☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
90-0607005
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock
|
HII
|
New York Stock Exchange
|
Large Accelerated Filer
|
|
☒
|
|
|
Accelerated Filer
|
|
☐
|
Non-Accelerated Filer
|
|
☐
|
|
|
Smaller Reporting Company
|
|
☐
|
|
|
|
|
|
Emerging Growth Company
|
|
☐
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PART I – FINANCIAL INFORMATION
|
|
Page
|
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Item 1.
|
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Item 2.
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Item 3.
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Item 4.
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PART II – OTHER INFORMATION
|
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Item 1.
|
|
||
Item 1A.
|
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Item 2.
|
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
(in millions, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and service revenues
|
|
|
|
|
|
|
|
|
||||||||
Product sales
|
|
$
|
1,545
|
|
|
$
|
1,547
|
|
|
$
|
4,555
|
|
|
$
|
4,416
|
|
Service revenues
|
|
674
|
|
|
536
|
|
|
1,932
|
|
|
1,561
|
|
||||
Sales and service revenues
|
|
2,219
|
|
|
2,083
|
|
|
6,487
|
|
|
5,977
|
|
||||
Cost of sales and service revenues
|
|
|
|
|
|
|
|
|
||||||||
Cost of product sales
|
|
1,246
|
|
|
1,159
|
|
|
3,754
|
|
|
3,369
|
|
||||
Cost of service revenues
|
|
556
|
|
|
434
|
|
|
1,634
|
|
|
1,287
|
|
||||
Income from operating investments, net
|
|
6
|
|
|
8
|
|
|
15
|
|
|
12
|
|
||||
Other income and gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||
General and administrative expenses
|
|
209
|
|
|
208
|
|
|
564
|
|
|
609
|
|
||||
Operating income
|
|
214
|
|
|
290
|
|
|
550
|
|
|
738
|
|
||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense
|
|
(18
|
)
|
|
(14
|
)
|
|
(52
|
)
|
|
(44
|
)
|
||||
Non-operating retirement benefit
|
|
3
|
|
|
19
|
|
|
8
|
|
|
56
|
|
||||
Other, net
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
2
|
|
||||
Earnings before income taxes
|
|
198
|
|
|
295
|
|
|
511
|
|
|
752
|
|
||||
Federal and foreign income taxes
|
|
44
|
|
|
66
|
|
|
111
|
|
|
128
|
|
||||
Net earnings
|
|
$
|
154
|
|
|
$
|
229
|
|
|
$
|
400
|
|
|
$
|
624
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
|
$
|
3.74
|
|
|
$
|
5.29
|
|
|
$
|
9.66
|
|
|
$
|
14.15
|
|
Weighted-average common shares outstanding
|
|
41.2
|
|
|
43.3
|
|
|
41.4
|
|
|
44.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share
|
|
$
|
3.74
|
|
|
$
|
5.29
|
|
|
$
|
9.66
|
|
|
$
|
14.15
|
|
Weighted-average diluted shares outstanding
|
|
41.2
|
|
|
43.3
|
|
|
41.4
|
|
|
44.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per share
|
|
$
|
0.86
|
|
|
$
|
0.72
|
|
|
$
|
2.58
|
|
|
$
|
2.16
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings from above
|
|
$
|
154
|
|
|
$
|
229
|
|
|
$
|
400
|
|
|
$
|
624
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
||||||||
Change in unamortized benefit plan costs
|
|
25
|
|
|
20
|
|
|
74
|
|
|
61
|
|
||||
Other
|
|
1
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
||||
Tax expense for items of other comprehensive income
|
|
(7
|
)
|
|
(5
|
)
|
|
(19
|
)
|
|
(16
|
)
|
||||
Other comprehensive income, net of tax
|
|
19
|
|
|
15
|
|
|
56
|
|
|
43
|
|
||||
Comprehensive income
|
|
$
|
173
|
|
|
$
|
244
|
|
|
$
|
456
|
|
|
$
|
667
|
|
($ in millions)
|
|
September 30
2019 |
|
December 31
2018 |
||||
Assets
|
|
|
|
|
||||
Current Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
32
|
|
|
$
|
240
|
|
Accounts receivable, net of allowance for doubtful accounts of $4 million as of 2019 and $9 million as of 2018
|
|
489
|
|
|
252
|
|
||
Contract assets
|
|
1,218
|
|
|
1,003
|
|
||
Inventoried costs, net
|
|
139
|
|
|
128
|
|
||
Prepaid expenses and other current assets
|
|
147
|
|
|
122
|
|
||
Total current assets
|
|
2,025
|
|
|
1,745
|
|
||
Property, plant, and equipment, net of accumulated depreciation of $1,935 million as of 2019 and $1,829 million as of 2018
|
|
2,700
|
|
|
2,517
|
|
||
Operating lease assets
|
|
208
|
|
|
—
|
|
||
Goodwill
|
|
1,402
|
|
|
1,263
|
|
||
Other intangible assets, net of accumulated amortization of $599 million as of 2019 and $564 million as of 2018
|
|
506
|
|
|
492
|
|
||
Deferred tax assets
|
|
102
|
|
|
163
|
|
||
Miscellaneous other assets
|
|
241
|
|
|
203
|
|
||
Total assets
|
|
$
|
7,184
|
|
|
$
|
6,383
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
||||
Current Liabilities
|
|
|
|
|
||||
Trade accounts payable
|
|
$
|
616
|
|
|
$
|
562
|
|
Accrued employees’ compensation
|
|
299
|
|
|
248
|
|
||
Current portion of postretirement plan liabilities
|
|
131
|
|
|
131
|
|
||
Current portion of workers’ compensation liabilities
|
|
228
|
|
|
225
|
|
||
Contract liabilities
|
|
344
|
|
|
331
|
|
||
Other current liabilities
|
|
332
|
|
|
332
|
|
||
Total current liabilities
|
|
1,950
|
|
|
1,829
|
|
||
Long-term debt
|
|
1,549
|
|
|
1,283
|
|
||
Pension plan liabilities
|
|
749
|
|
|
764
|
|
||
Other postretirement plan liabilities
|
|
345
|
|
|
348
|
|
||
Workers’ compensation liabilities
|
|
455
|
|
|
454
|
|
||
Long-term operating lease liabilities
|
|
172
|
|
|
—
|
|
||
Other long-term liabilities
|
|
259
|
|
|
189
|
|
||
Total liabilities
|
|
5,479
|
|
|
4,867
|
|
||
Commitments and Contingencies (Note 16)
|
|
|
|
|
||||
Stockholders’ Equity
|
|
|
|
|
||||
Common stock, $0.01 par value; 150 million shares authorized; 53.2 million shares issued and 41.0 million shares outstanding as of September 30, 2019, and 53.1 million shares issued and 41.9 million shares outstanding as of December 31, 2018
|
|
1
|
|
|
1
|
|
||
Additional paid-in capital
|
|
1,950
|
|
|
1,954
|
|
||
Retained earnings
|
|
2,902
|
|
|
2,609
|
|
||
Treasury stock
|
|
(1,916
|
)
|
|
(1,760
|
)
|
||
Accumulated other comprehensive loss
|
