Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Registrant Name | HUNTINGTON INGALLS INDUSTRIES, INC. | ||
Entity Central Index Key | 1501585 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 48,303,905 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $4,600 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Sales and service revenues | |||
Product sales | $5,712 | $5,801 | $5,755 |
Service revenues | 1,245 | 1,019 | 953 |
Total sales and service revenues | 6,957 | 6,820 | 6,708 |
Cost of sales and service revenues | |||
Cost of product sales | 4,489 | 4,695 | 4,827 |
Cost of service revenues | 1,051 | 888 | 802 |
Income (loss) from operating investments, net | 11 | 14 | 18 |
General and administrative expenses | 726 | 739 | 739 |
Goodwill Impairment | 47 | ||
Operating income (loss) | 655 | 512 | 358 |
Other income (expense) | |||
Interest expense | -149 | -118 | -117 |
Other, net | 1 | ||
Earnings (loss) before income taxes | 507 | 394 | 241 |
Total federal income taxes | 169 | 133 | 95 |
Net earnings (loss) | 338 | 261 | 146 |
Basic earnings (loss) per share | $6.93 | $5.25 | $2.96 |
Weighted-average common shares outstanding (in shares) | 48.8 | 49.7 | 49.4 |
Diluted earnings (loss) per share | $6.86 | $5.18 | $2.91 |
Weighted-average diluted shares outstanding (in shares) | 49.3 | 50.4 | 50.1 |
Other comprehensive income (loss) | |||
Change in unamortized benefit plan costs | -558 | 1,159 | -605 |
Other | 4 | ||
Tax benefit (expense) for items of other comprehensive income | 217 | -458 | 241 |
Other comprehensive income (loss), net of tax | -341 | 705 | -364 |
Comprehensive income (loss) | ($3) | $966 | ($218) |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $990 | $1,043 |
Accounts receivable, net | 1,038 | 1,123 |
Inventoried costs, net | 339 | 311 |
Deferred income taxes | 129 | 170 |
Prepaid expenses and other current assets | 50 | 29 |
Total current assets | 2,546 | 2,676 |
Land and land improvements | 233 | 319 |
Buildings and leasehold improvements | 1,498 | 1,531 |
Machinery and other equipment | 1,240 | 1,235 |
Capitalized software costs | 172 | 216 |
Property, Plant and Equipment, Gross | 3,143 | 3,301 |
Accumulated depreciation and amortization | -1,351 | -1,404 |
Property, plant, and equipment, net | 1,792 | 1,897 |
Other Assets | ||
Goodwill | 1,026 | 881 |
Other purchased intangibles, net of accumulated amortization | 547 | 528 |
Pension plan assets | 17 | 124 |
Long-term deferred tax assets | 212 | |
Miscellaneous other assets | 129 | 119 |
Total other assets | 1,931 | 1,652 |
Total assets | 6,269 | 6,225 |
Current Liabilities | ||
Trade accounts payable | 269 | 337 |
Accrued employees' compensation | 248 | 230 |
Current portion of long-term debt | 108 | 79 |
Current portion of postretirement plan liabilities | 143 | 139 |
Current portion of workers' compensation liabilities | 221 | 230 |
Advance payments and billings in excess of revenues | 74 | 115 |
Other current liabilities | 249 | 262 |
Total current liabilities | 1,312 | 1,392 |
Long-term debt | 1,592 | 1,700 |
Pension plan liabilities | 939 | 529 |
Other postretirement plan liabilities | 507 | 477 |
Workers' compensation liabilities | 449 | 419 |
Deferred tax liabilities | 83 | |
Other long-term liabilities | 105 | 104 |
Total liabilities | 4,904 | 4,704 |
Commitments and Contingencies (Note 16) | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock | 1 | 1 |
Additional paid-in capital | 1,959 | 1,925 |
Retained earnings (deficit) | 525 | 236 |
Treasury stock | -258 | -120 |
Accumulated other comprehensive income (loss) | -862 | -521 |
Total stockholders' equity | 1,365 | 1,521 |
Total liabilities and stockholders' equity | $6,269 | $6,225 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Financial Position (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150 | 150 |
Common stock, shares issued | 51.5 | 50.5 |
Common stock, shares outstanding | 48.3 | 48.7 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net earnings (loss) | $338 | $261 | $146 |
Adjustments to reconcile to net cash provided by (used in) operating activities | |||
Depreciation | 166 | 206 | 165 |
Amortization of purchased intangibles | 28 | 20 | 19 |
Amortization of debt issuance costs | 11 | 9 | 9 |
Stock-based compensation | 34 | 44 | 41 |
Excess tax benefit related to stock-based compensation | -39 | -24 | |
Deferred income taxes | -22 | -28 | 79 |
Proceeds from insurance settlement related to investing activities | -58 | ||
Goodwill impairment | 47 | ||
Loss on early extinguishment of debt | 37 | ||
Change in | |||
Accounts receivable | 140 | -218 | -194 |
Inventoried costs | 53 | 51 | 116 |
Prepaid expenses and other assets | 7 | -15 | 6 |
Accounts payable and accruals | -86 | 69 | -14 |
Retiree benefits | -4 | -86 | -43 |
Other non-cash transactions, net | 6 | 5 | 2 |
Net cash provided by (used in) operating activities | 716 | 236 | 332 |
Investing Activities | |||
Additions to property, plant, and equipment | -165 | -139 | -162 |
Payments to Acquire Businesses, Net of Cash Acquired | -272 | ||
Proceeds from insurance settlement related to investing activities | 58 | ||
Net cash provided by (used in) investing activities | -437 | -81 | -162 |
Financing Activities | |||
Proceeds from issuance of long-term debt | 600 | ||
Repayment of long-term debt | -679 | -51 | -29 |
Debt issuance costs | -12 | -5 | |
Tender premiums and fees related to early extinguishment of debt | -31 | ||
Dividends paid | -49 | -25 | -5 |
Repurchases of common stock | -138 | -119 | -1 |
Employee taxes on certain share-based payment arrangements | -64 | ||
Proceeds from stock option exercises | 2 | 7 | 7 |
Excess tax benefit related to stock-based compensation | 39 | 24 | |
Net cash provided by (used in) financing activities | -332 | -169 | -28 |
Change in cash and cash equivalents | -53 | -14 | 142 |
Cash and cash equivalents, beginning of period | 1,043 | 1,057 | 915 |
Cash and cash equivalents, end of period | 990 | 1,043 | 1,057 |
Supplemental Cash Flow Disclosure | |||
Cash paid for income taxes | 161 | 154 | 28 |
Cash paid for interest | 113 | 109 | 111 |
Non-Cash Investing and Financing Activities | |||
Capital expenditures accrued in accounts payable | $9 | $12 | $20 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
In Millions, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $859 | $1,867 | ($146) | ($862) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 146 | 146 | ||||
Dividends declared | -5 | -5 | ||||
Additional paid-in capital | 32 | 32 | ||||
Other comprehensive income (loss), net of tax | -364 | -364 | ||||
Treasury stock activity | -1 | -1 | ||||
Balance at Dec. 31, 2012 | 667 | 1,894 | -1 | -1,226 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 261 | 261 | ||||
Dividends declared | -25 | -25 | ||||
Additional paid-in capital | 31 | 31 | ||||
Other comprehensive income (loss), net of tax | 705 | 705 | ||||
Common stock | 1 | 1 | ||||
Treasury stock activity | -119 | -119 | ||||
Balance at Dec. 31, 2013 | 1,521 | 1 | 1,925 | 236 | -120 | -521 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 338 | 338 | ||||
Dividends declared | -49 | -49 | ||||
Additional paid-in capital | 34 | 34 | ||||
Other comprehensive income (loss), net of tax | -341 | -341 | ||||
Treasury stock activity | -138 | -138 | ||||
Balance at Dec. 31, 2014 | $1,365 | $1 | $1,959 | $525 | ($258) | ($862) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity (Parenthetical) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2014 | Oct. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Stockholders' Equity [Abstract] | ||||||||||||||
Dividends declared per share | $0.40 | $0.20 | $0.10 | $0.40 | $0.20 | $0.20 | $0.20 | $0.20 | $0.10 | $0.10 | $0.10 | $1 | $0.50 | $0.10 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS |
For more than a century, Huntington Ingalls Industries, Inc. ("HII" or the "Company") has been designing, building, overhauling and repairing ships primarily for the U.S. Navy and the U.S. Coast Guard. The Company conducts business primarily with the U.S. Government, principally the Department of Defense ("DoD"). As prime contractor, principal subcontractor, team member or partner, HII participates in many high-priority U.S. defense technology programs. HII is organized into three reportable segments: Ingalls, Newport News, and Other. Through its Ingalls segment, HII is a builder of amphibious assault and expeditionary ships for the U.S. Navy, the sole builder of National Security Cutters for the U.S. Coast Guard, and one of only two companies that builds the Navy's current fleet of DDG-51 Arleigh Burke-class destroyers. Through its Newport News segment, HII is the nation's sole designer, builder and refueler of nuclear-powered aircraft carriers, and one of only two companies currently designing and building nuclear-powered submarines for the U.S. Navy. The Other segment was established in the second quarter of 2014 to account for certain of the Company's non-shipbuilding commercial activities. | |
In the first quarter of 2014, the Company realigned its segments in order to optimize its operating structure. Reclassifications of prior year financial information have been made to conform to the current year presentation. None of the changes impacted the Company's previously reported consolidated financial position, results of operations or cash flows. See Note 9: Segment Information for a full description of the segment realignment. | |
On March 29, 2011, HII entered into a Separation and Distribution Agreement (the "Separation Agreement") with its former parent company, Northrop Grumman Corporation ("Northrop Grumman"), and Northrop Grumman's subsidiaries (Northrop Grumman Shipbuilding, Inc. and Northrop Grumman Systems Corporation), pursuant to which HII was legally and structurally separated from Northrop Grumman. The spin-off from Northrop Grumman was a transaction under common control; therefore, no change in the historical basis of HII's assets or liabilities was recorded as part of the spin-off. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounting Policies [Abstract] | |||||||
Summary of Signifcant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||
Principles of Consolidation - The consolidated financial statements of HII and its subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the instructions to Form 10-K promulgated by the Securities and Exchange Commission ("SEC"). All intercompany transactions and balances are eliminated in consolidation. For classification of current assets and liabilities related to its long-term production contracts, the Company uses the duration of these contracts as its operating cycle, which is generally longer than one year. Additionally, certain prior year amounts have been reclassified to conform to the current year presentation. | |||||||
Accounting Estimates - The preparation of the Company's consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information, and actual results could differ materially from those estimates. The Bipartisan Budget Act of 2013 established budget top lines and provided sequestration relief for 2014 and 2015. Sequestration remains in effect for 2016 through 2021 and could result in significant decreases in DoD spending that could negatively impact the Company's revenues and its estimated recovery of goodwill and other long-lived assets. | |||||||
Revenue Recognition - The majority of the Company's business is derived from long-term contracts for the construction of naval vessels, production of goods, and provision of services to the federal government, principally the U.S. Navy. In accounting for these contracts, the Company extensively utilizes the cost-to-cost measure of the percentage-of-completion method of accounting, principally based upon total costs incurred. Under this method, sales, including estimated earned fees or profits, are recorded as costs are incurred, generally based on the percentage that total costs incurred bear to total estimated costs at completion. For certain contracts that provide for deliveries of a substantial number of similar units, sales are accounted for using units of delivery as the basis to measure progress toward completion. Certain contracts contain provisions for price redetermination or for cost and/or performance incentives. Such redetermined amounts or incentives are included in sales when the amounts can reasonably be determined and estimated. Amounts representing contract change orders, claims, requests for equitable adjustment, or limitations in funding are included in sales only when they can be reliably estimated and realization is probable. The Company is accounting for one of its contracts under the percentage-of-completion method based on a zero profit margin and will continue such accounting until results can be estimated more precisely. Revenues related to this contract represent less than 1% of the Company's total revenues for 2014. The Company estimates profit as the difference between total estimated revenues and total estimated cost of a contract and recognizes that profit over the life of the contract based on progress toward completion. If the Company estimates a contract will result in a loss, the full amount of the estimated loss is recognized against income in the period in which the loss is identified. | |||||||
The Company classifies contract revenues as product sales or service revenues depending upon the predominant attributes of the relevant underlying contracts. The Company recognizes changes in estimates of contract sales, costs, and profits using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. For the years ended December 31, 2014, 2013 and 2012, net cumulative catch-up adjustments increased operating income by $222 million, $113 million and $62 million, respectively, and increased diluted earnings per share by $2.93, $1.46 and $0.80, respectively. No individual adjustment was material to the Company's consolidated statements of operations and comprehensive income in any of these periods. | |||||||
The Company also enters into other types of contracts, such as certain services or commercial arrangements. For such contracts not associated with the design, development, manufacture, or modification of complex equipment, revenues are recognized upon delivery or as services are rendered once persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectibility is reasonably assured. Costs related to these contracts are expensed as incurred. | |||||||
General and Administrative Expenses - In accordance with industry practice and regulations that govern the cost accounting requirements for government contracts, most general corporate expenses incurred at both the segment and corporate locations are considered allowable and allocable costs on government contracts. These costs are allocated to contracts in progress on a systematic basis, and contract performance factors include this as an element of cost. | |||||||
General and administrative expenses also include certain other costs that are not allocable to government contracts, primarily consisting of the FAS/CAS Adjustment and the provision for deferred state income taxes. The FAS/CAS Adjustment reflects the difference between pension and postretirement benefits expenses determined in accordance with U.S. Financial Accounting Standards ("FAS") and pension and postretirement benefit expenses allocated to individual contracts determined in accordance with U.S. Cost Accounting Standards ("CAS"). Deferred state income taxes reflect the change in deferred state tax assets and liabilities in the period. | |||||||
Research and Development - Company-sponsored research and development activities primarily include independent research and development ("IR&D") efforts related to experimentation, design, development and test activities for government programs. IR&D expenses are included in general and administrative expenses and are generally allocable to government contracts. Company-sponsored IR&D expenses totaled $18 million, $22 million and $21 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expenses for research and development sponsored by the customer are charged directly to the related contracts. | |||||||
Product Warranty Costs - The Company provides certain product warranties that require repair or replacement of non-conforming items for a specified period of time often subject to a specified monetary coverage limit. The Company's product warranties are provided under government contracts, the costs of which are immaterial and are included in contract costs for purposes of using the percentage-of-completion method of accounting. | |||||||
Environmental Costs - Environmental liabilities are accrued when the Company determines remediation costs are probable and such amounts are reasonably estimable. When only a range of amounts is established and no amount within the range is more probable than another, the minimum amount in the range is recorded. Environmental liabilities are recorded on an undiscounted basis and are not material. Environmental expenditures are expensed or capitalized as appropriate. Capitalized expenditures, if any, relate to long-lived improvements in currently operating facilities. The Company does not record insurance recoveries before collection is probable and, as of December 31, 2014 and 2013, did not have any accrued receivables related to insurance reimbursements or recoveries for environmental matters. | |||||||
Fair Value of Financial Instruments - The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard provides a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The three levels of inputs consist of: | |||||||
Level 1: | Quoted prices in active markets for identical assets and liabilities. | ||||||
Level 2: | Observable inputs, other than Level 1 prices, such as: quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that the Company corroborates with observable market data for substantially the full term of the related assets or liabilities. | ||||||
Level 3: | Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets and liabilities. | ||||||
Except for long-term debt and available-for-sale securities held in trust, the carrying amounts of the Company's financial instruments recorded at historical cost approximate fair value due to the short-term nature of the instruments and low credit risk associated with the respective counterparties. | |||||||
The Company maintains multiple rabbi trusts established to fund certain non-qualified pension plans. These trusts consist of available-for-sale investments primarily in marketable securities. The assets are held at fair value, and a significant majority of investments held in the trusts are valued within Level 1 of the fair value hierarchy and no material amounts are valued within Level 3 of the fair value hierarchy. The rabbi trusts were valued at $45 million and $40 million as of December 31, 2014 and 2013, respectively, and are presented within miscellaneous other assets within the Consolidated Statements of Financial Position. | |||||||
Foreign Currency Translation - The Company's international subsidiaries that do not have the U.S. dollar as their functional currency translate assets and liabilities at current rates of exchange in effect at the balance sheet date. Revenues and expenses from these international subsidiaries are translated using the monthly average exchange rates in effect for the period in which the items occur. The cumulative foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Such amounts are not material. | |||||||
Asset Retirement Obligations - Environmental remediation and/or asset decommissioning may be required when the Company ceases to utilize certain facilities. The Company records, within other current liabilities, all known asset retirement obligations for which the liability's fair value can be reasonably estimated, including certain asbestos removal, asset decommissioning and lease restoration obligations. The changes in the asset retirement obligation carrying amounts for the years ended December 31, 2014, 2013 and 2012, were as follows: | |||||||
($ in millions) | Asset Retirement Obligations | ||||||
Balance as of January 1, 2012 | $ | 25 | |||||
Obligation relating to the future retirement of a facility | 1 | ||||||
Revision of estimate | (3 | ) | |||||
Accretion expense | 2 | ||||||
Balance as of December 31, 2012 | 25 | ||||||
Obligation relating to the future retirement of a facility | — | ||||||
Revision of estimate | — | ||||||
Accretion expense | — | ||||||
Balance as of December 31, 2013 | 25 | ||||||
Obligation relating to the future retirement of a facility | — | ||||||
Revision of estimate | (2 | ) | |||||
Accretion expense | (1 | ) | |||||
Balance as of December 31, 2014 | $ | 22 | |||||
The Company also has known conditional asset retirement obligations related to assets currently in use, such as certain asbestos remediation and asset decommissioning activities to be performed in the future, that were not reasonably estimable as of December 31, 2014, due to insufficient information about the timing and method of settlement of the obligation. Accordingly, the fair value of these obligations has not been recorded in the consolidated financial statements. In addition, there may be conditional environmental asset retirement obligations that the Company has not yet discovered. | |||||||
Income Taxes - Income tax expense and other related information are based on the prevailing statutory rates for U.S. federal income taxes and the composite state income tax rate for the Company for each period presented. State and local income and franchise tax provisions that are allocable to U.S. Government contracts are included in general and administrative expenses. | |||||||
Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax return purposes. Deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates expected to be in effect when the deferred tax items reverse in future periods. Determinations of the expected realizability of deferred tax assets and the need for any valuation allowances against these deferred tax assets were evaluated based upon the stand-alone tax attributes of the Company, and valuation allowances of $14 million and $12 million were deemed necessary as of December 31, 2014 and 2013, respectively. | |||||||
Uncertain tax positions meeting the more-likely-than-not recognition threshold, based on the merits of the position, are recognized in the financial statements. We recognize the amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties, we recognize an expense for the amount of the penalty in the period the tax position is claimed or expected to be claimed in our tax return. Penalties and accrued interest related to uncertain tax positions are recognized as a component of income tax expense. Changes in accruals associated with uncertain tax positions are recorded in earnings in the period they are determined. | |||||||
Cash and Cash Equivalents - The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature of these assets, having original maturity dates of 90 days or less. | |||||||
Accounts Receivable - Accounts receivable include amounts billed and currently due from customers, amounts currently due but unbilled, certain estimated contract change amounts, claims or requests for equitable adjustment in negotiation that are probable of recovery, and amounts retained by the customer pending contract completion. | |||||||
Inventoried Costs - Inventoried costs primarily relate to work in process under contracts that recognize revenues using labor dollars or units of delivery as the basis of the percentage-of-completion calculation. These costs represent accumulated contract costs less cost of sales as calculated using the percentage-of-completion method, not in excess of recoverable value. Accumulated contract costs include direct production costs, factory and engineering overhead, production tooling costs, and, for government contracts, allowable general and administrative expenses. Under the Company's U.S. Government contracts, the customer asserts title to, or a security interest in, inventories related to such contracts as a result of contract advances, performance-based payments, and progress payments. In accordance with industry practice, inventoried costs are classified as a current asset and include amounts related to contracts having production cycles longer than one year. Inventoried costs also include company owned raw materials, which are stated at the lower of cost or market, generally using the average cost method. | |||||||
Advance Payments and Billings in Excess of Revenues - Payments received in excess of inventoried costs and revenues are recorded as advance payment liabilities. | |||||||
Property, Plant, and Equipment - Depreciable properties owned by the Company are recorded at cost and depreciated over the estimated useful lives of individual assets. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are expensed. Costs incurred for computer software developed or obtained for internal use are capitalized and amortized over the expected useful life of the software, not to exceed nine years. Leasehold improvements are amortized over the shorter of their useful lives or the term of the lease. | |||||||
The remaining assets are depreciated using the straight-line method, with the following lives: | |||||||
Years | |||||||
Land improvements | 3 | - | 40 | ||||
Buildings and improvements | 3 | - | 60 | ||||
Capitalized software costs | 3 | - | 9 | ||||
Machinery and other equipment | 2 | - | 45 | ||||
The Company evaluates the recoverability of its property, plant, and equipment when there are changes in economic circumstances or business objectives that indicate the carrying value may not be recoverable. The Company's evaluations include estimated future cash flows, profitability, and other factors in determining fair value. As these assumptions and estimates may change over time, it may or may not be necessary to record impairment charges. | |||||||
Leases - The Company uses its incremental borrowing rate in the assessment of lease classification as capital or operating and defines the initial lease term to include renewal options determined to be reasonably assured. The Company conducts operations primarily under operating leases. | |||||||
Many of the Company's real property lease agreements contain incentives for tenant improvements, rent holidays, or rent escalation clauses. For incentives for tenant improvements, the Company records a deferred rent liability and amortizes the deferred rent over the term of the lease as a reduction to rent expense. For rent holidays and rent escalation clauses during the lease term, the Company records minimum rental expenses on a straight-line basis over the term of the lease. For purposes of recognizing lease incentives, the Company uses the date of initial possession as the commencement date, which is generally the date on which the Company is given the right of access to the space and begins to make improvements in preparation for the intended use. | |||||||
Goodwill and Other Purchased Intangible Assets - The Company performs impairment tests for goodwill as of November 30 of each year, or when evidence of potential impairment exists, by first comparing the carrying value of net assets to the fair value of the related operations. If the fair value is determined to be less than the carrying value, a second step is performed to determine if goodwill is impaired by comparing the estimated fair value of goodwill to its carrying value. Purchased intangible assets are amortized on a straight-line basis over their estimated useful lives, and the carrying value of these assets is reviewed for impairment when events indicate that a potential impairment may have occurred. | |||||||
Equity Method Investments - Investments in which the Company has the ability to exercise significant influence over the investee but does not own a majority interest or otherwise control are accounted for under the equity method of accounting and are included in other assets in its consolidated statements of financial position. The Company's equity investments align strategically and are integrated with the Company's operations, and therefore the Company's share of the net earnings or losses of the investee is included in operating income (loss). The Company evaluates its equity investments for other than temporary impairment whenever events or changes in business circumstances indicate that the carrying amounts of such investments may not be fully recoverable. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. | |||||||
Self-Insured Group Medical Insurance - The Company maintains a self-insured group medical insurance plan. The plan is designed to provide a specified level of coverage for employees and their dependents. Estimated liabilities for incurred but not paid claims utilize actuarial methods based on various assumptions, which include, but are not limited to, HII's historical loss experience and projected loss development factors. | |||||||
Self-Insured Workers' Compensation Plan - The operations of the Company are subject to federal and state workers' compensation laws. The Company maintains self-insured workers' compensation plans, in addition to participating in federally administered second injury workers' compensation funds. The Company estimates the required liability of claims and funding requirements on a discounted basis utilizing actuarial methods based on various assumptions, which include, but are not limited to, the Company's historical loss experience and projected loss development factors as compiled in an annual actuarial study. Related self-insurance accruals include amounts related to the liability for reported claims and an estimated accrual for claims incurred but not reported. The Company's workers' compensation liability was discounted at 2.48% and 2.16% as of December 31, 2014 and 2013, respectively. These discount rates were determined using a risk-free rate based on future payment streams. Workers' compensation benefit obligations on an undiscounted basis were $846 million and $792 million as of December 31, 2014 and 2013, respectively. | |||||||
Litigation, Commitments, and Contingencies - Amounts associated with litigation, commitments, and contingencies are recorded as charges to earnings when management, after taking into consideration the facts and circumstances of each matter, including any settlement offers, has determined that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. | |||||||
Restructuring - The Company has recorded accruals in conjunction with its restructuring activities in other current liabilities. These accruals include estimates primarily related to facility consolidations and closures, asset retirement obligations, long-lived asset write-downs, employment reductions and contract termination costs. Actual costs may vary from these estimates. Restructuring related accruals are reviewed and adjusted when circumstances require such a change. | |||||||
Deferred Contract Costs - Pension and other postretirement benefit costs are allocated to the Company's contracts as allowed costs based upon CAS. The CAS requirements for these retirement related benefit costs differ from FAS. Given the inability to match with reasonable certainty individual expense and income items between the CAS and FAS requirements to determine specific recoverability, the Company has not estimated the incremental FAS income or expense recoverable under its expected future contract activity and therefore did not defer any FAS expense for pension and other postretirement benefit plans in 2014, 2013 or 2012. | |||||||
Retirement Related Benefit Costs - The Company accounts for its retirement related benefit plans on the accrual basis. The measurements of obligations, costs, assets, and liabilities require significant judgment. The costs of benefits provided by defined benefit pension plans are recorded in the period participating employees provide service. The costs of benefits provided by other postretirement benefit plans are recorded in the period participating employees attain full eligibility. The discount rate assumption is defined under GAAP as the rate at which the plan's obligation could be effectively settled. The discount rate is established for each of the retirement related benefit plans at its respective measurement date. | |||||||
The expected return on plan assets component of retirement related costs is used to calculate net periodic expense. Unless plan assets and benefit obligations are subject to remeasurement during the year, the expected return on assets is based on the fair value of plan assets at the beginning of the year. The costs of plan amendments that provide benefits already earned by plan participants (prior service costs and credits) are deferred in accumulated other comprehensive income and amortized over the expected period the employees provide service, which is approximately 10 years. Actuarial gains and losses arising from differences from actual experience or changes in assumptions are deferred in accumulated other comprehensive income. This unrecognized amount is amortized to the extent it exceeds 10% of the greater of the plan's benefit obligation or plan assets. The amortization period for actuarial gains and losses is the estimated average remaining service life of the plan participants, which is approximately 10 years. | |||||||
The Company recognizes the funded status of each retirement related benefit plan as an asset or liability in its consolidated statements of financial position. The funded status represents the difference between the plan's benefit obligation and the fair value of the plan's assets. Unrecognized deferred amounts such as demographic or asset gains or losses and the impacts of plan amendments are included in accumulated other comprehensive income and amortized as previously described. | |||||||
Stock Compensation - Stock-based compensation value is determined based on the closing market price of the Company's common stock on grant date and the expense is recognized over the vesting period. At each reporting date, the number of shares is adjusted, based on the achievement of performance-based targets, to equal the number ultimately expected to vest. | |||||||
Related Party Transactions - In connection with the spin-off, HII entered into a Transition Services Agreement with Northrop Grumman, under which Northrop Grumman or certain of its subsidiaries provided HII at cost with certain enterprise shared services (including information technology, resource planning, financial, procurement, and human resource services), benefits support services, and other specified services. The term of the Transition Services Agreement ended on October 9, 2012. For the year ended December 31, 2012, costs incurred for these services under the Transition Services Agreement were approximately $20 million. In addition, in connection with the spin-off, HII entered into a Tax Matters Agreement with Northrop Grumman related to taxes prior to the spin-off as described in Note 13: Income Taxes. |
Accounting_Standards_Updates
Accounting Standards Updates | 12 Months Ended |
Dec. 31, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting Standards Updates | ACCOUNTING STANDARDS UPDATES |
On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued the final standard on revenue from contracts with customers. The standard, issued as Accounting Standards Update (“ASU”) 2014-09, outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the standard is that "an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services." The standard provides a five-step analysis of transactions to determine when and how revenue should be recognized. The five steps are: Identify the contract with the customer; Identify the performance obligations in the contract; Determine the transaction price; Allocate the transaction price to the performance obligations; and Recognize revenue when or as each performance obligation is satisfied. The standard also includes disclosure requirements to provide greater insight into both revenue that has been recognized and revenue that is expected to be recognized in the future from existing contracts, as well as quantitative and qualitative information about significant judgments and changes in the judgments that management made to determine revenue that is recorded. The guidance permits the use of either a retrospective or cumulative effect transition method. ASU 2014-09 will be effective for public entities for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2016 and does not permit early application. The Company is currently evaluating the impact that will result from the implementation of ASU 2014-09 on its financial statements and disclosures, contracting and accounting processes, internal controls, and Information Technology systems. | |
On June 19, 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, to provide updated guidance to resolve the diversity in practice concerning employee share-based payments that contain performance targets that could be achieved after the requisite service period. The updated guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which service has been rendered. If the performance target becomes probable of being achieved before the end of the service period, the remaining unrecognized compensation cost for which requisite service has not yet been rendered is recognized prospectively over the remaining service period. The total amount of compensation cost recognized during and after the service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. | |
The updated guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. |
Avondale
Avondale | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | |||||
Avondale | AVONDALE | ||||
In 2010, plans were announced to consolidate the Company's Ingalls shipbuilding operations by winding down shipbuilding at the Avondale, Louisiana facility in 2013 after completion of LPD-class ships that were under construction at this facility. In October 2014, the Company ceased shipbuilding construction operations at the Avondale, Louisiana facility. The consolidation is intended to reduce costs, increase efficiency, and address shipbuilding overcapacity. | |||||
In connection with and as a result of the decision to wind down shipbuilding at the Avondale, Louisiana facility, the Company began incurring and paying related costs, including, but not limited to, severance expense, relocation expense, and asset write-downs related to the Avondale facilities. Management's current estimate of these expenditures is $284 million. Such costs are expected to be recoverable under existing flexibly-priced contracts or future negotiated contracts in accordance with Federal Acquisition Regulation ("FAR") provisions for the treatment of restructuring and shutdown related costs. The Company is currently in discussions with the U.S. Navy regarding its cost submission to support the recoverability of these costs under the FAR and applicable contracts. | |||||
