Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 26, 2024 | Jun. 30, 2023 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-34910 | ||
Entity Registrant Name | HUNTINGTON INGALLS INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 90-0607005 | ||
Entity Address, Address Line One | 4101 Washington Avenue | ||
Entity Address, City or Town | Newport News | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23607 | ||
City Area Code | 757 | ||
Local Phone Number | 380-2000 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | HII | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,075 | ||
Entity Common Stock, Shares Outstanding | 39,590,687 | ||
Document Fiscal Year Focus | 2023 | ||
Entity Central Index Key | 0001501585 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Richmond, Virginia |
Auditor Firm ID | 34 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Sales and service revenues | $ 11,454 | $ 10,676 | $ 9,524 |
Cost of sales and service revenues | |||
Income (loss) from operating investments, net | 37 | 48 | 41 |
Other income and gains, net | 120 | 1 | 2 |
General and administrative expenses | 1,022 | 924 | 898 |
Operating income (loss) | 781 | 565 | 513 |
Other income (expense) | |||
Interest expense | (95) | (102) | (89) |
Non-operating retirement benefit (expense) | 148 | 276 | 181 |
Other, net | 19 | (20) | 17 |
Earnings (loss) before income taxes | 853 | 719 | 622 |
Federal and foreign income taxes | 172 | 140 | 78 |
Net earnings (loss) | $ 681 | $ 579 | $ 544 |
Basic earnings (loss) per share | $ 17.07 | $ 14.44 | $ 13.50 |
Weighted-average common shares outstanding (in shares) | 39.9 | 40.1 | 40.3 |
Diluted earnings (loss) per share | $ 17.07 | $ 14.44 | $ 13.50 |
Weighted-average diluted shares outstanding (in shares) | 39.9 | 40.1 | 40.3 |
Other comprehensive income (loss) | |||
Change in unamortized benefit plan costs | $ 238 | $ 436 | $ 838 |
Tax benefit (expense) for items of other comprehensive income | (61) | (112) | (214) |
Other comprehensive income (loss), net of tax | 177 | 324 | 624 |
Comprehensive income (loss) | 858 | 903 | 1,168 |
Product [Member] | |||
Sales and service revenues | 7,664 | 7,283 | 7,000 |
Cost of sales and service revenues | |||
Cost of sales and services revenues | 6,467 | 6,225 | 5,958 |
Service [Member] | |||
Sales and service revenues | 3,790 | 3,393 | 2,524 |
Cost of sales and service revenues | |||
Cost of sales and services revenues | $ 3,341 | $ 3,011 | $ 2,198 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 430 | $ 467 |
Accounts receivable, net | 461 | 636 |
Contract assets | 1,537 | 1,240 |
Inventoried costs, net | 186 | 183 |
Income taxes receivable | 183 | 170 |
Prepaid expenses and other current assets | 83 | 50 |
Total current assets | 2,880 | 2,746 |
Land and land improvements | 351 | 344 |
Buildings and leasehold improvements | 2,954 | 2,805 |
Machinery and other equipment | 2,197 | 2,122 |
Capitalized software costs | 261 | 246 |
Property, plant and equipment, gross | 5,763 | 5,517 |
Accumulated depreciation and amortization | (2,467) | (2,319) |
Property, plant, and equipment, net | 3,296 | 3,198 |
Other Assets | ||
Operating lease assets | 262 | 282 |
Goodwill | 2,618 | 2,618 |
Other intangible assets, net | 891 | 1,019 |
Pension plan assets | 888 | 600 |
Miscellaneous other assets | 380 | 394 |
Total other assets | 5,039 | 4,913 |
Total assets | 11,215 | 10,857 |
Current Liabilities | ||
Trade accounts payable | 554 | 642 |
Accrued employees' compensation | 382 | 345 |
Current portion of long-term debt | 231 | 399 |
Current portion of postretirement plan liabilities | 129 | 134 |
Current portion of workers' compensation liabilities | 224 | 229 |
Contract liabilities | 1,063 | 766 |
Other current liabilities | 449 | 380 |
Total current liabilities | 3,032 | 2,895 |
Long-term debt | 2,214 | 2,506 |
Pension plan liabilities | 212 | 214 |
Other postretirement plan liabilities | 241 | 260 |
Workers' compensation liabilities | 449 | 463 |
Long-term operating lease liabilities | 228 | 246 |
Deferred tax liabilities | 367 | 418 |
Other long-term liabilities | 379 | 366 |
Total liabilities | 7,122 | 7,368 |
Commitments and Contingencies (Note 16) | ||
Stockholders' Equity | ||
Common stock | 1 | 1 |
Additional paid-in capital | 2,045 | 2,022 |
Retained earnings (deficit) | 4,755 | 4,276 |
Treasury stock | (2,286) | (2,211) |
Accumulated other comprehensive income (loss) | (422) | (599) |
Total stockholders' equity | 4,093 | 3,489 |
Total liabilities and stockholders' equity | $ 11,215 | $ 10,857 |
Consolidated Statements Of Fi_2
Consolidated Statements Of Financial Position (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 53,595,748 | 53,503,317 |
Common stock, shares outstanding | 39,618,880 | 39,863,456 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 1,009 | $ 881 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Activities | |||
Net earnings (loss) | $ 681 | $ 579 | $ 544 |
Adjustments to reconcile to net cash provided by (used in) operating activities | |||
Depreciation | 219 | 218 | 207 |
Amortization of purchased intangibles | 128 | 140 | 86 |
Amortization of debt issuance costs | 8 | 8 | 8 |
Provision for expected credit losses | 6 | (7) | 7 |
Stock-based compensation | 34 | 36 | 33 |
Deferred income taxes | (113) | 2 | 98 |
Loss (gain) on investments in marketable securities | (23) | 25 | (19) |
Change in | |||
Accounts receivable | 168 | (196) | 58 |
Contract assets | (297) | 70 | (126) |
Inventoried costs | (3) | (22) | (25) |
Prepaid expenses and other assets | (42) | 20 | (88) |
Accounts payable and accruals | 264 | 6 | 45 |
Retiree benefits | (75) | (127) | (78) |
Other non-cash transactions, net | 15 | 14 | 10 |
Net cash provided by (used in) operating activities | 970 | 766 | 760 |
Capital expenditures | |||
Capital expenditure additions | (292) | (284) | (331) |
Grant proceeds for capital expenditures | 14 | 12 | 20 |
Acquisitions of businesses, net of cash received | (1,643) | ||
Investment in affiliates | (24) | (5) | (22) |
Proceeds from equity method investment | 63 | 6 | |
Proceeds from disposition of business | 20 | ||
Other investing activities, net | 3 | 3 | 2 |
Net cash provided by (used in) investing activities | (236) | (268) | (1,954) |
Financing Activities | |||
Proceeds from issuance of long-term debt | 1,650 | ||
Repayment of long-term debt | (480) | (400) | (25) |
Proceeds from line of credit borrowings | 24 | ||
Repayment of line of credit borrowings | (24) | ||
Debt issuance costs | (22) | ||
Dividends paid | (200) | (192) | (186) |
Repurchases of common stock | (75) | (52) | (101) |
Employee taxes on certain share-based payment arrangements | (13) | (14) | (7) |
Other financing activities, net | (3) | ||
Net cash provided by (used in) financing activities | (771) | (658) | 1,309 |
Change in cash and cash equivalents | (37) | (160) | 115 |
Cash and cash equivalents, beginning of period | 467 | 627 | 512 |
Cash and cash equivalents, end of period | 430 | 467 | 627 |
Supplemental Cash Flow Disclosure | |||
Cash paid for income taxes (net of refunds) | 330 | 127 | 33 |
Cash paid for interest | 101 | 100 | 76 |
Non-Cash Investing and Financing Activities | |||
Capital expenditures accrued in accounts payable | $ 29 | $ 12 | $ 6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Treasury Stock, Common | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2020 | $ 1,901 | $ 1 | $ 1,972 | $ 3,533 | $ (2,058) | $ (1,547) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 544 | 544 | ||||
Dividends declared | (186) | (186) | ||||
Stock compensation | 26 | 26 | ||||
Other comprehensive income (loss), net of tax | 624 | 624 | ||||
Treasury stock activity | (101) | (101) | ||||
Balance at Dec. 31, 2021 | 2,808 | 1 | 1,998 | 3,891 | (2,159) | (923) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 579 | 579 | ||||
Dividends declared | (192) | (192) | ||||
Stock compensation | 22 | 24 | (2) | |||
Other comprehensive income (loss), net of tax | 324 | 324 | ||||
Treasury stock activity | (52) | (52) | ||||
Balance at Dec. 31, 2022 | 3,489 | 1 | 2,022 | 4,276 | (2,211) | (599) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 681 | 681 | ||||
Dividends declared | (200) | (200) | ||||
Stock compensation | 21 | 23 | (2) | |||
Other comprehensive income (loss), net of tax | 177 | 177 | ||||
Treasury stock activity | (75) | (75) | ||||
Balance at Dec. 31, 2023 | $ 4,093 | $ 1 | $ 2,045 | $ 4,755 | $ (2,286) | $ (422) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||||
Dividends declared per share | $ 1.30 | $ 1.24 | $ 1.18 | $ 1.14 | $ 5.02 | $ 4.78 | $ 4.60 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | DESCRIPTION OF BUSINESS Huntington Ingalls Industries, Inc. ("HII" or the "Company") is a global, all-domain defense partner, building and delivering the world's most powerful, survivable naval ships and technologies that safeguard America's seas, sky, land, space, and cyber. HII is organized into three reportable segments: Ingalls Shipbuilding ("Ingalls"), Newport News Shipbuilding ("Newport News"), and Mission Technologies. For more than a century, the Company's Ingalls segment in Mississippi and Newport News segment in Virginia have built more ships in more ship classes than any other U.S. naval shipbuilder, making HII America’s largest shipbuilder. The Mission Technologies segment develops integrated solutions that enable today's connected, all-domain force. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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"). As used in the Notes to the Consolidated Financial Statements, the terms "HII" and "the Company" refer to HII and its subsidiaries. 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. Revenue Recognition - Most of the Company's revenues are derived from long-term contracts for the production of goods and services provided to its U.S. Government customers. The Company generally recognizes revenues on contracts with U.S. Government customers over time using a cost-to-cost measure of progress. The use of the cost-to-cost method to measure performance progress over time is supported by clauses in the related contracts that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit, and take control of any work in process. The Company utilizes the cost-to-cost method to measure performance progress, because it best reflects the continuous transfer of control over the related goods and services to the customer as the Company satisfies its performance obligations. When the customer is not a U.S. Government entity, the Company may recognize revenue over time or at a point in time when control transfers upon delivery, depending upon the facts and circumstances of the related arrangement. When the Company determines that revenue should be recognized over time, the Company utilizes a measure of progress that best depicts the transfer of control of the relevant goods and services to the customer. Generally, the terms and conditions of the contracts result in a transfer of control over the related goods and services as the Company satisfies its performance obligations. Accordingly, the Company recognizes revenue over time using the cost-to-cost method to measure performance progress. The Company may, however, utilize a measure of progress other than cost-to-cost, such as a labor-based measure of progress, if the terms and conditions of the arrangement require such accounting. When using the cost-to-cost method to measure performance progress, certain contracts may include costs that are not representative of performance progress, such as large upfront purchases of uninstalled materials, unexpected waste, or inefficiencies. In these cases, the Company adjusts its measure of progress to exclude such costs, with the goal of better reflecting the transfer of control over the related goods or services to the customer and recognizing revenue only to the extent of the costs incurred that reflect the Company's performance under the contract. In addition, for time and material arrangements, the Company often utilizes the practical expedient allowing the recognition of revenue in the amount the Company invoices, which corresponds with the value provided to the customer and to which the Company is entitled to payment for performance to date. A performance obligation is a promise to transfer a distinct good or service to the customer and is the unit of account for which revenue is recognized. To determine the proper revenue recognition method, consideration is given to whether two or more contracts should be combined and accounted for as one contract and whether a single contract consists of more than one performance obligation. For contracts with multiple performance obligations, the contract transaction price is allocated to each performance obligation using an estimate of the standalone selling price based upon expected cost plus a margin at contract inception, which is generally the price disclosed in the contract. Contracts are often modified to account for changes in contract specifications and requirements. In the majority of circumstances, modifications do not result in additional performance obligations that are distinct from the existing performance obligations in the contract, and the effects of the modifications are recognized as an adjustment to revenue on a cumulative catch-up basis. Alternatively, in instances in which the performance obligations in the modifications are deemed distinct, contract modifications are accounted for prospectively. The amount of revenue recognized as the Company satisfies performance obligations associated with contracts with customers is based upon the determination of transaction price. Transaction price reflects the amount of consideration to which the Company expects to be entitled for performance under the terms and conditions of the relevant contract and may reflect fixed and variable components, including shareline incentive fees whereby the value of the contract is variable based upon the amount of costs incurred, as well as other incentive fees based upon achievement of contractual schedule commitments or other specified criteria in the contract. Shareline incentive fees are determined based upon the formula under the relevant contract using the Company’s estimated cost to complete for each period. The Company generally utilizes a most likely amount approach to estimate variable consideration. In all such instances, the estimated revenues represent those amounts for which the Company believes a significant reversal of revenue is not probable. Contract Estimates - In estimating contract costs, the Company utilizes a profit-booking rate based upon performance expectations that takes into consideration a number of assumptions and estimates regarding risks related to technical requirements, feasibility, schedule, and contract costs. Management performs periodic reviews of the contracts to evaluate the underlying risks, which may increase the profit-booking rate as the Company is able to mitigate and retire such risks. Conversely, if the Company is not able to retire these risks, cost estimates may increase, resulting in a lower profit-booking rate. The cost estimation process requires significant judgment based upon the professional knowledge and experience of the Company’s engineers, program managers, and financial professionals. Factors considered in estimating the work to be completed and ultimate contract recovery include the availability, productivity, and cost of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any performance delays, the availability and timing of funding from the customer, and the recoverability of any claims included in the estimates to complete. Changes in estimates of sales, costs, and profits on a performance obligation are recognized using the cumulative catch-up method of accounting, which recognizes in the current period the cumulative effect of the changes in current and prior periods. A significant change in an estimate on one or more contracts in a period could have a material effect on the Company's consolidated financial position or results of operations for that period. When estimates of total costs to be incurred exceed estimates of total revenue to be earned on a performance obligation related to a complex, construction-type contract, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. Accounts Receivable - Accounts receivable include amounts related to any unconditional Company right to receive consideration and are presented as accounts receivable, net in the consolidated statements of financial position, separate from other contract balances. Accounts receivable are comprised of amounts billed and currently due from customers. The Company reports accounts receivable net of an allowance for expected credit losses. 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. Contract Assets - Contract assets primarily relate to the Company’s rights to consideration for work completed but not billed as of the reporting date when the right to payment is not just subject to the passage of time, including retention amounts. Contract assets are classified as current assets and, in accordance with industry practice, include amounts that may be billed and collected beyond one year due to the long-term nature of many of the Company's contracts. Contract assets are transferred to accounts receivable when the right to consideration becomes unconditional. Contract Liabilities - Contract liabilities are comprised of advance payments, billings in excess of revenues, and deferred revenue amounts. Such advances are generally not considered a significant financing component, because they are utilized to pay for contract costs within a one-year period. Contract liability amounts are recognized as revenue once the requisite performance progress has occurred. Inventoried Costs - Inventoried costs primarily relate to company-owned raw materials, which are stated at the lower of cost or net realizable value, generally using the average-cost method, and costs capitalized pursuant to applicable provisions of the Federal Acquisition Regulation ("FAR") and U.S. Cost Accounting Standards ("CAS"). 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 current assets and include amounts related to contracts having production cycles longer than one year. Costs to Obtain or Fulfill a Contract - Costs to obtain a contract are incremental direct costs incurred to obtain a contract with a customer and are capitalized if material. Costs to fulfill a contract include costs directly related to a contract or a specific anticipated contract (for example, mobilization and set-up) that generate or enhance our ability to satisfy our performance obligations under a contract. These costs are capitalized to the extent they are expected to be recovered from the associated contract. Capitalized costs to obtain or fulfill a contract are amortized to expense over the expected period of benefit. As of December 31, 2023, capitalized costs to obtain or fulfill a contract were $24 million, included in prepaid expenses and other current assets in the consolidated statements of financial position. Warranty Costs - Certain of the Company’s contracts contain assurance-type warranty provisions, which generally promise that the service or vessel will comply with agreed upon specifications. In such instances, the Company accrues the estimated loss by a charge to income in the relevant period. In limited circumstances, the Company's complex construction type contracts may provide the customer with an option to purchase a warranty or provide an extended assurance service coupled with the primary assurance warranty. In such cases, the Company accounts for the warranty as a separate performance obligation to the extent it is material within the context of the contract. Warranty liabilities are reported within other current liabilities and are not material. Government Grants - The Company recognizes incentive grants, inclusive of transfers of depreciable assets, from federal, state, and local governments at fair value upon compliance with the conditions of their receipt and reasonable assurance that the grants will be received or the depreciable assets will be transferred. Grants related to specific expenses are recognized in the period in which the expenses are incurred as an offset to the related expenses. Grants related to depreciable assets are recognized over the periods and in the proportions in which depreciation expense on those assets is recognized. For the years ended December 31, 2023, 2022, and 2021, the Company recognized cash grant benefits of $14 million, $12 million, and $20 million, respectively, in other long-term liabilities in the consolidated statements of financial position. 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 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 do not affect segment operating income, primarily non-current state income taxes. Non-current state income taxes include deferred state income taxes, which reflect the change in deferred state tax assets and liabilities, and the tax expense or benefit associated with changes in state unrecognized tax benefits in the relevant period. Research and Development - Company-sponsored research and development activities primarily include independent research and development ("IR&D") 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 $35 million, $40 million, and $34 million for the years ended December 31, 2023, 2022, and 2021, respectively. Expenses for research and development sponsored by the customer are charged directly to the related contracts. Environmental Costs - Environmental liabilities are accrued when the Company determines remediation costs are probable and such costs are reasonably estimable. When only a range of costs is established and no amount within the range is more probable than another, the minimum amount in the range is accrued. 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. As of December 31, 2023 and 2022, the Company 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 the Company's long-term debt, the carrying amounts of the Company's financial instruments that are 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 grantor trusts to fund certain non-qualified pension plans. These trusts were valued at $220 million and $209 million as of December 31, 2023 and 2022, respectively, and are presented within miscellaneous other assets within the consolidated statements of financial position. These trusts consist primarily of investments in marketable securities, which are held at fair value within Level 1 of the fair value hierarchy. 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 or other long-term liabilities as appropriate, 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. Asset retirement obligations for which the liability's fair value can be reasonably estimated were immaterial as of December 31, 2023 and 2022. 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. Non-current state income taxes include deferred state income taxes, which reflect the change in deferred state tax assets and liabilities, and the tax expense or benefit associated with changes in state unrecognized tax benefits in the relevant period. These amounts are recorded within operating income, while the current period state income tax expense, which is generally allowable and allocable to contracts, is charged to contract costs and included in cost of sales and service revenues in segment operating income. Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes and 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. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Based on the Company's evaluation of these deferred tax assets, valuation allowances of $29 million and $28 million were recognized as of December 31, 2023 and 2022, 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. The Company recognizes the amount of tax benefit that is more 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, the Company recognizes an expense for the amount of the penalty in the period the tax position is claimed or expected to be claimed in its tax return. Penalties and accrued interest related to unrecognized tax benefits are recognized as a component of income tax expense. Changes in accruals associated with unrecognized tax benefits are recorded in earnings in the period in which 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, which have original maturity dates of 90 days or less. Concentration Risk - The Company’s assets that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with reputable financial institutions and limits the amount of credit exposure with any one of them. The Company regularly evaluates the creditworthiness of these financial institutions and mitigates this credit risk by entering into transactions with high-quality counterparties, limiting the exposure to each counterparty, and monitoring the financial condition of its counterparties. In connection with its U.S. Government contracts, the Company is required to procure certain raw materials, components, and parts from supply sources approved by the U.S. Government. Only one supplier may exist for certain components and parts required to manufacture the Company's products. 