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, 1994
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
-----------------------------------------------
(Full Title of Plan)
TELEDYNE, INC.
2049 Century Park East
Los Angeles, California 90067-3101
--------------------------------------------------------------
(Name and Address of Issuer of Securities Held Pursuant to Plan)
Items 1 - 4. Financial Statements
- ----------------------------------
Report of Independent Public Accountants
Financial statements and schedules prepared in accordance with ERISA
financial reporting requirements
SIGNATURES
----------
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: May 5, 1995 By /S/ Douglas J. Grant
--------------------------
Douglas J. Grant
Member, Trust Administrative
Committee
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
----------------------------------------
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, 1994 and
1993, and the related statement of changes in net assets for the year ended
December 31, 1994. 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, 1994 and
1993, and the changes in net assets for the year ended December 31, 1994 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 LLP
February 9, 1995
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
STATEMENTS OF NET ASSETS
------------------------
December 31, 1994 and 1993
--------------------------
(000's Omitted)
1994 1993
-------- --------
Investments in:
Commercial Paper $118,656 $ -
U.S. Government obligations 17,335 218,347
Teledyne, Inc. obligations 12,047 12,423
Corporate obligation 567 606
Investment Income Receivable 1,270 103
Cash and Cash Equivalent Fund 691 1,847
Contributions Due from Participants - 980
Accounts Payable - (1,284)
Accrued Liabilities (58) (36)
-------- --------
Net Assets of the Plan $150,508 $232,986
======== ========
The accompanying notes are an integral part of these statements.
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
For the Year Ended December 31, 1994
------------------------------------
(000's Omitted)
Net Assets of Plan at Beginning of Year $232,986
--------
Net Investment Income:
Interest income 13,646
Expenses (144)
--------
13,502
Decrease in Market Value of Investments (17,982)
Contributions From Participants 6,858
--------
2,378
Distributions to Participants
or Their Beneficiaries (84,856)
--------
Decrease in Net Assets of Plan (82,478)
--------
Net Assets of Plan at End of Year $150,508
========
The accompanying notes are an integral part of this statement.
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
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, Teledyne, Inc.
and corporate obligations are stated at current value, which is based on market
prices. Commercial paper is stated at cost.
Note 2. Description -
The Teledyne Savings and Retirement Supplement Plan ("the Plan") is a
defined contribution plan. Effective October 31, 1994, the Plan no longer
accepts contributions or new enrollments. Additionally, the Teledyne guarantee
of a minimum rate of return to each participant was discontinued as of
December 31, 1994. The Plan was available to employees of eligible Teledyne
subsidiaries (primarily Teledyne Industries, Inc.) and divisions ("companies").
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, 1994 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 $ 819 $ 893
Teledyne, Inc., Subordinated Debentures,
Series C, 10.00 percent, June 1, 2004 11,168 11,020 11,154
------- -------
$11,839 $12,047
======= =======
Interest income on these investments was $1,219,000 in 1994.
Investments in U.S. Government obligations at December 31, 1994 were as
follows (000's omitted):
Principal Amortized Market
Amount Cost Value
--------- --------- -------
U.S. Treasury Securities Coupons
August 15, 1995 $ 4,520 $ 4,401 $ 4,336
November 15, 1995 9,016 8,439 8,486
May 15, 1996 5,000 4,486 4,513
-------- -------- --------
$ 17,326 $ 17,335
======== ========
Investments in corporate obligations at December 31, 1994 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 $ 355 $ 567
Investments in commercial paper at December 31, 1994 were as follows (000's
omitted):
Principal Market
Amount Cost Value
--------- -------- --------
Philip Morris Company, January 18, 1995 $25,000 $ 24,691 $ 24,691
Ford Motor Credit, January 19, 1995 29,832 29,459 29,459
AT&T Corporation, January 20, 1995 40,000 39,493 39,493
Met Life Funding, January 23, 1995 25,347 25,013 25,013
------- -------- --------
$118,656 $118,656
======== ========
Note 4. Decrease in Market Value of Investments -
Decrease in market value of investments for the year ended December 31,
1994 was as follows (000's omitted):
Investment in:
U. S. Government obligations $(17,546)
Teledyne, Inc. obligations (388)
Corporate obligation (48)
--------
Decrease in market value $(17,982)
========
Note 5. Distributions -
At December 31, 1994 and 1993 distributions payable to withdrawing
participants were $50,401,000 and $3,917,000, 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. On December 20, 1994, the Plan sponsor amended 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.
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.
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
December 31, 1994
-----------------
(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 $ 819 $ 893
*Teledyne, Inc., Subordinated Debentures,
Series C, 10.00 percent, June 1, 2004 11,168 11,020 11,154
U.S. Treasury Securities Coupons
August 15, 1995 4,520 4,401 4,336
November 15, 1995 9,016 8,439 8,486
May 15, 1996 5,000 4,486 4,513
Navistar International Transportation
Corporation, Sinking Fund Debentures, 600 355 567
9.00 percent, June 15, 2004
Short-term commercial paper
Philip Morris Co., January 18, 1995 25,000 24,691 24,691
Ford Motor Credit, January 19, 1995 29,832 29,459 29,459
AT&T Corporation, January 20, 1995 40,000 39,493 39,493
Met Life Funding, January 23, 1995 25,347 25,013 25,013
*Party-in-interest
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
----------------------------------------------------------
December 31, 1994
-----------------
(000's omitted)
Issue, Investment Description Costs of Proceeds of
Rate of Interest, Maturity Date Acquisitions Dispositions
- ------------------------------- ------------ ------------
U.S. Treasury Securities
coupons, November 15, 1996
Acquired and sold during
the year $13,958 $13,870
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
For the Year Ended December 31, 1994
------------------------------------
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 1994 was $108,439,000 and
$109,595,000 was withdrawn. There was no gain or loss recorded in connection
with investments in this fund.
Transactions occurring during 1994, 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 (a) (Loss)
- --------------------------- -------- --------- ------- -------- ------
AT&T Corporation commercial
paper, January 20, 1995
Acquired During the Year 1 $40,000 $ - $39,493 $ -
Ford Motor Credit Company
commercial paper,
January 19, 1995
Acquired during the year 1 29,832 - 29,459 -
Philip Morris Company
commercial paper
January 18, 1995
Acquired during the year 1 25,000 - 24,691 -
Met Life Funding commercial
paper, January 23, 1995
Acquired during the year 1 25,347 - 25,013 -
TELEDYNE SAVINGS AND RETIREMENT SUPPLEMENT PLAN
-----------------------------------------------
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
----------------------------------------------
For the Year Ended December 31, 1994
------------------------------------
Number
of Trans- Principal Selling Gain
Description actions Amount Price Cost (a) (Loss)
- ------------------------ --------- --------- ------- -------- ------
U.S. Treasury Securities
coupons, August 15, 1997
Sold during the year 1 15,000 12,267 12,586 (319)
U.S. Treasury Securities
coupons, August 15, 1998
Sold during the year 2 38,500 29,160 30,367 (1,207)
U.S. Treasury Securities
coupons, November 15, 1998
Sold during the year 1 35,070 25,988 27,189 (1,201)
U.S. Treasury Securities
coupons, August 15, 1999
Sold during the year 1 20,000 14,008 14,831 (823)
U.S. Treasury Securities
coupons, November 15, 2000
Sold during the year 1 30,000 18,973 20,456 (1,483)
No material expense was incurred by the Plan in connection with any of the
transactions presented above.
(a) Market value of plan assets at the beginning of the year or date of purchase
during the year.
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
-----------------------------------------
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 LLP
Los Angeles, California
February 9, 1995
