.7  $812.3  $52.3  $57.8  
Service cost - benefits earned during the year  8.5  9.8  0.9  0.9  
Interest cost on projected benefit obligation  32.4  31.5  1.2  1.3  
Actuarial (gain) loss  93.1  (41.2) 5.6  (1.7) 
Benefits paid  (60.0) (80.7) (2.0) (1.9) 
Plan amendments  —  —  —  1.1  
Settlements/curtailments  —      —      1.9      (2.4) 
Other - including foreign currency—  —  0.4  (2.8) 
Benefit obligation - end of year  $805.7  $731.7  $60.3  $52.3  
Accumulated benefit obligation - end of year  $801.3  $728.5  $56.3  $53.7  
Changes in benefit obligation (in millions):  20192018
Benefit obligation - beginning of year  $8.7  $9.7  
Interest cost on projected benefit obligation  0.4  0.4  
Actuarial (gain) loss  0.1  (0.1) 
Benefits paid  (1.2) (1.3) 
Other   0.1  —  
Benefit obligation - end of year  $8.1  $8.7  
Reconciliation of the Beginning and Ending Balances of the Fair Value of Plan Assets
   Domestic Foreign
   2019201820192018
Changes in plan assets (in millions):      
Fair value of net plan assets - beginning of year  $780.3  $896.0  $43.4  $46.7  
Actual return on plan assets  113.1  (37.0) 5.4  0.8  
Employer contribution - other benefit plan  2.3  2.0  0.7  2.2  
Foreign currency changes  —  —  0.6  (2.5) 
Benefits paid  (60.0) (80.7) (2.0) (1.9) 
Other —  —  (0.1) (1.9) 
Fair value of net plan assets - end of year  $835.7  $780.3  $48.0  $43.4  
Schedule of Funded Status and Amounts Recognized in Balance Sheet
The following tables sets forth the funded status and amounts recognized in the consolidated balance sheets at year-end 2019 and 2018 for the domestic qualified and nonqualified pension plans and the foreign-based pension plans for benefits provided to certain employees (in millions):
   Domestic Foreign
   2019201820192018
Funded status  $30.0  $48.6  $(12.3) $(8.9) 
       
Amounts recognized in the consolidated balance sheets:      
Prepaid pension asset long-term  $71.8  $88.2  $—  $—  
Accrued pension obligation long-term(33.8) (31.8) (11.7) (8.6) 
Accrued pension obligation short-term  (2.7) (2.6) (0.6) (0.3) 
Other long-term liabilities  (5.3) (5.2) —  —  
Net amount recognized  $30.0  $48.6  $(12.3) $(8.9) 
  
Amounts recognized in accumulated other comprehensive loss:      
Net prior service cost (credit)  $(30.6) $(18.6) $(0.4) $0.8  
Net loss  431.7  417.6  7.8  6.4  
Net amount recognized, before tax effect  $401.1  $399.0  $7.4  $7.2  
The following table sets forth the funded status and amounts recognized in Teledyne’s consolidated balance sheets for the postretirement plans at year-end 2019 and 2018 (in millions):
20192018
Funded status:
Funded status$(8.1) $(8.7) 
Unrecognized net gain(2.2) (2.5) 
Accrued benefit cost$(10.3) $(11.2) 
       
Amounts recognized in the consolidated balance sheets:
Accrued postretirement benefits (long-term)$(7.2) $(7.7) 
Accrued postretirement benefits (short-term)(0.9) (1.0) 
Accumulated other comprehensive income(2.2) (2.5) 
Net amount recognized$(10.3) $(11.2) 
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
Amounts for pension plans with accumulated benefit obligations in excess of fair value of plan assets are as follows (in millions):
20192018
Projected benefit obligation$102.0  $91.9  
Accumulated benefit obligation$98.0  $88.8  
Fair value of plan assets$48.0  $43.4  
Estimated Future Benefit Payments
Estimated future pension plan benefit payments (in millions):   Domestic Foreign
2020  $55.0      $2.5  
2021  55.0      2.1  
2022  56.6      2.1  
2023  55.8      2.4  
2024  55.4      2.5  
2025-2029  271.7      12.6  
Total  $549.5      $24.2  
The measurement date for the Company’s postretirement plans is December 31.
Future postretirement plan benefit payments (in millions):  
2020  $0.9  
2021  0.8  
2022  0.8  
2023  0.7  
2024  0.7  
2025-2029  2.7  
Total  $6.6  
Fair Value of Assets by Fair Value Hierarchy
The following table sets forth the percentage of year-end market value by asset class for the pension plans:
Market value by asset class:  Domestic 
Plan  Assets
% to Total
Foreign
Plan Assets
% to Total
   2019201820192018
Equity instruments  49 %51 %56 %53 %
Fixed income instruments  31  34  25  27  
Alternatives and other  20  15  19  20  
Total  100 %100 %100 %100 %
The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S. and foreign pension plans as of December 29, 2019, by asset category are as follows (in millions):
Asset category:(a)Level 1Level 2Level 3Total
Cash and cash equivalents (b)$—  $65.4  $—  $65.4  
Equity securities52.5  266.7  —  319.2  
U.S. government securities and futures128.3  6.6  —  134.9  
Corporate bonds—  47.4  —  47.4  
Insurance contracts related to foreign plans—  14.0  —  14.0  
Fair value of net plan assets at the end of the year$180.8  $400.1  $—  $580.9  
Investments measured at net asset value:
Alternatives$195.3  
Mutual funds (c)29.7  
Mortgage-backed securities49.2  
High yield bonds28.7  
Fair value of net plan assets at the end of the year$302.9  
a) There were no transfers of plan assets between the three levels of the fair value hierarchy during the year.
b) Reflects cash and cash equivalents held in overnight cash investments.
c) The mutual funds are invested in equity securities.
The fair values of the Company’s net pension assets, by fair value hierarchy, for both the U.S. and foreign pension plans as of December 30, 2018, by asset category are as follows (in millions):
Asset category: (a)Level 1Level 2Level 3Total
Cash and cash equivalents (b)$—  $53.0  $—  $53.0  
Equity securities56.3  233.6  —  289.9  
U.S. government securities and futures99.3  —  —  99.3  
Corporate bonds—  34.3  —  34.3  
Insurance contracts related to foreign plans—  12.0  —  12.0  
Fair value of net plan assets at the end of the year$155.6  $332.9  $—  $488.5  
Investments measured at net asset value:
Alternatives$204.1  
Mutual funds (c)63.0  
Senior secured loans0.2  
Mortgage-backed securities42.8  
High yield bonds25.2  
Fair value of net plan assets at the end of the year$335.3  
(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) 53% of mutual funds invest in fixed income types of securities; 47% invest in equity securities.