The Defense Contract Audit Agency ("DCAA"), a DoD agency, prepared an initial audit report on the Company's July 2010 cost proposal for restructuring and shutdown related costs of $310 million, which stated that the proposal was not adequately supported for the DCAA to reach a conclusion and questioned approximately $25 million, or 8%, of the costs submitted by the Company. The Company submitted a revised proposal in March 2014 to address the concerns of the DCAA and to reflect a revised estimated total cost of $284 million. In July 2014, the Company received a letter from the Supervisor of Shipbuilding requesting that the Company revise its restructuring proposal to address certain documentation issues identified by the DCAA in order for the Government to make an adequate evaluation of the restructuring proposal. In August 2014, the Company received a letter from the Supervisor of Shipbuilding proposing a joint meeting regarding the treatment of specific costs included in the restructuring proposal and acknowledging that the allowability and allocability of costs will be determined by the Government in an Advanced Agreement in accordance with FAR. | |||||
Ultimately, the Company anticipates agreement with the U.S. Navy that is substantially in accordance with management's cost recovery expectations. Accordingly, HII has treated these costs as allowable costs in determining the earnings performance on its contracts in process. The actual restructuring expenses related to the wind down may be greater than the Company's current estimate, and any inability to recover such costs could result in a material effect on the Company's consolidated financial position, results of operations or cash flows. | |||||
The Company also evaluated the effect that the wind down of the Avondale facilities might have on the benefit plans in which HII employees participate. HII determined that the impact of a curtailment and other resulting adjustments in these plans was not material to its consolidated financial position, results of operations or cash flows. | |||||
Although closure is still the baseline assumption for Avondale, the Company is pursuing other opportunities to utilize this facility. In April 2014, the Company announced it would conduct a study with Kinder Morgan Energy Partners, L.P. to explore and evaluate best-use opportunities for the facility. Ultimately, if the Company is successful in pursuing such opportunities, and Avondale were to remain open, the Company would submit a revised restructuring proposal to the U.S. Navy consistent with this change. In such event, the Company expects the total estimated restructuring costs would decrease. While the restructuring costs that are currently capitalized, consisting primarily of severance and retention payments as well as retired fixed assets, should remain recoverable under existing or future U.S. Navy contracts, other costs would remain as part of the Avondale cost structure associated with Avondale's new line of business. | |||||
The following table summarizes the changes in the Company's liability for restructuring and shutdown related costs associated with winding down the Avondale facility. As of December 31, 2014 and 2013, these costs were comprised primarily of employee severance and retention payments, as well as incentive bonuses. As of December 31, 2014 and 2013, $212 million and $180 million, respectively, of restructuring and shutdown related costs were capitalized in inventoried costs. As of December 31, 2014, $48 million of accounts receivable was related to restructuring and shutdown related costs. For the year ended December 31, 2014, the Company expensed $57 million of these costs as part of general and administrative expenses. | |||||
($ in millions) | Total | ||||
Balance as of January 1, 2012 | $ | 50 | |||
Payments | (50 | ) | |||
Adjustments | 24 | ||||
Balance as of December 31, 2012 | 24 | ||||
Payments | (27 | ) | |||
Adjustments | 17 | ||||
Balance as of December 31, 2013 | 14 | ||||
Payments | (15 | ) | |||
Adjustments | 1 | ||||
Balance as of December 31, 2014 | $ | — | |||
Gulfport
Gulfport | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Gulfport | GULFPORT |
On September 3, 2013, the Company announced the closure of its Gulfport Composite Center of Excellence in Gulfport, Mississippi, part of the Ingalls reportable segment, which it completed in August 2014. In connection with this closure, the Company expects to incur total costs of approximately $57 million, consisting of approximately $52 million in accelerated depreciation of fixed assets and $5 million in personnel, facility shutdown, and other related costs. In July 2014, the Company received a letter from the Supervisor of Shipbuilding taking exception to the Company's treatment of the Gulfport closure costs. The Company disagrees with the conclusion reached by the Supervisor of Shipbuilding and is currently evaluating its future course of action. The inability to recover Gulfport closure costs could result in a material effect on the Company's consolidated financial position, results of operations or cash flows. As of December 31, 2014 and 2013, $37 million and $17 million, respectively, of accounts receivable was related to Gulfport closure costs. As of December 31, 2014, $22 million of Gulfport assets were classified as held for sale in prepaid expenses and other current assets. In January 2015, the Company and the Mississippi State Port Authority entered into a purchase agreement for the Gulfport Composite Center of Excellence. The agreement allows the Port Authority to complete a due diligence process and, if successful, could result in a sale of the property in the first quarter of 2015. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | 6. ACQUISITIONS |
On May 30, 2014, the Company acquired, for approximately $225 million in cash, net of $5 million of cash acquired, UniversalPegasus International Holdings, Inc. ("UPI"), a provider of project management, engineering and construction management services to the oil and gas industry. The acquisition was consistent with the Company's strategy to utilize its engineering and energy related expertise to expand its position in energy infrastructure markets. In connection with this acquisition, the Company recorded $150 million of goodwill, all of which was allocated to its Other segment, primarily related to the value of UPI’s workforce, and $41 million of intangible assets related to contractual relationships and trade names. See Note 12: Goodwill and Other Purchased Intangible Assets. Adjustments to the fair value of assets acquired and liabilities assumed since the acquisition date were not material and were primarily driven by the finalization of the net working capital adjustment and refinement of fair value calculations for certain assets and liabilities. The Company has not completed the purchase price allocation due to potential adjustments upon finalization of the fair value of purchased intangible assets and certain tax assets and liabilities. The assets, liabilities, and results of operations of UPI are not material to the Company’s consolidated financial position, results of operations, or cash flows. | |
On January 2, 2014, the Company acquired, for approximately $47 million in cash, net of $6 million of cash acquired, The S.M. Stoller Corporation, renamed as Stoller Newport News Nuclear, Inc. ("SN3"), a provider of environmental, nuclear, and technical consulting and engineering services to the Department of Energy, Department of Defense, and private sector. The acquisition was consistent with the Company's strategy to utilize its nuclear and energy related expertise developed through its shipbuilding activities to expand its position in the energy marketplace. In connection with this acquisition, the Company recorded $42 million of goodwill, all of which was allocated to its Newport News segment, primarily attributed to SN3’s specialized and skilled employees, and $6 million of intangible assets, primarily related to existing contract backlog and trade names. See Note 12: Goodwill and Other Purchased Intangible Assets. The assets, liabilities, and results of operations of SN3 are not material to the Company’s consolidated financial position, results of operations, or cash flows. | |
The Company funded each of these acquisitions using cash on hand. The acquisition costs incurred in connection with these acquisitions were not material. The operating results of these businesses have been included in the Company’s consolidated results as of the respective closing dates of the acquisitions. In allocating the purchase price of these businesses, the Company considered the estimated fair value of net tangible and intangible assets acquired, with any excess purchase price recorded as goodwill. As of December 31, 2014, the total amount of goodwill related to these acquisitions expected to be deductible for tax purposes was $90 million. Pro forma revenues and results of operations have not been provided for these acquisitions as they are not material either individually or in the aggregate. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | STOCKHOLDERS' EQUITY | ||||||||||||
Common Stock - As of December 31, 2014, the Company had 51.5 million shares of common stock issued and 48.3 million shares of common stock outstanding. As of December 31, 2013, the Company had 50.5 million shares of common stock issued and 48.7 million shares of common stock outstanding. Changes in the Company's number of outstanding shares for the year ended December 31, 2014 resulted from shares purchased in the open market under the Company's stock repurchase program and share activity under its stock compensation plans. See Note 19: Stock Compensation Plans. | |||||||||||||
Treasury Stock - In 2012, the Company's board of directors authorized a program to repurchase up to $150 million of the Company's common stock prior to October 31, 2015, as part of a balanced cash deployment strategy. In 2013, the Company's board of directors authorized an increase in the Company's stock repurchase program from $150 million to $300 million and an extension of the term of the program to October 31, 2017. In 2014, the Company's board of directors authorized an increase in the Company's stock repurchase program from $300 million to $600 million and an extension of the term of the program to October 31, 2019. Repurchases are made from time to time at management's discretion in accordance with applicable federal securities laws. For the years ended December 31, 2014, 2013, and 2012, the Company repurchased 1,407,729, 1,722,991, and 31,008 shares, respectively, at a cost of $138 million, $119 million, and $1 million, respectively. The cost of purchased shares is recorded as treasury stock in the consolidated statements of financial position. | |||||||||||||
Dividends - In October 2013, the Company's board of directors authorized an increase in the Company's quarterly cash dividend to $0.20 per share from the $0.10 per share quarterly cash dividend the board of directors authorized in November 2012. In October 2014, the Company's board of directors authorized an increase in the Company's quarterly cash dividend to $0.40 per share from the $0.20 per share quarterly cash dividend the board of directors authorized in October 2013. The Company paid cash dividends totaling $49 million ($1.00 per share), $25 million ($0.50 per share), and $5 million ($0.10 per share) in the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||
Accumulated Other Comprehensive Income - Other comprehensive income (loss) refers to gains and losses recorded as an element of stockholders' equity but excluded from net earnings (loss). The accumulated other comprehensive loss as of December 31, 2014 and 2013, was comprised of unamortized benefit plan costs of $864 million and $523 million, respectively, and other comprehensive income items of $2 million for each of 2014 and 2013. The changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2014, 2013 and 2012, were as follows: | |||||||||||||
($ in millions) | Benefit Plans | Other | Total | ||||||||||
Balance as of December 31, 2011 | $ | (862 | ) | $ | — | $ | (862 | ) | |||||
Other comprehensive income (loss) before reclassifications | (700 | ) | — | (700 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||
Amortization of prior service cost (credit)1 | 5 | — | 5 | ||||||||||
Amortization of net actuarial loss (gain)1 | 90 | — | 90 | ||||||||||
Tax benefit (expense) for items of other comprehensive income | 241 | — | 241 | ||||||||||
Net current period other comprehensive income (loss) | (364 | ) | — | (364 | ) | ||||||||
Balance as of December 31, 2012 | (1,226 | ) | — | (1,226 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 1,028 | 4 | 1,032 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||
Amortization of prior service cost (credit)1 | (3 | ) | — | (3 | ) | ||||||||
Amortization of net actuarial loss (gain)1 | 134 | — | 134 | ||||||||||
Tax benefit (expense) for items of other comprehensive income | (456 | ) | (2 | ) | (458 | ) | |||||||
Net current period other comprehensive income (loss) | 703 | 2 | 705 | ||||||||||
Balance as of December 31, 2013 | (523 | ) | 2 | (521 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (603 | ) | — | (603 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||
Amortization of prior service cost (credit)1 | (7 | ) | — | (7 | ) | ||||||||
Amortization of net actuarial loss (gain)1 | 52 | — | 52 | ||||||||||
Tax benefit (expense) for items of other comprehensive income | 217 | — | 217 | ||||||||||
Net current period other comprehensive income (loss) | (341 | ) | — | (341 | ) | ||||||||
Balance as of December 31, 2014 | $ | (864 | ) | $ | 2 | $ | (862 | ) | |||||
1 These accumulated comprehensive income (loss) components are included in the computation of net periodic benefit cost. See Note 18: Employee Pension and Other Postretirement Benefits. The tax expense associated with amounts reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012, was $16 million, $46 million, and $33 million, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | EARNINGS PER SHARE | ||||||||||||
The calculation of basic and diluted earnings per common share was as follows: | |||||||||||||
Year Ended December 31 | |||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net earnings (loss) | $ | 338 | $ | 261 | $ | 146 | |||||||
Weighted-average common shares outstanding | 48.8 | 49.7 | 49.4 | ||||||||||
Net effect of dilutive stock options and awards | 0.5 | 0.7 | 0.7 | ||||||||||
Dilutive weighted-average common shares outstanding | 49.3 | 50.4 | 50.1 | ||||||||||
Earnings (loss) per share - basic | $ | 6.93 | $ | 5.25 | $ | 2.96 | |||||||
Earnings (loss) per share - diluted | $ | 6.86 | $ | 5.18 | $ | 2.91 | |||||||
The Company's calculation of diluted earnings per common share includes the dilutive effects of the assumed exercise of stock options and vesting of restricted stock based on the treasury stock method. Under this method, the Company has excluded the effects of 0.4 million stock options and 1.1 million Restricted Performance Stock Rights ("RPSRs") from the diluted share amounts presented above for the year ended December 31, 2014. | |||||||||||||
The amounts presented above for the year ended December 31, 2013, exclude the impact of 0.5 million stock options, 0.3 million Restricted Stock Rights ("RSRs") and 1.0 million RPSRs under the treasury stock method. The amounts presented above for the year ended December 31, 2012, exclude the impact of 0.9 million stock options, 0.4 million RSRs, and 1.3 million RPSRs under the treasury stock method. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information | SEGMENT INFORMATION | ||||||||||||
The Company is organized into three reportable segments: Ingalls, Newport News and Other, consistent with how management makes operating decisions and assesses performance. The Other segment was established in the second quarter of 2014 to account for certain of the Company's non-shipbuilding commercial activities. In the first quarter of 2014, the Company realigned its segments in order to optimize its operating structure. As a result of this realignment, the Company's AMSEC and Continental Maritime of San Diego ("CMSD") businesses were transferred from the Ingalls segment to the Newport News segment. Business segment data for 2013 and 2012 reflects this realignment. None of these changes impacted the Company's previously reported consolidated financial position, results of operations or cash flows. | |||||||||||||
U.S. Government Sales - Revenues from the U.S. Government include revenues from contracts for which HII is the prime contractor as well as contracts for which the Company is a subcontractor and the ultimate customer is the U.S. Government. The Company derives most of its revenues from the U.S. Government. | |||||||||||||
Assets - Substantially all of the Company's assets are located or maintained in the United States. | |||||||||||||
Results of Operations by Segment | |||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Sales and Service Revenues | |||||||||||||
Ingalls | $ | 2,286 | $ | 2,441 | $ | 2,532 | |||||||
Newport News | 4,536 | 4,382 | 4,180 | ||||||||||
Other | 137 | — | — | ||||||||||
Intersegment eliminations | (2 | ) | (3 | ) | (4 | ) | |||||||
Total sales and service revenues | $ | 6,957 | $ | 6,820 | $ | 6,708 | |||||||
Operating Income (Loss) | |||||||||||||
Ingalls | $ | 229 | $ | 165 | $ | 85 | |||||||
Newport News | 415 | 402 | 372 | ||||||||||
Other | (59 | ) | — | — | |||||||||
Total segment operating income (loss) | 585 | 567 | 457 | ||||||||||
Non-segment factors affecting operating income (loss) | |||||||||||||
FAS/CAS Adjustment | 72 | (61 | ) | (80 | ) | ||||||||
Deferred state income taxes | (2 | ) | 6 | (19 | ) | ||||||||
Total operating income (loss) | $ | 655 | $ | 512 | $ | 358 | |||||||
Sales transactions between segments are generally recorded at cost. | |||||||||||||
Goodwill Impairment Charge - The operating loss at the Other segment for the year ended December 31, 2014, reflects a goodwill impairment charge of $47 million. | |||||||||||||
Other Financial Information | |||||||||||||
The following tables present, by segment, the Company's assets, capital expenditures, and depreciation and amortization. | |||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Assets | |||||||||||||
Ingalls | $ | 1,452 | $ | 1,663 | 1,620 | ||||||||
Newport News | 3,155 | 3,111 | 3,068 | ||||||||||
Other | 210 | — | — | ||||||||||
Corporate | 1,452 | 1,451 | 1,704 | ||||||||||
Total assets | $ | 6,269 | $ | 6,225 | $ | 6,392 | |||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Capital Expenditures | |||||||||||||
Ingalls | $ | 53 | $ | 44 | $ | 37 | |||||||
Newport News | 109 | 93 | 125 | ||||||||||
Other | 3 | — | — | ||||||||||
Corporate | — | 2 | — | ||||||||||
Total capital expenditures | $ | 165 | $ | 139 | $ | 162 | |||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Depreciation and Amortization(1) | |||||||||||||
Ingalls | $ | 81 | $ | 125 | $ | 89 | |||||||
Newport News | 105 | 100 | 95 | ||||||||||
Other | 8 | — | — | ||||||||||
Corporate | — | 1 | — | ||||||||||
Total depreciation and amortization | $ | 194 | $ | 226 | $ | 184 | |||||||
(1) Excluding amortization of debt issuance costs |
Accounts_Receivable_Net
Accounts Receivable, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET | ||||||||
Accounts receivable includes unbilled amounts, which represent sales for which billings have not been presented to customers at year-end. These amounts are usually billed and collected within one year. Accounts receivable at December 31, 2014, are expected to be collected in 2015, except for approximately $62 million due in 2016 and $200 million due in or after 2017. | |||||||||
Because the Company's accounts receivable are primarily with the U.S. Government or with companies acting as a contractor to the U.S. Government, the Company does not have material exposure to accounts receivable credit risk. | |||||||||
Accounts receivable were composed of the following: | |||||||||
December 31 | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Due From U.S. Government | |||||||||
Amounts billed | $ | 180 | $ | 143 | |||||
Recoverable costs and accrued profit on progress completed - unbilled | 766 | 944 | |||||||
946 | 1,087 | ||||||||
Due From Other Customers | |||||||||
Amounts billed | 64 | 28 | |||||||
Recoverable costs and accrued profit on progress completed - unbilled | 35 | 15 | |||||||
99 | 43 | ||||||||
Total accounts receivable | 1,045 | 1,130 | |||||||
Allowances for doubtful accounts | (7 | ) | (7 | ) | |||||
Total accounts receivable, net | $ | 1,038 | $ | 1,123 | |||||
Inventoried_Costs_Net
Inventoried Costs, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventoried Costs, Net | INVENTORIED COSTS, NET | ||||||||
Inventoried costs were composed of the following: | |||||||||
31-Dec | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Production costs of contracts in process | $ | 248 | $ | 218 | |||||
General and administrative expenses | — | 2 | |||||||
248 | 220 | ||||||||
Progress payments received | — | — | |||||||
248 | 220 | ||||||||
Raw material inventory | 91 | 91 | |||||||
Total inventoried costs, net | $ | 339 | $ | 311 | |||||
Goodwill_and_Other_Purchased_I
Goodwill and Other Purchased Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Purchased Intangible Assets | GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS | ||||||||||||||||
Goodwill | |||||||||||||||||
HII performs impairment tests for goodwill as of November 30 of each year and between annual impairment tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the Company's reporting units below their carrying value. Reporting units are aligned with the Company's businesses. The Company’s testing approach utilizes a combination of discounted cash flow analysis and comparative market multiples to determine the fair value of its businesses for comparison to their corresponding book values. | |||||||||||||||||
After conducting its 2014 test, the Company determined that goodwill at its Other segment was impaired by $47 million. The Other segment, established in the second quarter of 2014 following the acquisition of UPI, is sensitive to developments in the oil and gas industry. The goodwill impairment charge was primarily driven by the recent drop in oil prices and the resulting decrease in industry market multiples. The Company determined that the estimated fair value of its remaining reporting units exceeded their corresponding carrying values as of November 30, 2014. | |||||||||||||||||
The Company determined that the estimated fair value of each reporting unit exceeded its corresponding carrying value as of November 30, 2013 and 2012. | |||||||||||||||||
Accumulated goodwill impairment losses as of December 31, 2014 and 2013, were $2,802 million and $2,755 million, respectively. The accumulated goodwill impairment losses for Ingalls as of both December 31, 2014, and 2013, were $1,568 million. The accumulated goodwill impairment losses for Newport News as of both December 31, 2014, and 2013, were $1,187 million. The accumulated goodwill impairment losses for the Other segment as of December 31, 2014, were $47 million. | |||||||||||||||||
For the year ended December 31, 2014, the Company recorded $42 million of goodwill related to its acquisition of SN3 and $150 million of goodwill related to its acquisition of UPI. | |||||||||||||||||
For the years ended December 31, 2014 and 2013, the carrying amounts of goodwill changed as follows: | |||||||||||||||||
($ in millions) | Ingalls | Newport News | Other | Total | |||||||||||||
Balance as of January 1, 2013 | $ | 175 | $ | 706 | $ | — | $ | 881 | |||||||||
Balance as of December 31, 2013 | 175 | 706 | — | 881 | |||||||||||||
Acquisitions | — | 42 | 150 | 192 | |||||||||||||
Goodwill impairment | — | — | (47 | ) | (47 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 175 | $ | 748 | $ | 103 | $ | 1,026 | |||||||||
In the first quarter of 2014, the Company realigned its segments in order to optimize its operating structure. As a result, the net goodwill balance as of December 31, 2013, includes the reclassification of $23 million of goodwill from the Company's Ingalls segment to its Newport News segment. See Note 9: Segment Information for a full description of the segment realignments. None of these changes impacted the previously reported goodwill within each of the Company's reporting units. | |||||||||||||||||
Purchased Intangible Assets | |||||||||||||||||
In connection with the UPI purchase, the Company recorded $41 million of intangible assets pertaining to existing contracts, trademarks and trade names to be amortized using the pattern of benefits method over a weighted-average life of 11 years. In connection with the SN3 purchase, the Company recorded $6 million of intangible assets pertaining to existing contract backlog, trademarks and trade names to be amortized using the pattern of benefits method over a weighted-average life of five years. | |||||||||||||||||
The following table summarizes the Company's aggregate purchased intangible assets, which are primarily program related intangible assets. | |||||||||||||||||
31-Dec | |||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||
Gross carrying amount | $ | 986 | $ | 939 | |||||||||||||
Accumulated amortization | (439 | ) | (411 | ) | |||||||||||||
Net carrying amount | $ | 547 | $ | 528 | |||||||||||||
The Company's purchased intangible assets are being amortized on a straight-line basis or a method based on the pattern of benefits. Net intangible assets consist principally of amounts pertaining to nuclear-powered aircraft carrier and submarine program intangibles, with an aggregate weighted-average useful life of 40 years based on the long life cycle of the related programs. Aggregate amortization expense for the years ended December 31, 2014, 2013 and 2012, was $28 million, $20 million and $19 million, respectively. | |||||||||||||||||
The Company expects amortization for purchased intangible assets of $26 million in 2015, $25 million in each of 2016 and 2017, and $24 million in each of 2018 and 2019. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | INCOME TAXES | ||||||||||||
The Company's earnings are principally domestic and its effective tax rate on earnings from operations for the year ended December 31, 2014, was 33.3%, compared with 33.8% and 39.4% for 2013 and 2012, respectively. | |||||||||||||
For the year ended December 31, 2014, the Company's effective tax rate differed from the federal statutory rate primarily as a result of the domestic manufacturing deduction, partially offset by the amount of the goodwill impairment that is not amortizable for tax purposes. For the year ended December 31, 2013, the Company's effective tax rate differed from the federal statutory rate primarily as a result of the domestic manufacturing deduction and enactment of the American Taxpayer Relief Act in January 2013, which retroactively extended the research and development tax credit through the end of 2013. The Company's effective tax rate for the year ended December 31, 2013, reflects the entire 2012 income tax benefit for the research and development tax credit, which expired at the end of 2011. For the year ended December 31, 2012, the Company's effective tax rate differed from the federal statutory tax rate primarily as a result of an $8 million non-cash tax adjustment arising under the Tax Matters Agreement with Northrop Grumman. | |||||||||||||
Deferred state income taxes reflect the change in deferred state assets and liabilities in the relevant period. These amounts are recorded within operating income, while the current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income. | |||||||||||||
In connection with the spin-off, HII entered into a Tax Matters Agreement with Northrop Grumman that governs the respective rights, responsibilities, and obligations of Northrop Grumman and the Company with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. federal, state, local, and foreign income taxes, other taxes, and related tax returns. The Company is severally liable with Northrop Grumman for its income taxes for periods before the spin-off. HII is obligated to indemnify Northrop Grumman for tax adjustments that increase the Company's taxable income for periods before the spin-off and are of a nature that could result in a correlative reduction in HII's taxable income for periods after the spin-off. Northrop Grumman is obligated to indemnify HII for tax adjustments that decrease the Company's taxable income for periods before the spin-off and are of a nature that could result in a correlative increase in HII's taxable income for periods after the spin-off. These payment obligations only apply once the aggregate tax liability related to tax adjustments exceeds $5 million. Once the aggregate amount is exceeded, only the amount in excess of $5 million is ultimately required to be paid. In 2014, 2013, and 2012, HII incurred non-cash federal and state tax adjustments for items governed by the Tax Matters Agreement. The federal tax expense (benefit) adjustment is reported as a component of the tax expense, while the state tax expense (benefit) adjustment is treated as an allowable cost in the applicable period under the terms of the Company's existing contracts and is included in general and administrative expenses. | |||||||||||||
Federal income tax expense for the years ended December 31, 2014, 2013 and 2012, consisted of the following: | |||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Income Taxes on Operations | |||||||||||||
Federal income taxes currently payable | $ | 191 | $ | 150 | $ | 49 | |||||||
Change in deferred federal income taxes | (22 | ) | (17 | ) | 46 | ||||||||
Total federal income taxes | $ | 169 | $ | 133 | $ | 95 | |||||||
Income tax expense differed from the amount based on the statutory federal income tax rate applied to earnings (loss) before income taxes due to the following: | |||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense (benefit) on operations at statutory rate | $ | 178 | $ | 138 | $ | 84 | |||||||
Goodwill impairment | 6 | — | — | ||||||||||
Manufacturing deduction | (9 | ) | (7 | ) | (3 | ) | |||||||
Research tax credit | — | (2 | ) | — | |||||||||
Tax Matters Agreement adjustment | — | — | 8 | ||||||||||
Other, Net | (6 | ) | 4 | 6 | |||||||||
Total federal income taxes | $ | 169 | $ | 133 | $ | 95 | |||||||
Unrecognized Tax Benefits - Unrecognized tax benefits represent the gross value of the Company's uncertain tax positions that have not been reflected in the consolidated statements of operations. If the income tax benefits from federal tax positions are ultimately realized, such realization would affect the Company's income tax expense, whereas the realization of state tax benefits would be recorded in general and administrative expenses. The changes in unrecognized tax benefits (exclusive of interest and penalties) for the years ended December 31, 2014, 2013 and 2012 are summarized in the following table: | |||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits at beginning of the year | $ | 11 | $ | 19 | $ | 6 | |||||||
Additions based on tax positions related to the current year | 5 | 5 | 7 | ||||||||||
Additions based on tax positions of prior years | 3 | 1 | 19 | ||||||||||
Current year acquisitions | 4 | — | — | ||||||||||
Reductions based on tax positions of prior years | — | (14 | ) | (12 | ) | ||||||||
Settlements | — | — | (1 | ) | |||||||||
Statute of limitation expirations | (4 | ) | — | — | |||||||||
Net change in unrecognized tax benefits | 8 | (8 | ) | 13 | |||||||||
Unrecognized tax benefits at end of the year | $ | 19 | $ | 11 | $ | 19 | |||||||
As of December 31, 2014 and 2013, the estimated amount of the Company's uncertain tax positions, excluding interest and penalties, were liabilities of $19 million and $11 million, respectively. Assuming sustainment of these positions, as of December 31, 2014 and 2013, the reversal of $11 million and $5 million, respectively, of the amounts accrued would favorably affect the Company's effective federal income tax rate in future periods. Accrued interest and penalties with respect to unrecognized tax benefits were $3 million as of December 31, 2014 and 2013. | |||||||||||||
During 2013, the Company recorded a reduction of $14 million related to a change approved by the IRS for the allocation of interest costs to long term construction contracts at Ingalls. This change was made on a prospective basis only and does not impact the tax returns filed for years prior to 2013. | |||||||||||||
The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: | |||||||||||||
Jurisdiction | Years | ||||||||||||
United States | 2007 | - | 2013 | ||||||||||
California | 2007 | - | 2013 | ||||||||||
Louisiana | 2011 | - | 2013 | ||||||||||
Mississippi | 2011 | - | 2013 | ||||||||||
Virginia | 2011 | - | 2013 | ||||||||||
Although the Company believes it has adequately provided for all uncertain tax positions, amounts asserted by taxing authorities could be greater than the Company's accrued position. Accordingly, additional provisions for federal and state income tax related matters could be recorded in the future as revised estimates are made or the underlying matters are effectively settled or otherwise resolved. Conversely, the Company could settle positions with the tax authorities for amounts lower than have been accrued. The Company believes that it is reasonably possible that during the next 12 months the Company's liability for uncertain tax positions may decrease by approximately $2 million. | |||||||||||||
The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. The IRS is currently conducting an examination of Northrop Grumman's consolidated tax returns, of which HII was part, for the years 2007 through the spin-off. During 2013 the Company entered into the pre-Compliance Assurance Process with the IRS for years 2011 and 2012. The Company is part of the IRS Compliance Assurance Process program for the 2014 and 2015 tax years. Open tax years related to state jurisdictions remain subject to examination. As of March 31, 2011, the date of the spin-off, the Company's liability for uncertain tax positions was approximately $4 million, net of federal benefit, which related solely to state income tax positions. Under the terms of the Separation Agreement, Northrop Grumman is obligated to reimburse HII for any settlement liabilities paid by HII to any government authority for tax periods prior to the spin-off, which include state income taxes. Accordingly, the Company recorded in other assets a reimbursement receivable of approximately $4 million, net of federal benefit, related to uncertain tax positions for state income taxes as of the date of the spin-off. In 2014, the statute of limitations expired for the $4 million liability related to state uncertain tax positions as of the spin-off date. Accordingly, the $4 million liability and the associated reimbursement receivable were written off. | |||||||||||||
On September 13, 2013, the Treasury Department and the Internal Revenue Service issued final regulations regarding the deduction and capitalization of amounts paid to acquire, produce, improve, or dispose of tangible personal property. These regulations are generally effective for tax years beginning on or after January 1, 2014. The application of these regulations did not have a material impact on our consolidated financial statements. | |||||||||||||
Deferred Income Taxes - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes. Such amounts are classified in the consolidated statements of financial position as current or non-current assets or liabilities based upon the classification of the related assets and liabilities. | |||||||||||||
The tax effects of significant temporary differences and carry-forwards that gave rise to year-end deferred federal and state tax balances, as presented in the consolidated statements of financial position, were as follows: | |||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Deferred Tax Assets | |||||||||||||
Retirement benefits | $ | 592 | $ | 366 | |||||||||
Workers' compensation | 256 | 248 | |||||||||||
Reserves not currently deductible for tax purposes | 9 | 36 | |||||||||||
Stock-based compensation | 14 | 20 | |||||||||||
Net operating losses and tax credit carry-forwards | 20 | — | |||||||||||
Other | 9 | 16 | |||||||||||
Gross deferred tax assets | 900 | 686 | |||||||||||
Less valuation allowance | 14 | 12 | |||||||||||
Net deferred tax assets | 886 | 674 | |||||||||||
Deferred Tax Liabilities | |||||||||||||
Depreciation and amortization | 297 | 337 | |||||||||||
Contract accounting differences | 53 | 45 | |||||||||||
Purchased intangibles | 195 | 205 | |||||||||||
Gross deferred tax liabilities | 545 | 587 | |||||||||||
Total net deferred tax assets | $ | 341 | $ | 87 | |||||||||
As of December 31, 2014, the Company had gross state income tax credit carry-forwards of approximately $23 million, which expire from 2015 through 2017. A deferred tax asset of approximately $15 million (net of federal benefit) has been established related to these state income tax credit carry-forwards, with a valuation allowance of $12 million against such deferred tax asset as of December 31, 2014. Further, the Company had a gross state net operating loss carry-forward of $40 million that expires in 2022. A deferred tax asset of approximately $2 million (net of federal benefit) has been established for the net operating loss carry-forward, with a full valuation allowance as of December 31, 2014. Further, the Company had a federal net operating loss carry-forward of $11 million from the UPI acquisition of which $7 million expires in 2033 and $4 million expires in 2034. | |||||||||||||
Net deferred tax assets (liabilities) as presented in the consolidated statements of financial position were as follows: | |||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Net current deferred tax assets | $ | 129 | $ | 170 | |||||||||
Net non-current deferred tax assets | 212 | — | |||||||||||
Net non-current deferred tax liabilities | — | (83 | ) | ||||||||||
Total net deferred tax assets | $ | 341 | $ | 87 | |||||||||
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | DEBT | ||||||||
Long-term debt consisted of the following: | |||||||||
December 31 | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Term loan due March 30, 2016 | $ | 395 | $ | 474 | |||||
Senior notes due March 15, 2018, 6.875% | — | 600 | |||||||
Senior notes due March 15, 2021, 7.125% | 600 | 600 | |||||||
Senior notes due December 15, 2021, 5.000% | 600 | — | |||||||
Mississippi economic development revenue bonds due May 1, 2024, 7.81% | 84 | 84 | |||||||
Gulf opportunity zone industrial development revenue bonds due December 1, 2028, 4.55% | 21 | 21 | |||||||
Total long-term debt | 1,700 | 1,779 | |||||||
Less current portion | 108 | 79 | |||||||
Long-term debt, net of current portion | $ | 1,592 | $ | 1,700 | |||||
Credit Facility - In March 2011, the Company entered into the Credit Facility with third-party lenders. The Credit Facility is comprised of a five-year term loan facility of $575 million, which was funded on March 30, 2011, and a revolving credit facility of $650 million, which may be drawn upon during a period of five years from the date of the funding. The revolving credit facility includes a letter of credit subfacility of $350 million, and a swingline loan subfacility of $100 million. In November 2013, the Company amended and restated its existing Credit Facility to provide more favorable pricing terms and more flexibility under the Credit Facility’s restricted payment covenants. The term loan and revolving credit facility have a variable interest rate on outstanding borrowings based on the London Interbank Offered Rate ("LIBOR") plus a spread based upon the Company's leverage ratio. As of December 31, 2014, the spread was 1.5% and may vary between 1.5% and 2.5%. The revolving credit facility also has a commitment fee rate on the unutilized balance based on the Company's leverage ratio. As of December 31, 2014, this fee rate was 0.25% and may vary between 0.25% and 0.45%. As of December 31, 2014, approximately $31 million in letters of credit were issued but undrawn, and the remaining $619 million of the revolving credit facility was unutilized. | |||||||||
