0001628280-22-007409 | 10-K | XBRL Viewer

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Consolidated Statements of Earnings - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Earnings - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues:
Revenue	$ 2,879	$ 2,778	$ 2,714
Cost of revenues:
Total cost of revenues	(2,332)	(2,284)	(2,255)
Gross profit	547	494	459
General and administrative expenses	(293)	(283)	(277)
Amortization of intangibles	(9)	(9)	(9)
Other operating expenses, net	(9)	(21)	(10)
Operating earnings	236	181	163
Interest expense	(35)	(64)	(65)
Other, net	(1)	(5)	(3)
Earnings before taxes	200	112	95
Income tax provision	46	27	20
Net earnings	$ 154	$ 85	$ 75
Net earnings per share from common stock:
Basic earnings per share (in dollars per share)	$ 1.06	$ 0.59	$ 0.52
Diluted earnings per share (in dollars per share)	$ 1.06	$ 0.59	$ 0.52
Products
Revenues:
Revenue	$ 2,505	$ 2,412	$ 2,220
Cost of revenues:
Total cost of revenues	(2,067)	(2,000)	(1,904)
Services
Revenues:
Revenue	374	366	494
Cost of revenues:
Total cost of revenues	$ (265)	$ (284)	$ (351)

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net earnings	$ 154	$ 85	$ 75
Other comprehensive income (loss):
Foreign currency translation (loss) gain, net of income taxes	2	1	3
Net unrecognized gain (loss) on postretirement obligations, net of income taxes	10	22	(15)
Other comprehensive income (loss), net of income tax	12	23	(12)
Total comprehensive income	$ 166	$ 108	$ 63

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 240	$ 61
Accounts receivable, net	156	102
Contract assets	743	672
Inventories	205	247
Related party note receivable	0	115
Prepaid expenses	23	33
Other current assets	22	33
Total current assets	1,389	1,263
Noncurrent assets:
Property plant and equipment, net	364	355
Intangible assets, net	52	60
Goodwill	1,071	1,057
Deferred tax assets	56	87
Other noncurrent assets	137	134
Total noncurrent assets	1,680	1,693
Total assets	3,069	2,956
Current liabilities:
Short-term borrowings and current portion of long-term debt	41	53
Accounts payable	479	478
Contract liabilities	174	177
Other current liabilities	295	267
Total current liabilities	989	975
Noncurrent liabilities:
Long-term debt	352	374
Pension and other postretirement benefit plan liabilities	61	88
Other noncurrent liabilities	74	92
Total noncurrent liabilities	487	554
Shareholder's equity:
Preferred Stock,$0.01 par value: 10,000,000 shares authorized; none issued	0	0
Common stock, $0.01 par value: 300,000,000 shares authorized; 145,000,000 shares issued and outstanding	1	1
Additional paid-in capital	4,633	4,633
Accumulated deficit	(2,983)	(3,137)
Accumulated other comprehensive loss	(58)	(70)
Total shareholder's equity	1,593	1,427
Total liabilities and shareholder's equity	$ 3,069	$ 2,956

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Shareholder's equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, issued (in shares)	145,000,000	145,000,000
Common stock, outstanding (in shares)	145,000,000	145,000,000

Consolidated Statements of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating activities
Net earnings	$ 154	$ 85	$ 75
Adjustments to reconcile net earnings (loss) to net cash from operating activities:
Depreciation and amortization	58	53	51
Deferred income taxes	31	30	12
Other	0	3	3
Changes in assets and liabilities:
Accounts receivable	(54)	(35)	9
Contract assets	(71)	65	(166)
Inventories	42	(38)	(36)
Prepaid expenses	10	(14)	(2)
Other current assets	12	3	3
Other noncurrent assets	19	22	19
Defined benefit obligations	(13)	(9)	(1)
Other current liabilities	28	30	(11)
Other noncurrent liabilities	(36)	(14)	(16)
Accounts payable	1	(58)	156
Contract liabilities	(3)	2	61
Net cash provided by operating activities	178	125	157
Investing activities
Capital expenditures	(60)	(56)	(55)
Business acquisitions, net of cash acquired	(14)	0	(4)
Proceeds from sales of assets	0	5	8
Net repayments received (advances) on related party note receivable	115	(15)	(100)
Cost method investment	(2)	(4)	0
Net cash provided by (used in) investing activities	39	(70)	(151)
Financing activities
Net (decrease) increase in third party borrowings (maturities of 90 days or less)	(18)	(11)	16
Repayment of related party debt	(950)	(1,170)	(895)
Borrowings from related parties	930	1,105	880
Other	0	(4)	(2)
Net cash used in financing activities	(38)	(80)	(1)
Effect of exchange rate changes on cash and cash equivalents	0	1	1
Net increase (decrease) in cash and cash equivalents	179	(24)	6
Cash and cash equivalents at beginning of year	61	85	79
Cash and cash equivalents at end of period	240	61	85
Supplemental disclosure of non-cash investing and financing activities
Forgiveness of related party debt	0	300	0
Additions of property plant and equipment and long-term debt for a build-to-suit lease	$ 0	$ 49	$ 0

Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions	Total	Common stock	Additional paid- in capital	Accumulated other comprehensive loss	Accumulated deficit
Balance at beginning of period at Dec. 31, 2018	$ 956	$ 1	$ 4,333	$ (81)	$ (3,297)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	63			(12)	75
Balance at end of period at Dec. 31, 2019	1,019	1	4,333	(93)	(3,222)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	108			23	85
Forgiveness of related party debt	300		300
Balance at end of period at Dec. 31, 2020	1,427	1	4,633	(70)	(3,137)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total comprehensive income	166			12	154
Balance at end of period at Dec. 31, 2021	$ 1,593	$ 1	$ 4,633	$ (58)	$ (2,983)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

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+ Details

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies A.Organization Leonardo DRS, Inc., together with its wholly owned subsidiaries (hereinafter, “DRS,” “the Company,” “us,” “our,” or “we”) is a supplier of defense electronics products, systems and military support services. The Company is controlled by Leonardo S.p.A (hereinafter, “Leonardo S.p.A.,” “the Parent”), an Italian multi-national aerospace, defense and security company headquartered in Rome, Italy, through its direct sole ownership of Leonardo US Holding, Inc. (“US Holding”). US Holding is the direct and sole shareholder of the Company. DRS is a provider of defense products and technologies that are used across land, air, sea, space and cyber domains. Our diverse array of defense systems and solutions are offered to all branches of the U.S. military, major aerospace and defense prime contractors, government intelligence agencies, international military customers and industrial markets for deployment on a wide range of military platforms. We focus our capabilities in areas of critical importance to the U.S. military, such as sensing, electronic warfare (“EW”), network computing and communications, force protection and electrical power conversion and propulsion. These capabilities directly align with our three reportable segments: Advanced Sensor Technologies, Network Computing & Communications and Integrated Mission Systems. The U.S. Department of Defense (“DoD”) is our largest customer and accounts for approximately 86% and 84% of our total revenues as an end-user for the years ended December 31, 2021 and 2020, respectively. Specific international and commercial market opportunities exist within these segments and comprise approximately 14% and 16% of our total revenues for the years ended December 31, 2021 and 2020. Our three reportable segments reflect the way performance is assessed and resources are allocated by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). Advanced Sensor Technologies (“AST”) The AST segment provides electro-optical sensor technologies, laser systems, EW systems and intelligence and surveillance solutions to U.S. military and intelligence community customers. Major solutions include ground vehicle targeting and surveillance sensors, including electro-optical and advanced detection systems. Our soldier sensing applications include infrared imaging solutions and precision targeting systems. Our infrared focal plane array foundry produces small sized cryogenically cooled and uncooled infrared sensors. AST also provides aircraft training instrumentation equipment and high-performance radio frequency receivers and transceivers for U.S. and international customers. Our quantum cascade laser technology is being used in military and commercial medical applications. Network Computing & Communication (“NC&C”) The NC&C segment provides defense electronics solutions across all domains of warfare. Our technologies and products can be integrated into legacy and new military platforms, end-to-end network communication systems, satellite services and cyber solutions. We are also a provider of ruggedized computing platforms. For the U.S. Navy and its allies, we provide naval computing infrastructure, network and data distribution, radar and rugged naval control systems, which are present on all U.S. naval surface and subsurface combatant vessels. Our global communications network is a worldwide network of terrestrial and satellite bandwidth that ensures our customers’ data is secure and reliable. Integrated Mission Systems (“IMS”) The IMS segment provides critical force protection, vehicle integration, transportation and logistics, and electrical conversion and ship propulsion systems to the U.S. military. Our force protection systems protect service members and military assets from evolving and proliferating threats and include solutions for counter-unmanned aerial systems, short-range air defense systems, and active protection systems on ground vehicles. We have military transportation and logistics offerings and ground vehicle integration capabilities to support U.S. forces in a wide range of operational environments. For the U.S. Navy, we provide and support multi-generational power conversion and propulsion systems for our nation’s shipbuilding programs. Other The Company separately presents the unallocable costs associated with corporate functions and certain non-operating subsidiaries of the Company as Corporate & Eliminations. See Note 17: Segment Information for further information regarding our business segments. B.Basis of presentation The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of DRS, its wholly owned subsidiaries and its controlling interests. Interests in joint ventures that are controlled by the Company, or for which the Company is otherwise deemed to be the primary beneficiary, are consolidated. For joint ventures in which the Company does not have a controlling interest, but exerts significant influence, the Company applies the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to current year presentation. C.Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant of these estimates and assumptions relate to the recognition of contract revenues and estimated costs to complete contracts in process, recoverability of reported amounts of goodwill, long-lived assets and intangible assets, valuation of pensions and other postretirement benefits, the valuation of deferred tax assets and liabilities and the valuation of unrecognized tax benefits. Actual results could differ from these estimates. D.Revenue Recognition Our revenues consist of sales of products (tangible goods) and sales of services to customers. We recognize the majority of our revenue from contracts with customers using an over time, cost-to-cost method of accounting. On certain other contracts, primarily time and material (“T&M”) and cost-plus contracts, revenue is recognized using the right-to-invoice practical expedient as we are contractually able to bill our customer based on control transferred to the customer. See Note 2: Revenue from Contracts with Customers for additional information regarding revenue recognition. E.Cost of Revenues Cost of revenues includes materials, labor and overhead costs incurred in the manufacturing, design, and provision of products and services sold in the period as well as warranty costs. Material costs include raw materials, purchased components and sub-assemblies, outside processing and inbound freight costs. Labor and overhead costs consist of direct and indirect manufacturing costs, including wages and fringe benefits, operating supplies, depreciation and amortization, occupancy costs, and purchasing, receiving and inspection costs. F.Research and Development Expenses We conduct research and development (“R&D”) activities using our own funds (referred to as company-funded R&D or independent research and development (“IR&D”)) and under contractual arrangements with our customers (referred to as customer-funded R&D) to enhance existing products and services and to develop future technologies. R&D costs include basic research, applied research, concept formulation studies, design, development, and related test activities. IR&D costs are allocated to customer contracts as part of the general and administrative overhead costs and generally recoverable on our customer contracts with the U.S. Government. Customer-funded R&D costs are charged directly to the related customer contract. Substantially all R&D costs are charged to cost of revenues as incurred. Company-funded R&D costs charged to cost of revenues totaled $48 million, $41 million and $31 million in 2021, 2020 and 2019, respectively. G.Foreign Currency Significant transactions in foreign currencies are translated into U.S. dollars at the approximate prevailing rate at the time of the transaction. Foreign exchange transaction gains and losses in 2021, 2020 and 2019 were immaterial to the Company's results of operations. The operations of the Company's foreign subsidiaries are translated from the local (functional) currencies into U.S. dollars using weighted average rates of exchange during each monthly period. The rates of exchange at each balance sheet date are used for translating certain balance sheet accounts and gains or losses resulting from these translation adjustments are included in the accompanying Consolidated Balance Sheet as a component of other comprehensive income. H.Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits with banks or other short-term, highly liquid investments with original maturities of three months or less. I.Accounts Receivable Accounts receivable consist of amounts billed and currently due from customers. When events or conditions indicate that amounts outstanding from customers may become uncollectible, an allowance is estimated and recorded. See Note 3: Accounts Receivable for additional information regarding accounts receivable. J.Inventories Inventories are recorded at the lower of cost (determined by either actual, weighted average or first-in, first-out methods) or net realizable value, and include direct production costs as well as indirect costs, such as factory overhead. The net realizable value is calculated as the expected sales price in the course of normal operations net of estimated costs to finish and sell the goods. See Note 4: Inventories for additional information regarding inventories. K.Property, Plant and Equipment Property, plant and equipment is carried at cost less accumulated depreciation. Depreciation is calculated on the straight-line method. The estimated useful lives of plant, machinery and equipment and building and building improvements generally range from 3 to 10 years and 15 to 40 years, respectively. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheet, and the net gain or loss is included in the determination of net earnings. Maintenance and repairs are charged to operations as incurred and renewals and improvements are capitalized. See Note 5: Property, Plant and Equipment for additional information regarding property, plant and equipment. L.Goodwill Goodwill represents the excess purchase price paid to acquire a business over the fair value of net assets acquired. Goodwill is assigned to reporting units and is reviewed for impairment at the reporting unit level on an annual basis, or whenever changes in circumstances indicate that the carrying amount may not be recoverable. A reporting unit is an operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by the segment manager. Two or more components of an operating segment may be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Based upon the aggregation criteria the Company concluded it had seven reporting units at both December 31, 2021 and 2020. The annual impairment test is typically performed after completion of the Company's annual financial operating plan, which occurs as of December 31. The Company uses quantitative assessments and qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the optional qualitative assessment is performed (Step 0) and the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an additional quantitative fair value test (Step 1) is performed. When performing the Step 1 goodwill impairment test, we compare the fair values of each of our reporting units to their respective carrying values. In order to compute the fair value of our reporting units, we primarily use the income approach based on the discounted cash flows that each reporting unit expects to generate in the future, consistent with our operating plans. Determining the fair value of our reporting units requires significant judgments, including the timing and amount of future cash flows, long-term growth rates, determination of the weighted-average cost of capital and terminal value assumptions. If, based on the quantitative fair value test, the Company concludes that the carrying value of the reporting unit exceeds its fair value, the Company will recognize a goodwill impairment loss in an amount equal to that excess. The Company completed impairment tests as of December 31, 2021, 2020 and 2019 and no adjustment to the carrying value of goodwill was deemed to be necessary. See Note 7: Goodwill for additional information regarding goodwill. M.Long-Lived Assets and Acquired Identifiable Intangible Assets Identifiable intangible assets represent assets acquired as part of the Company's business acquisitions and include customer and program/contract-related assets. The values assigned to acquired identifiable intangible assets are determined as of the date of acquisition based on estimates and judgments regarding expectations for the estimated future after-tax cash flows from those assets over their lives, including the probability of expected future contract renewals and revenues, all of which are discounted to present value. The Company assesses the recoverability of the carrying value of its long-lived assets and intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. If there are any indicators of impairment present, the Company then evaluates the recoverability of the potentially impaired long-lived assets and acquired identifiable intangible assets based upon expectations of undiscounted net cash flows from such assets. If the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset or asset group, a loss is recognized for the difference between the estimated fair value and the carrying amount of the assets. Assets to be disposed of, including those of discontinued operations, are reported at the lower of the carrying amount or fair value, less the costs to sell. See Note 5: Property, Plant and Equipment and Note 8: Intangible Assets for additional information regarding long-lived assets and intangible assets. N.Derivative Financial Instruments The Company does not use derivative financial instruments for trading purposes. All derivative instruments are carried on the Consolidated Balance Sheet as either assets or liabilities at fair value. The classification of gains and losses resulting from changes in the fair values of derivatives depends on the intended use of the derivative and its resultant designation. The Company had no significant derivative or hedging instruments during the years ended December 31, 2021, 2020 or 2019. O.Pension and Other Postretirement Benefits The obligations for the Company's pension plans and postretirement benefit plans and the related annual costs of employee benefits are calculated based on several long-term assumptions, including discount rates for employee benefit liabilities, rates of return on plan assets, expected annual rates of salary increases for employee participants in the case of pension plans and expected annual increases in the costs of medical and other health care benefits in the case of postretirement benefit plans. These long-term assumptions are subject to revision based on changes in interest rates, financial market conditions, expected versus actual returns on plan assets, participant mortality rates and other actuarial assumptions, including future rates of salary increases, benefit formulas and levels, and rates of increase in the costs of benefits. Changes in these assumptions, if significant, can materially affect the amount of annual net periodic benefit costs recognized in the Company's results of operations from one year to the next, the liabilities for the pension plans and postretirement benefit plans and the Company's annual cash requirements to fund these plans. See Note 12. Pension and Other Postretirement Benefits for further information regarding our pension and postretirement plans. P.Income Taxes We and US Holding have entered into a Tax Allocation Agreement (“Tax Allocation Agreement”), dated as of November 16, 2020, with members of an affiliated group, as defined in Section 1504(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Tax Code”), members of one or more consolidated, combined, unitary or similar state tax groups and additional parties who are part of an “expanded affiliated group” for certain tax purposes. The agreement provides for the method of computing and allocating the consolidated U.S. federal tax liability of the affiliated group among its members and of allocating any state group tax liabilities among the state members for the taxable year ending December 31, 2021 and each subsequent year in which the parties are members of a group (whether federal or state). The agreement also provides for reimbursement of US Holding and/or DRS for payment of such tax liabilities, for compensation of any member for use of its “net operating loss” or “tax credits” in arriving at such tax liabilities and the allocation and payment of any refund arising from a carryback of net operating losses or tax credits from subsequent taxable years. Under the agreement, the parties have agreed to calculate and allocate their respective tax liabilities and other tax attributes for taxable years beginning with the first consolidated taxable year that included DRS (i.e., the taxable year ended December 31, 2008) as if the agreement was then in effect. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Income taxes as presented attribute deferred income taxes of US Holding to DRS in a manner that is systematic, rational and consistent with the asset and liability method and the governing Tax Allocation Agreement which allocates the tax liability amongst the entities, including DRS. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of DRS’ assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. In general, the taxable income of DRS is included in the consolidated U.S. federal and state tax returns of US Holding. Where applicable, US Holding’s current portion of U.S. federal income taxes payable were offset against DRS’ net operating loss carryforwards in the period the related tax expense was recorded. Consequently, our net operating loss carryforwards are deemed to have been settled with US Holding in each year in an amount commensurate with the carrying value of the tax effected net operating loss utilized. If management determines that some portion or all of a deferred tax asset is not “more likely than not” to be realized, a valuation allowance is recorded as a component of the income tax provision to reduce the deferred tax asset to the amounts expected to be realized. In determining whether the Company’s deferred tax assets are realizable, management considers all evidence, both positive and negative, including the history of financial reporting earnings, existing taxable temporary differences and their projected reversals, as well as projected future income and tax planning strategies. We believe it is more likely than not that we will generate sufficient taxable income in future periods to realize our deferred tax assets, subject to the valuation allowances recognized. The Company assesses its tax positions for all periods open to examination by tax authorities based on the latest available information. Those positions are evaluated to determine whether they will more likely than not be sustained upon examination by the relevant taxing authorities. Liabilities for unrecognized tax benefits are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. These unrecognized tax benefits are recorded as a component of income tax expense. Interest and penalties related to unrecognized tax benefits are not material. See Note 10: Income Taxes for additional information regarding income taxes. Q.Earnings Per Share Basic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during each period. The computation of diluted EPS includes the dilutive effect of outstanding stock-based compensation awards, only in periods in which such effect would have been dilutive for the period. In February 2021, the Company completed a forward stock split of 1-for-1,450,000 shares of common stock. The consolidated financial statements have been retroactively adjusted as necessary to reflect the forward stock split for all periods presented. There were 100 shares and 145.00 million basic and diluted common shares outstanding before and after the forward stock split, respectively, for all periods presented. R.Fair Value Measurements Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant on the measurement date. We are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three hierarchical levels used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are directly or indirectly observable. Level 3 — Significant inputs to the valuation model are unobservable. In certain instances, fair value is determined through information obtained from third parties using the latest available market data. In obtaining such data from third parties, we have evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value. The Company categorizes plan assets for disclosure purposes in accordance with this fair value hierarchy. Certain plan investments are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient and are therefore not categorized as Level 1, 2, or 3. NAV is defined as the total value of the fund divided by the number of the fund’s shares outstanding. See Note 12: Pension and Other Postretirement Benefits for further information regarding our pension and postretirement plans. S.Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities. Financial instruments are reported in the Consolidated Balance Sheet at carrying value, which other than the 7.5% Term loan due November 30, 2023, approximate fair value. See Note 11: Debt for further information regarding our debt. T.Acquisitions, Investments, Variable Interest Entities and Divestitures Acquisitions Our consolidated financial statements include the operations of acquired businesses from the date of acquisition. We account for acquired businesses using the acquisition method of accounting, which requires that any assets acquired and liabilities assumed be measured at their respective fair values on the acquisition date. The accounting for business combinations requires the Company to make significant judgments and estimates. Any excess of the fair value of consideration transferred over the assigned values of the net assets acquired is recognized as goodwill. During the third quarter of 2021 the Company acquired substantially all the assets of Ascendant Engineering Solutions (AES), an advanced gimbal producer located in Austin, TX. The purchase closed on July 28, 2021 for a purchase price of $11 million with an additional $5 million payable upon the achievement of certain financial and operational targets. AES designs, develops and manufactures high-performance, stabilized, multi-sensor gimbal systems for the growing market of Group 1, 2 and 3 unmanned aerial systems (UAS) serving several branches of the DoD. The company is focused on gimbal payload opportunities in strategic U.S. government programs including those intended to counter current and next-generation anti-access and area-denial systems. We believe this acquisition enables the integration of our own Electro-Optical and Infrared systems with the gimbals of AES and is a strategic investment, offering an integrated solution for our customers in the market for lightweight military platforms including small unmanned aerial systems. The acquisition has been accounted for as a business combination and has been integrated into our Advanced Sensor Technologies segment. Investments Investments where we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in other noncurrent assets on our Consolidated Balance Sheet. Significant influence typically exists if we have a 20% to 50% ownership interest in the investee. Under this method of accounting, our share of the net earnings or losses of the investee is included in operating profit in other income, net on our Consolidated Statements of Earnings (Loss) since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is therefore recorded during the current period. See Note 13: Equity Method Investments for further information regarding our equity method investments. The Company’s cost method investment consists of an investment in a private company in which we do not have the ability to exercise significant influence over its operating and financial activities. Management evaluates this investment for possible impairment quarterly. Variable Interest Entities The Company occasionally forms joint ventures and/or enters into arrangements with special purpose limited liability companies for the purpose of bidding and executing on specific projects. The Company analyzes each such arrangement to determine whether it represents a variable interest entity (“VIE”). If the arrangement is determined to be a VIE, the Company assesses whether it is the primary beneficiary of the VIE and if it is, consequently required to consolidate the VIE. The Company did not have any investment in VIEs as of December 31, 2021 or 2020. U.New Accounting Pronouncements Recently Adopted Accounting Pronouncements Changes to Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. Specifically, the amendment removes disclosure requirements for amounts classified in accumulated other comprehensive income expected to be recognized over the next year and the effects of a one-percentage-point change in the assumed health care cost trend rate on service cost, interest cost and the benefit obligation for postretirement benefits. The amendment also requires additional disclosure around weighted-average interest crediting rates for cash balance plans, a narrative description of the reasons for significant gains and losses, and an explanation of any other significant changes in the benefit obligation or plan assets. The adoption of the standard as of January 1, 2021 did not have a material impact on our consolidated financial statements. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which removes certain exceptions to the general principles in Topic 740 for: recognizing deferred taxes for investments, performing intra-period allocations and calculating taxes in interim periods. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for fiscal years beginning after December 15, 2020. The adoption of the standard as of January 1, 2021 did not have a material impact on our consolidated financial statements. Accounting Guidance Issued but Not Yet Adopted as of December 31, 2021: Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which requires certain disclosures to be included with respect to the types of assistance, the accounting for the assistance as well as the effect on the financial statements of the assistance. The purposes of the ASU is to increase transparency and eliminate disparity of accounting for and reporting of the receipt of government assistance. The standard is effective for fiscal periods beginning after December 15, 2021. The Company does not expect the adoption to have a material impact on our disclosures.

