What changed in this filing

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Item 1. Business

2023-02-09 compared with 2022-02-10 · 126 added, 109 removed, 285 unchanged (45% of the section changed)

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Huntington Ingalls Industries, Inc.

("HII", the "Company", "we", "us", or "our") is America’s largest military shipbuilding company and a provider of professional services to partners in government and industry.

("HII", the "Company", "we", "us", or "our") is a global, all-domain defense partner, building and delivering the world's most powerful, survivable naval ships and technologies that safeguard America’s seas, sky, land, space, and cyber.

For more than a century, our Ingalls Shipbuilding segment ("Ingalls") in Mississippi and Newport News Shipbuilding segment ("Newport News") in Virginia have built more ships in more ship classes than any other U.S.

naval shipbuilder.

Our Technical Solutions segment provides a range of services to government and commercial customers.

naval shipbuilder, making us America's largest shipbuilder.

Our Mission Technologies (formerly named Technical Solutions) segment delivers high-value engineering and technology solutions to enable multi-domain distributed operations in the government and commercial markets.

Headquartered in Newport News, Virginia, we employ approximately 43,000 people domestically and internationally.

We conduct most of our business with the U.S.

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Newport News includes all of our nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses.

We also provide a wide range of professional services, including defense and federal solutions ("DFS"), nuclear and environmental services, and unmanned systems, through our Technical Solutions segment.

Headquartered in Newport News, Virginia, we employ approximately 44,000 people domestically and internationally.

Our Mission Technologies segment provides a wide range of services and products, including command, control, computers, communications, cyber, intelligence, surveillance, and reconnaissance ("C5ISR") systems and operations;

the application of artificial intelligence and machine learning to battlefield decisions;

defensive and offensive cyberspace strategies and electronic warfare ("CEWS");

unmanned autonomous systems;

live, virtual, and constructive training solutions ("LVC");

platform modernization;

and critical nuclear operations.

Through our Ingalls segment, we design and construct non-nuclear ships for the U.S.

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Our Ingalls segment is located in Pascagoula, Mississippi on 800 acres along the Pascagoula River.

This shipyard offers a collection of manufacturing capabilities that includes a 660-ton gantry crane and a Land Based Test Facility.

Amphibious Assault Ships

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We delivered USS Tripoli (LHA 7) in 2020 and are currently constructing Bougainville (LHA 8).

In 2020, we were awarded a long-lead-time material and construction contract for LHA 9 (unnamed).

In 2022, we were awarded the construction contract for Fallujah (LHA 9).

The LPD program is a long-running production program of expeditionary warfare ships in which we have generated efficiencies through ship-over-ship learning.

We delivered USS Portland (LPD 27) in 2017 and USS John P.

Murtha (LPD 26) in 2016, and we are currently constructing Fort Lauderdale (LPD 28), Richard M.

(LPD 29), and Harrisburg (LPD 30).

In 2020, we were awarded a contract to construct Pittsburgh (LPD 31).

We delivered USS Fort Lauderdale (LPD 28) in 2022, and we are currently constructing Richard M.

(LPD 29), Harrisburg (LPD 30), and Pittsburgh (LPD 31).

In 2022, we were awarded a long-lead time material contract for LPD 32 (unnamed).

Surface Combatants

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We have delivered 34 Arleigh Burke class (DDG 51) destroyers to the U.S.

Navy, including Frank E.

(DDG 121) in 2021, USS Delbert D.

Black (DDG 119) in 2020, and USS Paul Ignatius (DDG 117) in 2019.

In 2013, we were awarded a multi-year contract totaling $3.3 billion for construction of five Arleigh Burke class (DDG 51) destroyers, of which three have been delivered.

We are currently constructing the remaining two ships:

Sutcliffe Higbee (DDG 123) and Jack H.

Lucas (DDG 125).

Navy, including Lenah H.

Sutcliffe Higbee (DDG 123) in 2022, USS Frank E.

(DDG 121) in 2021, and USS Delbert D.

Black (DDG 119) in 2020.

In 2013, we were awarded a multi-year contract totaling $3.3 billion for construction of five Arleigh Burke class (DDG 51) destroyers, of which four have been delivered and Jack H.

Lucas (DDG 125) is being constructed.