The term loan facility requires principal payments in three-month intervals from the funding date. Payments were made in aggregate amounts equal to 5% during each of the first year and the second year, 10% during the third year, and are expected to be made in aggregate amounts equal to 15% during the fourth year and 65% during the fifth year, of which 5% is payable on each of the first three quarterly payment dates during such year, and the balance is payable on the term maturity date. | |||||||||
Each of the Company's existing and future domestic 100% owned subsidiaries, except for those that are specifically designated as unrestricted subsidiaries, are and will be guarantors under the Credit Facility. | |||||||||
The terms of the Credit Facility limit the Company's ability and the ability of certain of HII's subsidiaries to: incur additional indebtedness, create liens, pay dividends or make distributions in respect of capital stock, purchase or redeem capital stock, enter into sale and leaseback transactions, make investments or certain other restricted payments, sell assets, enter into transactions with stockholders or affiliates and effect a consolidation or merger. As of December 31, 2014, the Company was limited to a total of $74 million for additional dividend payments and stock repurchases. The terms of the Credit Facility provide for periodic increases to these limits. | |||||||||
Senior Notes - In March 2011, the Company issued $600 million aggregate principal amount of 6.875% senior notes due March 15, 2018, and $600 million aggregate principal amount of 7.125% senior notes due March 15, 2021, in a private offering, at par, under an indenture dated March 11, 2011, between HII and The Bank of New York Mellon, as trustee. Pursuant to the terms of the registration rights agreement entered into in connection with the issuance of these senior notes, the Company completed on February 3, 2012, an exchange of $600 million aggregate principal amount of 6.875% senior notes due March 15, 2018, and $600 million aggregate principal amount of 7.125% senior notes due March 15, 2021, that are registered under the Securities Act of 1933, as amended, for all of the then outstanding unregistered senior notes. On December 2, 2014, the Company issued $600 million aggregate principal amount of 5.000% senior notes due December 15, 2021. The net proceeds from the issuance of these senior notes were used to repurchase the Company's 6.875% senior notes due March 15, 2018 in connection with the 2014 debt call and tender offers described below. Interest on the Company's senior notes is payable semi-annually. | |||||||||
The terms of the 7.125% senior notes limit the Company's ability and the ability of certain of its subsidiaries to: incur additional indebtedness, create liens, pay dividends or make distributions in respect of capital stock, purchase or redeem capital stock, make investments or certain other restricted payments, sell assets, enter into transactions with stockholders or affiliates and effect a consolidation or merger. The terms of the 5.000% senior notes limit the Company’s ability and the ability of certain of its subsidiaries to: create liens, enter into sale and leaseback transactions, sell assets, and effect a consolidation or merger. | |||||||||
Performance of the Company's obligations under the senior notes, including any repurchase obligations resulting from a change of control, is fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of HII's existing and future domestic subsidiaries that guarantees debt under the Credit Facility (the "Subsidiary Guarantors"). The guarantees rank equally with all other unsecured and unsubordinated indebtedness of the guarantors. The Subsidiary Guarantors are each directly or indirectly 100% owned by HII. There are no significant restrictions on the ability of HII or any Subsidiary Guarantor to obtain funds from their respective subsidiaries by dividend or loan. | |||||||||
Debt Call and Tender Offer - During the fourth quarter of 2014, the Company completed a debt call and tender offer to purchase for cash an aggregate principal amount of $600 million of its 6.875% senior notes due March 15, 2018. Details of the debt call and tender offer and the associated loss on early extinguishment of debt were as follows: | |||||||||
31-Dec | |||||||||
($ in millions) | 2014 | ||||||||
Debt call and tender premiums and fees | $ | 31 | |||||||
Write-off of unamortized debt issuance costs | 6 | ||||||||
Total loss on early extinguishment of debt | $ | 37 | |||||||
Mississippi Economic Development Revenue Bonds - As of December 31, 2014 and 2013, the Company had $84 million outstanding under Industrial Revenue Bonds issued by the Mississippi Business Finance Corporation. These bonds accrue interest at a fixed rate of 7.81% per annum (payable semi-annually) and mature in 2024. While repayment of principal and interest is guaranteed by Northrop Grumman Systems Corporation, HII has agreed to indemnify Northrop Grumman Systems Corporation for any losses related to the guaranty. In accordance with the terms of the bonds, the proceeds have been used to finance the construction, reconstruction, and renovation of the Company's interest in certain ship manufacturing and repair facilities, or portions thereof, located in the state of Mississippi. | |||||||||
Gulf Opportunity Zone Industrial Development Revenue Bonds - As of December 31, 2014 and 2013, the Company had $21 million outstanding under Gulf Opportunity Zone Industrial Development Revenue Bonds ("GO Zone IRBs") issued by the Mississippi Business Finance Corporation. These bonds accrue interest at a fixed rate of 4.55% per annum (payable semi-annually) and mature in 2028. In accordance with the terms of the bonds, the proceeds have been used to finance the construction, reconstruction, and renovation of the Company's interest in certain ship manufacturing and repair facilities, or portions thereof, located in the state of Mississippi. | |||||||||
The Company's debt arrangements contain customary affirmative and negative covenants, including a maximum total leverage ratio and a minimum interest coverage ratio. The Company was in compliance with all debt covenants during the year ended December 31, 2014. | |||||||||
The estimated fair value of the Company's total long-term debt, including current portions, at December 31, 2014 and December 31, 2013, was $1,779 million and $1,897 million, respectively. The fair value of the Company's long-term debt was calculated based on either recent trades of the Company's debt instruments in inactive markets or yields available on debt with substantially similar risks, terms, and maturities, which fall within Level 2 under the fair value hierarchy. | |||||||||
The aggregate amounts of principal payments due on long-term debt for each of the next five years and thereafter are: | |||||||||
($ in millions) | |||||||||
2015 | $ | 108 | |||||||
2016 | 287 | ||||||||
2017 | — | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
Thereafter | 1,305 | ||||||||
Total long-term debt | $ | 1,700 | |||||||
Investigations_Claims_And_Liti
Investigations, Claims, And Litigation | 12 Months Ended |
Dec. 31, 2014 | |
Investigations, Claims, And Litigation [Abstract] | |
Investigations, Claims, And Litigation | INVESTIGATIONS, CLAIMS, AND LITIGATION |
The Company is involved in legal proceedings before various courts and administrative agencies, and is periodically subject to government examinations, inquiries and investigations. Pursuant to FASB Accounting Standards Codification 450 Contingencies, the Company has accrued for losses associated with investigations, claims and litigation when, and to the extent that, loss amounts related to the investigations, claims and litigation are probable and can be reasonably estimated. The actual losses that might be incurred to resolve such investigations, claims and litigation may be higher or lower than the amounts accrued. For matters where a material loss is probable or reasonably possible and the amount of loss cannot be reasonably estimated, but the Company is able to reasonably estimate a range of possible losses, the Company will disclose such estimated range in these notes. This estimated range is based on information currently available to the Company and involves elements of judgment and significant uncertainties. This estimated range of possible loss does not represent the Company's maximum possible loss exposure. For matters as to which the Company is not able to reasonably estimate a possible loss or range of loss, the Company is required to indicate the reasons why it is unable to estimate the possible loss or range of loss. For matters not specifically described in these notes, the Company does not believe, based on information currently available to it, that it is reasonably possible that the liabilities, if any, arising from such investigations, claims and litigation will have a material effect on its consolidated financial position, results of operations or cash flows. The Company has, in certain cases, provided disclosure regarding certain matters for which the Company believes at this time that the likelihood of material loss is remote. | |
False Claims Act Complaint - In January 2011, the U.S. Department of Justice ("DoJ") first informed the Company through Northrop Grumman of a False Claims Act complaint (the "Complaint") that was filed under seal in the U.S. District Court for the District of Columbia. The redacted copy of the Complaint the Company received alleges that, through largely unspecified fraudulent means, the Company and Northrop Grumman obtained federal funds that were restricted by law for the consequences of Hurricane Katrina, and used those funds to cover costs under certain shipbuilding contracts that were unrelated to Katrina and for which Northrop Grumman and the Company were not entitled to recovery under the contracts. The Complaint seeks monetary damages of at least $835 million, plus penalties, attorneys' fees and other costs of suit. Damages under the False Claims Act may be trebled upon a finding of liability. | |
In July 2012, the District Court entered an order permitting the Company to disclose certain information not included in the redacted copy of the Complaint received by the Company, including the date the Complaint was filed, the decision of the DoJ to decline intervention in the case, and the principal parties involved in the case. The Complaint was filed on June 2, 2010, by relators Gerald M. Fisher and Donald C. Holmes. On December 8, 2011, the DoJ filed a Notice of Election to Decline Intervention in the case. As of August 29, 2012, Gerald M. Fisher was no longer a relator in or party to this case. On February 28, 2013, the U.S. District Court for the District of Columbia granted the defendants' motion to transfer venue, and the case was transferred to the U.S. District Court for the Southern District of Mississippi. The Company has filed a motion to dismiss the case and a motion to disqualify relator Holmes, and all other matters are stayed pending resolution of the motion to dismiss. | |
Based upon a review to date of the information available to the Company, the Company believes that it has substantive defenses to the allegations in the Complaint, that the claims as set forth in the Complaint evidence a fundamental lack of understanding of the terms and conditions in the Company's shipbuilding contracts, including the post-Katrina modifications to those contracts, and the manner in which the parties performed in connection with the contracts, and that the claims as set forth in the Complaint lack merit. The Company, therefore, believes that the claims as set forth in the Complaint will not result in a material effect on its consolidated financial position, results of operations or cash flows. The Company intends to defend the matter vigorously, but the Company cannot predict what new or revised claims might be asserted or what information might come to light and can, therefore, give no assurances regarding the ultimate outcome. | |
U.S. Government Investigations and Claims - Departments and agencies of the U.S. Government have the authority to investigate various transactions and operations of the Company, and the results of such investigations may lead to administrative, civil or criminal proceedings, the ultimate outcome of which could be fines, penalties, repayments or compensatory, treble, or other damages. U.S. Government regulations provide that certain findings against a contractor may also lead to suspension or debarment from future U.S. Government contracts or the loss of export privileges. Any suspension or debarment would have a material effect on the Company because of its reliance on government contracts. | |
In January 2013, the Company disclosed to the DoD, including the U.S. Navy, and the U.S. Department of Homeland Security, including the U.S. Coast Guard, pursuant to the FAR, that it had initiated an internal investigation regarding whether certain employees at Ingalls mischarged time or misstated progress on Navy and Coast Guard contracts. The Company conducted an internal investigation, led by external counsel, and has taken remedial actions, including the termination of employees in instances where the Company believed grounds for termination existed. The Company is providing information regarding its investigation to the relevant government agencies. The Company agreed with the U.S. Navy and U.S. Coast Guard that they would initially withhold $24 million in payments on existing contracts pending receipt of additional information from the Company's internal investigation. The U.S. Navy has reduced its portion of the withhold from $18.2 million to $4.7 million, while expressing its view that the gross amount of potential mischarging incurred by the Navy will likely not exceed $3.1 million. The U.S. Coast Guard informed the Company in June 2014 that it was provisionally reducing its withhold from $5.8 million to $3.6 million. Based on the results of its internal investigation, the Company estimates that the maximum amount of U.S. Navy and Coast Guard mischarging is approximately $4 million. | |
The Company is in discussions with its U.S. Government customers regarding the potential release of an additional portion of the withheld funds, but it cannot predict whether these customers will agree to a lower withhold amount. Depending upon the U.S. Government's assessment of the matters under investigation, the Company could be subject to significant civil penalties, criminal fines, and suspension or debarment from U.S. Government contracting. Although the Company does not currently believe that this matter will have a material effect on its financial condition, results of operations or cash flows, the Company cannot predict what new information might come to light in the future and can therefore give no assurances regarding the ultimate outcome of this matter. | |
Asbestos Related Claims - HII and its predecessors-in-interest are defendants in a longstanding series of cases that have been and continue to be filed in various jurisdictions around the country, wherein former and current employees and various third parties allege exposure to asbestos containing materials while on or associated with HII premises or while working on vessels constructed or repaired by HII. The cases allege various injuries, including those associated with pleural plaque disease, asbestosis, cancer, mesothelioma and other alleged asbestos related conditions. In some cases, several of HII's former executive officers are also named as defendants. In some instances, partial or full insurance coverage is available to the Company for its liability and that of its former executive officers. Although the Company believes the ultimate resolution of these cases will not have a material effect on its consolidated financial position, results of operations or cash flows, it cannot predict what new or revised claims or litigation might be asserted or what information might come to light and can, therefore, give no assurances regarding the ultimate outcome of asbestos related litigation. | |
Other Litigation - The Company and its predecessor-in-interest have been in litigation with the Bolivarian Republic of Venezuela (the “Republic”) since 2002 over a contract for the repair, refurbishment and modernization at Ingalls of two foreign-built frigates. The case proceeded towards arbitration, then appeared to settle favorably, but the settlement was overturned in court and the matter returned to litigation. In March 2014, the Company filed an arbitral statement of claim asserting breaches of the contract and $173 million in damages plus substantial interest and litigation expenses. In July 2014, the Republic filed in the arbitration a statement of defense denying all the Company’s allegations and a counterclaim alleging late redelivery of the frigates, unfinished work and breach of warranty and asserting damages of $61 million plus interest. An arbitration hearing was held in January 2015. No assurances can be provided regarding the ultimate outcome of this matter. | |
The Company is party to various claims and legal proceedings that arise in the ordinary course of business. Although the Company believes that the resolution of any of these various claims and legal proceedings will not have a material effect on its consolidated financial position, results of operations or cash flows, it cannot predict what new or revised claims or litigation might be asserted or what information might come to light and can, therefore, give no assurances regarding the ultimate outcome of these matters. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES | ||||
Contract Performance Contingencies - Contract profit margins may include estimates of revenues not contractually agreed to between the customer and the Company for matters such as settlements in the process of negotiation, contract changes, claims and requests for equitable adjustment for previously unanticipated contract costs. These estimates are based upon management's best assessment of the underlying causal events and circumstances, and are included in determining contract profit margins to the extent of expected recovery based on contractual entitlements and the probability of successful negotiation with the customer. As of December 31, 2014, the recognized amounts related to claims and requests for equitable adjustment are not material individually or in aggregate. | |||||
Guarantees of Performance Obligations - From time to time in the ordinary course of business, HII may enter into joint ventures, teaming and other business arrangements to support the Company's products and services. The Company generally strives to limit its exposure under these arrangements to its investment in the arrangement, or to the extent of obligations under the applicable contract. In some cases, however, HII may be required to guarantee performance of the arrangement's obligations and, in such cases, generally obtains cross-indemnification from the other members of the arrangement. As of December 31, 2014, the Company was not aware of any existing event of default that would require HII to satisfy any of these guarantees. | |||||
Environmental Matters - The estimated cost to complete environmental remediation has been accrued where it is probable that the Company will incur such costs in the future to address environmental conditions at currently or formerly owned or leased operating facilities, or at sites where it has been named a Potentially Responsible Party ("PRP") by the Environmental Protection Agency or similarly designated by another environmental agency, and the related costs can be estimated by management. These accruals do not include any litigation costs related to environmental matters, nor do they include amounts recorded as asset retirement obligations. To assess the potential impact on the Company's consolidated financial statements, management estimates the range of reasonably possible remediation costs that could be incurred by the Company, taking into account currently available facts on each site, as well as the current state of technology and prior experience in remediating contaminated sites. These estimates are reviewed periodically and adjusted to reflect changes in facts and technical and legal circumstances. Management estimates that as of December 31, 2014, the probable future cost for environmental remediation is $2 million, which is accrued in other current liabilities. Factors that could result in changes to the Company's estimates include: modification of planned remedial actions, increases or decreases in the estimated time required to remediate, changes to the determination of legally responsible parties, discovery of more extensive contamination than anticipated, changes in laws and regulations affecting remediation requirements, and improvements in remediation technology. Should other PRPs not pay their allocable share of remediation costs, the Company may incur costs exceeding those already estimated and accrued. In addition, there are certain potential remediation sites where the costs of remediation cannot be reasonably estimated. Although management cannot predict whether new information gained as projects progress will materially affect the estimated liability accrued, management does not believe that future remediation expenditures will have a material effect on the Company's consolidated financial position, results of operations or cash flows. | |||||
Financial Arrangements - In the ordinary course of business, HII uses standby letters of credit issued by commercial banks and surety bonds issued by insurance companies principally to support the Company's self-insured workers' compensation plans. As of December 31, 2014, the Company had $31 million in standby letters of credit issued but undrawn, as indicated in Note 14: Debt, and $358 million of surety bonds outstanding. | |||||
U.S. Government Claims - From time to time, the U.S. Government advises the Company of claims and penalties concerning certain potential disallowed costs. When such findings are presented, the Company and U.S. Government representatives engage in discussions to enable HII to evaluate the merits of these claims, as well as to assess the amounts being claimed. The Company does not believe that the outcome of any such matters will have a material effect on its consolidated financial position, results of operations, or cash flows. | |||||
Collective Bargaining Agreements - Of the Company's 38,000 employees, approximately 50% are covered by a total of 11 collective bargaining agreements. Newport News has three collective bargaining agreements covering represented employees, which expire in July 2017, August 2018 and December 2018. Newport News craft workers employed at the Kesselring Site near Saratoga Springs, New York are represented under an indefinite DOE site agreement. Ingalls has five collective bargaining agreements covering represented employees, all of which expire in March 2018. Craft employees at the Company's Waggaman, Louisiana location are covered by a collective bargaining agreement that will expire in June 2019. Approximately 90 craft employees of SN3 are represented under two collective bargaining agreements, which expire in February 2015 and September 2017, or under a DOE site agreement for those working at the Hanford, Washington site. | |||||
Collective bargaining agreements generally expire after three to five years and are subject to renegotiation at that time. The Company does not expect the results of these negotiations, either individually or in the aggregate, to have a material effect on the Company's consolidated results of operations. | |||||
Purchase Obligations - Periodically the Company enters into agreements to purchase goods or services that are enforceable and legally binding on it and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. These amounts are primarily comprised of open purchase order commitments to vendors and subcontractors pertaining to funded contracts. | |||||
Operating Leases - Rental expense for operating leases for the years ended December 31, 2014, 2013 and 2012, was $53 million, $46 million and $45 million, respectively. These amounts are net of immaterial amounts of sublease rental income. Minimum rental commitments under long-term non-cancellable operating leases for each of the years 2015 through 2019 and thereafter are: | |||||
($ in millions) | |||||
2015 | $ | 34 | |||
2016 | 30 | ||||
2017 | 23 | ||||
2018 | 20 | ||||
2019 | 16 | ||||
Thereafter | 39 | ||||
Total | $ | 162 | |||
Impacts_From_Hurricanes
Impacts From Hurricanes | 12 Months Ended |
Dec. 31, 2014 | |
Extraordinary and Unusual Items [Abstract] | |
Impacts From Hurricanes | IMPACTS FROM HURRICANES |
In August 2005, the Company's Ingalls operations were significantly impacted by Hurricane Katrina, and the Company's shipyards in Louisiana and Mississippi sustained significant windstorm damage from the hurricane. As a result of the storm, the Company incurred costs to replace or repair destroyed or damaged assets, suffered losses under its contracts, and incurred substantial costs to clean up and recover its operations. At the time of the storm, the Company had an insurance program that provided coverage for, among other things, property damage, business interruption impact on net profitability, and costs associated with clean-up and recovery. The Company recovered a portion of its Hurricane Katrina claim from certain of its participating program insurers in prior periods. In 2013, the Company resolved litigation against its remaining insurer, Factory Mutual Insurance Company ("FM Global"), arising out of a disagreement concerning the coverage of certain losses related to Hurricane Katrina. Under the settlement agreement with FM Global, in the third quarter of 2013 FM Global made a cash payment of $180 million to the Company and the Company agreed to release its claim against FM Global, resulting in a total recovery from the Company's insurers of $677.5 million for its Hurricane Katrina claim. The $180 million was recorded as an insurance recovery gain in operating income in the third quarter of 2013. | |
In February 2013, the Company submitted a certified claim requesting a final decision on the allowability and allocability of certain post-Katrina depreciation and other Katrina-related expenses and on the apportionment of insurance proceeds. In October 2013, the Company received a Contracting Officer's Final Decision ("COFD") disallowing certain post-Katrina depreciation costs and other Katrina-related expenses, as well as providing direction on the apportionment of Katrina-related insurance recoveries. Impacted by this decision, the Company’s accounting for hurricane insurance related matters resulted in a reduction in operating income of $116 million. The 2013 financial results reflect disallowances as indicated in the COFD. | |
For the year ended December 31, 2013, the Company’s accounting for hurricane related matters, including the insurance recovery gain of $180 million and the $116 million reduction in operating income related to its contracts with the U.S. Government, resulted in a net favorable impact to operating income of $64 million. | |
In October 2014, the Company executed a Memorandum of Understanding ("MOU") with the U.S. Navy and U.S. Coast Guard acknowledging the requirements set forth in the COFD. The MOU did not have a material impact on the Company's accounting for hurricane related matters. | |
In January 2011, the Company, through a predecessor-in-interest, filed suit in Superior Court in California against Aon Risk Insurance Services West, Inc. ("Aon"), which acted as broker to the predecessor-in-interest in connection with the policy with FM Global, seeking damages for breach of contract, professional negligence and negligent misrepresentation, as well as declaratory relief. Those damages include over $200 million in damages unrecovered from FM Global plus costs, legal fees and expenses incurred in the lawsuit against FM Global, as well as interest. In January 2014, the Company amended its complaint to allege fraud and seek punitive damages. No assurances can be provided as to the ultimate outcome of the matter. If, however, the claims are successful, the potential impact to the Company's consolidated financial position, results of operations and cash flows would be favorable. |
Employee_Pension_And_Other_Pos
Employee Pension And Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Employee Pension and Other Postretirement Benefits | EMPLOYEE PENSION AND OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||||||||||||||||||
The Company provides defined benefit pension and postretirement benefit plans and defined contribution pension benefit plans to eligible employees. Plan obligations are measured based on the present value of projected future benefit payments to participants for services rendered to date. The measurement of projected future benefits is dependent on the terms of each individual plan, demographics, and valuation assumptions. No assumption is made regarding any potential changes to the benefit provisions beyond those to which the Company is currently committed, for example under existing collective bargaining agreements. | |||||||||||||||||||||||||||||||||
Benefits accruing under the traditional years of service and compensation formula were grandfathered and, since 2009, have been replaced with a cash balance feature. Except for major collectively bargained plans, our qualified defined benefit pension plans are frozen to new entrants. The Company's policy is to fund its qualified defined benefit pension plans at least to the minimum amounts required under U.S. Government regulations. | |||||||||||||||||||||||||||||||||
The Company sponsors 401(k) defined contribution plans in which most employees, including certain union employees, are eligible to participate. Company contributions for most defined contribution plans are based on the matching of employee contributions up to 4% of eligible compensation. Certain hourly employees are covered under a target benefit plan. In addition to the 401(k) defined contribution benefit formula, non-union represented employees hired after June 30, 2008, are eligible to participate in a defined contribution program in lieu of a defined benefit pension plan. The Company's contributions to the qualified defined contribution plans for the years ended December 31, 2014, 2013 and 2012, were $70 million, $61 million and $56 million, respectively. | |||||||||||||||||||||||||||||||||
The Company provides supplemental pension plans for certain officers. The related liability was $142 million and $104 million as of December 31, 2014 and 2013, respectively. Certain of these plans are funded through rabbi trusts. | |||||||||||||||||||||||||||||||||
The Company provides contributory postretirement health care and life insurance benefits to a dominantly closed group of eligible employees, retirees, and their qualifying dependents. Covered employees achieve eligibility to participate in these contributory plans upon retirement from active service if they meet specified age, years of service, and grandfathered requirements. Benefits are not guaranteed, and the Company reserves the right to amend or terminate coverage at any time. The Company's contributions for health care benefits are subject to caps, which limit Company contributions when spending thresholds are reached. | |||||||||||||||||||||||||||||||||
The measurement date for all of the Company's retirement plans is December 31. The cost of the Company's defined benefit plans and other postretirement plans for the years ended December 31, 2014, 2013 and 2012, was as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Year Ended December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||
Service cost | $ | 136 | $ | 147 | $ | 133 | $ | 13 | $ | 21 | $ | 15 | |||||||||||||||||||||
Interest cost | 253 | 215 | 212 | 30 | 33 | 40 | |||||||||||||||||||||||||||
Expected return on plan assets | (322 | ) | (289 | ) | (267 | ) | — | — | — | ||||||||||||||||||||||||
Amortization of prior service cost (credit) | 19 | 18 | 12 | (26 | ) | (21 | ) | (7 | ) | ||||||||||||||||||||||||
Amortization of net actuarial loss (gain) | 52 | 118 | 77 | — | 16 | 13 | |||||||||||||||||||||||||||
Curtailments | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 138 | $ | 208 | $ | 167 | $ | 17 | $ | 49 | $ | 61 | |||||||||||||||||||||
The funded status of the Company's plans as of December 31, 2014 and 2013, was as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 4,730 | $ | 5,061 | $ | 616 | $ | 965 | |||||||||||||||||||||||||
Service cost | 136 | 147 | 13 | 21 | |||||||||||||||||||||||||||||
Interest cost | 253 | 215 | 30 | 33 | |||||||||||||||||||||||||||||
Plan participants' contributions | 26 | 9 | 7 | 18 | |||||||||||||||||||||||||||||
Plan amendments | — | 66 | — | (145 | ) | ||||||||||||||||||||||||||||
Actuarial loss (gain) | 714 | (600 | ) | 24 | (220 | ) | |||||||||||||||||||||||||||
Benefits paid | (168 | ) | (154 | ) | (40 | ) | (59 | ) | |||||||||||||||||||||||||
Curtailments | (20 | ) | (14 | ) | — | — | |||||||||||||||||||||||||||
Medicare Part D subsidy | — | — | — | 3 | |||||||||||||||||||||||||||||
Benefit obligation at end of year | 5,671 | 4,730 | 650 | 616 | |||||||||||||||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 4,310 | 3,745 | — | — | |||||||||||||||||||||||||||||
Gain on plan assets | 437 | 405 | — | — | |||||||||||||||||||||||||||||
Employer contributions | 126 | 305 | 33 | 38 | |||||||||||||||||||||||||||||
Plan participants' contributions | 26 | 9 | 7 | 18 | |||||||||||||||||||||||||||||
Benefits paid | (168 | ) | (154 | ) | (40 | ) | (59 | ) | |||||||||||||||||||||||||
Medicare Part D subsidy | — | — | — | 3 | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | 4,731 | 4,310 | — | — | |||||||||||||||||||||||||||||
Funded status | $ | (940 | ) | $ | (420 | ) | $ | (650 | ) | $ | (616 | ) | |||||||||||||||||||||
Amounts Recognized in the Consolidated Statements of Financial Position: | |||||||||||||||||||||||||||||||||
Pension plan assets | $ | 17 | $ | 124 | $ | — | $ | — | |||||||||||||||||||||||||
Current liability (1) | (18 | ) | (15 | ) | (143 | ) | (139 | ) | |||||||||||||||||||||||||
Non-current liability (2) | (939 | ) | (529 | ) | (507 | ) | (477 | ) | |||||||||||||||||||||||||
Accumulated other comprehensive loss (income) (pre-tax) related to: | |||||||||||||||||||||||||||||||||
Prior service costs (credits) | 105 | 124 | (125 | ) | (152 | ) | |||||||||||||||||||||||||||
Net actuarial loss (gain) | 1,374 | 847 | 73 | 50 | |||||||||||||||||||||||||||||
(1) | Included in other current liabilities and current portion of postretirement plan liabilities, respectively. | ||||||||||||||||||||||||||||||||
-2 | Included in pension plan liabilities and other postretirement plan liabilities, respectively. | ||||||||||||||||||||||||||||||||
The Projected Benefit Obligation ("PBO"), Accumulated Benefit Obligation ("ABO"), and asset values for the Company's qualified pension plans were $5,529 million, $5,124 million, and $4,731 million, respectively, as of December 31, 2014, and $4,626 million, $4,202 million, and $4,310 million, respectively, as of December 31, 2013. The PBO represents the present value of pension benefits earned through the end of the year, with allowance for future salary increases. The ABO is similar to the PBO, but does not provide for future salary increases. | |||||||||||||||||||||||||||||||||
The PBO and fair value of plan assets for all qualified and non-qualified pension plans with PBOs in excess of plan assets were $4,394 million and $3,438 million, respectively, as of December 31, 2014, and $3,633 million and $3,088 million, respectively, as of December 31, 2013. | |||||||||||||||||||||||||||||||||
The ABO and fair value of plan assets for all qualified and non-qualified pension plans with ABOs in excess of plan assets were $3,981 million and $3,438 million, respectively, as of December 31, 2014, and $1,581 million and $1,444 million, respectively, as of December 31, 2013. The ABO for all pension plans was $5,244 million and $4,294 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
The changes in amounts recorded in accumulated other comprehensive income (loss) are as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Year Ended December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Prior service cost (credit) | $ | — | $ | (66 | ) | $ | — | $ | — | $ | 145 | $ | 11 | ||||||||||||||||||||
Amortization of prior service cost (credit) | 19 | 18 | 12 | (26 | ) | (21 | ) | (7 | ) | ||||||||||||||||||||||||
Net actuarial loss (gain) | (599 | ) | 716 | (599 | ) | (24 | ) | 220 | (118 | ) | |||||||||||||||||||||||
Amortization of net actuarial loss (gain) | 52 | 118 | 77 | — | 16 | 13 | |||||||||||||||||||||||||||
Other | 20 | 12 | 7 | — | 1 | (1 | ) | ||||||||||||||||||||||||||
Total changes in accumulated other comprehensive income (loss) | $ | (508 | ) | $ | 798 | $ | (503 | ) | $ | (50 | ) | $ | 361 | $ | (102 | ) | |||||||||||||||||
The amounts included in accumulated other comprehensive income (loss) as of December 31, 2014, expected to be recognized as components of net periodic expense in 2015 are as follows: | |||||||||||||||||||||||||||||||||
($ in millions) | Pension Benefits | Other | |||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||
Prior service cost (credit) | $ | 19 | $ | (20 | ) | ||||||||||||||||||||||||||||
Net loss | 86 | 3 | |||||||||||||||||||||||||||||||
Total | $ | 105 | $ | (17 | ) | ||||||||||||||||||||||||||||
Health Care Cost Trend Rate - The health care cost trend rate represents the annual rates of change in the cost of health care benefits based on estimates of health care inflation, changes in health care utilization or delivery patterns, technological advances, government mandated benefits, and other considerations. Using a combination of market expectations and economic projections, including the effect of health care reform, on December 31, 2014, the Company selected an expected initial health care cost trend rate of 7.00% and an ultimate health care cost trend rate of 5.00% to be reached in 2023. On December 31, 2013, the Company assumed an expected initial health care cost trend rate of 7.33% and an ultimate health care cost trend rate of 5.00% to be reached in 2022. | |||||||||||||||||||||||||||||||||
The weighted average assumptions used to determine the net periodic benefit costs were as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Cost for the Year Ended December 31: | |||||||||||||||||||||||||||||||||
Discount rate | 5.27 | % | 4.27 | % | 5.23 | % | |||||||||||||||||||||||||||