|
(1,232
|
)
|
|
(1,288
|
)
|
||
Total stockholders’ equity
|
|
1,705
|
|
|
1,516
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
7,184
|
|
|
$
|
6,383
|
|
|
|
Nine Months Ended
September 30 |
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Operating Activities
|
|
|
|
|
||||
Net earnings
|
|
$
|
400
|
|
|
$
|
624
|
|
Adjustments to reconcile to net cash provided by (used in) operating activities
|
|
|
|
|
||||
Depreciation
|
|
126
|
|
|
129
|
|
||
Amortization of purchased intangibles
|
|
35
|
|
|
28
|
|
||
Amortization of debt issuance costs
|
|
2
|
|
|
3
|
|
||
Provision for doubtful accounts
|
|
(5
|
)
|
|
(4
|
)
|
||
Stock-based compensation
|
|
19
|
|
|
27
|
|
||
Deferred income taxes
|
|
42
|
|
|
(1
|
)
|
||
Change in
|
|
|
|
|
||||
Accounts receivable
|
|
(223
|
)
|
|
(33
|
)
|
||
Contract assets
|
|
(197
|
)
|
|
(280
|
)
|
||
Inventoried costs
|
|
(14
|
)
|
|
3
|
|
||
Prepaid expenses and other assets
|
|
(62
|
)
|
|
5
|
|
||
Accounts payable and accruals
|
|
147
|
|
|
230
|
|
||
Retiree benefits
|
|
56
|
|
|
(468
|
)
|
||
Other non-cash transactions, net
|
|
4
|
|
|
3
|
|
||
Net cash provided by operating activities
|
|
330
|
|
|
266
|
|
||
Investing Activities
|
|
|
|
|
||||
Capital expenditures
|
|
|
|
|
||||
Capital expenditure additions
|
|
(349
|
)
|
|
(293
|
)
|
||
Grant proceeds for capital expenditures
|
|
71
|
|
|
33
|
|
||
Acquisitions of businesses, net of cash received
|
|
(195
|
)
|
|
—
|
|
||
Investment in affiliates
|
|
—
|
|
|
(10
|
)
|
||
Proceeds from disposition of assets
|
|
—
|
|
|
3
|
|
||
Other investing activities, net
|
|
3
|
|
|
—
|
|
||
Net cash used in investing activities
|
|
(470
|
)
|
|
(267
|
)
|
||
Financing Activities
|
|
|
|
|
||||
Proceeds from revolving credit facility borrowings
|
|
5,048
|
|
|
—
|
|
||
Repayment of revolving credit facility borrowings
|
|
(4,784
|
)
|
|
—
|
|
||
Dividends paid
|
|
(107
|
)
|
|
(95
|
)
|
||
Repurchases of common stock
|
|
(202
|
)
|
|
(512
|
)
|
||
Employee taxes on certain share-based payment arrangements
|
|
(23
|
)
|
|
(25
|
)
|
||
Net cash used in financing activities
|
|
(68
|
)
|
|
(632
|
)
|
||
Change in cash and cash equivalents
|
|
(208
|
)
|
|
(633
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
240
|
|
|
701
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
32
|
|
|
$
|
68
|
|
Supplemental Cash Flow Disclosure
|
|
|
|
|
||||
Cash paid for income taxes
|
|
$
|
124
|
|
|
$
|
77
|
|
Cash paid for interest
|
|
$
|
40
|
|
|
$
|
32
|
|
Non-Cash Investing and Financing Activities
|
|
|
|
|
||||
Capital expenditures accrued in accounts payable
|
|
$
|
12
|
|
|
$
|
7
|
|
Accrued repurchases of common stock
|
|
$
|
2
|
|
|
$
|
2
|
|
Three Months Ended September 30, 2019 and 2018
($ in millions) |
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings (Deficit)
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Stockholders' Equity
|
||||||||||||
Balance as of June 30, 2018
|
|
$
|
1
|
|
|
$
|
1,932
|
|
|
$
|
2,236
|
|
|
$
|
(1,385
|
)
|
|
$
|
(1,085
|
)
|
|
$
|
1,699
|
|
Net earnings
|
|
—
|
|
|
—
|
|
|
229
|
|
|
—
|
|
|
—
|
|
|
229
|
|
||||||
Dividends declared ($0.72 per share)
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
||||||
Stock compensation
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||
Treasury stock activity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
(99
|
)
|
||||||
Balance as of September 30, 2018
|
|
$
|
1
|
|
|
$
|
1,944
|
|
|
$
|
2,434
|
|
|
$
|
(1,484
|
)
|
|
$
|
(1,070
|
)
|
|
$
|
1,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance as of June 30, 2019
|
|
$
|
1
|
|
|
$
|
1,943
|
|
|
$
|
2,783
|
|
|
$
|
(1,848
|
)
|
|
$
|
(1,251
|
)
|
|
$
|
1,628
|
|
Net earnings
|
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
154
|
|
||||||
Dividends declared ($0.86 per share)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
(35
|
)
|
||||||
Stock compensation
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
19
|
|
||||||
Treasury stock activity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(68
|
)
|
|
—
|
|
|
(68
|
)
|
||||||
Balance as of September 30, 2019
|
|
$
|
1
|
|
|
$
|
1,950
|
|
|
$
|
2,902
|
|
|
$
|
(1,916
|
)
|
|
$
|
(1,232
|
)
|
|
$
|
1,705
|
|
Nine Months Ended September 30, 2019 and 2018
($ in millions) |
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings (Deficit)
|
|
Treasury Stock
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total Stockholders' Equity
|
||||||||||||
Balance as of December 31, 2017
|
|
$
|
1
|
|
|
$
|
1,942
|
|
|
$
|
1,687
|
|
|
$
|
(972
|
)
|
|
$
|
(900
|
)
|
|
$
|
1,758
|
|
Net earnings
|
|
—
|
|
|
—
|
|
|
624
|
|
|
—
|
|
|
—
|
|
|
624
|
|
||||||
Dividends declared ($2.16 per share)
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
||||||
Stock compensation
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
|
43
|
|
||||||
Treasury stock activity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(512
|
)
|
|
—
|
|
|
(512
|
)
|
||||||
Effect of Accounting Standards Update 2014-09
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Effect of Accounting Standards Update 2016-01
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||||
Effect of Accounting Standards Update 2018-02
|
|
—
|
|
|
—
|
|
|
202
|
|
|
—
|
|
|
(202
|
)
|
|
—
|
|
||||||
Balance as of September 30, 2018
|
|
$
|
1
|
|
|
$
|
1,944
|
|
|
$
|
2,434
|
|
|
$
|
(1,484
|
)
|
|
$
|
(1,070
|
)
|
|
$
|
1,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance as of December 31, 2018
|
|
$
|
1
|
|
|
$
|
1,954
|
|
|
$
|
2,609
|
|
|
$
|
(1,760
|
)
|
|
$
|
(1,288
|
)
|
|
$
|
1,516
|
|
Net earnings
|
|
—
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|
—
|
|
|
400
|
|
||||||
Dividends declared ($2.58 per share)
|
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
—
|
|
|
—
|
|
|
(107
|
)
|
||||||
Stock compensation
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
56
|
|
||||||