In 2018, we were awarded a multi-year contract totaling $5.1 billion for construction of six additional Arleigh Burke class (DDG 51) destroyers.

In 2020, we were awarded a contract to construct an additional Arleigh Burke class (DDG 51) destroyer.

In 2020, we were awarded a contract to

construct an additional Arleigh Burke class (DDG 51) destroyer.

We are currently constructing Ted Stevens (DDG128), Jeremiah Denton (DDG 129), George M.

Neal (DDG 131), and Sam Nunn (DDG 133).

National Security Cutters

Coast Guard's recapitalization program is designed to replace aging and operationally expansive ships and aircraft used to conduct missions in excess of 50 miles from the shoreline.

Coast Guard's recapitalization program is replacing aging and operationally expansive ships and aircraft used to conduct missions in excess of 50 miles from the shoreline.

The flagship of this program is the Legend class NSC, a multi-mission platform we designed and continue to build.

We delivered USCGC Kimball (NSC 7), USCGC Midgett (NSC 8), and USCGC Stone (NSC 9) to the U.S.

Coast Guard in 2018, 2019, and 2020, respectively.

We delivered USCGC Stone (NSC 9) to the U.S.

Coast Guard in 2020.

In 2018, we were awarded long-lead-time material and construction contracts for Calhoun (NSC 10) and Friedman (NSC 11), which are currently under construction.

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Our Newport News shipyard is located on approximately 550 acres near the mouth of the James River, which adjoins the Chesapeake Bay.

The shipyard has two miles of waterfront property and heavy industrial facilities, which include seven graving docks, a floating dry dock, two outfitting berths, five outfitting piers, module outfitting facilities, and various other workshops.

Our Newport News shipyard also has a 2,170-foot dry dock serviced by a 1,050-ton gantry crane capable of supporting two aircraft carriers at one time.

Design, Construction, Refueling and Complex Overhaul, and Inactivation of Aircraft Carriers

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Ford class (CVN 78) aircraft carriers.

We delivered USS Gerald R.

Ford (CVN 78), the first aircraft carrier of the Gerald R.

Ford class to the U.S.

Navy in 2017.

Beginning in 2009, we received contract awards totaling $8.2 billion for construction preparation, detail design, and construction of the second Gerald R.

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Stennis (CVN 74).

We believe our position as the exclusive designer and builder of nuclear-powered aircraft carriers, our RCOH performance on the first seven Nimitz class (CVN 68) carriers, our highly trained workforce, the capital-intensive nature of RCOH work, and high barriers to entry due to its nuclear component strongly position us for RCOH contract awards on the remaining Nimitz class (CVN 68) carriers, as well as future RCOH work on Gerald R.

We believe our position as the exclusive designer and builder of nuclear-powered aircraft carriers, our RCOH performance on the first seven Nimitz class (CVN 68) carriers, our highly trained workforce, the capital-intensive nature of RCOH work, and high barriers to entry due to its nuclear component position us well for RCOH contract awards on the remaining Nimitz class (CVN 68) carriers, as well as future RCOH work on Gerald R.

Ford class (CVN 78) aircraft carriers.

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Navy alternates between Electric Boat and us.

The four submarines of the first block and six submarines of the second block of Virginia class (SSN 774) submarines have been delivered.

In December 2008, the U.S.

Navy signed a contract for eight Block III Virginia class (SSN 774) submarines.

The contract required delivery of one Virginia class (SSN 774) submarine per year for the first two years, and increased production to two submarines per year for the remaining six Block III boats.

The first submarine under this contract was delivered in 2014, and the last submarine of Block III was delivered in 2019.

In 2014, the team was awarded a construction contract for the fourth block of ten Virginia class (SSN 774) submarines.

The first submarine of the Block IV contract was delivered in 2020, and the remaining boats are in the module outfitting, final assembly, and test phases of construction.

In 2019, the team was awarded a construction contract for the fifth block of nine Virginia class (SSN 774) submarines, and, in 2021, an option for a 10th submarine was exercised, continuing the two submarines per year production rate that began on the third block.

The fiscal year 2021 appropriations act included funding for the 10th submarine in Block V, and the fiscal year 2022 National Defense Authorization Act recommends continued procurement of two Virginia class (SSN 774) submarines per fiscal year.

All ten boats of the Block V contract are in the early manufacturing and advance procurement phases.