Expected long-term rate on plan assets | 7.5 | % | 7.5 | % | 8 | % | |||||||||||||||||||||||||||
Rate of compensation increase | 3.69 | % | 3.66 | % | 3.64 | % | |||||||||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Cost for the Year Ended December 31: | |||||||||||||||||||||||||||||||||
Discount rate | 5.03 | % | 4.02 | % | 4.94 | % | |||||||||||||||||||||||||||
Initial health care cost trend rate assumed for next year | 7.33 | % | 7.67 | % | 8 | % | |||||||||||||||||||||||||||
Gradually declining to a rate of | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||||||
Year in which the rate reaches the ultimate rate | 2022 | 2021 | 2018 | ||||||||||||||||||||||||||||||
The weighted average assumptions used to determine the benefit obligations were as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Obligations at December 31: | |||||||||||||||||||||||||||||||||
Discount rate | 4.34 | % | 5.27 | % | 4.22 | % | 5.03 | % | |||||||||||||||||||||||||
Rate of compensation increase | 3.64 | % | 3.69 | % | |||||||||||||||||||||||||||||
Initial health care cost trend rate assumed for next year | 7 | % | 7.33 | % | |||||||||||||||||||||||||||||
Gradually declining to a rate of | 5 | % | 5 | % | |||||||||||||||||||||||||||||
Year in which the rate reaches the ultimate rate | 2023 | 2022 | |||||||||||||||||||||||||||||||
A one percent change in the assumed health care cost trend rates would have the following effects on 2014 results: | |||||||||||||||||||||||||||||||||
1 Percentage Point | |||||||||||||||||||||||||||||||||
($ in millions) | Increase | Decrease | |||||||||||||||||||||||||||||||
Effect on postretirement benefit expense | $ | 3 | $ | (2 | ) | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligations | 28 | (27 | ) | ||||||||||||||||||||||||||||||
The Employee Retirement Income Security Act of 1974 ("ERISA"), including amendments under pension relief, defines the minimum amount that must be contributed to the Company's qualified defined benefit pension plans. In determining whether to make discretionary contributions to these plans above the minimum required amounts, the Company considers various factors, including attainment of the funded percentage needed to avoid benefit restrictions and other adverse consequences, minimum CAS funding requirements, and the current and anticipated future funding levels of each plan. The Company's contributions to its qualified defined benefit pension plans are affected by a number of factors, including published IRS interest rates, the actual return on plan assets, actuarial assumptions, and demographic experience. These factors and the Company's resulting contributions also impact the plans' funded status. If the IRS publishes updated mortality tables for funding purposes, the Company’s pension contributions could be affected. The Company made the following minimum and discretionary contributions to its pension and other postretirement plans in the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Pension plans | |||||||||||||||||||||||||||||||||
Qualified minimum | $ | — | $ | — | $ | 64 | |||||||||||||||||||||||||||
Discretionary | |||||||||||||||||||||||||||||||||
Qualified | 123 | 301 | 172 | ||||||||||||||||||||||||||||||
Non-qualified | 3 | 4 | 3 | ||||||||||||||||||||||||||||||
Other benefit plans | 33 | 38 | 31 | ||||||||||||||||||||||||||||||
Total contributions | $ | 159 | $ | 343 | $ | 270 | |||||||||||||||||||||||||||
For the year ending December 31, 2015, the Company expects its cash contributions to its qualified defined benefit pension plans to be $99 million, all of which will be discretionary. For the year ending December 31, 2015, the Company expects its cash contributions to its postretirement benefit pension plans to be approximately $36 million. | |||||||||||||||||||||||||||||||||
In March 2013, the Company concluded negotiations on one of its collective bargaining agreements, which required an amendment to one of the Company's pension plans. As a result of the amendment, the remeasurement of the plan increased the pension liability and pre-tax accumulated other comprehensive loss by approximately $30 million. | |||||||||||||||||||||||||||||||||
In May 2013, the Company amended its postretirement benefit plans for salaried post-65 participants, which replaced a Company-sponsored indemnity plan with coverage offered through a third-party vendor and permanently capped the Company's contributions. As a result of the amendment, the remeasurement of the plans decreased the postretirement liability and pre-tax accumulated other comprehensive loss by approximately $177 million. | |||||||||||||||||||||||||||||||||
The following table presents estimated future benefit payments, using the same assumptions used in determining the Company's benefit obligations as of December 31, 2014. Benefit payments depend on future employment and compensation levels, years of service, and mortality. Changes in any of these factors could significantly affect these estimated amounts. | |||||||||||||||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||||||||||
($ in millions) | Pension Benefits | Benefit Payments | Subsidy Receipts | ||||||||||||||||||||||||||||||
2015 | $ | 181 | $ | 36 | $ | — | |||||||||||||||||||||||||||
2016 | 197 | 38 | — | ||||||||||||||||||||||||||||||
2017 | 214 | 40 | — | ||||||||||||||||||||||||||||||
2018 | 232 | 42 | — | ||||||||||||||||||||||||||||||
2019 | 251 | 44 | — | ||||||||||||||||||||||||||||||
Years 2020 to 2024 | $ | 1,563 | $ | 243 | $ | 2 | |||||||||||||||||||||||||||
Pension Plan Assets | |||||||||||||||||||||||||||||||||
Pension assets include public equities, government and corporate bonds, cash and cash equivalents, private real estate funds, hedge funds, and other assets. Plan assets are held in a master trust and overseen by the Company's Investment Committee. All assets are externally managed through a combination of active and passive strategies. Managers may only invest in the asset classes for which they have been appointed. | |||||||||||||||||||||||||||||||||
The Investment Committee is responsible for setting the policy that provides the framework for management of the plan assets. The plans' Investment Committee has set the minimum and maximum permitted values for each asset class in the Company's pension plan master trust for the year ended December 31, 2014, as follows: | |||||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||||
U.S. equities | 20 | - | 42% | ||||||||||||||||||||||||||||||
International equities | 15 | - | 33% | ||||||||||||||||||||||||||||||
Fixed income securities | 25 | - | 50% | ||||||||||||||||||||||||||||||
Alternative investments | 5 | - | 15% | ||||||||||||||||||||||||||||||
The general objectives of the Company's pension asset strategy are to earn a rate of return over time to satisfy the benefit obligations of the plans, meet minimum ERISA funding requirements, and maintain sufficient liquidity to pay benefits and address other cash requirements within the master trust. Specific investment objectives include reducing the volatility of pension assets relative to benefit obligations, achieving a competitive, total investment return, achieving diversification between and within asset classes, and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified. Decisions regarding investment policies and asset allocation are made with the understanding of the historical and prospective return and risk characteristics of various asset classes, the effect of asset allocations on funded status, future Company contributions, and projected expenditures, including benefits. The Company updates its asset allocations periodically. The Company uses various analytics to determine the optimal asset mix and considers plan obligation characteristics, duration, liquidity characteristics, funding requirements, expected rates of return, regular rebalancing, and the distribution of returns. Actual allocations to each asset class could vary from target allocations due to periodic investment strategy changes, short-term market value fluctuations, the length of time it takes to fully implement investment allocation positions, such as real estate and other alternative investments, and the timing of benefit payments and Company contributions. | |||||||||||||||||||||||||||||||||
Taking into account the asset allocation ranges, the investment fiduciary determines the specific allocation of the master trust's investments within various asset classes. The master trust utilizes select investment strategies, which are executed through separate account or fund structures with external investment managers who demonstrate experience and expertise in the appropriate asset classes and styles. The selection of investment managers is done with careful evaluation of all aspects of performance and risk, demonstrated fiduciary responsibility, investment management experience, and a review of the investment managers' policies and processes. Investment performance is monitored frequently against appropriate benchmarks and tracked to compliance guidelines with the assistance of third party consultants and performance evaluation tools and metrics. | |||||||||||||||||||||||||||||||||
Plan assets are stated at fair value. The Company employs a variety of pricing sources to estimate the fair value of its pension plan assets, including independent pricing vendors, dealer or counterparty-supplied valuations, third-party appraisals, appraisals prepared by the Company's investment managers, or other experts. | |||||||||||||||||||||||||||||||||
Investments in equity securities, common and preferred, are valued at the last reported sales price when an active market exists. Securities for which official or last trade pricing on an active exchange is available are classified as Level 1. If closing prices are not available, securities are valued at the last trade price, if deemed reasonable, or a broker's quote in a non-active market, and are typically categorized as Level 2. | |||||||||||||||||||||||||||||||||
Investments in fixed-income securities are generally valued by independent pricing services or dealers who make markets in such securities. Pricing methods are based upon market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders and typically are categorized as Level 2. | |||||||||||||||||||||||||||||||||
Investments in collective trust and commingled funds are estimated at fair value, which primarily utilizes Net Asset Values ("NAV") or the equivalent, which are based on the assets and liabilities of the underlying investments, as reported by the investment manager. The underlying investments are valued based on observable inputs. Accordingly, collective trust and commingled funds are categorized as Level 2. | |||||||||||||||||||||||||||||||||
Investments in hedge funds generally do not have readily available market quotations and are estimated at fair value, which primarily utilizes NAV or the equivalent, as a practical expedient, as reported by the investment manager. Hedge funds usually have restrictions on redemptions that might affect the ability to sell the investment at NAV or its equivalent in the short term, and redemption might lag by up to 12 months. Accordingly, these investments are typically classified as Level 3. | |||||||||||||||||||||||||||||||||
Real estate funds are typically valued through updated independent third-party appraisals, which are adjusted for changes in cash flows, market conditions, property performance, and leasing status. Since real estate funds do not have readily available market quotations, they are generally valued at NAV or its equivalent, as a practical expedient, as reported by the asset manager. Redemptions from real estate funds are also subject to various restrictions. Accordingly, these investments are classified as Level 3. | |||||||||||||||||||||||||||||||||
Management reviews independently appraised values, audited financial statements, and additional pricing information to evaluate the net asset values. For the very limited group of investments for which market quotations are not readily available or for which the above valuation procedures are deemed not to reflect fair value, additional information is obtained from the investment manager and evaluated internally to determine whether any adjustments are required to reflect fair value. | |||||||||||||||||||||||||||||||||
The Company might be unable to quickly liquidate some assets at amounts close or equal to fair value in order to meet the plans' liquidity requirements or respond to specific events such as the creditworthiness of any particular issuer or counterparty. Illiquid assets are generally long-term investments that complement the long-term nature of the Company's pension obligations and are generally not used to fund benefit payments in the short term. Management monitors liquidity risk on an ongoing basis and has procedures designed to maintain flexibility in troubled markets. | |||||||||||||||||||||||||||||||||
The master trust has considerable investments in fixed income securities for which changes in the relevant interest rate of a particular instrument might result in the inability to secure similar returns upon the maturity or sale. Changes in prevailing interest rates might result in an increase or decrease in fair value of the instrument. Investment managers are permitted to use interest rate swaps and other financial derivatives to manage interest rate risk. | |||||||||||||||||||||||||||||||||
Counterparty risk is the risk that a counterparty to a financial instrument held by the master trust will default on its commitment. Counterparty risk is generally related to over-the-counter derivative instruments used to manage risk exposure to interest rates on long-term debt securities. Certain agreements with counterparties employ set-off agreements, collateral support arrangements, and other risk mitigation practices designed to reduce the net credit risk exposure in the event of a counterparty default. Credit policies and processes are in place to manage concentrations of risk by seeking to undertake transactions with large well-capitalized counterparties and by monitoring the creditworthiness of these counterparties. | |||||||||||||||||||||||||||||||||
The fair value of the Company's retirement plan assets by asset category and by valuation hierarchy Level as described in Note 2: Summary of Significant Accounting Policies were as follows: | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
($ in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||
U.S. equities (1) | $ | 1,423 | $ | 467 | $ | 956 | $ | — | |||||||||||||||||||||||||
International equities (1) | 1,082 | 599 | 483 | — | |||||||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||||||||||
U.S. government | 237 | — | 237 | — | |||||||||||||||||||||||||||||
U.S. agency | 174 | — | 174 | — | |||||||||||||||||||||||||||||
Non-U.S. government | 88 | — | 88 | — | |||||||||||||||||||||||||||||
Investment grade (2) | 1,041 | — | 1,041 | — | |||||||||||||||||||||||||||||
Asset backed | 52 | — | 52 | — | |||||||||||||||||||||||||||||
Non-investment grade (3) | 45 | — | 45 | — | |||||||||||||||||||||||||||||
Cash and cash equivalents (4) | 42 | 5 | 37 | — | |||||||||||||||||||||||||||||
Hedge funds | 298 | — | — | 298 | |||||||||||||||||||||||||||||
Real estate fund | 247 | — | — | 247 | |||||||||||||||||||||||||||||
Other (5) | 2 | — | 2 | — | |||||||||||||||||||||||||||||
Total assets at fair value | $ | 4,731 | $ | 1,071 | $ | 3,115 | $ | 545 | |||||||||||||||||||||||||
(1) | U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in separately managed accounts or commingled trust funds. | ||||||||||||||||||||||||||||||||
-2 | Investment grade fixed income securities include corporate bonds rated Baa3/BBB- or higher by one or more rating agencies. | ||||||||||||||||||||||||||||||||
-3 | Non-investment grade fixed income securities include corporate bonds consistently rated below Baa3/BBB- by one or more rating agencies and a high yield commingled fund. | ||||||||||||||||||||||||||||||||
-4 | Cash and cash equivalents are highly liquid short-term investment funds and include net receivables and payables of the trust. These funds are available for immediate use to fund daily operations, execute investment policies, and serve as a temporary investment vehicle. The Company's plan asset allocation policy does not include cash. | ||||||||||||||||||||||||||||||||
-5 | Other investments include swaps, options, and insurance contracts. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
($ in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||
U.S. equities (1) | $ | 1,546 | $ | 249 | $ | 1,297 | $ | — | |||||||||||||||||||||||||
International equities (1) | 860 | 382 | 478 | — | |||||||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||||||||||
U.S. government | 156 | — | 156 | — | |||||||||||||||||||||||||||||
U.S. agency | 180 | — | 180 | — | |||||||||||||||||||||||||||||
Non-U.S. government | 66 | — | 66 | — | |||||||||||||||||||||||||||||
Investment grade (2) | 871 | — | 871 | — | |||||||||||||||||||||||||||||
Asset backed | 65 | — | 65 | — | |||||||||||||||||||||||||||||
Non-investment grade (3) | 39 | — | 39 | — | |||||||||||||||||||||||||||||
Cash and cash equivalents (4) | 75 | 2 | 73 | — | |||||||||||||||||||||||||||||
Hedge funds | 257 | — | — | 257 | |||||||||||||||||||||||||||||
Real estate fund | 188 | — | — | 188 | |||||||||||||||||||||||||||||
Other (5) | 7 | — | 7 | — | |||||||||||||||||||||||||||||
Total assets at fair value | $ | 4,310 | $ | 633 | $ | 3,232 | $ | 445 | |||||||||||||||||||||||||
(1) | U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in separately managed accounts or commingled trust funds. | ||||||||||||||||||||||||||||||||
-2 | Investment grade fixed income securities include corporate bonds rated Baa3/BBB- or higher by one or more rating agencies. | ||||||||||||||||||||||||||||||||
-3 | Non-investment grade fixed income securities include corporate bonds consistently rated below Baa3/BBB- by one or more rating agencies and a high yield commingled fund. | ||||||||||||||||||||||||||||||||
-4 | Cash and cash equivalents are highly liquid short-term investment funds and include net receivables and payables of the trust. These funds are available for immediate use to fund daily operations, execute investment policies, and serve as a temporary investment vehicle. The Company's plan asset allocation policy does not include cash. | ||||||||||||||||||||||||||||||||
-5 | Other investments include swaps, options, collateral, and insurance contracts. | ||||||||||||||||||||||||||||||||
The master trust limits the use of derivatives through direct or separate account investments, such that the derivatives used are liquid and able to be readily valued in the market. Derivative usage in separate account structures is limited to hedging purposes or to gain market exposure in a non-speculative manner. The net fair market value of the master trust's derivatives through direct or separate account investments was less than $1 million and $4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
The following tables summarize the changes in Level 3 retirement plan assets measured at fair value for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
Return on plan assets | |||||||||||||||||||||||||||||||||
Attributable to Assets Held at December 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value at December 31, 2013 | Attributable to Assets Sold | Transfers | Fair Value at December 31, 2014 | ||||||||||||||||||||||||||||||
Into | (Out) of | ||||||||||||||||||||||||||||||||
($ in millions) | Purchases | Sales | Level 3 | Level 3 | |||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 257 | $ | 19 | $ | — | $ | 22 | $ | — | $ | — | $ | — | $ | 298 | |||||||||||||||||
Real estate fund | 188 | 24 | — | 35 | — | — | — | 247 | |||||||||||||||||||||||||
Total Level 3 fair value | $ | 445 | $ | 43 | $ | — | $ | 57 | $ | — | $ | — | $ | — | $ | 545 | |||||||||||||||||
Return on plan assets | |||||||||||||||||||||||||||||||||
Attributable to Assets Held at December 31, 2013 | |||||||||||||||||||||||||||||||||
Fair Value at December 31, 2012 | Attributable to Assets Sold | Transfers | Fair Value at December 31, 2013 | ||||||||||||||||||||||||||||||
Into | (Out) of | ||||||||||||||||||||||||||||||||
($ in millions) | Purchases | Sales | Level 3 | Level 3 | |||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 181 | $ | 16 | $ | — | $ | 60 | $ | — | $ | — | $ | — | $ | 257 | |||||||||||||||||
Real estate fund | 162 | 26 | — | — | — | — | — | 188 | |||||||||||||||||||||||||
Total Level 3 fair value | $ | 343 | $ | 42 | $ | — | $ | 60 | $ | — | $ | — | $ | — | $ | 445 | |||||||||||||||||
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock Compensation Plans | STOCK COMPENSATION PLANS | |||||||||||||
As of December 31, 2014, HII had stock-based compensation awards outstanding under the following plans: the Huntington Ingalls Industries, Inc. 2011 Long-Term Incentive Stock Plan (the "2011 Plan") and the Huntington Ingalls Industries, Inc. 2012 Long-Term Incentive Stock Plan (the "2012 Plan"). | ||||||||||||||
Stock Compensation Plans | ||||||||||||||
On March 23, 2012, the Company's board of directors adopted the 2012 Plan, subject to stockholder approval, and the Company's stockholders approved the 2012 Plan on May 2, 2012. The 2012 award grants made on or after May 2, 2012, were made under the 2012 Plan. The 2012 award grants made prior to May 2, 2012, were made under the 2011 Plan. No future grants will be made under the 2011 Plan. | ||||||||||||||
The 2012 Plan permits awards of stock options, stock appreciation rights, and other stock awards. Each stock option grant is made with an exercise price of not less than 100% of the closing price of HII's common stock on the date of grant. Stock awards, in the form of RPSRs and RSRs, are granted to key employees and members of the board of directors without payment to the Company. The fair value of the performance-based stock awards is determined based on the closing market price of HII's common stock on the grant date. For purposes of measuring compensation expense, the number of shares ultimately expected to vest is estimated at each reporting date based on management's expectations regarding the relevant performance and/or service criteria. The 2012 Plan authorized (i) 3.4 million new shares; plus (ii) any shares subject to outstanding awards under the 2011 Plan that are subsequently forfeited to the Company; plus (iii) any shares subject to outstanding awards under the 2011 Plan that are subsequently exchanged by the participant as full or partial payment to the Company in connection with any such award or exchanged by a participant or withheld by the Company to satisfy the tax withholding obligations related to any such award. As of December 31, 2014, the remaining aggregate number of shares of the Company's common stock authorized for issuance under the 2012 Plan was 4.1 million. | ||||||||||||||
The 2011 Plan permitted the awards of stock options, stock appreciation rights, and other stock awards. Each stock option grant was made with an exercise price of not less than 100% of the closing price of HII's common stock on the date of grant, with the exception of options issued at the time of the spin-off in exchange for Northrop Grumman stock options. Stock awards, in the form of RPSRs and RSRs, were granted to key employees and members of the board of directors without payment to the Company. The fair value of the performance-based stock awards was determined based on the closing market price of HII's common stock on the grant date. For purposes of measuring compensation expense, the number of shares ultimately expected to vest is estimated at each reporting date based on management's expectations regarding the relevant performance and/or service criteria. | ||||||||||||||
The Company issued the following awards in the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||
Restricted Performance Stock Rights - For the year ended December 31, 2014, the Company granted approximately 0.2 million RPSRs at a weighted average share price of $98.22. These rights are subject to cliff vesting on December 31, 2016. For the year ended December 31, 2013, the Company granted approximately 0.4 million RPSRs at a weighted average share price of $44.67. These rights are subject to cliff vesting on December 31, 2015. For the year ended December 31, 2012, the Company granted approximately 0.6 million RPSRs at a weighted average share price of $34.71. These rights were fully vested as of December 31, 2014. All of the RPSRs are subject to the achievement of performance-based targets at the end of the respective vesting periods. Based upon the Company's results measured against such targets, between 0% and 200% of the original stated grant are expected to ultimately vest. | ||||||||||||||
Restricted Stock Rights - Retention stock awards are granted to key employees to ensure business continuity. In 2014, the Company granted approximately 12,000 restricted stock rights at a weighted average share price of $101.21, with cliff vesting three years from the grant date. As of December 31, 2014, approximately 11,000 of these restricted stock rights were outstanding. In connection with the spin-off, retention stock awards were granted to key employees to ensure a successful transition and business continuity. On March 31, 2011, the Company granted 0.7 million RSRs at a share price of $41.50, with cliff vesting three years from the grant date. As of December 31, 2013, 0.6 million of these RSRs were outstanding, and they were settled on April 3, 2014. | ||||||||||||||
For the year ended December 31, 2014, 1.5 million stock awards vested, of which approximately 0.6 million were transferred to the Company from employees in satisfaction of minimum tax withholding obligations. For the year ended December 31, 2013, 0.9 million stock awards vested, of which approximately 0.3 million were transferred to the Company from employees in satisfaction of minimum tax withholding obligations. For the year ended December 31, 2012, 0.9 million stock awards vested, of which approximately 0.3 million were transferred to the Company from employees in satisfaction of minimum tax withholding obligations. | ||||||||||||||
Stock Rights - The Company granted stock rights to its non-employee directors on a quarterly basis in 2014, with each grant less than 10,000 shares. All stock rights granted to non-employee directors are fully vested on the grant date. If a non-employee director owns shares of the Company’s common stock equal to at least five times the director’s annual cash retainer, the non-employee director may elect under the terms of the Directors’ Compensation Policy and Board Deferred Compensation Policy to receive their annual equity award for the following calendar year in the form of either shares of the Company’s common stock or stock units that are payable in the fifth calendar year after the year in which the annual equity award is earned, or, if earlier, upon termination of the director’s board service. The common stock or stock units are fully vested on the date of grant. | ||||||||||||||
Stock Awards | ||||||||||||||
Stock awards include RPSRs, RSRs, and stock rights. The fair value of stock awards is determined based on the closing market price of the Company's common stock on the grant date. Compensation expense for stock awards is measured based on the grant date fair value and recognized over the vesting period, generally three years. | ||||||||||||||
For purposes of measuring compensation expense, the amount of shares ultimately expected to vest is estimated at each reporting date based on management's expectations regarding the relevant service or performance criteria. | ||||||||||||||
The stock award activity for the years ended December 31, 2014, 2013 and 2012, was as follows: | ||||||||||||||
Stock Awards | Weighted-Average | Weighted | ||||||||||||
(in thousands) | Grant Date Fair | Average | ||||||||||||
Value | Remaining | |||||||||||||
Contractual Term | ||||||||||||||
Outstanding at December 31, 2011 | 2,090 | $ | 39.69 | 1.8 years | ||||||||||
Granted | 581 | 36.04 | ||||||||||||
Adjustment due to performance | 164 | 37.25 | ||||||||||||
Vested | (881 | ) | 37.27 | |||||||||||
Forfeited | (53 | ) | 40.01 | |||||||||||
Outstanding at December 31, 2012 | 1,901 | 39.92 | 1.4 years | |||||||||||
Granted | 456 | 46.51 | ||||||||||||
Adjustment due to performance | 315 | 41.41 | ||||||||||||
Vested | (931 | ) | 41.41 | |||||||||||
Forfeited | (68 | ) | 40.23 | |||||||||||
Outstanding at December 31, 2013 | 1,673 | 40.92 | 1.0 year | |||||||||||
Granted | 246 | 98.33 | ||||||||||||
Adjustment due to performance | 918 | 41.45 | ||||||||||||
Vested | (1,510 | ) | 41.45 | |||||||||||
Forfeited | (16 | ) | 45.19 | |||||||||||
Outstanding at December 31, 2014 | 1,311 | $ | 51.23 | 0.7 years | ||||||||||
Vested awards include stock awards that fully vest during the year based on the level of achievement of the relevant performance goals. The performance goals for outstanding RPSRs granted in 2014 and 2013 are based on two metrics as defined in the grant agreements: earnings before interest, taxes, depreciation, amortization, and pension weighted at 50% and pension-adjusted return on invested capital weighted at 50%. The performance goals for outstanding RPSRs granted in 2012 are based on two metrics as defined in the grant agreements: cumulative operating margin weighted at 50% and cumulative free cash flow weighted at 50%. | ||||||||||||||
Stock Options | ||||||||||||||
Effect of the Spin-Off - Prior to the spin-off, HII's current and former employees received options under Northrop Grumman's stock-based award plans (the "Northrop Grumman Plan"). As of the date of the spin-off, the options under the Northrop Grumman Plan were converted to options under the 2011 Plan. The conversion was effected so that the outstanding options held by the Company's current and former employees on the distribution date were adjusted to reflect the value of the distribution, such that the intrinsic value of the options was not diluted at the time of, and due to, the separation. This was achieved using the conversion rate included in the spin-off agreement. Unless otherwise stated, share amounts and share prices detailed below were retroactively adjusted to reflect the impact of the conversion. The Company measured the fair value of the options immediately before and after the conversion, and there was no incremental compensation expense associated with the conversion. | ||||||||||||||
The following is a description of the Northrop Grumman Plan options, which were converted into options under the 2011 Plan. | ||||||||||||||
Converted Stock Options - As of the date of the spin-off, outstanding options held by HII's current and former employees under the Northrop Grumman Plan were converted to options of HII under the 2011 Plan. Based on the conversion factor of 1.65, included in the spin-off agreement, approximately 1.0 million options in the Northrop Grumman Plan were converted into approximately 1.6 million options under the 2011 Plan, approximately 1.4 million of which were fully vested at the time of conversion. Outstanding stock options granted prior to 2008 generally vested in 25% increments over four years from the grant date and expire ten years after the grant date. Stock options granted in 2008 and later vested in 33% increments over three years from the grant date and expire seven years after the grant date. The cumulative intrinsic value of the options at conversion was maintained in the conversion, and totaled $15 million at March 31, 2011. | ||||||||||||||
Compensation expense for the outstanding converted stock options was determined at the time of grant by Northrop Grumman. No options were granted during the years ended December 31, 2014, 2013 and 2012. The fair value of the stock option awards is expensed on a straight-line basis over the vesting period of the options. The fair value of each of the stock option awards was estimated on the date of grant using a Black-Scholes option pricing model. | ||||||||||||||
The stock option activity for the years ended December 31, 2014, 2013 and 2012, was as follows: | ||||||||||||||
Shares Under | Weighted- | Weighted- Average | Aggregate | |||||||||||
Option | Average | Remaining | Intrinsic | |||||||||||
(in thousands) | Exercise Price | Contractual Term | Value | |||||||||||
(in years) | ($ in millions) | |||||||||||||
Outstanding at December 31, 2011 | 1,583 | $ | 33.27 | 2.9 years | $ | (3 | ) | |||||||
Exercised | (405 | ) | 33.04 | |||||||||||
Canceled and Forfeited | (12 | ) | 34.01 | |||||||||||
Outstanding at December 31, 2012 | 1,166 | 34.67 | 2.6 years | 12 | ||||||||||
Exercised | (346 | ) | 29.66 | |||||||||||
Canceled and Forfeited | (1 | ) | 28.51 | |||||||||||
Outstanding at December 31, 2013 | 819 | 35.01 | 2.1 years | 45 | ||||||||||
Exercised | (174 | ) | 31.11 | |||||||||||
Canceled and Forfeited | (1 | ) | 31.76 | |||||||||||
Outstanding at December 31, 2014 | 644 | $ | 36.06 | 1.4 years | $ | 49 | ||||||||
Vested at December 31, 2014 | 644 | $ | 36.06 | 1.4 years | $ | 49 | ||||||||
The intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012, was $12 million, $11 million and $3 million, respectively. Intrinsic value is measured using the fair market value at the date of exercise for options exercised or at period end for outstanding options, less the applicable exercise price. The Company issued new shares to satisfy exercised options. | ||||||||||||||
Compensation Expense | ||||||||||||||
The Company recorded $34 million, $44 million and $41 million of expense related to stock-based compensation for the years ended December 31, 2014, 2013 and 2012, respectively, of which $34 million, $44 million and $40 million, respectively, related to stock awards and $1 million for the year ended December 31, 2012, related to stock options. The Company recorded $13 million, $17 million and $16 million as a tax benefit related to stock-based compensation for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
The Company recognized tax benefits for the years ended December 31, 2014, 2013 and 2012, of $53 million, $32 million and $14 million, respectively, from the issuance of stock in settlement of RPSRs and RSRs, and $5 million, $4 million and $1 million for the years ended December 31, 2014, 2013 and 2012, respectively, from the exercise of stock options. | ||||||||||||||
Unrecognized Compensation Expense | ||||||||||||||
As of December 31, 2014, the Company had $1 million of unrecognized compensation expense associated with the RSRs granted in 2014, which will be recognized over a period of 2.4 years, and $21 million of unrecognized expense associated with the RPSRs granted in 2014, 2013, and 2012, which will be recognized over a weighted average period of 0.7 years. As of December 31, 2014, the Company had no unrecognized compensation expense related to stock option awards. Compensation expense for stock options was fully recognized as of December 31, 2013. |
Unaudited_Selected_Quarterly_D
Unaudited Selected Quarterly Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Unaudited Selected Quarterly Data | UNAUDITED SELECTED QUARTERLY DATA | ||||||||||||||||
Unaudited quarterly financial results for the years ended December 31, 2014 and 2013, are set forth in the following tables: | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
($ in millions, except per share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr(1) | |||||||||||||
Sales and service revenues | $ | 1,594 | $ | 1,719 | $ | 1,717 | $ | 1,927 | |||||||||
Operating income (loss) | 159 | 181 | 171 | 144 | |||||||||||||
Earnings (loss) before income taxes | 132 | 152 | 144 | 79 | |||||||||||||
Net earnings (loss) | 90 | 100 | 96 | 52 | |||||||||||||
Dividends declared per share | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.4 | |||||||||
Basic earnings (loss) per share | $ | 1.83 | $ | 2.05 | $ | 1.97 | $ | 1.07 | |||||||||
Diluted earnings (loss) per share | $ | 1.81 | $ | 2.04 | $ | 1.96 | $ | 1.05 | |||||||||
Year Ended December 31, 2013 | |||||||||||||||||
($ in millions, except per share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | |||||||||||||
Sales and service revenues | $ | 1,562 | $ | 1,683 | $ | 1,637 | $ | 1,938 | |||||||||
Operating income (loss) | 95 | 116 | 127 | 174 | |||||||||||||
Earnings (loss) before income taxes | 65 | 87 | 99 | 143 | |||||||||||||
Net earnings (loss) | 44 | 57 | 69 | 91 | |||||||||||||
Dividends declared per share | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||
Basic earnings (loss) per share | $ | 0.88 | $ | 1.14 | $ | 1.38 | $ | 1.86 | |||||||||
Diluted earnings (loss) per share | $ | 0.87 | $ | 1.12 | $ | 1.36 | $ | 1.82 | |||||||||
1 In the fourth quarter of 2014, the Company recorded a $47 million goodwill impairment charge. |
Subsidiary_Guarantors
Subsidiary Guarantors | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||
Subsidiary Guarantors | SUBSIDIARY GUARANTORS | ||||||||||||||||||||
Performance of the Company's obligations under the senior notes, including any repurchase obligations resulting from a change of control, is fully and unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of HII's existing and future domestic subsidiaries that guarantees debt under the Credit Facility. The guarantees rank equally with all other unsecured and unsubordinated indebtedness of the Subsidiary Guarantors. The Subsidiary Guarantors are each directly or indirectly 100% owned by HII. | |||||||||||||||||||||
Set forth below are the condensed consolidating statements of operations and comprehensive income for the years ended December 31, 2014 and 2013, condensed consolidating statements of financial position as of December 31, 2014, and December 31, 2013, and the condensed consolidating statements of cash flows for the years ended December 31, 2014 and 2013, for HII, its aggregated subsidiary guarantors and its aggregated non-guarantor subsidiaries. The Subsidiary Guarantors' net cash funding with HII has been corrected from its previous classification as net cash provided by (used in) financing activities to net cash provided by (used in) investing activities in the prior year condensed consolidating statements of cash flows. | |||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Sales and service revenues | |||||||||||||||||||||
Product sales | $ | — | $ | 5,712 | $ | — | $ | — | $ | 5,712 | |||||||||||
Service revenues | — | 1,202 | 63 | (20 | ) | 1,245 | |||||||||||||||
Total sales and service revenues | — | 6,914 | 63 | (20 | ) | 6,957 | |||||||||||||||
Cost of sales and service revenues | |||||||||||||||||||||
Cost of product sales | — | 4,489 | — | — | 4,489 | ||||||||||||||||
Cost of service revenues | — | 1,018 | 53 | (20 | ) | 1,051 | |||||||||||||||
Income (loss) from operating investments, net | — | 11 | — | — | 11 | ||||||||||||||||
General and administrative expenses | — | 718 | 8 | — | 726 | ||||||||||||||||
Goodwill impairment | — | 47 | — | — | 47 | ||||||||||||||||
Operating income (loss) | — | 653 | 2 | — | 655 | ||||||||||||||||
Interest expense | (142 | ) | (7 | ) | — | — | (149 | ) | |||||||||||||
Other income, net | 1 | — | — | — | 1 | ||||||||||||||||
Equity in earnings (loss) of subsidiaries | 433 | — | — | (433 | ) | — | |||||||||||||||
Earnings (loss) before income taxes | 292 | 646 | 2 | (433 | ) | 507 | |||||||||||||||