Treasury stock activity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(156
|
)
|
|
—
|
|
|
(156
|
)
|
||||||
Balance as of September 30, 2019
|
|
$
|
1
|
|
|
$
|
1,950
|
|
|
$
|
2,902
|
|
|
$
|
(1,916
|
)
|
|
$
|
(1,232
|
)
|
|
$
|
1,705
|
|
($ in millions)
|
|
Benefit Plans
|
|
Other
|
|
Total
|
||||||
Balance as of June 30, 2018
|
|
$
|
(1,080
|
)
|
|
$
|
(5
|
)
|
|
$
|
(1,085
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
|
|
|
|
||||||
Amortization of prior service cost1
|
|
1
|
|
|
—
|
|
|
1
|
|
|||
Amortization of net actuarial loss1
|
|
19
|
|
|
—
|
|
|
19
|
|
|||
Tax expense for items of other comprehensive income
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||
Net current period other comprehensive income
|
|
15
|
|
|
—
|
|
|
15
|
|
|||
Balance as of September 30, 2018
|
|
$
|
(1,065
|
)
|
|
$
|
(5
|
)
|
|
$
|
(1,070
|
)
|
|
|
|
|
|
|
|
||||||
Balance as of June 30, 2019
|
|
(1,246
|
)
|
|
(5
|
)
|
|
(1,251
|
)
|
|||
Other comprehensive income (loss) before reclassifications
|
|
—
|
|
|
1
|
|
|
1
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
|
|
|
|
||||||
Amortization of prior service credit1
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||
Amortization of net actuarial loss1
|
|
26
|
|
|
—
|
|
|
26
|
|
|||
Tax expense for items of other comprehensive income
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|||
Net current period other comprehensive income
|
|
18
|
|
|
1
|
|
|
19
|
|
|||
Balance as of September 30, 2019
|
|
$
|
(1,228
|
)
|
|
$
|
(4
|
)
|
|
$
|
(1,232
|
)
|
($ in millions)
|
|
Benefit Plans
|
|
Other
|
|
Total
|
||||||
Balance as of December 31, 2017
|
|
$
|
(906
|
)
|
|
$
|
6
|
|
|
$
|
(900
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
|
|
(2
|
)
|
|
(2
|
)
|
||||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
|
|
|
|
||||||
Amortization of prior service cost1
|
|
2
|
|
|
—
|
|
|
2
|
|
|||
Amortization of net actuarial loss1
|
|
59
|
|
|
—
|
|
|
59
|
|
|||
Tax expense for items of other comprehensive income
|
|
(16
|
)
|
|
—
|
|
|
(16
|
)
|
|||
Net current period other comprehensive income
|
|
45
|
|
|
(2
|
)
|
|
43
|
|
|||
Effect of Accounting Standards Update 2016-012
|
|
—
|
|
|
(11
|
)
|
|
(11
|
)
|
|||
Effect of Accounting Standards Update 2018-023
|
|
(204
|
)
|
|
2
|
|
|
(202
|
)
|
|||
Balance as of September 30, 2018
|
|
(1,065
|
)
|
|
(5
|
)
|
|
(1,070
|
)
|
|||
|
|
|
|
|
|
|
||||||
Balance as of December 31, 2018
|
|
(1,283
|
)
|
|
(5
|
)
|
|
(1,288
|
)
|
|||
Other comprehensive income (loss) before reclassifications
|
|
—
|
|
|
1
|
|
|
1
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
|
|
|
|
|
|
||||||
Amortization of prior service credit1
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||
Amortization of net actuarial loss1
|
|
77
|
|
|
—
|
|
|
77
|
|
|||
Tax expense for items of other comprehensive income
|
|
(19
|
)
|
|
—
|
|
|
(19
|
)
|
|||
Net current period other comprehensive income
|
|
55
|
|
|
1
|
|
|
56
|
|
|||
Balance as of September 30, 2019
|
|
$
|
(1,228
|
)
|
|
$
|
(4
|
)
|
|
$
|
(1,232
|
)
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
(in millions, except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net earnings
|
|
$
|
154
|
|
|
$
|
229
|
|
|
$
|
400
|
|
|
$
|
624
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding
|
|
41.2
|
|
|
43.3
|
|
|
41.4
|
|
|
44.1
|
|
||||
Net dilutive effect of stock awards
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Dilutive weighted-average common shares outstanding
|
|
41.2
|
|
|
43.3
|
|
|
41.4
|
|
|
44.1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - basic
|
|
$
|
3.74
|
|
|
$
|
5.29
|
|
|
$
|
9.66
|
|
|
$
|
14.15
|
|
Earnings per share - diluted
|
|
$
|
3.74
|
|
|
$
|
5.29
|
|
|
$
|
9.66
|
|
|
$
|
14.15
|
|
|
|
Three Months Ended September 30, 2019
|
||||||||||||||||||
($ in millions)
|
|
Ingalls
|
|
Newport News
|
|
Technical Solutions
|
|
Intersegment Eliminations
|
|
Total
|
||||||||||
Revenue Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Product sales
|
|
$
|
584
|
|
|
$
|
952
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
1,545
|
|
Service revenues
|
|
62
|
|
|
310
|
|
|
302
|
|
|
—
|
|
|
674
|
|
|||||
Intersegment
|
|
1
|
|
|
2
|
|
|
36
|
|
|
(39
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
647
|
|
|
$
|
1,264
|
|
|
$
|
347
|
|
|
$
|
(39
|
)
|
|
$
|
2,219
|
|
Customer Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal
|
|
$
|
646
|
|
|
$
|
1,262
|
|
|
$
|
233
|
|
|
$
|
—
|
|
|
$
|
2,141
|
|
Commercial
|
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
|
78
|
|
|||||
Intersegment
|
|
1
|
|
|
2
|
|
|
36
|
|
|
(39
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
647
|
|
|
$
|
1,264
|
|
|
$
|
347
|
|
|
$
|
(39
|
)
|
|
$
|
2,219
|
|
Contract Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Firm fixed-price
|
|
$
|
21
|
|
|
$
|
2
|
|
|
$
|
66
|
|
|
$
|
—
|
|
|
$
|
89
|
|
Fixed-price incentive
|
|
519
|
|
|
578
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
|||||
Cost-type
|
|
106
|
|
|
682
|
|
|
125
|
|
|
—
|
|
|
913
|
|
|||||
Time and materials
|
|
—
|
|
|
—
|
|
|
120
|
|
|
—
|
|
|
120
|
|
|||||
Intersegment
|
|
1
|
|
|
2
|
|
|
36
|
|
|
(39
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
647
|
|
|
$
|
1,264
|
|
|
$
|
347
|
|
|
$
|
(39
|
)
|
|
$
|
2,219
|
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
($ in millions)
|
|
Ingalls
|
|
Newport News
|
|
Technical Solutions
|
|
Intersegment Eliminations
|
|
Total
|
||||||||||
Revenue Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Product sales
|
|
$
|
636
|
|
|
$
|
891
|
|
|
$
|
20
|
|
|
$
|
—
|
|
|
$
|
1,547
|
|
Service revenues
|
|
56
|
|
|
286
|
|
|
194
|
|
|
—
|
|
|
536
|
|
|||||
Intersegment
|
|
2
|
|
|
2
|
|
|
31
|
|
|
(35
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
694
|
|
|
$
|
1,179
|
|
|
$
|
245
|
|
|
$
|
(35
|
)
|
|
$
|
2,083
|
|
