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Retirement Benefits
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Retirement Benefits Retirement Benefits
a.  Plan Descriptions
Pension Benefits
The Company's defined benefit pension plan future benefit accrual was discontinued in 2009. As of December 31, 2021, the assets, projected benefit obligations, and unfunded pension obligation were $1,005.0 million, $1,279.3 million, and $274.3 million, respectively.
The American Rescue Plan Act of 2021 ("ARPA") that was signed into law on March 11, 2021, provided funding relief to sponsors of defined benefit pension plans. In line with provisions of ARPA, the Company expects to make cash contributions of approximately $15 million to its tax-qualified defined benefit pension plan in 2022. The Company is generally able to recover contributions related to its tax-qualified defined benefit pension plan as allowable costs on its U.S. government contracts, but there are differences between when the Company contributes to its tax-qualified defined benefit pension plan under pension funding rules and when it is recoverable under Cost Accounting Standards ("CAS"). The Company estimates the CAS recoverable amounts related to the Company's retirement benefits plans to be approximately $38 million in 2022. During 2021, the Company made cash contributions of $17.3 million and used $20.0 million of prepayment credits to fund its tax-qualified defined benefit pension plan.
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 plan's assets does not meet assumptions, if there are changes to income tax 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 from the Company’s U.S. government contracts.
Defined Contribution 401(k) Benefits
The Company sponsors a defined contribution 401(k) plan and participation in the plan is available to all employees. The Company makes matching contributions in cash equal to 100% of the first 3% of the participants’ compensation contributed and 50% of the next 3% of the compensation contributed. The cost of the 401(k) plan was $22.8 million, $21.8 million, and $21.4 million in 2021, 2020, and 2019, respectively.
b.  Plan Results
The following table summarizes the balance sheet impact of the Company’s pension benefits and medical and life insurance benefits. Pension benefits include the consolidated tax-qualified plan and the unfunded non-qualified plan for benefits provided to employees beyond those provided by the Company’s tax-qualified plan. Assets, benefit obligations, and the funded status of the plans were determined at December 31, 2021 and 2020.
 Pension Benefits Medical and
Life Insurance
Benefits
 As of December 31,
 2021202020212020
 (In millions)
Change in fair value of assets:    
Fair value - beginning of year$957.0 $932.5 $— $— 
Gain on assets135.7 117.1 — — 
Employer contributions 18.8 15.6 2.4 2.8 
Benefits paid (1)(106.5)(108.2)(2.4)(2.8)
Fair value - end of year$1,005.0 $957.0 $— $— 
Change in benefit obligation:    
Benefit obligation - beginning of year$1,381.5 $1,349.8 $25.0 $25.9 
Interest cost33.5 42.5 0.5 0.8 
Actuarial (gains) losses(29.2)97.4 (3.5)1.1 
Benefits paid(106.5)(108.2)(2.4)(2.8)
Benefit obligation and accumulated benefit obligation - end of year$1,279.3 $1,381.5 $19.6 $25.0 
Funded status of the plans$(274.3)$(424.5)$(19.6)$(25.0)
Amounts recognized in the consolidated balance sheets:    
Postretirement medical and life insurance benefits, current$— $— $(2.7)$(3.5)
Postretirement medical and life insurance benefits, noncurrent— — (16.9)(21.5)
Pension liability, non-qualified current (component of other current liabilities)(1.4)(1.3)— — 
Pension liability, non-qualified (component of other noncurrent liabilities)(17.0)(18.0)— — 
Pension benefits, noncurrent (255.9)(405.2)— — 
Net liability recognized in the consolidated balance sheets$(274.3)$(424.5)$(19.6)$(25.0)
______
(1)Benefits paid for medical and life insurance benefits are net of the Medicare Part D Subsidy of less than $0.1 million, and $0.1 million received in 2021 and 2020, respectively.
The pension benefits obligation actuarial gains of $29.2 million in 2021 were primarily the result of an increase in the discount rate used to determine the obligation. The discount rate was 2.90% as of December 31, 2021, compared with 2.52% as of December 31, 2020. The pension obligation actuarial losses of $97.4 million in 2020 were primarily the result of a decrease in the discount rate used to determine the obligation due to lower market interest rates. The discount rate was 2.52% as of December 31, 2020, compared with 3.28% as of December 31, 2019.