Federal income taxes | (46 | ) | 215 | — | — | 169 | |||||||||||||||
Net earnings (loss) | $ | 338 | $ | 431 | $ | 2 | $ | (433 | ) | $ | 338 | ||||||||||
Other comprehensive income (loss), net of tax | (341 | ) | (341 | ) | — | 341 | (341 | ) | |||||||||||||
Comprehensive income (loss) | $ | (3 | ) | $ | 90 | $ | 2 | $ | (92 | ) | $ | (3 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Sales and service revenues | |||||||||||||||||||||
Product sales | $ | — | $ | 5,801 | $ | — | $ | — | $ | 5,801 | |||||||||||
Service revenues | — | 1,019 | 24 | (24 | ) | 1,019 | |||||||||||||||
Total sales and service revenues | — | 6,820 | 24 | (24 | ) | 6,820 | |||||||||||||||
Cost of sales and service revenues | |||||||||||||||||||||
Cost of product sales | — | 4,695 | — | — | 4,695 | ||||||||||||||||
Cost of service revenues | — | 888 | 24 | (24 | ) | 888 | |||||||||||||||
Income (loss) from operating investments, net | — | 14 | — | — | 14 | ||||||||||||||||
General and administrative expenses | — | 739 | — | — | 739 | ||||||||||||||||
Operating income (loss) | — | 512 | — | — | 512 | ||||||||||||||||
Interest expense | (110 | ) | (8 | ) | — | — | (118 | ) | |||||||||||||
Equity in earnings (loss) of subsidiaries | 334 | — | — | (334 | ) | — | |||||||||||||||
Earnings (loss) before income taxes | 224 | 504 | — | (334 | ) | 394 | |||||||||||||||
Federal income taxes | (37 | ) | 170 | — | — | 133 | |||||||||||||||
Net earnings (loss) | $ | 261 | $ | 334 | $ | — | $ | (334 | ) | $ | 261 | ||||||||||
Other comprehensive income (loss), net of tax | 705 | 705 | — | (705 | ) | 705 | |||||||||||||||
Comprehensive income (loss) | $ | 966 | $ | 1,039 | $ | — | $ | (1,039 | ) | $ | 966 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Sales and service revenues | |||||||||||||||||||||
Product sales | $ | — | $ | 5,755 | $ | — | $ | — | $ | 5,755 | |||||||||||
Service revenues | — | 953 | 19 | (19 | ) | 953 | |||||||||||||||
Total sales and service revenues | — | 6,708 | 19 | (19 | ) | 6,708 | |||||||||||||||
Cost of sales and service revenues | |||||||||||||||||||||
Cost of product sales | — | 4,827 | — | — | 4,827 | ||||||||||||||||
Cost of service revenues | — | 802 | 19 | (19 | ) | 802 | |||||||||||||||
Income (loss) from operating investments, net | — | 18 | — | — | 18 | ||||||||||||||||
General and administrative expenses | — | 739 | — | — | 739 | ||||||||||||||||
Operating income (loss) | — | 358 | — | — | 358 | ||||||||||||||||
Interest expense | (111 | ) | (6 | ) | — | — | (117 | ) | |||||||||||||
Equity in earnings (loss) of subsidiaries | 213 | — | — | (213 | ) | — | |||||||||||||||
Earnings (loss) before income taxes | 102 | 352 | — | (213 | ) | 241 | |||||||||||||||
Federal income taxes | (44 | ) | 139 | — | — | 95 | |||||||||||||||
Net earnings (loss) | $ | 146 | $ | 213 | $ | — | $ | (213 | ) | $ | 146 | ||||||||||
Other comprehensive income (loss), net of tax | (364 | ) | (364 | ) | — | 364 | (364 | ) | |||||||||||||
Comprehensive income (loss) | $ | (218 | ) | $ | (151 | ) | $ | — | $ | 151 | $ | (218 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENTS OF FINANCIAL POSITION | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 980 | $ | 4 | $ | 6 | $ | — | $ | 990 | |||||||||||
Accounts receivable, net | — | 1,022 | 16 | — | 1,038 | ||||||||||||||||
Inventoried costs, net | — | 339 | — | — | 339 | ||||||||||||||||
Deferred income taxes | — | 129 | — | — | 129 | ||||||||||||||||
Prepaid expenses and other current assets | 1 | 48 | 5 | (4 | ) | 50 | |||||||||||||||
Total current assets | 981 | 1,542 | 27 | (4 | ) | 2,546 | |||||||||||||||
Property, plant, and equipment, net | — | 1,790 | 2 | — | 1,792 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Goodwill | — | 1,026 | — | — | 1,026 | ||||||||||||||||
Other purchased intangibles, net of accumulated amortization | — | 547 | — | — | 547 | ||||||||||||||||
Pension plan asset | — | 17 | — | — | 17 | ||||||||||||||||
Long-term deferred tax assets | — | 212 | — | — | 212 | ||||||||||||||||
Miscellaneous other assets | 30 | 99 | — | — | 129 | ||||||||||||||||
Investment in subsidiaries | 3,421 | — | — | (3,421 | ) | — | |||||||||||||||
Intercompany receivables | — | 1,469 | — | (1,469 | ) | — | |||||||||||||||
Total other assets | 3,451 | 3,370 | — | (4,890 | ) | 1,931 | |||||||||||||||
Total assets | $ | 4,432 | $ | 6,702 | $ | 29 | $ | (4,894 | ) | $ | 6,269 | ||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||
Trade accounts payable | $ | — | $ | 265 | $ | 4 | $ | — | $ | 269 | |||||||||||
Accrued employees’ compensation | — | 247 | 1 | — | 248 | ||||||||||||||||
Current portion of long-term debt | 108 | — | — | — | 108 | ||||||||||||||||
Current portion of workers’ compensation liabilities | — | 221 | — | — | 221 | ||||||||||||||||
Current portion of postretirement plan liabilities | — | 143 | — | — | 143 | ||||||||||||||||
Advance payments and billings in excess of revenues | — | 74 | — | — | 74 | ||||||||||||||||
Other current liabilities | 15 | 234 | 4 | (4 | ) | 249 | |||||||||||||||
Total current liabilities | 123 | 1,184 | 9 | (4 | ) | 1,312 | |||||||||||||||
Long-term debt | 1,488 | 104 | — | — | 1,592 | ||||||||||||||||
Other postretirement plan liabilities | — | 507 | — | — | 507 | ||||||||||||||||
Pension plan liabilities | — | 939 | — | — | 939 | ||||||||||||||||
Workers’ compensation liabilities | — | 449 | — | — | 449 | ||||||||||||||||
Deferred tax liabilities | — | — | — | — | — | ||||||||||||||||
Other long-term liabilities | — | 105 | — | — | 105 | ||||||||||||||||
Intercompany liabilities | 1,456 | — | 13 | (1,469 | ) | — | |||||||||||||||
Total liabilities | 3,067 | 3,288 | 22 | (1,473 | ) | 4,904 | |||||||||||||||
Stockholders’ equity | 1,365 | 3,414 | 7 | (3,421 | ) | 1,365 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,432 | $ | 6,702 | $ | 29 | $ | (4,894 | ) | $ | 6,269 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF FINANCIAL POSITION | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,042 | $ | — | $ | 1 | $ | — | $ | 1,043 | |||||||||||
Accounts receivable, net | — | 1,123 | — | — | 1,123 | ||||||||||||||||
Inventoried costs, net | — | 311 | — | — | 311 | ||||||||||||||||
Deferred income taxes | — | 170 | — | — | 170 | ||||||||||||||||
Prepaid expenses and other current assets | — | 30 | 5 | (6 | ) | 29 | |||||||||||||||
Total current assets | 1,042 | 1,634 | 6 | (6 | ) | 2,676 | |||||||||||||||
Property, plant, and equipment, net | — | 1,897 | — | — | 1,897 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Goodwill | — | 881 | — | — | 881 | ||||||||||||||||
Other purchased intangibles, net of accumulated amortization | — | 528 | — | — | 528 | ||||||||||||||||
Pension plan assets | — | 124 | — | — | 124 | ||||||||||||||||
Miscellaneous other assets | 35 | 84 | — | — | 119 | ||||||||||||||||
Investment in subsidiaries | 3,295 | — | — | (3,295 | ) | — | |||||||||||||||
Intercompany receivables | — | 1,152 | — | (1,152 | ) | — | |||||||||||||||
Total other assets | 3,330 | 2,769 | — | (4,447 | ) | 1,652 | |||||||||||||||
Total assets | $ | 4,372 | $ | 6,300 | $ | 6 | $ | (4,453 | ) | $ | 6,225 | ||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||
Trade accounts payable | $ | — | $ | 337 | $ | — | $ | — | $ | 337 | |||||||||||
Accrued employees’ compensation | — | 230 | — | — | 230 | ||||||||||||||||
Current portion of long-term debt | 79 | — | — | — | 79 | ||||||||||||||||
Current portion of workers’ compensation liabilities | — | 230 | — | — | 230 | ||||||||||||||||
Current portion of postretirement plan liabilities | — | 139 | — | — | 139 | ||||||||||||||||
Advance payments and billings in excess of revenues | — | 115 | — | — | 115 | ||||||||||||||||
Other current liabilities | 25 | 237 | 6 | (6 | ) | 262 | |||||||||||||||
Total current liabilities | 104 | 1,288 | 6 | (6 | ) | 1,392 | |||||||||||||||
Long-term debt | 1,595 | 105 | — | — | 1,700 | ||||||||||||||||
Other postretirement plan liabilities | — | 477 | — | — | 477 | ||||||||||||||||
Pension plan liabilities | — | 529 | — | — | 529 | ||||||||||||||||
Workers’ compensation liabilities | — | 419 | — | — | 419 | ||||||||||||||||
Deferred tax liabilities | — | 83 | — | — | 83 | ||||||||||||||||
Other long-term liabilities | — | 104 | — | — | 104 | ||||||||||||||||
Intercompany liabilities | 1,152 | — | — | (1,152 | ) | — | |||||||||||||||
Total liabilities | 2,851 | 3,005 | 6 | (1,158 | ) | 4,704 | |||||||||||||||
Stockholders’ equity | 1,521 | 3,295 | — | (3,295 | ) | 1,521 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,372 | $ | 6,300 | $ | 6 | $ | (4,453 | ) | $ | 6,225 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (57 | ) | $ | 779 | $ | (6 | ) | $ | — | $ | 716 | |||||||||
Investing Activities | |||||||||||||||||||||
Additions to property, plant, and equipment | — | (165 | ) | — | — | (165 | ) | ||||||||||||||
Acquisitions of businesses, net of cash received | — | (275 | ) | 3 | — | (272 | ) | ||||||||||||||
Proceeds from insurance settlement | — | — | — | — | — | ||||||||||||||||
Net funding from (to) parent | — | (312 | ) | 8 | 304 | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | (752 | ) | 11 | 304 | (437 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||
Proceeds from issuance of long-term debt | 600 | — | — | — | 600 | ||||||||||||||||
Repayment of long-term debt | (679 | ) | — | — | — | (679 | ) | ||||||||||||||
Debt issuance costs | (12 | ) | — | — | — | (12 | ) | ||||||||||||||
Tender premium and fees related to early extinguishment of debt | (31 | ) | — | — | — | (31 | ) | ||||||||||||||
Repurchases of common stock | (138 | ) | — | — | — | (138 | ) | ||||||||||||||
Dividends paid | (49 | ) | — | — | — | (49 | ) | ||||||||||||||
Employee taxes on certain share-based payment arrangements | — | (64 | ) | — | — | (64 | ) | ||||||||||||||
Proceeds from stock option exercises | — | 2 | — | — | 2 | ||||||||||||||||
Excess tax benefit related to stock-based compensation | — | 39 | — | — | 39 | ||||||||||||||||
Net funding from (to) subsidiary | 304 | — | — | (304 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | (5 | ) | (23 | ) | — | (304 | ) | (332 | ) | ||||||||||||
Change in cash and cash equivalents | (62 | ) | 4 | 5 | — | (53 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 1,042 | — | 1 | — | 1,043 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 980 | $ | 4 | $ | 6 | $ | — | $ | 990 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (72 | ) | $ | 308 | $ | — | $ | — | $ | 236 | ||||||||||
Investing Activities | |||||||||||||||||||||
Additions to property, plant, and equipment | — | (139 | ) | — | — | (139 | ) | ||||||||||||||
Proceeds from insurance settlement | — | 58 | — | — | 58 | ||||||||||||||||
Net funding from (to) parent | — | (251 | ) | — | 251 | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | (332 | ) | — | 251 | (81 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||
Repayment of long-term debt | (51 | ) | — | — | — | (51 | ) | ||||||||||||||
Debt issuance costs | (5 | ) | — | — | — | (5 | ) | ||||||||||||||
Repurchases of common stock | (119 | ) | — | — | — | (119 | ) | ||||||||||||||
Dividends paid | (25 | ) | — | — | — | (25 | ) | ||||||||||||||
Proceeds from stock option exercises | 7 | — | — | — | 7 | ||||||||||||||||
Excess tax benefit related to stock-based compensation | — | 24 | — | — | 24 | ||||||||||||||||
Net funding from (to) subsidiary | 251 | — | — | (251 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | 58 | 24 | — | (251 | ) | (169 | ) | ||||||||||||||
Change in cash and cash equivalents | (14 | ) | — | — | — | (14 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 1,056 | — | 1 | — | 1,057 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,042 | $ | — | $ | 1 | $ | — | $ | 1,043 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (62 | ) | $ | 393 | $ | 1 | $ | — | $ | 332 | ||||||||||
Investing Activities | |||||||||||||||||||||
Additions to property, plant, and equipment | — | (162 | ) | — | — | (162 | ) | ||||||||||||||
Net funding from (to) parent | — | (231 | ) | — | 231 | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | (393 | ) | — | 231 | (162 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||
Repayment of long-term debt | (29 | ) | — | — | — | (29 | ) | ||||||||||||||
Repurchases of common stock | (1 | ) | — | — | — | (1 | ) | ||||||||||||||
Dividends paid | (5 | ) | — | — | — | (5 | ) | ||||||||||||||
Proceeds from stock option exercises | 7 | — | — | — | 7 | ||||||||||||||||
Net funding from (to) subsidiary | 231 | — | — | (231 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | 203 | — | — | (231 | ) | (28 | ) | ||||||||||||||
Change in cash and cash equivalents | 141 | — | 1 | — | 142 | ||||||||||||||||
Cash and cash equivalents, beginning of period | 915 | — | — | — | 915 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,056 | $ | — | $ | 1 | $ | — | $ | 1,057 | |||||||||||
Subsequent_Event_Notes
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT |
On January 30, 2015, the Company acquired, for approximately $6 million in cash, the assets of the Engineering Solutions Division ("ESD") of The Columbia Group. ESD, a leading designer and builder of unmanned underwater vehicles for domestic and international customers, will operate as the Undersea Solutions Group. As the U.S. Navy increases employment of unmanned vehicles in both the surface and undersea domains, this acquisition will enhance the Company's ability to compete in these markets. The Company has not completed the purchase price allocation due to the recent acquisition date and potential adjustments upon finalization of the fair value of the assets acquired and liabilities assumed. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounting Policies [Abstract] | |||||||
Principles of Consolidation | Principles of Consolidation - The consolidated financial statements of HII and its subsidiaries have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the instructions to Form 10-K promulgated by the Securities and Exchange Commission ("SEC"). All intercompany transactions and balances are eliminated in consolidation. For classification of current assets and liabilities related to its long-term production contracts, the Company uses the duration of these contracts as its operating cycle, which is generally longer than one year. Additionally, certain prior year amounts have been reclassified to conform to the current year presentation. | ||||||
Accounting Estimates | Accounting Estimates - The preparation of the Company's consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and the disclosure of contingencies at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates have been prepared on the basis of the most current and best available information, and actual results could differ materially from those estimates. | ||||||
Revenue Recognition | Revenue Recognition - The majority of the Company's business is derived from long-term contracts for the construction of naval vessels, production of goods, and provision of services to the federal government, principally the U.S. Navy. In accounting for these contracts, the Company extensively utilizes the cost-to-cost measure of the percentage-of-completion method of accounting, principally based upon total costs incurred. Under this method, sales, including estimated earned fees or profits, are recorded as costs are incurred, generally based on the percentage that total costs incurred bear to total estimated costs at completion. For certain contracts that provide for deliveries of a substantial number of similar units, sales are accounted for using units of delivery as the basis to measure progress toward completion. Certain contracts contain provisions for price redetermination or for cost and/or performance incentives. Such redetermined amounts or incentives are included in sales when the amounts can reasonably be determined and estimated. Amounts representing contract change orders, claims, requests for equitable adjustment, or limitations in funding are included in sales only when they can be reliably estimated and realization is probable. The Company is accounting for one of its contracts under the percentage-of-completion method based on a zero profit margin and will continue such accounting until results can be estimated more precisely. Revenues related to this contract represent less than 1% of the Company's total revenues for 2014. The Company estimates profit as the difference between total estimated revenues and total estimated cost of a contract and recognizes that profit over the life of the contract based on progress toward completion. If the Company estimates a contract will result in a loss, the full amount of the estimated loss is recognized against income in the period in which the loss is identified. | ||||||
The Company classifies contract revenues as product sales or service revenues depending upon the predominant attributes of the relevant underlying contracts. The Company recognizes changes in estimates of contract sales, costs, and profits using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. For the years ended December 31, 2014, 2013 and 2012, net cumulative catch-up adjustments increased operating income by $222 million, $113 million and $62 million, respectively, and increased diluted earnings per share by $2.93, $1.46 and $0.80, respectively. No individual adjustment was material to the Company's consolidated statements of operations and comprehensive income in any of these periods. | |||||||
The Company also enters into other types of contracts, such as certain services or commercial arrangements. For such contracts not associated with the design, development, manufacture, or modification of complex equipment, revenues are recognized upon delivery or as services are rendered once persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectibility is reasonably assured. Costs related to these contracts are expensed as incurred. | |||||||
General and Administrative Expenses | General and Administrative Expenses - In accordance with industry practice and regulations that govern the cost accounting requirements for government contracts, most general corporate expenses incurred at both the segment and corporate locations are considered allowable and allocable costs on government contracts. These costs are allocated to contracts in progress on a systematic basis, and contract performance factors include this as an element of cost. | ||||||
General and administrative expenses also include certain other costs that are not allocable to government contracts, primarily consisting of the FAS/CAS Adjustment and the provision for deferred state income taxes. The FAS/CAS Adjustment reflects the difference between pension and postretirement benefits expenses determined in accordance with U.S. Financial Accounting Standards ("FAS") and pension and postretirement benefit expenses allocated to individual contracts determined in accordance with U.S. Cost Accounting Standards ("CAS"). Deferred state income taxes reflect the change in deferred state tax assets and liabilities in the period. | |||||||
Research and Development | Research and Development - Company-sponsored research and development activities primarily include independent research and development ("IR&D") efforts related to experimentation, design, development and test activities for government programs. IR&D expenses are included in general and administrative expenses and are generally allocable to government contracts. Company-sponsored IR&D expenses totaled $18 million, $22 million and $21 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expenses for research and development sponsored by the customer are charged directly to the related contracts. | ||||||
Product Warranty Costs | Product Warranty Costs - The Company provides certain product warranties that require repair or replacement of non-conforming items for a specified period of time often subject to a specified monetary coverage limit. The Company's product warranties are provided under government contracts, the costs of which are immaterial and are included in contract costs for purposes of using the percentage-of-completion method of accounting. | ||||||
Environmental Costs | Environmental Costs - Environmental liabilities are accrued when the Company determines remediation costs are probable and such amounts are reasonably estimable. When only a range of amounts is established and no amount within the range is more probable than another, the minimum amount in the range is recorded. Environmental liabilities are recorded on an undiscounted basis and are not material. Environmental expenditures are expensed or capitalized as appropriate. Capitalized expenditures, if any, relate to long-lived improvements in currently operating facilities. The Company does not record insurance recoveries before collection is probable and, as of December 31, 2014 and 2013, did not have any accrued receivables related to insurance reimbursements or recoveries for environmental matters. | ||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments - The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard provides a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The three levels of inputs consist of: | ||||||
Level 1: | Quoted prices in active markets for identical assets and liabilities. | ||||||
Level 2: | Observable inputs, other than Level 1 prices, such as: quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or that the Company corroborates with observable market data for substantially the full term of the related assets or liabilities. | ||||||
Level 3: | Unobservable inputs supported by little or no market activity that are significant to the fair value of the assets and liabilities. | ||||||
Except for long-term debt and available-for-sale securities held in trust, the carrying amounts of the Company's financial instruments recorded at historical cost approximate fair value due to the short-term nature of the instruments and low credit risk associated with the respective counterparties. | |||||||
The Company maintains multiple rabbi trusts established to fund certain non-qualified pension plans. These trusts consist of available-for-sale investments primarily in marketable securities. The assets are held at fair value, and a significant majority of investments held in the trusts are valued within Level 1 of the fair value hierarchy and no material amounts are valued within Level 3 of the fair value hierarchy. The rabbi trusts were valued at $45 million and $40 million as of December 31, 2014 and 2013, respectively, and are presented within miscellaneous other assets within the Consolidated Statements of Financial Position. | |||||||
Foreign Currency Translation | Foreign Currency Translation - The Company's international subsidiaries that do not have the U.S. dollar as their functional currency translate assets and liabilities at current rates of exchange in effect at the balance sheet date. Revenues and expenses from these international subsidiaries are translated using the monthly average exchange rates in effect for the period in which the items occur. The cumulative foreign currency translation gains and losses are included as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Such amounts are not material. | ||||||
Asset Retirement Obligations | Asset Retirement Obligations - Environmental remediation and/or asset decommissioning may be required when the Company ceases to utilize certain facilities. The Company records, within other current liabilities, all known asset retirement obligations for which the liability's fair value can be reasonably estimated, including certain asbestos removal, asset decommissioning and lease restoration obligations. The changes in the asset retirement obligation carrying amounts for the years ended December 31, 2014, 2013 and 2012, were as follows: | ||||||
($ in millions) | Asset Retirement Obligations | ||||||
Balance as of January 1, 2012 | $ | 25 | |||||
Obligation relating to the future retirement of a facility | 1 | ||||||
Revision of estimate | (3 | ) | |||||
Accretion expense | 2 | ||||||
Balance as of December 31, 2012 | 25 | ||||||
Obligation relating to the future retirement of a facility | — | ||||||
Revision of estimate | — | ||||||
Accretion expense | — | ||||||
Balance as of December 31, 2013 | 25 | ||||||
Obligation relating to the future retirement of a facility | — | ||||||
Revision of estimate | (2 | ) | |||||
Accretion expense | (1 | ) | |||||
Balance as of December 31, 2014 | $ | 22 | |||||
The Company also has known conditional asset retirement obligations related to assets currently in use, such as certain asbestos remediation and asset decommissioning activities to be performed in the future, that were not reasonably estimable as of December 31, 2014, due to insufficient information about the timing and method of settlement of the obligation. Accordingly, the fair value of these obligations has not been recorded in the consolidated financial statements. In addition, there may be conditional environmental asset retirement obligations that the Company has not yet discovered. | |||||||
Income Taxes | Income Taxes - Income tax expense and other related information are based on the prevailing statutory rates for U.S. federal income taxes and the composite state income tax rate for the Company for each period presented. State and local income and franchise tax provisions that are allocable to U.S. Government contracts are included in general and administrative expenses. | ||||||
Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax return purposes. Deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates expected to be in effect when the deferred tax items reverse in future periods. Determinations of the expected realizability of deferred tax assets and the need for any valuation allowances against these deferred tax assets were evaluated based upon the stand-alone tax attributes of the Company, and valuation allowances of $14 million and $12 million were deemed necessary as of December 31, 2014 and 2013, respectively. | |||||||
Uncertain tax positions meeting the more-likely-than-not recognition threshold, based on the merits of the position, are recognized in the financial statements. We recognize the amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. If a tax position does not meet the minimum statutory threshold to avoid payment of penalties, we recognize an expense for the amount of the penalty in the period the tax position is claimed or expected to be claimed in our tax return. Penalties and accrued interest related to uncertain tax positions are recognized as a component of income tax expense. Changes in accruals associated with uncertain tax positions are recorded in earnings in the period they are determined. | |||||||
Cash and Cash Equivalents | Cash and Cash Equivalents - The carrying amounts of cash and cash equivalents approximate fair value due to the short-term nature of these assets, having original maturity dates of 90 days or less. | ||||||
Accounts Receivable | Accounts Receivable - Accounts receivable include amounts billed and currently due from customers, amounts currently due but unbilled, certain estimated contract change amounts, claims or requests for equitable adjustment in negotiation that are probable of recovery, and amounts retained by the customer pending contract completion. | ||||||
Inventoried Costs | Inventoried Costs - Inventoried costs primarily relate to work in process under contracts that recognize revenues using labor dollars or units of delivery as the basis of the percentage-of-completion calculation. These costs represent accumulated contract costs less cost of sales as calculated using the percentage-of-completion method, not in excess of recoverable value. Accumulated contract costs include direct production costs, factory and engineering overhead, production tooling costs, and, for government contracts, allowable general and administrative expenses. Under the Company's U.S. Government contracts, the customer asserts title to, or a security interest in, inventories related to such contracts as a result of contract advances, performance-based payments, and progress payments. In accordance with industry practice, inventoried costs are classified as a current asset and include amounts related to contracts having production cycles longer than one year. Inventoried costs also include company owned raw materials, which are stated at the lower of cost or market, generally using the average cost method. | ||||||
Advance Payments and Billings in Excess of Revenues | Advance Payments and Billings in Excess of Revenues - Payments received in excess of inventoried costs and revenues are recorded as advance payment liabilities. | ||||||
Property, Plant, and Equipment | Property, Plant, and Equipment - Depreciable properties owned by the Company are recorded at cost and depreciated over the estimated useful lives of individual assets. Major improvements are capitalized while expenditures for maintenance, repairs and minor improvements are expensed. Costs incurred for computer software developed or obtained for internal use are capitalized and amortized over the expected useful life of the software, not to exceed nine years. Leasehold improvements are amortized over the shorter of their useful lives or the term of the lease. | ||||||
The remaining assets are depreciated using the straight-line method, with the following lives: | |||||||
Years | |||||||
Land improvements | 3 | - | 40 | ||||
Buildings and improvements | 3 | - | 60 | ||||
Capitalized software costs | 3 | - | 9 | ||||
Machinery and other equipment | 2 | - | 45 | ||||
The Company evaluates the recoverability of its property, plant, and equipment when there are changes in economic circumstances or business objectives that indicate the carrying value may not be recoverable. The Company's evaluations include estimated future cash flows, profitability, and other factors in determining fair value. As these assumptions and estimates may change over time, it may or may not be necessary to record impairment charges. | |||||||
Leases | Leases - The Company uses its incremental borrowing rate in the assessment of lease classification as capital or operating and defines the initial lease term to include renewal options determined to be reasonably assured. The Company conducts operations primarily under operating leases. | ||||||
Many of the Company's real property lease agreements contain incentives for tenant improvements, rent holidays, or rent escalation clauses. For incentives for tenant improvements, the Company records a deferred rent liability and amortizes the deferred rent over the term of the lease as a reduction to rent expense. For rent holidays and rent escalation clauses during the lease term, the Company records minimum rental expenses on a straight-line basis over the term of the lease. For purposes of recognizing lease incentives, the Company uses the date of initial possession as the commencement date, which is generally the date on which the Company is given the right of access to the space and begins to make improvements in preparation for the intended use. | |||||||
Goodwill and Other Purchased Intangible Assets | Goodwill and Other Purchased Intangible Assets - The Company performs impairment tests for goodwill as of November 30 of each year, or when evidence of potential impairment exists, by first comparing the carrying value of net assets to the fair value of the related operations. If the fair value is determined to be less than the carrying value, a second step is performed to determine if goodwill is impaired by comparing the estimated fair value of goodwill to its carrying value. Purchased intangible assets are amortized on a straight-line basis over their estimated useful lives, and the carrying value of these assets is reviewed for impairment when events indicate that a potential impairment may have occurred. | ||||||
Equity Method Investments | Equity Method Investments - Investments in which the Company has the ability to exercise significant influence over the investee but does not own a majority interest or otherwise control are accounted for under the equity method of accounting and are included in other assets in its consolidated statements of financial position. The Company's equity investments align strategically and are integrated with the Company's operations, and therefore the Company's share of the net earnings or losses of the investee is included in operating income (loss). The Company evaluates its equity investments for other than temporary impairment whenever events or changes in business circumstances indicate that the carrying amounts of such investments may not be fully recoverable. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is recorded in earnings in the current period. | ||||||
Self-Insured Group Medical Insurance and Self-Insured Workers' Compensation Plan | Self-Insured Group Medical Insurance - The Company maintains a self-insured group medical insurance plan. The plan is designed to provide a specified level of coverage for employees and their dependents. Estimated liabilities for incurred but not paid claims utilize actuarial methods based on various assumptions, which include, but are not limited to, HII's historical loss experience and projected loss development factors. | ||||||
Self-Insured Workers' Compensation Plan - The operations of the Company are subject to federal and state workers' compensation laws. The Company maintains self-insured workers' compensation plans, in addition to participating in federally administered second injury workers' compensation funds. The Company estimates the required liability of claims and funding requirements on a discounted basis utilizing actuarial methods based on various assumptions, which include, but are not limited to, the Company's historical loss experience and projected loss development factors as compiled in an annual actuarial study. Related self-insurance accruals include amounts related to the liability for reported claims and an estimated accrual for claims incurred but not reported. The Company's workers' compensation liability was discounted at 2.48% and 2.16% as of December 31, 2014 and 2013, respectively. These discount rates were determined using a risk-free rate based on future payment streams. Workers' compensation benefit obligations on an undiscounted basis were $846 million and $792 million as of December 31, 2014 and 2013, respectively. | |||||||
Litigation, Commitments, and Contingencies | Litigation, Commitments, and Contingencies - Amounts associated with litigation, commitments, and contingencies are recorded as charges to earnings when management, after taking into consideration the facts and circumstances of each matter, including any settlement offers, has determined that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. | ||||||
Restructuring | Restructuring - The Company has recorded accruals in conjunction with its restructuring activities in other current liabilities. These accruals include estimates primarily related to facility consolidations and closures, asset retirement obligations, long-lived asset write-downs, employment reductions and contract termination costs. Actual costs may vary from these estimates. Restructuring related accruals are reviewed and adjusted when circumstances require such a change. | ||||||
Deferred Contract Costs | Deferred Contract Costs - Pension and other postretirement benefit costs are allocated to the Company's contracts as allowed costs based upon CAS. The CAS requirements for these retirement related benefit costs differ from FAS. Given the inability to match with reasonable certainty individual expense and income items between the CAS and FAS requirements to determine specific recoverability, the Company has not estimated the incremental FAS income or expense recoverable under its expected future contract activity and therefore did not defer any FAS expense for pension and other postretirement benefit plans in 2014, 2013 or 2012. | ||||||
Retirement Related Benefit Costs | Retirement Related Benefit Costs - The Company accounts for its retirement related benefit plans on the accrual basis. The measurements of obligations, costs, assets, and liabilities require significant judgment. The costs of benefits provided by defined benefit pension plans are recorded in the period participating employees provide service. The costs of benefits provided by other postretirement benefit plans are recorded in the period participating employees attain full eligibility. The discount rate assumption is defined under GAAP as the rate at which the plan's obligation could be effectively settled. The discount rate is established for each of the retirement related benefit plans at its respective measurement date. | ||||||
The expected return on plan assets component of retirement related costs is used to calculate net periodic expense. Unless plan assets and benefit obligations are subject to remeasurement during the year, the expected return on assets is based on the fair value of plan assets at the beginning of the year. The costs of plan amendments that provide benefits already earned by plan participants (prior service costs and credits) are deferred in accumulated other comprehensive income and amortized over the expected period the employees provide service, which is approximately 10 years. Actuarial gains and losses arising from differences from actual experience or changes in assumptions are deferred in accumulated other comprehensive income. This unrecognized amount is amortized to the extent it exceeds 10% of the greater of the plan's benefit obligation or plan assets. The amortization period for actuarial gains and losses is the estimated average remaining service life of the plan participants, which is approximately 10 years. | |||||||
The Company recognizes the funded status of each retirement related benefit plan as an asset or liability in its consolidated statements of financial position. The funded status represents the difference between the plan's benefit obligation and the fair value of the plan's assets. Unrecognized deferred amounts such as demographic or asset gains or losses and the impacts of plan amendments are included in accumulated other comprehensive income and amortized as previously described. | |||||||
Stock Compensation | Stock Compensation - Stock-based compensation value is determined based on the closing market price of the Company's common stock on grant date and the expense is recognized over the vesting period. At each reporting date, the number of shares is adjusted, based on the achievement of performance-based targets, to equal the number ultimately expected to vest. | ||||||
Related Party Transactions | Related Party Transactions - In connection with the spin-off, HII entered into a Transition Services Agreement with Northrop Grumman, under which Northrop Grumman or certain of its subsidiaries provided HII at cost with certain enterprise shared services (including information technology, resource planning, financial, procurement, and human resource services), benefits support services, and other specified services. The term of the Transition Services Agreement ended on October 9, 2012. For the year ended December 31, 2012, costs incurred for these services under the Transition Services Agreement were approximately $20 million. In addition, in connection with the spin-off, HII entered into a Tax Matters Agreement with Northrop Grumman related to taxes prior to the spin-off as described in Note 13: Income Taxes. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accounting Policies [Abstract] | |||||||