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with CustomersThe Company recognizes revenue for each separately identifiable performance obligation in a contract representing an obligation to transfer a distinct good or service to a customer. In most cases, goods and services provided under the Company’s contracts are accounted for as single performance obligations due to the complex and integrated nature of our products and services. These contracts generally require significant integration of a group of goods and/or services to deliver a combined output.

In some contracts, the Company provides multiple distinct goods or services to a customer. In those cases, the Company accounts for the distinct contract deliverables as separate performance obligations and allocates the transaction price to each performance obligation based on its relative standalone selling price, which is generally estimated using cost plus a reasonable margin. We classify revenues as products or services on our Consolidated Statements of Earnings based on the predominant attributes of the performance obligations. While the Company provides warranties on certain contracts, we typically do not provide for services beyond standard assurances and therefore do not consider warranties to be separate performance obligations. Typically we enter into three types of contracts: fixed-price contracts, cost-plus contracts and T&M contracts (cost-plus contracts and T&M contracts are aggregated below as flexibly priced contracts). The majority of our total revenues are derived from fixed-price contracts; refer to the revenue disaggregation disclosures that follow.

For fixed-price contracts, customers agree to pay a fixed amount, negotiated in advanced for a specified scope of work.

For cost-plus contracts typically we are reimbursed for allowable or otherwise defined total costs (defined as cost of revenues plus allowable general and administrative expenses) incurred, plus a fee. The contracts may also include incentives for various performance criteria, including quality, timeliness and cost-effectiveness. In addition, costs are generally subject to review by clients and regulatory audit agencies, and such reviews could result in costs being disputed as non-reimbursable under the terms of the contract.

T&M contracts provide for reimbursement of labor hours expended at a contractual fixed labor rate per hour, plus the actual costs of material and other direct non-labor costs. The fixed labor rates on T&M contracts include amounts for the cost of direct labor, indirect contract costs and profit.

Estimating the transaction price for an arrangement requires judgment and is based on expected results which are determined using the Company’s historical data. We estimate that the revenue that we expect to be entitled to receive from a customer to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur.

Revenue from contracts with customers is recognized when the performance obligations are satisfied through the transfer of control over the good or service to the customer, which may occur either over time or at a point in time.

Revenues for the majority of our contracts are measured as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion (the "cost-to-cost method"). We believe this is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Due to the long-term nature of many of our contracts, developing the estimated total cost at completion and total transaction price often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance and the risk and impact of delayed performance.

After establishing the estimated total cost at completion, we follow a standard Estimate at Completion (“EAC”) process in which we review the progress and performance on our ongoing contracts at least quarterly. Adjustments to original estimates for a contract's revenue, estimated costs at completion and estimated profit or loss often are required as work progresses under a contract, as experience is gained and as more information is obtained, even though the scope of work required under the contract may not change and are also required if contract modifications occur. When adjustments in estimated total costs at completion or in estimated total transaction price are determined, the related impact on revenue and operating income are recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Any anticipated losses on these contracts are fully recognized in the period in which the losses become evident.

EAC adjustments had the following impacts to revenue for the periods presented:


	Year Ended December 31,
(Dollars in millions)	2021			2020			2019
Revenue	$	(34)		$	(77)		$	(55)
Total % of Revenue	1		%	3		%	2		%

The impacts noted above are attributed primarily to changes in our firm-fixed-price development type programs. As changes happen in the design required to achieve contractual specifications, those changes often result in the programs’ estimate and related profitability. The reductions to revenue for the years ended December 31, 2021, 2020 and 2019 were related to certain masted surveillance and submarine electric propulsion programs within our IMS segment, solider sensing programs within our AST segment and adjustments to the measurement of variable consideration related to certain requests for equitable adjustment with the U.S. Navy within our NC&C segment.

Conversely, if the requirements for the recognition of contracts over time are not met, revenue is recognized at a point in time when control transfers to the customer, which is generally upon transfer of title. In such cases, the production that is in progress and costs that will be recognized at a future point in time are reported within "inventories".

Costs to obtain a contract are incremental direct costs incurred to obtain a contract with a customer, including sales commissions and dealer fees, and are capitalized if material. Costs to fulfill a contract include costs directly related to a contract or specific anticipated contract (e.g., certain design costs) that generate or enhance our ability to satisfy our performance obligations under these contracts. These costs are capitalized to the extent they are expected to be recovered from the associated contract.

Contract Assets and Liabilities

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities.


	Year Ended December 31,
(Dollars in millions)	2021		2020
Contract assets	$	743	$	672
Contract liabilities	174		177
Net contract assets	$	569	$	495

Revenue recognized in 2021 and 2020 that was included in the contract liability balance at the beginning of each year was $108 million and $104 million, respectively.

The change in the balances of the Company’s contract assets and liabilities primarily results from timing differences between revenue recognition and customer billings and/or payments.

Contract assets related to amounts withheld by customers until contract completion are not considered a significant financing component of our contracts because the intent is to protect the customers from our failure to satisfactorily complete our performance obligations. Payments received from customers in advance of revenue recognition (contract liabilities) are not considered a significant financing component of our contracts because they are utilized to pay for contract costs within a one-year period or are requested by us to ensure the customers meet their payment obligations.

Value of Remaining Performance Obligations

The value of remaining performance obligations, which we also refer to as total backlog, includes the following components:

•Funded - Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts.

•Unfunded - Unfunded backlog represents the revenue value of firm orders for products and services under existing contracts for which funding has not yet been appropriated less funding previously recognized on these contracts.

The following table summarizes the value of our backlog at December 31, 2021 and 2020:


Backlog:	Year Ended December 31,
(Dollars in millions)	2021		2020
Funded	$	2,510	$	2,847
Unfunded	351		444
Total Backlog	$	2,861	$	3,291

We expect to recognize approximately 62.5% of our December 31, 2021 backlog as revenue over the next 12 months, with the remainder to be recognized thereafter.

Disaggregation of Revenue

AST: AST revenue is primarily derived from U.S. government development and production contracts and is generally recognized over time using the cost-to-cost method. We disaggregate AST revenue by geographical region, customer relationship and contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of AST revenue and cash flows are affected by economic factors:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Revenue by Geographical Region
United States	$	880	$	821	$	711
International	76		107		58
Intersegment Sales	14		12		12
Total	$	970	$	940	$	781
Revenue by Customer Relationship
Prime contractor	$	505	$	443	$	372
Subcontractor	451		485		397
Intersegment Sales	14		12		12
Total	$	970	$	940	$	781
Revenue by Contract Type
Firm Fixed Price	$	822	$	813	$	614
Flexibly Priced(1)	134		115		155
Intersegment Sales	14		12		12
Total	$	970	$	940	$	781

________________

(1)Includes revenue derived from time-and-materials contracts.

NC&C: NC&C revenue is primarily derived from U.S. government development and production contracts and is generally recognized over time using the cost-to-cost method. We disaggregate NC&C revenue by geographical region, customer relationship and contract type. We believe these categories best depict how the nature, amount, timing and uncertainty of NC&C revenue and cash flows are affected by economic factors:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Revenue by Geographical Region
United States	$	928	$	942	$	988
International	37		75		41
Intersegment Sales	7		9		24
Total	$	972	$	1,026	$	1,053
Revenue by Customer Relationship
Prime contractor	$	704	$	620	$	655
Subcontractor	261		397		374
Intersegment Sales	7		9		24
Total	$	972	$	1,026	$	1,053
Revenue by Contract Type
Firm Fixed Price	$	845	$	903	$	956
Flexibly Priced(1)	120		114		73
Intersegment Sales	7		9		24
Total	$	972	$	1,026	$	1,053

________________

(1)Includes revenue derived from time-and-materials contracts.

