Subsidiary Guarantors (Tables)

9 Months Ended

Sep. 30, 2014

Subsidiary Guarantors [Abstract]

Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

	Three Months Ended September 30, 2014
($ in millions)	Huntington Ingalls Industries, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales and service revenues
Product sales	$	—		$	1,385		$	—	$	—		$	1,385
Service revenues	—			311			26		(5		)	332
Total sales and service revenues	—			1,696			26		(5		)	1,717
Cost of sales and service revenues
Cost of product sales	—			1,086			—		—			1,086
Cost of service revenues	—			262			21		(5		)	278
Income (loss) from operating investments, net	—			7			—		—			7
General and administrative expenses	—			187			2		—			189
Operating income (loss)	—			168			3		—			171
Interest expense	(26		)	(1		)	—		—			(27		)
Equity in earnings (loss) of subsidiaries	113			—			—		(113		)	—
Earnings (loss) before income taxes	87			167			3		(113		)	144
Federal income taxes	(9		)	57			—		—			48
Net earnings (loss)	$	96		$	110		$	3	$	(113	)	$	96
Other comprehensive income (loss), net of tax	3			3			—		(3		)	3
Comprehensive income (loss)	$	99		$	113		$	3	$	(116	)	$	99

	Three Months Ended September 30, 2013
($ in millions)	Huntington Ingalls Industries, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales and service revenues
Product sales	$	—		$	1,394		$	—	$	—		$	1,394
Service revenues	—			243			6		(6		)	243
Total sales and service revenues	—			1,637			6		(6		)	1,637
Cost of sales and service revenues
Cost of product sales	—			1,123			—		—			1,123
Cost of service revenues	—			210			6		(6		)	210
Income (loss) from operating investments, net	—			9			—		—			9
General and administrative expenses	—			186			—		—			186
Operating income (loss)	—			127			—		—			127
Interest expense	(26		)	(2		)	—		—			(28		)
Equity in earnings (loss) of subsidiaries	87			—			—		(87		)	—
Earnings (loss) before income taxes	61			125			—		(87		)	99
Federal income taxes	(8		)	38			—		—			30
Net earnings (loss)	$	69		$	87		$	—	$	(87	)	$	69
Other comprehensive income (loss), net of tax	18			18			—		(18		)	18
Comprehensive income (loss)	$	87		$	105		$	—	$	(105	)	$	87

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

	Nine Months Ended September 30, 2014
($ in millions)	Huntington Ingalls Industries, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales and service revenues
Product sales	$	—		$	4,150		$	—	$	—		$	4,150
Service revenues	—			854			41		(15		)	880
Total sales and service revenues	—			5,004			41		(15		)	5,030
Cost of sales and service revenues
Cost of product sales	—			3,277			—		—			3,277
Cost of service revenues	—			723			35		(15		)	743
Income (loss) from operating investments, net	—			10			—		—			10
General and administrative expenses	—			507			2		—			509
Operating income (loss)	—			507			4		—			511
Interest expense	(78		)	(5		)	—		—			(83		)
Equity in earnings (loss) of subsidiaries	338			—			—		(338		)	—
Earnings (loss) before income taxes	260			502			4		(338		)	428
Federal income taxes	(26		)	168			—		—			142
Net earnings (loss)	$	286		$	334		$	4	$	(338	)	$	286
Other comprehensive income (loss), net of tax	15			15			—		(15		)	15
Comprehensive income (loss)	$	301		$	349		$	4	$	(353	)	$	301