Customer Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal
|
|
$
|
692
|
|
|
$
|
1,177
|
|
|
$
|
155
|
|
|
$
|
—
|
|
|
$
|
2,024
|
|
Commercial
|
|
—
|
|
|
—
|
|
|
59
|
|
|
—
|
|
|
59
|
|
|||||
Intersegment
|
|
2
|
|
|
2
|
|
|
31
|
|
|
(35
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
694
|
|
|
$
|
1,179
|
|
|
$
|
245
|
|
|
$
|
(35
|
)
|
|
$
|
2,083
|
|
Contract Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Firm fixed-price
|
|
$
|
31
|
|
|
$
|
2
|
|
|
$
|
33
|
|
|
$
|
—
|
|
|
$
|
66
|
|
Fixed-price incentive
|
|
569
|
|
|
472
|
|
|
—
|
|
|
—
|
|
|
1,041
|
|
|||||
Cost-type
|
|
92
|
|
|
703
|
|
|
90
|
|
|
—
|
|
|
885
|
|
|||||
Time and materials
|
|
—
|
|
|
—
|
|
|
91
|
|
|
—
|
|
|
91
|
|
|||||
Intersegment
|
|
2
|
|
|
2
|
|
|
31
|
|
|
(35
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
694
|
|
|
$
|
1,179
|
|
|
$
|
245
|
|
|
$
|
(35
|
)
|
|
$
|
2,083
|
|
|
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||
($ in millions)
|
|
Ingalls
|
|
Newport News
|
|
Technical Solutions
|
|
Intersegment Eliminations
|
|
Total
|
||||||||||
Revenue Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Product sales
|
|
$
|
1,678
|
|
|
$
|
2,842
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
4,555
|
|
Service revenues
|
|
173
|
|
|
950
|
|
|
809
|
|
|
—
|
|
|
1,932
|
|
|||||
Intersegment
|
|
2
|
|
|
4
|
|
|
96
|
|
|
(102
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
1,853
|
|
|
$
|
3,796
|
|
|
$
|
940
|
|
|
$
|
(102
|
)
|
|
$
|
6,487
|
|
Customer Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal
|
|
$
|
1,851
|
|
|
$
|
3,792
|
|
|
$
|
629
|
|
|
$
|
—
|
|
|
$
|
6,272
|
|
Commercial
|
|
—
|
|
|
—
|
|
|
215
|
|
|
—
|
|
|
215
|
|
|||||
Intersegment
|
|
2
|
|
|
4
|
|
|
96
|
|
|
(102
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
1,853
|
|
|
$
|
3,796
|
|
|
$
|
940
|
|
|
$
|
(102
|
)
|
|
$
|
6,487
|
|
Contract Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Firm fixed-price
|
|
$
|
61
|
|
|
$
|
5
|
|
|
$
|
159
|
|
|
$
|
—
|
|
|
$
|
225
|
|
Fixed-price incentive
|
|
1,487
|
|
|
1,591
|
|
|
1
|
|
|
—
|
|
|
3,079
|
|
|||||
Cost-type
|
|
303
|
|
|
2,196
|
|
|
375
|
|
|
—
|
|
|
2,874
|
|
|||||
Time and materials
|
|
—
|
|
|
—
|
|
|
309
|
|
|
—
|
|
|
309
|
|
|||||
Intersegment
|
|
2
|
|
|
4
|
|
|
96
|
|
|
(102
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
1,853
|
|
|
$
|
3,796
|
|
|
$
|
940
|
|
|
$
|
(102
|
)
|
|
$
|
6,487
|
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
($ in millions)
|
|
Ingalls
|
|
Newport News
|
|
Technical Solutions
|
|
Intersegment Eliminations
|
|
Total
|
||||||||||
Revenue Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Product sales
|
|
$
|
1,747
|
|
|
$
|
2,616
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
4,416
|
|
Service revenues
|
|
159
|
|
|
823
|
|
|
579
|
|
|
—
|
|
|
1,561
|
|
|||||
Intersegment
|
|
2
|
|
|
5
|
|
|
89
|
|
|
(96
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
1,908
|
|
|
$
|
3,444
|
|
|
$
|
721
|
|
|
$
|
(96
|
)
|
|
$
|
5,977
|
|
Customer Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal
|
|
$
|
1,906
|
|
|
$
|
3,439
|
|
|
$
|
447
|
|
|
$
|
—
|
|
|
$
|
5,792
|
|
Commercial
|
|
—
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
184
|
|
|||||
State and local government agencies
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||
Intersegment
|
|
2
|
|
|
5
|
|
|
89
|
|
|
(96
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
1,908
|
|
|
$
|
3,444
|
|
|
$
|
721
|
|
|
$
|
(96
|
)
|
|
$
|
5,977
|
|
Contract Type
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Firm fixed-price
|
|
$
|
73
|
|
|
$
|
6
|
|
|
$
|
114
|
|
|
$
|
—
|
|
|
$
|
193
|
|
Fixed-price incentive
|
|
1,583
|
|
|
1,369
|
|
|
1
|
|
|
—
|
|
|
2,953
|
|
|||||
Cost-type
|
|
250
|
|
|
2,064
|
|
|
275
|
|
|
—
|
|
|
2,589
|
|
|||||
Time and materials
|
|
—
|
|
|
—
|
|
|
242
|
|
|
—
|
|
|
242
|
|
|||||
Intersegment
|
|
2
|
|
|
5
|
|
|
89
|
|
|
(96
|
)
|
|
—
|
|
|||||
Sales and service revenues
|
|
$
|
1,908
|
|
|
$
|
3,444
|
|
|
$
|
721
|
|
|
$
|
(96
|
)
|
|
$
|
5,977
|
|
|
|
Three Months Ended
September 30 |
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Major Programs
|
|
|
|
|
|
|
|
|
||||||||
Amphibious assault ships
|
|
$
|
349
|
|
|
$
|
356
|
|
|
$
|
971
|
|
|
$
|
971
|
|
Surface combatants and coast guard cutters
|
|
294
|
|
|
336
|
|
|
875
|
|
|
934
|
|
||||
Other
|
|
4
|
|
|
2
|
|
|
7
|
|
|
3
|
|
||||
Total Ingalls
|
|
647
|
|
|
694
|
|
|
1,853
|
|
|
1,908
|
|
||||
Aircraft carriers
|
|
707
|
|
|
647
|
|
|
2,166
|
|
|
1,888
|
|
||||
Submarines
|
|
390
|
|
|
369
|
|
|
1,121
|
|
|
1,114
|
|
||||
Other
|
|
167
|
|
|
163
|
|
|
509
|
|
|
442
|
|
||||
Total Newport News
|
|
1,264
|
|
|
1,179
|
|
|
3,796
|
|
|
3,444
|
|
||||
Government and energy services
|
|
284
|
|
|
194
|
|
|
772
|
|
|
589
|
|
||||
Oil and gas services
|
|
63
|
|
|
51
|
|
|
168
|
|
|
132
|
|
||||
Total Technical Solutions
|
|
347
|
|
|
245
|
|
|
940
|
|
|
721
|
|
||||
Intersegment eliminations
|
|
(39
|
)
|
|
(35
|
)
|
|
(102
|
)
|
|
(96
|
)
|
||||
Sales and service revenues
|
|
$
|
2,219
|
|
|
$
|
2,083
|
|
|
$
|
6,487
|
|
|
$
|
5,977
|
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Sales and Service Revenues
|
|
|
|
|
|
|
|
|
||||||||
Ingalls
|
|
$
|
647
|
|
|
$
|
694
|
|
|
$
|
1,853
|
|
|
$
|
1,908
|
|
Newport News
|
|
1,264
|
|
|
1,179
|
|
|
3,796
|
|
|
3,444
|
|
||||
Technical Solutions
|
|
347
|
|
|
245
|
|
|
940
|
|
|
721
|
|
||||
Intersegment eliminations
|
|
(39
|
)
|
|
(35
|
)
|
|
(102
|
)
|
|
(96
|
)
|
||||
Sales and service revenues
|
|
$
|
2,219
|
|
|
$
|
2,083
|
|
|
$
|
6,487
|
|
|
$
|
5,977
|
|
Operating Income
|
|
|
|
|
|
|
|
|
||||||||
Ingalls
|
|
$
|
61
|
|
|
$
|
82
|
|
|
$
|
176
|
|
|
$
|
229
|
|
Newport News
|
|
109
|
|
|
119
|
|
|
257
|
|
|
261
|
|
||||
Technical Solutions
|
|
21
|
|
|
16
|
|
|
25
|
|
|
25
|
|
||||
Segment operating income
|
|
191
|
|
|
217
|
|
|
458
|
|
|
515
|
|
||||