The four submarines of the first block, six submarines of the second block, and eight submarines of the third block of Virginia class (SSN 774) submarines have been delivered.

In 2014, the team was awarded a construction contract for the fourth block of ten Virginia class (SSN 774) submarines, which requires production of two submarines per year.

The first submarine of the Block IV contract was delivered in 2020, two more submarines of the Block IV contract were delivered in 2022, and the remaining boats are in the manufacturing and outfitting phases of construction.

Eight of the Block V boats are in manufacturing and outfitting stages and two of the Block V boats are in the advance procurement phases.

Columbia Class (SSBN 826) Submarines

Newport News is participating in design and construction of the Columbia class (SSBN 826) submarine as a replacement for the current aging Ohio class nuclear ballistic missile submarines ("SSBN"), which were first introduced into service in 1981.

The Ohio class SSBN includes 14 nuclear ballistic missile submarines and four nuclear cruise missile submarines ("SSGN").

Newport News is participating in the design and construction of the Columbia class (SSBN 826) submarines as a replacement for the current aging Ohio class nuclear ballistic missile submarines ("SSBN"), which were first introduced into service in 1981.

The Columbia class (SSBN 826) program currently anticipates 12 new ballistic missile submarines.

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Kesselring Site, a research and development facility in New York that supports the U.S.

Technical Solutions

The Technical Solutions segment includes businesses that are focused on life-cycle sustainment services to the U.S.

Mission Technologies

The Mission Technologies segment includes business groups focused on high-end information technology (“IT”) and mission based solutions for DoD, intelligence, and federal civilian customers;

life-cycle sustainment services to the U.S.

Navy fleet and other maritime customers;

high-end information technology (“IT”) and mission-based solutions for DoD, intelligence, and federal civilian customers;

and nuclear management and operations and environmental management services for the Department of Energy ("DoE"), DoD, state and local governments, and private sector

This segment was established to unify multiple strategic acquisitions, including the acquisition of Alion Science and Technology in August 2021.

The Technical Solutions segment is comprised of three business units as follows:

Defense and Federal Solutions (“DFS”)

DFS is focused on solving national security challenges for the DoD, the intelligence community, and federal civilian agencies around the globe.

The group’s expertise includes maritime fleet sustainment;

intelligence, surveillance, and reconnaissance;

unmanned, autonomous systems;

and nuclear management and operations and environmental management services for the Department of Energy ("DoE"), DoD, state and local governments, and private sector companies.

The Mission Technologies segment is comprised of four business groups as follows:

Mission Based Solutions

Our mission based solutions businesses are focused on solving national security challenges for the DoD, the intelligence community, and federal civilian agencies around the globe.

The group’s expertise includes intelligence, surveillance, and reconnaissance;

cyber operations;

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and logistics management.

Our C5ISR solutions deliver actionable intelligence across the globe at hyper speed through mission systems and operations, accelerating decision-making and exploiting foreign threat vulnerabilities.

Our CEWS solutions provide full spectrum cyber, electronic warfare, and space capabilities that address today’s rapidly changing, multi-domain global security threats, and anticipated emerging threats.

Our LVC solutions designs and executes enterprise simulation and network technologies to prepare warfighters for virtually every conceivable environment they may face in the service to national defense and security.

Unmanned Systems

Our unmanned systems products and services create advanced unmanned maritime solutions for defense, marine research, and commercial applications.

Serving customers in more than 30 countries, our unmanned systems group provides design, autonomy, manufacturing, testing, operations, and sustainment of unmanned systems, including unmanned underwater vehicles and unmanned surface vessels.

Fleet Sustainment

Our 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.

Nuclear and Environmental Services

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We have a 34% ownership interest in SRNS, which provides site management and operations at the DoE's Savannah River Site near Aiken, South Carolina.

Unmanned Systems

Our unmanned systems products and services create advanced unmanned maritime solutions for defense, marine research, and commercial applications.

Serving customers in more than 30 countries, unmanned systems provides design, autonomy, manufacturing, testing, operations, and sustainment of unmanned systems, including unmanned underwater vehicles and unmanned surface vessels.

Our revenues are primarily derived from the U.S.

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Intellectual Property

We develop new technologies that are incorporated into the products we produce for our customers.

We develop new technologies that are incorporated into the products we produce and services we provide for our customers.