Schedule of Change in Asset Retirement Obligation | The changes in the asset retirement obligation carrying amounts for the years ended December 31, 2014, 2013 and 2012, were as follows: | ||||||
($ in millions) | Asset Retirement Obligations | ||||||
Balance as of January 1, 2012 | $ | 25 | |||||
Obligation relating to the future retirement of a facility | 1 | ||||||
Revision of estimate | (3 | ) | |||||
Accretion expense | 2 | ||||||
Balance as of December 31, 2012 | 25 | ||||||
Obligation relating to the future retirement of a facility | — | ||||||
Revision of estimate | — | ||||||
Accretion expense | — | ||||||
Balance as of December 31, 2013 | 25 | ||||||
Obligation relating to the future retirement of a facility | — | ||||||
Revision of estimate | (2 | ) | |||||
Accretion expense | (1 | ) | |||||
Balance as of December 31, 2014 | $ | 22 | |||||
Schedule of Depreciable Assets, Straight-Line Method Useful Lives | The remaining assets are depreciated using the straight-line method, with the following lives: | ||||||
Years | |||||||
Land improvements | 3 | - | 40 | ||||
Buildings and improvements | 3 | - | 60 | ||||
Capitalized software costs | 3 | - | 9 | ||||
Machinery and other equipment | 2 | - | 45 |
Avondale_Tables
Avondale (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Restructuring and Related Activities [Abstract] | |||||
Liability for restructuring and shutdown related costs | The following table summarizes the changes in the Company's liability for restructuring and shutdown related costs associated with winding down the Avondale facility. As of December 31, 2014 and 2013, these costs were comprised primarily of employee severance and retention payments, as well as incentive bonuses. As of December 31, 2014 and 2013, $212 million and $180 million, respectively, of restructuring and shutdown related costs were capitalized in inventoried costs. As of December 31, 2014, $48 million of accounts receivable was related to restructuring and shutdown related costs. For the year ended December 31, 2014, the Company expensed $57 million of these costs as part of general and administrative expenses. | ||||
($ in millions) | Total | ||||
Balance as of January 1, 2012 | $ | 50 | |||
Payments | (50 | ) | |||
Adjustments | 24 | ||||
Balance as of December 31, 2012 | 24 | ||||
Payments | (27 | ) | |||
Adjustments | 17 | ||||
Balance as of December 31, 2013 | 14 | ||||
Payments | (15 | ) | |||
Adjustments | 1 | ||||
Balance as of December 31, 2014 | $ | — | |||
Stockholders_Equity_Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Income - Other comprehensive income (loss) refers to gains and losses recorded as an element of stockholders' equity but excluded from net earnings (loss). The accumulated other comprehensive loss as of December 31, 2014 and 2013, was comprised of unamortized benefit plan costs of $864 million and $523 million, respectively, and other comprehensive income items of $2 million for each of 2014 and 2013. The changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2014, 2013 and 2012, were as follows: | ||||||||||||
($ in millions) | Benefit Plans | Other | Total | ||||||||||
Balance as of December 31, 2011 | $ | (862 | ) | $ | — | $ | (862 | ) | |||||
Other comprehensive income (loss) before reclassifications | (700 | ) | — | (700 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||
Amortization of prior service cost (credit)1 | 5 | — | 5 | ||||||||||
Amortization of net actuarial loss (gain)1 | 90 | — | 90 | ||||||||||
Tax benefit (expense) for items of other comprehensive income | 241 | — | 241 | ||||||||||
Net current period other comprehensive income (loss) | (364 | ) | — | (364 | ) | ||||||||
Balance as of December 31, 2012 | (1,226 | ) | — | (1,226 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 1,028 | 4 | 1,032 | ||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||
Amortization of prior service cost (credit)1 | (3 | ) | — | (3 | ) | ||||||||
Amortization of net actuarial loss (gain)1 | 134 | — | 134 | ||||||||||
Tax benefit (expense) for items of other comprehensive income | (456 | ) | (2 | ) | (458 | ) | |||||||
Net current period other comprehensive income (loss) | 703 | 2 | 705 | ||||||||||
Balance as of December 31, 2013 | (523 | ) | 2 | (521 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | (603 | ) | — | (603 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | |||||||||||||
Amortization of prior service cost (credit)1 | (7 | ) | — | (7 | ) | ||||||||
Amortization of net actuarial loss (gain)1 | 52 | — | 52 | ||||||||||
Tax benefit (expense) for items of other comprehensive income | 217 | — | 217 | ||||||||||
Net current period other comprehensive income (loss) | (341 | ) | — | (341 | ) | ||||||||
Balance as of December 31, 2014 | $ | (864 | ) | $ | 2 | $ | (862 | ) | |||||
1 These accumulated comprehensive income (loss) components are included in the computation of net periodic benefit cost. See Note 18: Employee Pension and Other Postretirement Benefits. The tax expense associated with amounts reclassified from accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012, was $16 million, $46 million, and $33 million, respectively. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted earnings per common share was as follows: | ||||||||||||
Year Ended December 31 | |||||||||||||
(in millions, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Net earnings (loss) | $ | 338 | $ | 261 | $ | 146 | |||||||
Weighted-average common shares outstanding | 48.8 | 49.7 | 49.4 | ||||||||||
Net effect of dilutive stock options and awards | 0.5 | 0.7 | 0.7 | ||||||||||
Dilutive weighted-average common shares outstanding | 49.3 | 50.4 | 50.1 | ||||||||||
Earnings (loss) per share - basic | $ | 6.93 | $ | 5.25 | $ | 2.96 | |||||||
Earnings (loss) per share - diluted | $ | 6.86 | $ | 5.18 | $ | 2.91 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Operating Profit (Loss) Reconciliation [Table Text Block] | Results of Operations by Segment | ||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Sales and Service Revenues | |||||||||||||
Ingalls | $ | 2,286 | $ | 2,441 | $ | 2,532 | |||||||
Newport News | 4,536 | 4,382 | 4,180 | ||||||||||
Other | 137 | — | — | ||||||||||
Intersegment eliminations | (2 | ) | (3 | ) | (4 | ) | |||||||
Total sales and service revenues | $ | 6,957 | $ | 6,820 | $ | 6,708 | |||||||
Operating Income (Loss) | |||||||||||||
Ingalls | $ | 229 | $ | 165 | $ | 85 | |||||||
Newport News | 415 | 402 | 372 | ||||||||||
Other | (59 | ) | — | — | |||||||||
Total segment operating income (loss) | 585 | 567 | 457 | ||||||||||
Non-segment factors affecting operating income (loss) | |||||||||||||
FAS/CAS Adjustment | 72 | (61 | ) | (80 | ) | ||||||||
Deferred state income taxes | (2 | ) | 6 | (19 | ) | ||||||||
Total operating income (loss) | $ | 655 | $ | 512 | $ | 358 | |||||||
Segment Assets Reconciliation [Table Text Block] | The following tables present, by segment, the Company's assets, capital expenditures, and depreciation and amortization. | ||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Assets | |||||||||||||
Ingalls | $ | 1,452 | $ | 1,663 | 1,620 | ||||||||
Newport News | 3,155 | 3,111 | 3,068 | ||||||||||
Other | 210 | — | — | ||||||||||
Corporate | 1,452 | 1,451 | 1,704 | ||||||||||
Total assets | $ | 6,269 | $ | 6,225 | $ | 6,392 | |||||||
Segment Other Significant Items Reconciliation [Table Text Block] | |||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Capital Expenditures | |||||||||||||
Ingalls | $ | 53 | $ | 44 | $ | 37 | |||||||
Newport News | 109 | 93 | 125 | ||||||||||
Other | 3 | — | — | ||||||||||
Corporate | — | 2 | — | ||||||||||
Total capital expenditures | $ | 165 | $ | 139 | $ | 162 | |||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Depreciation and Amortization(1) | |||||||||||||
Ingalls | $ | 81 | $ | 125 | $ | 89 | |||||||
Newport News | 105 | 100 | 95 | ||||||||||
Other | 8 | — | — | ||||||||||
Corporate | — | 1 | — | ||||||||||
Total depreciation and amortization | $ | 194 | $ | 226 | $ | 184 | |||||||
(1) Excluding amortization of debt issuance costs |
Accounts_Receivable_Net_Tables
Accounts Receivable, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Accounts receivable | Accounts receivable were composed of the following: | ||||||||
December 31 | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Due From U.S. Government | |||||||||
Amounts billed | $ | 180 | $ | 143 | |||||
Recoverable costs and accrued profit on progress completed - unbilled | 766 | 944 | |||||||
946 | 1,087 | ||||||||
Due From Other Customers | |||||||||
Amounts billed | 64 | 28 | |||||||
Recoverable costs and accrued profit on progress completed - unbilled | 35 | 15 | |||||||
99 | 43 | ||||||||
Total accounts receivable | 1,045 | 1,130 | |||||||
Allowances for doubtful accounts | (7 | ) | (7 | ) | |||||
Total accounts receivable, net | $ | 1,038 | $ | 1,123 | |||||
Inventoried_Costs_Net_Tables
Inventoried Costs, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventoried costs, net | Inventoried costs were composed of the following: | ||||||||
31-Dec | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Production costs of contracts in process | $ | 248 | $ | 218 | |||||
General and administrative expenses | — | 2 | |||||||
248 | 220 | ||||||||
Progress payments received | — | — | |||||||
248 | 220 | ||||||||
Raw material inventory | 91 | 91 | |||||||
Total inventoried costs, net | $ | 339 | $ | 311 | |||||
Goodwill_and_Other_Purchased_I1
Goodwill and Other Purchased Intangible Assets Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Change in Carrying Amount of Goodwill | For the years ended December 31, 2014 and 2013, the carrying amounts of goodwill changed as follows: | ||||||||||||||||
($ in millions) | Ingalls | Newport News | Other | Total | |||||||||||||
Balance as of January 1, 2013 | $ | 175 | $ | 706 | $ | — | $ | 881 | |||||||||
Balance as of December 31, 2013 | 175 | 706 | — | 881 | |||||||||||||
Acquisitions | — | 42 | 150 | 192 | |||||||||||||
Goodwill impairment | — | — | (47 | ) | (47 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 175 | $ | 748 | $ | 103 | $ | 1,026 | |||||||||
Purchased Intangible Assets | The following table summarizes the Company's aggregate purchased intangible assets, which are primarily program related intangible assets. | ||||||||||||||||
31-Dec | |||||||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||||||
Gross carrying amount | $ | 986 | $ | 939 | |||||||||||||
Accumulated amortization | (439 | ) | (411 | ) | |||||||||||||
Net carrying amount | $ | 547 | $ | 528 | |||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Federal Income Tax Expense | Federal income tax expense for the years ended December 31, 2014, 2013 and 2012, consisted of the following: | ||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Income Taxes on Operations | |||||||||||||
Federal income taxes currently payable | $ | 191 | $ | 150 | $ | 49 | |||||||
Change in deferred federal income taxes | (22 | ) | (17 | ) | 46 | ||||||||
Total federal income taxes | $ | 169 | $ | 133 | $ | 95 | |||||||
Reconciliation of Income Tax Expense to Federal Statutory Rate | Income tax expense differed from the amount based on the statutory federal income tax rate applied to earnings (loss) before income taxes due to the following: | ||||||||||||
Year Ended December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Income tax expense (benefit) on operations at statutory rate | $ | 178 | $ | 138 | $ | 84 | |||||||
Goodwill impairment | 6 | — | — | ||||||||||
Manufacturing deduction | (9 | ) | (7 | ) | (3 | ) | |||||||
Research tax credit | — | (2 | ) | — | |||||||||
Tax Matters Agreement adjustment | — | — | 8 | ||||||||||
Other, Net | (6 | ) | 4 | 6 | |||||||||
Total federal income taxes | $ | 169 | $ | 133 | $ | 95 | |||||||
Change in Unrecognized Tax Benefits | The changes in unrecognized tax benefits (exclusive of interest and penalties) for the years ended December 31, 2014, 2013 and 2012 are summarized in the following table: | ||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||
Unrecognized tax benefits at beginning of the year | $ | 11 | $ | 19 | $ | 6 | |||||||
Additions based on tax positions related to the current year | 5 | 5 | 7 | ||||||||||
Additions based on tax positions of prior years | 3 | 1 | 19 | ||||||||||
Current year acquisitions | 4 | — | — | ||||||||||
Reductions based on tax positions of prior years | — | (14 | ) | (12 | ) | ||||||||
Settlements | — | — | (1 | ) | |||||||||
Statute of limitation expirations | (4 | ) | — | — | |||||||||
Net change in unrecognized tax benefits | 8 | (8 | ) | 13 | |||||||||
Unrecognized tax benefits at end of the year | $ | 19 | $ | 11 | $ | 19 | |||||||
Summary of Income Tax Examinations | The following table summarizes the tax years that are either currently under examination or remain open under the statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: | ||||||||||||
Jurisdiction | Years | ||||||||||||
United States | 2007 | - | 2013 | ||||||||||
California | 2007 | - | 2013 | ||||||||||
Louisiana | 2011 | - | 2013 | ||||||||||
Mississippi | 2011 | - | 2013 | ||||||||||
Virginia | 2011 | - | 2013 | ||||||||||
Net Deferred Tax Assets | The tax effects of significant temporary differences and carry-forwards that gave rise to year-end deferred federal and state tax balances, as presented in the consolidated statements of financial position, were as follows: | ||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Deferred Tax Assets | |||||||||||||
Retirement benefits | $ | 592 | $ | 366 | |||||||||
Workers' compensation | 256 | 248 | |||||||||||
Reserves not currently deductible for tax purposes | 9 | 36 | |||||||||||
Stock-based compensation | 14 | 20 | |||||||||||
Net operating losses and tax credit carry-forwards | 20 | — | |||||||||||
Other | 9 | 16 | |||||||||||
Gross deferred tax assets | 900 | 686 | |||||||||||
Less valuation allowance | 14 | 12 | |||||||||||
Net deferred tax assets | 886 | 674 | |||||||||||
Deferred Tax Liabilities | |||||||||||||
Depreciation and amortization | 297 | 337 | |||||||||||
Contract accounting differences | 53 | 45 | |||||||||||
Purchased intangibles | 195 | 205 | |||||||||||
Gross deferred tax liabilities | 545 | 587 | |||||||||||
Total net deferred tax assets | $ | 341 | $ | 87 | |||||||||
Net deferred tax assets (liabilities) as presented in the consolidated statements of financial position were as follows: | |||||||||||||
December 31 | |||||||||||||
($ in millions) | 2014 | 2013 | |||||||||||
Net current deferred tax assets | $ | 129 | $ | 170 | |||||||||
Net non-current deferred tax assets | 212 | — | |||||||||||
Net non-current deferred tax liabilities | — | (83 | ) | ||||||||||
Total net deferred tax assets | $ | 341 | $ | 87 | |||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following: | ||||||||
December 31 | |||||||||
($ in millions) | 2014 | 2013 | |||||||
Term loan due March 30, 2016 | $ | 395 | $ | 474 | |||||
Senior notes due March 15, 2018, 6.875% | — | 600 | |||||||
Senior notes due March 15, 2021, 7.125% | 600 | 600 | |||||||
Senior notes due December 15, 2021, 5.000% | 600 | — | |||||||
Mississippi economic development revenue bonds due May 1, 2024, 7.81% | 84 | 84 | |||||||
Gulf opportunity zone industrial development revenue bonds due December 1, 2028, 4.55% | 21 | 21 | |||||||
Total long-term debt | 1,700 | 1,779 | |||||||
Less current portion | 108 | 79 | |||||||
Long-term debt, net of current portion | $ | 1,592 | $ | 1,700 | |||||
Schedule of Extinguishment of Debt [Table Text Block] | Details of the debt call and tender offer and the associated loss on early extinguishment of debt were as follows: | ||||||||
31-Dec | |||||||||
($ in millions) | 2014 | ||||||||
Debt call and tender premiums and fees | $ | 31 | |||||||
Write-off of unamortized debt issuance costs | 6 | ||||||||
Total loss on early extinguishment of debt | $ | 37 | |||||||
Schedule of Maturities of Long-term Debt | The aggregate amounts of principal payments due on long-term debt for each of the next five years and thereafter are: | ||||||||
($ in millions) | |||||||||
2015 | $ | 108 | |||||||
2016 | 287 | ||||||||
2017 | — | ||||||||
2018 | — | ||||||||
2019 | — | ||||||||
Thereafter | 1,305 | ||||||||
Total long-term debt | $ | 1,700 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Minimum Rental Commitments Under Long-Term Non-Cancellable Operating Leases | Minimum rental commitments under long-term non-cancellable operating leases for each of the years 2015 through 2019 and thereafter are: | ||||
($ in millions) | |||||
2015 | $ | 34 | |||
2016 | 30 | ||||
2017 | 23 | ||||
2018 | 20 | ||||
2019 | 16 | ||||
Thereafter | 39 | ||||
Total | $ | 162 | |||
Recovered_Sheet1
Employee Pension and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The cost of the Company's defined benefit plans and other postretirement plans for the years ended December 31, 2014, 2013 and 2012, was as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Year Ended December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||||||||||||||||
Service cost | $ | 136 | $ | 147 | $ | 133 | $ | 13 | $ | 21 | $ | 15 | |||||||||||||||||||||
Interest cost | 253 | 215 | 212 | 30 | 33 | 40 | |||||||||||||||||||||||||||
Expected return on plan assets | (322 | ) | (289 | ) | (267 | ) | — | — | — | ||||||||||||||||||||||||
Amortization of prior service cost (credit) | 19 | 18 | 12 | (26 | ) | (21 | ) | (7 | ) | ||||||||||||||||||||||||
Amortization of net actuarial loss (gain) | 52 | 118 | 77 | — | 16 | 13 | |||||||||||||||||||||||||||
Curtailments | — | (1 | ) | — | — | — | — | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | 138 | $ | 208 | $ | 167 | $ | 17 | $ | 49 | $ | 61 | |||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The funded status of the Company's plans as of December 31, 2014 and 2013, was as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 4,730 | $ | 5,061 | $ | 616 | $ | 965 | |||||||||||||||||||||||||
Service cost | 136 | 147 | 13 | 21 | |||||||||||||||||||||||||||||
Interest cost | 253 | 215 | 30 | 33 | |||||||||||||||||||||||||||||
Plan participants' contributions | 26 | 9 | 7 | 18 | |||||||||||||||||||||||||||||
Plan amendments | — | 66 | — | (145 | ) | ||||||||||||||||||||||||||||
Actuarial loss (gain) | 714 | (600 | ) | 24 | (220 | ) | |||||||||||||||||||||||||||
Benefits paid | (168 | ) | (154 | ) | (40 | ) | (59 | ) | |||||||||||||||||||||||||
Curtailments | (20 | ) | (14 | ) | — | — | |||||||||||||||||||||||||||
Medicare Part D subsidy | — | — | — | 3 | |||||||||||||||||||||||||||||
Benefit obligation at end of year | 5,671 | 4,730 | 650 | 616 | |||||||||||||||||||||||||||||
Change in Plan Assets | |||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 4,310 | 3,745 | — | — | |||||||||||||||||||||||||||||
Gain on plan assets | 437 | 405 | — | — | |||||||||||||||||||||||||||||
Employer contributions | 126 | 305 | 33 | 38 | |||||||||||||||||||||||||||||
Plan participants' contributions | 26 | 9 | 7 | 18 | |||||||||||||||||||||||||||||
Benefits paid | (168 | ) | (154 | ) | (40 | ) | (59 | ) | |||||||||||||||||||||||||
Medicare Part D subsidy | — | — | — | 3 | |||||||||||||||||||||||||||||
Fair value of plan assets at end of year | 4,731 | 4,310 | — | — | |||||||||||||||||||||||||||||
Funded status | $ | (940 | ) | $ | (420 | ) | $ | (650 | ) | $ | (616 | ) | |||||||||||||||||||||
Amounts Recognized in the Consolidated Statements of Financial Position: | |||||||||||||||||||||||||||||||||
Pension plan assets | $ | 17 | $ | 124 | $ | — | $ | — | |||||||||||||||||||||||||
Current liability (1) | (18 | ) | (15 | ) | (143 | ) | (139 | ) | |||||||||||||||||||||||||
Non-current liability (2) | (939 | ) | (529 | ) | (507 | ) | (477 | ) | |||||||||||||||||||||||||
Accumulated other comprehensive loss (income) (pre-tax) related to: | |||||||||||||||||||||||||||||||||
Prior service costs (credits) | 105 | 124 | (125 | ) | (152 | ) | |||||||||||||||||||||||||||
Net actuarial loss (gain) | 1,374 | 847 | 73 | 50 | |||||||||||||||||||||||||||||
(1) | Included in other current liabilities and current portion of postretirement plan liabilities, respectively. | ||||||||||||||||||||||||||||||||
-2 | Included in pension plan liabilities and other postretirement plan liabilities, respectively. | ||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The changes in amounts recorded in accumulated other comprehensive income (loss) are as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
Year Ended December 31 | Year Ended December 31 | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Prior service cost (credit) | $ | — | $ | (66 | ) | $ | — | $ | — | $ | 145 | $ | 11 | ||||||||||||||||||||
Amortization of prior service cost (credit) | 19 | 18 | 12 | (26 | ) | (21 | ) | (7 | ) | ||||||||||||||||||||||||
Net actuarial loss (gain) | (599 | ) | 716 | (599 | ) | (24 | ) | 220 | (118 | ) | |||||||||||||||||||||||
Amortization of net actuarial loss (gain) | 52 | 118 | 77 | — | 16 | 13 | |||||||||||||||||||||||||||
Other | 20 | 12 | 7 | — | 1 | (1 | ) | ||||||||||||||||||||||||||
Total changes in accumulated other comprehensive income (loss) | $ | (508 | ) | $ | 798 | $ | (503 | ) | $ | (50 | ) | $ | 361 | $ | (102 | ) | |||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts included in accumulated other comprehensive income (loss) as of December 31, 2014, expected to be recognized as components of net periodic expense in 2015 are as follows: | ||||||||||||||||||||||||||||||||
($ in millions) | Pension Benefits | Other | |||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||
Prior service cost (credit) | $ | 19 | $ | (20 | ) | ||||||||||||||||||||||||||||
Net loss | 86 | 3 | |||||||||||||||||||||||||||||||
Total | $ | 105 | $ | (17 | ) | ||||||||||||||||||||||||||||
Schedule of Assumptions Used and Health Care Cost Trend Rates | The weighted average assumptions used to determine the net periodic benefit costs were as follows: | ||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Cost for the Year Ended December 31: | |||||||||||||||||||||||||||||||||
Discount rate | 5.27 | % | 4.27 | % | 5.23 | % | |||||||||||||||||||||||||||
Expected long-term rate on plan assets | 7.5 | % | 7.5 | % | 8 | % | |||||||||||||||||||||||||||
Rate of compensation increase | 3.69 | % | 3.66 | % | 3.64 | % | |||||||||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Cost for the Year Ended December 31: | |||||||||||||||||||||||||||||||||
Discount rate | 5.03 | % | 4.02 | % | 4.94 | % | |||||||||||||||||||||||||||
Initial health care cost trend rate assumed for next year | 7.33 | % | 7.67 | % | 8 | % | |||||||||||||||||||||||||||
Gradually declining to a rate of | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||||||
Year in which the rate reaches the ultimate rate | 2022 | 2021 | 2018 | ||||||||||||||||||||||||||||||
The weighted average assumptions used to determine the benefit obligations were as follows: | |||||||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||||||
31-Dec | 31-Dec | ||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
Assumptions Used to Determine Benefit Obligations at December 31: | |||||||||||||||||||||||||||||||||
Discount rate | 4.34 | % | 5.27 | % | 4.22 | % | 5.03 | % | |||||||||||||||||||||||||
Rate of compensation increase | 3.64 | % | 3.69 | % | |||||||||||||||||||||||||||||
Initial health care cost trend rate assumed for next year | 7 | % | 7.33 | % | |||||||||||||||||||||||||||||
Gradually declining to a rate of | 5 | % | 5 | % | |||||||||||||||||||||||||||||
Year in which the rate reaches the ultimate rate | 2023 | 2022 | |||||||||||||||||||||||||||||||
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one percent change in the assumed health care cost trend rates would have the following effects on 2014 results: | ||||||||||||||||||||||||||||||||
1 Percentage Point | |||||||||||||||||||||||||||||||||
($ in millions) | Increase | Decrease | |||||||||||||||||||||||||||||||
Effect on postretirement benefit expense | $ | 3 | $ | (2 | ) | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligations | 28 | (27 | ) | ||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures, Cash Contributions | |||||||||||||||||||||||||||||||||
Year Ended December 31 | |||||||||||||||||||||||||||||||||
($ in millions) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Pension plans | |||||||||||||||||||||||||||||||||
Qualified minimum | $ | — | $ | — | $ | 64 | |||||||||||||||||||||||||||
Discretionary | |||||||||||||||||||||||||||||||||
Qualified | 123 | 301 | 172 | ||||||||||||||||||||||||||||||
Non-qualified | 3 | 4 | 3 | ||||||||||||||||||||||||||||||
Other benefit plans | 33 | 38 | 31 | ||||||||||||||||||||||||||||||
Total contributions | $ | 159 | $ | 343 | $ | 270 | |||||||||||||||||||||||||||
Schedule of Expected Benefit Payments and Prescription Drug Subsidy Receipts | The following table presents estimated future benefit payments, using the same assumptions used in determining the Company's benefit obligations as of December 31, 2014. Benefit payments depend on future employment and compensation levels, years of service, and mortality. Changes in any of these factors could significantly affect these estimated amounts. | ||||||||||||||||||||||||||||||||
Other Benefits | |||||||||||||||||||||||||||||||||
($ in millions) | Pension Benefits | Benefit Payments | Subsidy Receipts | ||||||||||||||||||||||||||||||
2015 | $ | 181 | $ | 36 | $ | — | |||||||||||||||||||||||||||
2016 | 197 | 38 | — | ||||||||||||||||||||||||||||||
2017 | 214 | 40 | — | ||||||||||||||||||||||||||||||
2018 | 232 | 42 | — | ||||||||||||||||||||||||||||||
2019 | 251 | 44 | — | ||||||||||||||||||||||||||||||
Years 2020 to 2024 | $ | 1,563 | $ | 243 | $ | 2 | |||||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | The fair value of the Company's retirement plan assets by asset category and by valuation hierarchy Level as described in Note 2: Summary of Significant Accounting Policies were as follows: | ||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
($ in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||
U.S. equities (1) | $ | 1,423 | $ | 467 | $ | 956 | $ | — | |||||||||||||||||||||||||
International equities (1) | 1,082 | 599 | 483 | — | |||||||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||||||||||
U.S. government | 237 | — | 237 | — | |||||||||||||||||||||||||||||
U.S. agency | 174 | — | 174 | — | |||||||||||||||||||||||||||||
Non-U.S. government | 88 | — | 88 | — | |||||||||||||||||||||||||||||
Investment grade (2) | 1,041 | — | 1,041 | — | |||||||||||||||||||||||||||||
Asset backed | 52 | — | 52 | — | |||||||||||||||||||||||||||||
Non-investment grade (3) | 45 | — | 45 | — | |||||||||||||||||||||||||||||
Cash and cash equivalents (4) | 42 | 5 | 37 | — | |||||||||||||||||||||||||||||
Hedge funds | 298 | — | — | 298 | |||||||||||||||||||||||||||||
Real estate fund | 247 | — | — | 247 | |||||||||||||||||||||||||||||
Other (5) | 2 | — | 2 | — | |||||||||||||||||||||||||||||
Total assets at fair value | $ | 4,731 | $ | 1,071 | $ | 3,115 | $ | 545 | |||||||||||||||||||||||||
(1) | U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in separately managed accounts or commingled trust funds. | ||||||||||||||||||||||||||||||||
-2 | Investment grade fixed income securities include corporate bonds rated Baa3/BBB- or higher by one or more rating agencies. | ||||||||||||||||||||||||||||||||
-3 | Non-investment grade fixed income securities include corporate bonds consistently rated below Baa3/BBB- by one or more rating agencies and a high yield commingled fund. | ||||||||||||||||||||||||||||||||
-4 | Cash and cash equivalents are highly liquid short-term investment funds and include net receivables and payables of the trust. These funds are available for immediate use to fund daily operations, execute investment policies, and serve as a temporary investment vehicle. The Company's plan asset allocation policy does not include cash. | ||||||||||||||||||||||||||||||||
-5 | Other investments include swaps, options, and insurance contracts. | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
($ in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Asset Category | |||||||||||||||||||||||||||||||||
Equity | |||||||||||||||||||||||||||||||||
U.S. equities (1) | $ | 1,546 | $ | 249 | $ | 1,297 | $ | — | |||||||||||||||||||||||||
International equities (1) | 860 | 382 | 478 | — | |||||||||||||||||||||||||||||
Fixed Income | |||||||||||||||||||||||||||||||||
U.S. government | 156 | — | 156 | — | |||||||||||||||||||||||||||||
U.S. agency | 180 | — | 180 | — | |||||||||||||||||||||||||||||
Non-U.S. government | 66 | — | 66 | — | |||||||||||||||||||||||||||||
Investment grade (2) | 871 | — | 871 | — | |||||||||||||||||||||||||||||
Asset backed | 65 | — | 65 | — | |||||||||||||||||||||||||||||
Non-investment grade (3) | 39 | — | 39 | — | |||||||||||||||||||||||||||||
Cash and cash equivalents (4) | 75 | 2 | 73 | — | |||||||||||||||||||||||||||||
Hedge funds | 257 | — | — | 257 | |||||||||||||||||||||||||||||
Real estate fund | 188 | — | — | 188 | |||||||||||||||||||||||||||||
Other (5) | 7 | — | 7 | — | |||||||||||||||||||||||||||||
Total assets at fair value | $ | 4,310 | $ | 633 | $ | 3,232 | $ | 445 | |||||||||||||||||||||||||
(1) | U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in separately managed accounts or commingled trust funds. | ||||||||||||||||||||||||||||||||
-2 | Investment grade fixed income securities include corporate bonds rated Baa3/BBB- or higher by one or more rating agencies. | ||||||||||||||||||||||||||||||||
-3 | Non-investment grade fixed income securities include corporate bonds consistently rated below Baa3/BBB- by one or more rating agencies and a high yield commingled fund. | ||||||||||||||||||||||||||||||||
-4 | Cash and cash equivalents are highly liquid short-term investment funds and include net receivables and payables of the trust. These funds are available for immediate use to fund daily operations, execute investment policies, and serve as a temporary investment vehicle. The Company's plan asset allocation policy does not include cash. | ||||||||||||||||||||||||||||||||
-5 | Other investments include swaps, options, collateral, and insurance contracts. | ||||||||||||||||||||||||||||||||
The plans' Investment Committee has set the minimum and maximum permitted values for each asset class in the Company's pension plan master trust for the year ended December 31, 2014, as follows: | |||||||||||||||||||||||||||||||||
Range | |||||||||||||||||||||||||||||||||
U.S. equities | 20 | - | 42% | ||||||||||||||||||||||||||||||
International equities | 15 | - | 33% | ||||||||||||||||||||||||||||||
Fixed income securities | 25 | - | 50% | ||||||||||||||||||||||||||||||
Alternative investments | 5 | - | 15% | ||||||||||||||||||||||||||||||
Schedule of Level Three Defined Benefit Plan Assets Roll Forward | The following tables summarize the changes in Level 3 retirement plan assets measured at fair value for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Return on plan assets | |||||||||||||||||||||||||||||||||
Attributable to Assets Held at December 31, 2014 | |||||||||||||||||||||||||||||||||
Fair Value at December 31, 2013 | Attributable to Assets Sold | Transfers | Fair Value at December 31, 2014 | ||||||||||||||||||||||||||||||
Into | (Out) of | ||||||||||||||||||||||||||||||||
($ in millions) | Purchases | Sales | Level 3 | Level 3 | |||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 257 | $ | 19 | $ | — | $ | 22 | $ | — | $ | — | $ | — | $ | 298 | |||||||||||||||||
Real estate fund | 188 | 24 | — | 35 | — | — | — | 247 | |||||||||||||||||||||||||
Total Level 3 fair value | $ | 445 | $ | 43 | $ | — | $ | 57 | $ | — | $ | — | $ | — | $ | 545 | |||||||||||||||||
Return on plan assets | |||||||||||||||||||||||||||||||||
Attributable to Assets Held at December 31, 2013 | |||||||||||||||||||||||||||||||||
Fair Value at December 31, 2012 | Attributable to Assets Sold | Transfers | Fair Value at December 31, 2013 | ||||||||||||||||||||||||||||||
Into | (Out) of | ||||||||||||||||||||||||||||||||
($ in millions) | Purchases | Sales | Level 3 | Level 3 | |||||||||||||||||||||||||||||
Asset Category: | |||||||||||||||||||||||||||||||||
Hedge funds | $ | 181 | $ | 16 | $ | — | $ | 60 | $ | — | $ | — | $ | — | $ | 257 | |||||||||||||||||
Real estate fund | 162 | 26 | — | — | — | — | — | 188 | |||||||||||||||||||||||||
Total Level 3 fair value | $ | 343 | $ | 42 | $ | — | $ | 60 | $ | — | $ | — | $ | — | $ | 445 | |||||||||||||||||
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Status of Stock Awards | The stock award activity for the years ended December 31, 2014, 2013 and 2012, was as follows: | |||||||||||||
Stock Awards | Weighted-Average | Weighted | ||||||||||||
(in thousands) | Grant Date Fair | Average | ||||||||||||
Value | Remaining | |||||||||||||
Contractual Term | ||||||||||||||
Outstanding at December 31, 2011 | 2,090 | $ | 39.69 | 1.8 years | ||||||||||
Granted | 581 | 36.04 | ||||||||||||
Adjustment due to performance | 164 | 37.25 | ||||||||||||
Vested | (881 | ) | 37.27 | |||||||||||
Forfeited | (53 | ) | 40.01 | |||||||||||
Outstanding at December 31, 2012 | 1,901 | 39.92 | 1.4 years | |||||||||||
Granted | 456 | 46.51 | ||||||||||||
Adjustment due to performance | 315 | 41.41 | ||||||||||||
Vested | (931 | ) | 41.41 | |||||||||||
Forfeited | (68 | ) | 40.23 | |||||||||||
Outstanding at December 31, 2013 | 1,673 | 40.92 | 1.0 year | |||||||||||
Granted | 246 | 98.33 | ||||||||||||
Adjustment due to performance | 918 | 41.45 | ||||||||||||
Vested | (1,510 | ) | 41.45 | |||||||||||
Forfeited | (16 | ) | 45.19 | |||||||||||
Outstanding at December 31, 2014 | 1,311 | $ | 51.23 | 0.7 years | ||||||||||
Schedule of Status of Stock Options | The stock option activity for the years ended December 31, 2014, 2013 and 2012, was as follows: | |||||||||||||
Shares Under | Weighted- | Weighted- Average | Aggregate | |||||||||||
Option | Average | Remaining | Intrinsic | |||||||||||
(in thousands) | Exercise Price | Contractual Term | Value | |||||||||||
(in years) | ($ in millions) | |||||||||||||
Outstanding at December 31, 2011 | 1,583 | $ | 33.27 | 2.9 years | $ | (3 | ) | |||||||
Exercised | (405 | ) | 33.04 | |||||||||||
Canceled and Forfeited | (12 | ) | 34.01 | |||||||||||
Outstanding at December 31, 2012 | 1,166 | 34.67 | 2.6 years | 12 | ||||||||||
Exercised | (346 | ) | 29.66 | |||||||||||
Canceled and Forfeited | (1 | ) | 28.51 | |||||||||||
Outstanding at December 31, 2013 | 819 | 35.01 | 2.1 years | 45 | ||||||||||
Exercised | (174 | ) | 31.11 | |||||||||||
Canceled and Forfeited | (1 | ) | 31.76 | |||||||||||
Outstanding at December 31, 2014 | 644 | $ | 36.06 | 1.4 years | $ | 49 | ||||||||
Vested at December 31, 2014 | 644 | $ | 36.06 | 1.4 years | $ | 49 | ||||||||
Unaudited_Selected_Quarterly_D1
Unaudited Selected Quarterly Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Unaudited Quarterly Financial Results | Unaudited quarterly financial results for the years ended December 31, 2014 and 2013, are set forth in the following tables: | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
($ in millions, except per share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr(1) | |||||||||||||
Sales and service revenues | $ | 1,594 | $ | 1,719 | $ | 1,717 | $ | 1,927 | |||||||||
Operating income (loss) | 159 | 181 | 171 | 144 | |||||||||||||
Earnings (loss) before income taxes | 132 | 152 | 144 | 79 | |||||||||||||
Net earnings (loss) | 90 | 100 | 96 | 52 | |||||||||||||
Dividends declared per share | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.4 | |||||||||
Basic earnings (loss) per share | $ | 1.83 | $ | 2.05 | $ | 1.97 | $ | 1.07 | |||||||||
Diluted earnings (loss) per share | $ | 1.81 | $ | 2.04 | $ | 1.96 | $ | 1.05 | |||||||||
Year Ended December 31, 2013 | |||||||||||||||||
($ in millions, except per share amounts) | 1st Qtr | 2nd Qtr | 3rd Qtr | 4th Qtr | |||||||||||||
Sales and service revenues | $ | 1,562 | $ | 1,683 | $ | 1,637 | $ | 1,938 | |||||||||
Operating income (loss) | 95 | 116 | 127 | 174 | |||||||||||||
Earnings (loss) before income taxes | 65 | 87 | 99 | 143 | |||||||||||||
Net earnings (loss) | 44 | 57 | 69 | 91 | |||||||||||||
Dividends declared per share | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.2 | |||||||||
Basic earnings (loss) per share | $ | 0.88 | $ | 1.14 | $ | 1.38 | $ | 1.86 | |||||||||
Diluted earnings (loss) per share | $ | 0.87 | $ | 1.12 | $ | 1.36 | $ | 1.82 | |||||||||
1 In the fourth quarter of 2014, the Company recorded a $47 million goodwill impairment charge. |
Subsidiary_Gurantors_Tables
Subsidiary Gurantors (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||
Condensed Consolidating Statements of Operations and Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Sales and service revenues | |||||||||||||||||||||
Product sales | $ | — | $ | 5,712 | $ | — | $ | — | $ | 5,712 | |||||||||||
Service revenues | — | 1,202 | 63 | (20 | ) | 1,245 | |||||||||||||||
Total sales and service revenues | — | 6,914 | 63 | (20 | ) | 6,957 | |||||||||||||||
Cost of sales and service revenues | |||||||||||||||||||||
Cost of product sales | — | 4,489 | — | — | 4,489 | ||||||||||||||||
Cost of service revenues | — | 1,018 | 53 | (20 | ) | 1,051 | |||||||||||||||
Income (loss) from operating investments, net | — | 11 | — | — | 11 | ||||||||||||||||
General and administrative expenses | — | 718 | 8 | — | 726 | ||||||||||||||||
Goodwill impairment | — | 47 | — | — | 47 | ||||||||||||||||
Operating income (loss) | — | 653 | 2 | — | 655 | ||||||||||||||||
Interest expense | (142 | ) | (7 | ) | — | — | (149 | ) | |||||||||||||
Other income, net | 1 | — | — | — | 1 | ||||||||||||||||
Equity in earnings (loss) of subsidiaries | 433 | — | — | (433 | ) | — | |||||||||||||||
Earnings (loss) before income taxes | 292 | 646 | 2 | (433 | ) | 507 | |||||||||||||||
Federal income taxes | (46 | ) | 215 | — | — | 169 | |||||||||||||||
Net earnings (loss) | $ | 338 | $ | 431 | $ | 2 | $ | (433 | ) | $ | 338 | ||||||||||
Other comprehensive income (loss), net of tax | (341 | ) | (341 | ) | — | 341 | (341 | ) | |||||||||||||
Comprehensive income (loss) | $ | (3 | ) | $ | 90 | $ | 2 | $ | (92 | ) | $ | (3 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Sales and service revenues | |||||||||||||||||||||
Product sales | $ | — | $ | 5,801 | $ | — | $ | — | $ | 5,801 | |||||||||||
Service revenues | — | 1,019 | 24 | (24 | ) | 1,019 | |||||||||||||||
Total sales and service revenues | — | 6,820 | 24 | (24 | ) | 6,820 | |||||||||||||||
Cost of sales and service revenues | |||||||||||||||||||||
Cost of product sales | — | 4,695 | — | — | 4,695 | ||||||||||||||||
Cost of service revenues | — | 888 | 24 | (24 | ) | 888 | |||||||||||||||
Income (loss) from operating investments, net | — | 14 | — | — | 14 | ||||||||||||||||
General and administrative expenses | — | 739 | — | — | 739 | ||||||||||||||||
Operating income (loss) | — | 512 | — | — | 512 | ||||||||||||||||
Interest expense | (110 | ) | (8 | ) | — | — | (118 | ) | |||||||||||||
Equity in earnings (loss) of subsidiaries | 334 | — | — | (334 | ) | — | |||||||||||||||
Earnings (loss) before income taxes | 224 | 504 | — | (334 | ) | 394 | |||||||||||||||
Federal income taxes | (37 | ) | 170 | — | — | 133 | |||||||||||||||