	Nine Months Ended September 30, 2013
($ in millions)	Huntington Ingalls Industries, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Sales and service revenues
Product sales	$	—		$	4,138		$	—	$	—		$	4,138
Service revenues	—			744			17		(17		)	744
Total sales and service revenues	—			4,882			17		(17		)	4,882
Cost of sales and service revenues
Cost of product sales	—			3,366			—		—			3,366
Cost of service revenues	—			650			17		(17		)	650
Income (loss) from operating investments, net	—			13			—		—			13
General and administrative expenses	—			541			—		—			541
Operating income (loss)	—			338			—		—			338
Interest expense	(81		)	(6		)	—		—			(87		)
Equity in earnings (loss) of subsidiaries	225			—			—		(225		)	—
Earnings (loss) before income taxes	144			332			—		(225		)	251
Federal income taxes	(26		)	107			—		—			81
Net earnings (loss)	$	170		$	225		$	—	$	(225	)	$	170
Other comprehensive income (loss), net of tax	148			148			—		(148		)	148
Comprehensive income (loss)	$	318		$	373		$	—	$	(373	)	$	318

Schedule of Condensed Consolidating Statement of Financial Position

CONDENSED CONSOLIDATING STATEMENTS OF FINANCIAL POSITION

	September 30, 2014
($ in millions)	Huntington Ingalls Industries, Inc.		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current Assets
Cash and cash equivalents	$	760	$	3	$	6	$	—		$	769
Accounts receivable, net	—		1,127		17		—			1,144
Inventoried costs, net	—		272		—		—			272
Deferred income taxes	—		167		—		—			167
Prepaid expenses and other current assets	—		28		9		(9		)	28
Total current assets	760		1,597		32		(9		)	2,380
Property, plant, and equipment, net	—		1,850		2		—			1,852
Goodwill	—		1,086		—		—			1,086
Other purchased intangibles, net	—		551		—		—			551
Pension plan asset	—		129		—		—			129
Miscellaneous other assets	27		100		—		—			127
Investment in subsidiaries	3,630		—		—		(3,630		)	—
Intercompany receivables	—		1,121		—		(1,121		)	—
Total assets	$	4,417	$	6,434	$	34	$	(4,760	)	$	6,125
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable	$	—	$	263	$	5	$	—		$	268
Accrued employees’ compensation	—		224		2		—			226
Current portion of long-term debt	93		—		—		—			93
Current portion of postretirement plan liabilities	—		139		—		—			139
Current portion of workers’ compensation liabilities	—		233		—		—			233
Advance payments and billings in excess of revenues	—		53		—		—			53
Other current liabilities	4		218		9		(9		)	222
Total current liabilities	97		1,130		16		(9		)	1,234
Long-term debt	1,545		105		—		—			1,650
Pension plan liabilities	—		452		—		—			452
Other postretirement plan liabilities	—		486		—		—			486
Workers’ compensation liabilities	—		424		—		—			424
Deferred tax liabilities	—		118		—		—			118
Other long-term liabilities	—		99		—		—			99
Intercompany liabilities	1,113		—		8		(1,121		)	—
Total liabilities	2,755		2,814		24		(1,130		)	4,463
Stockholders’ equity	1,662		3,620		10		(3,630		)	1,662
Total liabilities and stockholders’ equity	$	4,417	$	6,434	$	34	$	(4,760	)	$	6,125