We also develop new manufacturing processes and systems-integration technologies and processes that we use to produce our products and to provide services to our customers.

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Government contracts when such data is developed entirely at government expense.

Government may use or authorize other parties to use the intellectual property we license to the government.

Government may use or authorize other parties to use the

intellectual property we license to the government.

While our intellectual property rights are important to our operations, we do not believe that any existing patent, license, or other intellectual property right is of such importance that its loss or termination would have a material impact on our business.

No material portion of our business is seasonal.

The timing of our revenue recognition is based on several factors, including the timing of contract awards, the incurrence of contract costs, contract cost estimation, and unit deliveries.

The timing of our revenue recognition is based on multiple factors, including the timing of contract awards, the incurrence of contract costs, contract cost estimation, and unit deliveries.

Summary of Significant Accounting Policies in Item 8.

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We believe these single source suppliers, as well as our overall supplier base, are adequate to meet our foreseeable needs.

We have mitigated some supply risk by negotiating long-term agreements with certain raw material suppliers.

In addition, we have mitigated price risk related to raw material purchases through certain contractual arrangements with customers.

Any inability to procure the necessary raw materials, components, and other supplies for our products on a timely basis could negatively affect our results of operations, financial condition, or cash flow.

In addition, a significant prolonged increase in inflation could negatively impact the cost of raw materials, components, and other supplies.

We mitigate some supply risk by negotiating long-term agreements with certain raw material suppliers, and we mitigate inflation risk related to raw material to an extent through price escalation provisions in certain customer contracts.

Regulatory Matters

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Navy's Supervisor of Shipbuilding, the Defense Contract Audit Agency ("DCAA"), and the Defense Contract Management Agency ("DCMA").

These agencies evaluate our contract performance, cost structures, and compliance with applicable laws, regulations, and standards, as well as the adequacy of our business systems and processes relative to U.S.

Government requirements.

These agencies evaluate our contract performance, cost structures, and compliance with applicable laws, regulations, and standards.

If an audit uncovers improper or illegal activities, we may be subject to administrative, civil, or criminal proceedings, which could result in fines, penalties, repayments, or compensatory, treble, or other damages.

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Government contracts or the loss of export privileges.

Government agencies also evaluate the adequacy of our business systems and processes relative to U.S.

Government requirements.

Our business systems subject to audit or review include our accounting systems, purchasing systems, government property management systems, estimating systems, earned value management systems, and material management accounting systems.

Government has the ability to decrease or withhold contract payments if it determines significant deficiencies exist in one or more of our business systems.

Government has, in certain instances, withheld contract payments upon its assessment that deficiencies exist with one or more of our business systems.

Although this has not materially impacted the timing of our cash receipts in the past, any such action by the U.S.

Government in the future could have a material impact on the timing of our cash receipts.

Government generally has the ability to terminate contracts, in whole or in part, with little or no prior notice, for convenience or for default based upon performance.

In the event of termination of a contract for convenience, a contractor is normally able to recover costs already incurred on the contract and profit on incurred costs up to the amount authorized under the contract, but not the profit that would have been earned had the contract been completed.

Such a termination could also result in the cancellation of future work on the related program.

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Government sometimes result in Requests for Equitable Adjustments ("REAs"), which represent requests for the U.S.

Government to make appropriate adjustments to contract terms, including pricing, delivery schedule, technical requirements, or other affected terms, due to changes in the original contract requirements and resulting delays and disruption in contract performance for which the U.S.

Government to make appropriate adjustments to contract terms, including pricing, delivery schedule, technical requirements, or other affected terms, due to changes to the original contract requirements and resulting delays and disruption for which the U.S.

Government is responsible.

We submit and negotiate REAs in the ordinary course of business, and large REAs are not uncommon

at the conclusion of both new construction and RCOH activities.

We submit and negotiate REAs in the ordinary course of business, and large REAs are not uncommon at the conclusion of both new construction and RCOH activities.

REAs can result in claims under the Contract Disputes Act of 1978, in cases in which we cannot reach agreement with the U.S.

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Costs we incur that are not allowable under the Federal Acquisition Regulation (the “FAR”) or U.S.

Cost Accounting Standards (“CAS”) or that are otherwise determined to be unallowable or improperly allocated to a specific contract will not be recovered or must be refunded if already reimbursed.