Net earnings (loss) | $ | 261 | $ | 334 | $ | — | $ | (334 | ) | $ | 261 | ||||||||||
Other comprehensive income (loss), net of tax | 705 | 705 | — | (705 | ) | 705 | |||||||||||||||
Comprehensive income (loss) | $ | 966 | $ | 1,039 | $ | — | $ | (1,039 | ) | $ | 966 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Sales and service revenues | |||||||||||||||||||||
Product sales | $ | — | $ | 5,755 | $ | — | $ | — | $ | 5,755 | |||||||||||
Service revenues | — | 953 | 19 | (19 | ) | 953 | |||||||||||||||
Total sales and service revenues | — | 6,708 | 19 | (19 | ) | 6,708 | |||||||||||||||
Cost of sales and service revenues | |||||||||||||||||||||
Cost of product sales | — | 4,827 | — | — | 4,827 | ||||||||||||||||
Cost of service revenues | — | 802 | 19 | (19 | ) | 802 | |||||||||||||||
Income (loss) from operating investments, net | — | 18 | — | — | 18 | ||||||||||||||||
General and administrative expenses | — | 739 | — | — | 739 | ||||||||||||||||
Operating income (loss) | — | 358 | — | — | 358 | ||||||||||||||||
Interest expense | (111 | ) | (6 | ) | — | — | (117 | ) | |||||||||||||
Equity in earnings (loss) of subsidiaries | 213 | — | — | (213 | ) | — | |||||||||||||||
Earnings (loss) before income taxes | 102 | 352 | — | (213 | ) | 241 | |||||||||||||||
Federal income taxes | (44 | ) | 139 | — | — | 95 | |||||||||||||||
Net earnings (loss) | $ | 146 | $ | 213 | $ | — | $ | (213 | ) | $ | 146 | ||||||||||
Other comprehensive income (loss), net of tax | (364 | ) | (364 | ) | — | 364 | (364 | ) | |||||||||||||
Comprehensive income (loss) | $ | (218 | ) | $ | (151 | ) | $ | — | $ | 151 | $ | (218 | ) | ||||||||
Condensed Consolidating Statement of Financial Position | CONDENSED CONSOLIDATING STATEMENTS OF FINANCIAL POSITION | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 980 | $ | 4 | $ | 6 | $ | — | $ | 990 | |||||||||||
Accounts receivable, net | — | 1,022 | 16 | — | 1,038 | ||||||||||||||||
Inventoried costs, net | — | 339 | — | — | 339 | ||||||||||||||||
Deferred income taxes | — | 129 | — | — | 129 | ||||||||||||||||
Prepaid expenses and other current assets | 1 | 48 | 5 | (4 | ) | 50 | |||||||||||||||
Total current assets | 981 | 1,542 | 27 | (4 | ) | 2,546 | |||||||||||||||
Property, plant, and equipment, net | — | 1,790 | 2 | — | 1,792 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Goodwill | — | 1,026 | — | — | 1,026 | ||||||||||||||||
Other purchased intangibles, net of accumulated amortization | — | 547 | — | — | 547 | ||||||||||||||||
Pension plan asset | — | 17 | — | — | 17 | ||||||||||||||||
Long-term deferred tax assets | — | 212 | — | — | 212 | ||||||||||||||||
Miscellaneous other assets | 30 | 99 | — | — | 129 | ||||||||||||||||
Investment in subsidiaries | 3,421 | — | — | (3,421 | ) | — | |||||||||||||||
Intercompany receivables | — | 1,469 | — | (1,469 | ) | — | |||||||||||||||
Total other assets | 3,451 | 3,370 | — | (4,890 | ) | 1,931 | |||||||||||||||
Total assets | $ | 4,432 | $ | 6,702 | $ | 29 | $ | (4,894 | ) | $ | 6,269 | ||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||
Trade accounts payable | $ | — | $ | 265 | $ | 4 | $ | — | $ | 269 | |||||||||||
Accrued employees’ compensation | — | 247 | 1 | — | 248 | ||||||||||||||||
Current portion of long-term debt | 108 | — | — | — | 108 | ||||||||||||||||
Current portion of workers’ compensation liabilities | — | 221 | — | — | 221 | ||||||||||||||||
Current portion of postretirement plan liabilities | — | 143 | — | — | 143 | ||||||||||||||||
Advance payments and billings in excess of revenues | — | 74 | — | — | 74 | ||||||||||||||||
Other current liabilities | 15 | 234 | 4 | (4 | ) | 249 | |||||||||||||||
Total current liabilities | 123 | 1,184 | 9 | (4 | ) | 1,312 | |||||||||||||||
Long-term debt | 1,488 | 104 | — | — | 1,592 | ||||||||||||||||
Other postretirement plan liabilities | — | 507 | — | — | 507 | ||||||||||||||||
Pension plan liabilities | — | 939 | — | — | 939 | ||||||||||||||||
Workers’ compensation liabilities | — | 449 | — | — | 449 | ||||||||||||||||
Deferred tax liabilities | — | — | — | — | — | ||||||||||||||||
Other long-term liabilities | — | 105 | — | — | 105 | ||||||||||||||||
Intercompany liabilities | 1,456 | — | 13 | (1,469 | ) | — | |||||||||||||||
Total liabilities | 3,067 | 3,288 | 22 | (1,473 | ) | 4,904 | |||||||||||||||
Stockholders’ equity | 1,365 | 3,414 | 7 | (3,421 | ) | 1,365 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,432 | $ | 6,702 | $ | 29 | $ | (4,894 | ) | $ | 6,269 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF FINANCIAL POSITION | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,042 | $ | — | $ | 1 | $ | — | $ | 1,043 | |||||||||||
Accounts receivable, net | — | 1,123 | — | — | 1,123 | ||||||||||||||||
Inventoried costs, net | — | 311 | — | — | 311 | ||||||||||||||||
Deferred income taxes | — | 170 | — | — | 170 | ||||||||||||||||
Prepaid expenses and other current assets | — | 30 | 5 | (6 | ) | 29 | |||||||||||||||
Total current assets | 1,042 | 1,634 | 6 | (6 | ) | 2,676 | |||||||||||||||
Property, plant, and equipment, net | — | 1,897 | — | — | 1,897 | ||||||||||||||||
Other Assets | |||||||||||||||||||||
Goodwill | — | 881 | — | — | 881 | ||||||||||||||||
Other purchased intangibles, net of accumulated amortization | — | 528 | — | — | 528 | ||||||||||||||||
Pension plan assets | — | 124 | — | — | 124 | ||||||||||||||||
Miscellaneous other assets | 35 | 84 | — | — | 119 | ||||||||||||||||
Investment in subsidiaries | 3,295 | — | — | (3,295 | ) | — | |||||||||||||||
Intercompany receivables | — | 1,152 | — | (1,152 | ) | — | |||||||||||||||
Total other assets | 3,330 | 2,769 | — | (4,447 | ) | 1,652 | |||||||||||||||
Total assets | $ | 4,372 | $ | 6,300 | $ | 6 | $ | (4,453 | ) | $ | 6,225 | ||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||
Trade accounts payable | $ | — | $ | 337 | $ | — | $ | — | $ | 337 | |||||||||||
Accrued employees’ compensation | — | 230 | — | — | 230 | ||||||||||||||||
Current portion of long-term debt | 79 | — | — | — | 79 | ||||||||||||||||
Current portion of workers’ compensation liabilities | — | 230 | — | — | 230 | ||||||||||||||||
Current portion of postretirement plan liabilities | — | 139 | — | — | 139 | ||||||||||||||||
Advance payments and billings in excess of revenues | — | 115 | — | — | 115 | ||||||||||||||||
Other current liabilities | 25 | 237 | 6 | (6 | ) | 262 | |||||||||||||||
Total current liabilities | 104 | 1,288 | 6 | (6 | ) | 1,392 | |||||||||||||||
Long-term debt | 1,595 | 105 | — | — | 1,700 | ||||||||||||||||
Other postretirement plan liabilities | — | 477 | — | — | 477 | ||||||||||||||||
Pension plan liabilities | — | 529 | — | — | 529 | ||||||||||||||||
Workers’ compensation liabilities | — | 419 | — | — | 419 | ||||||||||||||||
Deferred tax liabilities | — | 83 | — | — | 83 | ||||||||||||||||
Other long-term liabilities | — | 104 | — | — | 104 | ||||||||||||||||
Intercompany liabilities | 1,152 | — | — | (1,152 | ) | — | |||||||||||||||
Total liabilities | 2,851 | 3,005 | 6 | (1,158 | ) | 4,704 | |||||||||||||||
Stockholders’ equity | 1,521 | 3,295 | — | (3,295 | ) | 1,521 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,372 | $ | 6,300 | $ | 6 | $ | (4,453 | ) | $ | 6,225 | ||||||||||
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (57 | ) | $ | 779 | $ | (6 | ) | $ | — | $ | 716 | |||||||||
Investing Activities | |||||||||||||||||||||
Additions to property, plant, and equipment | — | (165 | ) | — | — | (165 | ) | ||||||||||||||
Acquisitions of businesses, net of cash received | — | (275 | ) | 3 | — | (272 | ) | ||||||||||||||
Proceeds from insurance settlement | — | — | — | — | — | ||||||||||||||||
Net funding from (to) parent | — | (312 | ) | 8 | 304 | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | (752 | ) | 11 | 304 | (437 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||
Proceeds from issuance of long-term debt | 600 | — | — | — | 600 | ||||||||||||||||
Repayment of long-term debt | (679 | ) | — | — | — | (679 | ) | ||||||||||||||
Debt issuance costs | (12 | ) | — | — | — | (12 | ) | ||||||||||||||
Tender premium and fees related to early extinguishment of debt | (31 | ) | — | — | — | (31 | ) | ||||||||||||||
Repurchases of common stock | (138 | ) | — | — | — | (138 | ) | ||||||||||||||
Dividends paid | (49 | ) | — | — | — | (49 | ) | ||||||||||||||
Employee taxes on certain share-based payment arrangements | — | (64 | ) | — | — | (64 | ) | ||||||||||||||
Proceeds from stock option exercises | — | 2 | — | — | 2 | ||||||||||||||||
Excess tax benefit related to stock-based compensation | — | 39 | — | — | 39 | ||||||||||||||||
Net funding from (to) subsidiary | 304 | — | — | (304 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | (5 | ) | (23 | ) | — | (304 | ) | (332 | ) | ||||||||||||
Change in cash and cash equivalents | (62 | ) | 4 | 5 | — | (53 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 1,042 | — | 1 | — | 1,043 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 980 | $ | 4 | $ | 6 | $ | — | $ | 990 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (72 | ) | $ | 308 | $ | — | $ | — | $ | 236 | ||||||||||
Investing Activities | |||||||||||||||||||||
Additions to property, plant, and equipment | — | (139 | ) | — | — | (139 | ) | ||||||||||||||
Proceeds from insurance settlement | — | 58 | — | — | 58 | ||||||||||||||||
Net funding from (to) parent | — | (251 | ) | — | 251 | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | (332 | ) | — | 251 | (81 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||
Repayment of long-term debt | (51 | ) | — | — | — | (51 | ) | ||||||||||||||
Debt issuance costs | (5 | ) | — | — | — | (5 | ) | ||||||||||||||
Repurchases of common stock | (119 | ) | — | — | — | (119 | ) | ||||||||||||||
Dividends paid | (25 | ) | — | — | — | (25 | ) | ||||||||||||||
Proceeds from stock option exercises | 7 | — | — | — | 7 | ||||||||||||||||
Excess tax benefit related to stock-based compensation | — | 24 | — | — | 24 | ||||||||||||||||
Net funding from (to) subsidiary | 251 | — | — | (251 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | 58 | 24 | — | (251 | ) | (169 | ) | ||||||||||||||
Change in cash and cash equivalents | (14 | ) | — | — | — | (14 | ) | ||||||||||||||
Cash and cash equivalents, beginning of period | 1,056 | — | 1 | — | 1,057 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,042 | $ | — | $ | 1 | $ | — | $ | 1,043 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
($ in millions) | Huntington Ingalls Industries, Inc. | Subsidiary Guarantors | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (62 | ) | $ | 393 | $ | 1 | $ | — | $ | 332 | ||||||||||
Investing Activities | |||||||||||||||||||||
Additions to property, plant, and equipment | — | (162 | ) | — | — | (162 | ) | ||||||||||||||
Net funding from (to) parent | — | (231 | ) | — | 231 | — | |||||||||||||||
Net cash provided by (used in) investing activities | — | (393 | ) | — | 231 | (162 | ) | ||||||||||||||
Financing Activities | |||||||||||||||||||||
Repayment of long-term debt | (29 | ) | — | — | — | (29 | ) | ||||||||||||||
Repurchases of common stock | (1 | ) | — | — | — | (1 | ) | ||||||||||||||
Dividends paid | (5 | ) | — | — | — | (5 | ) | ||||||||||||||
Proceeds from stock option exercises | 7 | — | — | — | 7 | ||||||||||||||||
Net funding from (to) subsidiary | 231 | — | — | (231 | ) | — | |||||||||||||||
Net cash provided by (used in) financing activities | 203 | — | — | (231 | ) | (28 | ) | ||||||||||||||
Change in cash and cash equivalents | 141 | — | 1 | — | 142 | ||||||||||||||||
Cash and cash equivalents, beginning of period | 915 | — | — | — | 915 | ||||||||||||||||
Cash and cash equivalents, end of period | $ | 1,056 | $ | — | $ | 1 | $ | — | $ | 1,057 | |||||||||||
Description_of_Business_Detail
Description of Business (Details) | 12 Months Ended |
Dec. 31, 2014 | |
segments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies Schedule of Concentration Risk (Details) (Sales Revenue, Net [Member], Zero profit margin contracts [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Sales Revenue, Net [Member] | Zero profit margin contracts [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 1.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Independent research and development | $18 | $22 | $21 |
Assets held in rabbi trusts | 45 | 40 | |
Valuation allowance | 14 | 12 | |
Percent likliehood of unfavorable settlement of uncertain income tax benefit | 50.00% | ||
Maturity period of cash equivalents | 90 days | ||
Workers' compensation discount rate | 2.48% | 2.16% | |
Workers' compensation benefit obligations on an undiscounted basis | 846 | 792 | |
Amortization period of prior service costs | 10 years | ||
Amortization threshold for actuarial gains (losses) | 10.00% | ||
Amortization period of actuarial gains (losses) | 10 years | ||
Asset Retirement Obligation, Roll Forward Analysis | |||
Balance, beginning | 25 | 25 | 25 |
Obligation relating to the future retirement of a facility | 1 | ||
Revision of estimate | -2 | -3 | |
Accretion expense | -1 | 2 | |
Balance, ending | 22 | 25 | 25 |
Contracts Accounted for under Percentage of Completion | |||
Change in Accounting Estimate | |||
Increase (decrease) in operating income due to net cumulative catch-up adjustments | $222 | $113 | $62 |
Increase (decrease) in diluted earnings per share due to net cumulative catch-up adjustments | $2.93 | $1.46 | $0.80 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Useful Lives of Depreciable Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Land improvements | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Land improvements | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 40 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 60 years |
Capitalized software costs | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Capitalized software costs | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 9 years |
Machinery and other equipment | Minimum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 2 years |
Machinery and other equipment | Maximum | |
Property, Plant and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 45 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies Schedule of Related Party Transaction (Details) (Northrop Grumman [Member], Post-Spin-Off [Member], Transition Services Agreement [Member], Former Parent [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Northrop Grumman [Member] | Post-Spin-Off [Member] | Transition Services Agreement [Member] | Former Parent [Member] | |
Related Party Transaction [Line Items] | |
Related Party Transaction, Expenses from Transactions with Related Party | $20 |
Avondale_Details
Avondale (Details) (Total, Avondale Wind Down, USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Total | Avondale Wind Down | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated total costs | $284 | |||
Estimated total costs, initial estimate | 310 | |||
Amount in question by DCAA | 25 | |||
Amount in question by DCAA, percent of total submitted | 8.00% | |||
Restructuring and Related Costs, Capitalized in Inventory | 212 | 180 | ||
Accounts Receivable, Amounts Related to Restructuring | 48 | |||
Restructuring and Related Costs, Amortized | 57 | |||
Restructuring Reserve [Roll Forward] | ||||
Beginning balance | 14 | 24 | 50 | |
Payments | -15 | -27 | -50 | |
Adjustments | 1 | 17 | 24 | |
Ending balance | $14 | $24 |
Gulfport_Details
Gulfport (Details) (Facility Closing, Gulfport, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Facility Closing | Gulfport | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated total costs | $57 | |
Expected accelerated depreciation cost | 52 | |
Other expected restructuring cost | 5 | |
Accounts Receivable, Amounts Related to Restructuring | 37 | 17 |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $22 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Business Acquisition [Line Items] | |
Goodwill, Acquired During Period | $192 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 90 |
UniversalPegasus International [Member] | |
Business Acquisition [Line Items] | |
Payments to Acquire Businesses, Gross | 225 |
Cash Acquired from Acquisition | 5 |
Goodwill, Acquired During Period | 150 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 41 |
The S.M. Stoller Corporation [Member] | |
Business Acquisition [Line Items] | |
Payments to Acquire Businesses, Gross | 47 |
Cash Acquired from Acquisition | 6 |
Goodwill, Acquired During Period | 42 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $6 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | ||||||||||||||
Common stock, shares issued | 51,500,000 | 50,500,000 | 51,500,000 | 50,500,000 | ||||||||||
Common stock, shares outstanding | 48,300,000 | 48,700,000 | 48,300,000 | 48,700,000 | ||||||||||
Amount authorized for stock repurchase program | $600 | $300 | $600 | $300 | $150 | |||||||||
Repurchased shares of treasury stock | 1,407,729 | 1,722,991 | 31,008 | |||||||||||
Treasury stock activity | 138 | 119 | 1 | |||||||||||
Dividends declared per share | $0.40 | $0.20 | $0.10 | $0.40 | $0.20 | $0.20 | $0.20 | $0.20 | $0.10 | $0.10 | $0.10 | $1 | $0.50 | $0.10 |
Dividends declared | 49 | 25 | ||||||||||||
Dividends declared - APIC | $5 |
Stockholders_Equity_Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance, beginning | ($521) | ($1,226) | ($862) | |||
Other comprehensive income (loss) before reclassifications | -603 | 1,032 | -700 | |||
Amortization of prior service cost (credit) | -7 | [1] | -3 | [1] | 5 | [1] |
Amortization of net actuarial loss (gain) | 52 | [1] | 134 | [1] | 90 | [1] |
Tax benefit (expense) for items of other comprehensive income | 217 | -458 | 241 | |||
Net current period other comprehensive income (loss) | -341 | 705 | -364 | |||
Balance, ending | -862 | -521 | -1,226 | |||
Income tax expense (benefit) | 169 | 133 | 95 | |||
Defined Benefit Plans | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Balance, beginning | -523 | -1,226 | -862 | |||
Other comprehensive income (loss) before reclassifications | -603 | 1,028 | -700 | |||
Amortization of prior service cost (credit) | -7 | [1] | -3 | [1] | 5 | [1] |
Amortization of net actuarial loss (gain) | 52 | [1] | 134 | [1] | 90 | [1] |
Tax benefit (expense) for items of other comprehensive income | 217 | -456 | 241 | |||
Net current period other comprehensive income (loss) | -341 | 703 | -364 | |||
Balance, ending | -864 | -523 | -1,226 | |||
Unrealized Investment Gain (Loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other comprehensive income (loss) before reclassifications | 4 | |||||
Tax benefit (expense) for items of other comprehensive income | -2 | |||||
Net current period other comprehensive income (loss) | 2 | |||||
Balance, ending | 2 | 2 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Income tax expense (benefit) | $16 | $46 | $33 | |||
[1] | These accumulated comprehensive income (loss) components are included in the computation of net periodic benefit cost. See Note 18: Employee Pension and Other Postretirement Benefits. The tax expense associated with amounts reclassified from accumulated other comprehensive income (loss) for the years ended DecemberB 31, 2014, 2013 and 2012, was $16 million, $46 million, and $33 million, respectively. |
Earnings_Per_Share_Calculation
Earnings Per Share - Calculation of Detailed and Diluted Earnings per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||||||||||
Net earnings (loss) | $52 | [1] | $96 | $100 | $90 | $91 | $69 | $57 | $44 | $338 | $261 | $146 |
Weighted-average common shares outstanding (in shares) | 48.8 | 49.7 | 49.4 | |||||||||
Net effect of dilutive | 0.5 | 0.7 | 0.7 | |||||||||
Dilutive weighted-average common shares outstanding | 49.3 | 50.4 | 50.1 | |||||||||
Earnings (loss) per share - basic | $1.07 | [1] | $1.97 | $2.05 | $1.83 | $1.86 | $1.38 | $1.14 | $0.88 | $6.93 | $5.25 | $2.96 |
Earnings (loss) per share - diluted | $1.05 | [1] | $1.96 | $2.04 | $1.81 | $1.82 | $1.36 | $1.12 | $0.87 | $6.86 | $5.18 | $2.91 |
[1] | 1 In the fourth quarter of 2014, the Company recorded a $47 million goodwill impairment charge. |
Earnings_Per_Share_Narrative_D
Earnings Per Share - Narrative (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Options | |||
Securities Excluded from Computation of Earnings Per Share | |||
Securities excluded from computation of earnings per share | 0.4 | 0.5 | 0.9 |
Restricted stock rights | |||
Securities Excluded from Computation of Earnings Per Share | |||
Securities excluded from computation of earnings per share | 0.3 | 0.4 | |
Restricted performance stock rights | |||
Securities Excluded from Computation of Earnings Per Share | |||
Securities excluded from computation of earnings per share | 1.1 | 1 | 1.3 |
Segment_Information_Segment_In
Segment Information Segment Information Narrative (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
segments | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 3 |
Goodwill Impairment | $47 |
Segment_Operating_Profit_Loss_
Segment Operating Profit (Loss) Reconciliation (Table) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Sales and service revenues | $1,927 | $1,717 | $1,719 | $1,594 | $1,938 | $1,637 | $1,683 | $1,562 | $6,957 | $6,820 | $6,708 | |
Operating income (loss) | 144 | [1] | 171 | 181 | 159 | 174 | 127 | 116 | 95 | 655 | 512 | 358 |
Ingalls [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Sales and service revenues | 2,286 | 2,441 | 2,532 | |||||||||
Operating income (loss) | 229 | 165 | 85 | |||||||||
Newport News Shipbuilding [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Sales and service revenues | 4,536 | 4,382 | 4,180 | |||||||||
Operating income (loss) | 415 | 402 | 372 | |||||||||
Other [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Sales and service revenues | 137 | |||||||||||
Operating income (loss) | -59 | |||||||||||
Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Sales and service revenues | -2 | -3 | -4 | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Operating income (loss) | 585 | 567 | 457 | |||||||||
Segment Reconciling Items [Member] | ||||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
FAS/CAS Adjustment | 72 | -61 | -80 | |||||||||
Deferred state income taxes | ($2) | $6 | ($19) | |||||||||
[1] | 1 In the fourth quarter of 2014, the Company recorded a $47 million goodwill impairment charge. |
Segment_Information_Segment_As
Segment Information Segment Assets Reconciliation (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $6,269 | $6,225 | $6,392 |
Ingalls [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 1,452 | 1,663 | 1,620 |
Newport News Shipbuilding [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 3,155 | 3,111 | 3,068 |
Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 210 | ||
Corporate Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $1,452 | $1,451 | $1,704 |
Segment_Information_Segment_Ot
Segment Information Segment Other Significant Items Reconciliation (Table) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Capital Expenditures | $165 | $139 | $162 | |||
Depreciation and amortization | 194 | [1] | 226 | [1] | 184 | [1] |
Ingalls [Member] | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Capital Expenditures | 53 | 44 | 37 | |||
Depreciation and amortization | 81 | [1] | 125 | [1] | 89 | [1] |
Newport News Shipbuilding [Member] | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Capital Expenditures | 109 | 93 | 125 | |||
Depreciation and amortization | 105 | [1] | 100 | [1] | 95 | [1] |
Other [Member] | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Capital Expenditures | 3 | |||||
Depreciation and amortization | 8 | [1] | ||||
Corporate Segment [Member] | ||||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||||
Capital Expenditures | 2 | |||||
Depreciation and amortization | $1 | [1] | ||||
[1] | Excluding amortization of debt issuance costs |
Accounts_Receivable_Net_Detail
Accounts Receivable, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable | ||
Accounts receivable expected to be collected in 2016 | $62 | |
Accounts receivable expected to be collected in and after 2017 | 200 | |
Total accounts receivable | 1,045 | 1,130 |
Allowance for doubtful accounts | -7 | -7 |
Total accounts receivable, net | 1,038 | 1,123 |
Due From U.S. Government | ||
Accounts, Notes, Loans and Financing Receivable | ||
Amounts billed | 180 | 143 |
Recoverable costs and accrued profit on progress completed - unbilled | 766 | 944 |
Total accounts receivable | 946 | 1,087 |
Due From Other Customers | ||
Accounts, Notes, Loans and Financing Receivable | ||
Amounts billed | 64 | 28 |
Recoverable costs and accrued profit on progress completed - unbilled | 35 | 15 |
Total accounts receivable | $99 | $43 |
Inventoried_Costs_Net_Details
Inventoried Costs, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Production costs of contracts in process | $248 | $218 |
General and administrative expenses | 2 | |
Inventoried costs | 248 | 220 |
Inventoried costs, net of progress payments | 248 | 220 |
Raw material inventory | 91 | 91 |
Total inventoried costs, net | $339 | $311 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill | |||
Accumulated goodwill impairment losses | $2,802 | $2,755 | |
Goodwill Reclassification Adjustment | 23 | ||
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 881 | 881 | |
Goodwill, Acquired During Period | 192 | ||
Goodwill impairment | -47 | ||
Goodwill ending balance | 1,026 | 881 | |
Ingalls [Member] | |||
Goodwill | |||
Accumulated goodwill impairment losses | 1,568 | 1,568 | |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 175 | ||
Goodwill ending balance | 175 | 175 | 175 |
Newport News Shipbuilding [Member] | |||
Goodwill | |||
Accumulated goodwill impairment losses | 1,187 | 1,187 | |
Goodwill [Roll Forward] | |||
Goodwill beginning balance | 706 | 706 | |
Goodwill, Acquired During Period | 42 | ||
Goodwill ending balance | 748 | 706 | |
Other [Member] | |||
Goodwill | |||
Accumulated goodwill impairment losses | 47 | ||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 150 | ||
Goodwill impairment | -47 | ||
Goodwill ending balance | 103 | ||
The S.M. Stoller Corporation [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | 42 | ||
UniversalPegasus International [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Acquired During Period | $150 |
Purchased_Intangible_Assets_De
Purchased Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate weighted-average amortization period | 40 years | ||
Gross carrying amount | $986 | $939 | |
Accumulated amortization | -439 | -411 | |
Net carrying amount | 547 | 528 | |
Aggregate amortization expense | 28 | 20 | 19 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 26 | ||
2016 | 25 | ||
2017 | 25 | ||
2018 | 24 | ||
2019 | 24 | ||
UniversalPegasus International [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 41 | ||
Aggregate weighted-average amortization period | 11 years | ||
The S.M. Stoller Corporation [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $6 | ||
Aggregate weighted-average amortization period | 5 years |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 33.30% | 33.80% | 39.40% | |
Tax Matters Agreement adjustment | $8 | |||
Threshhold for payment obligation resulting from tax liability related to spin off | 5 | |||
Federal Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Federal income taxes currently payable | 191 | 150 | 49 | |
Change in deferred federal income taxes | -22 | -17 | 46 | |
Total federal income taxes | 169 | 133 | 95 | |
Effective Federal Income Tax Reconciliation [Abstract] | ||||
Income tax expense (benefit) on operations at statutory rate | 178 | 138 | 84 | |
Goodwill impairment | 6 | |||
Manufacturing deduction | -9 | -7 | -3 | |
Research tax credit | -2 | |||
Tax Matters Agreement adjustment | 8 | |||
Other, Net | -6 | 4 | 6 | |
Federal income taxes | 169 | 133 | 95 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Unrecognized tax benefits at beginning of the year | 11 | 19 | 6 | 4 |
Additions based on tax positions related to the current year | 5 | 5 | 7 | |
Additions based on tax positions of prior years | 3 | 1 | 19 | |
Current year acquisitions | 4 | |||
Reductions based on tax positions of prior years | -14 | -12 | ||
Settlements | -1 | |||
Statute of limitations expirations | -4 | |||
Net change in unrecognized tax benefits | 8 | -8 | 13 | |
Unrecognized tax benefits at end of the year | 19 | 11 | 19 | 4 |
Unrecognized tax benefits that would impact effective tax rate | 11 | 5 | ||
Accrued interest and penalties on uncertain tax positions | 3 | 3 | ||
Possible decrease in unrecognized tax benefits | -2 | |||
Reimbursement receivable net of federal benefit, resulting from spin-off | 4 | |||
Components of Deferred Tax Assets [Abstract] | ||||
Retirement benefits | 592 | 366 | ||
Workers' compensation | 256 | 248 | ||
Reserves not currently deductible for tax purposes | 9 | 36 | ||
Stock-based compensation | 14 | 20 | ||
Net operating losses and tax credit carry-forwards | 20 | |||
Other | 9 | 16 | ||
Gross deferred tax assets | 900 | 686 | ||
Less valuation allowance | 14 | 12 | ||
Net deferred tax assets | 886 | 674 | ||
Components of Deferred Tax Liabilities [Abstract] | ||||
Depreciation and amortization | 297 | 337 | ||
Contract accounting differences | 53 | 45 | ||
Purchased intangibles | 195 | 205 | ||
Gross deferred tax liabilities | 545 | 587 | ||
Total net deferred tax assets | 341 | 87 | ||
Net deferred tax assets presented | ||||
Net current deferred tax assets | 129 | 170 | ||
Net non-current deferred tax assets | 212 | |||
Net non-current deferred tax liabilities | -83 | |||
Total net deferred tax assets | 341 | 87 | ||
State income taxes | ||||
Operating Loss Carryforwards | ||||
Tax credit carryforward | 23 | |||
Deferred tax asset related to tax credit carryforwards | 15 | |||
Valuation allowance related to tax credit carryforwards | 12 | |||
Operating loss carryforwards | 40 | |||
Deferred tax asset related to operating loss carryforwards | 2 | |||
Valuation allowance related to operating loss carryforwards | 2 | |||
UniversalPegasus International [Member] | ||||
Operating Loss Carryforwards | ||||
Operating loss carryforwards | 11 | |||
Expires in 2033 [Member] | UniversalPegasus International [Member] | ||||
Operating Loss Carryforwards | ||||
Operating loss carryforwards | 7 | |||
Expires in 2034 [Member] | UniversalPegasus International [Member] | ||||
Operating Loss Carryforwards | ||||
Operating loss carryforwards | $4 |
Schedule_of_Longterm_Debt_Tabl
Schedule of Long-term Debt (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 03, 2012 | Dec. 02, 2014 |
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $1,700 | $1,779 | ||
Less current portion | 108 | 79 | ||
Long-term debt, net of current portion | 1,592 | 1,700 | ||
Term Loan | Term loan due March 30, 2016 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 395 | 474 | ||
Senior Notes | Senior notes due March 15, 2018, 6.875% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 600 | |||
Stated percentage | 6.88% | 6.88% | 6.88% | |
Senior Notes | Senior notes due March 15, 2021, 7.125% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 600 | 600 | ||
Stated percentage | 7.13% | 7.13% | 7.13% | |
Senior Notes | Senior notes due December 15, 2021, 5.000% [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 600 | |||
Stated percentage | 5.00% | 5.00% | ||
Bonds | Mississippi economic development revenue bonds due May 1, 2024, 7.81% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 84 | 84 | ||
Stated percentage | 7.81% | 7.81% | ||
Bonds | Gulf opportunity zone industrial development revenue bonds due December 1, 2028, 4.55% | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $21 | $21 | ||
Stated percentage | 4.55% | 4.55% |
Debt_Credity_Facility_Narrativ
Debt Credity Facility Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2011 | Mar. 30, 2011 |
Credit Facility | ||||
Tax Matters Agreement adjustment | $8 | |||
Parent ownership percentage of subsidiary guarantors | 100.00% | |||
Debt Instrument, Terms Limiting Dividend And Stock Buy-Back Programs | 74 | |||
Revolving Credit Facility | Term Loan Due March 30, 2016 | London Interbank Offered Rate (LIBOR) [Member] | ||||
Credit Facility | ||||
Description of Variable Rate Basis (LIBOR) | LIBOR | |||
Revolving Credit Facility | HII Credit Facility | ||||
Credit Facility | ||||
Term of debt instrument | 5 years | |||
Line of Credit Facility, Maximum Borrowing Capacity | 650 | |||
Revolving Credit Facility balance unutilized | 619 | |||
Revolving Credit Facility | HII Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | ||||
Credit Facility | ||||
Spread on variable rate (LIBOR) | 1.50% | |||
Description of Variable Rate Basis (LIBOR) | LIBOR | |||
Revolving Credit Facility | HII Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||||
Credit Facility | ||||
Spread on variable rate (LIBOR) | 1.50% | |||
Revolving Credit Facility | HII Credit Facility | London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||||
Credit Facility | ||||
Spread on variable rate (LIBOR) | 2.50% | |||
Revolving Credit Facility | HII Credit Facility | Base Rate [Member] | ||||
Credit Facility | ||||
Fee rate on unutilized balance | 0.25% | |||
Revolving Credit Facility | HII Credit Facility | Base Rate [Member] | Minimum | ||||
Credit Facility | ||||
Fee rate on unutilized balance | 0.25% | |||
Revolving Credit Facility | HII Credit Facility | Base Rate [Member] | Maximum | ||||
Credit Facility | ||||
Fee rate on unutilized balance | 0.45% | |||
Letter of Credit | HII Credit Facility | ||||
Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 350 | |||
Swingline Loan Subfacility | HII Credit Facility | ||||
Credit Facility | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 100 | |||
Standby Letters of Credit | HII Credit Facility | ||||
Credit Facility | ||||
Letters of credit issued but undrawn | 31 | |||
Loans Payable [Member] | Term Loan Due March 30, 2016 | ||||
Credit Facility | ||||
Term of debt instrument | 5 years | |||
Spread on variable rate (LIBOR) | 1.50% | |||
Amortization expense as a percentage of balance | ||||
Amortization of term loan, year one | 5.00% | |||
Amortization of term loan, year two | 5.00% | |||
Amortization of term loan, year three | 10.00% | |||
Amortization of term loan, year four | 15.00% | |||
Amortization of term loan, year five | 65.00% | |||
First three quarterly payments during year 5 | 5.00% | |||
Loans Payable [Member] | Term Loan Due March 30, 2016 | London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||||
Credit Facility | ||||
Spread on variable rate (LIBOR) | 1.50% | |||
Loans Payable [Member] | Term Loan Due March 30, 2016 | London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||||
Credit Facility | ||||
Spread on variable rate (LIBOR) | 2.50% | |||
Loans Payable [Member] | Term Loan Due March 30, 2016 | ||||
Credit Facility | ||||
Debt Instrument, Face Amount | $575 |
Debt_Senior_Note_Narrative_Det
Debt Senior Note Narrative (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Feb. 03, 2012 | Mar. 11, 2011 | Dec. 31, 2013 | Dec. 02, 2014 |
Debt Instrument [Line Items] | |||||
Parent ownership percentage of subsidiary guarantors | 100.00% | ||||
Extinguishment of Debt, Amount | $600 | ||||
Debt call and tender premiums and fees | 31 | ||||
Write off of Deferred Debt Issuance Cost | 6 | ||||
Loss on early extinguishment of debt | 37 | ||||
Senior Notes | Unregistered Senior Notes Due March 15, 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | ||||
Debt Instrument, Repurchased Face Amount | 600 | ||||
Senior Notes | Unregistered Senior Notes Due March 15, 2021 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.13% | ||||
Debt Instrument, Repurchased Face Amount | 600 | ||||
Senior Notes | Senior notes due March 15, 2018, 6.875% | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | 6.88% | 6.88% | ||
Senior Notes | Senior notes due March 15, 2021, 7.125% | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 7.13% | 7.13% | 7.13% | ||
Senior Notes | Senior notes due December 15, 2021, 5.000% [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $600 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% |
Debt_Revenue_Bond_Narrative_De
Debt Revenue Bond Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $1,700 | $1,779 |
Long-term Debt, Fair Value | 1,779 | 1,897 |
Bonds | Mississippi economic development revenue bonds due May 1, 2024, 7.81% | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 84 | 84 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.81% | 7.81% |
Bonds | Gulf opportunity zone industrial development revenue bonds due December 1, 2028, 4.55% | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $21 | $21 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.55% | 4.55% |
Debt_Schedule_of_Maturities_of
Debt Schedule of Maturities of Long-term Debt (Table) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Maturities of Long-term Debt [Abstract] | ||
2015 | $108 | |
2016 | 287 | |
Thereafter | 1,305 | |
Long-term debt | $1,700 | $1,779 |
Investigations_Claims_And_Liti1
Investigations, Claims, And Litigation (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
False Claims Act | Minimum | |
Loss Contingencies | |
Monetary damages | $835 |
Bolivarian Republic of Venezuela [Member] | |
Loss Contingencies | |
Arbitration Claim | 173 |
Monetary damages | 61 |
Ingalls Timecharging Investigation [Member] | |
Loss Contingencies | |
Contract receivable retainage initially withheld | 24 |
Estimate of misallocated costs and overstated progress | 4 |
United States Navy | Ingalls Timecharging Investigation [Member] | |
Loss Contingencies | |
Contract receivable retainage initially withheld | 18.2 |
Contract receivable retainage | 4.7 |
Customer estimate of misallocated costs and overstated progress | 3.1 |
United States Coast Guard | Ingalls Timecharging Investigation [Member] | |
Loss Contingencies | |
Contract receivable retainage initially withheld | 5.8 |
Contract receivable retainage | $3.60 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies | |||
Probable future cost for envionmental remediation | $2 | ||
Operating lease rent expense | 53 | 46 | 45 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | 34 | ||
2016 | 30 | ||
2017 | 23 | ||
2018 | 20 | ||
2019 | 16 | ||
Thereafter | 39 | ||
Total | 162 | ||
Number of employees | |||
Commitments and Contingencies | |||
Collective bargaining agreements | 38000 | ||
Percent of workforce subject to collective bargaining arrangements | |||
Commitments and Contingencies | |||
Collective bargaining agreements | 0.5 | ||
Number of collective bargaining agreements | |||
Commitments and Contingencies | |||
Collective bargaining agreements | 11 | ||
Number of collective bargaining agreements at Newport News | |||
Commitments and Contingencies | |||
Collective bargaining agreements | 3 | ||
Number of collective bargaining agreements at Pascagoula and Gulfport | |||
Commitments and Contingencies | |||
Collective bargaining agreements | 5 | ||
Surety Bonds Outstanding | |||
Commitments and Contingencies | |||
Surety bonds outstanding | 358 | ||
HII Credit Facility | Standby Letters of Credit | |||
Commitments and Contingencies | |||
Letters of credit issued but undrawn | $31 | ||
Minimum | |||
Commitments and Contingencies | |||
Period covered by collective bargaining agreements | 3 years | ||
Maximum | |||
Commitments and Contingencies | |||