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 purchased for internal use are capitalized and amortized over the expected useful life of the software, not to exceed nine The remaining assets are depreciated using the straight-line method, with the following lives: Years Land improvements 2 - 40 Buildings and improvements 2 - 60 Capitalized software costs 3 - 9 Machinery and other equipment 2 - 40 The Company evaluates the recoverability of its property, plant, and equipment when changes in economic circumstances or business objectives indicate the carrying value may not be recoverable. The Company's evaluations include estimated future cash flows, profitability, and other factors affecting 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 determines if an arrangement is a lease at contract inception. A lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognizes a lease liability at the lease commencement date, as the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds over an equivalent term on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively. Right of use assets associated with operating leases are recognized in operating lease assets in the consolidated statements of financial position. Lease liabilities associated with operating leases are recognized in long-term operating lease liabilities, with short-term lease liability amounts included in other current liabilities in the consolidated statements of financial position. Right of use assets associated with finance leases are included in miscellaneous other assets in the consolidated statements of financial position. Finance lease liabilities are included in the current portion of long-term debt and long-term debt in the consolidated statements of financial position. Rent expense for operating leases is recognized on a straight-line basis over the lease term and included in cost of sales and service revenues in the consolidated statements of operations and comprehensive income. Variable lease payments are recognized as incurred and include lease operating expenses, which are based on contractual lease terms. The Company elected for all asset classes to exclude from its consolidated statements of financial position leases having terms of 12 months or less (short-term leases) and elected not to separate lease and non-lease components in the determination of lease payment obligations for its long-term lease contracts. Goodwill and Other Intangible Assets - The Company performs impairment tests for goodwill annually each year and between annual impairment tests if evidence of potential impairment exists. During the second quarter of 2023, the Company elected to change the measurement date of its annual goodwill impairment test from November 30 to October 31. The change is not material to the consolidated financial statements as it does not result in the delay, acceleration or avoidance of an impairment charge, and the test is still performed in the fourth quarter. The Company tests for impairment by assessing qualitative factors to determine whether it is more likely than not that the fair value of other intangible assets or the goodwill allocated to the reporting unit is less than its carrying amount. If the qualitative assessment indicates a possible impairment, the carrying value of the asset or reporting unit is compared with its fair value. If the fair value is determined to be less than the carrying value, the Company records an impairment charge to the reporting unit. Purchased intangible assets are amortized on a straight-line basis or a method based on the pattern of benefits 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 included in miscellaneous other assets in its consolidated statements of financial position. The Company's equity investments align strategically and are integrated with the Company's operations. Accordingly, the Company's share of the net earnings or losses of the investee is included in operating income. 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. These liabilities are recorded in other current liabilities and were immaterial. Self-Insured Workers' Compensation Plan - The Company's operations are subject to federal and state workers' compensation laws. The Company maintains self-insured workers' compensation plans and participates in federally administered second injury workers' compensation funds. The Company estimates the liability for 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. Self-insurance accruals include amounts related to liabilities for reported claims and an estimated accrual for claims incurred but not reported. The Company's workers' compensation liability was discounted at 3.93% and 3.88% as of December 31, 2023 and 2022, 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 $784 million and $778 million as of December 31, 2023 and 2022, 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 and projected loss or claim development factors, has determined it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Loan Receivable - The Company holds a loan receivable in connection with the financing of the sale of its previously owned Avondale Shipyard facility. The receivable was carried at amortized cost of $41 million, net of $9 million of loan discount, as of December 31, 2023, and at amortized cost of $39 million, net of $11 million loan discount, as of December 31, 2022. The loan receivable approximates fair value and is recorded in miscellaneous other assets on the consolidated statements of financial position. Interest income is recognized on an accrual basis using the effective yield method. The discount is accreted into income using the effective yield method over the estimated life of the loan receivable. 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 a plan's obligation could be effectively settled. A 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 re-measurement 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 loss and amortized over the expected future service period of active participants as of the date of amendment. Actuarial gains and losses arising from differences between assumptions and actual experience or changes in assumptions are deferred in accumulated other comprehensive loss. 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 remaining service life of the plan participants. 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 loss and amortized as described above. 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 to equal the number ultimately expected to vest based on the Company's expectations regarding the relevant performance and service criteria. |
Accounting Standards Updates
Accounting Standards Updates | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Updates | ACCOUNTING STANDARDS UPDATES In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional exceptions to GAAP for certain transactions related to the transition away from The London Interbank Offered Rate (“LIBOR”). The amended guidance is designed to provide relief from the accounting analysis and impacts that may otherwise be required for modifications to agreements (e.g., loans, debt securities, derivatives, borrowings) necessitated by the reference rate reform. It also provides optional expedients to enable companies to continue to apply hedge accounting to certain hedging relationships impacted by the reference rate reform. Application of the guidance in the amendment is optional, is only available in certain situations, and is only available for companies to apply until December 31, 2022. This standard did not impact the Company's financial results or disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new guidance requires new tabular and narrative segment disclosures of significant expenses that are regularly reported to the chief operating decision maker and the nature of segment expense information used to manage operations. The new guidance is effective for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the impacts of the new guidance on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance requires disaggregated information about the effective tax rate reconciliation and additional information on taxes paid that meet a quantitative threshold. The new guidance is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impacts of the new guidance on its consolidated financial statements. Other accounting pronouncements issued but not effective until after December 31, 2023, are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and Divestitures | ACQUISITIONS AND DIVESTITURES Acquisition of Alion In August 2021, the Company acquired all of the outstanding common stock of Alion Holding Corp., the parent company of Alion Science and Technology Corporation (“Alion”), a technology-driven solutions provider. The Company accounted for the transaction as a business combination using the acquisition method of accounting in accordance with Accounting Standards Codification ("ASC") 805 – “Business Combinations.” The purchase price was $1.79 billion, including $148 million of cash received in the acquisition. Pro Forma Financial Information The following unaudited consolidated pro forma summary has been prepared by adjusting the Company's historical data to give effect to the acquisition of Alion as if it had occurred on January 1, 2021. Pro Forma (Unaudited) Year Ended December 31 ($ in millions, except per share amounts) 2023 2022 2021 Sales and service revenues $ 11,454 $ 10,676 $ 10,364 Net earnings $ 681 $ 579 $ 539 Basic earnings per share $ 17.07 $ 14.44 $ 13.37 Diluted earnings per share $ 17.07 $ 14.44 $ 13.37 These unaudited pro forma results include adjustments related to the acquisition, such as the amortization of acquired intangible assets and interest expense on debt financing. The unaudited consolidated pro forma financial information was prepared in accordance with GAAP and is not necessarily indicative of the results of operations that would have occurred if the acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company. The unaudited pro forma results do not reflect events that either have occurred or may occur in the future, including, but not limited to, the anticipated realization of operating synergies in subsequent periods. These results also do not give effect to certain charges that the Company incurred in connection with the acquisition, including, but not limited to, additional professional fees and employee integration. Divestitures In February 2021, the Company contributed its San Diego Shipyard business to a joint venture, Titan Acquisition Holdings, L.P. ("Titan"), in exchange for a 10% non-controlling interest. Titan is a leading provider of ship repair and specialty fabrication services to government and commercial customers. The joint venture contribution was completed as part of the Company’s operating strategy. The Company recognized its interest in Titan at fair value, which approximated $83 million. No gain or loss was recognized in the transaction. The Company transferred $22 million to Titan as part of the exchange. The Company's investment in Titan, inclusive of equity earnings and distributions, of $70 million as of December 31, 2022, is recorded in miscellaneous other assets in the consolidated statements of financial position. In June 2023, the Company sold its investment in Titan. For the year ended December 31, 2023, the Company received $63 million in proceeds and recognized an immaterial loss on sale. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Common Stock - Changes in the number of Company outstanding shares for the year ended December 31, 2023, 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 18: Stock Compensation Plans. Treasury Stock - In January 2024, the Company's board of directors authorized an increase in the Company's stock repurchase program from $3.2 billion to $3.8 billion and an extension of the term of the program to December 31, 2028. Repurchases are made from time to time at management's discretion in accordance with applicable federal securities laws. For the year ended December 31, 2023, the Company repurchased 337,007 shares at an aggregate cost of $75 million. For the years ended December 31, 2022 and 2021, the Company repurchased 244,561 and 544,440 shares, respectively, at aggregate costs of $52 million and $101 million, respectively. The cost of purchased shares is recorded as treasury stock in the consolidated statements of financial position. Dividends - In November 2023, the Company's board of directors authorized an increase in the Company's quarterly cash dividend from $1.24 per share to $1.30 per share. In November 2022, the Company's board of directors authorized an increase in the Company's quarterly cash dividend from $1.18 per share to $1.24 per share. In November 2021, the Company's board of directors authorized an increase in the Company's quarterly cash dividend from $1.14 per share to $1.18 per share. The Company paid cash dividends totaling $200 million ($5.02 per share), $192 million ($4.78 per share), and $186 million ($4.60 per share) in the years ended December 31, 2023, 2022, and 2021, respectively. Accumulated Other Comprehensive Loss - Other comprehensive loss refers to gains and losses recorded as an element of stockholders' equity but excluded from net earnings. The accumulated other comprehensive loss was comprised of unamortized benefit plan costs of $422 million and $599 million as of December 31, 2023 and 2022, respectively. The changes in accumulated other comprehensive loss by component for the years ended December 31, 2023, 2022, and 2021, were as follows: ($ in millions) Benefit Plans Other Total Balance as of December 31, 2020 $ (1,546) $ (1) $ (1,547) Other comprehensive income before reclassifications 720 — 720 Amounts reclassified from accumulated other comprehensive loss Amortization of prior service cost 1 11 — 11 Amortization of net actuarial loss 1 107 — 107 Tax benefit (expense) for items of other comprehensive income (215) 1 (214) Net current period other comprehensive income 623 1 624 Balance as of December 31, 2021 (923) — (923) Other comprehensive income before reclassifications 390 — 390 Amounts reclassified from accumulated other comprehensive loss Amortization of prior service cost 1 18 — 18 Amortization of net actuarial loss 1 32 — 32 Settlement gain 1 (4) — (4) Tax expense for items of other comprehensive income (112) — (112) Net current period other comprehensive income 324 — 324 Balance as of December 31, 2022 (599) — (599) Other comprehensive income before reclassifications 221 — 221 Amounts reclassified from accumulated other comprehensive loss Amortization of prior service cost 1 15 — 15 Amortization of net actuarial loss 1 2 — 2 Tax expense for items of other comprehensive income (61) — (61) Net current period other comprehensive income 177 — 177 Balance as of December 31, 2023 $ (422) $ — $ (422) 1 These accumulated comprehensive loss components are included in the computation of net periodic benefit cost. See Note 17: Employee Pension and Other Postretirement Benefits. The tax expense recorded in stockholders' equity for the amounts reclassified from accumulated other comprehensive loss for the years ended December 31, 2023, 2022, and 2021, was $4 million, $12 million, and $30 million, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic and diluted earnings per common share were calculated as follows: Year Ended December 31 (in millions, except per share amounts) 2023 2022 2021 Net earnings $ 681 $ 579 $ 544 Weighted-average common shares outstanding 39.9 40.1 40.3 Net effect of dilutive stock options and awards — — — Dilutive weighted-average common shares outstanding 39.9 40.1 40.3 Earnings per share - basic $ 17.07 $ 14.44 $ 13.50 Earnings per share - diluted $ 17.07 $ 14.44 $ 13.50 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 the treasury stock method, the Company has excluded from the diluted share amounts presented above the effects of 0.4 million Restricted Performance Stock Rights ("RPSRs") for each of the years ended December 31, 2023, 2022, and 2021. |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Disaggregation of Revenue [Abstract] | |
Revenue from Contract with Customer | REVENUE The following is a description of principal activities from which the Company generates its revenues. For more detailed information regarding reportable segments, see Note 8: Segment Information. For more detailed information regarding the Company's significant accounting policy for revenue, see Note 2: Summary of Significant Accounting Policies. U.S. Government Contracts The Ingalls and Newport News segments generate revenue primarily from performance under multi-year contracts with the U.S. Government, generally the U.S. Navy and U.S. Coast Guard, or prime contractors to contracts with the U.S. Government, relating to the advance planning, design, construction, repair, maintenance, refueling, overhaul, or inactivation of nuclear-powered ships and non-nuclear ships. The period over which the Company performs may extend past five years. The Mission Technologies segment also generates the majority of its revenue from contracts with the U.S. Government, including U.S. Government agencies. The Company generally invoices and receives related payments based upon performance progress no less frequently than monthly. Shipbuilding - For most of the Company's shipbuilding contracts, the customer contracts with the Company to provide a comprehensive service of designing, procuring long-lead-time materials, manufacturing, and integrating complex equipment and technologies into a single ship or project, often resulting in a single performance obligation. Contract modifications to account for changes in specifications and requirements are recognized when approved by the customer. In the majority of circumstances, modifications do not result in additional performance obligations that are distinct from the existing performance obligations in the contract, and the effects of the modifications are recognized as an adjustment to revenue on a cumulative catch-up basis. Alternatively, in instances in which the performance obligations in the modifications are deemed distinct, contract modifications are accounted for prospectively. The Company considers incentive and award fees to be variable consideration and includes in the transaction price at inception the consideration to which the Company expects to be entitled under the terms and conditions of the contract, generally estimated using a most likely amount approach. Estimated revenues represent those amounts for which the Company believes a significant reversal of revenue is not probable. The Company recognizes revenues related to shipbuilding contracts as it satisfies the related performance obligations over time using a cost-to-cost input method to measure performance progress, which best reflects the transfer of control to the customer. Services - The Mission Technologies segment generates revenue primarily under U.S. Government contracts. Contracts generally are structured using either an Indefinite Delivery/Indefinite Quantity ("IDIQ") vehicle, under which orders are issued, or a standalone contract. Contracts may be fixed-price or cost-type, include variable consideration such as incentives and awards, and structured as task orders under an IDIQ contract vehicle or requirements contract vehicle. In either case, the Company generally performs services over a shorter duration and may continue to perform upon exercise of related period of performance options that are also shorter in duration. The Company’s performance obligations vary in nature and may be stand-ready, in which case the Company responds to the customer’s needs on the basis of its demand, a recurring service, typically recurring maintenance services, or a single performance obligation that does not comprise a series of distinct services. In determining transaction price, the Company considers incentives and other contingencies to be variable consideration and includes in the initial transaction price the consideration to which the Company expects to be entitled under the terms and conditions of the contract, generally estimated using a most likely amount approach. Transaction price is limited to the extent of funding allotted by the customer and available for performance, and estimated revenues represent those amounts for which the Company believes a significant reversal of revenue is not probable. Where a series of distinct services has been identified, the Company generally allocates variable consideration to distinct time increments of service. The Company generally recognizes revenue as it satisfies the related performance obligations over time using a cost-to-cost input method to measure performance progress, because, even when the Company has identified a series of services, its cost incurrence pattern generally is not ratable given the complex nature of the services the Company provides. Invoices are issued and related payments are received, on the basis of performance progress, no less frequently than monthly. In addition, many of the Company's U.S. Government services contracts are time and material arrangements. As a result, the Company often utilizes the practical expedient allowing the recognition of revenue in the amount the Company invoices, which corresponds with the value provided to the customer and to which the Company is entitled to payment for performance to date. Non-U.S. Government Contracts Revenues generated under commercial and state and local government agency contracts are primarily derived from the provision of nuclear and environmental services. Non-U.S. Government contracts typically are one or two years in duration. In determining transaction price, the Company considers incentives and other contingencies to be variable consideration and includes in the initial transaction price the consideration to which the Company expects to be entitled under the terms and conditions of the contract, generally estimated using a most likely amount approach. In the context of variable consideration, the Company limits the transaction price to amounts for which the Company believes a significant reversal of revenue is not probable. Such amounts may relate to transaction price in excess of funding, a lack of history with the customer, a lack of history with the goods or services being provided, or other items. Revenue generally is recognized over time given the terms and conditions of the related contracts. The Company generally utilizes a cost-to-cost input method to measure performance progress, which best reflects the transfer of control to the customer. The Company’s non-U.S. Government contract portfolio is comprised of a large number of time and material arrangements. As a result, the Company often utilizes the practical expedient allowing the recognition of revenue in the amount the Company invoices, which corresponds with the value provided to the customer and to which the Company is entitled to payment for performance to date. Disaggregation of Revenue The following tables present revenues on a disaggregated basis, in a manner that reconciles with the Company's reportable segment disclosures, for the following categories: product versus service type, customer type, contract type, and major program. See Note 8: Segment Information. The Company believes that this level of disaggregation provides investors with information to evaluate the Company’s financial performance and provides the Company with information to make capital allocation decisions in the most appropriate manner. The following tables present revenues on a disaggregated basis: Year Ended December 31, 2023 ($ in millions) Ingalls Newport News Mission Technologies Intersegment Eliminations Total Revenue Type Product sales $ 2,495 $ 5,053 $ 116 $ — $ 7,664 Service revenues 248 1,077 2,465 — 3,790 Intersegment 9 3 118 (130) — Sales and service revenues $ 2,752 $ 6,133 $ 2,699 $ (130) $ 11,454 Customer Type Federal $ 2,743 $ 6,129 $ 2,558 $ — $ 11,430 Commercial — 1 22 — 23 State and local government agencies — — 1 — 1 Intersegment 9 3 118 (130) — Sales and service revenues $ 2,752 $ 6,133 $ 2,699 $ (130) $ 11,454 Contract Type Firm fixed-price $ 2 $ 4 $ 322 $ — $ 328 Fixed-price incentive 2,497 3,364 6 — 5,867 Cost-type 244 2,762 2,039 — 5,045 Time and materials — — 214 — 214 Intersegment 9 3 118 (130) — Sales and service revenues $ 2,752 $ 6,133 $ 2,699 $ (130) $ 11,454 Year Ended December 31, 2022 ($ in millions) Ingalls Newport News Mission Technologies Intersegment Eliminations Total Revenue Type Product sales $ 2,372 $ 4,821 $ 90 $ — $ 7,283 Service revenues 186 1,026 2,181 — 3,393 Intersegment 12 5 116 (133) — Sales and service revenues $ 2,570 $ 5,852 $ 2,387 $ (133) $ 10,676 Customer Type Federal $ 2,558 $ 5,846 $ 2,221 $ — $ 10,625 Commercial — 1 49 — 50 State and local government agencies — — 1 — 1 Intersegment 12 5 116 (133) — Sales and service revenues $ 2,570 $ 5,852 $ 2,387 $ (133) $ 10,676 Contract Type Firm fixed-price $ 8 $ 14 $ 277 $ — $ 299 Fixed-price incentive 2,369 3,009 — — 5,378 Cost-type 181 2,824 1,725 — 4,730 Time and materials — — 269 — 269 Intersegment 12 5 116 (133) — Sales and service revenues $ 2,570 $ 5,852 $ 2,387 $ (133) $ 10,676 Year Ended December 31, 2021 ($ in millions) Ingalls Newport News Mission Technologies Intersegment Eliminations Total Revenue Type Product sales $ 2,357 $ 4,543 $ 100 $ — $ 7,000 Service revenues 156 1,109 1,259 — 2,524 Intersegment 15 11 117 (143) — Sales and service revenues $ 2,528 $ 5,663 $ 1,476 $ (143) $ 9,524 Customer Type Federal $ 2,513 $ 5,652 $ 1,310 $ — $ 9,475 Commercial — — 48 — 48 State and local government agencies — — 1 — 1 Intersegment 15 11 117 (143) — Sales and service revenues $ 2,528 $ 5,663 $ 1,476 $ (143) $ 9,524 Contract Type Firm fixed-price $ 33 $ 41 $ 205 $ — $ 279 Fixed-price incentive 2,329 2,913 5 — 5,247 Cost-type 151 2,698 894 — 3,743 Time and materials — — 255 — 255 Intersegment 15 11 117 (143) — Sales and service revenues $ 2,528 $ 5,663 $ 1,476 $ (143) $ 9,524 Year Ended December 31 ($ in millions) 2023 2022 2021 Major Programs Amphibious assault ships $ 1,511 $ 1,415 $ 1,328 Surface combatants and coast guard cutters 1,225 1,138 1,179 Other 16 17 21 Total Ingalls 2,752 2,570 2,528 Aircraft carriers 3,374 3,203 3,073 Submarines 2,161 2,002 1,917 Other 598 647 673 Total Newport News 6,133 5,852 5,663 C5ISR, CEW&S, LVC 2,232 1,950 1,034 Oil and gas services — — 14 Other 467 437 428 Total Mission Technologies 2,699 2,387 1,476 Intersegment eliminations (130) (133) (143) Sales and service revenues $ 11,454 $ 10,676 $ 9,524 As of December 31, 2023, the Company had $48.1 billion of remaining performance obligations. The Company expects to recognize approximately 22% of its remaining performance obligations as revenue through 2024, an additional 30% through 2026, and the balance thereafter. Cumulative Catch-up Revenue Adjustments The following table presents the effect of net cumulative catch-up revenue adjustments on operating income and diluted earnings per share: Year Ended December 31 ($ in millions, except per share amounts) 2023 2022 2021 Effect on operating income $ 118 $ 113 $ 115 Effect on diluted earnings per share $ 2.33 $ 2.22 $ 2.26 For each of the years ended December 31, 2023, 2022, and 2021, no individual favorable cumulative catch-up revenue adjustment was material to the Company's consolidated statements of operations and comprehensive income. For each of the years ended December 31, 2023, 2022, and 2021, no individual unfavorable cumulative catch-up revenue adjustment was material to the Company's consolidated statements of operations and comprehensive income. Contract Balances Contract assets primarily relate to the Company's rights to consideration for work completed but not billed as of the reporting date when the right to payment is not just subject to the passage of time. Contract liabilities relate to advance payments, billings in excess of revenues, and deferred revenue amounts. Contract assets include retention amounts, substantially all of which were under U.S. Government contracts, and were comprised of the following: December 31 ($ in millions) 2023 2022 Due from U.S. Government $ 1,471 $ 1,165 Due from other customers 66 75 Total contract assets $ 1,537 $ 1,240 The Company reports contract balances in a net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Net contract assets were comprised as follows: December 31 ($ in millions) 2023 2022 2023 over 2022 Contract assets $ 1,537 $ 1,240 $ 297 Contract liabilities 1,063 766 297 Net contract assets $ 474 $ 474 $ — For the year ended December 31, 2023, the Company recognized revenue of $690 million related to its contract liabilities as of December 31, 2022. For the year ended December 31, 2022, the Company recognized revenue of $562 million related to its contract liabilities as of December 31, 2021. For the year ended December 31, 2021, the Company recognized revenue of $382 million related to its contract liabilities as of December 31, 2020. