result of lower volumes on USS Gerald R.  Ford (CVN 78) and the execution contract for the RCOH of USS Abraham Lincoln (CVN 72), partially offset by higher volumes on John F.  Kennedy (CVN 79) and the advance planning contract for the RCOH of USS George Washington (CVN 73).
Submarines revenues related to the Virginia class (SSN 774) submarine program were relatively constant in 2016 compared to 2015 due to higher volumes on Block IV boats and USS John Warner (SSN 785) post-shakedown availability services, offset by lower volumes on Block III boats.
Segment Operating Income 2017 - Newport News operating income in 2017 was $354 million, compared to income of $386 million in 2016.
The decrease was primarily due to lower volume and risk retirement in the Virginia class (SSN 774) submarine program, favorable changes in overhead costs in 2016, and the receipt in 2016 of a local government incentive grant, partially offset by the resolution of outstanding contract changes on the inactivation of the decommissioned Enterprise (CVN 65) and the RCOH of the redelivered USS Abraham Lincoln (CVN 72).2016 - Newport News operating income in 2016 was $386 million, compared to income of $401 million in 2015.
The decrease was primarily due to lower risk retirement in the Virginia class (SSN 774) submarine program, lower volume and lower risk retirement on the execution contract for the RCOH of USS Abraham Lincoln (CVN 72) and lower volume on USS Gerald R.  Ford (CVN 78), partially offset by favorable changes in overhead cost, and higher volumes on John F.  Kennedy (CVN 79) and the RCOH of USS George Washington (CVN 73), as well as the receipt of a local government incentive grant.
Technical Solutions
## Table 0 ##
Sales and Service Revenues 2017 - Technical Solutions revenues, including intersegment sales, for the year ended December 31, 2017, increased $261 million, or 38%, compared to 2016, primarily due to higher volume in integrated missions solutions services following the December 2016 acquisition of Camber and higher volumes in fleet support and oil and gas services, partially offset by lower nuclear and environmental volumes due to the resolution in 2016 of outstanding contract changes on a nuclear and environmental commercial contract.2016 - Technical Solutions revenues, including intersegment sales, for the year ended December 31, 2016, increased $75 million, or 12%, compared to 2015, primarily due to higher nuclear and environmental and fleet support revenues, as well as the acquisition of Camber, partially offset by lower revenues in oil and gas services.
Nuclear and environmental revenues increased due to higher volumes and the resolution of outstanding contract changes on a commercial contract, partially offset by lower volumes associated with environmental remediation programs.
Segment Operating Income 2017 - Operating income in the Technical Solutions segment for the year ended December 31, 2017, was $21 million, compared to operating income of $8 million in 2016.
The increase was primarily due to improved performance in oil and gas services and higher volume in integrated missions solutions services following the December 2016 acquisition of Camber, partially offset by the establishment of an allowance for accounts receivable on a nuclear and environmental commercial contract in 2017 and the resolution in 2016 of outstanding contract changes on a nuclear and environmental commercial contract.2016 - Operating income in the Technical Solutions segment for the year ended December 31, 2016, was $8 million, compared to an operating loss of $113 million in 2015.
The increase was primarily due to goodwill and
NOTE 15 FINANCIAL DERIVATIVES We use derivative financial instruments (derivatives) primarily to help manage exposure to interest rate, market and credit risk and reduce the effects that changes in interest rates may have on net income, the fair value of assets and liabilities, and cash flows.
We also enter into derivatives with customers to facilitate their risk management activities.
Derivatives represent contracts between parties that usually require little or no initial net investment and result in one party delivering cash or another type of asset to the other party based on a notional amount and an underlying as specified in the contract.
Derivative transactions are often measured in terms of notional amount, but this amount is generally not exchanged and it is not recorded on the balance sheet.
The notional amount is the basis to which the underlying is applied to determine required payments under the derivative contract.
The underlying is a referenced interest rate (commonly LIBOR), security price, credit spread or other index.
Residential and commercial real estate loan commitments associated with loans to be sold also qualify as derivative instruments.
The following table presents the notional amounts and gross fair values of all derivative assets and liabilities held by PNC: Table 124: Total Gross Derivatives
## Table 1 ##
(a) Included in Other assets on our Consolidated Balance Sheet.