Cost Accounting Standards (“CAS”) or that are otherwise determined to be unallowable or improperly allocated to a specific contract are not recovered or must be refunded if already reimbursed.

Our business, including contracts with U.S.

Government agencies and subcontracts with other prime contractors, are subject to a variety of laws and regulations, including the FAR, the Defense Federal Acquisition Regulation Supplement ("DFARS"), the Truth in Negotiations Act, the Procurement Integrity Act, the False Claims Act, CAS, the International Traffic in Arms Regulations promulgated under the Arms Export Control Act, the Close the Contractor Fraud Loophole Act, and the Foreign Corrupt Practices Act.

Government agencies and subcontracts with other prime contractors, is subject to a variety of laws and regulations, including the FAR, the Defense Federal Acquisition Regulation Supplement ("DFARS"), the Truth in Negotiations Act, the Procurement Integrity Act, the False Claims Act, CAS, the International Traffic in Arms Regulations promulgated under the Arms Export Control Act, the Close the Contractor Fraud Loophole Act, and the Foreign Corrupt Practices Act.

A noncompliance determination by a government agency may result in reductions in contract values, contract modifications or terminations, penalties, fines, repayments, compensatory, treble, or other damages, or suspension or debarment.

We are also subject to evolving cyber security and data privacy and protection laws and regulations, which increase our costs and compliance risks and may affect our competitiveness, cause reputational harm, and expose us to damage claims, substantial fines, and other penalties.

Revenue under Item 8 and "Risk Factors" in Item 1A for further information regarding our contracts.

Our nuclear operations are subject to various safety related requirements imposed by the U.S.

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For our commercial nuclear operations, we rely primarily on insurance carried by nuclear facility operators for risk mitigation, and we maintain limited insurance coverage for losses in excess of the coverage of facility operators.

See "Risk Factors" in Item 1A for further information regarding nuclear regulatory matters.

Environmental

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Environmental Protection Agency ("EPA") or similarly designated by another environmental agency.

Uncertainties regarding the extent of required remediation, determination of legally responsible parties, and the status of laws and regulations and their interpretations make future environmental remediation costs difficult to estimate and can cause our estimated remediation costs to change.

Uncertainties regarding the extent of required remediation, determination of legally responsible parties, and

the status of laws and regulations and their interpretations make future environmental remediation costs difficult to estimate and can cause our estimated remediation costs to change.

We believe we are in material compliance with environmental laws and regulations, and historical environmental compliance costs have not been material to our business.

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We do not currently believe such costs will have a material effect on our financial position, results of operations, or cash flows.

See "Risk Factors" in Item 1A and Note 16:

Commitments and Contingencies under Item 8 for further information regarding environmental matters.

Competitive Environment

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It is not uncommon to compete for a contract award with a peer company and, simultaneously, serve as a supplier to or a customer of such competitor on other contracts.

The nature of major defense programs, conducted under binding long-term contracts, allows companies that perform well to benefit from a level of program continuity not common in many industries.

The nature of major defense programs, conducted under binding long-term contracts, enable companies that perform well to benefit from a level of program continuity not common in many industries.

We believe we are well-positioned in our shipbuilding markets.

Because we are the only company currently capable of building, refueling, and inactivating the U.S.

Navy's nuclear-powered aircraft carriers, we believe we are in a strong competitive position to be awarded each contract to perform such activities.

Navy's nuclear-powered aircraft carriers, we believe we are positioned well to be awarded future contracts to perform such activities.

Even so, the government periodically revisits whether refueling of nuclear-powered aircraft carriers should be performed in private or public facilities.

Government owned shipyard were to become capable and engaged in the refueling of nuclear-powered aircraft carriers, our market position could be significantly and adversely affected.

Government shipyard were to become capable and engaged in the refueling of nuclear-powered aircraft carriers, our market position could be significantly and adversely affected.

While we have competed with another large defense contractor to build large deck amphibious ships, we are currently the only builder of large deck amphibious assault ships and expeditionary warfare ships for the U.S.

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We are one of only two companies that builds the U.S.

Navy's current fleet of Arleigh Burke class (DDG 51) destroyers and are strongly positioned to be awarded future contracts for surface combatant ships as well.

