SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1993
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from______________to___________________
Commission file number 1-5212
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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(Full Title of Plan)
TELEDYNE, INC.
1901 Avenue of the Stars
Los Angeles, California 90067-6046
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(Name and Address of Issuer of Securities Held Pursuant to Plan)
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Items 1 - 4. Financial Statements
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Report of Independent Public Accountants
Financial statements and schedules prepared in accordance with ERISA
financial reporting requirements
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trust Administrative Committee has duly caused this annual report to be signed
on its behalf by the undersigned thereunto duly authorized.
TELEDYNE SAVINGS AND RETIREMENT
SUPPLEMENT PLAN
Date: February 23, 1994 By /S/ Douglas J. Grant
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Douglas J. Grant
Member, Trust Administrative
Committee
1
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
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To the Trust Administrative Committee of the Teledyne Savings and Retirement
Supplement Plan:
We have audited the accompanying statements of net assets of the Teledyne
Savings and Retirement Supplement Plan ("the Plan") as of December 31, 1993 and
1992, and the related statement of changes in net assets for the year ended
December 31, 1993. These financial statements and the data set forth in the
schedules of assets held for investment purposes and reportable transactions
referred to below are the responsibility of the Trust Administrative Committee.
Our responsibility is to express an opinion on these financial statements and
the data set forth in the schedules of assets held for investment purposes and
reportable transactions based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the net assets of the Plan as of December 31, 1993 and
1992, and the changes in net assets for the year ended December 31, 1993 in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The data set forth in the schedules of
assets held for investment purposes and reportable transactions is presented for
the purpose of additional analysis and is not a required part of the basic
financial statements but is supplementary information required by the Department
of Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974. Such data has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
Los Angeles, California ARTHUR ANDERSEN & CO.
February 23, 1994
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TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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STATEMENTS OF NET ASSETS
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December 31, 1993 and 1992
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(000's Omitted)
1993 1992
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Investments in:
U.S. Government obligations $ 218,347 $ 205,429
Teledyne, Inc. obligations 12,423 15,621
Corporate obligations 606 483
Cash and Cash Equivalent Fund 1,847 968
Contributions Due from Participants 980 1,194
Investment Income Receivable 103 133
Accounts Payable (1,284) -
Accrued Liabilities (36) (35)
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Net Assets of the Plan $ 232,986 $ 223,793
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The accompanying notes are an integral part of these statements.
3
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TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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STATEMENT OF CHANGES IN NET ASSETS
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For the Year Ended December 31, 1993
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(000's Omitted)
Net Assets of Plan at Beginning of Year $ 223,793
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Net Investment Income:
Interest income 14,618
Expenses (136)
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14,482
Increase in Market Value of Investments 5,702
Contributions From Participants 12,015
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32,199
Distributions to Participants
or Their Beneficiaries (23,006)
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Increase in Net Assets of Plan 9,193
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Net Assets of Plan at End of Year $ 232,986
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The accompanying notes are an integral part of these statements.
4
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TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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NOTES TO FINANCIAL STATEMENTS
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Note 1. Accounting Policies -
Basis of Presentation - The accompanying financial statements have been
prepared on the accrual basis.
Valuation of Investments - Investments in U.S. Government obligations and
corporate obligations are stated at current value, which is based on market
prices.
Note 2. Description -
The Teledyne Savings and Retirement Supplement Plan ("the Plan") is a
defined contribution plan, in which Teledyne guarantees each participant a
minimum rate of return on their contributions. The Plan is available to
employees of eligible Teledyne subsidiaries (primarily Teledyne Industries,
Inc.) and divisions ("companies"). Employees of an eligible company can
participate in the Plan if they have completed one year of service. Investments
of the Plan are made by the Trustee, Bank of America NT & SA, under the
direction of the Trust Administrative Committee appointed by the Executive
Committee of Teledyne, Inc.'s Board of Directors. A more detailed description
of Plan provisions is found in the formal Plan documents and in summary
materials distributed to participants.
Note 3. Investments -
Investments in securities of Teledyne, Inc. at December 31, 1993 were as
follows (000's omitted):
Principal Amortized Market
Amount Cost Value
--------- --------- -------
Teledyne, Inc., Subordinated Debentures,
Series A, 10.00 percent, June 1, 2004 $ 894 $ 815 $ 920
Teledyne, Inc., Subordinated Debentures,
Series C, 10.00 percent, June 1, 2004 11,168 11,011 11,503
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$11,826 $12,423
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Interest income on these investments was $1,187,000 in 1993.