(b) Included in Other liabilities on our Consolidated Balance Sheet.
All derivatives are carried on our Consolidated Balance Sheet at fair value.
Derivative balances are presented on the Consolidated Balance Sheet on a net basis taking into consideration the effects of legally enforceable master netting agreements and any related cash collateral exchanged with counterparties.
Further discussion regarding the rights of setoff associated with these legally enforceable master netting agreements is included in the Offsetting, Counterparty Credit Risk, and Contingent Features section below.
Our exposure related to risk participations where we sold protection is discussed in the Credit Derivatives section below.
Any nonperformance risk, including credit risk, is included in the determination of the estimated net fair value of the derivatives.
Further discussion on how derivatives are accounted for is included in Note 1 Accounting Policies.
Derivatives Designated As Hedging Instruments under GAAP Certain derivatives used to manage interest rate and foreign exchange risk as part of our asset and liability risk management activities are designated as accounting hedges under GAAP.
Derivatives hedging the risks associated with changes in the fair value of assets or liabilities are considered fair value hedges, derivatives hedging the variability of expected future cash flows are considered cash flow hedges, and derivatives hedging a net investment in a foreign subsidiary are considered net investment hedges.
Designating derivatives as accounting hedges allows for gains and losses on those derivatives, to the extent effective, to be recognized in the income statement in the same period the hedged items affect earnings.
Table 68: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets
## Table 2 ##
PNC Pension Plan Assets The long-term investment strategy for pension plan assets in our qualified pension plan (the Plan) is to: ?
Meet present and future benefit obligations to all participants and beneficiaries; ?
Cover reasonable expenses incurred to provide such benefits, including expenses incurred in the administration of the Trust and the Plan; ?
Provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis; and ?
Provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk.
The Plan’s named investment fiduciary has the ability to make short to intermediate term asset allocation shifts under the dynamic asset allocation strategy based on factors such as the Plan’s funded status, the named investment fiduciary’s view of return on equities relative to long term expectations, the named investment fiduciary’s view on the direction of interest rates and credit spreads, and other relevant financial or economic factors which would be expected to impact the ability of the Trust to meet its obligation to participants and beneficiaries.
Accordingly, the allowable asset allocation ranges have been updated to incorporate the flexibility required by the dynamic allocation policy

<table><tr><td></td><td colspan="3">Year Ended December 31</td><td colspan="2">2017 over 2016</td><td colspan="2">2016 over 2015</td></tr><tr><td>($ in millions)</td><td>2017</td><td>2016</td><td>2015</td><td>Dollars</td><td>Percent</td><td>Dollars</td><td>Percent</td></tr><tr><td>Sales and service revenues</td><td>$952</td><td>$691</td><td>$616</td><td>$261</td><td>38%</td><td>$75</td><td>12%</td></tr><tr><td>Segment operating income (loss)</td><td>21</td><td>8</td><td>-113</td><td>13</td><td>163%</td><td>121</td><td>107%</td></tr><tr><td>As a percentage of segment sales</td><td>2.2%</td><td>1.2%</td><td>-18.3%</td><td></td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td>December 31, 2014</td><td>December 31, 2013</td></tr><tr><td>In millions</td><td>Notional/ContractAmount</td><td>AssetFairValue (a)</td><td>LiabilityFairValue (b)</td><td>Notional/ContractAmount</td><td>AssetFairValue (a)</td><td>LiabilityFairValue (b)</td></tr><tr><td>Derivatives designated as hedging instruments under GAAP</td><td>$49,061</td><td>$1,261</td><td>$186</td><td>$36,197</td><td>$1,189</td><td>$364</td></tr><tr><td>Derivatives not designated as hedging instruments under GAAP</td><td>291,256</td><td>3,973</td><td>3,841</td><td>345,059</td><td>3,604</td><td>3,570</td></tr><tr><td>Total gross derivatives</td><td>$340,317</td><td>$5,234</td><td>$4,027</td><td>$381,256</td><td>$4,793</td><td>$3,934</td></tr></table>