CONDENSED CONSOLIDATING STATEMENTS OF FINANCIAL POSITION

	December 31, 2013
($ in millions)	Huntington Ingalls Industries, Inc.		Subsidiary Guarantors		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current Assets
Cash and cash equivalents	$	1,042	$	—	$	1	$	—		$	1,043
Accounts receivable, net	—		1,123		—		—			1,123
Inventoried costs, net	—		311		—		—			311
Deferred income taxes	—		170		—		—			170
Prepaid expenses and other current assets	—		30		5		(6		)	29
Total current assets	1,042		1,634		6		(6		)	2,676
Property, plant, and equipment, net	—		1,897		—		—			1,897
Goodwill	—		881		—		—			881
Other purchased intangibles, net	—		528		—		—			528
Pension plan asset	—		124		—		—			124
Miscellaneous other assets	35		84		—		—			119
Investment in subsidiaries	3,295		—		—		(3,295		)	—
Intercompany receivables	—		1,152		—		(1,152		)	—
Total assets	$	4,372	$	6,300	$	6	$	(4,453	)	$	6,225
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable	$	—	$	337	$	—	$	—		$	337
Accrued employees’ compensation	—		230		—		—			230
Current portion of long-term debt	79		—		—		—			79
Current portion of postretirement plan liabilities	—		139		—		—			139
Current portion of workers’ compensation liabilities	—		230		—		—			230
Advance payments and billings in excess of revenues	—		115		—		—			115
Other current liabilities	25		237		6		(6		)	262
Total current liabilities	104		1,288		6		(6		)	1,392
Long-term debt	1,595		105		—		—			1,700
Pension plan liabilities	—		529		—		—			529
Other postretirement plan liabilities	—		477		—		—			477
Workers’ compensation liabilities	—		419		—		—			419
Deferred tax liabilities	—		83		—		—			83
Other long-term liabilities	—		104		—		—			104
Intercompany liabilities	1,152		—		—		(1,152		)	—
Total liabilities	2,851		3,005		6		(1,158		)	4,704
Stockholders’ equity	1,521		3,295		—		(3,295		)	1,521
Total liabilities and stockholders’ equity	$	4,372	$	6,300	$	6	$	(4,453	)	$	6,225

Schedule of Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	Nine Months Ended September 30, 2014
($ in millions)	Huntington Ingalls Industries, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(65	)	$	380		$	(1	)	$	—		$	314
Investing Activities
Additions to property, plant, and equipment	—			(91		)	—			—			(91		)
Acquisitions of businesses, net of cash received	—			(275		)	3			—			(272		)
Net funding from (to) parent	—			36			3			(39		)	—
Net cash provided by (used in) investing activities	—			(330		)	6			(39		)	(363		)
Financing Activities
Repayment of long-term debt	(36		)	—			—			—			(36		)
Dividends paid	(30		)	—			—			—			(30		)
Repurchases of common stock	(112		)	—			—			—			(112		)
Employee taxes on certain share-based payment arrangements	—			(64		)	—			—			(64		)
Proceeds from stock option exercises	—			2			—			—			2
Excess tax benefit related to stock-based compensation	—			15			—			—			15
Net funding from (to) subsidiary	(39		)	—			—			39			—
Net cash provided by (used in) financing activities	(217		)	(47		)	—			39			(225		)
Change in cash and cash equivalents	(282		)	3			5			—			(274		)
Cash and cash equivalents, beginning of period	1,042			—			1			—			1,043
Cash and cash equivalents, end of period	$	760		$	3		$	6		$	—		$	769

	Nine Months Ended September 30, 2013
($ in millions)	Huntington Ingalls Industries, Inc.			Subsidiary Guarantors			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(73	)	$	17		$	—	$	—		$	(56	)
Investing Activities
Additions to property, plant, and equipment	—			(85		)	—		—			(85		)
Proceeds from insurance settlement	—			58			—		—			58
Net funding from (to) parent	—			5			—		(5		)	—
Net cash provided by (used in) investing activities	—			(22		)	—		(5		)	(27		)
Financing Activities
Repayment of long-term debt	(22		)	—			—		—			(22		)
Dividends paid	(15		)	—			—		—			(15		)
Repurchases of common stock	(53		)	—			—		—			(53		)
Proceeds from stock option exercises	6			—			—		—			6
Excess tax benefit related to stock-based compensation	—			5			—		—			5
Net funding from (to) subsidiary	(5		)	—			—		5			—
Net cash provided by (used in) financing activities	(89		)	5			—		5			(79		)
Change in cash and cash equivalents	(162		)	—			—		—			(162		)
Cash and cash equivalents, beginning of period	1,056			—			1		—			1,057
Cash and cash equivalents, end of period	$	894		$	—		$	1	$	—		$	895