IMS: IMS revenue is primarily derived from U.S. government development and production contracts and is generally recognized over time using the cost-to-cost method. We disaggregate IMS revenue by geographical region, customer relationship and contract type. We believe these categories best depict

how the nature, amount, timing and uncertainty of IMS revenue and cash flows are affected by economic factors:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Revenue by Geographical Region
United States	$	913	$	792	$	895
International	45		41		21
Intersegment Sales	1		1		1
Total	$	959	$	834	$	917
Revenue by Customer Relationship
Prime contractor	$	174	$	283	$	442
Subcontractor	784		550		474
Intersegment Sales	1		1		1
Total	$	959	$	834	$	917
Revenue by Contract Type
Firm Fixed Price	$	831	$	692	$	763
Flexibly Priced(1)	127		141		153
Intersegment Sales	1		1		1
Total	$	959	$	834	$	917

________________

(1)Includes revenue derived from time-and-materials contracts.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
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-Subparagraph (d)
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Accounts Receivable

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Accounts Receivable

Accounts receivable represent amounts billed and currently due from customers. Payment is typically received from our customers either at periodic intervals (e.g., biweekly, or monthly) or upon achievement of contractual milestones.

Accounts receivable consist of the following:


	December 31,
(Dollars in millions)	2021		2020
Accounts receivable	$	157	$	104
Less allowance for doubtful accounts	(1)		(2)
Accounts receivable, net	$	156	$	102

The Company maintains certain agreements with financial institutions to sell certain trade receivables. Receivables are derecognized in their entirety when sold, and the Company’s continuing involvement in the sold receivables is limited to their servicing, for which the Company receives a fee commensurate with the service provided. Pursuant to the servicing agreements, the Company collected approximately $15 million and $27 million at December 31, 2021 and 2020, respectively, of these sold receivables that had not yet been remitted to the financial institutions. These unremitted amounts collected on behalf of the financial institutions are included within short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheet.

Inventories

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories consists of the following:


	December 31,
(Dollars in millions)	2021		2020
Raw materials	$	43	$	52
Work in progress	161		193
Finished goods	1		2
Total	$	205	$	247

Property, Plant, and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment by major asset class consists of the following:


	December 31,
(Dollars in millions)	2021		2020
Land, buildings and improvements	$	312	$	294
Plant and machinery	191		186
Equipment and other	298		276
Total property, plant and equipment, at cost	801		756
Less accumulated depreciation	(437)		(401)
Total property, plant and equipment, net	$	364	$	355

Depreciation expense related to property, plant and equipment was $49 million, $44 million and $42 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Land, buildings and improvements include assets under finance leases in the amount of $104 million and $108 million as of December 31, 2021 and 2020, respectively. See Note 9: Leases for additional information.

As of December 31, 2021, the Company accounted for our manufacturing facility in Menomonee Falls, WI as a build-to-suit lease with a failed sale-leaseback and is included in the Land, building, and improvements in the above table. See Note 11: Debt for additional information.

Other Liabilities

12 Months Ended

Dec. 31, 2021

Other Liabilities Disclosure [Abstract]

Other Liabilities

A summary of significant other liabilities by balance sheet caption follows:


	December 31,
(Dollars in millions)	2021		2020
Salaries, wages and accrued bonuses	$	70	$	61
Fringe benefits	74		71
Litigation	10		10
Restructuring costs	4		1
Provision for contract losses	48		44
Operating lease liabilities	24		22
Other(1)	65		58
Total other current liabilities	$	295	$	267
Retirement benefits	$	—	$	—
Operating lease liabilities	$	73	$	81
Other(2)	1		11
Total other noncurrent liabilities	$	74	$	92

________________

(1)Consists primarily of taxes payable, environmental remediation reserves and warranty reserves. See Note 15: Commitments and Contingencies for more information regarding the warranty provision.

(2)Consists primarily of workers’ compensation liabilities and certain payroll taxes deferred under the CARES Act.

Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill by reportable segment are as follows:


(Dollars in millions)	AST		NC&C		IMS		Total
Balance at January 1, 2020 (1)	$	363	$	275	$	419	$	1,057
Acquisitions	—		—		—		—
Balance at December 31, 2020	363		275		419		1,057
Acquisitions	14		—		—		14
Balance at December 31, 2021	$	377	$	275	$	419	$	1,071

________________

(1)Goodwill is reported net of $1,313 million, $1,049 million and $606 million of accumulated impairments as of January 2020 for the AST, NC&C and IMS segments, respectively.

Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Other intangible assets mainly refer to the fair value of existing customer contractual relationships attributable to the acquired business and patents which are being amortized over their respective lives. The fair value of intangible assets typically is determined, as of the date of acquisition, based on estimates and judgments regarding expectations for the estimated future after-tax earnings and cash flows (including cash flows for working capital) arising from backlog and follow-on sales to the customer over their estimated lives, including the probability of expected future contract renewals and sales, less a contributory assets charge, all of which is discounted to present value.

The following disclosure presents certain information regarding the Company's intangible assets as of December 31, 2021 and 2020. All intangible assets are being amortized over their estimated useful lives, as indicated below, with no estimated residual values.


	December 31, 2021						December 31, 2020
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	957	$	(908)	$	49	$	957	$	(899)	$	58
Patents and licenses	9		(6)		3		7		(5)		2
Total intangible assets	$	966	$	(914)	$	52	$	964	$	(904)	$	60

Amortization expense related to intangible assets was $9 million, $9 million, and $9 million respectively, for the years ended December 31, 2021, 2020 and 2019.

Customer relationships are amortized on a straight-line basis over their estimated useful lives of 10 to 15 years. Patents and licenses are amortized on a straight-line basis over their estimated useful lives of 5 to 10 years. The estimated annual amortization expense related to intangible assets for the subsequent five years is as follows:


(in millions) Year Ending December 31,	Estimated Annual Amortization
2022	$	9
2023	9
2024	9
2025	9
2026	9

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

The Company leases various real estate for manufacturing facilities, administrative offices and warehouses under both finance leases and operating leases. In addition, the Company leases vehicles, machinery and office equipment under operating leases. We determine whether our contracts are or contain a lease at the inception of such arrangements. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

ROU assets and lease liabilities are recorded on the Consolidated Balance Sheet as of the lease commencement based on the present value of the future lease payments over the lease term. As our leases do not generally explicitly state the discount rate implicit in the lease, we use our incremental borrowing rate, which is determined based on the rate of interest that the Company would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term as of the lease commencement date. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes lease payments made at or before the commencement date of the lease, less any lease incentives received. The remaining lease cost is amortized over the remaining life of the lease on a straight-line basis. We evaluate ROU assets for impairment consistent with the treatment of other long-lived assets.

Some of our leases include options to extend the lease terms or to terminate the lease early. We include the impact of the option in the determination of the ROU assets and liabilities when it is reasonably certain that we will exercise the option. Our lease payments are largely fixed, but may include variable payments that do not depend on an index or rate, such as usage-based amounts, and are recorded as a lease expense in the period incurred. The Company’s lease agreements do not contain any material residual value guarantees or restrictive covenants.

In 2019, we have entered into a sale-leaseback transaction related to a facility in Milwaukee, WI. We have analyzed the transaction and determined the criteria to recognize a sale has been met and we have derecognized the related assets. The arrangement does not contain a repurchase option or other substantive obligations related to the property. Further, we have determined that the underlying lease meets the criteria to be classified as an operating lease. As a result, we have recognized an immaterial loss related to the transaction.

As of December 31, 2021, the Company has not entered into any significant leases that have not yet commenced. We elected not to recognize a ROU asset and lease liability for leases with an initial term of 12 months or less. These leases are expensed on a straight-line basis over the lease term. The Company elected the practical expedient to not separate lease and non-lease components and to instead account for them as a single component. We have elected this practical expedient for all classes of assets.

Lease Cost

The Company’s total lease cost consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020
Operating lease cost(1)	$	26	$	24
Finance lease cost(2):
Amortization of right-of-use assets	8		7
Interest on lease liabilities	5		5
Total lease cost	$	39	$	36

________________

(1)Operating lease expense is included within cost of products, cost of services or general and administrative expenses, dependent upon the nature and use of the ROU asset, in the Company’s Consolidated Statements of Earnings Operating lease cost includes short-term leases of approximately $3 million and $5 million and an insignificant amount of variable lease cost for both 2021 and 2020.

(2)Finance lease expense is recorded as depreciation and amortization expense within cost of products, cost of services or general and administrative expenses, dependent upon the nature and use of the ROU asset and interest expense, net in the Company’s Consolidated Statements of Earnings.

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases is as follows:


	December 31,
(Dollars in millions)	2021		2020
ROU assets
Operating leases(1)	$	84	$	88
Finance leases(2)	104		108
Total leased assets	$	188	$	196
Liabilities
Current lease liabilities:
Operating(1)	$	24	$	22
Finance(2)	6		5
Noncurrent lease liabilities:
Operating(1)	73		81
Finance(2)	107		109
Total lease liabilities	$	210	$	217

________________

(1)Operating lease assets are included within other noncurrent assets and operating lease liabilities are included within other current liabilities (current portion) and other noncurrent liabilities (noncurrent portion) in the Company’s Consolidated Balance Sheet.

(2)Finance lease assets are included within property, plant and equipment, net and finance lease liabilities are included within short-term borrowings and current portion of long-term debt (current portion) and long-term debt (noncurrent portion) in the Company’s Consolidated Balance Sheet.

Supplemental Cash Flow Information

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
(Dollars in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	27	$	27
Operating cash flows from finance leases	5		5
Financing cash flows from finance leases	5		4
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	18		16
Finance leases	4		46

Weighted Average Lease Term and Discount Rate

Lease terms and discount rates related to leases are as follows:


	December 31,
	2021		2020
Weighted-average remaining lease term:
Operating leases	5 years		5 years
Finance leases	15 years		16 years
Weighted-average discount rate:
Operating leases	4.3	%	4.4	%
Finance leases	4.6	%	4.5	%

Maturity of Lease Liabilities:

As of December 31, 2021, future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows:


(Dollars in millions)	Operating Leases		Finance Leases
Year Ending December 31,
2022	$	27	$	11
2023	25		11
2024	19		11
2025	12		10
2026	9		10
Thereafter	14		104
Total lease payments	106		157
Less: imputed interest	9		44
Present value of lease liabilities	97		113
Less: current maturities	24		6
Long-term lease obligations	$	73	$	107

Leases

Lease Cost

The Company’s total lease cost consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020
Operating lease cost(1)	$	26	$	24
Finance lease cost(2):
Amortization of right-of-use assets	8		7
Interest on lease liabilities	5		5
Total lease cost	$	39	$	36

________________

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases is as follows:


	December 31,
(Dollars in millions)	2021		2020
ROU assets
Operating leases(1)	$	84	$	88
Finance leases(2)	104		108
Total leased assets	$	188	$	196
Liabilities
Current lease liabilities:
Operating(1)	$	24	$	22
Finance(2)	6		5
Noncurrent lease liabilities:
Operating(1)	73		81
Finance(2)	107		109
Total lease liabilities	$	210	$	217

________________

Supplemental Cash Flow Information

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
(Dollars in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	27	$	27
Operating cash flows from finance leases	5		5
Financing cash flows from finance leases	5		4
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	18		16
Finance leases	4		46

Weighted Average Lease Term and Discount Rate

Lease terms and discount rates related to leases are as follows:


	December 31,
	2021		2020
Weighted-average remaining lease term:
Operating leases	5 years		5 years
Finance leases	15 years		16 years
Weighted-average discount rate:
Operating leases	4.3	%	4.4	%
Finance leases	4.6	%	4.5	%

Maturity of Lease Liabilities:

As of December 31, 2021, future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows:


(Dollars in millions)	Operating Leases		Finance Leases
Year Ending December 31,
2022	$	27	$	11
2023	25		11
2024	19		11
2025	12		10
2026	9		10
Thereafter	14		104
Total lease payments	106		157
Less: imputed interest	9		44
Present value of lease liabilities	97		113
Less: current maturities	24		6
Long-term lease obligations	$	73	$	107

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Earnings (loss) before taxes consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Earnings before taxes
Domestic	$	203	$	112	$	89
Foreign	(3)		—		6
Total	$	200	$	112	$	95

Income tax provision (benefit) consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Current:
Federal	$	(1)	$	—	$	—
State	—		3		2
Foreign	1		2		1
	—		5		3
Deferred:
Federal	43		24		17
State	5		—		—
Foreign	(2)		(2)		—
	46		22		17
Total	$	46	$	27	$	20

The reconciliation from the statutory federal income tax rate to our effective income tax rate follows:


	Year Ended December 31,
	2021		2020		2019
Statutory federal rate	21.0	%	21.0	%	21.0	%
State rate, net of federal benefit	3.6	%	2.3	%	0.5	%
Foreign rate differential	(0.2)	%	0.5	%	0.5	%
Research & development credit, net of reserves	(0.2)	%	(0.7)	%	(2.3)	%
Nondeductible expenses	0.9	%	0.4	%	0.7	%
Global intangible low taxed income	—	%	0.2	%	1.0	%
Change in valuation allowance	(1.4)	%	(2.5)	%	0.2	%
Change in tax reserves	(0.4)	%	2.2	%	0.2	%
Other	(0.3)	%	0.7	%	(0.7)	%
Effective tax rate	23.0	%	24.1	%	21.1	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 is as follows:


	December 31,
(Dollars in millions)	2021		2020
Deferred tax assets:
Federal net operating losses	$	5	$	18
State net operating losses	16		21
Tax credit carryforwards	21		23
Accrued compensation and benefits	23		26
Contract liabilities	21		20
Accrued expenses	5		5
Pension and post-retirement plans	18		24
Inventory capitalization	5		8
Other	5		8
Disallowed interest	1		1
Total gross deferred tax assets	120		154
Less valuation allowance	10		11
Deferred tax assets	110		143
Deferred tax liabilities:
Intangible assets	(41)		(44)
Fixed assets	(12)		(11)
Other	(1)		(1)
Deferred tax liabilities	(54)		(56)
Net deferred tax asset	$	56	$	87

Our deferred tax balance associated with our retirement benefit plans includes a deferred tax asset of $11 million and $14 million as of December 31, 2021 and 2020 respectively, that are recorded in accumulated other comprehensive earnings to recognize the funded status of our retirement plans. See‘
Note 12: Pension and Other Postretirement Benefits for additional details. As of December 31, 2021 and 2020 the Company had U.S. federal net operating loss carryforwards of $28 million and $131 million, respectively, which we anticipate we will be able to apply prior to their expiration which commences in 2025. The annual utilization of approximately $28 million of certain our Federal net operating losses is subject to limitations under section 382 of the Internal Revenue Code. As of December 31, 2021 and

2020 we had apportioned state net operating loss carryforwards of $239 million and $327 million, respectively, which are associated with jurisdictions in which we currently file and the Company expects to utilize prior to expiration except for those for which we have recorded a valuation allowance. We have federal tax credit carryforwards that commence expiring in 2032, which we anticipate being able to utilize prior to their expiration.

Tax Uncertainties

The Company maintains reserves for uncertain tax positions related to unrecognized income tax benefits. These reserves involve considerable judgment and estimation and are evaluated by management at least quarterly based on the best information available. The Company’s total liability for unrecognized tax benefits as of December 31, 2021, 2020 and 2019 was approximately $22 million, $25 million and $18 million, respectively; all of which will impact the effective tax rate when recognized. Approximately $15 million, $22 million and $16 million as of December 31, 2021, 2020 and 2019, respectively, have been recorded within (and as an offset to) deferred tax assets. In addition, the Company does not believe there are any tax positions for which it is reasonably possible that the unrecognized tax benefits will vary significantly over the next 12 months. The table below summarizes the activity associated with our unrecognized tax benefits:


(Dollars in millions)	2021		2020		2019
Balance at January 1,	$	25	$	18	$	14
Increase related to prior year tax positions	—		3		3
Increase related to current year tax positions	1		4		1
Decreases related to prior year tax positions	(4)		—		—
Lapse of statute of limitations	—		—		—
Settlements with taxing authorities	—		—		—
Balance at December 31,	$	22	$	25	$	18

The Company is subject to U.S. federal income tax as well as income tax of multiple state and foreign jurisdictions. The Company has substantially concluded all U.S. federal income tax matters for years through the tax year ended December 31, 2016 except as it relates to the net operating loss carryforward and tax credit carryforwards. Substantially all material state and local matters have been concluded for years through the tax year ended December 31, 2015. The Company has substantially concluded all material tax matters in foreign jurisdictions for years through the tax years ending during 2016.