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company is organized into three reportable segments: Ingalls, Newport News, and Mission Technologies, consistent with how management makes operating decisions and assesses performance. U.S. Government Sales - Revenues from the U.S. Government include revenues from contracts for which HII is the prime contractor, as well as contracts for which the Company is a subcontractor and the ultimate customer is the U.S. Government. The Company derived over 95% of its revenues from the U.S. Government for each of the years ended December 31, 2023, 2022, and 2021. Assets - Substantially all of the Company's assets are located or maintained in the United States. Results of Operations by Segment The following table presents the Company's operating results by segment: Year Ended December 31 ($ in millions) 2023 2022 2021 Sales and Service Revenues Ingalls $ 2,752 $ 2,570 $ 2,528 Newport News 6,133 5,852 5,663 Mission Technologies 2,699 2,387 1,476 Intersegment eliminations (130) (133) (143) Total sales and service revenues $ 11,454 $ 10,676 $ 9,524 Operating Income Ingalls $ 362 $ 292 $ 281 Newport News 379 357 352 Mission Technologies 101 63 50 Total segment operating income 842 712 683 Non-segment factors affecting operating income Operating FAS/CAS Adjustment (72) (145) (157) Non-current state income taxes 11 (2) (13) Total operating income $ 781 $ 565 $ 513 Sales transactions between segments are generally recorded at cost. Other Financial Information The following tables present the Company's assets, capital expenditures, and depreciation and amortization by segment: December 31 ($ in millions) 2023 2022 2021 Assets Ingalls $ 1,619 $ 1,633 $ 1,659 Newport News 4,612 4,344 4,179 Mission Technologies 3,161 3,347 3,553 Corporate 1,823 1,533 1,236 Total assets $ 11,215 $ 10,857 $ 10,627 Year Ended December 31 ($ in millions) 2023 2022 2021 Capital Expenditures (1) Ingalls $ 65 $ 69 $ 72 Newport News 196 182 201 Mission Technologies 11 20 38 Corporate 6 1 — Total capital expenditures $ 278 $ 272 $ 311 (1) Net of grant proceeds for capital expenditures Year Ended December 31 ($ in millions) 2023 2022 2021 Depreciation and Amortization Ingalls $ 76 $ 79 $ 74 Newport News 150 148 146 Mission Technologies 120 130 72 Corporate 1 1 1 Total depreciation and amortization $ 347 $ 358 $ 293 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | ACCOUNTS RECEIVABLE Accounts receivable include amounts related to any unconditional Company right to receive consideration. Substantially all amounts included in accounts receivable as of December 31, 2023, are expected to be collected in 2024. The Company's accounts receivable are primarily with the U.S. Government and include balance amounts from companies acting as a prime contractor to the U.S. Government. The Company does not have material exposure to accounts receivable credit risk. Accounts receivable were comprised of the following: December 31 ($ in millions) 2023 2022 Due from U.S. Government $ 464 $ 631 Due from other customers 5 7 Total accounts receivable 469 638 Allowance for expected credit losses (8) (2) Total accounts receivable, net $ 461 $ 636 |
Inventoried Costs, Net
Inventoried Costs, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventoried Costs, Net | INVENTORIED COSTS, NET Inventoried costs are principally associated with contracts for which the U.S. government is the primary customer. As a result, the Company does not believe it has significant exposure to recoverability risk related to inventoried costs. Inventoried costs were comprised of the following: December 31 ($ in millions) 2023 2022 Production costs of contracts in process $ 40 $ 54 Raw material inventory 146 129 Total inventoried costs, net $ 186 $ 183 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill HII performs impairment tests for goodwill each year and between annual impairment tests if an event occurs or circumstances change that would more likely than not reduce the fair values of the Company's reporting units below their carrying values. Reporting units are aligned with the Company's businesses. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the goodwill allocated to the reporting unit is less than its carrying amount. If the qualitative assessment indicates a possible impairment, then the Company utilizes a combination of discounted cash flow analysis and comparative market multiples to determine the fair values of its businesses for comparison to their corresponding book values. In connection with the Company’s annual goodwill impairment test as of October 31, 2023, management tested goodwill for each of its three reporting units with goodwill balances. Based on the annual goodwill impairment analysis, the Company estimated that the fair value of the Mission Technologies segment exceeded its carrying value by approximately 10%. The Company determined that the estimated fair values of its remaining reporting units exceeded by more than 10% their corresponding carrying values as of October 31, 2023. As of each of December 31, 2023 and 2022, accumulated goodwill impairment losses were $2,755 million, comprised of $1,568 million and $1,187 million at Ingalls and Newport News, respectively. For the year ended December 31, 2022, the Company recorded goodwill adjustments of $10 million related to the acquisition of Alion in 2021, resulting from updates to Alion's tax carryforwards and the true-up of estimated taxes to filed income tax returns for the pre-acquisition period. For the years ended December 31, 2023 and 2022, the carrying amounts of goodwill changed as follows: ($ in millions) Ingalls Newport News Mission Technologies Total Balance as of December 31, 2021 $ 175 $ 721 $ 1,732 $ 2,628 Adjustments — — (10) (10) Balance as of December 31, 2022 175 721 1,722 2,618 Adjustments — — — — Balance as of December 31, 2023 $ 175 $ 721 $ 1,722 $ 2,618 Other Intangible Assets The Company performs tests for impairment of long-lived assets whenever events or circumstances suggest that long-lived assets may be impaired. The Company's purchased intangible assets are being amortized on a straight-line basis or a method based on the pattern of benefits over their estimated useful lives. Net intangible assets consist primarily of amounts relating to customer relationships and existing contract backlog within Mission Technologies, as well as nuclear-powered aircraft carrier and submarine program intangible assets, with an aggregate weighted-average useful life of 29 years based on the long life cycle of the related programs. Aggregate amortization expense for the years ended December 31, 2023, 2022, and 2021, was $128 million, $140 million, and $86 million, respectively. The Company expects amortization for currently recorded purchased intangible assets of $109 million in 2024, $99 million in 2025, $80 million in 2026, $60 million in 2027, and $53 million in 2028. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company's earnings are primarily domestic, and its effective tax rate on earnings from operations for the year ended December 31, 2023, was 20.2%, compared with 19.5% and 12.5% for 2022 and 2021, respectively. For the year ended December 31, 2023, the Company's effective tax rate differed from the statutory federal corporate income tax rate primarily as a result of estimated research and development tax credits for 2023 and prior years. For the year ended December 31, 2022, the Company's effective tax rate differed from the statutory federal corporate income tax rate primarily as a result of estimated research and development tax credits for 2022 and prior years. For the year ended December 31, 2021, the Company’s effective tax rate differed from the statutory federal corporate income tax rate primarily as a result of a tax loss associated with the sale of the Company's oil and gas business and estimated research and development tax credits for 2021 and prior years. Non-current state income taxes include deferred state income taxes, which reflect the change in deferred state tax assets and liabilities and the tax expense or benefit associated with changes in state unrecognized tax benefits in the relevant period. These amounts are recorded within operating income. Current period state income tax expense is charged to contract costs and included in cost of sales and service revenues in segment operating income. Federal and foreign income tax expense for the years ended December 31, 2023, 2022, and 2021, consisted of the following: Year Ended December 31 ($ in millions) 2023 2022 2021 Income Taxes on Operations Federal and foreign income taxes currently payable (receivable) $ 273 $ 138 $ (12) Change in deferred federal and foreign income taxes (101) 2 90 Total federal and foreign income taxes $ 172 $ 140 $ 78 Earnings and income tax from foreign operations are not material for any periods presented. The following table reconciles our actual income tax expense to income tax expense based on the statutory federal corporate income tax rate: Year Ended December 31 ($ in millions) 2023 2022 2021 Income tax expense (benefit) on operations at statutory rate $ 179 $ 151 $ 131 Tax benefit - sale of business — — (11) Unrecognized tax benefits 7 7 30 Research and development tax credit (22) (25) (78) Other, net 8 7 6 Total federal and foreign income taxes $ 172 $ 140 $ 78 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 and comprehensive income. If the income tax benefits from federal tax positions are ultimately realized, such realization would affect the Company's income tax expense, while 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, 2023, 2022, and 2021 are summarized in the following table: December 31 ($ in millions) 2023 2022 2021 Unrecognized tax benefits at beginning of the year $ 90 $ 81 $ 47 Additions based on tax positions related to the current year 11 8 7 Additions based on tax positions related to prior years — 3 27 Lapse of statute of limitations (3) (2) — Net change in unrecognized tax benefits 8 9 34 Unrecognized tax benefits at end of the year $ 98 $ 90 81 As of December 31, 2023 and 2022, the estimated amounts of the Company's uncertain tax positions, excluding interest and penalties, were liabilities of $98 million and $90 million, respectively. Assuming sustainment of these positions, as of December 31, 2023 and 2022, the reversal of $76 million and $70 million, respectively, of the accrued amounts would favorably affect the Company's effective federal income tax rate in future periods. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. As a result of the unrecognized tax benefits noted above, income tax expense increased by $4 million in 2023 for interest, resulting in an interest liability of $9 million as of December 31, 2023. In 2022, income tax expense increased $2 million for interest, resulting in an interest liability of $5 million as of December 31, 2022. In 2021, income tax expense increased $1 million for interest, resulting in an interest liability of $3 million as of December 31, 2021. The following table summarizes the tax years that are either currently under examination or remain open under the applicable statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: Jurisdiction Years United States - Federal (1) 2016 - 2022 Connecticut 2020 - 2022 Mississippi 2018 - 2022 Virginia 2020 - 2022 (1) The 2016, 2018, 2019, 2021, and 2022 tax years are closed except for the research and development tax credits, and the 2017 tax year is closed except for the manufacturing deduction and research and development tax credit. Although the Company believes it has adequately provided for all unrecognized tax benefits, positions asserted by tax authorities could result in amounts 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 tax authorities for amounts lower than have been accrued. It is reasonably possible that within the next 12 months the amount of unrecognized tax benefits could decrease by $17 million due to the lapse of the statute of limitations. During 2013 the Company entered into the pre-Compliance Assurance Process with the IRS for years 2011 and 2012. Tax years 2014 and 2015 have been closed with the IRS. The Company is part of the IRS Compliance Assurance Process program for the 2014 through 2023 tax years. Open tax years related to state jurisdictions remain subject to examination. Deferred Income Taxes - Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and for income tax purposes. As described above, deferred tax assets and liabilities are calculated as of the balance sheet date using current tax laws and rates expected to be in effect when the deferred tax items reverse in future periods. Net deferred tax liabilities are classified as long-term deferred tax liabilities in the consolidated statements of financial position. The tax effects of significant temporary differences and carry-forwards that resulted in year-end deferred tax balances, as presented in the consolidated statements of financial position, were as follows: December 31 ($ in millions) 2023 2022 Deferred Tax Assets Retirement benefits $ — $ 23 Workers' compensation 157 160 Operating lease liabilities 77 77 Reserves not currently deductible for tax purposes 61 61 Stock compensation 7 7 Net operating losses, tax credit and other carry-forwards 35 37 Capitalized research and development expenses 200 122 Other 10 13 Gross deferred tax assets 547 500 Less valuation allowance 29 28 Net deferred tax assets 518 472 Deferred Tax Liabilities Depreciation and amortization 447 444 Contract accounting differences 78 123 Purchased intangibles 234 250 Operating lease assets 72 73 Retirement benefits 54 — Gross deferred tax liabilities 885 890 Total net deferred tax liabilities $ (367) $ (418) As of December 31, 2023, the Company had state income tax credit carry-forwards of approximately $20 million, which expire from 2024 through 2026. A deferred tax asset of approximately $16 million (net of federal benefit) related to these state income tax credit carry-forwards has been recorded, with a valuation allowance of $12 million against such deferred tax asset as of December 31, 2023. State net operating loss carry-forwards are individually and cumulatively immaterial to the Company’s deferred tax balances and expire from 2030 through 2042. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company's long-term debt consisted of the following: December 31 ($ in millions) 2023 2022 Senior notes due December 1, 2027, 3.483% $ 600 $ 600 Senior notes due May 1, 2025, 3.844% 500 500 Senior notes due May 1, 2030, 4.200% 500 500 Senior notes due August 16, 2023, 0.670% — 400 Senior notes due August 16, 2028, 2.043% 600 600 Term loan due August 19, 2024 145 225 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 Finance lease obligations 12 — Less unamortized debt issuance costs (17) (25) Total long-term debt $ 2,445 $ 2,905 Less current portion 231 399 Long-term debt, net of current portion $ 2,214 $ 2,506 Debt Facilities - In April 2023, the Company amended its existing $1.5 billion credit facility, which includes a letter of credit subfacility of $300 million (the "Revolving Credit Facility"), and term loan due August 19, 2024 (the “Term Loan”), to change the benchmark interest rate from the London Interbank Offered Rate to the Secured Overnight Financing Rate (“SOFR”). The interest rate on both facilities is based on SOFR plus an interest spread, currently 1.475%, based on the Company's credit rating, which may vary between 1.225% and 2.100%. The commitment fee rate on the Revolving Credit Facility as of December 31, 2023, was 0.200% and may vary between 0.125% and 0.300%. The Company does not expect the transition to the SOFR benchmark to materially impact its consolidated financial position, results of operations, or cash flows. As of December 31, 2023, the Company had $12 million in issued but undrawn letters of credit and $1,488 million unutilized under the Revolving Credit Facility. The Company had unamortized debt issuance costs associated with its debt facilities of $6 million and $10 million as of December 31, 2023 and 2022, respectively. The Revolving Credit Facility and the Term Loan contain customary affirmative and negative covenants, as well as a financial covenant based on a maximum total leverage ratio. Each of the Company's existing and future material wholly owned domestic subsidiaries, except those that are specifically designated as unrestricted subsidiaries, are and will be guarantors under the Revolving Credit Facility and the Term Loan. See Note 19: Subsidiary Guarantors. The Company maintains an unsecured commercial paper note program, under which the Company may issue up to $1 billion of unsecured commercial paper notes. As of December 31, 2023, the Company had no outstanding debt under the commercial paper program. Senior Notes - The terms of the Company's 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 consolidations or mergers. Interest on the senior notes is payable semiannually. The Company had unamortized debt issuance costs associated with the senior notes of $11 million and $15 million as of December 31, 2023 and 2022, respectively. I n August 2023, the Company repaid $400 million aggregate principal amount of 0.670% senior notes upon their maturity. Interest on the Mississippi Economic Development Revenue Bonds and Gulf Opportunity Zone Industrial Development Revenue Bonds is payable semiannually. The agreements governing the Company's debt contain customary affirmative and negative covenants. The Company was in compliance with all debt covenants during the year ended December 31, 2023. The estimated fair values of the Company's total long-term debt, including the current portion of long-term debt and excluding finance lease liabilities, as of December 31, 2023, and December 31, 2022, were $2,309 million and $2,703 million, respectively. The estimated fair values of the current portion of the Company's long-term debt, excluding finance lease liabilities, were $229 million and $390 million as of December 31, 2023, and December 31, 2022, respectively. The fair values of the Company's long-term debt were calculated based on recent trades of the Company's debt instruments in inactive markets, which fall within Level 2 under the fair value hierarchy. |
Investigations, Claims, And Lit
Investigations, Claims, And Litigation | 12 Months Ended |
Dec. 31, 2023 | |