Our Technical Solutions segment delivers technology-based products and solutions to government and commercial services markets, in which we compete with a wide range of companies supporting the U.S.

government and its allies worldwide.

Our success depends upon our ability to develop, market, and produce our products and services at costs consistent with our customers' expectations, as well as our ability to provide the workforce, technologies, facilities, equipment, and financial capacity needed to deliver those products and services with maximum efficiency.

Navy's current fleet of Arleigh Burke class (DDG 51) destroyers and are positioned well to be awarded future contracts for surface combatant ships as well.

Our Mission Technologies segment delivers technology based products and solutions to government and commercial markets.

Key competitive factors in these markets include technology capabilities, innovative cyber advances and artificial intelligence, the ability to develop and implement complex, integrated solutions;

the ability to meet delivery schedules;

and cost effectiveness.

Our success depends on investments in our people, technologies, and products to meet the evolving needs of our customers.

To remain competitive, we must be able to identify emerging technology trends and consistently provide superior service, while understanding customer priorities and maintaining customer relationships.

Our Mission Technologies segment competes domestically and internationally against large aerospace and defense ("A&D") companies, primarily L3 Harris, Amentum, ManTech, Leidos, and, increasingly, small businesses serving the intelligence community.

To a lesser extent, our lines of business compete on certain contracts with major prime A&D contractors, including Lockheed Martin, General Dynamics, Northrop Grumman, Raytheon, and Boeing.

Our success depends upon our ability to develop, market, produce, and deliver our products and services at costs consistent with our customers' expectations, as well as our ability to provide the workforce, technologies, facilities, equipment, and financial capacity needed to deliver those products and services with maximum efficiency.

Human Capital Resources

We recognize that our employees are our most important assets and serve as the foundation for our ability to achieve financial and strategic objectives.

Our employees are critical to driving operational execution, meeting customer expectations, providing strong financial performance, advancing innovation, and maintaining a strong quality and compliance program.

We recognize that our employees are our most important resources and serve as the foundation for our ability to achieve financial and strategic objectives.

Our employees are critical to driving operational execution, meeting customer expectations, delivering strong financial performance, advancing innovation, and maintaining a strong quality and compliance program.

Our leaders believe each employee contributes to our success.

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We also employ more than 7,400 veterans across the enterprise.

In addition, over 900 apprentices are enrolled in more than 27 crafts and advanced programs at our two shipbuilding divisions.

From nuclear pipe welders to senior executives, we employ approximately 4,500 apprentice school alumni, comprised of 3,061 at Newport News and 1,487 at Ingalls.

In addition, over 1,000 apprentices are enrolled in more than 27 crafts and advanced programs at our two shipbuilding segments.

From nuclear pipe welders to senior executives, we employ approximately 4,600 apprentice school alumni at Newport News and Ingalls.

Approximately 45% of our employees are covered by a total of nine collective bargaining agreements and one site stabilization agreement.

Newport News has two collective bargaining agreements covering represented employees, which expire in December 2022 and April 2024, and one that expired in November 2021, which covers

approximately 50% of Newport News employees.

Newport News has three collective bargaining agreements covering represented employees, which expire in April 2024, February 2027, and December 2027.

Newport News craft workers employed at the Kesselring Site near Saratoga Springs, New York are represented under an indefinite DoE site agreement.

Ingalls has five collective bargaining agreements covering represented employees, all of which expire in March 2026.

Approximately 15 Technical Solutions employees in Klamath Falls, Oregon are covered by a collective bargaining agreement that expires in June 2025.

We reached a tentative agreement with representatives of United Steelworkers (“USW”) Local 8888 (Newport News) members on a new labor agreement in November 2021, but the members of the bargaining unit declined to ratify the contract.

The Newport News and USW negotiation teams continued negotiations and reached a tentative agreement on another labor agreement in January 2022.

We expect the members of the bargaining unit to vote on the new agreement in the near future.

The USW Local 8888 members are continuing to work under the terms and conditions of the expired collective bargaining agreement, but the members may call for a strike, or we may declare a lock-out, upon 48 hours notice.

We cannot give any assurances that the tentative labor agreement will be ratified by the local bargaining unit or that a strike or lock-out will not occur.

Approximately 15 Mission Technologies employees in Klamath Falls, Oregon are covered by a collective bargaining agreement that expires in June 2025.