As of December 31, 2021, the Company has accumulated undistributed earnings generated by our foreign subsidiaries and most have been taxed in the U.S. as a result of the Tax Cuts and Jobs Act of 2017 (the “TCJA”). The TCJA allows for a dividend received deduction for repatriation of foreign earnings. We intend to indefinitely reinvest these earnings. Should the Company’s undistributed earnings from its investment in non‐U.S. subsidiaries be distributed in the future in the form of dividends or otherwise, the Company may be subject to foreign and domestic income taxes and withholding taxes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 17
-Subparagraph (b)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt

The Company’s debt consists of the following:


	December 31,
(Dollars in millions)	2021		2020
7.5% Term loan due November 30, 2023(1)	139		139
5.0% Daylight term loan due October 15, 2024(1)	78		98
Finance lease and other	161		163
Short-term borrowings	15		27
Total debt principal	393		427
Less unamortized debt issuance costs and discounts	—		—
Total debt, net	393		427
Less short-term borrowings and current portion of long-term debt	(41)		(53)
Total long-term debt	$	352	374

________________

(1)The Company’s debt with related parties consists of two term loans and a working capital credit facility with US Holding, as described below.

Term Loans

In January 2009, the Company entered into a credit agreement with its ultimate parent company, Finmeccanica S.p.A. (presently Leonardo S.p.A.) in the amount of $2 billion (the “2009 Credit Agreement”). The 2009 Credit Agreement was subsequently assigned to US Holding and has a maturity of November 30, 2023. The 2009 Credit Agreement provides for a term loan bearing interest at a rate of 7.5%, with interest payments due semi-annually on June 20 and December 20 in each year (the “7.5% Term loan”). The outstanding balance of the 7.5% Term loan at December 31, 2021 and 2020 was $139 million and $139 million, respectively. The fair value of this term loan at December 31, 2021 and 2020 was $182 million and $182 million, respectively; however the Company has the ability to prepay the outstanding principal balance at the carrying amount without penalty. During 2020, US Holding forgave $300 million of related party debt. This was treated as a capital transaction and the amount was recorded in additional paid-in capital, as US Holding is a related party.

In June 2017, the Company entered into an unsecured term loan with US Holding in the principal amount of $137.5 million, the proceeds of which were used to finance the acquisition of Daylight Solutions, Inc. (the “Daylight Term Loan”). The Daylight Term Loan had an outstanding balance of $78 million and $98 million at December 31, 2021 and 2020, respectively, which approximates its fair value. The Daylight Term Loan matures on October 15, 2024. The Daylight Term Loan has an interest rate of 5.0%, with interest payments due semi-annually on April 15 and October 15.

During April 2018, the Company was advanced an additional $50 million by US Holding under a term loan. This term loan bears interest at 4.0% and had an initial maturity date of December 31, 2018, which was extended until December 31, 2021. This term loan was repaid in full, with no prepayment penalty, on December 19, 2020.

Credit Facilities

The 2009 Credit Agreement provides for a revolving credit facility available for working capital needs of the Company (the “Revolving Credit Facility”). As of December 31, 2021 and 2020, the Revolving Credit Facility had a credit limit of $450 million and $450 million, respectively, and an interest rate of LIBOR plus 3.5%. There is a commitment fee of 0.25% applied to the unused balance of the Revolving Credit Facility and there are no compensating balance requirements. There was no balance on the Revolving Credit Facility as of December 31, 2021 and 2020.

The Company also maintains uncommitted working capital credit facilities with certain financial institutions in the aggregate of $65 million and $60 million at December 31, 2021 and 2020, respectively (the “Financial Institution Credit Facilities”). The Financial Institution Credit Facilities are guaranteed by Leonardo S.p.A. The primary purpose of the Financial Institution Credit Facilities is to support standby letter of credit issuances on contracts with customers and also includes a revolving facility with a maximum borrowing limit of $15 million, which bears interest at LIBOR plus 0.5%. At December 31, 2021 and 2020, there was no balance outstanding on the revolving facility. The Company had letters of credit outstanding of approximately $35 million and $31 million as of December 31, 2021 and 2020, respectively, which reduces the available capacity of the Financial Institution Credit Facilities by an equal amount.

Finance Lease and Other

As of December 31, 2021, finance lease and other of $161 million includes approximately $113 million related to finance lease liabilities and $48 million related to our Menomonee Falls, WI manufacturing facility, which has been accounted for as a build-to-suit lease with a failed sale leaseback. Approximately $6 million has been recognized as the current portion of long-term debt for the finance lease liabilities and financing liability related to the build-to-suit arrangement.

Short-term Borrowings

As of December 31, 2021 and 2020, the Company recognized $15 million and $27 million, respectively, collected on behalf of the buyers of our trade receivables pursuant to our factoring arrangements as short-term borrowings and current portion of long-term debt in the Consolidated Balance Sheet, which approximates its fair value. Refer to Note 3: Accounts Receivable for more information.

Interest Paid

Total interest paid associated with our debt was $35 million, $64 million and $65 million in 2021, 2020 and 2019, respectively.

Maturities of long-term debt as of December 31, 2021 are as follows:


(Dollars in millions)
Year Ending December 31,
2022	$	41
2023	171
2024	40
2025	7
2026	7
Thereafter	127
Total principal payments	$	393

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Retirement Plan Summary Information

The Company maintains multiple pension plans, both contributory and non-contributory, covering employees at certain locations. Eligibility requirements for participation in the plans vary, and benefits generally are based on the participant's compensation and years of service, as defined in the respective plan. The Company's funding policy generally is to contribute in accordance with cost accounting standards that affect government contractors, subject to the Tax Code and regulations thereunder. Plan

assets are invested primarily in equities, bonds (both corporate and U.S. government), U.S. government-sponsored entity instruments, cash and cash equivalents and real estate.

The Company also provides postretirement medical benefits for certain retired employees and dependents at certain locations. Participants are eligible for these benefits when they retire from active service and meet the eligibility requirements for the Company's postretirement benefit plans. The Company's contractual arrangements with the U.S. government provide for the recovery of contributions to a Voluntary Employees' Beneficiary Association (“VEBA”) trust and, for non-funded plans, recovery of claims on a pay-as-you-go basis, subject to the Tax Code and regulations thereunder, with the retiree generally paying a portion of the costs through contributions, deductibles and coinsurance provisions.

The Company also maintains certain non-contributory and unfunded supplemental retirement plans. Eligibility for participation in the supplemental retirement plans is limited, and benefits generally are based on the participant's compensation and/or years of service.

The following tables provide certain information regarding the Company's pension, postretirement and supplemental retirement plans as of December 31, 2021 and 2020:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Change in benefit obligation:
Benefit obligation at beginning of year	$	226	$	261	$	2	$	3	$	23	$	24
Service cost	—		—		—		—		—		—
Interest cost	5		7		—		—		1		1
Plan participants' contributions	—		—		—		—		—		—
Actuarial (gain) loss	(3)		(10)		—		(1)		(1)		(1)
Benefits paid	(13)		(10)		—		—		(1)		(1)
(Gain) loss due to settlement	—		(21)		—		—		—		—
Plan amendments	—		—		—		—		—		—
Exchange rate differences and other	—		(1)		—		—		—		—
Benefit obligation at end of year	$	215	$	226	$	2	$	2	$	22	$	23
Change in plan assets:
Fair value of plan assets at beginning of year	$	151	$	158	$	1	$	1	$	11	$	10
Actual return on plan assets	15		19		—		—		1		1
Plan participants' contributions	—		—		—		—		—		—
Employer contributions	13		6		—		—		1		1
Benefits paid	(13)		(10)		—		—		(1)		(1)
(Loss) gain due to settlement	—		(21)		—		—		—		—
Exchange rate differences and other	—		(1)		—		—		—		—
Fair value of plan assets at end of year	166		151		1		1		12		11
Contributions between measurement date and year end	—		—		—		—		—		—
Funded status of the plans at year end	$	(49)	$	(75)	$	(1)	$	(1)	$	(10)	$	(12)

The amounts recognized in the Consolidated Balance Sheet, as of December 31, 2021 and 2020 consist of:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Noncurrent assets	$	—	$	—	$	1	$	1	$	—	$	—
Current liabilities	—		—		—		—		—		—
Noncurrent liabilities	(49)		(75)		(2)		(2)		(10)		(11)
Net liability recognized	$	(49)	$	(75)	$	(1)	$	(1)	$	(10)	$	(11)

Amounts recognized in accumulated other comprehensive income (before taxes) at December 31, 2021 and 2020 consist of:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Prior service cost	$	—	$	—	$	—	$	—	$	—	$	—
Net actuarial loss (gain)	40		52		(1)		(2)		6		7
Total amount recognized in accumulated other comprehensive losses (earnings)	$	40	$	52	$	(1)	$	(2)	$	6	$	7

The aggregate accumulated benefit obligation (“ABO”) for the Company's defined benefit pension plans combined was $237 million and $249 million at December 31, 2021 and 2020, respectively. The ABO represents benefits accrued without assuming future compensation increases to plan participants and is approximately equal to our projected benefit obligation (“PBO”).The table below presents information for the pension plans with an ABO and PBO in excess of the fair value of plan assets at December 31, 2021 and 2020.


(Dollars in millions)	December 31, 2021		December 31, 2020
Projected benefit obligation	$	237	$	249
Accumulated benefit obligation	237		249
Fair value of plan assets	178		162

The following table summarizes the weighted average actuarial assumptions used to determine our benefit obligations at December 31, 2021 and 2020:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
	2021		2020		2021		2020		2021		2020
Rate assumptions
Discount rate	2.8	%	2.4	%	2.6	%	4.3	%	2.8	%	2.5	%
Increase in future compensation levels	N/A		N/A		N/A		N/A		N/A		N/A
Expected long-term return on plan assets	5.9	%	6.4	%	5.9	%	6.4	%	N/A		N/A
Health care trend rate assumed for next year	N/A		N/A		4.6	%	5.4	%	N/A		N/A
Ultimate health care trend rate	N/A		N/A		4.3	%	4.3	%	N/A		N/A
Year rate reaches ultimate trend rate	N/A		N/A		2031		2031		N/A		N/A

The following table summarizes the components of net periodic benefit cost for the Company's pension, postretirement and supplemental retirement plans for the years ended December 31, 2021 and 2020 and 2019:


	Defined Benefit Pension Plans						Postretirement Benefit Plans						Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2019		2021		2020		2019		2021		2020		2019
Service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Interest cost	$	5	$	7	$	7	$	—	$	—	$	—	$	1	$	1	$	1
Expected return on plan assets	$	(7)	$	(8)	$	(7)	$	—	$	—	$	—	$	—	$	—	$	—
Amortization of net actuarial loss (gain)	$	2	$	3	$	2	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Amortization of prior service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Settlement expense (income)	$	—	$	3	$	—	$	—	$	—	$	—			$	—	$	—
Net periodic benefit cost	$	—	$	5	$	2	$	(1)	$	(1)	$	—	$	1	$	1	$	1

The following table summarizes the other changes in plan assets and benefit obligations recognized in other comprehensive earnings for the Company's pension, postretirement and supplemental retirement benefit plans for the years ended December 31, 2021 and 2020 and 2019:


	Defined Benefit Pension Plans						Postretirement Benefit Plans						Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2019		2021		2020		2019		2021		2020		2019
Net actuarial (gain) loss	$	(11)	$	(21)	$	19	$	—	$	(1)	$	(1)	$	(1)	$	(1)	$	4
Prior service cost	—		—		—		—		—		—		—		—		—
Amortization of net actuarial (loss) gain from prior years	(2)		(6)		(2)		1		1		—		—		—		—
Amortization of prior service cost	—		—		—		—		—		—		—		—		—
Other(1)	—		—		—		—		—		—		—		—		—
Total recognized in other comprehensive income	$	(13)	$	(27)	$	17	$	1	$	—	$	(1)	$	(1)	$	(1)	$	4

________________

(1) Includes foreign exchange translation.

The following table summarizes the weighted average actuarial assumptions used to determine our net periodic cost of the plans for the years ended December 31, 2021, 2020 and 2019:


	Defined Benefit Pension Plans						Postretirement Benefit Plans						Supplemental Retirement Plans
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Rate assumptions
Discount rate	2.8	%	2.7	%	3.6	%	2.1	%	2.8	%	3.3	%	2.4	%	2.4	%	3.5	%
Expected long - term return on plan assets	6.4	%	6.3	%	6.9	%	6.4	%	5.8	%	5.7	%	N/A		N/A		N/A
Increase in future compensation levels	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Health care trend rate assumed for next year	N/A		N/A		N/A		5.8	%	6.0	%	6.5	%	N/A		N/A		N/A
Ultimate health care trend rate	N/A		N/A		N/A		4.5	%	4.5	%	4.5	%	N/A		N/A		N/A
Year rate reaches ultimate trend rate	N/A		N/A		N/A		2030		2029		2027		N/A		N/A		N/A

The expected long-term return on plan assets assumption represents the average rate that the Company expects to earn over the long-term on the assets of the Company's benefit plans, including those from dividends, interest income and capital appreciation. The assumption has been determined based on expectations regarding future rates of return for the plans' investment portfolio, with consideration given to the allocation of investments by asset class and historical rates of return for each individual asset class.

A one percentage increase or decrease in healthcare trend rates in the table above would have an insignificant impact to our service and interest cost and the postretirement medical obligations.

Plan Assets

The Company is responsible for formulating the investment policies and strategies for each plan's assets. Presently all of the plans are governed by a single investment policy and are uniformly invested. As part of the policy statement the Company has implemented a glide path which adjusts the percentage of assets invested in return seeking assets based upon the attainment of specific funding percentages. The non-return seeking assets are invested primarily in bonds with maturities closely matching the anticipated payment of benefits.

The table below represents all of the Company's funded pension plans' and postretirement benefit plans' weighted-average asset allocation at December 31, 2021 and 2020 by asset category:


	Asset Allocation
	2021		2020
Asset Category
Equity securities	41	%	55	%
Debt securities	47	%	33	%
Real estate	6	%	6	%
Other, primarily cash and cash equivalents, and hedge funds	6	%	6	%

The table below presents the target allocation ranges for each major asset category for the Company's benefit plans for the years ended December 31, 2021 and 2020.


	Target Asset Allocation Range
	2021	2020
Asset Category
Equity securities	40% - 60%	40% - 60%
Debt securities	30% - 50%	40% - 50%
Real estate	5% - 10%	5% - 10%
Other, primarily cash and cash equivalents and hedge funds	5% - 10%	5% - 10%

The following tables provides the fair value of plan assets held by our defined benefit plan by asset category and by fair value hierarchy level. Certain investments are measured at their NAV per share and do not have readily determined fair values. As such, these investments are not subject to leveling in the fair value hierarchy.