Non-segment factors affecting operating income (loss)
|
|
|
|
|
|
|
|
|
||||||||
Operating FAS/CAS Adjustment
|
|
23
|
|
|
73
|
|
|
94
|
|
|
218
|
|
||||
Non-current state income taxes
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
5
|
|
||||
Operating income
|
|
$
|
214
|
|
|
$
|
290
|
|
|
$
|
550
|
|
|
$
|
738
|
|
($ in millions)
|
|
September 30
2019 |
|
December 31
2018 |
||||
Assets
|
|
|
|
|
||||
Ingalls
|
|
$
|
1,712
|
|
|
$
|
1,448
|
|
Newport News
|
|
3,945
|
|
|
3,572
|
|
||
Technical Solutions
|
|
1,134
|
|
|
734
|
|
||
Corporate
|
|
393
|
|
|
629
|
|
||
Total assets
|
|
$
|
7,184
|
|
|
$
|
6,383
|
|
($ in millions)
|
|
September 30
2019 |
|
December 31
2018 |
||||
Production costs of contracts in process1
|
|
$
|
37
|
|
|
$
|
34
|
|
Raw material inventory
|
|
102
|
|
|
94
|
|
||
Total inventoried costs, net
|
|
$
|
139
|
|
|
$
|
128
|
|
($ in millions)
|
|
Ingalls
|
|
Newport News
|
|
Technical Solutions
|
|
Total
|
||||||||
Balance as of December 31, 2018
|
|
175
|
|
|
721
|
|
|
367
|
|
|
1,263
|
|
||||
Acquisitions
|
|
—
|
|
|
—
|
|
|
133
|
|
|
133
|
|
||||
Adjustments
|
|
—
|
|
|
—
|
|
|
6
|
|
|
6
|
|
||||
Balance as of September 30, 2019
|
|
$
|
175
|
|
|
$
|
721
|
|
|
$
|
506
|
|
|
$
|
1,402
|
|
($ in millions)
|
|
September 30 2019
|
|
December 31
2018 |
||||
Senior notes due November 15, 2025, 5.000%
|
|
600
|
|
|
600
|
|
||
Senior notes due December 1, 2027, 3.483%
|
|
600
|
|
|
600
|
|
||
Mississippi economic development revenue bonds due May 1, 2024, 7.81%
|
|
84
|
|
|
84
|
|
||
Gulf opportunity zone industrial development revenue bonds due December 1, 2028, 4.55%
|
|
21
|
|
|
21
|
|
||
Revolving credit facility borrowings
|
|
264
|
|
|
—
|
|
||
Less unamortized debt issuance costs
|
|
(20
|
)
|
|
(22
|
)
|
||
Total long-term debt
|
|
$
|
1,549
|
|
|
$
|
1,283
|
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||
($ in millions)
|
|
2019
|
|
2019
|
||||
Operating lease costs
|
|
$
|
12
|
|
|
$
|
35
|
|
Short-term operating lease costs
|
|
$
|
9
|
|
|
$
|
21
|
|
Variable operating lease costs
|
|
$
|
2
|
|
|
$
|
5
|
|
Operating cash flows from operating leases
|
|
$
|
(12
|
)
|
|
$
|
(34
|
)
|
Right-of-use assets obtained in exchange for new operating lease liabilities
|
|
$
|
4
|
|
|
$
|
21
|
|
Weighted-average remaining lease term (years) - operating leases
|
|
11 years
|
|
|
11 years
|
|
||
Weighted-average discount rate - operating leases
|
|
4.5
|
%
|
|
4.5
|
%
|
Year:
|
|
September 30
2019 |
|
December 31
2018 |
||||
2019
|
|
$
|
11
|
|
|
$
|
41
|
|
2020
|
|
42
|
|
|
36
|
|
||
2021
|
|
36
|
|
|
30
|
|
||
2022
|
|
29
|
|
|
20
|
|
||
2023
|
|
22
|
|
|
13
|
|
||
Thereafter
|
|
127
|
|
|
56
|
|
||
Total lease payments
|
|
267
|
|
|
196
|
|
||
Less: imputed interest
|
|
59
|
|
|
—
|
|
||
Present value of lease liabilities
|
|
$
|
208
|
|
|
$
|
—
|
|
($ in millions)
|
|
|
||
Short-term operating lease liabilities
|
|
$
|
36
|
|
Long-term operating lease liabilities
|
|
172
|
|
|
Total operating lease liabilities
|
|
$
|
208
|
|
|
|
Three Months Ended
September 30 |
|
Nine Months Ended
September 30 |
||||||||||||||||||||||||||||
|
|
Pension Benefits
|
|
Other Benefits
|
|
Pension Benefits
|
|
Other Benefits
|
||||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Service cost
|
|
$
|
36
|
|
|
$
|
39
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
108
|
|
|
$
|
118
|
|
|
$
|
5
|
|
|
$
|
6
|
|
Interest cost
|
|
69
|
|
|
63
|
|
|
5
|
|
|
5
|
|
|
208
|
|
|
190
|
|
|
15
|
|
|
15
|
|
||||||||
Expected return on plan assets
|
|
(102
|
)
|
|
(107
|
)
|
|
—
|
|
|
—
|
|
|
(305
|
)
|
|
(322
|
)
|
|
—
|
|
|
—
|
|
||||||||
Amortization of prior service cost (credit)
|
|
4
|
|
|
6
|
|
|
(5
|
)
|
|
(5
|
)
|
|
13
|
|
|
18
|
|
|
(16
|
)
|
|
(16
|
)
|
||||||||
Amortization of net actuarial loss (gain)
|
|
29
|
|
|
20
|
|
|
(3
|
)
|
|
(1
|
)
|
|
85
|
|
|
61
|
|
|
(8
|
)
|
|
(2
|
)
|
||||||||
Net periodic benefit cost
|
|
$
|
36
|
|
|
$
|
21
|
|
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
$
|
109
|
|
|
$
|
65
|
|
|
$
|
(4
|
)
|
|
$
|
3
|
|
|
|
Nine Months Ended
September 30 |
||||||
($ in millions)
|
|
2019
|
|
2018
|
||||
Pension plans
|
|
|
|
|
||||
Qualified minimum
|
|
$
|
—
|
|
|
$
|
—
|
|
Discretionary
|
|
|
|
|
||||
Qualified
|
|
21
|
|
|
508
|
|
||
Non-qualified
|
|
5
|
|
|
6
|
|
||
Other benefit plans
|
|
23
|
|
|
23
|
|
||
Total contributions
|
|
$
|
49
|
|
|
$
|
537
|
|
|
|
Stock Awards
(in thousands)
|
|
Weighted-Average
Grant Date Fair
Value
|
|
Weighted-Average Remaining Contractual Term
(in years)
|
|||
Total stock awards
|
|
371
|
|
|
$
|
201.91
|
|
|
1.1
|
•
|
Revenue recognition;
|
•
|
Purchase accounting, goodwill, and intangible assets;
|
•
|
Litigation, commitments, and contingencies;
|
•
|
Retirement related benefit plans; and
|
•
|
Workers' compensation.
|
•
|
Firm Fixed-Price Contracts - A firm fixed-price contract is a contract in which the specified scope of work is agreed to for a price that is predetermined by bid or negotiation and not generally subject to adjustment regardless of costs incurred by the contractor.
|
•
|
Fixed-Price Incentive Contracts - Fixed-price incentive contracts provide for reimbursement of the contractor's allowable costs, but are subject to a cost-share limit that affects profitability. Fixed-price incentive contracts effectively become firm fixed-price contracts once the cost-share limit is reached.
|
•
|
Cost-Type Contracts - Cost-type contracts provide for reimbursement of the contractor's allowable costs plus a fee that represents profit. Cost-type contracts generally require that the contractor use its reasonable efforts to accomplish the scope of the work within some specified time and some stated dollar limitation.
|
•
|
Time and Materials - Time and materials contracts specify a fixed hourly billing rate for each direct labor hour expended and reimbursement for allowable material costs and expenses.