Period covered by collective bargaining agreements | 5 years |
Impacts_From_Huricanes_Details
Impacts From Huricanes (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Interruption Loss | ||
Insurance recoveries | $677.50 | |
Hurricane Insurance Related Matters, Effect on Operating Income | -116 | |
Factory Mutual Insurance Company | ||
Business Interruption Loss | ||
Insurance recoveries | 180 | |
Impact to operating income from insurance recoveries | 180 | |
Factory Mutual Insurance Company | Recovery of lost profits | ||
Business Interruption Loss | ||
Impact to operating income from insurance recoveries | 64 | |
Minimum | Aon Risk Insurance Services West, Inc. | ||
Business Interruption Loss | ||
Monetary damages sought | $200 |
Employee_Pension_and_Other_Pos1
Employee Pension and Other Postretirement Benefits Net Benefit Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $136 | $147 | $133 |
Interest cost | 253 | 215 | 212 |
Expected return on plan assets | -322 | -289 | -267 |
Amortization of prior service cost (credit) | 19 | 18 | 12 |
Amortization of net actuarial loss (gain) | 52 | 118 | 77 |
Curtailments | -1 | ||
Net periodic benefit cost | 138 | 208 | 167 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 13 | 21 | 15 |
Interest cost | 30 | 33 | 40 |
Amortization of prior service cost (credit) | -26 | -21 | -7 |
Amortization of net actuarial loss (gain) | 16 | 13 | |
Net periodic benefit cost | $17 | $49 | $61 |
Employee_Pension_and_Other_Pos2
Employee Pension and Other Postretirement Benefits Funded Status (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||||
Plan amendments | ($177) | $30 | |||||
Pension Benefits [Member] | |||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||||
Benefit obligation at beginning of year | 5,061 | 4,730 | 5,061 | ||||
Service cost | 136 | 147 | 133 | ||||
Interest cost | 253 | 215 | 212 | ||||
Plan participants' contributions | 26 | 9 | |||||
Plan amendments | 66 | ||||||
Actuarial loss (gain) | 714 | -600 | |||||
Benefits paid | -168 | -154 | |||||
Curtailments | -20 | -14 | |||||
Benefit obligation at end of year | 5,671 | 4,730 | 5,061 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Fair value of plan assets at beginning of year | 3,745 | 4,310 | 3,745 | ||||
Gain on plan assets | 437 | 405 | |||||
Employer contributions | 126 | 305 | |||||
Plan participants' contributions | 26 | 9 | |||||
Benefits paid | -168 | -154 | |||||
Fair value of plan assets at end of year | 4,731 | 4,310 | 3,745 | ||||
Funded status | -940 | -420 | |||||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||||
Pension plan assets | 17 | 124 | |||||
Current liability | -18 | [1] | -15 | [1] | |||
Non-current liability | -939 | [2] | -529 | [2] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||||||
Prior service costs (credits) | 105 | 124 | |||||
Net actuarial loss (gain) | 1,374 | 847 | |||||
Other Benefits [Member] | |||||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||||
Benefit obligation at beginning of year | 965 | 616 | 965 | ||||
Service cost | 13 | 21 | 15 | ||||
Interest cost | 30 | 33 | 40 | ||||
Plan participants' contributions | 7 | 18 | |||||
Plan amendments | -145 | ||||||
Actuarial loss (gain) | 24 | -220 | |||||
Benefits paid | -40 | -59 | |||||
Medicare Part D subsidy | 3 | ||||||
Benefit obligation at end of year | 650 | 616 | 965 | ||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||||
Employer contributions | 33 | 38 | |||||
Plan participants' contributions | 7 | 18 | |||||
Benefits paid | -40 | -59 | |||||
Medicare Part D subsidy | 3 | ||||||
Funded status | -650 | -616 | |||||
Defined Benefit Plan, Amounts Recognized in Balance Sheet [Abstract] | |||||||
Current liability | -143 | [1] | -139 | [1] | |||
Non-current liability | -507 | [2] | -477 | [2] | |||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | |||||||
Prior service costs (credits) | -125 | -152 | |||||
Net actuarial loss (gain) | $73 | $50 | |||||
[1] | Included in other current liabilities and current portion of postretirement plan liabilities, respectively. | ||||||
[2] | Included in pension plan liabilities and other postretirement plan liabilities, respectively. |
Employee_Pension_and_Other_Pos3
Employee Pension and Other Postretirement Benefits Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Abstract] | ||||||
Amortization of prior service cost (credit) | $7 | [1] | $3 | [1] | ($5) | [1] |
Amortization of net actuarial loss (gain) | 52 | [1] | 134 | [1] | 90 | [1] |
Pension Benefits [Member] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Abstract] | ||||||
Prior service cost (credit) | -66 | |||||
Amortization of prior service cost (credit) | 19 | 18 | 12 | |||
Net actuarial loss (gain) | -599 | 716 | -599 | |||
Amortization of net actuarial loss (gain) | 52 | 118 | 77 | |||
Other | 20 | 12 | 7 | |||
Total changes in accumulated other comprehensive income (loss) | -508 | 798 | -503 | |||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||||||
Prior service cost (credit) | 19 | |||||
Net loss | 86 | |||||
Total | 105 | |||||
Other Benefits [Member] | ||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Abstract] | ||||||
Prior service cost (credit) | 145 | 11 | ||||
Amortization of prior service cost (credit) | -26 | -21 | -7 | |||
Net actuarial loss (gain) | -24 | 220 | -118 | |||
Amortization of net actuarial loss (gain) | 16 | 13 | ||||
Other | 1 | -1 | ||||
Total changes in accumulated other comprehensive income (loss) | -50 | 361 | -102 | |||
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | ||||||
Prior service cost (credit) | -20 | |||||
Net loss | 3 | |||||
Total | ($17) | |||||
[1] | These accumulated comprehensive income (loss) components are included in the computation of net periodic benefit cost. See Note 18: Employee Pension and Other Postretirement Benefits. The tax expense associated with amounts reclassified from accumulated other comprehensive income (loss) for the years ended DecemberB 31, 2014, 2013 and 2012, was $16 million, $46 million, and $33 million, respectively. |
Employee_Pension_and_Other_Pos4
Employee Pension and Other Postretirement Benefits Assumptions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Initial health care cost trend rate assumed for next year | 7.00% | 7.33% | |
Ultimate health care cost trend rate | 5.00% | 5.00% | |
Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Effect on postretirement benefit expense of one percentage point increase | 3 | ||
Effect on postretirement benefit expense of one percentage point decrease | -2 | ||
Effect on postretirement benefit obligations of one percentage point increase | 28 | ||
Effect on postretirement benefit obligations of one percentage point decrease | -27 | ||
Pension Benefits [Member] | |||
Weighted Average Assumptions - Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 5.27% | 4.27% | 5.23% |
Expected long-term rate on plan assets | 7.50% | 7.50% | 8.00% |
Rate of compensation increase | 3.69% | 3.66% | 3.64% |
Weighted Average Assumptions - Benefit Obligation [Abstract] | |||
Discount rate | 4.34% | 5.27% | |
Rate of compensation increase | 3.64% | 3.69% | |
Other Postretirement Benefit Obligation [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial health care cost trend rate assumed for next year | 7.00% | 7.33% | |
Ultimate health care cost trend rate | 5.00% | 5.00% | |
Year in which health care cost trend rate reaches the ultimate rate | 2023 | 2022 | |
Other Benefits [Member] | |||
Weighted Average Assumptions - Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 5.03% | 4.02% | 4.94% |
Weighted Average Assumptions - Benefit Obligation [Abstract] | |||
Discount rate | 4.22% | 5.03% | |
Other Postretirement Benefit Cost [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Initial health care cost trend rate assumed for next year | 7.33% | 7.67% | 8.00% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Year in which health care cost trend rate reaches the ultimate rate | 2022 | 2021 | 2018 |
Employee_Pension_and_Other_Pos5
Employee Pension and Other Postretirement Benefits Cash Contributions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Other benefit plans | $33 | $38 | $31 |
Total contributions | 159 | 343 | 270 |
Minimum Contribution [Member] | Qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | 64 | ||
Discretionary Contribution [Member] | Qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | 123 | 301 | 172 |
Discretionary Contribution [Member] | Non-qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | 3 | 4 | 3 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contributions to defined benefit plans in next fiscal year | 99 | ||
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contributions to defined benefit plans in next fiscal year | $36 |
Employee_Pension_and_Other_Pos6
Employee Pension and Other Postretirement Benefits Expected Future Benefit Payments and Receipts (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | |
Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | $181 |
2016 | 197 |
2017 | 214 |
2018 | 232 |
2019 | 251 |
Years 2020 to 2024 | 1,563 |
Other Benefits [Member] | |
Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2015 | 36 |
2016 | 38 |
2017 | 40 |
2018 | 42 |
2019 | 44 |
Years 2020 to 2024 | 243 |
Prescription Drug Subsidy Receipts, Fiscal Year Maturity [Abstract] | |
Years 2020 to 2024 | $2 |
Employee_Pension_and_Other_Pos7
Employee Pension and Other Postretirement Benefits Asset Allocation (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 4,731 | $4,310 | |||
Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,071 | 633 | |||
Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 3,115 | 3,232 | |||
Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 545 | 445 | 343 | ||
U.S. equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum target allocations | 20.00% | ||||
Maximum target allocations | 42.00% | ||||
U.S. equities | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,423 | [1] | 1,546 | [1] | |
U.S. equities | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 467 | [1] | 249 | [1] | |
U.S. equities | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 956 | [1] | 1,297 | [1] | |
International equities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum target allocations | 15.00% | ||||
Maximum target allocations | 33.00% | ||||
International equities | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,082 | [1] | 860 | [1] | |
International equities | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 599 | [1] | 382 | [1] | |
International equities | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 483 | [1] | 478 | [1] | |
Fixed Income Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum target allocations | 25.00% | ||||
Maximum target allocations | 50.00% | ||||
U.S. government | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 237 | 156 | |||
U.S. government | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 237 | 156 | |||
U.S. agency | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 174 | 180 | |||
U.S. agency | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 174 | 180 | |||
Non-U.S. government | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 88 | 66 | |||
Non-U.S. government | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 88 | 66 | |||
Investment grade debt | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,041 | [2] | 871 | [2] | |
Investment grade debt | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1,041 | [2] | 871 | [2] | |
Asset backed | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 52 | 65 | |||
Asset backed | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 52 | 65 | |||
Non-investment grade debt | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 45 | [3] | 39 | [3] | |
Non-investment grade debt | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 45 | [3] | 39 | [3] | |
Cash and cash equivalents | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 42 | [4] | 75 | [4] | |
Cash and cash equivalents | Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 5 | [4] | 2 | [4] | |
Cash and cash equivalents | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 37 | [4] | 73 | [4] | |
Alternative Investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum target allocations | 5.00% | ||||
Maximum target allocations | 15.00% | ||||
Hedge funds | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 298 | 257 | |||
Hedge funds | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 298 | 257 | 181 | ||
Real estate fund | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 247 | 188 | |||
Real estate fund | Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 247 | 188 | 162 | ||
Other | Total Fair Value | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2 | [5] | 7 | [6] | |
Other | Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 2 | [5] | 7 | [6] | |
Derivative | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair value of plan assets | 1 | $4 | |||
[1] | U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in separately managed accounts or commingled trust funds. | ||||
[2] | Investment grade fixed income securities include corporate bonds rated Baa3/BBB- or higher by one or more rating agencies. | ||||
[3] | (3) Non-investment grade fixed income securities include corporate bonds consistently rated below Baa3/BBB- by one or more rating agencies and a high yield commingled fund. | ||||
[4] | Cash and cash equivalents are highly liquid short-term investment funds and include net receivables and payables of the trust. These funds are available for immediate use to fund daily operations, execute investment policies, and serve as a temporary investment vehicle. The Company's plan asset allocation policy does not include cash. | ||||
[5] | Other investments include swaps, options, and insurance contracts. | ||||
[6] | Other investments include swaps, options, collateral, and insurance contracts. |
Employee_Pension_and_Other_Pos8
Employee Pension and Other Postretirement Benefits Level 3 Rollforward (Details) (Level 3, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $445 | $343 |
Return on plan assets, Attributable to Assets Held | 43 | 42 |
Purchases | 57 | 60 |
Fair value of plan assets at end of year | 545 | 445 |
Hedge funds | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 257 | 181 |
Return on plan assets, Attributable to Assets Held | 19 | 16 |
Purchases | 22 | 60 |
Fair value of plan assets at end of year | 298 | 257 |
Real estate fund | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 188 | 162 |
Return on plan assets, Attributable to Assets Held | 24 | 26 |
Purchases | 35 | |
Fair value of plan assets at end of year | $247 | $188 |
Employee_Pension_and_Other_Pos9
Employee Pension and Other Postretirement Benefits Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Cost recognized for defined contribution plans | $70 | $61 | $56 |
Aggregate accumulated benefit obligation for plans with accumulated benefit obligations in excess of plan assets | 3,981 | 1,581 | |
Aggregate fair value of plan assets for plans with accumulated benefit obligations in excess of plan assets | 3,438 | 1,444 | |
Other Pension Plans, Postretirement or Supplemental Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other postretirement benefit plan liabilities | 142 | 104 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 5,671 | 4,730 | 5,061 |
Accumulated benefit obligation | 5,244 | 4,294 | |
Estimated employer contributions to defined benefit plans in next fiscal year | 99 | ||
Fair value of plan assets | 4,731 | 4,310 | 3,745 |
Aggregate projected benefit obligation for plans with projected benefit obligations in excess of plan assets | 4,394 | 3,633 | |
Aggregate fair value of plan assets for plans with projected benefit obligations in excess of plan assets | 3,438 | 3,088 | |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 650 | 616 | 965 |
Estimated employer contributions to defined benefit plans in next fiscal year | 36 | ||
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum annual percentage employer contribution per employee | 4.00% | ||
Maximum | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, valuation lag period | 12 months | ||
Qualified [Member] | Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 5,529 | 4,626 | |
Accumulated benefit obligation | 5,124 | 4,202 | |
Fair value of plan assets | $4,731 | $4,310 |
Stock_Compensation_Plans_Stock
Stock Compensation Plans Stock Compensation Plans Narrative (Details) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2011 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Restricted performance stock rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, EBITDAP Weight | 50.00% | 50.00% | |||||
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, Return on Invested Capital Weight | 50.00% | 50.00% | |||||
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, Cumulative Operating Margin Weight | 50.00% | 50.00% | |||||
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, Cumulative Free Cash Flow Weight | 50.00% | 50.00% | |||||
Restricted performance stock rights | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted performance stock rights ultimate vesting percentage | 0.00% | 0.00% | |||||
Restricted performance stock rights | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted performance stock rights ultimate vesting percentage | 200.00% | 200.00% | |||||
Stock Awards | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 51.23 | $40.92 | $39.92 | 51.23 | $39.69 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,510,000 | 931,000 | 881,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award Equity Instruments Other Than Options Transferred From Employees for Minimum Tax Obligations | 600,000 | 300,000 | 300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 246,000 | 456,000 | 581,000 | ||||
Stock Rights [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 10,000 | ||||||
2012 Long Term Incentive Stock Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,400,000 | 3,400,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 4,100,000 | 4,100,000 | |||||
2012 Long Term Incentive Stock Plan [Member] | Restricted performance stock rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 200,000 | 400,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 98.22 | $44.67 | 98.22 | ||||
2012 Long Term Incentive Stock Plan [Member] | Restricted stock rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 12,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 101.21 | 101.21 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 11,000 | 11,000 | |||||
2011 Long Term Incentive Stock Plan [Member] | Restricted performance stock rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 600,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $34.71 | ||||||
2011 Long Term Incentive Stock Plan [Member] | Restricted stock rights | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 700,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $41.50 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 600,000 |
Stock_Compensation_Plans_Sched
Stock Compensation Plans Schedule of Status of Stock Awards (Table) (Details) (Stock Awards, USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Stock awards, Outstanding, Beginning balance | 1,673,000 | 1,901,000 | 2,090,000 | |
Stock Awards, Granted | 246,000 | 456,000 | 581,000 | |
Stock awards, Adjustment due to performance | 918,000 | 315,000 | 164,000 | |
Stock awards, Vested | -1,510,000 | -931,000 | -881,000 | |
Stock awards, Forfeited | -16,000 | -68,000 | -53,000 | |
Stock awards, Outstanding, Ending balance | 1,311,000 | 1,673,000 | 1,901,000 | 2,090,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Stock awards, Outstanding, Weighted Average Grant Date Fair Value, Beginning balance | $40.92 | $39.92 | $39.69 | |
Stock awards, Granted, Weighted Average Grant Date Fair Value | $98.33 | $46.51 | $36.04 | |
Stock Awards, Adjustments due to performance, Weighted Average Grant Date Fair Value | $41.45 | $41.41 | $37.25 | |
Stock awards, Vested, Weighted Average Grant Date Fair Value | $41.45 | $41.41 | $37.27 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $45.19 | $40.23 | $40.01 | |
Stock awards, Outstanding, Weighted Average Grant Date Fair Value, Ending balance | $51.23 | $40.92 | $39.92 | $39.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 0 years 8 months | 1 year | 1 year 5 months | 1 year 9 months |
Stock_Compensation_Plans_Stock1
Stock Compensation Plans Stock Options Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Dec. 31, 2011 | Mar. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive stock plan conversion factor determined in spin-off agreement | 1.65 | |||||
Stock options, Outstanding | 644,000 | 819,000 | 1,166,000 | 1,583,000 | ||
Stock options, Outstanding, Intrinsic Value | 49 | $45 | $12 | ($3) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 12 | 11 | 3 | |||
Stock Options | 2011 Long Term Incentive Stock Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options issued, number after conversion | 1,600,000 | |||||
Options fully vested at time of conversion, number | 1,400,000 | |||||
Stock options, Outstanding, Intrinsic Value | 15 | |||||
Stock Options | Granted Prior to 2008 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options, Outstanding | 1,000,000 | |||||
Vesting rate | 0.25 | |||||
Vesting period | 4 years | |||||
Number of years until expiration | 10 years | |||||
Stock Options | Granted after 2008 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting rate | 0.33 | |||||
Vesting period | 3 years | |||||
Number of years until expiration | 7 years |
Stock_Compensation_Plans_Sched1
Stock Compensation Plans Schedule of Status of Stock Options (Table) (Details) (Stock Options, USD $) | 12 Months Ended | |||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Stock options, Outstanding, Beginning balance | 819 | 1,166 | 1,583 | |
Stock options, Exercised | -174 | -346 | -405 | |
Stock options, Canceled and Forfeited | -1 | -1 | -12 | |
Stock options, Outstanding, Ending balance | 644 | 819 | 1,166 | 1,583 |
Stock options, Vested | 644 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Stock options, Outstanding, Weighted Average Exercise Price, Beginning balance | $35.01 | $34.67 | $33.27 | |
Stock options, Exercised, Weighted Average Exercise Price | $31.11 | $29.66 | $33.04 | |
Stock options, Canceled and Forfeited, Weighted Average Exercise Price | $31.76 | $28.51 | $34.01 | |
Stock options, Outstanding, Weighted Average Exercise Price, Ending balance | $36.06 | $35.01 | $34.67 | $33.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $36.06 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Stock options, Weighted Average Remaining Contractual Term | 1 year 5 months | 2 years 1 month | 2 years 7 months | 2 years 11 months |
Stock Options, Vested, Weighted Average Remaining Contractual Term | 1 year 5 months | |||
Stock options, Outstanding, Intrinsic Value | $49 | $45 | $12 | ($3) |
Stock options, Vested, Intrinsic Value | $49 |
Stock_Compensation_Plans_Compe
Stock Compensation Plans Compensation and Unrecognized Compensation Expense Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation expense | |||
Total stock-based compensation expense | $34 | $44 | $41 |
Tax benefits recognized for stock-based compensation | 13 | 17 | 16 |
Stock Awards | |||
Compensation expense | |||
Total stock-based compensation expense | 34 | 44 | 40 |
Realized tax benefits from issuance of stock in settlement of RPSRs and RSRs | 53 | 32 | 14 |
Stock Options | |||
Compensation expense | |||
Total stock-based compensation expense | 1 | ||
Realized tax benefits from exercise of stock options | 5 | 4 | 1 |
Restricted stock rights | |||
Unrecognized compensation expense | |||
Unrecognized compensation expense associated with stock awards | 1 | ||
Weighted average period of recognition of unrecognized compensation expense | 2 years 5 months | ||
Restricted performance stock rights | |||
Unrecognized compensation expense | |||
Unrecognized compensation expense associated with stock awards | $21 | ||
Weighted average period of recognition of unrecognized compensation expense | 8 months |
Unaudited_Selected_Quarterly_D2
Unaudited Selected Quarterly Data (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Nov. 30, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||||||
Sales and service revenues | $1,927 | $1,717 | $1,719 | $1,594 | $1,938 | $1,637 | $1,683 | $1,562 | $6,957 | $6,820 | $6,708 | ||||
Operating income (loss) | 144 | [1] | 171 | 181 | 159 | 174 | 127 | 116 | 95 | 655 | 512 | 358 | |||
Earnings (loss) before income taxes | 79 | [1] | 144 | 152 | 132 | 143 | 99 | 87 | 65 | 507 | 394 | 241 | |||
Net earnings (loss) | 52 | [1] | 96 | 100 | 90 | 91 | 69 | 57 | 44 | 338 | 261 | 146 | |||
Dividends declared per share | $0.40 | $0.20 | $0.10 | $0.40 | $0.20 | $0.20 | $0.20 | $0.20 | $0.10 | $0.10 | $0.10 | $1 | $0.50 | $0.10 | |
Basic earnings (loss) per share | $1.07 | [1] | $1.97 | $2.05 | $1.83 | $1.86 | $1.38 | $1.14 | $0.88 | $6.93 | $5.25 | $2.96 | |||
Diluted earnings (loss) per share | $1.05 | [1] | $1.96 | $2.04 | $1.81 | $1.82 | $1.36 | $1.12 | $0.87 | $6.86 | $5.18 | $2.91 | |||
Goodwill Impairment | $47 | ||||||||||||||
[1] | 1 In the fourth quarter of 2014, the Company recorded a $47 million goodwill impairment charge. |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Operations and Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Condensed Financial Statements, Captions | ||||||||||||
Parent ownership percentage of subsidiary guarantors | 100.00% | 100.00% | ||||||||||
Sales and service revenues | ||||||||||||
Product sales | $5,712 | $5,801 | $5,755 | |||||||||
Service revenues | 1,245 | 1,019 | 953 | |||||||||
Total sales and service revenues | 1,927 | 1,717 | 1,719 | 1,594 | 1,938 | 1,637 | 1,683 | 1,562 | 6,957 | 6,820 | 6,708 | |
Cost of sales and service revenues | ||||||||||||
Cost of product sales | 4,489 | 4,695 | 4,827 | |||||||||
Cost of service revenues | 1,051 | 888 | 802 | |||||||||
Income (loss) from operating investments, net | 11 | 14 | 18 | |||||||||
General and administrative expenses | 726 | 739 | 739 | |||||||||
Goodwill Impairment | 47 | |||||||||||
Operating income (loss) | 144 | [1] | 171 | 181 | 159 | 174 | 127 | 116 | 95 | 655 | 512 | 358 |
Interest expense | -149 | -118 | -117 | |||||||||
Other, net | 1 | |||||||||||
Earnings (loss) before income taxes | 79 | [1] | 144 | 152 | 132 | 143 | 99 | 87 | 65 | 507 | 394 | 241 |
Federal income taxes | 169 | 133 | 95 | |||||||||
Net earnings (loss) | 52 | [1] | 96 | 100 | 90 | 91 | 69 | 57 | 44 | 338 | 261 | 146 |
Other comprehensive income (loss), net of tax | -341 | 705 | -364 | |||||||||
Comprehensive income (loss) | -3 | 966 | -218 | |||||||||
Huntington Ingalls Industries, Inc. | ||||||||||||
Cost of sales and service revenues | ||||||||||||
Interest expense | -142 | -110 | -111 | |||||||||
Other, net | 1 | |||||||||||
Equity in earnings (loss) of subsidiaries | 433 | 334 | 213 | |||||||||
Earnings (loss) before income taxes | 292 | 224 | 102 | |||||||||
Federal income taxes | -46 | -37 | -44 | |||||||||
Net earnings (loss) | 338 | 261 | 146 | |||||||||
Other comprehensive income (loss), net of tax | -341 | 705 | -364 | |||||||||
Comprehensive income (loss) | -3 | 966 | -218 | |||||||||
Subsidiary Guarantors | ||||||||||||
Sales and service revenues | ||||||||||||
Product sales | 5,712 | 5,801 | 5,755 | |||||||||
Service revenues | 1,202 | 1,019 | 953 | |||||||||
Total sales and service revenues | 6,914 | 6,820 | 6,708 | |||||||||
Cost of sales and service revenues | ||||||||||||
Cost of product sales | 4,489 | 4,695 | 4,827 | |||||||||
Cost of service revenues | 1,018 | 888 | 802 | |||||||||
Income (loss) from operating investments, net | 11 | 14 | 18 | |||||||||
General and administrative expenses | 718 | 739 | 739 | |||||||||
Goodwill Impairment | 47 | |||||||||||
Operating income (loss) | 653 | 512 | 358 | |||||||||
Interest expense | -7 | -8 | -6 | |||||||||
Earnings (loss) before income taxes | 646 | 504 | 352 | |||||||||
Federal income taxes | 215 | 170 | 139 | |||||||||
Net earnings (loss) | 431 | 334 | 213 | |||||||||
Other comprehensive income (loss), net of tax | -341 | 705 | -364 | |||||||||
Comprehensive income (loss) | 90 | 1,039 | -151 | |||||||||
Non-Guarantor Subsidiaries | ||||||||||||
Sales and service revenues | ||||||||||||
Service revenues | 63 | 24 | 19 | |||||||||
Total sales and service revenues | 63 | 24 | 19 | |||||||||
Cost of sales and service revenues | ||||||||||||
Cost of service revenues | 53 | 24 | 19 | |||||||||
General and administrative expenses | 8 | |||||||||||
Operating income (loss) | 2 | |||||||||||
Earnings (loss) before income taxes | 2 | |||||||||||
Net earnings (loss) | 2 | |||||||||||
Comprehensive income (loss) | 2 | |||||||||||
Eliminations | ||||||||||||
Sales and service revenues | ||||||||||||
Service revenues | -20 | -24 | -19 | |||||||||
Total sales and service revenues | -20 | -24 | -19 | |||||||||
Cost of sales and service revenues | ||||||||||||
Cost of service revenues | -20 | -24 | -19 | |||||||||
Equity in earnings (loss) of subsidiaries | -433 | -334 | -213 | |||||||||
Earnings (loss) before income taxes | -433 | -334 | -213 | |||||||||
Net earnings (loss) | -433 | -334 | -213 | |||||||||
Other comprehensive income (loss), net of tax | 341 | -705 | 364 | |||||||||
Comprehensive income (loss) | ($92) | ($1,039) | $151 | |||||||||
[1] | 1 In the fourth quarter of 2014, the Company recorded a $47 million goodwill impairment charge. |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Financial Position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets | ||||
Cash and cash equivalents | $990 | $1,043 | $1,057 | $915 |
Accounts receivable, net | 1,038 | 1,123 | ||
Inventoried costs, net | 339 | 311 | ||
Deferred income taxes | 129 | 170 | ||
Prepaid expenses and other current assets | 50 | 29 | ||
Total current assets | 2,546 | 2,676 | ||
Property, plant, and equipment, net | 1,792 | 1,897 | ||
Other Assets | ||||
Goodwill | 1,026 | 881 | 881 | |
Other purchased intangibles, net of accumulated amortization | 547 | 528 | ||
Pension plan assets | 17 | 124 | ||
Long-term deferred tax assets | 212 | |||
Miscellaneous other assets | 129 | 119 | ||
Total other assets | 1,931 | 1,652 | ||
Total assets | 6,269 | 6,225 | 6,392 | |
Current Liabilities | ||||
Trade accounts payable | 269 | 337 | ||
Accrued employees' compensation | 248 | 230 | ||
Current portion of long-term debt | 108 | 79 | ||
Current portion of workers' compensation liabilities | 221 | 230 | ||
Current portion of postretirement plan liabilities | 143 | 139 | ||
Advance payments and billings in excess of revenues | 74 | 115 | ||
Other current liabilities | 249 | 262 | ||
Total current liabilities | 1,312 | 1,392 | ||
Long-term debt | 1,592 | 1,700 | ||
Other postretirement plan liabilities | 507 | 477 | ||
Pension plan liabilities | 939 | 529 | ||
Workers' compensation liabilities | 449 | 419 | ||
Deferred tax liabilities | 83 | |||
Other long-term liabilities | 105 | 104 | ||
Total liabilities | 4,904 | 4,704 | ||
Stockholders' equity | 1,365 | 1,521 | ||
Total liabilities and stockholders' equity | 6,269 | 6,225 | ||
Huntington Ingalls Industries, Inc. | ||||
Current Assets | ||||
Cash and cash equivalents | 980 | 1,042 | 1,056 | 915 |
Prepaid expenses and other current assets | 1 | |||
Total current assets | 981 | 1,042 | ||
Other Assets | ||||
Miscellaneous other assets | 30 | 35 | ||
Investment in subsidiaries | 3,421 | 3,295 | ||
Total other assets | 3,451 | 3,330 | ||
Total assets | 4,432 | 4,372 | ||
Current Liabilities | ||||
Current portion of long-term debt | 108 | 79 | ||
Other current liabilities | 15 | 25 | ||
Total current liabilities | 123 | 104 | ||
Long-term debt | 1,488 | 1,595 | ||
Intercompany liabilities | 1,456 | 1,152 | ||
Total liabilities | 3,067 | 2,851 | ||
Stockholders' equity | 1,365 | 1,521 | ||
Total liabilities and stockholders' equity | 4,432 | 4,372 | ||
Subsidiary Guarantors | ||||
Current Assets | ||||
Cash and cash equivalents | 4 | |||
Accounts receivable, net | 1,022 | 1,123 | ||
Inventoried costs, net | 339 | 311 | ||
Deferred income taxes | 129 | 170 | ||
Prepaid expenses and other current assets | 48 | 30 | ||
Total current assets | 1,542 | 1,634 | ||
Property, plant, and equipment, net | 1,790 | 1,897 | ||
Other Assets | ||||
Goodwill | 1,026 | 881 | ||
Other purchased intangibles, net of accumulated amortization | 547 | 528 | ||
Pension plan assets | 17 | 124 | ||
Long-term deferred tax assets | 212 | |||
Miscellaneous other assets | 99 | 84 | ||
Intercompany receivables | 1,469 | 1,152 | ||
Total other assets | 3,370 | 2,769 | ||
Total assets | 6,702 | 6,300 | ||
Current Liabilities | ||||
Trade accounts payable | 265 | 337 | ||
Accrued employees' compensation | 247 | 230 | ||
Current portion of workers' compensation liabilities | 221 | 230 | ||
Current portion of postretirement plan liabilities | 143 | 139 | ||
Advance payments and billings in excess of revenues | 74 | 115 | ||
Other current liabilities | 234 | 237 | ||
Total current liabilities | 1,184 | 1,288 | ||
Long-term debt | 104 | 105 | ||
Other postretirement plan liabilities | 507 | 477 | ||
Pension plan liabilities | 939 | 529 | ||
Workers' compensation liabilities | 449 | 419 | ||
Deferred tax liabilities | 83 | |||
Other long-term liabilities | 105 | 104 | ||
Total liabilities | 3,288 | 3,005 | ||
Stockholders' equity | 3,414 | 3,295 | ||
Total liabilities and stockholders' equity | 6,702 | 6,300 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets | ||||
Cash and cash equivalents | 6 | 1 | 1 | |
Accounts receivable, net | 16 | |||
Prepaid expenses and other current assets | 5 | 5 | ||
Total current assets | 27 | 6 | ||
Property, plant, and equipment, net | 2 | |||
Other Assets | ||||
Total assets | 29 | 6 | ||
Current Liabilities | ||||
Trade accounts payable | 4 | |||
Accrued employees' compensation | 1 | |||
Other current liabilities | 4 | 6 | ||
Total current liabilities | 9 | 6 | ||
Intercompany liabilities | 13 | |||
Total liabilities | 22 | 6 | ||
Stockholders' equity | 7 | |||
Total liabilities and stockholders' equity | 29 | 6 | ||
Eliminations | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | |||
Prepaid expenses and other current assets | -4 | -6 | ||
Total current assets | -4 | -6 | ||
Other Assets | ||||
Investment in subsidiaries | -3,421 | -3,295 | ||
Intercompany receivables | -1,469 | -1,152 | ||
Total other assets | -4,890 | -4,447 | ||
Total assets | -4,894 | -4,453 | ||
Current Liabilities | ||||
Other current liabilities | -4 | -6 | ||
Total current liabilities | -4 | -6 | ||
Intercompany liabilities | -1,469 | -1,152 | ||
Total liabilities | -1,473 | -1,158 | ||
Stockholders' equity | -3,421 | -3,295 | ||
Total liabilities and stockholders' equity | ($4,894) | ($4,453) |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions | |||
Net cash provided by (used in) operating activities | $716 | $236 | $332 |
Investing Activities | |||
Additions to property, plant, and equipment | -165 | -139 | -162 |
Payments to Acquire Businesses, Net of Cash Acquired | -272 | ||
Proceeds from insurance settlement related to investing activities | 58 | ||
Net cash provided by (used in) investing activities | -437 | -81 | -162 |
Financing Activities | |||
Proceeds from issuance of long-term debt | 600 | ||
Repayment of long-term debt | -679 | -51 | -29 |
Debt issuance costs | -12 | -5 | |
Tender premiums and fees related to early extinguishment of debt | -31 | ||
Repurchases of common stock | -138 | -119 | -1 |
Dividends paid | -49 | -25 | -5 |
Employee taxes on certain share-based payment arrangements | -64 | ||
Proceeds from stock option exercises | 2 | 7 | 7 |
Excess tax benefit related to stock-based compensation | 39 | 24 | |
Net cash provided by (used in) financing activities | -332 | -169 | -28 |
Change in cash and cash equivalents | -53 | -14 | 142 |
Cash and cash equivalents, beginning of period | 1,043 | 1,057 | 915 |
Cash and cash equivalents, end of period | 990 | 1,043 | 1,057 |
Huntington Ingalls Industries, Inc. | |||
Condensed Financial Statements, Captions | |||
Net cash provided by (used in) operating activities | -57 | -72 | -62 |
Financing Activities | |||
Proceeds from issuance of long-term debt | 600 | ||
Repayment of long-term debt | -679 | -51 | -29 |
Debt issuance costs | -12 | -5 | |
Tender premiums and fees related to early extinguishment of debt | -31 | ||
Repurchases of common stock | -138 | -119 | -1 |
Dividends paid | -49 | -25 | -5 |
Proceeds from stock option exercises | 7 | 7 | |
Increase (Decrease) in Due to Affiliates | 304 | 251 | 231 |
Net cash provided by (used in) financing activities | -5 | 58 | 203 |
Change in cash and cash equivalents | -62 | -14 | 141 |
Cash and cash equivalents, beginning of period | 1,042 | 1,056 | 915 |
Cash and cash equivalents, end of period | 980 | 1,042 | 1,056 |
Subsidiary Guarantors | |||
Condensed Financial Statements, Captions | |||
Net cash provided by (used in) operating activities | 779 | 308 | 393 |
Investing Activities | |||
Additions to property, plant, and equipment | -165 | -139 | -162 |
Payments to Acquire Businesses, Net of Cash Acquired | -275 | ||
Proceeds from Contributions from Affiliates | -312 | -251 | -231 |
Proceeds from insurance settlement related to investing activities | 58 | ||
Net cash provided by (used in) investing activities | -752 | -332 | -393 |
Financing Activities | |||
Employee taxes on certain share-based payment arrangements | -64 | ||
Proceeds from stock option exercises | 2 | ||
Excess tax benefit related to stock-based compensation | 39 | 24 | |
Net cash provided by (used in) financing activities | -23 | 24 | |
Change in cash and cash equivalents | 4 | ||
Cash and cash equivalents, end of period | 4 | ||
Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions | |||
Net cash provided by (used in) operating activities | -6 | 1 | |
Investing Activities | |||
Payments to Acquire Businesses, Net of Cash Acquired | 3 | ||
Proceeds from Contributions from Affiliates | 8 | ||
Net cash provided by (used in) investing activities | 11 | ||
Financing Activities | |||
Change in cash and cash equivalents | 5 | 0 | 1 |
Cash and cash equivalents, beginning of period | 1 | 1 | |
Cash and cash equivalents, end of period | 6 | 1 | 1 |
Eliminations | |||
Investing Activities | |||
Proceeds from Contributions from Affiliates | 304 | 251 | 231 |
Net cash provided by (used in) investing activities | 304 | 251 | 231 |
Financing Activities | |||
Increase (Decrease) in Due to Affiliates | -304 | -251 | -231 |
Net cash provided by (used in) financing activities | -304 | -251 | -231 |
Cash and cash equivalents, beginning of period | 0 | ||
Cash and cash equivalents, end of period | $0 |
Subsequent_Event_Details
Subsequent Event (Details) (Engineering Solutions Division of The Columbia Group [Member], Subsequent Event [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 30, 2015 |
Engineering Solutions Division of The Columbia Group [Member] | Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Payments to Acquire Businesses, Gross | $6 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts (Details) (Valuation Allowance of Deferred Tax Assets [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Valuation allowances beginning balance | $12 | $21 | $18 |
(Benefits)/Charges to Income | 2 | -9 | 3 |
Valuation allowances ending balance | $14 | $12 | $21 |