	December 31, 2021
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Asset category
Investments measured at fair value:	$	—	$	—	$	—	$	—
Cash and cash equivalents	$	11	$	—	$	—	$	11
Equity securities	6		—		—		6
Debt securities	—		—		—		—
Total	$	17	$	—	$	—	$	17
Investments measured at NAV:
Collective trust funds	—		—		—		162
Equity and fixed income funds	—		—		—		—
Total	$	17	$	—	$	—	$	179


	December 31, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Asset category
Investments measured at fair value:
Cash and cash equivalents	$	9	$	—	$	—	$	9
Equity securities	6		—		—		6
Debt securities	—		—		—		—
Total	$	15	$	—	$	—	$	15
Investments measured at NAV:
Collective trust funds	—		—		—		148
Equity and fixed income funds	—		—		—		—
Total	$	15	$	—	$	—	$	163

For the year ended December 31, 2022, the Company expects to contribute $5 million to its pension plans and an inconsequential amount to its postretirement plans. During 2020 the Company deferred approximately $7 million in pension contributions until 2021 under the CARES Act and IRS Notice 2020-82, which was included in the total pension contributions for 2021 of $13 million.

The following table presents expected pension and postretirement benefit payments over the next 10 years:


(Dollars in millions)	Defined Benefit Pension Plans		Postretirement Benefit Plans		Supplemental Retirement Plans
Year Ending December 31,
2022	$	12	$	—	$	1
2023	12		—		1
2024	13		—		1
2025	13		—		1
2026	13		—		1
2027-2031	63		—		6

Defined Contribution Plans

The Company maintains defined contribution plans covering substantially all domestic full-time eligible employees. The Company's contributions to these plans for the years ended December 31, 2021, 2020 and 2019 amounted to $22 million, $21 million and $19 million, respectively.

Equity Method Investments

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Our share of net earnings related to our equity method investments was $2 million, $3 million and $2 million for the years ended December 31, 2021, 2020 and 2019, respectively, which was included in our Network Computing & Communications business segment operating profit.

Below is a list of the entities accounted for under the equity method and recorded in other noncurrent assets on our Consolidated Balance Sheet:


	% of Ownership				Carrying Value
(Dollars in millions)	2021		2020		2021		2020
Advanced Acoustics Concepts, LLC	51	%	51	%	$	27	$	25

Share-based compensation plans	12 Months Ended
Share-based compensation plans	Dec. 31, 2021
Share-based Payment Arrangement [Abstract]
Share-based compensation plans	Share-based compensation plansThe Company does not have any share-based compensation plans. See Note 6: Other Liabilities, for information regarding cash compensation.

Commitment and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments

The Company’s commitments are primarily related to our lease and credit agreements. See Note 9: Leases and Note 11: Debt for additional information on our leases and credit agreements.

Contingencies

From time to time we are subject to certain legal proceedings and claims in the ordinary course of business. These matters are subject to many uncertainties and it is possible that some of these matters ultimately could be decided, resolved or settled in a manner adverse to us. Although the precise amount of liability that may result from these matters is not ascertainable, the Company believes that any amounts exceeding the Company's recorded accruals should not materially adversely affect the Company's financial condition or liquidity. It is possible, however, that the ultimate resolution of those matters could result in a material adverse effect on the Company's results of operations and/or cash flows from operating activities for a particular reporting period. We establish reserves for specific legal matters

when we determine that the likelihood of an unfavorable outcome is probable and the loss is reasonably estimable.

Some environmental laws, such as the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (also known as “CERCLA” or the “Superfund law”) and similar state statutes, can impose liability upon former owners or operators for the entire cost of investigating and remediating contaminated sites regardless of the lawfulness of the original activities that led to the contamination. In July 2000, an entity which later became a subsidiary of the Company received a Section 104(e) Request for Information (“RFI”) from the National Park Service (“NPS”), pursuant to CERCLA, regarding the presence of radioactive material at a site within a national park, which site was operated by an alleged predecessor to our subsidiary over 50 years ago. Following the subsidiary’s response to the RFI, the NPS directed it and another alleged former operator to perform an Engineering Evaluation and Cost Analysis (“EE/CA”) of a portion of the site. The Company’s subsidiary made a good faith offer to conduct an alternative EE/CA work plan, but the NPS rejected this offer and opted to perform the EE/CA itself. The NPS previously posted its intention to open a formal public comment period regarding the EE/CA at the end of 2019. To the Company’s knowledge, the EE/CA has not been released and a public comment period has yet to be opened.

Following completion of the EE/CA, the NPS may seek reimbursement for its investigative and remedial efforts to date, or direct one or more of the potentially responsible parties to perform any remediation that may be required by CERCLA or may enter an alternative dispute resolution proceeding to attempt to resolve each party’s share. In addition, the NPS may seek to recover damages for loss of use of certain natural resources. The Company believes that it has legitimate defenses to its subsidiary’s potential liability and that there are other potentially responsible parties for the environmental conditions at the site, including the U.S. government as owner, operator and arranger at the site. The potential liability associated with this matter could change substantially due to such factors as additional information on the nature or extent of contamination, methods of remediation that might be recommended or required, changes in the apportionment of costs among the responsible parties, whether the NPS seeks to recover additional damages, whether the NPS’s plans to investigate additional areas to identify a need for further remedial action for which the Company may be identified as a potentially responsible party and other actions by governmental agencies or private parties.

The Company has recorded its best estimate of damages and its share of remediation costs related to the site to reflect what we and our advisors reasonably believe we would be liable for based on the current information and circumstances of the claim, exclusive of other potential liabilities that may be asserted in the future.

In the performance of our contracts we routinely request contract modifications that require additional funding from the customer. Most often, these requests are due to customer-directed changes in the scope of work. While we are entitled to recovery of these costs under our contracts, the administrative process with our customer may be protracted. Based on the circumstances, we periodically file requests for equitable adjustment (“REAs”) that are sometimes converted into claims. In some cases, these requests are disputed by our customer. We believe our outstanding modifications, REAs and other claims will be resolved without material impact to our results of operations, financial condition or cash flows.

As a government contractor, with customers including the U.S. government as well as various state and local government entities, the Company may be subject to audits, investigations and claims with respect to its contract performance, pricing, costs, cost allocations and procurement practices. Additionally, amounts billed under such contracts, including direct and indirect costs, are subject to potential adjustments before final settlement.

Management believes that adequate provisions for such potential audits, investigations, claims and contract adjustments, if any, have been made in the Consolidated Financial Statements.

Restructuring costs

We engage in targeted restructuring initiatives in order to rationalize headcount and align our operations in a more strategic and cost-efficient structure. In connection with these restructuring initiatives we recorded charges totaling $5 million, $12 million and $20 million for the years ended December 31, 2021, 2020 and 2019, respectively. Costs incurred were related to employee termination and severance costs, as well as costs related to discontinuing product lines or closing down of locations. Charges were recorded within other operating expenses, net, with the exception of costs incurred related to the write-down of inventory, which were recorded in cost of products. See the table below for a breakout of restructuring costs incurred by segment and by nature of cost incurred:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
AST
Severance	$	3	$	—	$	—
Facility abandonment	—		—		3
Inventory	—		—		—
Total AST	3		—		3
NC&C
Severance	2		6		1
Facility abandonment	—		—		—
Inventory	—		—		2
Total NC&C	2		6		3
IMS
Severance	—		—		2
Facility abandonment	—		6		6
Inventory	—		—		5
Total IMS	—		6		13
Corporate
Severance	—		—		—
Facility abandonment	—		—		1
Inventory	—		—		—
Total Corporate	—		—		1
Total	$	5	$	12	$	20

The following is a summary of changes in the restructuring provision balance during the years ended December 31, 2020 and 2021:


(Dollars in millions)
Balance at January 1, 2020	$	4
Additional provision	12
Reversal and utilization	(15)
Balance at December 31, 2020	1
Additional provision	5
Reversal and utilization	(2)
Balance at December 31, 2021	$	4

Product Warranties

Product warranty costs generally are accrued in proportion to product revenue realized in conjunction with our over-time revenue recognition policy. Product warranty expense is recognized based on the term of the product warranty, generally one year to three years, and the related estimated costs, considering historical claims expense. Accrued warranty costs are reduced as these costs are incurred and as the warranty period expires, and otherwise may be modified as specific product performance issues are identified and resolved. The following is a summary of changes in the product warranty balances during the years ended December 31, 2020 and 2021:


(Dollars in millions)
Balance at January 1, 2020	$	13
Additional provision	16
Reversal and utilization	(12)
Balance at December 31, 2020	17
Additional provision	17
Reversal and utilization	(15)
Balance at December 31, 2021	$	19

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Under our current proxy agreement, DRS remains largely independent from the Parent. Additionally, the Company provides services related to the US interface for the Parent and its other affiliates. These services include financial, tax, trade compliance, marketing and communications and legal. The Company also has related-party sales with the Parent and its other affiliates that occur in the regular course of business. Related-party sales for these transactions are included in revenues and were $11 million, $26 million and $16 million for the years ended December 31, 2021,2020 and 2019, respectively. The receivables related to these transactions with the Parent and its other affiliates of $2 million and $5 million, respectively, and payables of $1 million and $8 million, respectively, are included in accounts receivable and accounts payable in our Consolidated Balance Sheet as of December 31, 2021 and 2020. The Company entered into a Surplus Treasury Agreement with US Holding (the “Surplus Agreement”) in December 2019. The Surplus Agreement allows the Company to advance excess funds to US Holding when funds are available. The advances bear interest at LIBOR plus between 5 and 20 basis points depending on the tenor of the advance. As of December 31, 2021 and 2020, the Company had advanced $0 million and $115 million to US Holding, which is presented on the balance sheet as a related party note receivable. During 2020, US Holding forgave $300 million of related party debt. This was treated as a capital transaction and the amount was recorded in additional paid-in capital, as US Holding is a related party. The Company entered into Tax Allocation Agreement with US Holding, dated as of November 16, 2020. Refer to Note 1: Summary of Significant Accounting Policies for more information.

Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment InformationOperating segments represent components of an enterprise for which separate financial information is available that is regularly reviewed by the CODM in determining how to allocate resources and assess performance. Our Chief Executive Officer is our CODM and he uses a variety of measures to assess the performance of the Company as a whole, depending on the nature of the activity. The Company’s operating and reportable segments consist of AST, NC&C and IMS. All other operations, which consists primarily of DRS Corporate Headquarters and certain non-operating subsidiaries of the Company, are grouped in Corporate & Eliminations.

We primarily use Adjusted EBITDA to manage the Company and allocate resources. Adjusted EBITDA of our business segments includes our net earnings before income taxes, amortization of acquired intangible assets, depreciation, restructuring costs, interest, deal related transaction costs , acquisition and divestiture related expenses, foreign exchange, COVID-19 response costs, non-service pension expenditures and other one-time non-operational events. Adjusted EBITDA is used to facilitate a comparison of the ordinary, ongoing and customary course of our operations on a consistent basis from period to period and provide an additional understanding of factors and trends affecting our business segments. This measure assists the CODM in assessing segment operating performance consistently over time without the impact of our capital structure, asset base and items outside the control of the management team and expenses that do not relate to our core operations.

Certain information related to our segments for the years ended December 31, 2021, 2020 and 2019, is presented in the following tables. Consistent accounting policies have been applied by all segments within the Company, within all reporting periods. A description of our reportable segments as of December 31, 2021 and 2020 has been included in Note 1: Summary of Significant Accounting Policies. Transactions between segments generally are negotiated and accounted for under terms and conditions that are similar to other government and commercial contracts; however, these intercompany transactions are eliminated in consolidation.

Total revenues and intersegment revenues by segment for the years ended December 31, 2021, 2020 and 2019 consists of the following:


(Dollars in millions)	2021		2020		2019
AST	$	970	$	940	$	781
NC&C	972		1,026		1,053
IMS	959		834		917
Corporate & Eliminations	(22)		(22)		(37)
Total revenue	$	2,879	$	2,778	$	2,714


(Dollars in millions)	2021		2020		2019
AST	$	14	$	12	$	12
NC&C	7		9		24
IMS	1		1		1
Total intersegment revenue	$	22	$	22	$	37

Depreciation by segment as of December 31, 2021, 2020 and 2019 consists of the following:


(Dollars in millions)	2021		2020		2019
AST	$	20	$	19	$	19
NC&C	13		11		10
IMS	16		14		13
Total depreciation	$	49	$	44	$	42

Total assets by segment as of December 31, 2021 and 2020 consist of the following:


(Dollars in millions)	2021		2020(1)
AST	$	929	$	864
NC&C	616		699
IMS	1,145		1,018
Corporate & Eliminations	379		375
Total assets	$	3,069	$	2,956

(1) The 2020 amounts have been adjusted to reflect the correction of the allocation of certain assets within each segment.

Reconciliation of reportable segment Adjusted EBITDA to Net Earnings (loss) consists of the following:


(Dollars in millions)	2021		2020		2019
Adjusted EBITDA
AST	$	125	$	123	$	94
NC&C	95		90		75
IMS	90		55		63
Corporate & Eliminations	—		—		2
Total Adjusted EBITDA	$	310	$	268	$	234
Amortization of intangibles	(9)		(9)		(9)
Depreciation	(49)		(44)		(42)
Restructuring costs	(5)		(12)		(20)
Interest expense	(35)		(64)		(65)
Deal related transaction costs	(5)		(9)		—
Acquisition and divestiture related expenses	—		—		—
Foreign exchange	(1)		(1)		—
COVID-19 response costs	(6)		(12)		—
Non-service pension expense	—		(5)		(3)
Other one-time non-operational events	—		—		—
Income tax provision	(46)		(27)		(20)
Net earnings	$	154	$	85	$	75

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The Company has evaluated subsequent events through March 28, 2022, which represents the date on which the Consolidated Financial Statements were issued. On March 21, 2022, the Company entered into a definitive agreement to sell its Global Enterprise Solutions (GES) business to SES Government Solutions, Inc., a wholly-owned subsidiary of SES S.A., for $450 million in cash. GES, which is part of the NC&C segment, provides commercial satellite communications to the U.S. Government and delivers satellite communications and security solutions to customers worldwide. SES S.A. has guaranteed the payment of the purchase price and performance of all other obligations of SES Government Solutions, Inc. under the agreement. The transaction is subject to customary closing conditions, including approvals under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) and by The Committee on Foreign Investment in the United States (CFIUS) and The Federal Communications Commission (FCC).