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Sales and service revenues
|
|
$
|
2,219
|
|
|
$
|
2,083
|
|
|
$
|
136
|
|
|
7
|
%
|
|
$
|
6,487
|
|
|
$
|
5,977
|
|
|
$
|
510
|
|
|
9
|
%
|
Cost of product sales and service revenues
|
|
1,802
|
|
|
1,593
|
|
|
209
|
|
|
13
|
%
|
|
5,388
|
|
|
4,656
|
|
|
732
|
|
|
16
|
%
|
||||||
Income from operating investments, net
|
|
6
|
|
|
8
|
|
|
(2
|
)
|
|
(25
|
)%
|
|
15
|
|
|
12
|
|
|
3
|
|
|
25
|
%
|
||||||
Other income and gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
14
|
|
|
(14
|
)
|
|
(100
|
)%
|
||||||
General and administrative expenses
|
|
209
|
|
|
208
|
|
|
1
|
|
|
—
|
%
|
|
564
|
|
|
609
|
|
|
(45
|
)
|
|
(7
|
)%
|
||||||
Operating income
|
|
214
|
|
|
290
|
|
|
(76
|
)
|
|
(26
|
)%
|
|
550
|
|
|
738
|
|
|
(188
|
)
|
|
(25
|
)%
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
|
|
(18
|
)
|
|
(14
|
)
|
|
(4
|
)
|
|
(29
|
)%
|
|
(52
|
)
|
|
(44
|
)
|
|
(8
|
)
|
|
(18
|
)%
|
||||||
Non-operating retirement benefit
|
|
3
|
|
|
19
|
|
|
(16
|
)
|
|
(84
|
)%
|
|
8
|
|
|
56
|
|
|
(48
|
)
|
|
(86
|
)%
|
||||||
Other, net
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
%
|
|
5
|
|
|
2
|
|
|
3
|
|
|
150
|
%
|
||||||
Federal and foreign income taxes
|
|
44
|
|
|
66
|
|
|
(22
|
)
|
|
(33
|
)%
|
|
111
|
|
|
128
|
|
|
(17
|
)
|
|
(13
|
)%
|
||||||
Net earnings
|
|
$
|
154
|
|
|
$
|
229
|
|
|
$
|
(75
|
)
|
|
(33
|
)%
|
|
$
|
400
|
|
|
$
|
624
|
|
|
$
|
(224
|
)
|
|
(36
|
)%
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Product sales
|
|
$
|
1,545
|
|
|
$
|
1,547
|
|
|
$
|
(2
|
)
|
|
—
|
%
|
|
$
|
4,555
|
|
|
$
|
4,416
|
|
|
$
|
139
|
|
|
3
|
%
|
Service revenues
|
|
674
|
|
|
536
|
|
|
138
|
|
|
26
|
%
|
|
1,932
|
|
|
1,561
|
|
|
371
|
|
|
24
|
%
|
||||||
Sales and service revenues
|
|
$
|
2,219
|
|
|
$
|
2,083
|
|
|
$
|
136
|
|
|
7
|
%
|
|
$
|
6,487
|
|
|
$
|
5,977
|
|
|
$
|
510
|
|
|
9
|
%
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Cost of product sales
|
|
$
|
1,246
|
|
|
$
|
1,159
|
|
|
$
|
87
|
|
|
8
|
%
|
|
$
|
3,754
|
|
|
$
|
3,369
|
|
|
$
|
385
|
|
|
11
|
%
|
% of product sales
|
|
80.6
|
%
|
|
74.9
|
%
|
|
|
|
|
|
|
82.4
|
%
|
|
76.3
|
%
|
|
|
|
|
|
||||||||
Cost of service revenues
|
|
556
|
|
|
434
|
|
|
122
|
|
|
28
|
%
|
|
1,634
|
|
|
1,287
|
|
|
347
|
|
|
27
|
%
|
||||||
% of service revenues
|
|
82.5
|
%
|
|
81.0
|
%
|
|
|
|
|
|
|
84.6
|
%
|
|
82.4
|
%
|
|
|
|
|
|
||||||||
Income from operating investments, net
|
|
6
|
|
|
8
|
|
|
(2
|
)
|
|
(25
|
)%
|
|
15
|
|
|
12
|
|
|
3
|
|
|
25
|
%
|
||||||
Other income and gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
14
|
|
|
(14
|
)
|
|
(100
|
)%
|
||||||
General and administrative expenses
|
|
209
|
|
|
208
|
|
|
1
|
|
|
—
|
%
|
|
564
|
|
|
609
|
|
|
(45
|
)
|
|
(7
|
)%
|
||||||
% of sales and service revenues
|
|
9.4
|
%
|
|
10.0
|
%
|
|
|
|
|
|
|
8.7
|
%
|
|
10.2
|
%
|
|
|
|
|
|
||||||||
Cost of sales and service revenues
|
|
$
|
2,005
|
|
|
$
|
1,793
|
|
|
$
|
212
|
|
|
12
|
%
|
|
$
|
5,937
|
|
|
$
|
5,239
|
|
|
$
|
698
|
|
|
13
|
%
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Operating income
|
|
$
|
214
|
|
|
$
|
290
|
|
|
$
|
(76
|
)
|
|
(26
|
)%
|
|
$
|
550
|
|
|
$
|
738
|
|
|
$
|
(188
|
)
|
|
(25
|
)%
|
Operating FAS/CAS Adjustment
|
|
(23
|
)
|
|
(73
|
)
|
|
50
|
|
|
68
|
%
|
|
(94
|
)
|
|
(218
|
)
|
|
124
|
|
|
57
|
%
|
||||||
Non-current state income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
2
|
|
|
(5
|
)
|
|
7
|
|
|
140
|
%
|
||||||
Segment operating income
|
|
$
|
191
|
|
|
$
|
217
|
|
|
$
|
(26
|
)
|
|
(12
|
)%
|
|
$
|
458
|
|
|
$
|
515
|
|
|
$
|
(57
|
)
|
|
(11
|
)%
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
FAS expense
|
|
$
|
(35
|
)
|
|
$
|
(22
|
)
|
|
$
|
(13
|
)
|
|
(59
|
)%
|
|
$
|
(105
|
)
|
|
$
|
(68
|
)
|
|
$
|
(37
|
)
|
|
(54
|
)%
|
CAS cost
|
|
61
|
|
|
114
|
|
|
(53
|
)
|
|
(46
|
)%
|
|
207
|
|
|
342
|
|
|
(135
|
)
|
|
(39
|
)%
|
||||||
FAS/CAS Adjustment
|
|
26
|
|
|
92
|
|
|
(66
|
)
|
|
(72
|
)%
|
|
102
|
|
|
274
|
|
|
(172
|
)
|
|
(63
|
)%
|
||||||
Non-operating retirement benefit
|
|
(3
|
)
|
|
(19
|
)
|
|
16
|
|
|
84
|
%
|
|
(8
|
)
|
|
(56
|
)
|
|
48
|
|
|
86
|
%
|
||||||
Operating FAS/CAS Adjustment
|
|
$
|
23
|
|
|
$
|
73
|
|
|
$
|
(50
|
)
|
|
(68
|
)%
|
|
$
|
94
|
|
|
$
|
218
|
|
|
$
|
(124
|
)
|
|
(57
|
)%
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Sales and Service Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ingalls
|
|
$
|
647
|
|
|
$
|
694
|
|
|
$
|
(47
|
)
|
|
(7
|
)%
|
|
$
|
1,853
|
|
|
$
|
1,908
|
|
|
$
|
(55
|
)
|
|
(3
|
)%
|
Newport News
|
|
1,264
|
|
|
1,179
|
|
|
85
|
|
|
7
|
%
|
|
3,796
|
|
|
3,444
|
|
|
352
|
|
|
10
|
%
|
||||||
Technical Solutions
|
|
347
|
|
|
245
|
|
|
102
|
|
|
42
|
%
|
|
940
|
|
|
721
|
|
|
219
|
|
|
30
|
%
|
||||||
Intersegment eliminations
|
|
(39
|
)
|
|
(35
|
)
|
|
(4
|
)
|
|
(11
|
)%
|
|
(102
|
)
|
|
(96
|
)
|
|
(6
|
)
|
|
(6
|
)%
|
||||||
Sales and service revenues
|
|
$
|
2,219
|
|
|
$
|
2,083
|
|
|
$
|
136
|
|
|
7
|
%
|
|
$
|
6,487
|
|
|
$
|
5,977
|
|
|
$
|
510
|
|
|
9
|
%
|
Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ingalls
|
|
$
|
61
|
|
|
$
|
82
|
|
|
$
|
(21
|
)
|
|
(26
|
)%
|
|
$
|
176
|
|
|
$
|
229
|
|
|
$
|
(53
|
)
|
|
(23
|
)%
|
Newport News
|
|
109
|
|
|
119
|
|
|
(10
|
)
|
|
(8
|
)%
|
|
257
|
|
|
261
|
|
|
(4
|
)
|
|
(2
|
)%
|
||||||
Technical Solutions
|
|
21
|
|
|
16
|
|
|
5
|
|
|
31
|
%
|
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
%
|
||||||
Segment operating income
|
|
191
|
|
|
217
|
|
|
(26
|
)
|
|
(12
|
)%
|
|
458
|
|
|
515
|
|
|
(57
|
)
|
|
(11
|
)%
|
||||||
Non-segment factors affecting operating income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Operating FAS/CAS Adjustment
|
|
23
|
|
|
73
|
|
|
(50
|
)
|
|
(68
|
)%
|
|
94
|
|
|
218
|
|
|
(124
|
)
|
|
(57
|
)%
|
||||||
Non-current state income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
(2
|
)
|
|
5
|
|
|
(7
|
)
|
|
(140
|
)%
|
||||||
Operating income
|
|
$
|
214
|
|
|
$
|
290
|
|
|
$
|
(76
|
)
|
|
(26
|
)%
|
|
$
|
550
|
|
|
$
|
738
|
|
|
$
|
(188
|
)
|
|
(25
|
)%
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
September 30
|
|
September 30
|
||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gross favorable adjustments
|
|
$
|
64
|
|
|
$
|
61
|
|
|
$
|
158
|
|
|
$
|
163
|
|