We have not experienced a work stoppage in more than 23 years at Newport News and more than 15 years at Ingalls.

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Recruitment, Training, and Workforce Development - Our three segments hire thousands of employees each year.

In 2021, we hired nearly 6,000 new employees.

To help us meet this large demand for talent, we have worked to create, develop, and maintain multiple talent pipelines.

One of the key components of our approach to workforce development is to “grow our own.” We operate two apprentice schools, one at Ingalls and one at Newport News.

In 2022, we hired over 7,500 new employees.

To help us meet this large demand for talent, we have created, developed, and maintain multiple talent pipelines.

One of the key components of our approach to workforce

development is to “grow our own.” We operate two apprentice schools, one at Ingalls and one at Newport News.

The Newport News Apprentice School was founded in 1919, and the Ingalls Apprentice School was founded in 1952.

The two apprentice schools combined have graduated over 14,250 graduates since their inceptions.

The schools are nationally renowned and are critical to training both our craft/trades and technical workforces, as well as developing the future leaders of our company.

The schools are nationally renowned and are critical to training both our craft/trades and technical workforce, as well as developing the future leaders of our company.

The Ingalls Apprentice School has partnered with the Mississippi Gulf Coast Community College to permit their apprentices to earn credits toward an associate’s degree.

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Working closely with state and local government leaders, we have successfully facilitated local, regional, and state-wide workforce development and education initiatives that include pre-K programs, high school trades programs/talent development labs, pre-hire trades/technical community college programs, interns/co-ops with colleges and universities, adult trades programs, veterans and military spouses training programs, and unemployed/underemployed training programs.

We view our workforce development process as a “leadership factory” and have developed a robust and effective succession planning process that ensures continuity in our leadership ranks.

We view our workforce development process critical to our success and have developed a robust and effective succession planning process that ensures continuity in our leadership ranks.

Since our founding in 2011, we have followed our succession plans 81% of the time when replacing a vacancy in an existing vice president position, and we have filled 82% of newly created vice president positions with internal hires.

See "Risk Factors" in Item 1A for further information regarding our human capital resources.

Environmental, Health & Safety (“EH&S”) - The health, safety, and well-being of our employees, together with protection of the environment in the communities in which we operate, is one of our core values and rooted in our culture across the enterprise.

We prioritize, manage, and carefully track safety performance and integrate sound environmental, safety, and health practices to make a meaningful difference in every facet of our operations, particularly at our shipbuilding segments and at DoE sites on which Technical Solutions segment employees work.

Safety goals are included in operational metrics for purposes of the Newport News and Ingalls compensation programs.

We also use a wide variety of training courses, pre-job “Take Five” crew talks, medical surveillance programs, and employee involvement efforts to keep our workforce focused on EH&S.

Safety goals are included in operational metrics under the Newport News and Ingalls compensation programs.

We also use a wide variety of training courses, pre-job “Take Five” crew talks, medical surveillance programs, and employee involvement to focus our workforce on EH&S.

At Newport News and Ingalls, a key component of our EH&S program is the utilization of health and safety teams, which are comprised of production and maintenance employees and front-line managers whose goal is to educate, engage, and empower our workforce toward a culture that strives to reduce injury, illness, and environmental impacts.

We employ programs focused on identifying, reporting, and abating near misses and other programs that aim to recognize, evaluate, and control hazards.

We track several metrics related to occupational injuries as one of several methods to monitor our safety performance.

We track multiple metrics related to occupational injuries as one of several methods to monitor our safety performance.

One of the key metrics is Total Case Rate (“TCR”), which is the number of Occupational Safety and Health Administration ("OSHA") recordable injuries per 100 equivalent employees.

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The LTCR and LWDR at Ingalls were 2.55 and 73.06, respectively, in 2022, 2.75 and 76.32, respectively, in 2021, and 2.53 and 56.37, respectively, in 2020.

In connection with the outbreak of COVID-19, the DoD designated Newport News and Ingalls as critical infrastructure industry.

Our production and support workforce therefore continued in-person work at our facilities to provide vital products and services to our government customers, while many of our employees in support and administrative functions effectively worked remotely from mid-March 2020 until our employees generally returned to our facilities in May 2021.

Prior to the COVID-19 pandemic, less than 400 of our employees regularly worked remotely, and at our peak, more than 11,300 employees were working remotely.