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2021
Accounting Policies [Abstract]
Segment Reporting	Our three reportable segments reflect the way performance is assessed and resources are allocated by our Chief Executive Officer, who is our chief operating decision maker (“CODM”). Advanced Sensor Technologies (“AST”) The AST segment provides electro-optical sensor technologies, laser systems, EW systems and intelligence and surveillance solutions to U.S. military and intelligence community customers. Major solutions include ground vehicle targeting and surveillance sensors, including electro-optical and advanced detection systems. Our soldier sensing applications include infrared imaging solutions and precision targeting systems. Our infrared focal plane array foundry produces small sized cryogenically cooled and uncooled infrared sensors. AST also provides aircraft training instrumentation equipment and high-performance radio frequency receivers and transceivers for U.S. and international customers. Our quantum cascade laser technology is being used in military and commercial medical applications. Network Computing & Communication (“NC&C”) The NC&C segment provides defense electronics solutions across all domains of warfare. Our technologies and products can be integrated into legacy and new military platforms, end-to-end network communication systems, satellite services and cyber solutions. We are also a provider of ruggedized computing platforms. For the U.S. Navy and its allies, we provide naval computing infrastructure, network and data distribution, radar and rugged naval control systems, which are present on all U.S. naval surface and subsurface combatant vessels. Our global communications network is a worldwide network of terrestrial and satellite bandwidth that ensures our customers’ data is secure and reliable. Integrated Mission Systems (“IMS”) The IMS segment provides critical force protection, vehicle integration, transportation and logistics, and electrical conversion and ship propulsion systems to the U.S. military. Our force protection systems protect service members and military assets from evolving and proliferating threats and include solutions for counter-unmanned aerial systems, short-range air defense systems, and active protection systems on ground vehicles. We have military transportation and logistics offerings and ground vehicle integration capabilities to support U.S. forces in a wide range of operational environments. For the U.S. Navy, we provide and support multi-generational power conversion and propulsion systems for our nation’s shipbuilding programs. Other The Company separately presents the unallocable costs associated with corporate functions and certain non-operating subsidiaries of the Company as Corporate & Eliminations.
Basis of Presentation	Basis of presentationThe accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of DRS, its wholly owned subsidiaries and its controlling interests. Interests in joint ventures that are controlled by the Company, or for which the Company is otherwise deemed to be the primary beneficiary, are consolidated. For joint ventures in which the Company does not have a controlling interest, but exerts significant influence, the Company applies the equity method of accounting. All intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to current year presentation.
Use of Estimates	Use of estimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant of these estimates and assumptions relate to the recognition of contract revenues and estimated costs to complete contracts in process, recoverability of reported amounts of goodwill, long-lived assets and intangible assets, valuation of pensions and other postretirement benefits, the valuation of deferred tax assets and liabilities and the valuation of unrecognized tax benefits. Actual results could differ from these estimates.
Revenue Recognition and Cost of Revenues	Revenue Recognition Our revenues consist of sales of products (tangible goods) and sales of services to customers. We recognize the majority of our revenue from contracts with customers using an over time, cost-to-cost method of accounting. On certain other contracts, primarily time and material (“T&M”) and cost-plus contracts, revenue is recognized using the right-to-invoice practical expedient as we are contractually able to bill our customer based on control transferred to the customer.Cost of RevenuesCost of revenues includes materials, labor and overhead costs incurred in the manufacturing, design, and provision of products and services sold in the period as well as warranty costs. Material costs include raw materials, purchased components and sub-assemblies, outside processing and inbound freight costs. Labor and overhead costs consist of direct and indirect manufacturing costs, including wages and fringe benefits, operating supplies, depreciation and amortization, occupancy costs, and purchasing, receiving and inspection costs.The Company recognizes revenue for each separately identifiable performance obligation in a contract representing an obligation to transfer a distinct good or service to a customer. In most cases, goods and services provided under the Company’s contracts are accounted for as single performance obligations due to the complex and integrated nature of our products and services. These contracts generally require significant integration of a group of goods and/or services to deliver a combined output. In some contracts, the Company provides multiple distinct goods or services to a customer. In those cases, the Company accounts for the distinct contract deliverables as separate performance obligations and allocates the transaction price to each performance obligation based on its relative standalone selling price, which is generally estimated using cost plus a reasonable margin. We classify revenues as products or services on our Consolidated Statements of Earnings based on the predominant attributes of the performance obligations. While the Company provides warranties on certain contracts, we typically do not provide for services beyond standard assurances and therefore do not consider warranties to be separate performance obligations. Typically we enter into three types of contracts: fixed-price contracts, cost-plus contracts and T&M contracts (cost-plus contracts and T&M contracts are aggregated below as flexibly priced contracts). The majority of our total revenues are derived from fixed-price contracts; refer to the revenue disaggregation disclosures that follow. For fixed-price contracts, customers agree to pay a fixed amount, negotiated in advanced for a specified scope of work. For cost-plus contracts typically we are reimbursed for allowable or otherwise defined total costs (defined as cost of revenues plus allowable general and administrative expenses) incurred, plus a fee. The contracts may also include incentives for various performance criteria, including quality, timeliness and cost-effectiveness. In addition, costs are generally subject to review by clients and regulatory audit agencies, and such reviews could result in costs being disputed as non-reimbursable under the terms of the contract. T&M contracts provide for reimbursement of labor hours expended at a contractual fixed labor rate per hour, plus the actual costs of material and other direct non-labor costs. The fixed labor rates on T&M contracts include amounts for the cost of direct labor, indirect contract costs and profit. Estimating the transaction price for an arrangement requires judgment and is based on expected results which are determined using the Company’s historical data. We estimate that the revenue that we expect to be entitled to receive from a customer to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur. Revenue from contracts with customers is recognized when the performance obligations are satisfied through the transfer of control over the good or service to the customer, which may occur either over time or at a point in time. Revenues for the majority of our contracts are measured as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion (the "cost-to-cost method"). We believe this is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Due to the long-term nature of many of our contracts, developing the estimated total cost at completion and total transaction price often requires judgment. Factors that must be considered in estimating the cost of the work to be completed include the nature and complexity of the work to be performed, subcontractor performance and the risk and impact of delayed performance. After establishing the estimated total cost at completion, we follow a standard Estimate at Completion (“EAC”) process in which we review the progress and performance on our ongoing contracts at least quarterly. Adjustments to original estimates for a contract's revenue, estimated costs at completion and estimated profit or loss often are required as work progresses under a contract, as experience is gained and as more information is obtained, even though the scope of work required under the contract may not change and are also required if contract modifications occur. When adjustments in estimated total costs at completion or in estimated total transaction price are determined, the related impact on revenue and operating income are recognized using the cumulative catch-up method, which recognizes in the current period the cumulative effect of such adjustments for all prior periods. Any anticipated losses on these contracts are fully recognized in the period in which the losses become evident. Conversely, if the requirements for the recognition of contracts over time are not met, revenue is recognized at a point in time when control transfers to the customer, which is generally upon transfer of title. In such cases, the production that is in progress and costs that will be recognized at a future point in time are reported within "inventories". Costs to obtain a contract are incremental direct costs incurred to obtain a contract with a customer, including sales commissions and dealer fees, and are capitalized if material. Costs to fulfill a contract include costs directly related to a contract or specific anticipated contract (e.g., certain design costs) that generate or enhance our ability to satisfy our performance obligations under these contracts. These costs are capitalized to the extent they are expected to be recovered from the associated contract. Contract Assets and Liabilities The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheet. Amounts are billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals (e.g., biweekly or monthly) or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities. The change in the balances of the Company’s contract assets and liabilities primarily results from timing differences between revenue recognition and customer billings and/or payments. Contract assets related to amounts withheld by customers until contract completion are not considered a significant financing component of our contracts because the intent is to protect the customers from our failure to satisfactorily complete our performance obligations. Payments received from customers in advance of revenue recognition (contract liabilities) are not considered a significant financing component of our contracts because they are utilized to pay for contract costs within a one-year period or are requested by us to ensure the customers meet their payment obligations. Value of Remaining Performance Obligations The value of remaining performance obligations, which we also refer to as total backlog, includes the following components: •Funded - Funded backlog represents the revenue value of orders for services under existing contracts for which funding is appropriated or otherwise authorized less revenue previously recognized on these contracts. •Unfunded - Unfunded backlog represents the revenue value of firm orders for products and services under existing contracts for which funding has not yet been appropriated less funding previously recognized on these contracts.
Research and Development Expenses	Research and Development ExpensesWe conduct research and development (“R&D”) activities using our own funds (referred to as company-funded R&D or independent research and development (“IR&D”)) and under contractual arrangements with our customers (referred to as customer-funded R&D) to enhance existing products and services and to develop future technologies. R&D costs include basic research, applied research, concept formulation studies, design, development, and related test activities. IR&D costs are allocated to customer contracts as part of the general and administrative overhead costs and generally recoverable on our customer contracts with the U.S. Government. Customer-funded R&D costs are charged directly to the related customer contract. Substantially all R&D costs are charged to cost of revenues as incurred.
Foreign Currency	Foreign CurrencySignificant transactions in foreign currencies are translated into U.S. dollars at the approximate prevailing rate at the time of the transaction. Foreign exchange transaction gains and losses in 2021, 2020 and 2019 were immaterial to the Company's results of operations. The operations of the Company's foreign subsidiaries are translated from the local (functional) currencies into U.S. dollars using weighted average rates of exchange during each monthly period. The rates of exchange at each balance sheet date are used for translating certain balance sheet accounts and gains or losses resulting from these translation adjustments are included in the accompanying Consolidated Balance Sheet as a component of other comprehensive income.
Cash and Cash Equivalents	Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits with banks or other short-term, highly liquid investments with original maturities of three months or less.
Accounts Receivable	Accounts ReceivableAccounts receivable consist of amounts billed and currently due from customers. When events or conditions indicate that amounts outstanding from customers may become uncollectible, an allowance is estimated and recorded.
Inventories	InventoriesInventories are recorded at the lower of cost (determined by either actual, weighted average or first-in, first-out methods) or net realizable value, and include direct production costs as well as indirect costs, such as factory overhead. The net realizable value is calculated as the expected sales price in the course of normal operations net of estimated costs to finish and sell the goods.
Property, Plant and Equipment	Property, Plant and EquipmentProperty, plant and equipment is carried at cost less accumulated depreciation. Depreciation is calculated on the straight-line method. The estimated useful lives of plant, machinery and equipment and building and building improvements generally range from 3 to 10 years and 15 to 40 years, respectively. Leasehold improvements are amortized over the shorter of the estimated useful life of the improvements or the remaining life of the lease.When assets are retired or otherwise disposed of, the cost and related accumulated depreciation or amortization are removed from the Consolidated Balance Sheet, and the net gain or loss is included in the determination of net earnings. Maintenance and repairs are charged to operations as incurred and renewals and improvements are capitalized.
Goodwill	GoodwillGoodwill represents the excess purchase price paid to acquire a business over the fair value of net assets acquired. Goodwill is assigned to reporting units and is reviewed for impairment at the reporting unit level on an annual basis, or whenever changes in circumstances indicate that the carrying amount may not be recoverable. A reporting unit is an operating segment, or one level below that operating segment (the component level) if discrete financial information is prepared and regularly reviewed by the segment manager. Two or more components of an operating segment may be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Based upon the aggregation criteria the Company concluded it had seven reporting units at both December 31, 2021 and 2020. The annual impairment test is typically performed after completion of the Company's annual financial operating plan, which occurs as of December 31. The Company uses quantitative assessments and qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the optional qualitative assessment is performed (Step 0) and the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, an additional quantitative fair value test (Step 1) is performed. When performing the Step 1 goodwill impairment test, we compare the fair values of each of our reporting units to their respective carrying values. In order to compute the fair value of our reporting units, we primarily use the income approach based on the discounted cash flows that each reporting unit expects to generate in the future, consistent with our operating plans. Determining the fair value of our reporting units requires significant judgments, including the timing and amount of future cash flows, long-term growth rates, determination of the weighted-average cost of capital and terminal value assumptions. If, based on the quantitative fair value test, the Company concludes that the carrying value of the reporting unit exceeds its fair value, the Company will recognize a goodwill impairment loss in an amount equal to that excess. The Company completed impairment tests as of December 31, 2021, 2020 and 2019 and no adjustment to the carrying value of goodwill was deemed to be necessary.
Intangible Assets	Identifiable intangible assets represent assets acquired as part of the Company's business acquisitions and include customer and program/contract-related assets. The values assigned to acquired identifiable intangible assets are determined as of the date of acquisition based on estimates and judgments regarding expectations for the estimated future after-tax cash flows from those assets over their lives, including the probability of expected future contract renewals and revenues, all of which are discounted to present value.
Long-Lived Assets	The Company assesses the recoverability of the carrying value of its long-lived assets and intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying amount of the assets or asset group may not be recoverable. If there are any indicators of impairment present, the Company then evaluates the recoverability of the potentially impaired long-lived assets and acquired identifiable intangible assets based upon expectations of undiscounted net cash flows from such assets. If the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset or asset group, a loss is recognized for the difference between the estimated fair value and the carrying amount of the assets. Assets to be disposed of, including those of discontinued operations, are reported at the lower of the carrying amount or fair value, less the costs to sell.
Derivative Financial Instruments	Derivative Financial InstrumentsThe Company does not use derivative financial instruments for trading purposes. All derivative instruments are carried on the Consolidated Balance Sheet as either assets or liabilities at fair value. The classification of gains and losses resulting from changes in the fair values of derivatives depends on the intended use of the derivative and its resultant designation.
Pension and Other Postretirement Benefits	Pension and Other Postretirement BenefitsThe obligations for the Company's pension plans and postretirement benefit plans and the related annual costs of employee benefits are calculated based on several long-term assumptions, including discount rates for employee benefit liabilities, rates of return on plan assets, expected annual rates of salary increases for employee participants in the case of pension plans and expected annual increases in the costs of medical and other health care benefits in the case of postretirement benefit plans. These long-term assumptions are subject to revision based on changes in interest rates, financial market conditions, expected versus actual returns on plan assets, participant mortality rates and other actuarial assumptions, including future rates of salary increases, benefit formulas and levels, and rates of increase in the costs of benefits. Changes in these assumptions, if significant, can materially affect the amount of annual net periodic benefit costs recognized in the Company's results of operations from one year to the next, the liabilities for the pension plans and postretirement benefit plans and the Company's annual cash requirements to fund these plans. See Note 12. Pension and Other Postretirement Benefits for further information regarding our pension and postretirement plans.The Company maintains multiple pension plans, both contributory and non-contributory, covering employees at certain locations. Eligibility requirements for participation in the plans vary, and benefits generally are based on the participant's compensation and years of service, as defined in the respective plan. The Company's funding policy generally is to contribute in accordance with cost accounting standards that affect government contractors, subject to the Tax Code and regulations thereunder. Plan assets are invested primarily in equities, bonds (both corporate and U.S. government), U.S. government-sponsored entity instruments, cash and cash equivalents and real estate. The Company also provides postretirement medical benefits for certain retired employees and dependents at certain locations. Participants are eligible for these benefits when they retire from active service and meet the eligibility requirements for the Company's postretirement benefit plans. The Company's contractual arrangements with the U.S. government provide for the recovery of contributions to a Voluntary Employees' Beneficiary Association (“VEBA”) trust and, for non-funded plans, recovery of claims on a pay-as-you-go basis, subject to the Tax Code and regulations thereunder, with the retiree generally paying a portion of the costs through contributions, deductibles and coinsurance provisions. The Company also maintains certain non-contributory and unfunded supplemental retirement plans. Eligibility for participation in the supplemental retirement plans is limited, and benefits generally are based on the participant's compensation and/or years of service. The expected long-term return on plan assets assumption represents the average rate that the Company expects to earn over the long-term on the assets of the Company's benefit plans, including those from dividends, interest income and capital appreciation. The assumption has been determined based on expectations regarding future rates of return for the plans' investment portfolio, with consideration given to the allocation of investments by asset class and historical rates of return for each individual asset class.
Income Taxes	Income Taxes We and US Holding have entered into a Tax Allocation Agreement (“Tax Allocation Agreement”), dated as of November 16, 2020, with members of an affiliated group, as defined in Section 1504(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Tax Code”), members of one or more consolidated, combined, unitary or similar state tax groups and additional parties who are part of an “expanded affiliated group” for certain tax purposes. The agreement provides for the method of computing and allocating the consolidated U.S. federal tax liability of the affiliated group among its members and of allocating any state group tax liabilities among the state members for the taxable year ending December 31, 2021 and each subsequent year in which the parties are members of a group (whether federal or state). The agreement also provides for reimbursement of US Holding and/or DRS for payment of such tax liabilities, for compensation of any member for use of its “net operating loss” or “tax credits” in arriving at such tax liabilities and the allocation and payment of any refund arising from a carryback of net operating losses or tax credits from subsequent taxable years. Under the agreement, the parties have agreed to calculate and allocate their respective tax liabilities and other tax attributes for taxable years beginning with the first consolidated taxable year that included DRS (i.e., the taxable year ended December 31, 2008) as if the agreement was then in effect. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Income taxes as presented attribute deferred income taxes of US Holding to DRS in a manner that is systematic, rational and consistent with the asset and liability method and the governing Tax Allocation Agreement which allocates the tax liability amongst the entities, including DRS. The provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year. Deferred taxes result from differences between the financial and tax basis of DRS’ assets and liabilities and are adjusted for changes in tax rates and tax laws when such changes are enacted. In general, the taxable income of DRS is included in the consolidated U.S. federal and state tax returns of US Holding. Where applicable, US Holding’s current portion of U.S. federal income taxes payable were offset against DRS’ net operating loss carryforwards in the period the related tax expense was recorded. Consequently, our net operating loss carryforwards are deemed to have been settled with US Holding in each year in an amount commensurate with the carrying value of the tax effected net operating loss utilized. If management determines that some portion or all of a deferred tax asset is not “more likely than not” to be realized, a valuation allowance is recorded as a component of the income tax provision to reduce the deferred tax asset to the amounts expected to be realized. In determining whether the Company’s deferred tax assets are realizable, management considers all evidence, both positive and negative, including the history of financial reporting earnings, existing taxable temporary differences and their projected reversals, as well as projected future income and tax planning strategies. We believe it is more likely than not that we will generate sufficient taxable income in future periods to realize our deferred tax assets, subject to the valuation allowances recognized. The Company assesses its tax positions for all periods open to examination by tax authorities based on the latest available information. Those positions are evaluated to determine whether they will more likely than not be sustained upon examination by the relevant taxing authorities. Liabilities for unrecognized tax benefits are measured based on the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. These unrecognized tax benefits are recorded as a component of income tax expense. Interest and penalties related to unrecognized tax benefits are not material.
Earnings Per Share	Earnings Per ShareBasic earnings per share (“EPS”) is computed by dividing net earnings by the weighted average number of shares of common stock outstanding during each period. The computation of diluted EPS includes the dilutive effect of outstanding stock-based compensation awards, only in periods in which such effect would have been dilutive for the period. In February 2021, the Company completed a forward stock split of 1-for-1,450,000 shares of common stock. The consolidated financial statements have been retroactively adjusted as necessary to reflect the forward stock split for all periods presented. There were 100 shares and 145.00 million basic and diluted common shares outstanding before and after the forward stock split, respectively, for all periods presented.
Fair Value Measurements	Fair Value Measurements Fair value is the price the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant on the measurement date. We are required to maximize the use of observable inputs and minimize the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three hierarchical levels used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are directly or indirectly observable. Level 3 — Significant inputs to the valuation model are unobservable. In certain instances, fair value is determined through information obtained from third parties using the latest available market data. In obtaining such data from third parties, we have evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value. The Company categorizes plan assets for disclosure purposes in accordance with this fair value hierarchy. Certain plan investments are measured at fair value using the net asset value (“NAV”) per share (or its equivalent) practical expedient and are therefore not categorized as Level 1, 2, or 3. NAV is defined as the total value of the fund divided by the number of the fund’s shares outstanding.
Financial Instruments	Financial InstrumentsOur financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses and other current liabilities. Financial instruments are reported in the Consolidated Balance Sheet at carrying value, which other than the 7.5% Term loan due November 30, 2023, approximate fair value.
Acquisitions	AcquisitionsOur consolidated financial statements include the operations of acquired businesses from the date of acquisition. We account for acquired businesses using the acquisition method of accounting, which requires that any assets acquired and liabilities assumed be measured at their respective fair values on the acquisition date. The accounting for business combinations requires the Company to make significant judgments and estimates. Any excess of the fair value of consideration transferred over the assigned values of the net assets acquired is recognized as goodwill.
Investments	InvestmentsInvestments where we have the ability to exercise significant influence, but do not control, are accounted for under the equity method of accounting and are included in other noncurrent assets on our Consolidated Balance Sheet. Significant influence typically exists if we have a 20% to 50% ownership interest in the investee. Under this method of accounting, our share of the net earnings or losses of the investee is included in operating profit in other income, net on our Consolidated Statements of Earnings (Loss) since the activities of the investee are closely aligned with the operations of the business segment holding the investment. We evaluate our equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may be impaired. If a decline in the value of an equity method investment is determined to be other than temporary, a loss is therefore recorded during the current period.The Company’s cost method investment consists of an investment in a private company in which we do not have the ability to exercise significant influence over its operating and financial activities. Management evaluates this investment for possible impairment quarterly.
Variable Interest Entities	Variable Interest EntitiesThe Company occasionally forms joint ventures and/or enters into arrangements with special purpose limited liability companies for the purpose of bidding and executing on specific projects. The Company analyzes each such arrangement to determine whether it represents a variable interest entity (“VIE”). If the arrangement is determined to be a VIE, the Company assesses whether it is the primary beneficiary of the VIE and if it is, consequently required to consolidate the VIE.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Accounting Pronouncements Changes to Disclosure Requirements for Defined Benefit Plans In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. Specifically, the amendment removes disclosure requirements for amounts classified in accumulated other comprehensive income expected to be recognized over the next year and the effects of a one-percentage-point change in the assumed health care cost trend rate on service cost, interest cost and the benefit obligation for postretirement benefits. The amendment also requires additional disclosure around weighted-average interest crediting rates for cash balance plans, a narrative description of the reasons for significant gains and losses, and an explanation of any other significant changes in the benefit obligation or plan assets. The adoption of the standard as of January 1, 2021 did not have a material impact on our consolidated financial statements. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes which removes certain exceptions to the general principles in Topic 740 for: recognizing deferred taxes for investments, performing intra-period allocations and calculating taxes in interim periods. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The standard is effective for fiscal years beginning after December 15, 2020. The adoption of the standard as of January 1, 2021 did not have a material impact on our consolidated financial statements. Accounting Guidance Issued but Not Yet Adopted as of December 31, 2021: Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance which requires certain disclosures to be included with respect to the types of assistance, the accounting for the assistance as well as the effect on the financial statements of the assistance. The purposes of the ASU is to increase transparency and eliminate disparity of accounting for and reporting of the receipt of government assistance. The standard is effective for fiscal periods beginning after December 15, 2021. The Company does not expect the adoption to have a material impact on our disclosures.