Gross unfavorable adjustments
|
|
(20
|
)
|
|
(27
|
)
|
|
(101
|
)
|
|
(64
|
)
|
||||
Net adjustments
|
|
$
|
44
|
|
|
$
|
34
|
|
|
$
|
57
|
|
|
$
|
99
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Sales and service revenues
|
|
$
|
647
|
|
|
$
|
694
|
|
|
$
|
(47
|
)
|
|
(7
|
)%
|
|
$
|
1,853
|
|
|
$
|
1,908
|
|
|
$
|
(55
|
)
|
|
(3
|
)%
|
Segment operating income
|
|
61
|
|
|
82
|
|
|
(21
|
)
|
|
(26
|
)%
|
|
176
|
|
|
229
|
|
|
(53
|
)
|
|
(23
|
)%
|
||||||
As a percentage of segment sales
|
|
9.4
|
%
|
|
11.8
|
%
|
|
|
|
|
|
9.5
|
%
|
|
12.0
|
%
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Sales and service revenues
|
|
$
|
1,264
|
|
|
$
|
1,179
|
|
|
$
|
85
|
|
|
7
|
%
|
|
$
|
3,796
|
|
|
$
|
3,444
|
|
|
$
|
352
|
|
|
10
|
%
|
Segment operating income
|
|
109
|
|
|
119
|
|
|
(10
|
)
|
|
(8
|
)%
|
|
257
|
|
|
261
|
|
|
(4
|
)
|
|
(2
|
)%
|
||||||
As a percentage of segment sales
|
|
8.6
|
%
|
|
10.1
|
%
|
|
|
|
|
|
6.8
|
%
|
|
7.6
|
%
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Nine Months Ended
|
|
|
||||||||||||||||||||||
|
|
September 30
|
|
2019 over 2018
|
|
September 30
|
|
2019 over 2018
|
||||||||||||||||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
|
2019
|
|
2018
|
|
Dollars
|
|
Percent
|
||||||||||||||
Sales and service revenues
|
|
$
|
347
|
|
|
$
|
245
|
|
|
$
|
102
|
|
|
42
|
%
|
|
$
|
940
|
|
|
$
|
721
|
|
|
$
|
219
|
|
|
30
|
%
|
Segment operating income (loss)
|
|
21
|
|
|
16
|
|
|
5
|
|
|
31
|
%
|
|
25
|
|
|
25
|
|
|
—
|
|
|
—
|
%
|
||||||
As a percentage of segment sales
|
|
6.1
|
%
|
|
6.5
|
%
|
|
|
|
|
|
|
|
2.7
|
%
|
|
3.5
|
%
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
|
|
|
|
Total
|
|
|
|
|
|
Total
|
||||||||||||
($ in millions)
|
|
Funded
|
|
Unfunded
|
|
Backlog
|
|
Funded
|
|
Unfunded
|
|
Backlog
|
||||||||||||
Ingalls
|
|
$
|
9,712
|
|
|
$
|
1,677
|
|
|
$
|
11,389
|
|
|
$
|
9,943
|
|
|
$
|
1,422
|
|
|
$
|
11,365
|
|
Newport News
|
|
7,570
|
|
|
19,179
|
|
|
26,749
|
|
|
6,767
|
|
|
4,144
|
|
|
10,911
|
|
||||||
Technical Solutions
|
|
520
|
|
|
570
|
|
|
1,090
|
|
|
339
|
|
|
380
|
|
|
719
|
|
||||||
Total backlog
|
|
$
|
17,802
|
|
|
$
|
21,426
|
|
|
$
|
39,228
|
|
|
$
|
17,049
|
|
|
$
|
5,946
|
|
|
$
|
22,995
|
|
|
|
Nine Months Ended
|
|
2019 over
|
||||||||
|
|
September 30
|
|
2018
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
||||||
Net earnings
|
|
$
|
400
|
|
|
$
|
624
|
|
|
$
|
(224
|
)
|
Depreciation and amortization
|
|
163
|
|
|
160
|
|
|
3
|
|
|||
Provision for doubtful accounts
|
|
(5
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|||
Stock-based compensation
|
|
19
|
|
|
27
|
|
|
(8
|
)
|
|||
Deferred income taxes
|
|
42
|
|
|
(1
|
)
|
|
43
|
|
|||
Retiree benefit funding less than (in excess of) expense
|
|
56
|
|
|
(468
|
)
|
|
524
|
|
|||
Trade working capital decrease (increase)
|
|
(345
|
)
|
|
(72
|
)
|
|
(273
|
)
|
|||
Net cash provided by operating activities
|
|
$
|
330
|
|
|
$
|
266
|
|
|
$
|
64
|
|
|
|
Nine Months Ended
|
|
2019 over
|
||||||||
|
|
September 30
|
|
2018
|
||||||||
($ in millions)
|
|
2019
|
|
2018
|
|
Dollars
|
||||||
Net cash provided by operating activities
|
|
$
|
330
|
|
|
$
|
266
|
|
|
$
|
64
|
|
Less capital expenditures:
|
|
|
|
|
|
|
||||||
Capital expenditure additions
|
|
(349
|
)
|
|
(293
|
)
|
|
(56
|
)
|
|||
Grant proceeds for capital expenditures
|
|
71
|
|
|
33
|
|
|
38
|
|
|||
Free cash flow
|
|
$
|
52
|
|
|
$
|
6
|
|
|
$
|
46
|
|
•
|
Changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans);
|
•
|
Our ability to estimate our future contract costs and perform our contracts effectively;
|
•
|
Changes in procurement processes and government regulations and our ability to comply with such requirements;
|
•
|
Our ability to deliver our products and services at an affordable life cycle cost and compete within our markets;
|
•
|
Natural and environmental disasters and political instability;
|
•
|
Our ability to execute our strategic plan, including with respect to share repurchases, dividends, capital expenditures, and strategic acquisitions;
|
•
|
Adverse economic conditions in the United States and globally;
|
•
|
Changes in key estimates and assumptions regarding our pension and retiree health care costs;
|
•
|
Security threats, including cyber security threats, and related disruptions; and
|
•
|
Other risk factors discussed herein and in our other filings with the SEC.
|
Program Name
|
|
Program Description
|
|
|
|
America class (LHA 6) amphibious assault ships
|
|
Design and build large deck amphibious assault ships that provide forward presence and power projection as an integral part of joint, interagency and multinational maritime expeditionary forces. The America class (LHA 6) ships, together with the Wasp class (LHD 1) ships, are the successors to the decommissioned Tarawa class (LHA 1) ships. The America class (LHA 6) ships optimize aviation operations and support capabilities. We delivered USS America (LHA 6) in April 2014, Tripoli (LHA 7) is scheduled for delivery in 2019, and we are currently constructing Bougainville (LHA 8).
|
|
|
|
Arleigh Burke class (DDG 51) destroyers
|
|
Build guided missile destroyers designed for conducting anti-air, anti-submarine, anti-surface, and strike operations. The Aegis-equipped Arleigh Burke class (DDG 51) destroyers are the U.S. Navy's primary surface combatant, and have been constructed in variants, allowing technological advances during construction. In 2016 we delivered USS John Finn (DDG 113), in 2017 we delivered Ralph Johnson (DDG 114), and in 2019 we delivered Paul Ignatius (DDG 117). We have contracts to construct the following Arleigh Burke class (DDG 51) destroyers: Delbert D. Black (DDG 119), Frank E. Petersen Jr. (DDG 121), Lenah H. Sutcliffe Higbee (DDG 123), Jack H. Lucas (DDG 125), Ted Stevens (DDG 128), Jeremiah Denton (DDG 129), George M. Neal (DDG 131), Sam Nunn (DDG 133), DDG 135 (unnamed), and DDG 137 (unnamed).
|
|
|
|
Carrier RCOH
|
|
Perform refueling and complex overhaul ("RCOH") of nuclear-powered aircraft carriers, which is required at the mid-point of their 50-year life cycle. USS Abraham Lincoln (CVN 72) was redelivered to the U.S. Navy in the second quarter of 2017 and USS George Washington (CVN 73) arrived at Newport News for the start of its RCOH in August 2017.