The following table presents the components of retirement benefits expense (income): 
 Pension BenefitsMedical and
Life Insurance Benefits 
 Year Ended December 31, Year Ended December 31,
 202120202019202120202019
 (In millions)
Interest cost on benefit obligation$33.5 $42.5 $52.7 $0.5 $0.8 $1.2 
Assumed return on assets(61.4)(60.5)(64.8)— — — 
Amortization of prior service costs (credits)0.1 0.1 0.1 — — (0.2)
Amortization of net losses (gains)63.9 57.4 40.9 (2.7)(3.7)(3.8)
$36.1 $39.5 $28.9 $(2.2)$(2.9)$(2.8)
The following table presents the actual return and rate of return on assets:
 Year Ended December 31,
 202120202019
 (In millions, except rate of return)
Actual gain on assets$135.7 $117.1 $144.8 
Actual rate of return on assets15.0 %15.6 %18.0 %
Market conditions and interest rates significantly affect assets and liabilities of the pension plans. Pension accounting permits market gains and losses to be deferred and recognized over a period of years. This "smoothing" results in the creation of other accumulated income or loss which will be amortized to pension costs in future years. The accounting method the Company utilizes recognizes one-fifth of the unamortized gains and losses in the market-related value of pension assets and all other gains and losses including changes in the discount rate used to calculate the benefit obligation each year. Investment gains or losses for this purpose are the difference between the expected return and the actual return on the market-related value of assets which smoothes asset values over three years. Although the smoothing period mitigates some volatility in the calculation of annual retirement benefits expense, future expenses are impacted by changes in the market value of assets and changes in interest rates.
c.  Plan Assumptions
The following table presents the assumptions, calculated based on a weighted-average, to determine the benefit obligations:
 
Pension
Benefits
Medical and
Life Insurance Benefits
As of December 31,As of December 31,
 
2021
2020
2021
2020
Discount rate2.90 %2.52 %2.77 %2.28 %
Discount rate (non-qualified plan)2.89 %2.51 %**
Ultimate healthcare trend rate**4.50 %4.50 %
Initial healthcare trend rate (pre 65/post 65)**6.25 %6.50 %
Year ultimate rate attained (pre 65/post 65)**20292028
______
*    Not applicable
The following table presents the assumptions, calculated based on a weighted-average, to determine the retirement benefits expense (income):
 Pension BenefitsMedical and
Life Insurance Benefits 
Year Ended December 31,Year Ended December 31,
 202120202019202120202019
Discount rate2.52 %3.28 %4.27 %2.28 %3.19 %4.09 %
Discount rate (non-qualified plan)2.51 %3.30 %4.27 %***
Expected long-term rate of return on assets7.00 %7.00 %7.00 %***
Ultimate healthcare trend rate***4.50 %4.50 %4.50 %
Initial healthcare trend rate (pre 65/post 65)***6.50 %5.50 %6.00 %
Year ultimate rate attained (pre 65/post 65)***202820222022
______
*    Not applicable
Certain actuarial assumptions, such as assumed discount rate, long-term rate of return, and assumed healthcare cost trend rates can have a significant effect on amounts reported for periodic cost of pension benefits and medical and life insurance benefits, as well as respective benefit obligation amounts. The assumed discount rate represents the market rate available for investments in high-quality fixed income instruments with maturities matched to the expected benefit payments for pension and medical and life insurance benefit plans.
The expected long-term rate of return on assets represents the rate of earnings expected in the funds invested, and funds to be invested, to provide for anticipated benefit payments to plan participants. The Company evaluated historical investment performance, current and expected asset allocation, and, with input from the Company’s external advisors, developed best estimates of future investment performance. Based on this analysis, the Company assumed a long-term expected rate of return of 7.0% in 2021.