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Schedule of Change in Estimate at Completion Adjustments

EAC adjustments had the following impacts to revenue for the periods presented:


	Year Ended December 31,
(Dollars in millions)	2021			2020			2019
Revenue	$	(34)		$	(77)		$	(55)
Total % of Revenue	1		%	3		%	2		%

Schedule of Contract Assets and Contract Liabilities


	Year Ended December 31,
(Dollars in millions)	2021		2020
Contract assets	$	743	$	672
Contract liabilities	174		177
Net contract assets	$	569	$	495

Schedule of Remaining Performance Obligations, Expected Timing of Satisfaction

The following table summarizes the value of our backlog at December 31, 2021 and 2020:


Backlog:	Year Ended December 31,
(Dollars in millions)	2021		2020
Funded	$	2,510	$	2,847
Unfunded	351		444
Total Backlog	$	2,861	$	3,291

Schedule of Disaggregation of Revenue

We believe these categories best depict how the nature, amount, timing and uncertainty of AST revenue and cash flows are affected by economic factors:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Revenue by Geographical Region
United States	$	880	$	821	$	711
International	76		107		58
Intersegment Sales	14		12		12
Total	$	970	$	940	$	781
Revenue by Customer Relationship
Prime contractor	$	505	$	443	$	372
Subcontractor	451		485		397
Intersegment Sales	14		12		12
Total	$	970	$	940	$	781
Revenue by Contract Type
Firm Fixed Price	$	822	$	813	$	614
Flexibly Priced(1)	134		115		155
Intersegment Sales	14		12		12
Total	$	970	$	940	$	781

________________

(1)Includes revenue derived from time-and-materials contracts.

We believe these categories best depict how the nature, amount, timing and uncertainty of NC&C revenue and cash flows are affected by economic factors:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Revenue by Geographical Region
United States	$	928	$	942	$	988
International	37		75		41
Intersegment Sales	7		9		24
Total	$	972	$	1,026	$	1,053
Revenue by Customer Relationship
Prime contractor	$	704	$	620	$	655
Subcontractor	261		397		374
Intersegment Sales	7		9		24
Total	$	972	$	1,026	$	1,053
Revenue by Contract Type
Firm Fixed Price	$	845	$	903	$	956
Flexibly Priced(1)	120		114		73
Intersegment Sales	7		9		24
Total	$	972	$	1,026	$	1,053

________________

(1)Includes revenue derived from time-and-materials contracts.

We believe these categories best depict

how the nature, amount, timing and uncertainty of IMS revenue and cash flows are affected by economic factors:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Revenue by Geographical Region
United States	$	913	$	792	$	895
International	45		41		21
Intersegment Sales	1		1		1
Total	$	959	$	834	$	917
Revenue by Customer Relationship
Prime contractor	$	174	$	283	$	442
Subcontractor	784		550		474
Intersegment Sales	1		1		1
Total	$	959	$	834	$	917
Revenue by Contract Type
Firm Fixed Price	$	831	$	692	$	763
Flexibly Priced(1)	127		141		153
Intersegment Sales	1		1		1
Total	$	959	$	834	$	917

________________

(1)Includes revenue derived from time-and-materials contracts.

Accounts Receivable (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following:


	December 31,
(Dollars in millions)	2021		2020
Accounts receivable	$	157	$	104
Less allowance for doubtful accounts	(1)		(2)
Accounts receivable, net	$	156	$	102

Inventories (Tables)

12 Months Ended

Dec. 31, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories consists of the following:


	December 31,
(Dollars in millions)	2021		2020
Raw materials	$	43	$	52
Work in progress	161		193
Finished goods	1		2
Total	$	205	$	247

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment by major asset class consists of the following:


	December 31,
(Dollars in millions)	2021		2020
Land, buildings and improvements	$	312	$	294
Plant and machinery	191		186
Equipment and other	298		276
Total property, plant and equipment, at cost	801		756
Less accumulated depreciation	(437)		(401)
Total property, plant and equipment, net	$	364	$	355

Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2021

Other Liabilities Disclosure [Abstract]

Other Liabilities

A summary of significant other liabilities by balance sheet caption follows:


	December 31,
(Dollars in millions)	2021		2020
Salaries, wages and accrued bonuses	$	70	$	61
Fringe benefits	74		71
Litigation	10		10
Restructuring costs	4		1
Provision for contract losses	48		44
Operating lease liabilities	24		22
Other(1)	65		58
Total other current liabilities	$	295	$	267
Retirement benefits	$	—	$	—
Operating lease liabilities	$	73	$	81
Other(2)	1		11
Total other noncurrent liabilities	$	74	$	92

________________

(1)Consists primarily of taxes payable, environmental remediation reserves and warranty reserves. See Note 15: Commitments and Contingencies for more information regarding the warranty provision.

(2)Consists primarily of workers’ compensation liabilities and certain payroll taxes deferred under the CARES Act.

Goodwill (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill by reportable segment are as follows:


(Dollars in millions)	AST		NC&C		IMS		Total
Balance at January 1, 2020 (1)	$	363	$	275	$	419	$	1,057
Acquisitions	—		—		—		—
Balance at December 31, 2020	363		275		419		1,057
Acquisitions	14		—		—		14
Balance at December 31, 2021	$	377	$	275	$	419	$	1,071

________________

(1)Goodwill is reported net of $1,313 million, $1,049 million and $606 million of accumulated impairments as of January 2020 for the AST, NC&C and IMS segments, respectively.

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets


	December 31, 2021						December 31, 2020
(Dollars in millions)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	$	957	$	(908)	$	49	$	957	$	(899)	$	58
Patents and licenses	9		(6)		3		7		(5)		2
Total intangible assets	$	966	$	(914)	$	52	$	964	$	(904)	$	60

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated annual amortization expense related to intangible assets for the subsequent five years is as follows:


(in millions) Year Ending December 31,	Estimated Annual Amortization
2022	$	9
2023	9
2024	9
2025	9
2026	9

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Schedule of Lease Cost

The Company’s total lease cost consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020
Operating lease cost(1)	$	26	$	24
Finance lease cost(2):
Amortization of right-of-use assets	8		7
Interest on lease liabilities	5		5
Total lease cost	$	39	$	36

________________

Schedule of Balance Sheet Information

Supplemental balance sheet information related to leases is as follows:


	December 31,
(Dollars in millions)	2021		2020
ROU assets
Operating leases(1)	$	84	$	88
Finance leases(2)	104		108
Total leased assets	$	188	$	196
Liabilities
Current lease liabilities:
Operating(1)	$	24	$	22
Finance(2)	6		5
Noncurrent lease liabilities:
Operating(1)	73		81
Finance(2)	107		109
Total lease liabilities	$	210	$	217

________________

Schedule of Supplemental Cash Flows Information

Supplemental cash flow information related to leases is as follows:


	Year Ended December 31,
(Dollars in millions)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	27	$	27
Operating cash flows from finance leases	5		5
Financing cash flows from finance leases	5		4
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	18		16
Finance leases	4		46

Schedule of Weighted Average Remaining Lease Term

Lease terms and discount rates related to leases are as follows:


	December 31,
	2021		2020
Weighted-average remaining lease term:
Operating leases	5 years		5 years
Finance leases	15 years		16 years
Weighted-average discount rate:
Operating leases	4.3	%	4.4	%
Finance leases	4.6	%	4.5	%

Maturities of Lease Liability

As of December 31, 2021, future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows:


(Dollars in millions)	Operating Leases		Finance Leases
Year Ending December 31,
2022	$	27	$	11
2023	25		11
2024	19		11
2025	12		10
2026	9		10
Thereafter	14		104
Total lease payments	106		157
Less: imputed interest	9		44
Present value of lease liabilities	97		113
Less: current maturities	24		6
Long-term lease obligations	$	73	$	107

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Earnings (loss) before taxes consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Earnings before taxes
Domestic	$	203	$	112	$	89
Foreign	(3)		—		6
Total	$	200	$	112	$	95

Schedule of Income Tax Provision (Benefit)

Income tax provision (benefit) consists of the following:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
Current:
Federal	$	(1)	$	—	$	—
State	—		3		2
Foreign	1		2		1
	—		5		3
Deferred:
Federal	43		24		17
State	5		—		—
Foreign	(2)		(2)		—
	46		22		17
Total	$	46	$	27	$	20

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation from the statutory federal income tax rate to our effective income tax rate follows:


	Year Ended December 31,
	2021		2020		2019
Statutory federal rate	21.0	%	21.0	%	21.0	%
State rate, net of federal benefit	3.6	%	2.3	%	0.5	%
Foreign rate differential	(0.2)	%	0.5	%	0.5	%
Research & development credit, net of reserves	(0.2)	%	(0.7)	%	(2.3)	%
Nondeductible expenses	0.9	%	0.4	%	0.7	%
Global intangible low taxed income	—	%	0.2	%	1.0	%
Change in valuation allowance	(1.4)	%	(2.5)	%	0.2	%
Change in tax reserves	(0.4)	%	2.2	%	0.2	%
Other	(0.3)	%	0.7	%	(0.7)	%
Effective tax rate	23.0	%	24.1	%	21.1	%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 is as follows:


	December 31,
(Dollars in millions)	2021		2020
Deferred tax assets:
Federal net operating losses	$	5	$	18
State net operating losses	16		21
Tax credit carryforwards	21		23
Accrued compensation and benefits	23		26
Contract liabilities	21		20
Accrued expenses	5		5
Pension and post-retirement plans	18		24
Inventory capitalization	5		8
Other	5		8
Disallowed interest	1		1
Total gross deferred tax assets	120		154
Less valuation allowance	10		11
Deferred tax assets	110		143
Deferred tax liabilities:
Intangible assets	(41)		(44)
Fixed assets	(12)		(11)
Other	(1)		(1)
Deferred tax liabilities	(54)		(56)
Net deferred tax asset	$	56	$	87

Schedule of Unrecognized Tax Benefits

The table below summarizes the activity associated with our unrecognized tax benefits:


(Dollars in millions)	2021		2020		2019
Balance at January 1,	$	25	$	18	$	14
Increase related to prior year tax positions	—		3		3
Increase related to current year tax positions	1		4		1
Decreases related to prior year tax positions	(4)		—		—
Lapse of statute of limitations	—		—		—
Settlements with taxing authorities	—		—		—
Balance at December 31,	$	22	$	25	$	18

Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Debt

The Company’s debt consists of the following:


	December 31,
(Dollars in millions)	2021		2020
7.5% Term loan due November 30, 2023(1)	139		139
5.0% Daylight term loan due October 15, 2024(1)	78		98
Finance lease and other	161		163
Short-term borrowings	15		27
Total debt principal	393		427
Less unamortized debt issuance costs and discounts	—		—
Total debt, net	393		427
Less short-term borrowings and current portion of long-term debt	(41)		(53)
Total long-term debt	$	352	374

________________

(1)The Company’s debt with related parties consists of two term loans and a working capital credit facility with US Holding, as described below.