In response to the COVID-19 pandemic, we have implemented mitigation measures to protect our employees and customers and support appropriate health and safety protocols.

For example, we perform on-site COVID-19 testing, provide on-site vaccinations for employees, perform extensive cleaning and sanitation services for our shops, ships, and offices, re-engineered how some work was performed in order to support social distancing requirements, and implemented broad work-from-home initiatives for employees in our support and administrative functions.

Corporate Values - We operate on a set of values that are shared with all employees:

Integrity, Safety, Respect, Engagement, Responsibility, and Performance.

"Always doing the right thing" is an essential belief at HII.

That tone starts at the top and permeates through the culture of the company.

"Always doing the right thing" is an essential belief at HII, and the tone starts at the top and permeates through the culture of the company.

It is a set of core values, standards, and behaviors that guide employee commitment to the highest ethical standards and serves as the underlying framework for all of our human capital strategies.

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• Employee Resource Groups (“ERGs”) are a key component of our corporate culture and an important part of our diversity and inclusion strategy.

We currently sponsor 15 ERGs, which are employee-led and open to all employees, including:

African American Shipbuilders Association, Asian & Pacific Islander Shipbuilding Association, Generational Integration Focus Team, Hispanic Outreach & Leadership Alliance, Women in Shipbuilding Enterprise, Ingalls Shipbuilders Equality Alliance, Shipbuilders Together Realizing Inclusion, Diversity and Equality, and the Veterans Employee Resource Group.

• We have established D&I Councils at our Corporate Office and at each of our three segments, which provide strategic direction, guidance, and advocacy for our D&I initiatives and advancements.

We currently sponsor 20 ERGs, which represent 10 distinct affinity groups, are employee-led and open to all employees, and include:

African American Shipbuilders Association, Asian & Pacific Islander Shipbuilding Association, Hispanic Outreach & Leadership Alliance, Women in Shipbuilding Enterprise, Ingalls Shipbuilders Equality Alliance, Shipbuilders Together Realizing Inclusion, Diversity and Equality, Engaging Employees to Learn Improve Network and Knowledge Share, FitNNS, and the Veterans Employee Resource Groups.

• We have established D&I Councils, which provide strategic direction, guidance, and advocacy for our D&I initiatives and advancements.

These councils are led by senior executives and include high-performing employees and leaders from across our enterprise.

• We have a long history of participation in a number of annual national diversity conferences, including Black Engineer of the Year Awards, Society of Hispanic Engineers and Professionals, Society of Asian Scientists and Engineers, Society of Women Engineers, Great Minds in STEM, Hispanic Engineers National Achievement Award Conference, Women of Color STEM Conference, and the National Society of Black Engineers Convention.

• We have a long history of participation in a number of annual national diversity conferences, including Black Engineer of the Year Awards (BEYA), Society of Hispanic Engineers and Professionals (SHPE), Society of Asian Scientists and Engineers (SASE), and Women of Color STEM Conference.

These events provide recruitment, recognition, and development opportunities for our diverse workforce.

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We maintain a website at the following address:

www.huntingtoningalls.com.

References to our website in this report are provided as a convenience and do not constitute, and should not be viewed as, incorporation by reference of the information contained on, or available through, the website.

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We make this information available on our website free of charge as soon as reasonably practicable after we electronically file the information with, or furnish it to, the SEC.

In addition, we routinely post on the "Investors" page of our website news releases, announcements, and other statements about our business and results of operations, some of which may contain information that may be deemed material to investors.

In addition, we routinely post on the "Investors" page of our website (www.ir.hii.com) news releases, announcements, and other statements about our business and results of operations, some of which may contain information that may be deemed material to investors.

Therefore, we encourage investors to monitor the "Investors" page of our website and review the information we post on that page.

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• Health epidemics, pandemics and similar outbreaks, including the COVID-19 pandemic, and the impacts of vaccination mandates on our workforce;

• Our ability to effectively integrate the operations of Alion into our business;

• Our ability to attract, retain, and train a qualified workforce;

• Disruptions impacting global supply, including those attributable to the COVID-19 pandemic and those resulting from the ongoing conflict between Russia and Ukraine;

• Changes in key estimates and assumptions regarding our pension and retiree health care costs;

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business