The Company reviews external data and its own historical trends for healthcare costs to determine the healthcare cost trend rates for the medical benefit plans. For 2021 medical benefit obligations, the Company assumed a 6.25% annual rate of increase for pre and post 65 participants in the per capita cost of covered healthcare claims with the rate decreasing over seven years until reaching 4.5%.
d.  Plan Assets and Investment Policy
The Company’s investment policy is to maximize the total rate of return within a prudent risk framework, while maintaining adequate liquidity throughout volatile market cycles to meet benefit obligations when due. The Company's strategies employ active management and are generally focused on minimizing the permanent loss of capital. The Company's asset diversification objectives target a diversified portfolio that invests across the capital structure via strategies with complimentary risk and return profiles. Diversification is achieved by investing in various asset types, which may include cash, fixed income, equities, private assets, credit holdings, and future contracts. Further, the Company's strategy allows for diversification as to the types of investment vehicle structures, investment and redemption periods, and the number of investment managers used to carry out its strategy. Allocations between asset types, structures and managers may change as a result of changing market conditions, tactical investment opportunities, planned Company contributions, and cash obligations of the plan.
The following table presents the asset allocations by asset category:
As of December 31,
20212020
Cash and cash equivalents5 %2 %
Equity securities47 46 
Fixed income12 15 
Registered investment companies1 2 
Private assets10 11 
Hedge funds25 24 
Total100 %100 %
The following tables present the fair value by asset category and by level:
 TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Other Observable Inputs (Level 2)Unobservable Inputs (Level 3)
(In millions)
December 31, 2021
Cash and cash equivalents$0.1 $0.1 $— $— 
Equity securities:    
  Domestic equity securities428.5 428.5 — — 
  International equity securities44.2 44.2 — — 
Fixed income:    
  Corporate debt securities57.5 — 39.9 17.6 
  Asset-backed securities29.3 — 29.3 — 
  U.S. government securities28.8 — 28.8 — 
  Foreign bonds0.9 — 0.9 — 
  Derivatives0.1 — 0.1 — 
Registered investment companies13.9 13.9 — — 
Private assets1.2 — — 1.2 
Total 604.5 $486.7 $99.0 $18.8 
Investment measured at Net Asset Value ("NAV")
  Private assets97.8 
  Hedge funds254.5 
Common/collective trusts ("CCTs")56.4 
Total investments measured at NAV408.7 
Receivables9.5 
Payables(17.7)
Total assets$1,005.0 
 TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Other Observable Inputs (Level 2)Unobservable Inputs (Level 3)
(In millions)
December 31, 2020
Cash and cash equivalents$0.4 $0.4 $— $— 
Equity securities:  
  Domestic equity securities406.3 400.2 — 6.1 
  International equity securities37.0 37.0 — — 
Fixed income:  
  Corporate debt securities71.5 — 39.6 31.9 
  Asset-backed securities28.7 — 28.7 — 
  U.S. government securities41.4 — 41.4 — 
  Municipal bonds0.6 — 0.6 — 
  Foreign bonds0.5 — 0.5 — 
Registered investment companies16.4 16.4 — — 
Private assets3.1 — — 3.1 
Total 605.9 $454.0 $110.8 $41.1 
Investment measured at NAV
  Private assets100.8 
  Hedge funds232.3 
CCTs 36.2 
Total investments measured at NAV369.3 
Receivables0.9 
Payables(19.1)
Total assets$957.0 
Below is a description of the significant investment strategies and valuation methodologies used for the investments measured at fair value, including the general classification of such investments pursuant to the valuation hierarchy. There have been no changes in the methodologies used at December 31, 2021 and 2020.
Cash and cash equivalents
Cash and cash equivalents are invested in money market funds or Short-Term Investment Funds ("STIFs"). Cash and cash equivalents invested in money market funds are classified as Level 1 investments. STIFs are measured at NAV and included in CCTs as a reconciling item to the fair value tables above.
Equity securities
Equity securities are invested broadly in U.S. and non-U.S. companies in a variety of sectors and market capitalizations. These investments are comprised of common stocks, CCTs, and other investment vehicles. Common stocks are stated at fair value as quoted on a recognized securities exchange and are valued at the last reported sales price on the last business day of the year and are classified as Level 1 investments. Equity securities that are invested in common stock of private companies and priced using unobservable inputs are classified as Level 3 investments. CCTs invested in equity securities are measured at NAV and included as a reconciling item to the fair value tables above.