|
|
|
|
Columbia class (SSBN 826) submarines
|
|
Newport News is participating in designing the Columbia class submarine as a replacement for the current aging Ohio class nuclear ballistic missile submarines, which were first introduced into service in 1981. The Ohio class SSBN includes 14 nuclear ballistic missile submarines and four nuclear cruise missile submarines. The Columbia class program plan of record is to construct 12 new ballistic missile submarines. The U.S. Navy has initiated the design process for the new class of submarines, and, in early 2017, the DoD signed the acquisition decision memorandum approving the Columbia class program’s Milestone B, which formally authorizes the program’s entry into the engineering and manufacturing development phase. We perform design work as a subcontractor to Electric Boat, and we have entered into a teaming agreement with Electric Boat to build modules for the entire Columbia class submarine program that leverages our Virginia class (SSN 774) experience. We have been awarded contracts from Electric Boat to begin integrated product and process development and provide long-lead-time material and advance construction for the Columbia class (SSBN 826) program. Construction of the first Columbia class (SSBN 826) submarine is expected to begin in 2021.
|
|
|
|
Fleet support services
|
|
Provide comprehensive life-cycle sustainment services to the U.S. Navy fleet and other DoD and commercial maritime customers. We provide services including maintenance, modernization, and repair on all ship classes; naval architecture, marine engineering, and design; integrated logistics support; technical documentation development; warehousing, asset management, and material readiness; operational and maintenance training development and delivery; software design and development; IT infrastructure support and data delivery and management; and cyber security and information assurance. We provide undersea vehicle and specialized craft development and prototyping services.
|
|
|
|
USS Gerald R. Ford class (CVN 78) aircraft carriers
|
|
Design and construction for the Ford class program, which is the aircraft carrier replacement program for the decommissioned Enterprise (CVN 65) and Nimitz class (CVN 68) aircraft carriers. USS Gerald R. Ford (CVN 78), the first ship of the Ford class, was delivered to the U.S. Navy in the second quarter of 2017. In June 2015, we were awarded a contract for the detail design and construction of John F. Kennedy (CVN 79), following several years of engineering, advance construction, and purchase of long-lead time components and material. In addition, we have received awards for detail design and construction of Enterprise (CVN 80) and CVN 81 (unnamed.) This category also includes the class' non-recurring engineering. The class is expected to bring improved warfighting capability, quality of life improvements for sailors, and reduced life cycle costs.
|
|
|
|
Legend class National Security Cutter
|
|
Design and build the U.S. Coast Guard's National Security Cutters ("NSCs"), the largest and most technically advanced class of cutter in the U.S. Coast Guard. The NSC is equipped to carry out maritime homeland security, maritime safety, protection of natural resources, maritime mobility, and national defense missions. The plan is for a total of 11 ships, of which the first eight ships have been delivered. Stone (NSC 9), NSC 10 (unnamed), and NSC 11 (unnamed) are currently under construction.
|
|
|
|
MDIS services
|
|
Provide services to DoD, intelligence, and federal civilian customers. Services are performed in six major portfolio areas: modeling, simulation and training, information technology and software application, artificial intelligence and data analytics, mission engineering and operations support, logistics and life cycle management, and cyber space operations.
|
|
|
|
Naval nuclear support services
|
|
Provide services to and in support of the U.S. Navy, ranging from services supporting the Navy's carrier and submarine fleets to maintenance services at U.S. Navy training facilities. Naval nuclear support services include design, construction, maintenance, and disposal activities for in service U.S. Navy nuclear ships worldwide through mobile and in-house capabilities. Services include maintenance services on nuclear reactor prototypes.
|
|
|
|
Nuclear and environmental services
|
|
Provide services in nuclear management and operations, and nuclear and non-nuclear fabrication and repair. We provide site management, nuclear and industrial facilities operations and maintenance, decontamination and decommissioning, and radiological and hazardous waste management services. We provide services, including fabrication, equipment repair, and technical engineering services. We participate in several joint ventures, including N3B, MSTS, and SRNS. N3B was awarded the Los Alamos Legacy Cleanup Contract at the DoE/National Nuclear Security Administration’s Los Alamos National Laboratory. MSTS was awarded a contract for site management and operations at the Nevada National Security Site. SRNS provides site management and operations at the DoE's Savannah River Site near Aiken, South Carolina.
|
|
|
|
Oil and gas services
|
|
Deliver engineering, procurement, and construction management services to the oil and gas industry for major pipeline, production, and treatment facilities. These services include full life-cycle services for domestic and international projects, from concept identification through detail design, execution and construction, and decommissioning. Related field services include survey, inspection, commissioning and start-up, operations and maintenance, and optimization and debottlenecking.
|
|
|
|
San Antonio class (LPD 17) amphibious transport dock ships
|
|
Design and build amphibious transport dock ships, which are warships that embark, transport, and land elements of a landing force for a variety of expeditionary warfare missions, and also serve as the secondary aviation platform for Amphibious Readiness Groups. The San Antonio class (LPD 17) is the newest addition to the U.S. Navy's 21st century amphibious assault force, and these ships are a key element of the U.S. Navy's seabase transformation. In 2013, we delivered USS Somerset (LPD 25), in 2016, we delivered USS John P. Murtha (LPD 26), and, in 2017, we delivered USS Portland (LPD 27). We are currently constructing Fort Lauderdale (LPD 28), Richard M. McCool Jr. (LPD 29), and Harrisburg (LPD 30).
|
|
|
|
The decommissioned Enterprise (CVN 65)
|
|
Defuel and inactivate the world's first nuclear-powered aircraft carrier, which began in 2013. The inactivation was completed in the second quarter of 2018.
|
|
|
|
Virginia class (SSN 774) fast attack submarines
|
|
Construct attack submarines as the principal subcontractor to Electric Boat. The Virginia class (SSN 774) is a post-Cold War design tailored to excel in a wide range of warfighting missions, including anti-submarine and surface ship warfare; special operation forces; strike; intelligence, surveillance, and reconnaissance; carrier and expeditionary strike group support; and mine warfare.
|
|
|
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (in millions)1
|
||||||
July 1, 2019 to July 31, 2019
|
|
29,872
|
|
|
$
|
230.15
|
|
|
29,872
|
|
|
$
|
345.1
|
|
August 1, 2019 to August 31, 2019
|
|
155,799
|
|
|
206.96
|
|
|
155,799
|
|
|
312.8
|
|
||
September 1, 2019 to September 30, 2019
|
|
135,886
|
|
|
211.88
|
|
|
135,886
|
|
|
284.0
|
|
||
Total
|
|
321,557
|
|
|
$
|
211.19
|
|
|
321,557
|
|
|
$
|
284.0
|
|
3.1
|
|
|
|
|
|
|
|
3.2
|
|
|
|
|
|
|
|
3.3
|
|
|
|
|
|
|
|
3.4
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
|
|
|
4.2
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
|
|
|
31.2
|
|
|
|
|
|
|
|
32.1
|
|
|
|
|
|
|
|
32.2
|
|
|
|
|
|
|
|
101
|
|
|
The following financial information for the Company, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations and Comprehensive Income, (ii) the Condensed Consolidated Statements of Financial Position, (iii) the Condensed Consolidated Statements of Cash Flows, (iv) the Condensed Consolidated Statements of Changes in Equity, and (v) the Notes to Condensed Consolidated Financial Statements.
|
|
|
|
|
104
|
|
|
The cover page from the Company’s Quarterly Report on Form 10-Q, formatted in Inline XBRL and contained in Exhibit 101.
|
Date:
|
November 7, 2019
|
Huntington Ingalls Industries, Inc.
|
|
|
|
(Registrant)
|
|
|
|
||
|
|
By:
|
/s/ Nicolas Schuck
|
|
|
|
Nicolas Schuck
|
|
|
|
Corporate Vice President, Controller and Chief Accounting Officer
|
|
|
|
(Duly Authorized Officer and Principal Accounting Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Huntington Ingalls Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ C. Michael Petters
|
|
C. Michael Petters
|
|
President and Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Huntington Ingalls Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Christopher D. Kastner
|
|
Christopher D. Kastner
|
|
Executive Vice President, Business Management and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.
|
|
/s/ C. Michael Petters
|
|
C. Michael Petters
|
|
President and Chief Executive Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.
|
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/s/ Christopher D. Kastner
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Christopher D. Kastner
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Executive Vice President, Business Management and Chief Financial Officer
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