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 ASC 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. The Company has also provided footnote disclosure for matters for which a material loss is reasonably possible but a reserve has not been accrued because the likelihood of a material loss is not probable. Antitrust Complaint - On October 6, 2023, a class action antitrust lawsuit was filed against the Company and other defendants in the U.S. District Court for the Eastern District of Virginia. The lawsuit names several HII companies, among other companies, as defendants. The named plaintiffs generally allege that the defendant companies have adhered to a “gentlemen’s agreement” that prohibits any defendant from actively recruiting naval engineers from other defendants. The complaint seeks class certification, treble damages, and any other relief to which the plaintiffs are entitled. Depending on the outcome of the lawsuit, the Company could be subject to penalties and damages that could have a material adverse effect on its consolidated financial position, results of operations, or cash flows. The case is at an early stage, and, as a result, the Company currently is unable to estimate an amount or range of reasonably possible loss or to express an opinion regarding the ultimate outcome of the matter. False Claims Act Complaint - In 2016, the Company was made aware that it is a defendant in a qui tam False Claims Act lawsuit pending in the U.S. District Court for the Middle District of Florida related to the Company’s purchases of allegedly non-conforming parts from a supplier for use in connection with U.S. Government contracts. In August 2019, the Department of Justice (“DoJ”) declined to intervene in the lawsuit, and the lawsuit was unsealed. The court dismissed the complaint in September 2021, and the plaintiff appealed the dismissal to the United States Court of Appeals for the 11th Circuit. In August 2023, the 11th Circuit confirmed the district court's dismissal of the complaint. Insurance Claims - In September 2020, the Company filed a complaint against 32 reinsurers in the Superior Court, State of Vermont, Franklin Unit, seeking a judgment declaring that the Company's business interruption and other losses associated with COVID-19 are covered by the Company's property insurance program. The Company also has initiated arbitration proceedings against six other reinsurers seeking similar relief. In July 2021, the Vermont court granted the reinsurers’ motion for judgment on the pleadings, which would have ended the Company’s claim. The Company appealed the decision to the Vermont Supreme Court, which reversed and remanded the lower court's decision in September 2022, allowing the Company's claim to proceed. No assurances can be provided regarding the ultimate resolution of this matter. In September 2021, the Company filed a complaint in the Superior Court of Delaware, seeking a judgment against certain insurers for breach of contract and breach of the implied covenant of good faith and fair dealing under three representations and warranties insurance policies purchased in connection with the Company’s acquisition of Hydroid. The policies insured the Company against losses relating to the seller’s breach of certain representations and warranties in the Hydroid acquisition agreement. In December 2023, the Company and the insurers settled the matter for a payment of $49.5 million to the Company, recognized in the Mission Technologies segment's other income and gains, net in the consolidated statements of operations and comprehensive income. 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. 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. In some instances, partial or full insurance coverage is available for the Company's liabilities. The costs to resolve cases during the years ended December 31, 2023, 2022, and 2021 were not material individually or in the aggregate. The Company’s estimate of asbestos-related liabilities is subject to uncertainty because liabilities are influenced by many variables that are inherently difficult to predict. Although the Company believes the ultimate resolution of current 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. Following an arbitration proceeding between the parties, in February 2018 the arbitral tribunal awarded the Company approximately $151 million on its claims and awarded the Republic approximately $22 million on its counterclaims. In November 2023, the Company sold its judgment against the Republic to a third party in exchange for an initial cash payment of $70.5 million, recognized in the Ingalls segment's other income and gains, net in the consolidated statements of operations and comprehensive income. The Company's consideration also includes a contingent participating interest in the final amount recovered. The Company is party to various other claims, legal proceedings, and investigations that arise in the ordinary course of business, including U.S. Government investigations that could result in administrative, civil, or criminal proceedings involving the Company. The Company is a contractor with the U.S. Government, and such proceedings can therefore include False Claims Act allegations against the Company. Although the Company believes that the resolution of these other claims, legal proceedings, and investigations will not have a material effect on its consolidated financial position, results of operations, or cash flows, the Company 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lessee, Operating Leases | LEASES The Company leases certain land, warehouses, office space, and production, office, and technology equipment, among other items. Most equipment is leased on a monthly basis. Many land, warehouse, and office space leases include renewal terms that can extend the lease term. The exercise of lease renewal options is at our sole discretion. The depreciable life of assets and leasehold improvements is generally limited by the expected lease term. The Company's lease agreements do not generally contain material residual value guarantees, material restrictive covenants, or purchase options. The Company's lease portfolio consists primarily of operating leases and an immaterial finance lease included in the consolidated financial statements. See Note 2: Summary of Significant Accounting Policies and Note: 13 Debt. The following table presents costs and other information related to the Company's leases: Year Ended December 31 ($ in millions) 2023 2022 2021 Operating lease costs $ 67 $ 69 $ 53 Short-term operating lease costs $ 54 $ 44 $ 43 Variable operating lease costs $ 7 $ 6 $ 4 Operating cash flows from operating leases $ (66) $ (65) $ (52) Right-of-use assets obtained in exchange for new operating lease liabilities $ 80 $ 111 $ 97 Weighted-average remaining lease term (years) - operating leases 9 years 9 years 8 years Weighted-average discount rate - operating leases 5.0 % 4.5 % 3.6 % The undiscounted future non-cancellable lease payments under the Company's operating leases as of December 31, 2023, were as follows: ($ in millions) December 31, 2023 2024 $ 61 2025 56 2026 44 2027 37 2028 27 Thereafter 128 Total lease payments 353 Less: imputed interest 74 Present value of operating lease liabilities $ 279 Lease liabilities included in the Company's consolidated statements of financial position as of December 31, 2023 and 2022, were as follows: December 31 ($ in millions) 2023 2022 Short-term operating lease liabilities $ 51 $ 52 Long-term operating lease liabilities 228 246 Total operating lease liabilities $ 279 $ 298 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Contract Performance Contingencies - Contract profit margins may include estimates of revenues for matters on which the customer and the Company have not reached agreement, such as settlements in the process of negotiation, contract changes, claims, and requests for equitable adjustment for unanticipated contract costs. These estimates are based upon management's best assessment of the underlying causal events and circumstances and recognized to the extent of expected recovery based upon contractual entitlements and the probability of successful negotiation with the customer. The Company believes its outstanding customer settlements will be resolved without material impact to its financial position, results of operations, or cash flows. Environmental Matters - The estimated cost to complete environmental remediation has been accrued when 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 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. Management estimates that as of December 31, 2023, the probable estimable future cost for environmental remediation was not material. Although management cannot predict whether new information gained as remediation progresses or the Company incurs additional remediation obligations 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 letters of credit issued by commercial banks to support certain leases, insurance policies, and contractual performance obligations, as well as surety bonds issued by insurance companies principally to support the Company's self-insured workers' compensation plans. As of December 31, 2023, the Company had $12 million in issued but undrawn letters of credit, as indicated in Note 13: Debt, and $360 million of surety bonds outstanding. U.S. Government Claims - From time to time, the U.S. Government communicates to the Company potential claims, disallowed costs, and penalties concerning prior costs incurred by the Company with which the U.S. Government disagrees. When such preliminary findings are presented, the Company and U.S. Government representatives engage in discussions, from which the Company evaluates the merits of the claims and assesses the amounts being questioned. Although the Company believes that the resolution of any of these matters will not have a material effect on its consolidated financial position, results of operations, or cash flows, it cannot predict the ultimate outcome of these matters. Other Matters - The Company has been in negotiations with a Mission Technologies customer since January 2023 to address issues related to a manufacturing contract. The Company has recorded provisions for contract losses that were not material to the Company's consolidated financial position, results of operations, or cash flows. The parties have not agreed upon a resolution of the matter, and the Company could incur additional future losses on the contract. The Company therefore cannot predict or give assurances regarding the ultimate outcome of this matter. The Company previously disclosed an issue regarding the degree of corrosion of certain steel plates used to fabricate Friedman (NSC 11). The Company’s expectation regarding the resolution of the matter with the customer is included in contract cost and profit estimates. Those estimates include management's best assessment of the underlying causal events, contractual entitlements, and the probability of successful resolution with the customer. The Company does not expect the final resolution of the matter to have a material impact to the Company's consolidated financial position, results of operations, or cash flows. Collective Bargaining Agreements - Of the Company's over 44,000 employees, approximately 45% are covered by a total of nine collective bargaining agreements and one site stabilization agreement. Newport News has three collective bargaining agreements covering represented employees, which expire in April 2024, February 2027, and December 2027. Newport News craft workers employed at the Kesselring Site near Saratoga Springs, New York are represented under an indefinite Department of Energy ("DoE") site agreement. Ingalls has five collective bargaining agreements covering represented employees, all of which expire in March 2026. Approximately 15 Mission Technologies employees in Klamath Falls, Oregon are covered by one collective bargaining agreement that expires in June 2025. Collective bargaining agreements generally expire after three |
Employee Pension and Other Post
Employee Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Pension and Other Postretirement Benefits | EMPLOYEE PENSION AND OTHER POSTRETIREMENT BENEFITS The Company provides eligible employees defined benefit pension plans, defined contribution benefit plans, and other postretirement benefit plans. Non-collectively bargained defined benefit pension plans accruing benefits under the traditional years of service and compensation formula were amended in 2009 to freeze future service accruals and were replaced with a cash balance benefit for all current non-collectively bargained employees. Except for the major collectively bargained plan at Ingalls, the Company's 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. Defined benefit 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. The Company also sponsors 401(k) defined contribution pension plans in which most employees are eligible to participate. Company contributions for most defined contribution pension 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 pension benefit formula, non-collectively bargained employees hired after June 30, 2008, and certain collectively bargained employees hired after July 10, 2017, are eligible to participate in a defined contribution benefit program in lieu of a defined benefit pension plan. The Company's contributions to the qualified defined contribution pension plans for the years ended December 31, 2023, 2022, and 2021, were $158 million, $153 million, and $140 million, respectively. The Company also sponsors defined benefit and defined contribution pension plans to provide benefits in excess of the tax-qualified limits. The liabilities related to these plans as of December 31, 2023, were $202 million and $44 million, respectively, and as of December 31, 2022, were $192 million and $38 million, respectively. Grantor trust assets, primarily in the form of Level 1 marketable securities, are intended to fund certain of these obligations. The trusts’ fair values supporting these liabilities as of December 31, 2023 and 2022, were $220 million and $209 million, respectively, of which $174 million and $169 million, respectively, were related to the non-qualified defined benefit pension plans. The Company provides contributory postretirement health care and life insurance benefits to a dominantly closed group of eligible employees, retirees, and their qualifying dependents. Covered employees achieve eligibility to participate in these contributory plans upon retirement from active service if they meet specified age, years of service, and grandfathered requirements. Benefits are not guaranteed, and the Company reserves the right to amend or terminate coverage at any time. The Company's contributions for retiree health care benefits are subject to caps, which limit Company contributions when spending thresholds are reached. The measurement date for all of the Company's retirement related plans is December 31. The costs of the Company's defined benefit pension plans and other postretirement benefit plans for the years ended December 31, 2023, 2022, and 2021, were as follows: Pension Benefits Other Benefits Year Ended December 31 Year Ended December 31 ($ in millions) 2023 2022 2021 2023 2022 2021 Components of net periodic benefit cost Service cost $ 112 $ 181 $ 199 $ 6 $ 9 $ 10 Interest cost 343 258 240 21 14 14 Expected return on plan assets (529) (594) (553) — — — Amortization of prior service cost (credit) 17 22 15 (2) (4) (4) Amortization of net actuarial loss (gain) 17 35 110 (15) (3) (3) Settlement gain — (4) — — — — Net periodic benefit (income) cost $ (40) $ (102) $ 11 $ 10 $ 16 $ 17 The funded status of these plans as of December 31, 2023 and 2022, was as follows: Pension Benefits Other Benefits December 31 December 31 ($ in millions) 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 6,438 $ 8,569 $ 394 $ 505 Service cost 112 181 6 9 Interest cost 343 258 21 14 Plan participants' contributions 10 6 9 11 Plan amendments — 97 — — Actuarial loss (gain) 62 (2,327) (19) (103) Benefits paid (333) (314) (41) (42) Settlement (390) (32) — — Benefit obligation at end of year 6,242 6,438 370 394 Change in plan assets Fair value of plan assets at beginning of year 6,781 8,460 — — Actual return on plan assets 793 (1,349) — — Employer contributions 12 10 32 31 Plan participants' contributions 10 6 9 11 Benefits paid (333) (314) (41) (42) Settlement (390) (32) — — Fair value of plan assets at end of year 6,873 6,781 — — Funded status $ 631 $ 343 $ (370) $ (394) Amounts recognized in the consolidated statements of financial position: Pension plan assets $ 888 $ 600 $ — $ — Current liability (1) (45) (43) (129) (134) Non-current liability (2) (212) (214) (241) (260) Accumulated other comprehensive loss (income) (pre-tax) related to: Prior service costs (credits) 138 156 (13) (16) Net actuarial loss (gain) 562 780 (107) (102) (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. On November 3, 2023, the Company purchased an annuity contract to transfer $411 million of gross defined benefit pension obligations and related plan assets to an insurance company for approximately 10,000 retirees and beneficiaries. The annuity contract was purchased using assets from the pension master trust, and no additional funding contribution was required. This transaction had no impact on the amount, timing, or form of the monthly retirement benefit payments to the affected retirees and beneficiaries. The transaction did not trigger settlement accounting under ASC 715 – “Compensation – Retirement Benefits.” In 2022, the Company purchased annuity contracts to transfer $32 million of gross defined benefit pension obligations and related plan assets to an insurance company for approximately 500 retirees and beneficiaries. The annuity contracts were purchased using assets from the pension master trust, and no additional funding contribution was required. This transaction had no impact on the amount, timing, or form of the monthly retirement benefit payments to the affected retirees and beneficiaries. In connection with this transaction, the Company recognized a noncash, non-operating pension settlement gain of $4 million for the affected plan, which represents the accelerated recognition of actuarial losses that were included in accumulated other comprehensive loss within stockholders' equity. The Projected Benefit Obligation ("PBO"), Accumulated Benefit Obligation ("ABO"), and asset values for the Company's qualified pension plans were $6,040 million, $5,820 million, and $6,873 million, respectively, as of December 31, 2023, and $6,246 million, $6,017 million, and $6,781 million, respectively, as of December 31, 2022. 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 PBOs and fair values of plan assets for all qualified and non-qualified pension plans with PBOs in excess of plan assets were $864 million and $607 million, respectively, as of December 31, 2023, and $868 million and $611 million, respectively, as of December 31, 2022. The ABOs for all qualified and non-qualified pension plans with ABOs in excess of plan assets were $186 million and $176 million as of December 31, 2023, and 2022, respectively. The ABOs for all pension plans were $6,006 million and $6,193 million as of December 31, 2023 and 2022, respectively. The changes in amounts recorded in accumulated other comprehensive income (loss) were as follows: Pension Benefits Other Benefits Year Ended December 31 Year Ended December 31 ($ in millions) 2023 2022 2021 2023 2022 2021 Prior service credit (cost) $ — $ (97) $ — $ — $ — $ 14 Amortization of prior service cost (credit) 17 22 15 (2) (4) (4) Net actuarial gain 202 384 704 19 103 2 Amortization of net actuarial loss (gain) 17 35 110 (15) (3) (3) Other — (4) (1) — (1) 1 Total changes in accumulated other comprehensive income (loss) $ 236 $ 340 $ 828 $ 2 $ 95 $ 10 The weighted average assumptions used to determine the net periodic benefit costs for each year ended December 31 were as follows: Pension Benefits 2023 2022 2021 Discount rate 5.47 % 3.00 % 2.80 % Expected long-term rate on plan assets 8.00 % 7.25 % 7.25 % Rate of compensation increase 3.63 % 3.58 % 3.62 % Other Benefits 2023 2022 2021 Discount rate 5.50 % 2.94 % 2.75 % Initial health care cost trend rate assumed for next year 6.00 % 5.50 % 5.50 % Gradually declining to a rate of 4.50 % 4.50 % 4.50 % Year in which the rate reaches the ultimate rate 2028 2027 2026 The weighted average assumptions used to determine the benefit obligations as of December 31 of each year were as follows: Pension Benefits Other Benefits December 31 December 31 2023 2022 2023 2022 Discount rate 5.28 % 5.47 % 5.35 % 5.50 % Weighted average interest crediting rate 3.58 % 3.63 % Rate of compensation increase 3.63 % 3.63 % Initial health care cost trend rate assumed for next year 6.00 % 6.00 % Gradually declining to a rate of 4.50 % 4.50 % Year in which the rate reaches the ultimate rate 2029 2028 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 as of December 31, 2023, the Company selected an expected initial health care cost trend rate of 6.00% and an ultimate health care cost trend rate of 4.50% to be reached in 2029. As of December 31, 2022, the Company assumed an expected initial health care cost trend rate of 6.00% and an ultimate health care cost trend rate of 4.50% to be reached in 2028. The Employee Retirement Income Security Act of 1974 ("ERISA"), including amendments under pension relief legislation, defines the minimum amount the Company must contribute to its 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 funded status of each plan. The Company made the following contributions to its defined benefit pension plans and other postretirement benefit plans for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31 ($ in millions) 2023 2022 2021 Pension plans Discretionary Qualified $ — $ — $ 60 Non-qualified 12 10 9 Other benefit plans 32 31 37 Total contributions $ 44 $ 41 $ 106 For the year ending December 31, 2024, the Company expects its cash contributions to its qualified defined benefit pension plans to be less than $1 million, all of which will be discretionary. For the year ending December 31, 2024, the Company expects its cash contributions to its other postretirement benefit plans to be approximately $35 million. The following table presents estimated future benefit payments, using the same assumptions used in determining the Company's benefit obligations, as of December 31, 2023. Benefit payments depend on future employment and compensation levels, years of service, and mortality. Changes in any of these factors could significantly affect these estimated amounts. ($ in millions) Pension Benefits Other Benefit Payments 2024 $ 321 $ 35 2025 340 36 2026 360 36 2027 378 36 2028 395 35 Years 2029 to 2033 $ 2,160 $ 145 Pension Plan Assets Pension assets include public equities, government and corporate bonds, cash and cash equivalents, private real estate funds, private partnerships, 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 Investment Committee 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, 2023, as follows: Range U.S. and international equities 35 - 60% Fixed income securities 20 - 45% Alternative investments 10 - 35% 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 allocations 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 benefit payments. 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 Company 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 investment manager 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, and 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 fixed-income securities typically are categorized as Level 2. Investments in collective trust funds and commingled funds that use Net Asset Values (“NAV”) are valued based on the redemption price of units owned by the master trust, which is based on the current fair values of the fund assets, as reported by the investment manager. 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 in the short term. 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. Private partnership interests include debt and equity investments. These investments are valued based on NAVs or their equivalents, adjusted for capital calls and distributions, reported by the respective general partners. The terms of the partnerships range from seven to ten or more years, and investors do not have the option to redeem their interests in these partnerships. As of December 31, 2023, unfunded commitments to private partnerships were $595 million. Management reviews independently appraised values, audited financial statements, and additional pricing information to evaluate the NAVs. 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 plan 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 adequate liquidity for plan requirements. 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 of the instrument. 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 and credit risks. 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. The Company has credit policies and processes that manage concentrations of risk by seeking to undertake transactions with large well-capitalized counterparties and by monitoring the creditworthiness of these counterparties. Certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. December 31, 2023 ($ in millions) Total Level 1 Level 2 Level 3 Plan assets subject to leveling U.S. and international equities $ 1,723 $ 1,723 $ — $ — Government and agency debt securities 448 — 448 — Corporate and other debt securities 1,469 — 1,469 — Group annuity contract 3 — 3 — Net plan assets subject to leveling $ 3,643 $ 1,723 $ 1,920 $ — Plan assets not subject to leveling U.S. and international equities (a) 1,134 Corporate and other debt securities 234 Real estate investments 532 Private partnerships 828 Hedge funds 388 Cash and cash equivalents, net (b) 114 Total plan assets not subject to leveling 3,230 Net plan assets $ 6,873 (a) U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in commingled trust funds. (b) Cash and cash equivalents are 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. December 31, 2022 ($ in millions) Total Level 1 Level 2 Level 3 Plan assets subject to leveling U.S. and international equities $ 1,910 $ 1,910 $ — $ — Government and agency debt securities 334 — 334 — Corporate and other debt securities 1,106 — 1,106 — Group annuity contract 3 — 3 — Cash and cash equivalents, net 28 28 — — Net plan assets subject to leveling $ 3,381 $ 1,938 $ 1,443 $ — Plan assets not subject to leveling U.S. and international equities (a) 1,494 Corporate and other debt securities 222 Real estate investments 471 Private partnerships 670 Hedge funds 382 Cash and cash equivalents, net (b) 161 Total plan assets not subject to leveling 3,400 Net plan assets $ 6,781 (a) U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in commingled trust funds. (b) Cash and cash equivalents are 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. There was no activity attributable to Level 3 retirement plan assets during the years ended December 31, 2023 and 2022. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Compensation Plans | STOCK COMPENSATION PLANS As of December 31, 2023, 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"), the Huntington Ingalls Industries, Inc. 2012 Long-Term Incentive Stock Plan (the "2012 Plan"), and the Huntington Ingalls Industries, Inc. 2022 Long-Term Incentive Stock Plan (the "2022 Plan"). Stock Compensation Plans On March 1, 2022, the Company's board of directors adopted the 2022 Plan, subject to stockholder approval, and the Company's stockholders approved the 2022 Plan on May 3, 2022. Award grants made on or after May 3, 2022, were made under the 2022 Plan. Award grants made prior to May 3, 2022, were made under the 2011 Plan or the 2012 Plan. No future grants will be made under the 2011 Plan or the 2012 Plan. The 2022 Plan permits awards of stock options, stock appreciation rights, and other stock awards. Stock awards, in the form of RPSRs, restricted stock rights ("RSRs"), and stock rights, are granted to key employees and members of the board of directors without payment to the Company. The 2022 Plan authorized (i) 1.3 million new shares; plus (ii) any shares subject to outstanding awards under the 2012 Plan or 2011 Plan that were subsequently forfeited to the Company; plus (iii) any shares subject to outstanding awards under the 2012 Plan or 2011 Plan that were 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, 2023, the remaining aggregate number of shares of the Company's common stock authorized for issuance under the 2022 Plan was 1.2 million. The 2012 Plan permitted awards of stock options, stock appreciation rights, and other stock awards. Stock awards, in the form of RPSRs, RSRs, and stock rights were granted to key employees and members of the board of directors without payment to the Company. The 2011 Plan permitted the awards of stock options and other stock awards. Stock awards, in the form of stock rights, were granted to members of the board of directors without payment to the Company. 