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General Dynamics ups 2018 pension contribution by $235 million

A U.S. Navy destroyer in dry dock at a General Dynamics Corp. shipyard

General Dynamics Corp., Falls Church, Va., plans to make an additional $235 million in discretionary pension contributions in 2018, the company disclosed in a 10-Q filing with the Securities and Exchange Commission on Wednesday.

The amount is in addition to the $315 million in required contributions the company disclosed in its 10-K filing in February, giving the company a total of $550 million in contributions this year. The additional contribution is the result of "additional cash resulting from recent tax reform," the filing said.

As of Dec. 31, defined benefit plan assets totaled $10.13 billion and projected benefit obligations totaled $14.21 billion, for a funding ratio of 71.3%, up from 69% the previous year. The company's discount rate as of Dec. 31 was 4.19%, down from 4.46% the previous year. The company does not break down assets between U.S. and non-U.S. plans, but about 90% of the total assets represent the U.S. plans.

The target allocation ranges for the trust as of Dec. 31 were 48% to 68% equities, 20% to 48% fixed income, up to 5% cash, and the rest in other asset classes.