Balance Sheet Accounts

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Accounts

Balance Sheet Accounts

a. Fair Value of Financial Instruments

Financial instruments are classified using a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

			Fair value measurement as of June 30, 2020
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(In millions)
Money market funds	$	570.0	$	570.0	$	—	$	—
Registered investment companies	3.0		3.0		—		—
Commercial paper	110.0		—		110.0		—
Total	$	683.0	$	573.0	$	110.0	$	—

			Fair value measurement as of December 31, 2019
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)
	(In millions)
Money market funds	$	626.0	$	626.0	$	—	$	—
Registered investment companies	3.7		3.7		—		—
Commercial paper	99.9		—		99.9
Total	$	729.6	$	629.7	$	99.9	$	—

As of June 30, 2020, of the total estimated fair value for commercial paper, $85.0 million was classified as cash and cash equivalents as the remaining maturity at date of purchase was less than three months, and $25.0 million was classified as marketable securities. As of December 31, 2019, the total estimated fair value for commercial paper was classified as cash and cash equivalents as the remaining maturity at date of purchase was less than three months.

The carrying amounts of certain of the Company’s financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued compensation, and other accrued liabilities, approximate fair value because of their short maturities.

The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations:

	Fair Value				Principal Amount
	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019
	(In millions)
Term loan	$	303.4	$	328.1	$	319.4	$	328.1
21/4% Notes	477.4		546.0		300.0		300.0
Total	$	780.8	$	874.1	$	619.4	$	628.1

The fair value of the 2¼% Notes was determined using broker quotes that are based on open markets for the Company's debt securities (Level 2 securities). The fair value of the term loan at June 30, 2020, was estimated based on a third-party model used to derive a relative value price using comparable corporate loans within the same industry, credit quality, and currency. At December 31, 2019, the term loan carrying value approximated fair value.

b. Accounts Receivable, net

	June 30, 2020			December 31, 2019
	(In millions)
Billed receivables under long-term contracts	$	81.0		$	122.9
Reserve on billed trade receivables	(1.0		)	(10.6		)
Other trade receivables	0.4			0.2
Accounts receivable, net	$	80.4		$	112.5

c. Other Current Assets, net

	June 30, 2020		December 31, 2019
	(In millions)
Deferred costs recoverable from the U.S. government	$	45.7	$	47.1
Income taxes receivable	23.7		43.4
Inventories	15.8		24.0
Prepaid expenses	15.2		13.9
Other	13.8		17.4
Other current assets, net	$	114.2	$	145.8

d. Property, Plant and Equipment, net

	June 30, 2020			December 31, 2019
	(In millions)
Land	$	71.2		$	71.2
Buildings and improvements	439.6			434.9
Machinery and equipment, including capitalized software	461.8			488.2
Construction-in-progress	72.1			70.2
	1,044.7			1,064.5
Less: accumulated depreciation	(643.2		)	(654.6		)
Property, plant and equipment, net	$	401.5		$	409.9

e. Other Noncurrent Assets, net

	June 30, 2020		December 31, 2019
	(In millions)
Real estate held for entitlement and leasing	$	100.7	$	100.3
Deferred costs recoverable from the U.S. government	56.3		54.8
Receivable from Northrop Grumman Corporation for environmental remediation costs	43.5		46.5
Other	47.6		54.0
Other noncurrent assets, net	$	248.1	$	255.6

f. Other Current Liabilities

	June 30, 2020		December 31, 2019
	(In millions)
Accrued compensation and employee benefits	$	105.2	$	103.1
Other	42.5		52.4
Other current liabilities	$	147.7	$	155.5