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 Company issued the following stock awards in the years ended December 31, 2023, 2022, and 2021: Restricted Performance Stock Rights - For the year ended December 31, 2023, the Company granted approximately 0.2 million RPSRs at a weighted average share price of $215.24. These rights are subject to cliff vesting on December 31, 2025. For the year ended December 31, 2022, the Company granted approximately 0.2 million RPSRs at a weighted average share price of $204.41. These rights are subject to cliff vesting on December 31, 2024. For the year ended December 31, 2021, the Company granted approximately 0.2 million RPSRs at a weighted average share price of $180.06. These rights were fully vested as of December 31, 2023. All of the RPSRs are subject to the achievement of performance-based targets at the end of the respective vesting periods and will ultimately vest between 0% and 200% of grant date value. Restricted Stock Rights - Retention stock awards are granted to key employees primarily to ensure business continuity. In 2023, the Company granted approximately 9,500 RSRs at a weighted average share price of $213.37, with cliff vesting two one one The Company also received transfers of stock awards from employees in satisfaction of minimum tax withholding obligations associated with the vesting of stock awards during the period. The Company does not consider these transfers as treasury stock because the stock is not issued; rather, the award is surrendered in lieu of payments of cash to settle tax obligations. Stock Rights and Stock Issuances - The Company granted stock rights to its non-employee directors on a quarterly basis in 2023, 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 has met certain stock ownership requirements, the non-employee director may elect under the terms of the Amended and Restated Directors’ Compensation Policy and Amended and Restated 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. Non-employee directors may also elect to receive their annual cash retainers in the form of stock units that become payable upon termination of the director’s board service. Non-employee directors who elect to receive their annual cash retainers in the form of stock units and have met their stock ownership requirements may elect under the terms of the Amended and Restated Directors’ Compensation Policy and Amended and Restated Board Deferred Compensation Policy to receive in the following calendar year 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 stock units are earned, or, if earlier, upon termination of the director’s board service. Stock award activity for the years ended December 31, 2023, 2022, and 2021, was as follows: Stock Awards (in thousands) Weighted-Average Grant Date Fair Value Weighted Average Remaining Contractual Term Outstanding as of December 31, 2020 381 $ 211.77 1.0 year Granted 213 181.66 Adjustment due to performance 19 259.03 Vested (100) 259.03 Forfeited (28) 202.81 Outstanding as of December 31, 2021 485 190.36 1.0 year Granted 166 204.65 Adjustment due to performance 52 209.04 Vested (170) 209.04 Forfeited (27) 199.40 Outstanding as of December 31, 2022 506 189.68 1.0 year Granted 177 215.16 Adjustment due to performance 32 224.35 Vested (155) 224.35 Forfeited (25) 178.68 Outstanding as of December 31, 2023 535 $ 189.98 1.0 year Vested awards include stock awards that fully vested during the year based on the level of achievement of the relevant performance goals. The performance goals for outstanding RPSRs granted in 2023, 2022, and 2021 were based on three metrics as defined in the grant agreements: earnings before interest, taxes, depreciation, amortization, and pension ("EBITDAP"), weighted at 40%, pension-adjusted return on invested capital ("ROIC"), weighted at 40%, and relative EBITDAP growth, weighted at 20%. The Company's EBITDAP growth is measured against EBITDAP growth of the S&P Aerospace and Defense Select Index. Compensation Expense The Company recorded $34 million, $36 million, and $33 million of expense related to stock awards for the years ended December 31, 2023, 2022, and 2021, respectively. The Company recorded $10 million, $9 million, and $8 million as tax benefits related to stock awards for the years ended December 31, 2023, 2022, and 2021, respectively. The Company recognized tax benefits for the years ended December 31, 2023, 2022, and 2021, of $7 million, $8 million, and $4 million, respectively, from the issuance of stock in settlement of stock awards. Unrecognized Compensation Expense As of December 31, 2023, the Company had $2 million of unrecognized compensation expense associated with RSRs granted in 2023, 2022, and 2021, which will be recognized over a weighted average period of 1.1 years, and $33 million of unrecognized expense associated with RPSRs granted in 2023 and 2022, which will be recognized over a weighted average period of 1 year. |
Subsidiary Guarantors
Subsidiary Guarantors | 12 Months Ended |
Dec. 31, 2023 | |
Subsidiary Guarantors [Abstract] | |
Guarantor Subsidiaries [Text Block] | SUBSIDIARY GUARANTORS As described in Note 13: Debt, the Company issued senior notes through the consolidating parent company, HII. Performance of the Company's obligations under its senior notes outstanding as of December 31, 2023, 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 material domestic subsidiaries ("Subsidiary Guarantors"). The Subsidiary Guarantors are 100% owned by HII. Each HII subsidiary that did not provide a guarantee ("Non-Guarantors") is not material and HII, as the parent company issuer, did not have independent assets or operations. There are no significant restrictions on the ability of the parent company and the Subsidiary |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure | Schedule II - Valuation and Qualifying Accounts All other schedules have been omitted because they are not applicable, not required, or the information has been otherwise supplied in the financial statements or notes to the financial statements. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period (Benefits)/Charges to Income Other Balance at End of Period Year Ended December 31, 2021 Valuation allowance for deferred tax assets $ 22 $ — $ — $ 22 Year Ended December 31, 2022 Valuation allowance for deferred tax assets 22 2 4 28 Year Ended December 31, 2023 Valuation allowance for deferred tax assets $ 28 $ 1 $ — $ 29 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net earnings (loss) | $ 681 | $ 579 | $ 544 |
Insider Trading Arrangements
Insider Trading Arrangements - Edgar A. Green III [Member] | 3 Months Ended | |
Dec. 31, 2023 shares | ||
Trading Arrangements, by Individual | ||
Name | Edgar A. Green III | |
Title | Executive Vice President and President, Mission Technologies | |
Adoption Date | November 15, 2023 | |
Termination Date | March 15, 2024 | [1] |
Common Stock [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 7,895 | [2] |
[1] 1 The plan duration extends to the date listed in this column or such earlier date upon the completion of all trades under the plan (or the expiration of the orders relating to such trades without execution) or the occurrence of such other termination events as specified in the plan. 2 The aggregate number of shares to be sold will depend, in part, on the Company’s performance in 2021, 2022 and 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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"). As used in the Notes to the Consolidated Financial Statements, the terms "HII" and "the Company" refer to HII and its subsidiaries. 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 |
Revenue Recognition | Revenue Recognition - Most of the Company's revenues are derived from long-term contracts for the production of goods and services provided to its U.S. Government customers. The Company generally recognizes revenues on contracts with U.S. Government customers over time using a cost-to-cost measure of progress. The use of the cost-to-cost method to measure performance progress over time is supported by clauses in the related contracts that allow the customer to unilaterally terminate the contract for convenience, pay the Company for costs incurred plus a reasonable profit, and take control of any work in process. The Company utilizes the cost-to-cost method to measure performance progress, because it best reflects the continuous transfer of control over the related goods and services to the customer as the Company satisfies its performance obligations. When the customer is not a U.S. Government entity, the Company may recognize revenue over time or at a point in time when control transfers upon delivery, depending upon the facts and circumstances of the related arrangement. When the Company determines that revenue should be recognized over time, the Company utilizes a measure of progress that best depicts the transfer of control of the relevant goods and services to the customer. Generally, the terms and conditions of the contracts result in a transfer of control over the related goods and services as the Company satisfies its performance obligations. Accordingly, the Company recognizes revenue over time using the cost-to-cost method to measure performance progress. The Company may, however, utilize a measure of progress other than cost-to-cost, such as a labor-based measure of progress, if the terms and conditions of the arrangement require such accounting. When using the cost-to-cost method to measure performance progress, certain contracts may include costs that are not representative of performance progress, such as large upfront purchases of uninstalled materials, unexpected waste, or inefficiencies. In these cases, the Company adjusts its measure of progress to exclude such costs, with the goal of better reflecting the transfer of control over the related goods or services to the customer and recognizing revenue only to the extent of the costs incurred that reflect the Company's performance under the contract. In addition, for time and material arrangements, the Company often utilizes the practical expedient allowing the recognition of revenue in the amount the Company invoices, which corresponds with the value provided to the customer and to which the Company is entitled to payment for performance to date. A performance obligation is a promise to transfer a distinct good or service to the customer and is the unit of account for which revenue is recognized. To determine the proper revenue recognition method, consideration is given to whether two or more contracts should be combined and accounted for as one contract and whether a single contract consists of more than one performance obligation. For contracts with multiple performance obligations, the contract transaction price is allocated to each performance obligation using an estimate of the standalone selling price based upon expected cost plus a margin at contract inception, which is generally the price disclosed in the contract. Contracts are often modified to account for changes in contract specifications and requirements. In the majority of circumstances, modifications do not result in additional performance obligations that are distinct from the existing performance obligations in the contract, and the effects of the modifications are recognized as an adjustment to revenue on a cumulative catch-up basis. Alternatively, in instances in which the performance obligations in the modifications are deemed distinct, contract modifications are accounted for prospectively. The amount of revenue recognized as the Company satisfies performance obligations associated with contracts with customers is based upon the determination of transaction price. Transaction price reflects the amount of consideration to which the Company expects to be entitled for performance under the terms and conditions of the relevant contract and may reflect fixed and variable components, including shareline incentive fees whereby the value of the contract is variable based upon the amount of costs incurred, as well as other incentive fees based upon achievement of contractual schedule commitments or other specified criteria in the contract. Shareline incentive fees are determined based upon the formula under the relevant contract using the Company’s estimated cost to complete for each period. The Company generally utilizes a most likely amount approach to estimate variable consideration. In all such instances, the estimated revenues represent those amounts for which the Company believes a significant reversal of revenue is not probable. |
Contract Estimates | Contract Estimates - In estimating contract costs, the Company utilizes a profit-booking rate based upon performance expectations that takes into consideration a number of assumptions and estimates regarding risks related to technical requirements, feasibility, schedule, and contract costs. Management performs periodic reviews of the contracts to evaluate the underlying risks, which may increase the profit-booking rate as the Company is able to mitigate and retire such risks. Conversely, if the Company is not able to retire these risks, cost estimates may increase, resulting in a lower profit-booking rate. The cost estimation process requires significant judgment based upon the professional knowledge and experience of the Company’s engineers, program managers, and financial professionals. Factors considered in estimating the work to be completed and ultimate contract recovery include the availability, productivity, and cost of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any performance delays, the availability and timing of funding from the customer, and the recoverability of any claims included in the estimates to complete. Changes in estimates of sales, costs, and profits on a performance obligation are recognized using the cumulative catch-up method of accounting, which recognizes in the current period the cumulative effect of the changes in current and prior periods. A significant change in an estimate on one or more contracts in a period could have a material effect on the Company's consolidated financial position or results of operations for that period. When estimates of total costs to be incurred exceed estimates of total revenue to be earned on a performance obligation related to a complex, construction-type contract, a provision for the entire loss on the performance obligation is recognized in the period the loss is determined. |
Accounts Receivable | Accounts Receivable - Accounts receivable include amounts related to any unconditional Company right to receive consideration and are presented as accounts receivable, net in the consolidated statements of financial position, separate from other contract balances. Accounts receivable are comprised of amounts billed and currently due from customers. The Company reports accounts receivable net of an allowance for expected credit losses. 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. |
Contract Assets | Contract Assets |
Contract Liabilities | Contract Liabilities |
Inventoried Costs | Inventoried Costs |
Cost to Obtain or Fulfill a Contract | Costs to Obtain or Fulfill a Contract - Costs to obtain a contract are incremental direct costs incurred to obtain a contract with a customer and are capitalized if material. Costs to fulfill a contract include costs directly related to a contract or a specific anticipated contract (for example, mobilization and set-up) that generate or enhance our ability to satisfy our performance obligations under a contract. These costs are capitalized to the extent they are expected to be recovered from the associated contract. Capitalized costs to obtain or fulfill a contract are amortized to expense over the expected period of benefit. As of December 31, 2023, capitalized costs to obtain or fulfill a contract were $24 million, included in prepaid expenses and other current assets in the consolidated statements of financial position. |
Warranty Costs | Warranty Costs - Certain of the Company’s contracts contain assurance-type warranty provisions, which generally promise that the service or vessel will comply with agreed upon specifications. In such instances, the Company accrues the estimated loss by a charge to income in the relevant period. In limited circumstances, the Company's complex construction type contracts may provide the customer with an option to purchase a warranty or provide an extended assurance service coupled with the primary assurance warranty. In such cases, the Company accounts for the warranty as a separate performance obligation to the extent it is material within the context of the contract. Warranty liabilities are reported within other current liabilities and are not material. |
Government Grants | Government Grants - The Company recognizes incentive grants, inclusive of transfers of depreciable assets, from federal, state, and local governments at fair value upon compliance with the conditions of their receipt and reasonable assurance that the grants will be received or the depreciable assets will be transferred. Grants related to specific expenses are recognized in the period in which the expenses are incurred as an offset to the related expenses. Grants related to depreciable assets are recognized over the periods and in the proportions in which depreciation expense on those assets is recognized. For the years ended December 31, 2023, 2022, and 2021, the Company recognized cash grant benefits of $14 million, $12 million, and $20 million, respectively, in other long-term liabilities in the consolidated statements of financial position. |
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 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 do not affect segment operating income, primarily non-current state income taxes. Non-current state income taxes include deferred state income taxes, which reflect the change in deferred state tax assets and liabilities, and the tax expense or benefit associated with changes in state unrecognized tax benefits in the relevant period. |
Research and Development | Research and Development - Company-sponsored research and development activities primarily include independent research and development ("IR&D") 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 $35 million, $40 million, and $34 million for the years ended December 31, 2023, 2022, and 2021, respectively. Expenses for research and development sponsored by the customer are charged directly to the related contracts. |
Environmental Costs | Environmental Costs - Environmental liabilities are accrued when the Company determines remediation costs are probable and such costs are reasonably estimable. When only a range of costs is established and no amount within the range is more probable than another, the minimum amount in the range is accrued. 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. As of December 31, 2023 and 2022, the Company 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 the Company's long-term debt, the carrying amounts of the Company's financial instruments that are 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. |
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 or other long-term liabilities as appropriate, 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. Asset retirement obligations for which the liability's fair value can be reasonably estimated were immaterial as of December 31, 2023 and 2022. |
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. Non-current state income taxes include deferred state income taxes, which reflect the change in deferred state tax assets and liabilities, and the tax expense or benefit associated with changes in state unrecognized tax benefits in the relevant period. These amounts are recorded within operating income, while the current period state income tax expense, which is generally allowable and allocable to contracts, is charged to contract costs and included in cost of sales and service revenues in segment operating income. Deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes and 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. The Company recognizes deferred tax assets to the extent it believes these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. Based on the Company's evaluation of these deferred tax assets, valuation allowances of $29 million and $28 million were recognized as of December 31, 2023 and 2022, 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. The Company recognizes the amount of tax benefit that is more 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, the Company recognizes an expense for the amount of the penalty in the period the tax position is claimed or expected to be claimed in its tax return. Penalties and accrued interest related to unrecognized tax benefits are recognized as a component of income tax expense. Changes in accruals associated with unrecognized tax benefits are recorded in earnings in the period in which 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, which have original maturity dates of 90 days or less. |
Concentration Risk | Concentration Risk - The Company’s assets that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents. The Company places its cash and cash equivalents with reputable financial institutions and limits the amount of credit exposure with any one of them. The Company regularly evaluates the creditworthiness of these financial institutions and mitigates this credit risk by entering into transactions with high-quality counterparties, limiting the exposure to each counterparty, and monitoring the financial condition of its counterparties. In connection with its U.S. Government contracts, the Company is required to procure certain raw materials, components, and parts from supply sources approved by the U.S. Government. Only one supplier may exist for certain components and parts required to manufacture the Company's products. |
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 purchased for internal use are capitalized and amortized over the expected useful life of the software, not to exceed nine The remaining assets are depreciated using the straight-line method, with the following lives: Years Land improvements 2 - 40 Buildings and improvements 2 - 60 Capitalized software costs 3 - 9 Machinery and other equipment 2 - 40 |
Leases | Leases - The Company determines if an arrangement is a lease at contract inception. A lease exists when a contract conveys to a party the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The Company recognizes a lease liability at the lease commencement date, as the present value of future lease payments, using an estimated rate of interest that the Company would pay to borrow equivalent funds over an equivalent term on a collateralized basis. A lease asset is recognized based on the lease liability value and adjusted for any prepaid lease payments, initial direct costs, or lease incentive amounts. The lease term at the commencement date includes any renewal options or termination options when it is reasonably certain that the Company will exercise or not exercise those options, respectively. Right of use assets associated with operating leases are recognized in operating lease assets in the consolidated statements of financial position. Lease liabilities associated with operating leases are recognized in long-term operating lease liabilities, with short-term lease liability amounts included in other current liabilities in the consolidated statements of financial position. Right of use assets associated with finance leases are included in miscellaneous other assets in the consolidated statements of financial position. Finance lease liabilities are included in the current portion of long-term debt and long-term debt in the consolidated statements of financial position. Rent expense for operating leases is recognized on a straight-line basis over the lease term and included in cost of sales and service revenues in the consolidated statements of operations and comprehensive income. Variable lease payments are recognized as incurred and include lease operating expenses, which are based on contractual lease terms. The Company elected for all asset classes to exclude from its consolidated statements of financial position leases having terms of 12 months or less (short-term leases) and elected not to separate lease and non-lease components in the determination of lease payment obligations for its long-term lease contracts. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets - The Company performs impairment tests for goodwill annually each year and between annual impairment tests if evidence of potential impairment exists. During the second quarter of 2023, the Company elected to change the measurement date of its annual goodwill impairment test from November 30 to October 31. The change is not material to the consolidated financial statements as it does not result in the delay, acceleration or avoidance of an impairment charge, and the test is still performed in the fourth quarter. The Company tests for impairment by assessing qualitative factors to determine whether it is more likely than not that the fair value of other intangible assets or the goodwill allocated to the reporting unit is less than its carrying amount. If the qualitative assessment indicates a possible impairment, the carrying value of the asset or reporting unit is compared with its fair value. If the fair value is determined to be less than the carrying value, the Company records an impairment charge to the reporting unit. Purchased intangible assets are amortized on a straight-line basis or a method based on the pattern of benefits 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 |