Fixed income securities
Fixed income securities are invested in a variety of instruments, including, but not limited to, corporate debt securities, U.S. government securities, CCTs, asset-backed securities, municipal bonds, foreign bonds, and other investment vehicles. Corporate debt securities are invested in corporate bonds and term loans. Corporate bonds are valued at bid evaluations using observable and market-based inputs and are classified as Level 2 investments. Term loans are priced using unobservable inputs and are classified as Level 3 investments. Asset-backed securities, including government-backed mortgage securities, commercial mortgage-backed securities, auto receivable backed securities, and other asset-backed securities, are valued at bid evaluations and are classified as Level 2 investments. Municipal bonds are valued using pricing models maximizing the use of observable inputs for similar securities and are classified as Level 2 investments. Foreign bonds that are valued using pricing models maximizing the use of observable inputs for similar securities are classified as Level 2 investments. Foreign bonds that are priced using unobservable inputs are classified as Level 3 investments. The foreign bond classified as Level 3 investment had no value at both December 31, 2021 and 2020. CCTs invested in fixed income securities are measured at NAV and included as a reconciling item to the fair value tables above.
Registered investment companies
Registered investment companies are invested in corporate bonds, senior secured loans, and other fixed income. Registered investment companies are transacted at NAV published daily and are classified as Level 1 investments.
Private assets
Private assets are primarily limited partnerships that mainly invest in U.S. and non-U.S. leveraged buyout, venture capital and special situation strategies. Generally, the individual investments within the partnerships or funds are valued at public market, private market, or appraised value. Private assets are valued by investment managers using unobservable inputs such as extrapolated data, proprietary data, or indicative quotes. The majority of the private assets are valued at NAV and included as a reconciling item to the fair value tables above. Private assets for which there is no NAV are classified as Level 3 investments. Valuations of certain assets were based on the NAV or market value three months prior to the year-end. The Company made adjustments amounting to an increase of $1.1 million for 2021 and a decrease of $6.2 million for 2020 to account for changes since the valuation date.
Hedge funds
Hedge funds primarily consist of multi-strategy hedge funds that invest across a range of equity and debt securities in a variety of industry sectors. Hedge funds are valued at NAV calculated by investment managers using unobservable inputs such as extrapolated data, proprietary data, or indicative quotes and are included as a reconciling item to the fair value tables above.
The following tables present the changes in the fair value of the Level 3 investments:
 December 31, 2020Unrealized
Gains (Losses)		Realized
Gains		Purchases, Sales, and
Settlements, net 		December 31,
2021
 (In millions)
Equity securities$6.1 $10.1 $1.1 $(17.3)$— 
Corporate debt securities31.9 0.1 — (14.4)17.6 
Private assets3.1 — — (1.9)1.2 
Total$41.1 $10.2 $1.1 $(33.6)$18.8 
 December 31, 2019Unrealized
Gains		Realized
Gains		Purchases, Sales, and
Settlements, net 		December 31,
2020
 (In millions)
Equity securities$4.2 $1.9 $— $— $6.1 
Corporate debt securities27.6 5.4 — (1.1)31.9 
Private assets5.4 1.7 1.3 (5.3)3.1 
Total$37.2 $9.0 $1.3 $(6.4)$41.1 
e.  Benefit Payments
The following table presents estimated future benefit payments:  
 
Pension
Benefit
Payments
Medical and Life Insurance Benefits
Year Ending December 31,
Gross Benefit Payments
Medicare D
Subsidy 
Net Benefit
Payments 
 (In millions)
2022$104.7 $2.8 $0.1 $2.7 
2023101.5 2.5 0.1 2.4 
202498.1 2.2 0.1 2.1 
202594.5 2.0 0.1 1.9 
202690.7 1.7 — 1.7 
Years 2027 - 2031395.1 6.1 0.1 6.0