XML 42 R26.htm IDEA: XBRL DOCUMENT v3.20.4
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2020
Accounting Policies [Abstract]  
Schedule of Fair Value of Financial Instruments
 Fair value measurement as of December 31, 2020
 TotalQuoted Prices in
Active Markets
for Identical
Assets
(Level 1)

Other
Observable
Inputs
(Level 2)

Unobservable
Inputs
(Level 3)
 (In millions)
Money market funds$569.3 $569.3 $— $— 
Commercial paper232.0 — 232.0 — 
Registered investment companies2.5 2.5 — — 
Equity securities 7.0 7.0 — — 
Total$810.8 $578.8 $232.0 $— 
 Fair value measurement as of December 31, 2019
 TotalQuoted 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 companies3.7 3.7 — — 
Commercial paper99.9 — 99.9 — 
Total$729.6 $629.7 $99.9 $— 
Schedule of Estimated Fair Value and Principal Amount of Outstanding Debt
The following table summarizes the estimated fair value and principal amount for outstanding debt obligations excluding finance lease obligations:
 Fair ValuePrincipal Amount
As of December 31,As of December 31,
2020201920202019
 (In millions)
Term loan$306.5 $328.1 $308.5 $328.1 
2¼% Notes609.5 546.0 300.0 300.0 
$916.0 $874.1 $608.5 $628.1 
Schedule of Useful Lives of Property, Plant and Equipment Depreciation is computed principally by accelerated methods based on the following useful lives:  
Buildings and improvements
9 - 40  years
Machinery and equipment
6 - 10  years
Schedule of Changes in Carrying Amount of Conditional Asset Retirement Obligations The following table summarizes the changes in the carrying amount of CAROs:
Year Ended December 31,
202020192018
 (In millions)
Balance at beginning of year$51.4 $46.0 $44.0 
(Reductions)/ additions and other, net(2.7)2.6 (0.5)
Accretion2.7 2.8 2.5 
Balance at end of year$51.4 $51.4 $46.0 
Summary of Impact of Contracts in Progress on Statement of Operations The following table summarizes the impact of the changes in significant contract accounting estimates on the Company’s Aerospace and Defense segment operating results:
 Year Ended December 31,
 202020192018
 (In millions, except per share amounts)
Net favorable effect of the changes in contract estimates on net sales$38.5 $38.6 $68.2 
Favorable effect of the changes in contract estimates on income before income taxes45.1 38.4 59.1 
Favorable effect of the changes in contract estimates on net income 34.5 28.2 43.1 
Favorable effect of the changes in contract estimates on basic earnings per share ("EPS") of common stock 0.44 0.36 0.56 
Favorable effect of the changes in contract estimates on diluted EPS0.42 0.34 0.55 
Contract with Customer, Asset and Liability The following table summarizes contract assets and liabilities:
As of December 31,
20202019
 (In millions)
Contract assets $294.3 $243.5 
Reserve for overhead rate disallowance(5.7)(19.4)
Contract assets, net of reserve288.6 224.1 
Contract liabilities407.2 262.3 
Net contract liabilities, net of reserve$(118.6)$(38.2)
Schedules of Percentage of Net Sales for Significant Programs The following table summarizes the percentages of net sales by contract type:
 Year Ended December 31,
 202020192018
Fixed-price61 %61 %63 %
Cost-reimbursable39 39 37 
The following table summarizes the percentages of net sales by principal end user:
 Year Ended December 31,
 202020192018
U.S. government96 %96 %94 %
Non U.S. government customers
The following table summarizes the percentages of net sales for significant programs, all of which are included in the U.S. government sales and are comprised of multiple contracts:
 Year Ended December 31,
 202020192018
RS-25 program18 %17 %14 %
Standard Missile program13 13 13 
THAAD program11 10 11 
PAC-3 program
10 10 
Schedule of Customers that Represented More than 10% of Net Sales
The following table summarizes the customers that represented more than 10% of net sales, each of which involves sales of several product lines and programs:
 Year Ended December 31,
 202020192018
Lockheed Martin34 %33 %30 %
NASA21 21 18 
Raytheon Technologies Corporation ("Raytheon")17 17 19 
ULA*10 17 
________
* Less than 10%.
Schedule of Customers that Represented More than 10% of Accounts Receivable
The following table summarizes customers that represented more than 10% of accounts receivable, including unbilled receivables which are a component of contract assets:
 As of December 31,
 20202019
Lockheed Martin21 %26 %
Raytheon20 21 
The Boeing Company 16 18 
NASA*14 
________
* Less than 10%.