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. These liabilities are recorded in other current liabilities and were immaterial. Self-Insured Workers' Compensation Plan - The Company's operations are subject to federal and state workers' compensation laws. The Company maintains self-insured workers' compensation plans and participates in federally administered second injury workers' compensation funds. The Company estimates the liability for 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. Self-insurance accruals include amounts related to liabilities for reported claims and an estimated accrual for claims incurred but not reported. The Company's workers' compensation liability was discounted at 3.93% and 3.88% as of December 31, 2023 and 2022, 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 $784 million and $778 million as of December 31, 2023 and 2022, 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 and projected loss or claim development factors, has determined it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. |
Loan Receivable | Loan Receivable - The Company holds a loan receivable in connection with the financing of the sale of its previously owned Avondale Shipyard facility. The receivable was carried at amortized cost of $41 million, net of $9 million of loan discount, as of December 31, 2023, and at amortized cost of $39 million, net of $11 million loan discount, as of December 31, 2022. The loan receivable approximates fair value and is recorded in miscellaneous other assets on the consolidated statements of financial position. Interest income is recognized on an accrual basis using the effective yield method. The discount is accreted into income using the effective yield method over the estimated life of the loan receivable. |
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 a plan's obligation could be effectively settled. A 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 re-measurement 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 loss and amortized over the expected future service period of active participants as of the date of amendment. Actuarial gains and losses arising from differences between assumptions and actual experience or changes in assumptions are deferred in accumulated other comprehensive loss. 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 remaining service life of the plan participants. 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 loss and amortized as described above. |
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 to equal the number ultimately expected to vest based on the Company's expectations regarding the relevant performance and service criteria. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
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 2 - 40 Buildings and improvements 2 - 60 Capitalized software costs 3 - 9 Machinery and other equipment 2 - 40 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Divestitures [Abstract] | |
Business Acquisition, Pro Forma Information | The following unaudited consolidated pro forma summary has been prepared by adjusting the Company's historical data to give effect to the acquisition of Alion as if it had occurred on January 1, 2021. Pro Forma (Unaudited) Year Ended December 31 ($ in millions, except per share amounts) 2023 2022 2021 Sales and service revenues $ 11,454 $ 10,676 $ 10,364 Net earnings $ 681 $ 579 $ 539 Basic earnings per share $ 17.07 $ 14.44 $ 13.37 Diluted earnings per share $ 17.07 $ 14.44 $ 13.37 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in accumulated other comprehensive loss by component for the years ended December 31, 2023, 2022, and 2021, were as follows: ($ in millions) Benefit Plans Other Total Balance as of December 31, 2020 $ (1,546) $ (1) $ (1,547) Other comprehensive income before reclassifications 720 — 720 Amounts reclassified from accumulated other comprehensive loss Amortization of prior service cost 1 11 — 11 Amortization of net actuarial loss 1 107 — 107 Tax benefit (expense) for items of other comprehensive income (215) 1 (214) Net current period other comprehensive income 623 1 624 Balance as of December 31, 2021 (923) — (923) Other comprehensive income before reclassifications 390 — 390 Amounts reclassified from accumulated other comprehensive loss Amortization of prior service cost 1 18 — 18 Amortization of net actuarial loss 1 32 — 32 Settlement gain 1 (4) — (4) Tax expense for items of other comprehensive income (112) — (112) Net current period other comprehensive income 324 — 324 Balance as of December 31, 2022 (599) — (599) Other comprehensive income before reclassifications 221 — 221 Amounts reclassified from accumulated other comprehensive loss Amortization of prior service cost 1 15 — 15 Amortization of net actuarial loss 1 2 — 2 Tax expense for items of other comprehensive income (61) — (61) Net current period other comprehensive income 177 — 177 Balance as of December 31, 2023 $ (422) $ — $ (422) 1 These accumulated comprehensive loss components are included in the computation of net periodic benefit cost. See Note 17: Employee Pension and Other Postretirement Benefits. The tax expense recorded in stockholders' equity for the amounts reclassified from accumulated other comprehensive loss for the years ended December 31, 2023, 2022, and 2021, was $4 million, $12 million, and $30 million, respectively. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per common share were calculated as follows: Year Ended December 31 (in millions, except per share amounts) 2023 2022 2021 Net earnings $ 681 $ 579 $ 544 Weighted-average common shares outstanding 39.9 40.1 40.3 Net effect of dilutive stock options and awards — — — Dilutive weighted-average common shares outstanding 39.9 40.1 40.3 Earnings per share - basic $ 17.07 $ 14.44 $ 13.50 Earnings per share - diluted $ 17.07 $ 14.44 $ 13.50 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following tables present revenues on a disaggregated basis: Year Ended December 31, 2023 ($ in millions) Ingalls Newport News Mission Technologies Intersegment Eliminations Total Revenue Type Product sales $ 2,495 $ 5,053 $ 116 $ — $ 7,664 Service revenues 248 1,077 2,465 — 3,790 Intersegment 9 3 118 (130) — Sales and service revenues $ 2,752 $ 6,133 $ 2,699 $ (130) $ 11,454 Customer Type Federal $ 2,743 $ 6,129 $ 2,558 $ — $ 11,430 Commercial — 1 22 — 23 State and local government agencies — — 1 — 1 Intersegment 9 3 118 (130) — Sales and service revenues $ 2,752 $ 6,133 $ 2,699 $ (130) $ 11,454 Contract Type Firm fixed-price $ 2 $ 4 $ 322 $ — $ 328 Fixed-price incentive 2,497 3,364 6 — 5,867 Cost-type 244 2,762 2,039 — 5,045 Time and materials — — 214 — 214 Intersegment 9 3 118 (130) — Sales and service revenues $ 2,752 $ 6,133 $ 2,699 $ (130) $ 11,454 Year Ended December 31, 2022 ($ in millions) Ingalls Newport News Mission Technologies Intersegment Eliminations Total Revenue Type Product sales $ 2,372 $ 4,821 $ 90 $ — $ 7,283 Service revenues 186 1,026 2,181 — 3,393 Intersegment 12 5 116 (133) — Sales and service revenues $ 2,570 $ 5,852 $ 2,387 $ (133) $ 10,676 Customer Type Federal $ 2,558 $ 5,846 $ 2,221 $ — $ 10,625 Commercial — 1 49 — 50 State and local government agencies — — 1 — 1 Intersegment 12 5 116 (133) — Sales and service revenues $ 2,570 $ 5,852 $ 2,387 $ (133) $ 10,676 Contract Type Firm fixed-price $ 8 $ 14 $ 277 $ — $ 299 Fixed-price incentive 2,369 3,009 — — 5,378 Cost-type 181 2,824 1,725 — 4,730 Time and materials — — 269 — 269 Intersegment 12 5 116 (133) — Sales and service revenues $ 2,570 $ 5,852 $ 2,387 $ (133) $ 10,676 Year Ended December 31, 2021 ($ in millions) Ingalls Newport News Mission Technologies Intersegment Eliminations Total Revenue Type Product sales $ 2,357 $ 4,543 $ 100 $ — $ 7,000 Service revenues 156 1,109 1,259 — 2,524 Intersegment 15 11 117 (143) — Sales and service revenues $ 2,528 $ 5,663 $ 1,476 $ (143) $ 9,524 Customer Type Federal $ 2,513 $ 5,652 $ 1,310 $ — $ 9,475 Commercial — — 48 — 48 State and local government agencies — — 1 — 1 Intersegment 15 11 117 (143) — Sales and service revenues $ 2,528 $ 5,663 $ 1,476 $ (143) $ 9,524 Contract Type Firm fixed-price $ 33 $ 41 $ 205 $ — $ 279 Fixed-price incentive 2,329 2,913 5 — 5,247 Cost-type 151 2,698 894 — 3,743 Time and materials — — 255 — 255 Intersegment 15 11 117 (143) — Sales and service revenues $ 2,528 $ 5,663 $ 1,476 $ (143) $ 9,524 Year Ended December 31 ($ in millions) 2023 2022 2021 Major Programs Amphibious assault ships $ 1,511 $ 1,415 $ 1,328 Surface combatants and coast guard cutters 1,225 1,138 1,179 Other 16 17 21 Total Ingalls 2,752 2,570 2,528 Aircraft carriers 3,374 3,203 3,073 Submarines 2,161 2,002 1,917 Other 598 647 673 Total Newport News 6,133 5,852 5,663 C5ISR, CEW&S, LVC 2,232 1,950 1,034 Oil and gas services — — 14 Other 467 437 428 Total Mission Technologies 2,699 2,387 1,476 Intersegment eliminations (130) (133) (143) Sales and service revenues $ 11,454 $ 10,676 $ 9,524 |
Schedule of Change in Accounting Estimate [Table Text Block] | The following table presents the effect of net cumulative catch-up revenue adjustments on operating income and diluted earnings per share: Year Ended December 31 ($ in millions, except per share amounts) 2023 2022 2021 Effect on operating income $ 118 $ 113 $ 115 Effect on diluted earnings per share $ 2.33 $ 2.22 $ 2.26 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Contract assets include retention amounts, substantially all of which were under U.S. Government contracts, and were comprised of the following: December 31 ($ in millions) 2023 2022 Due from U.S. Government $ 1,471 $ 1,165 Due from other customers 66 75 Total contract assets $ 1,537 $ 1,240 The Company reports contract balances in a net contract asset or contract liability position on a contract-by-contract basis at the end of each reporting period. Net contract assets were comprised as follows: December 31 ($ in millions) 2023 2022 2023 over 2022 Contract assets $ 1,537 $ 1,240 $ 297 Contract liabilities 1,063 766 297 Net contract assets $ 474 $ 474 $ — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Operating Profit (Loss) Reconciliation [Table Text Block] | The following table presents the Company's operating results by segment: Year Ended December 31 ($ in millions) 2023 2022 2021 Sales and Service Revenues Ingalls $ 2,752 $ 2,570 $ 2,528 Newport News 6,133 5,852 5,663 Mission Technologies 2,699 2,387 1,476 Intersegment eliminations (130) (133) (143) Total sales and service revenues $ 11,454 $ 10,676 $ 9,524 Operating Income Ingalls $ 362 $ 292 $ 281 Newport News 379 357 352 Mission Technologies 101 63 50 Total segment operating income 842 712 683 Non-segment factors affecting operating income Operating FAS/CAS Adjustment (72) (145) (157) Non-current state income taxes 11 (2) (13) Total operating income $ 781 $ 565 $ 513 |
Segment Assets Reconciliation [Table Text Block] | The following tables present the Company's assets, capital expenditures, and depreciation and amortization by segment: December 31 ($ in millions) 2023 2022 2021 Assets Ingalls $ 1,619 $ 1,633 $ 1,659 Newport News 4,612 4,344 4,179 Mission Technologies 3,161 3,347 3,553 Corporate 1,823 1,533 1,236 Total assets $ 11,215 $ 10,857 $ 10,627 |
Segment Other Significant Items Reconciliation [Table Text Block] | Year Ended December 31 ($ in millions) 2023 2022 2021 Capital Expenditures (1) Ingalls $ 65 $ 69 $ 72 Newport News 196 182 201 Mission Technologies 11 20 38 Corporate 6 1 — Total capital expenditures $ 278 $ 272 $ 311 (1) Net of grant proceeds for capital expenditures Year Ended December 31 ($ in millions) 2023 2022 2021 Depreciation and Amortization Ingalls $ 76 $ 79 $ 74 Newport News 150 148 146 Mission Technologies 120 130 72 Corporate 1 1 1 Total depreciation and amortization $ 347 $ 358 $ 293 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts receivable, net | Accounts receivable were comprised of the following: December 31 ($ in millions) 2023 2022 Due from U.S. Government $ 464 $ 631 Due from other customers 5 7 Total accounts receivable 469 638 Allowance for expected credit losses (8) (2) Total accounts receivable, net $ 461 $ 636 |
Inventoried Costs, Net (Tables)
Inventoried Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventoried costs, net | Inventoried costs were comprised of the following: December 31 ($ in millions) 2023 2022 Production costs of contracts in process $ 40 $ 54 Raw material inventory 146 129 Total inventoried costs, net $ 186 $ 183 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Carrying Amount of Goodwill | For the years ended December 31, 2023 and 2022, the carrying amounts of goodwill changed as follows: ($ in millions) Ingalls Newport News Mission Technologies Total Balance as of December 31, 2021 $ 175 $ 721 $ 1,732 $ 2,628 Adjustments — — (10) (10) Balance as of December 31, 2022 175 721 1,722 2,618 Adjustments — — — — Balance as of December 31, 2023 $ 175 $ 721 $ 1,722 $ 2,618 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Federal Income Tax Expense | Federal and foreign income tax expense for the years ended December 31, 2023, 2022, and 2021, consisted of the following: Year Ended December 31 ($ in millions) 2023 2022 2021 Income Taxes on Operations Federal and foreign income taxes currently payable (receivable) $ 273 $ 138 $ (12) Change in deferred federal and foreign income taxes (101) 2 90 Total federal and foreign income taxes $ 172 $ 140 $ 78 |
Reconciliation of Income Tax Expense to Federal Statutory Rate | The following table reconciles our actual income tax expense to income tax expense based on the statutory federal corporate income tax rate: Year Ended December 31 ($ in millions) 2023 2022 2021 Income tax expense (benefit) on operations at statutory rate $ 179 $ 151 $ 131 Tax benefit - sale of business — — (11) Unrecognized tax benefits 7 7 30 Research and development tax credit (22) (25) (78) Other, net 8 7 6 Total federal and foreign income taxes $ 172 $ 140 $ 78 |
Change in Unrecognized Tax Benefits | The changes in unrecognized tax benefits (exclusive of interest and penalties) for the years ended December 31, 2023, 2022, and 2021 are summarized in the following table: December 31 ($ in millions) 2023 2022 2021 Unrecognized tax benefits at beginning of the year $ 90 $ 81 $ 47 Additions based on tax positions related to the current year 11 8 7 Additions based on tax positions related to prior years — 3 27 Lapse of statute of limitations (3) (2) — Net change in unrecognized tax benefits 8 9 34 Unrecognized tax benefits at end of the year $ 98 $ 90 81 |
Summary of Income Tax Examinations | The following table summarizes the tax years that are either currently under examination or remain open under the applicable statute of limitations and subject to examination by the major tax jurisdictions in which the Company operates: Jurisdiction Years United States - Federal (1) 2016 - 2022 Connecticut 2020 - 2022 Mississippi 2018 - 2022 Virginia 2020 - 2022 (1) The 2016, 2018, 2019, 2021, and 2022 tax years are closed except for the research and development tax credits, and the 2017 tax year is closed except for the manufacturing deduction and research and development tax credit. |
Net Deferred Tax Assets | The tax effects of significant temporary differences and carry-forwards that resulted in year-end deferred tax balances, as presented in the consolidated statements of financial position, were as follows: December 31 ($ in millions) 2023 2022 Deferred Tax Assets Retirement benefits $ — $ 23 Workers' compensation 157 160 Operating lease liabilities 77 77 Reserves not currently deductible for tax purposes 61 61 Stock compensation 7 7 Net operating losses, tax credit and other carry-forwards 35 37 Capitalized research and development expenses 200 122 Other 10 13 Gross deferred tax assets 547 500 Less valuation allowance 29 28 Net deferred tax assets 518 472 Deferred Tax Liabilities Depreciation and amortization 447 444 Contract accounting differences 78 123 Purchased intangibles 234 250 Operating lease assets 72 73 Retirement benefits 54 — Gross deferred tax liabilities 885 890 Total net deferred tax liabilities $ (367) $ (418) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The Company's long-term debt consisted of the following: December 31 ($ in millions) 2023 2022 Senior notes due December 1, 2027, 3.483% $ 600 $ 600 Senior notes due May 1, 2025, 3.844% 500 500 Senior notes due May 1, 2030, 4.200% 500 500 Senior notes due August 16, 2023, 0.670% — 400 Senior notes due August 16, 2028, 2.043% 600 600 Term loan due August 19, 2024 145 225 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 Finance lease obligations 12 — Less unamortized debt issuance costs (17) (25) Total long-term debt $ 2,445 $ 2,905 Less current portion 231 399 Long-term debt, net of current portion $ 2,214 $ 2,506 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The following table presents costs and other information related to the Company's leases: Year Ended December 31 ($ in millions) 2023 2022 2021 Operating lease costs $ 67 $ 69 $ 53 Short-term operating lease costs $ 54 $ 44 $ 43 Variable operating lease costs $ 7 $ 6 $ 4 Operating cash flows from operating leases $ (66) $ (65) $ (52) Right-of-use assets obtained in exchange for new operating lease liabilities $ 80 $ 111 $ 97 Weighted-average remaining lease term (years) - operating leases 9 years 9 years 8 years Weighted-average discount rate - operating leases 5.0 % 4.5 % 3.6 % |
Lessee, Operating Lease, Liability, Maturity | The undiscounted future non-cancellable lease payments under the Company's operating leases as of December 31, 2023, were as follows: ($ in millions) December 31, 2023 2024 $ 61 2025 56 2026 44 2027 37 2028 27 Thereafter 128 Total lease payments 353 Less: imputed interest 74 Present value of operating lease liabilities $ 279 |
Reconciliation of Operating Lease Liability Recognized in Statement of Financial Position | Lease liabilities included in the Company's consolidated statements of financial position as of December 31, 2023 and 2022, were as follows: December 31 ($ in millions) 2023 2022 Short-term operating lease liabilities $ 51 $ 52 Long-term operating lease liabilities 228 246 Total operating lease liabilities $ 279 $ 298 |
Employee Pension and Other Po_2
Employee Pension and Other Postretirement Benefits Employee Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The costs of the Company's defined benefit pension plans and other postretirement benefit plans for the years ended December 31, 2023, 2022, and 2021, were as follows: Pension Benefits Other Benefits Year Ended December 31 Year Ended December 31 ($ in millions) 2023 2022 2021 2023 2022 2021 Components of net periodic benefit cost Service cost $ 112 $ 181 $ 199 $ 6 $ 9 $ 10 Interest cost 343 258 240 21 14 14 Expected return on plan assets (529) (594) (553) — — — Amortization of prior service cost (credit) 17 22 15 (2) (4) (4) Amortization of net actuarial loss (gain) 17 35 110 (15) (3) (3) Settlement gain — (4) — — — — Net periodic benefit (income) cost $ (40) $ (102) $ 11 $ 10 $ 16 $ 17 |
Schedule of Defined Benefit Plans Disclosures | The funded status of these plans as of December 31, 2023 and 2022, was as follows: Pension Benefits Other Benefits December 31 December 31 ($ in millions) 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 6,438 $ 8,569 $ 394 $ 505 Service cost 112 181 6 9 Interest cost 343 258 21 14 Plan participants' contributions 10 6 9 11 Plan amendments — 97 — — Actuarial loss (gain) 62 (2,327) (19) (103) Benefits paid (333) (314) (41) (42) Settlement (390) (32) — — Benefit obligation at end of year 6,242 6,438 370 394 Change in plan assets Fair value of plan assets at beginning of year 6,781 8,460 — — Actual return on plan assets 793 (1,349) — — Employer contributions 12 10 32 31 Plan participants' contributions 10 6 9 11 Benefits paid (333) (314) (41) (42) Settlement (390) (32) — — Fair value of plan assets at end of year 6,873 6,781 — — Funded status $ 631 $ 343 $ (370) $ (394) Amounts recognized in the consolidated statements of financial position: Pension plan assets $ 888 $ 600 $ — $ — Current liability (1) (45) (43) (129) (134) Non-current liability (2) (212) (214) (241) (260) Accumulated other comprehensive loss (income) (pre-tax) related to: Prior service costs (credits) 138 156 (13) (16) Net actuarial loss (gain) 562 780 (107) (102) (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) were as follows: Pension Benefits Other Benefits Year Ended December 31 Year Ended December 31 ($ in millions) 2023 2022 2021 2023 2022 2021 Prior service credit (cost) $ — $ (97) $ — $ — $ — $ 14 Amortization of prior service cost (credit) 17 22 15 (2) (4) (4) Net actuarial gain 202 384 704 19 103 2 Amortization of net actuarial loss (gain) 17 35 110 (15) (3) (3) Other — (4) (1) — (1) 1 Total changes in accumulated other comprehensive income (loss) $ 236 $ 340 $ 828 $ 2 $ 95 $ 10 |
Schedule of Assumptions Used and Health Care Cost Trend Rates | The weighted average assumptions used to determine the net periodic benefit costs for each year ended December 31 were as follows: Pension Benefits 2023 2022 2021 Discount rate 5.47 % 3.00 % 2.80 % Expected long-term rate on plan assets 8.00 % 7.25 % 7.25 % Rate of compensation increase 3.63 % 3.58 % 3.62 % Other Benefits 2023 2022 2021 Discount rate 5.50 % 2.94 % 2.75 % Initial health care cost trend rate assumed for next year 6.00 % 5.50 % 5.50 % Gradually declining to a rate of 4.50 % 4.50 % 4.50 % Year in which the rate reaches the ultimate rate 2028 2027 2026 The weighted average assumptions used to determine the benefit obligations as of December 31 of each year were as follows: Pension Benefits Other Benefits December 31 December 31 2023 2022 2023 2022 Discount rate 5.28 % 5.47 % 5.35 % 5.50 % Weighted average interest crediting rate 3.58 % 3.63 % Rate of compensation increase 3.63 % 3.63 % Initial health care cost trend rate assumed for next year 6.00 % 6.00 % Gradually declining to a rate of 4.50 % 4.50 % Year in which the rate reaches the ultimate rate 2029 2028 |
Schedule of Defined Benefit Plans Disclosures, Cash Contributions | The Company made the following contributions to its defined benefit pension plans and other postretirement benefit plans for the years ended December 31, 2023, 2022, and 2021: Year Ended December 31 ($ in millions) 2023 2022 2021 Pension plans Discretionary Qualified $ — $ — $ 60 Non-qualified 12 10 9 Other benefit plans 32 31 37 Total contributions $ 44 $ 41 $ 106 |
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, 2023. 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. ($ in millions) Pension Benefits Other Benefit Payments 2024 $ 321 $ 35 2025 340 36 2026 360 36 2027 378 36 2028 395 35 Years 2029 to 2033 $ 2,160 $ 145 |
