v3.25.0.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company is organized into three operating segments, which are also its reportable segments: Ingalls, Newport News, and Mission Technologies, consistent with HII’s principal lines of business. Ingalls includes the Company’s non-nuclear ship design, construction, repair, and maintenance businesses. Newport News includes all of the Company’s nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. The Mission Technologies segment provides a wide range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance systems and operations; the application of artificial intelligence and machine learning to battlefield decisions; defense and offensive cyberspace strategies and electronic warfare; uncrewed autonomous systems; live, virtual, and constructive training solutions; fleet sustainment; and critical nuclear operations.
The Company’s operations are managed by senior executives reporting to the Company’s President and Chief Executive Officer, the chief operating decision maker, who regularly reviews the reportable segments’ operating results to assess performance and allocate resources.

The Company internally manages operations by reference to segment operating income, which is defined as operating income before the Operating FAS/CAS Adjustment and non-current state income taxes, neither of which affects contract performance. In evaluating operating performance, the chief operating decision maker looks primarily at changes in sales and service revenues, as well as segment operating income. This approach is consistent with the long-term life cycle of the Company’s contracts, as management assesses the bidding of each contract by focusing on net sales and operating profit and monitors performance in a similar manner through contract completion.

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 substantially all of its revenues from the U.S. Government for each of the years ended December 31, 2024, 2023, and 2022.

Assets - Substantially all of the Company's assets are located or maintained in the United States.
Results of Operations by Segment

The following tables present the Company's operating results by segment:
Year Ended December 31, 2024
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Sales and Service Revenues
Product sales$2,424 $4,921 $119 $— $7,464 
Service Revenues335 1,045 2,691 — 4,071 
Intersegment8 3 127 (138)— 
Total sales and service revenues2,767 5,969 2,937 (138)11,535 
Segment Operating Income
Income from operating investments, net1 — 48 — 49 
Other income and gains, net— 10 (1)— 9 
Less:
Cost of sales and service revenues
Product2,070 4,276 102 — 6,448 
Service294 865 2,416 — 3,575 
Intersegment8 3 127 (138)— 
Other segment items185 589 223 — 997 
Total segment operating income$211 $246 $116 $— $573 
Non-segment factors affecting operating
Operating FAS/CAS Adjustment(62)
Non-current state income taxes24 
Total operating income$535 
Year Ended December 31, 2023
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Sales and Service Revenues
Product sales$2,495 $5,053 $116 $— $7,664 
Service Revenues248 1,077 2,465 — 3,790 
Intersegment9 3 118 (130)— 
Total sales and service revenues2,752 6,133 2,699 (130)11,454 
Segment Operating Income
Income from operating investments, net— — 37 — 37 
Other income and gains, net71 — 49 — 120 
Less:
Cost of sales and service revenues
Product2,031 4,254 121 — 6,406 
Service207 900 2,223 — 3,330 
Intersegment9 3 118 (130)— 
Other segment items214 597 222 — 1,033 
Total segment operating income$362 $379 $101 $— $842 
Non-segment factors affecting operating
Operating FAS/CAS Adjustment(72)
Non-current state income taxes11 
Total operating income$781 

Year Ended December 31, 2022
($ in millions)IngallsNewport NewsMission TechnologiesIntersegment EliminationsTotal
Sales and Service Revenues
Product sales$2,372 $4,821 $90 $— $7,283 
Service Revenues186 1,026 2,181 — 3,393 
Intersegment12 5 116 (133)— 
Total sales and service revenues2,570 5,852 2,387 (133)10,676 
Segment Operating Income
Income from operating investments, net— — 48 — 48 
Other income and gains, net— — 1 — 1 
Less:
Cost of sales and service revenues
Product1,931 4,097 73 — 6,101 
Service162 858 1,970 — 2,990 
Intersegment12 5 116 (133)— 
Other segment items173 535 214 — 922 
Total segment operating income$292 $357 $63 $— $712 
Non-segment factors affecting operating
Operating FAS/CAS Adjustment(145)
Non-current state income taxes(2)
Total operating income$565 

Sales transactions between segments are generally recorded at cost.
Other segment items consist of general and administrative expenses.

Other Financial Information

The following tables present the Company's capital expenditures, as presented to the chief operating decision maker, and depreciation and amortization by segment:
Year Ended December 31
($ in millions)202420232022
Capital Expenditures(1)
Ingalls$60 $65 $69 
Newport News268 196 182 
Mission Technologies18 11 20 
Total segment capital expenditures346 272 271 
Corporate7 6 1 
Total capital expenditures$353 $278 $272 
(1) Net of grant proceeds for capital expenditures

Year Ended December 31
($ in millions)202420232022
Depreciation and Amortization
Ingalls$78 $76 $79 
Newport News136 150 148 
Mission Technologies110 120 130 
Total segment depreciation and amortization324 346 357 
Corporate2 1 1 
Total depreciation and amortization$326 $347 $358 
Asset information by segment is not disclosed because it is not a key measure of performance used by the chief operating decision maker.