5
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Note 3. Investments (Continued) -
Investments in U.S. Government obligations at December 31, 1993 were as
follows (000's omitted):
Principal Amortized Market
Amount Cost Value
--------- --------- --------
U.S. Treasury Securities Coupons
May 15, 1994 $24,996 $24,445 $24,686
August 15, 1994 25,000 24,349 24,477
November 15, 1994 4,000 3,756 3,876
August 15, 1995 10,520 9,838 9,849
November 15, 1995 9,016 7,824 8,334
May 15, 1996 5,000 4,146 4,495
August 15, 1997 15,000 11,378 12,586
November 15, 1997 5,032 3,765 4,142
August 15, 1998 38,500 27,000 30,367
November 15, 1998 35,070 24,782 27,188
May 15, 1999 3,694 2,672 2,766
August 15, 1999 20,000 14,252 14,831
November 15, 1999 5,236 3,435 3,803
August 15, 2000 8,000 5,423 5,548
November 15, 2000 30,000 19,439 20,456
May 15, 2001 5,000 3,141 3,275
August 15, 2001 12,500 7,871 8,105
November 15, 2001 15,000 9,276 9,563
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$ 206,792 $ 218,347
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6
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Note 3. Investments (Continued) -
Investments in corporate obligations at December 31, 1993 were as follows
(000's omitted):
Principal Amortized Market
Amount Cost Value
--------- --------- ---------
Navistar International Transportation
Corporation, Sinking Fund Debentures,
9.00 percent, June 15, 2004 $ 600 $ 346 $ 606
Note 4. Increase in Market Value of Investments -
Increase in market value of investments for the year ended December 31, 1993
was as follows (000's omitted):
Investment in:
U. S. Government obligations $5,165
Teledyne, Inc. obligations 422
Corporate obligations 115
------
Increase in market value $5,702
======
Note 5. Distributions -
At December 31, 1993 and 1992 distributions payable to withdrawing
participants were $3,917,000 and $2,007,000, respectively.
Note 6. Federal Income Tax Status -
The Plan is qualified for favorable tax treatment under Section 401(a) of
the Internal Revenue Code. The Plan has received a favorable determination
letter from the IRS. In 1994, the Plan sponsor intends to amend the Plan to
meet the requirements of the Tax Reform Act of 1986. The trust fund, which
holds the investments of the Plan, is a tax-exempt trust under Section 501.
Under present Federal income tax statutes, regulations and interpretations,
participants pay no income taxes on amounts accumulated in the Plan until those
amounts are actually received. Basic and Regular Voluntary Contributions are
not subject to income tax when distributed to the participant since they have
already been taxed. A participant's account balance (except for Basic and
Regular Voluntary Contributions) is taxable income, generally taxed at ordinary
income tax rates; however, favorable tax treatment may apply. A 10 percent
Federal income tax penalty is imposed on all taxable income distributed to a
participant before the age of 59 1/2, except in cases of termination of
employment when the distribution is rolled over, a payment under a qualified
domestic relations order, disability or death.
7
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Note 7. Potential Refund of Contributions from Plan Participants -
For certain prior years, the Plan may be required by the IRS to refund to
participants designated by the Internal Revenue Code as "Highly Compensated
Employees" ("HCE's") a portion of their contributions and related interest.
These refunds may occur because the Plan may not have met certain
nondiscrimination tests defined in the Internal Revenue Code that limit the
percentage of total contributions made by HCE's.
8
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TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
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DECEMBER 31, 1993
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(000's omitted)
Issue, Investment Description Principal Amortized Market
Rate of Interest, Maturity Date Amount Cost Value
- ----------------------------------------- --------- --------- -------
*Teledyne, Inc., Subordinated Debentures,
Series A, 10.00 percent, June 1, 2004 $ 894 $ 815 $ 920
*Teledyne, Inc., Subordinated Debentures,
Series C, 10.00 percent, June 1, 2004 11,168 11,011 11,503
U.S. Treasury Securities Coupons
May 15, 1994 24,996 24,445 24,686
August 15, 1994 25,000 24,349 24,477
November 15, 1994 4,000 3,756 3,876
August 15, 1995 10,520 9,838 9,849
November 15, 1995 9,016 7,824 8,334
May 15, 1996 5,000 4,146 4,495
August 15, 1997 15,000 11,378 12,586
November 15, 1997 5,032 3,765 4,142
August 15, 1998 38,500 27,000 30,367
November 15, 1998 35,070 24,782 27,188
May 15, 1999 3,694 2,672 2,766
August 15, 1999 20,000 14,252 14,831
November 15, 1999 5,236 3,435 3,803
August 15, 2000 8,000 5,423 5,548
November 15, 2000 30,000 19,439 20,456
May 15, 2001 5,000 3,141 3,275
August 15, 2001 12,500 7,871 8,105
November 15, 2001 15,000 9,276 9,563
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TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (CONTINUED)
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DECEMBER 31, 1993
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(000's omitted)
Issue, Investment Description Principal Amortized Market
Rate of Interest, Maturity Date Amount Cost Value
- ---------------------------------------- --------- --------- -------
Navistar International Transportation
Corporation, Sinking Fund Debentures,
9.00 percent, June 15, 2004 $600 $346 $606
*Party-in-interest
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TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
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ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
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For the Year Ended December 31, 1993
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The Plan, from time to time, invested funds in a cash equivalent fund
sponsored by the Trustee, Bank of America National Trust and Savings
Association. The total amount invested during 1993 was $48,497,000 and
$47,618,000 was withdrawn. There was no gain or loss recorded in connection
with investments in this fund.
Transactions occurring during 1993, of amounts in excess of 5 percent of
the market value of the Plan assets at the beginning of the year are as follows
(000's omitted):
Number
of Trans- Principal Selling Gain
Description actions Amount Price Cost (Loss)
- -------------------------- --------- --------- ------- ------- -------
U. S. Treasury Securities
coupons, August 15, 1999
Acquired During the Year 1 $20,000 $ - $13,525 $ -
U. S. Treasury Securities
coupons, November 15, 2000
Acquired During the Year 2 $30,000 $ - $18,401 $ -
No material expense was incurred by the Plan in connection with any of the
transactions presented above.
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CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
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As independent public accountants, we hereby consent to the incorporation of our
report included in this Form 11-K, into the Company's previously filed
Registration Statement File No. 2-52617.
ARTHUR ANDERSEN & CO.
Los Angeles, California
February 23, 1994
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