Retirement Benefits

Pension Benefits

The Company's defined benefit pension plan future benefit accrual was discontinued in fiscal 2009. As of the last measurement date of December 31, 2016, the assets, projected benefit obligations, and unfunded pension obligation for the tax-qualified pension plans were approximately $925.1 million, $1,492.1 million, and $548.2 million, respectively.

The Company expects to make cash contributions of approximately $76.0 million to its tax-qualified defined benefit pension plan in fiscal 2017 of which $37.0 million is expected to be recoverable in its U.S. government contracts in fiscal 2017 with the remaining $39.0 million being potentially recoverable in its U.S. government contracts in the future. The Company has funded $18.6 million to its tax-qualified defined benefit pension plan in the first half of fiscal 2017 and in the third and fourth quarters of fiscal 2017 expects to fund $48.6 million and $8.8 million, respectively. The Company generally is able to recover cash contributions related to its tax-qualified defined benefit pension plan as allowable costs on U.S. government contracts, but there can be differences between when the Company contributes cash to its tax-qualified defined benefit pension plan under pension funding rules and recovers the costs under the U.S. government Cost Accounting Standards.

The funded status of the Company's tax-qualified pension plan may be adversely affected by the investment experience of the plan's assets, by any changes in U.S. law and by changes in the statutory interest rates used by tax-qualified pension plans in the U.S. to calculate funding requirements. Accordingly, if the performance of the Company’s plan's assets does not meet assumptions, if there are changes to the Internal Revenue Service regulations or other applicable law or if other actuarial assumptions are modified, future contributions to the underfunded pension plans could be higher than the Company expects.

Medical and Life Insurance Benefits

The Company provides medical and life insurance benefits to certain eligible retired employees, with varied coverage by employee group. Generally, employees hired after January 1, 1997 are not eligible for retiree medical and life insurance benefits. The medical benefit plan provides for cost sharing between the Company and its retirees in the form of retiree contributions, deductibles, and coinsurance. Medical and life insurance benefit obligations are unfunded. Medical and life insurance benefit cash payments for eligible retired employees are recoverable under the Company’s U.S. government contracts.

Components of retirement benefit expense (benefit) are:



	Pension Benefits						Postretirement Medical and Life Insurance Benefits
	Three months ended June 30,
	2017			2016			2017			2016
	(In millions)
Service cost	$	3.8		$	3.4		$	—		$	—
Interest cost on benefit obligation	14.4			16.1			0.3			0.4
Assumed return on plan assets	(16.2		)	(17.6		)	—			—
Amortization of prior service credits	0.1			0.1			—			(0.3		)
Recognized net actuarial losses (gains)	16.9			16.0			(1.0		)	(0.9		)
Retirement benefit expense (benefit)	$	19.0		$	18.0		$	(0.7	)	$	(0.8	)



	Pension Benefits						Postretirement Medical and Life Insurance Benefits
	Six months ended June 30,
	2017			2016			2017			2016
	(In millions)
Service cost	$	7.5		$	6.9		$	—		$	—
Interest cost on benefit obligation	28.8			32.1			0.7			0.9
Assumed return on plan assets	(32.3		)	(35.1		)	—			—
Amortization of prior service credits	0.1			0.1			(0.1		)	(0.6		)
Recognized net actuarial losses (gains)	33.9			31.9			(2.0		)	(1.8		)
Retirement benefit expense (benefit)	$	38.0		$	35.9		$	(1.4	)	$	(1.5	)