<table><tr><td></td><td colspan="2">QualifiedPension</td><td colspan="2">NonqualifiedPension</td><td colspan="2">PostretirementBenefits</td></tr><tr><td>December 31 (Measurement Date) – in millions</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td><td>2018</td><td>2017</td></tr><tr><td>Accumulated benefit obligation at end of year</td><td>$4,315</td><td>$4,726</td><td>$253</td><td>$280</td><td></td><td></td></tr><tr><td>Projected benefit obligation at beginning of year</td><td>$4,789</td><td>$4,547</td><td>$286</td><td>$289</td><td>$355</td><td>$373</td></tr><tr><td>Service cost</td><td>116</td><td>160</td><td>3</td><td>3</td><td>5</td><td>5</td></tr><tr><td>Interest cost</td><td>171</td><td>179</td><td>9</td><td>10</td><td>12</td><td>14</td></tr><tr><td>Amendments</td><td></td><td>17</td><td></td><td></td><td></td><td>2</td></tr><tr><td>Actuarial (gains)/losses and changes in assumptions</td><td>-424</td><td>172</td><td>-16</td><td>8</td><td>-28</td><td>-18</td></tr><tr><td>Participant contributions</td><td></td><td></td><td></td><td></td><td>3</td><td>3</td></tr><tr><td>Federal Medicare subsidy on benefits paid</td><td></td><td></td><td></td><td></td><td>1</td><td>1</td></tr><tr><td>Benefits paid</td><td>-297</td><td>-286</td><td>-24</td><td>-24</td><td>-26</td><td>-25</td></tr><tr><td>Projected benefit obligation at end of year</td><td>$4,355</td><td>$4,789</td><td>$258</td><td>$286</td><td>$322</td><td>$355</td></tr><tr><td>Fair value of plan assets at beginning of year</td><td>$5,253</td><td>$4,617</td><td></td><td></td><td>$230</td><td>$208</td></tr><tr><td>Actual return on plan assets</td><td>-193</td><td>722</td><td></td><td></td><td>3</td><td>9</td></tr><tr><td>Employer contribution</td><td>200</td><td>200</td><td>$24</td><td>$24</td><td>21</td><td>34</td></tr><tr><td>Participant contributions</td><td></td><td></td><td></td><td></td><td>3</td><td>3</td></tr><tr><td>Federal Medicare subsidy on benefits paid</td><td></td><td></td><td></td><td></td><td>1</td><td>1</td></tr><tr><td>Benefits paid</td><td>-297</td><td>-286</td><td>-24</td><td>-24</td><td>-26</td><td>-25</td></tr><tr><td>Fair value of plan assets at end of year</td><td>$4,963</td><td>$5,253</td><td>$—</td><td>$—</td><td>$232</td><td>$230</td></tr><tr><td>Funded status</td><td>$608</td><td>$464</td><td>$-258</td><td>$-286</td><td>$-90</td><td>$-125</td></tr><tr><td>Amounts recognized on the consolidated balance sheet</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Noncurrent asset</td><td>$608</td><td>$464</td><td></td><td></td><td></td><td></td></tr><tr><td>Current liability</td><td></td><td></td><td>$-26</td><td>$-28</td><td>$-2</td><td>$-2</td></tr><tr><td>Noncurrent liability</td><td></td><td></td><td>-232</td><td>-258</td><td>-88</td><td>-123</td></tr><tr><td>Net amount recognized on the consolidated balance sheet</td><td>$608</td><td>$464</td><td>$-258</td><td>$-286</td><td>$-90</td><td>$-125</td></tr><tr><td>Amounts recognized in AOCI consist of:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Prior service cost (credit)</td><td>$12</td><td>$13</td><td></td><td></td><td>$1</td><td>$1</td></tr><tr><td>Net actuarial loss (gain)</td><td>608</td><td>534</td><td>$57</td><td>$77</td><td>-7</td><td>18</td></tr><tr><td>Amount recognized in AOCI</td><td>$620</td><td>$547</td><td>$57</td><td>$77</td><td>$-6</td><td>$19</td></tr></table>

Question: How long does Fair value of plan assets at beginning for qualified pension of year keep growing?