Schedule of Allocation of Plan Assets | The Investment Committee 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, 2023, as follows: Range U.S. and international equities 35 - 60% Fixed income securities 20 - 45% Alternative investments 10 - 35% |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward | Certain investments that are measured at fair value using NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. December 31, 2023 ($ in millions) Total Level 1 Level 2 Level 3 Plan assets subject to leveling U.S. and international equities $ 1,723 $ 1,723 $ — $ — Government and agency debt securities 448 — 448 — Corporate and other debt securities 1,469 — 1,469 — Group annuity contract 3 — 3 — Net plan assets subject to leveling $ 3,643 $ 1,723 $ 1,920 $ — Plan assets not subject to leveling U.S. and international equities (a) 1,134 Corporate and other debt securities 234 Real estate investments 532 Private partnerships 828 Hedge funds 388 Cash and cash equivalents, net (b) 114 Total plan assets not subject to leveling 3,230 Net plan assets $ 6,873 (a) U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in commingled trust funds. (b) Cash and cash equivalents are 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. December 31, 2022 ($ in millions) Total Level 1 Level 2 Level 3 Plan assets subject to leveling U.S. and international equities $ 1,910 $ 1,910 $ — $ — Government and agency debt securities 334 — 334 — Corporate and other debt securities 1,106 — 1,106 — Group annuity contract 3 — 3 — Cash and cash equivalents, net 28 28 — — Net plan assets subject to leveling $ 3,381 $ 1,938 $ 1,443 $ — Plan assets not subject to leveling U.S. and international equities (a) 1,494 Corporate and other debt securities 222 Real estate investments 471 Private partnerships 670 Hedge funds 382 Cash and cash equivalents, net (b) 161 Total plan assets not subject to leveling 3,400 Net plan assets $ 6,781 (a) U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in commingled trust funds. (b) |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Status of Stock Awards | Stock award activity for the years ended December 31, 2023, 2022, and 2021, was as follows: Stock Awards (in thousands) Weighted-Average Grant Date Fair Value Weighted Average Remaining Contractual Term Outstanding as of December 31, 2020 381 $ 211.77 1.0 year Granted 213 181.66 Adjustment due to performance 19 259.03 Vested (100) 259.03 Forfeited (28) 202.81 Outstanding as of December 31, 2021 485 190.36 1.0 year Granted 166 204.65 Adjustment due to performance 52 209.04 Vested (170) 209.04 Forfeited (27) 199.40 Outstanding as of December 31, 2022 506 189.68 1.0 year Granted 177 215.16 Adjustment due to performance 32 224.35 Vested (155) 224.35 Forfeited (25) 178.68 Outstanding as of December 31, 2023 535 $ 189.98 1.0 year |
Description of Business (Narrat
Description of Business (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 segments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Deferred gain on receipt of grant | $ 14 | $ 12 | $ 20 |
Independent research and development | 35 | 40 | $ 34 |
Assets Held-in-trust [Abstract] | |||
Assets held in rabbi trusts | 220 | 209 | |
Deferred tax asset valuation allowance | $ 29 | $ 28 | |
Percent likliehood of unfavorable settlement of uncertain income tax benefit | 50% | ||
Workers' Compensation Discount, Percent | 3.93% | 3.88% | |
Workers' compensation benefit obligations on an undiscounted basis | $ 784 | $ 778 | |
Concentration Risk [Line Items] | |||
Loans Receivable, Net | 41 | 39 | |
Receivable with Imputed Interest, Discount | $ 9 | $ 11 | |
Amortization threshold for actuarial gains (losses) | 10% | ||
Prepaid Expenses and Other Current Assets | |||
Accounting Policies [Abstract] | |||
Capitalized Contract Cost, Net | $ 24 | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Maturity period of cash equivalents | 90 days | ||
Minimum | |||
Concentration Risk [Line Items] | |||
Operating Cycle | 1 year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Schedule of Depreciable Assets (Table) (Details) | Dec. 31, 2023 |
Land improvements | Minimum | |
Property, Plant and Equipment | |
Useful life | 2 years |
Land improvements | Maximum | |
Property, Plant and Equipment | |
Useful life | 40 years |
Buildings and improvements | Minimum | |
Property, Plant and Equipment | |
Useful life | 2 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment | |
Useful life | 60 years |
Capitalized software costs | Minimum | |
Property, Plant and Equipment | |
Useful life | 3 years |
Capitalized software costs | Maximum | |
Property, Plant and Equipment | |
Useful life | 9 years |
Machinery and other equipment | Minimum | |
Property, Plant and Equipment | |
Useful life | 2 years |
Machinery and other equipment | Maximum | |
Property, Plant and Equipment | |
Useful life | 40 years |
Acquisitions - Alion (Narrative
Acquisitions - Alion (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition and Divestiture [Line Items] | |||
Goodwill | $ 2,628 | $ 2,618 | $ 2,618 |
Alion Science and Technology | |||
Business Acquisition and Divestiture [Line Items] | |||
Payments to Acquire Businesses, Gross | 1,790 | ||
Cash Acquired from Acquisition | $ 148 |
Acquisitions and Divestitures,
Acquisitions and Divestitures, Pro Forma Information (Table) (Details) - Alion Science and Technology - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition, Pro Forma Information [Line Items] | |||
Sales and service revenues | $ 11,454 | $ 10,676 | $ 10,364 |
Net earnings | $ 681 | $ 579 | $ 539 |
Basic earnings per share | $ 17.07 | $ 14.44 | $ 13.37 |
Diluted earnings per share | $ 17.07 | $ 14.44 | $ 13.37 |
Divestitures (Narrative) (Detai
Divestitures (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition and Divestiture [Line Items] | |||
Investment in affiliates | $ (24) | $ (5) | $ (22) |
Titan Acquisition Holdings, L.P. | |||
Business Acquisition and Divestiture [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10% | 10% | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 70 | ||
Proceeds from Sale of Equity Method Investments | $ 63 | ||
San Diego Shipyard | |||
Business Acquisition and Divestiture [Line Items] | |||
Business Combination, Acquisition of Less than 100 Percent, Noncontrolling Interest, Fair Value | $ 83 | ||
Investment in affiliates | $ (22) |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 30, 2024 | Nov. 05, 2019 | |
Class of Stock [Line Items] | |||||||||
Amount authorized for stock repurchase program | $ 3,800 | $ 3,200 | |||||||
Repurchased shares of treasury stock | 337,007 | 244,561 | 544,440 | ||||||
Treasury stock activity | $ 75 | $ 52 | $ 101 | ||||||
Dividends declared per share | $ 1.30 | $ 1.24 | $ 1.18 | $ 1.14 | $ 5.02 | $ 4.78 | $ 4.60 | ||
Dividends declared | $ 200 | $ 192 | $ 186 | ||||||
Accumulated other comprehensive income (loss) | $ (422) | $ (599) | $ (923) | $ (1,547) | (422) | (599) | (923) | ||
Defined Benefit Plans | |||||||||
Class of Stock [Line Items] | |||||||||
Accumulated other comprehensive income (loss) | $ (422) | $ (599) | $ (923) | (1,546) | $ (422) | $ (599) | $ (923) | ||
AOCI, Other [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Accumulated other comprehensive income (loss) | $ (1) |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Loss) (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | $ (599) | $ (923) | $ (1,547) | |
Other comprehensive income (loss) before reclassifications | 221 | 390 | 720 | |
Amortization of prior service cost (credit) | [1] | 15 | 18 | 11 |
Amortization of net actuarial loss (gain) | [1] | 2 | 32 | 107 |
Settlement gain (loss) | [1] | (4) | ||
Tax benefit (expense) for items of other comprehensive income | (61) | (112) | (214) | |
Net current period other comprehensive income (loss) | 177 | 324 | 624 | |
Balance, ending | (422) | (599) | (923) | |
Defined Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | (599) | (923) | (1,546) | |
Other comprehensive income (loss) before reclassifications | 221 | 390 | 720 | |
Amortization of prior service cost (credit) | [1] | 15 | 18 | 11 |
Amortization of net actuarial loss (gain) | [1] | 2 | 32 | 107 |
Settlement gain (loss) | [1] | (4) | ||
Tax benefit (expense) for items of other comprehensive income | (61) | (112) | (215) | |
Net current period other comprehensive income (loss) | 177 | 324 | 623 | |
Balance, ending | (422) | (599) | (923) | |
AOCI, Other [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | (1) | |||
Tax benefit (expense) for items of other comprehensive income | 1 | |||
Net current period other comprehensive income (loss) | 1 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax benefit (expense) for items of other comprehensive income | $ (4) | $ (12) | $ (30) | |
[1]These accumulated comprehensive loss components are included in the computation of net periodic benefit cost. See Note 17: Employee Pension and Other Postretirement Benefits. The tax expense recorded in stockholders' equity for the amounts reclassified from accumulated other comprehensive loss for the years ended December 31, 2023, 2022, and 2021, was $4 million, $12 million, and $30 million, respectively. |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Share (Table) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net earnings (loss) | $ 681 | $ 579 | $ 544 |
Weighted-average common shares outstanding (in shares) | 39.9 | 40.1 | 40.3 |
Dilutive weighted average common shares outstanding (in shares) | 39.9 | 40.1 | 40.3 |
Earnings (loss) per share - basic (in dollars per share) | $ 17.07 | $ 14.44 | $ 13.50 |
Earnings (loss) per share - diluted (in dollars per share) | $ 17.07 | $ 14.44 | $ 13.50 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted performance stock rights | |||
Securities Excluded from Computation of Earnings Per Share | |||
Numbers of shares of securities excluded from computation of earnings per share | 0.4 | 0.4 | 0.4 |
Revenue (Table) (Details)
Revenue (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | $ 11,454 | $ 10,676 | $ 9,524 |
Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | (130) | (133) | (143) |
Fixed-price Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 328 | 299 | 279 |
Fixed-price incentive [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 5,867 | 5,378 | 5,247 |
Cost-type [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 5,045 | 4,730 | 3,743 |
Time-and-materials Contract [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 214 | 269 | 255 |
U.S. Federal Government [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 11,430 | 10,625 | 9,475 |
Commercial [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 23 | 50 | 48 |
State and Local Government agency [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 1 | 1 | 1 |
Product [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 7,664 | 7,283 | 7,000 |
Service [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 3,790 | 3,393 | 2,524 |
Ingalls [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,752 | 2,570 | 2,528 |
Ingalls [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 9 | 12 | 15 |
Ingalls [Member] | Amphibious assault ships [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 1,511 | 1,415 | 1,328 |
Ingalls [Member] | Surface combatants and coast guard cutters [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 1,225 | 1,138 | 1,179 |
Ingalls [Member] | Other programs [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 16 | 17 | 21 |
Ingalls [Member] | Fixed-price Contract [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2 | 8 | 33 |
Ingalls [Member] | Fixed-price incentive [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,497 | 2,369 | 2,329 |
Ingalls [Member] | Cost-type [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 244 | 181 | 151 |
Ingalls [Member] | U.S. Federal Government [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,743 | 2,558 | 2,513 |
Ingalls [Member] | Product [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,495 | 2,372 | 2,357 |
Ingalls [Member] | Service [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 248 | 186 | 156 |
Newport News Shipbuilding [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 6,133 | 5,852 | 5,663 |
Newport News Shipbuilding [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 3 | 5 | 11 |
Newport News Shipbuilding [Member] | Other programs [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 598 | 647 | 673 |
Newport News Shipbuilding [Member] | Aircraft carriers [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 3,374 | 3,203 | 3,073 |
Newport News Shipbuilding [Member] | Submarines [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,161 | 2,002 | 1,917 |
Newport News Shipbuilding [Member] | Fixed-price Contract [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 4 | 14 | 41 |
Newport News Shipbuilding [Member] | Fixed-price incentive [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 3,364 | 3,009 | 2,913 |
Newport News Shipbuilding [Member] | Cost-type [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,762 | 2,824 | 2,698 |
Newport News Shipbuilding [Member] | U.S. Federal Government [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 6,129 | 5,846 | 5,652 |
Newport News Shipbuilding [Member] | Commercial [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 1 | 1 | |
Newport News Shipbuilding [Member] | Product [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 5,053 | 4,821 | 4,543 |
Newport News Shipbuilding [Member] | Service [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 1,077 | 1,026 | 1,109 |
Mission Technologies [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,699 | 2,387 | 1,476 |
Mission Technologies [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 118 | 116 | 117 |
Mission Technologies [Member] | Other programs [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 467 | 437 | 428 |
Mission Technologies [Member] | C5ISR, CEW&S, LVC [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,232 | 1,950 | 1,034 |
Mission Technologies [Member] | Oil and gas services | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 14 | ||
Mission Technologies [Member] | Fixed-price Contract [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 322 | 277 | 205 |
Mission Technologies [Member] | Fixed-price incentive [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 6 | 5 | |
Mission Technologies [Member] | Cost-type [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,039 | 1,725 | 894 |
Mission Technologies [Member] | Time-and-materials Contract [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 214 | 269 | 255 |
Mission Technologies [Member] | U.S. Federal Government [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 2,558 | 2,221 | 1,310 |
Mission Technologies [Member] | Commercial [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 22 | 49 | 48 |
Mission Technologies [Member] | State and Local Government agency [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 1 | 1 | 1 |
Mission Technologies [Member] | Product [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | 116 | 90 | 100 |
Mission Technologies [Member] | Service [Member] | Operating Segments [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Sales and service revenues | $ 2,465 | $ 2,181 | $ 1,259 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Revenue, Remaining Performance Obligation, Amount | $ 48,100 | ||
Revenue, performance obligation, recognition percentage, year one | 22% | ||
Revenue, performance obligation, recognition percentage, year three | 30% | ||
Contract with Customer, Liability, Revenue Recognized | $ 690 | $ 562 | $ 382 |
Change in Accounting Estimate (
Change in Accounting Estimate (Table) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Change in Accounting Estimate [Line Items] | |||
Operating income (loss) | $ 781 | $ 565 | $ 513 |
Diluted earnings (loss) per share | $ 17.07 | $ 14.44 | $ 13.50 |
Contracts Accounted for under Percentage of Completion | |||
Change in Accounting Estimate [Line Items] | |||
Operating income (loss) | $ 118 | $ 113 | $ 115 |
Diluted earnings (loss) per share | $ 2.33 | $ 2.22 | $ 2.26 |
Contract Asset (Table) (Details
Contract Asset (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets | $ 1,537 | $ 1,240 |
Due From U.S. Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets | 1,471 | 1,165 |
Due From Other Customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contract assets | $ 66 | $ 75 |
Net Contract Asset (Table) (Det
Net Contract Asset (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Contract assets | $ 1,537 | $ 1,240 | |
Increase (Decrease) in Contract with Customer, Asset | 297 | (70) | $ 126 |
Contract liabilities | 1,063 | 766 | |
Increase (Decrease) in Contract with Customer, Liability | 297 | ||
Net contract assets | $ 474 | $ 474 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - segments | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 3 | ||
Minimum | Government Contracts Concentration Risk | Sales Revenue, Net | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 95% | 95% | 95% |
Segment Operating Profit (Loss)
Segment Operating Profit (Loss) Reconciliation (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | $ 11,454 | $ 10,676 | $ 9,524 |
Operating income (loss) | 781 | 565 | 513 |
Intersegment Eliminations [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | (130) | (133) | (143) |
Operating Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Operating income (loss) | 842 | 712 | 683 |
Corporate, Non-Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
FAS/CAS Adjustment | (72) | (145) | (157) |
Deferred state income taxes | 11 | (2) | (13) |
Ingalls [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | 9 | 12 | 15 |
Ingalls [Member] | Operating Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | 2,752 | 2,570 | 2,528 |
Operating income (loss) | 362 | 292 | 281 |
Newport News Shipbuilding [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | 3 | 5 | 11 |
Newport News Shipbuilding [Member] | Operating Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | 6,133 | 5,852 | 5,663 |
Operating income (loss) | 379 | 357 | 352 |
Mission Technologies [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | 118 | 116 | 117 |
Mission Technologies [Member] | Operating Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Sales and service revenues | 2,699 | 2,387 | 1,476 |
Operating income (loss) | $ 101 | $ 63 | $ 50 |
Segment Information Segment Ass
Segment Information Segment Assets Reconciliation (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 11,215 | $ 10,857 | $ 10,627 |
Ingalls [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 1,619 | 1,633 | 1,659 |
Newport News Shipbuilding [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 4,612 | 4,344 | 4,179 |
Mission Technologies [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 3,161 | 3,347 | 3,553 |
Corporate Segment [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 1,823 | $ 1,533 | $ 1,236 |
Segment Information Segment Oth
Segment Information Segment Other Significant Items Reconciliation (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital Expenditures | [1] | $ 278 | $ 272 | $ 311 |
Depreciation and amortization | 347 | 358 | 293 | |
Ingalls [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital Expenditures | [1] | 65 | 69 | 72 |
Depreciation and amortization | 76 | 79 | 74 | |
Newport News Shipbuilding [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital Expenditures | [1] | 196 | 182 | 201 |
Depreciation and amortization | 150 | 148 | 146 | |
Mission Technologies [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital Expenditures | [1] | 11 | 20 | 38 |
Depreciation and amortization | 120 | 130 | 72 | |
Corporate Segment [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Capital Expenditures | [1] | 6 | 1 | |
Depreciation and amortization | $ 1 | $ 1 | $ 1 | |
[1] Net of grant proceeds for capital expenditures |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 469 | $ 638 |
Allowance for expected credit losses | (8) | (2) |
Total accounts receivable, net | 461 | 636 |
Due From U.S. Government | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amounts billed | 464 | 631 |
Due From Other Customers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amounts billed | $ 5 | $ 7 |
Inventoried Costs, Net (Table)
Inventoried Costs, Net (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Production costs of contracts in process | $ 40 | $ 54 |
Raw material inventory | 146 | 129 |
Total inventoried costs, net | $ 186 | $ 183 |
Goodwill (Narrative) (Details)
Goodwill (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) reporting_unit | Dec. 31, 2022 USD ($) reporting_unit | Oct. 31, 2023 | |
Goodwill [Line Items] | |||
Number of Reporting Units | reporting_unit | 3 | 3 | |
Accumulated goodwill impairment losses | $ 2,755 | $ 2,755 | |
Ingalls [Member] | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | 1,568 | 1,568 | |
Newport News Shipbuilding [Member] | |||
Goodwill [Line Items] | |||
Accumulated goodwill impairment losses | $ 1,187 | 1,187 | |
Mission Technologies [Member] | |||
Goodwill [Line Items] | |||
Minimum excess of fair value over carrying value | 10% | ||
Mission Technologies [Member] | Alion Science and Technology | |||
Goodwill [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ (10) | ||
Minimum | |||
Goodwill [Line Items] | |||
Minimum excess of fair value over carrying value | 10% |
Change in Carrying Amount of Go
Change in Carrying Amount of Goodwill (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill beginning balance | $ 2,618 | $ 2,628 |
Adjustments | 0 | (10) |
Goodwill ending balance | 2,618 | 2,618 |
Ingalls [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill beginning balance | 175 | 175 |
Goodwill ending balance | 175 | 175 |
Newport News Shipbuilding [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill beginning balance | 721 | 721 |
Goodwill ending balance | 721 | 721 |
Mission Technologies [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill beginning balance | 1,722 | 1,732 |
Adjustments | (10) | |
Goodwill ending balance | $ 1,722 | $ 1,722 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate weighted-average amortization period | 29 years | ||
Aggregate amortization expense | $ 128 | $ 140 | $ 86 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2024 | 109 | ||
2025 | 99 | ||
2026 | 80 | ||
2027 | 60 | ||
2028 | $ 53 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 20.20% | 19.50% | 12.50% | |
Unrecognized Tax Benefits | $ 98 | $ 90 | $ 81 | $ 47 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 76 | 70 | ||
Unrecognized Tax Benefits, Income Tax Interest Accrued | 9 | 5 | 3 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | (17) | |||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 4 | $ 2 | $ 1 |
Federal Income Tax Expense (Tab
Federal Income Tax Expense (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||
Federal and foreign income taxes currently payable (receivable) | $ 273 | $ 138 | $ (12) |
Change in deferred federal and foreign income taxes | (101) | 2 | 90 |
Total federal and foreign income taxes | $ 172 | $ 140 | $ 78 |
Reconciliation of Income Tax ex
Reconciliation of Income Tax expense to Federal Statutory Rate (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Federal Income Tax Reconciliation [Abstract] | |||
Income tax expense (benefit) on operations at statutory rate | $ 179 | $ 151 | $ 131 |
Tax benefit - sale of business | (11) | ||
Unrecognized tax benefits | 7 | 7 | 30 |
Research and development tax credit | (22) | (25) | (78) |
Other, net | 8 | 7 | 6 |
Total federal and foreign income taxes | $ 172 | $ 140 | $ 78 |
Change in Unrecognized Tax Bene
Change in Unrecognized Tax Benefits (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of the year | $ 90 | $ 81 | $ 47 |
Additions based on tax positions related to the current year | 11 | 8 | 7 |
Additions based on tax positions related to prior years | 3 | 27 | |
Lapse of statute of limitations | (3) | (2) | |
Net change in unrecognized tax benefits | 8 | 9 | 34 |
Unrecognized tax benefits at end of the year | $ 98 | $ 90 | $ 81 |
Summary of Income Tax Examinati
Summary of Income Tax Examinations (Table) (Details) | 12 Months Ended | |
Dec. 31, 2023 | ||
UNITED STATES - Federal | Minimum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2016 | [1] |
UNITED STATES - Federal | Maximum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2022 | [1] |
CONNECTICUT | Minimum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2020 | |
CONNECTICUT | Maximum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2022 | |
MISSISSIPPI | Minimum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2018 | |
MISSISSIPPI | Maximum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2022 | |
VIRGINIA | Minimum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2020 | |
VIRGINIA | Maximum | ||
Income Tax Examination [Line Items] | ||
Income Tax Examination, Year under Examination | 2022 | |
[1]The 2016, 2018, 2019, 2021, and 2022 tax years are closed except for the research and development tax credits, and the 2017 tax year is closed except for the manufacturing deduction and research and development tax credit. |
Net Deferred Tax Assets (Table)
Net Deferred Tax Assets (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Retirement benefits | $ 23 | |
Workers' compensation | $ 157 | 160 |
Operating lease liabilities | 77 | 77 |
Reserves not currently deductible for tax purposes | 61 | 61 |
Stock compensation | 7 | 7 |
Net operating losses, tax credit and other carry-forwards | 35 | 37 |
Capitalized research and development expenses | 200 | 122 |
Other | 10 | 13 |
Gross deferred tax asset | 547 | 500 |
Less valuation allowance | 29 | 28 |
Net deferred tax assets | 518 | 472 |
Deferred Tax Liabilities | ||
Depreciation and amortization | 447 | 444 |
Contract accounting differences | 78 | 123 |
Purchased intangibles | 234 | 250 |
Operating lease assets | 72 | 73 |
Retirement benefits | 54 | |
Gross deferred tax liabilities | 885 | 890 |
Deferred Tax Liabilities, Net | $ (367) | $ (418) |
Income Taxes Tax Carry-Forwards
Income Taxes Tax Carry-Forwards (Narrative) (Details) - State and Local Jurisdiction [Member] $ in Millions | Dec. 31, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Tax Credit Carryforward, Amount | $ 20 |
Deferred Tax Assets, Tax Credit Carryforwards | 16 |
Tax Credit Carryforward, Valuation Allowance | $ 12 |
Schedule of Long-term Debt (Tab
Schedule of Long-term Debt (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Long-Term Debt | ||
Debt Instrument [Line Items] | ||
Finance Lease, Liability | $ 12 | |
Less unamortized debt issuance costs | (17) | $ (25) |
Total long-term debt | 2,445 | 2,905 |
Less current portion | 231 | 399 |
Long-term debt, net of current portion | 2,214 | 2,506 |
Senior Note | ||
Debt Instrument [Line Items] | ||
Less unamortized debt issuance costs | (11) | (15) |
Senior Note | Senior notes due December 1, 2027, 3.483% | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 600 | $ 600 |
Stated percentage | 3.483% | 3.483% |
Senior Note | Senior notes due May 1, 2025, 3.844% | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500 | $ 500 |
Stated percentage | 3.844% | 3.844% |
Senior Note | Senior notes due May 1, 2030, 4.200% [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500 | $ 500 |
Stated percentage | 4.20% | 4.20% |
Senior Note | Senior notes due August 16, 2023, 0.670% | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 400 | |
Stated percentage | 0.67% | 0.67% |
Senior Note | Senior notes due August 16, 2028, 2.043% | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 600 | $ 600 |
Stated percentage | 2.043% | 2.043% |
Term Loan | Term loan due August 19, 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 145 | $ 225 |
Bonds | Mississippi Econcomic Development Revenue Bonds Due May 1, 2024, 7.81 Percent | ||
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 Percent | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 21 | $ 21 |
Stated percentage | 4.55% | 4.55% |
Debt Facility (Narrative) (Deta
Debt Facility (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Credit Facility | ||
Unamortized debt issuance costs | $ 17 | $ 25 |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Term loan due August 19, 2024 | Term Loan | ||
Credit Facility | ||
Spread on variable rate (SOFR) | 1.475% | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | Term loan due August 19, 2024 | Term Loan | ||
Credit Facility | ||
Spread on variable rate (SOFR) | 1.225% | |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | Term loan due August 19, 2024 | Term Loan | ||
Credit Facility | ||
Spread on variable rate (SOFR) | 2.10% | |
Revolving Credit Facility | ||
Credit Facility | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500 | |
Debt instrument, term | 5 years | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,488 | |
Unamortized debt issuance costs | $ 6 | $ 10 |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Credit Facility | ||
Spread on variable rate (SOFR) | 1.475% | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||
Credit Facility | ||
Spread on variable rate (SOFR) | 1.225% | |
Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||
Credit Facility | ||
Spread on variable rate (SOFR) | 2.10% | |
Revolving Credit Facility | Base Rate [Member] | ||
Credit Facility | ||
Commitment fee rate on unused capacity | 0.20% | |
Revolving Credit Facility | Base Rate [Member] | Minimum | ||
Credit Facility | ||
Commitment fee rate on unused capacity | 0.125% | |
Revolving Credit Facility | Base Rate [Member] | Maximum | ||
Credit Facility | ||
Commitment fee rate on unused capacity | 0.30% | |
Letter of Credit | ||
Credit Facility | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300 | |
Standby Letters of Credit | HII Credit Facility | ||
Credit Facility | ||
Letters of credit issued but undrawn | $ 12 |
Debt Commercial Paper (Narrativ
Debt Commercial Paper (Narrative) (Details) $ in Billions | Dec. 31, 2023 USD ($) |
Maximum | |
Short-term Debt [Line Items] | |
Commercial Paper | $ 1 |
Debt Senior Note (Narrative) (D
Debt Senior Note (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 17 | $ 25 | |
Repayments of Long-term Debt | 480 | 400 | $ 25 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 11 | $ 15 | |
Senior Notes | Senior notes due August 16, 2023, 0.670% | |||
Debt Instrument [Line Items] | |||
Repayments of Long-term Debt | $ 400 | ||
Debt Instrument, Interest Rate, Stated Percentage | 0.67% | 0.67% |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term Debt, Fair Value | $ 2,309 | $ 2,703 |
Long-Term Debt, Current Maturities, Fair Value | 229 | 390 |
Long-Term Debt, Maturity, Year One | 229 | |
Long-Term Debt, Maturity, Year Two | 500 | |
Long-term debt, maturity, year four | 600 | |
Long-term debt, maturity, year five | 621 | |
Long-Term Debt, Current Maturities | 231 | $ 399 |
Term loan due August 19, 2024 | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Current Maturities | $ 145 |
Investigations, Claims, And L_2
Investigations, Claims, And Litigation (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) numberOfReinsurers frigates | |
Loss Contingencies | |
Loss Contingency, Number of Defendants | numberOfReinsurers | 32 |
Mission Technologies [Member] | |
Loss Contingencies | |
Proceeds from Legal Settlements | $ 49.5 |
Arbitration [Member] | |
Loss Contingencies | |
Loss Contingency, Number of Defendants | numberOfReinsurers | 6 |
Bolivarian Republic of Venezuela [Member] | |
Loss Contingencies | |
Number of foreign-built frigates | frigates | 2 |
Arbitration Claim | $ 151 |
Bolivarian Republic of Venezuela [Member] | Ingalls [Member] | |
Loss Contingencies | |
Proceeds from Sale of Arbitration Claim | 70.5 |
Litigation counter claim [Member] | Bolivarian Republic of Venezuela [Member] | |
Loss Contingencies | |
Arbitration Claim | $ 22 |
Components of Lease Expense (Ta
Components of Lease Expense (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating lease cost | $ 67 | $ 69 | $ 53 |
Short-term operating lease costs | 54 | 44 | 43 |
Variable operating lease costs | 7 | 6 | 4 |
Operating cash flows from operating leases | (66) | (65) | (52) |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 80 | $ 111 | $ 97 |
Weighted-average remaining lease term (years) - operating leases | 9 years | 9 years | 8 years |
Weighted-average discount rate - operating leases | 5% | 4.50% | 3.60% |
Lessee, Operating Lease, Liabil
Lessee, Operating Lease, Liability, Maturity (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 61 | |
2025 | 56 | |
2026 | 44 | |
2027 | 37 | |
2028 | 27 | |
Thereafter | 128 | |
Total lease payments | 353 | |
Less: imputed interest | 74 | |
Present value of lease liabilities | $ 279 | $ 298 |
Reconciliation of Operating Lea
Reconciliation of Operating Lease Liability Recognized in Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Short-term operating lease liabilities | $ 51 | $ 52 |
Long-term operating lease liabilities | 228 | 246 |
Total operating lease liabilities | $ 279 | $ 298 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Commitments and Contingencies | |
Entity Number of Employees | 44,000 |
Percentage of workforce subject to Collective Bargaining Arrangements | 45% |
Number of Collective Bargaining Agreements | 9 |
Number of site stabilization agreements | 1 |
Surety Bonds Outstanding | |
Commitments and Contingencies | |
Surety bonds outstanding | $ 360 |
HII Credit Facility | Standby Letters of Credit | |
Commitments and Contingencies | |
Letters of credit issued but undrawn | $ 12 |
Minimum | |
Commitments and Contingencies | |
Period covered by collective bargaining agreements | 3 years |
Maximum | |
Commitments and Contingencies | |
Period covered by collective bargaining agreements | 5 years |
Mission Technologies [Member] | |
Commitments and Contingencies | |
Entity Number of Employees | 15 |
Number of Collective Bargaining Agreements | 1 |
Newport News Shipbuilding [Member] | |
Commitments and Contingencies | |
Number of Collective Bargaining Agreements | 3 |
Ingalls [Member] | |
Commitments and Contingencies | |
Number of Collective Bargaining Agreements | 5 |
Employee Pension and Other Po_3
Employee Pension and Other Postretirement Benefits Narrative (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 03, 2023 retireesAndBeneficiaries | Sep. 06, 2022 retireesAndBeneficiaries | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Cost recognized for defined contribution plans | $ 158 | $ 153 | $ 140 | ||
Pension and other postretirement benefit plan liabilities | 202 | 192 | |||
Defined Contribution Plan, Liabilities | 44 | 38 | |||
Assets held in rabbi trusts | 220 | 209 | |||
Fair value of plan assets | $ 6,873 | $ 6,781 | |||
Initial health care cost trend rate assumed for next year | 6% | 6% | |||
Gradually declining to a rate of | 4.50% | 4.50% | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | $ (411) | $ (32) | |||
Partnership [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unfunded Commitments | 595 | ||||
Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 6,242 | 6,438 | 8,569 | ||
Accumulated benefit obligation | 6,006 | 6,193 | |||
Fair value of plan assets | 6,873 | 6,781 | 8,460 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 864 | 868 | |||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 607 | 611 | |||
Aggregate accumulated benefit obligation for plans with accumulated benefit obligations in excess of plan assets | 186 | 176 | |||
Number of Retirees and Beneficiaries | retireesAndBeneficiaries | 10,000 | 500 | |||
Settlement loss (gain) | (4) | ||||
Other Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | $ 370 | $ 394 | $ 505 | ||
Initial health care cost trend rate assumed for next year | 6% | 6% | |||
Gradually declining to a rate of | 4.50% | 4.50% | |||
Defined Benefit Plan Health Care Cost Trend Rate, Year ultimate rate is reached | 2029 | 2028 | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 35 | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Maximum annual percentage employer contribution per employee | 4% | ||||
Maximum | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 1 | ||||
Non-qualified [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Assets held in rabbi trusts | 174 | $ 169 | |||
Qualified [Member] | Pension Benefits [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Projected benefit obligation | 6,040 | 6,246 | |||
Accumulated benefit obligation | 5,820 | 6,017 | |||
Fair value of plan assets | $ 6,873 | $ 6,781 |
Employee Pension and Other Po_4
Employee Pension and Other Postretirement Benefits Schedule of Net Benefit Costs (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 112 | $ 181 | $ 199 |
Interest cost | 343 | 258 | 240 |
Expected return on plan assets | (529) | (594) | (553) |
Amortization of prior service cost (credit) | 17 | 22 | 15 |
Amortization of net actuarial loss (gain) | 17 | 35 | 110 |
Settlement loss (gain) | (4) | ||
Net periodic benefit cost | (40) | (102) | 11 |
Other Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 6 | 9 | 10 |
Interest cost | 21 | 14 | 14 |
Amortization of prior service cost (credit) | (2) | (4) | (4) |
Amortization of net actuarial loss (gain) | (15) | (3) | (3) |
Net periodic benefit cost | $ 10 | $ 16 | $ 17 |
Employee Pension and Other Po_5
Employee Pension and Other Postretirement Benefits Schedule of Defined Benefit Plans Discolsures (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | $ 6,781 | |||
Fair value of plan assets at end of year | 6,873 | $ 6,781 | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||
Pension plan assets | 888 | 600 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 6,438 | 8,569 | ||
Service cost | 112 | 181 | $ 199 | |
Interest cost | 343 | 258 | 240 | |
Plan participants' contributions | 10 | 6 | ||
Plan amendments | 97 | |||
Actuarial loss (gain) | 62 | (2,327) | ||
Benefits paid | (333) | (314) | ||
Settlement | (390) | (32) | ||
Benefit obligation at end of year | 6,242 | 6,438 | 8,569 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 6,781 | 8,460 | ||
Actual return on plan assets | 793 | (1,349) | ||
Employer contributions | 12 | 10 | ||
Plan participants' contributions | 10 | 6 | ||
Benefits paid | (333) | (314) | ||
Settlement | (390) | (32) | ||
Fair value of plan assets at end of year | 6,873 | 6,781 | 8,460 | |
Funded status | 631 | 343 | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||
Pension plan assets | 888 | 600 | ||
Current liability | [1] | (45) | (43) | |
Non-current liability | [2] | (212) | (214) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | ||||
Prior service costs (credits) | 138 | 156 | ||
Net actuarial loss (gain) | 562 | 780 | ||
Other Benefits [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 394 | 505 | ||
Service cost | 6 | 9 | 10 | |
Interest cost | 21 | 14 | 14 | |
Plan participants' contributions | 9 | 11 | ||
Actuarial loss (gain) | (19) | (103) | ||
Benefits paid | (41) | (42) | ||
Benefit obligation at end of year | 370 | 394 | $ 505 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Employer contributions | 32 | 31 | ||
Plan participants' contributions | 9 | 11 | ||
Benefits paid | (41) | (42) | ||
Funded status | (370) | (394) | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||||
Current liability | [1] | (129) | (134) | |
Non-current liability | [2] | (241) | (260) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), after Tax [Abstract] | ||||
Prior service costs (credits) | (13) | (16) | ||
Net actuarial loss (gain) | $ (107) | $ (102) | ||
[1] Included in other current liabilities and current portion of postretirement plan liabilities, respectively. |
Employee Pension and Other Po_6
Employee Pension and Other Postretirement Benefits Schedule of Amounts in AOCI to be Recongnized (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Abstract] | ||||
Amortization of prior service cost (credit) | [1] | $ (15) | $ (18) | $ (11) |
Amortization of net actuarial loss (gain) | [1] | 2 | 32 | 107 |
Pension Benefits [Member] | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Abstract] | ||||
Prior service credit (cost) | (97) | |||
Amortization of prior service cost (credit) | 17 | 22 | 15 | |
Net actuarial gain (loss) | 202 | 384 | 704 | |
Amortization of net actuarial loss (gain) | 17 | 35 | 110 | |
Other | (4) | (1) | ||
Total changes in accumulated other comprehensive income (loss) | 236 | 340 | 828 | |
Other Benefits [Member] | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Abstract] | ||||
Prior service credit (cost) | 14 | |||
Amortization of prior service cost (credit) | (2) | (4) | (4) | |
Net actuarial gain (loss) | 19 | 103 | 2 | |
Amortization of net actuarial loss (gain) | (15) | (3) | (3) | |
Other | (1) | 1 | ||
Total changes in accumulated other comprehensive income (loss) | $ 2 | $ 95 | $ 10 | |
[1]These accumulated comprehensive loss components are included in the computation of net periodic benefit cost. See Note 17: Employee Pension and Other Postretirement Benefits. The tax expense recorded in stockholders' equity for the amounts reclassified from accumulated other comprehensive loss for the years ended December 31, 2023, 2022, and 2021, was $4 million, $12 million, and $30 million, respectively. |
Employee Pension and Other Po_7
Employee Pension and Other Postretirement Benefits Schedule of Assumpstions Used and Health Care Cost Trend Rates (Table) (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted Average Assumptions - Benefit Obligation [Abstract] | |||
Initial health care cost trend rate assumed for next year | 6% | 6% | |
Gradually declining to a rate of | 4.50% | 4.50% | |
Pension Benefits [Member] | |||
Weighted Average Assumptions - Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 5.47% | 3% | 2.80% |
Expected long-term rate on plan assets | 8% | 7.25% | 7.25% |
Rate of compensation increase | 3.63% | 3.58% | 3.62% |
Weighted Average Assumptions - Benefit Obligation [Abstract] | |||
Discount rate | 5.28% | 5.47% | |
Weighted average interest crediting rate | 3.58% | 3.63% | |
Rate of compensation increase | 3.63% | 3.63% | |
Other Benefits [Member] | |||
Weighted Average Assumptions - Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 5.50% | 2.94% | 2.75% |
Initial health care cost trend rate assumed for next year | 6% | 5.50% | 5.50% |
Gradually declining to a rate of | 4.50% | 4.50% | 4.50% |
Defined Benefit Plan, Assumptions Used in Calculating Net Periodic Benefit Cost, Health Care Cost Trend Rate, Year ultimate rate is reached | 2028 | 2027 | 2026 |
Weighted Average Assumptions - Benefit Obligation [Abstract] | |||
Discount rate | 5.35% | 5.50% | |
Initial health care cost trend rate assumed for next year | 6% | 6% | |
Gradually declining to a rate of | 4.50% | 4.50% | |
Defined Benefit Plan Health Care Cost Trend Rate, Year ultimate rate is reached | 2029 | 2028 |
Employee Pension and Other Po_8
Employee Pension and Other Postretirement Benefits Schedule of Defined Benefit Plans Disclosures, Cash Contributions (Table) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other benefit plans | $ 32 | $ 31 | $ 37 |
Total contributions | 44 | 41 | 106 |
Discretionary Contribution [Member] | Qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | 60 | ||
Discretionary Contribution [Member] | Non-qualified [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension contributions | $ 12 | $ 10 | $ 9 |
Employee Pension and Other Po_9
Employee Pension and Other Postretirement Benefits Schedule of Expected Benefit Payments and Receipts (Table) (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Benefits [Member] | |
Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2024 | $ 321 |
2025 | 340 |
2026 | 360 |
2027 | 378 |
2028 | 395 |
Years 2029 to 2033 | 2,160 |
Other Benefits [Member] | |
Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2024 | 35 |
2025 | 36 |
2026 | 36 |
2027 | 36 |
2028 | 35 |
Years 2029 to 2033 | $ 145 |
Employee Pension and Other P_10
Employee Pension and Other Postretirement Benefits Schedule of Allocation Plan Asset (Table) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 6,873 | $ 6,781 | |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,643 | 3,381 | |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | U.S. and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,723 | 1,910 | |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | Government and agency debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 448 | 334 | |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | Corporate and other debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,469 | 1,106 | |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | Group annuity contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Fair Value, Inputs, Level 1, Level 2, and Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | ||
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,723 | 1,938 | |
Level 1 | U.S. and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,723 | 1,910 | |
Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 28 | ||
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,920 | 1,443 | |
Level 2 | Government and agency debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 448 | 334 | |
Level 2 | Corporate and other debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,469 | 1,106 | |
Level 2 | Group annuity contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 3 | |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,230 | 3,400 | |
Fair Value Measured at Net Asset Value Per Share | U.S. and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [1] | 1,134 | 1,494 |
Fair Value Measured at Net Asset Value Per Share | Corporate and other debt securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 234 | 222 | |
Fair Value Measured at Net Asset Value Per Share | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | [2] | 114 | 161 |
Fair Value Measured at Net Asset Value Per Share | Real Estate Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 532 | 471 | |
Fair Value Measured at Net Asset Value Per Share | Partnership [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 828 | 670 | |
Fair Value Measured at Net Asset Value Per Share | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 388 | $ 382 | |
Minimum | United States and International Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35% | ||
Minimum | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 20% | ||
Minimum | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 10% | ||
Maximum | United States and International Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 60% | ||
Maximum | Fixed Income Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 45% | ||
Maximum | Alternative Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 35% | ||
[1] U.S. and international equity securities include investments in small, medium, and large capitalization stocks of public companies held in commingled trust funds. |
Stock Compensation Plans (Narra
Stock Compensation Plans (Narrative) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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 Award, Equity Instruments Other than Options, Grants in Period | 200,000 | 200,000 | 200,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 215.24 | $ 215.24 | $ 204.41 | $ 180.06 | |
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, EBITDAP Weight | 40% | 40% | 40% | 40% | |
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, Return on Invested Capital Weight | 40% | 40% | 40% | 40% | |
Share-Based Compensation, Arrangement By Share-Based Payment, Stock Awards, Performance Goals, Relative EBITDAP Growth Weight | 20% | 20% | 20% | ||
Restricted performance stock rights | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted performance stock rights ultimate vesting percentage | 0% | 0% | |||
Restricted performance stock rights | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted performance stock rights ultimate vesting percentage | 200% | 200% | |||
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 | 9,500 | 2,400 | 31,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 213.37 | $ 213.37 | $ 208.81 | $ 187.59 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 13,600 | 13,600 | |||
Restricted stock rights | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | 1 year | 1 year | ||
Restricted stock rights | Maximum | |||||
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 | 3 years | 3 years | ||
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 | $ 189.98 | $ 189.98 | $ 189.68 | $ 190.36 | $ 211.77 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 155,000 | 170,000 | 100,000 | ||
Stock Awards, Granted | 177,000 | 166,000 | 213,000 | ||
Stock Rights [Member] | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Awards, Granted | 10,000 | ||||
2022 Long Term Incentive Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,300,000 | 1,300,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,200,000 | 1,200,000 |
Stock Compensation Plans Schedu
Stock Compensation Plans Schedule of Status of Stock Awards (Table) (Details) - Stock Awards - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Stock awards, Outstanding, Beginning balance | 506 | 485 | 381 | |
Stock Awards, Granted | 177 | 166 | 213 | |
Stock awards, Adjustment due to performance | 32 | 52 | 19 | |
Stock awards, Vested | (155) | (170) | (100) | |
Stock awards, Forfeited | (25) | (27) | (28) | |
Stock awards, Outstanding, Ending balance | 535 | 506 | 485 | 381 |
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 | $ 189.68 | $ 190.36 | $ 211.77 | |
Stock awards, Granted, Weighted Average Grant Date Fair Value | 215.16 | 204.65 | 181.66 | |
Stock Awards, Adjustments due to performance, Weighted Average Grant Date Fair Value | 224.35 | 209.04 | 259.03 | |
Stock awards, Vested, Weighted Average Grant Date Fair Value | 224.35 | 209.04 | 259.03 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 178.68 | 199.40 | 202.81 | |
Stock awards, Outstanding, Weighted Average Grant Date Fair Value, Ending balance | $ 189.98 | $ 189.68 | $ 190.36 | $ 211.77 |
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 | 1 year | 1 year | 1 year | 1 year |
Stock Compensation Plans Compen
Stock Compensation Plans Compensation and Unrecognized Compensation Expense (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Compensation expense | |||
Total stock-based compensation expense | $ 34 | $ 36 | $ 33 |
Tax benefits recognized for stock-based compensation | 10 | 9 | 8 |
Stock Awards | |||
Compensation expense | |||
Realized tax benefits from issuance of stock in settlement of RPSRs and RSRs | 7 | $ 8 | $ 4 |
Restricted stock rights | |||
Unrecognized compensation expense | |||
Unrecognized compensation expense associated with stock awards | $ 2 | ||
Weighted average period of recognition of unrecognized compensation expense | 1 year 1 month 6 days | ||
Restricted performance stock rights | |||
Unrecognized compensation expense | |||
Unrecognized compensation expense associated with stock awards | $ 33 | ||
Weighted average period of recognition of unrecognized compensation expense | 1 year |
Subsidiary Guarantors (Narrativ
Subsidiary Guarantors (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Subsidiary Guarantors [Abstract] | |
Parent ownership percentage of subsidiary guarantors | 100% |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Valuation allowances beginning balance | $ 28 | $ 22 | $ 22 |
(Benefits)/Charges to Income | 1 | 2 | 0 |
Other | 0 | 4 | 0 |
Valuation allowances ending balance | $ 29 | $ 28 | $ 22 |