Schedule of Maturities of Long-term Debt

Maturities of long-term debt as of December 31, 2021 are as follows:


(Dollars in millions)
Year Ending December 31,
2022	$	41
2023	171
2024	40
2025	7
2026	7
Thereafter	127
Total principal payments	$	393

Pension and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

The following tables provide certain information regarding the Company's pension, postretirement and supplemental retirement plans as of December 31, 2021 and 2020:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Change in benefit obligation:
Benefit obligation at beginning of year	$	226	$	261	$	2	$	3	$	23	$	24
Service cost	—		—		—		—		—		—
Interest cost	5		7		—		—		1		1
Plan participants' contributions	—		—		—		—		—		—
Actuarial (gain) loss	(3)		(10)		—		(1)		(1)		(1)
Benefits paid	(13)		(10)		—		—		(1)		(1)
(Gain) loss due to settlement	—		(21)		—		—		—		—
Plan amendments	—		—		—		—		—		—
Exchange rate differences and other	—		(1)		—		—		—		—
Benefit obligation at end of year	$	215	$	226	$	2	$	2	$	22	$	23
Change in plan assets:
Fair value of plan assets at beginning of year	$	151	$	158	$	1	$	1	$	11	$	10
Actual return on plan assets	15		19		—		—		1		1
Plan participants' contributions	—		—		—		—		—		—
Employer contributions	13		6		—		—		1		1
Benefits paid	(13)		(10)		—		—		(1)		(1)
(Loss) gain due to settlement	—		(21)		—		—		—		—
Exchange rate differences and other	—		(1)		—		—		—		—
Fair value of plan assets at end of year	166		151		1		1		12		11
Contributions between measurement date and year end	—		—		—		—		—		—
Funded status of the plans at year end	$	(49)	$	(75)	$	(1)	$	(1)	$	(10)	$	(12)

Schedule of Amounts Recognized in Balance Sheet

The amounts recognized in the Consolidated Balance Sheet, as of December 31, 2021 and 2020 consist of:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Noncurrent assets	$	—	$	—	$	1	$	1	$	—	$	—
Current liabilities	—		—		—		—		—		—
Noncurrent liabilities	(49)		(75)		(2)		(2)		(10)		(11)
Net liability recognized	$	(49)	$	(75)	$	(1)	$	(1)	$	(10)	$	(11)

Schedule of Amounts Recognized in Other Comprehensive Earnings

Amounts recognized in accumulated other comprehensive income (before taxes) at December 31, 2021 and 2020 consist of:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2021		2020		2021		2020
Prior service cost	$	—	$	—	$	—	$	—	$	—	$	—
Net actuarial loss (gain)	40		52		(1)		(2)		6		7
Total amount recognized in accumulated other comprehensive losses (earnings)	$	40	$	52	$	(1)	$	(2)	$	6	$	7

Schedule of Pension Plans with ABO and PBO in Excess of the Fair Value of Plan Assets

The table below presents information for the pension plans with an ABO and PBO in excess of the fair value of plan assets at December 31, 2021 and 2020.


(Dollars in millions)	December 31, 2021		December 31, 2020
Projected benefit obligation	$	237	$	249
Accumulated benefit obligation	237		249
Fair value of plan assets	178		162

Defined Benefit Plan, Assumptions

The following table summarizes the weighted average actuarial assumptions used to determine our benefit obligations at December 31, 2021 and 2020:


	Defined Benefit Pension Plans				Postretirement Benefit Plans				Supplemental Retirement Plans
	2021		2020		2021		2020		2021		2020
Rate assumptions
Discount rate	2.8	%	2.4	%	2.6	%	4.3	%	2.8	%	2.5	%
Increase in future compensation levels	N/A		N/A		N/A		N/A		N/A		N/A
Expected long-term return on plan assets	5.9	%	6.4	%	5.9	%	6.4	%	N/A		N/A
Health care trend rate assumed for next year	N/A		N/A		4.6	%	5.4	%	N/A		N/A
Ultimate health care trend rate	N/A		N/A		4.3	%	4.3	%	N/A		N/A
Year rate reaches ultimate trend rate	N/A		N/A		2031		2031		N/A		N/A

The following table summarizes the weighted average actuarial assumptions used to determine our net periodic cost of the plans for the years ended December 31, 2021, 2020 and 2019:


	Defined Benefit Pension Plans						Postretirement Benefit Plans						Supplemental Retirement Plans
	2021		2020		2019		2021		2020		2019		2021		2020		2019
Rate assumptions
Discount rate	2.8	%	2.7	%	3.6	%	2.1	%	2.8	%	3.3	%	2.4	%	2.4	%	3.5	%
Expected long - term return on plan assets	6.4	%	6.3	%	6.9	%	6.4	%	5.8	%	5.7	%	N/A		N/A		N/A
Increase in future compensation levels	N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A		N/A
Health care trend rate assumed for next year	N/A		N/A		N/A		5.8	%	6.0	%	6.5	%	N/A		N/A		N/A
Ultimate health care trend rate	N/A		N/A		N/A		4.5	%	4.5	%	4.5	%	N/A		N/A		N/A
Year rate reaches ultimate trend rate	N/A		N/A		N/A		2030		2029		2027		N/A		N/A		N/A

Schedule of Net Benefit Costs


	Defined Benefit Pension Plans						Postretirement Benefit Plans						Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2019		2021		2020		2019		2021		2020		2019
Service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Interest cost	$	5	$	7	$	7	$	—	$	—	$	—	$	1	$	1	$	1
Expected return on plan assets	$	(7)	$	(8)	$	(7)	$	—	$	—	$	—	$	—	$	—	$	—
Amortization of net actuarial loss (gain)	$	2	$	3	$	2	$	(1)	$	(1)	$	—	$	—	$	—	$	—
Amortization of prior service cost	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Settlement expense (income)	$	—	$	3	$	—	$	—	$	—	$	—			$	—	$	—
Net periodic benefit cost	$	—	$	5	$	2	$	(1)	$	(1)	$	—	$	1	$	1	$	1

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income


	Defined Benefit Pension Plans						Postretirement Benefit Plans						Supplemental Retirement Plans
(Dollars in millions)	2021		2020		2019		2021		2020		2019		2021		2020		2019
Net actuarial (gain) loss	$	(11)	$	(21)	$	19	$	—	$	(1)	$	(1)	$	(1)	$	(1)	$	4
Prior service cost	—		—		—		—		—		—		—		—		—
Amortization of net actuarial (loss) gain from prior years	(2)		(6)		(2)		1		1		—		—		—		—
Amortization of prior service cost	—		—		—		—		—		—		—		—		—
Other(1)	—		—		—		—		—		—		—		—		—
Total recognized in other comprehensive income	$	(13)	$	(27)	$	17	$	1	$	—	$	(1)	$	(1)	$	(1)	$	4

________________

(1) Includes foreign exchange translation.

Schedule of Allocation of Plan Assets

The table below represents all of the Company's funded pension plans' and postretirement benefit plans' weighted-average asset allocation at December 31, 2021 and 2020 by asset category:


	Asset Allocation
	2021		2020
Asset Category
Equity securities	41	%	55	%
Debt securities	47	%	33	%
Real estate	6	%	6	%
Other, primarily cash and cash equivalents, and hedge funds	6	%	6	%

The table below presents the target allocation ranges for each major asset category for the Company's benefit plans for the years ended December 31, 2021 and 2020.


	Target Asset Allocation Range
	2021	2020
Asset Category
Equity securities	40% - 60%	40% - 60%
Debt securities	30% - 50%	40% - 50%
Real estate	5% - 10%	5% - 10%
Other, primarily cash and cash equivalents and hedge funds	5% - 10%	5% - 10%

Schedule of Fair Value of Category of Plan Assets


	December 31, 2021
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Asset category
Investments measured at fair value:	$	—	$	—	$	—	$	—
Cash and cash equivalents	$	11	$	—	$	—	$	11
Equity securities	6		—		—		6
Debt securities	—		—		—		—
Total	$	17	$	—	$	—	$	17
Investments measured at NAV:
Collective trust funds	—		—		—		162
Equity and fixed income funds	—		—		—		—
Total	$	17	$	—	$	—	$	179


	December 31, 2020
(Dollars in millions)	Level 1		Level 2		Level 3		Total
Asset category
Investments measured at fair value:
Cash and cash equivalents	$	9	$	—	$	—	$	9
Equity securities	6		—		—		6
Debt securities	—		—		—		—
Total	$	15	$	—	$	—	$	15
Investments measured at NAV:
Collective trust funds	—		—		—		148
Equity and fixed income funds	—		—		—		—
Total	$	15	$	—	$	—	$	163

Schedule of Expected Benefit Payments

The following table presents expected pension and postretirement benefit payments over the next 10 years:


(Dollars in millions)	Defined Benefit Pension Plans		Postretirement Benefit Plans		Supplemental Retirement Plans
Year Ending December 31,
2022	$	12	$	—	$	1
2023	12		—		1
2024	13		—		1
2025	13		—		1
2026	13		—		1
2027-2031	63		—		6

Equity Method Investments (Tables)

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Schedule of Equity Method Investments

Below is a list of the entities accounted for under the equity method and recorded in other noncurrent assets on our Consolidated Balance Sheet:


	% of Ownership				Carrying Value
(Dollars in millions)	2021		2020		2021		2020
Advanced Acoustics Concepts, LLC	51	%	51	%	$	27	$	25

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Schedule of Restructuring and Related Costs

See the table below for a breakout of restructuring costs incurred by segment and by nature of cost incurred:


	Year Ended December 31,
(Dollars in millions)	2021		2020		2019
AST
Severance	$	3	$	—	$	—
Facility abandonment	—		—		3
Inventory	—		—		—
Total AST	3		—		3
NC&C
Severance	2		6		1
Facility abandonment	—		—		—
Inventory	—		—		2
Total NC&C	2		6		3
IMS
Severance	—		—		2
Facility abandonment	—		6		6
Inventory	—		—		5
Total IMS	—		6		13
Corporate
Severance	—		—		—
Facility abandonment	—		—		1
Inventory	—		—		—
Total Corporate	—		—		1
Total	$	5	$	12	$	20

The following is a summary of changes in the restructuring provision balance during the years ended December 31, 2020 and 2021:


(Dollars in millions)
Balance at January 1, 2020	$	4
Additional provision	12
Reversal and utilization	(15)
Balance at December 31, 2020	1
Additional provision	5
Reversal and utilization	(2)
Balance at December 31, 2021	$	4

Schedule of Product Warranty Liability

The following is a summary of changes in the product warranty balances during the years ended December 31, 2020 and 2021:


(Dollars in millions)
Balance at January 1, 2020	$	13
Additional provision	16
Reversal and utilization	(12)
Balance at December 31, 2020	17
Additional provision	17
Reversal and utilization	(15)
Balance at December 31, 2021	$	19

Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Schedule of Total Revenues and Intersegment Revenues by Segment

Total revenues and intersegment revenues by segment for the years ended December 31, 2021, 2020 and 2019 consists of the following:


(Dollars in millions)	2021		2020		2019
AST	$	970	$	940	$	781
NC&C	972		1,026		1,053
IMS	959		834		917
Corporate & Eliminations	(22)		(22)		(37)
Total revenue	$	2,879	$	2,778	$	2,714


(Dollars in millions)	2021		2020		2019
AST	$	14	$	12	$	12
NC&C	7		9		24
IMS	1		1		1
Total intersegment revenue	$	22	$	22	$	37

Schedule of Depreciation, Assets by Segment and EBITDA Reconciliation to Net Earnings

Depreciation by segment as of December 31, 2021, 2020 and 2019 consists of the following:


(Dollars in millions)	2021		2020		2019
AST	$	20	$	19	$	19
NC&C	13		11		10
IMS	16		14		13
Total depreciation	$	49	$	44	$	42

Total assets by segment as of December 31, 2021 and 2020 consist of the following:


(Dollars in millions)	2021		2020(1)
AST	$	929	$	864
NC&C	616		699
IMS	1,145		1,018
Corporate & Eliminations	379		375
Total assets	$	3,069	$	2,956

(1) The 2020 amounts have been adjusted to reflect the correction of the allocation of certain assets within each segment.

Reconciliation of reportable segment Adjusted EBITDA to Net Earnings (loss) consists of the following:


(Dollars in millions)	2021		2020		2019
Adjusted EBITDA
AST	$	125	$	123	$	94
NC&C	95		90		75
IMS	90		55		63
Corporate & Eliminations	—		—		2
Total Adjusted EBITDA	$	310	$	268	$	234
Amortization of intangibles	(9)		(9)		(9)
Depreciation	(49)		(44)		(42)
Restructuring costs	(5)		(12)		(20)
Interest expense	(35)		(64)		(65)
Deal related transaction costs	(5)		(9)		—
Acquisition and divestiture related expenses	—		—		—
Foreign exchange	(1)		(1)		—
COVID-19 response costs	(6)		(12)		—
Non-service pension expense	—		(5)		(3)
Other one-time non-operational events	—		—		—
Income tax provision	(46)		(27)		(20)
Net earnings	$	154	$	85	$	75

Summary of Significant Accounting Policies - Concentration Risk (Details) - segment	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Concentration Risk [Line Items]
Number of reportable segments	3
U.S. Department Of Defense \| Revenue from Contract with Customer Benchmark \| Government Contracts Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	86.00%	84.00%
International And Commercial Customers \| Revenue from Contract with Customer Benchmark \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	14.00%	16.00%

Summary of Significant Accounting Policies - Research and Development Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Research and development expense	$ 48	$ 41	$ 31

Summary of Significant Accounting Policies - Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2021
Plant and machinery \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	3 years
Plant and machinery \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	10 years
Building and Building Improvements \| Minimum
Property, Plant and Equipment [Line Items]
Useful life (in years)	15 years
Building and Building Improvements \| Maximum
Property, Plant and Equipment [Line Items]
Useful life (in years)	40 years

Summary of Significant Accounting Policies - Goodwill (Details) - reportingUnit	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Number of reporting units	7	7

Summary of Significant Accounting Policies - Earnings Per Share (Details)	1 Months Ended
	Feb. 28, 2021 shares	Dec. 31, 2021 shares	Jan. 31, 2021 shares	Dec. 31, 2020 shares
Accounting Policies [Abstract]
Stockholders' Equity Note, Stock Split, Conversion Ratio	1,450,000
Basic and Diluted common shares outstanding (in shares)	145,000,000.00	145,000,000	100	145,000,000

Summary of Significant Accounting Policies - Financial Instruments (Details)	Dec. 31, 2021
Term Loan \| Line of Credit
Debt Instrument [Line Items]
Stated interest rate (as percent)	7.50%

Summary of Significant Accounting Policies - Acquisitions (Details) - Ascendant Engineering Solutions $ in Millions	Jul. 28, 2021 USD ($)
Business Acquisition [Line Items]
Business combination, purchase price	$ 11
Business combination, contingent consideration	$ 5

Revenue from Contracts with Customers - Estimate at Completion Adjustments (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Change in Accounting Estimate [Line Items]
Revenue	$ 2,879	$ 2,778	$ 2,714
Contracts Accounted for under Percentage of Completion
Change in Accounting Estimate [Line Items]
Revenue	$ (34)	$ (77)	$ (55)
Total % of Revenue	1.00%	3.00%	2.00%

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 743	$ 672
Contract liabilities	174	177
Net contract assets	$ 569	$ 495

Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract with customer, liability, revenue recognized	$ 108	$ 104

Revenue from Contracts with Customers - Remaining Performance Obligations, Backlog Schedule (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Funded	$ 2,510	$ 2,847
Unfunded	351	444
Total Backlog	$ 2,861	$ 3,291

Revenue from Contracts with Customers - Remaining Performance Obligations, Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01	Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	62.50%
Revenue, remaining performance obligation, expected timing of satisfaction, period	12 months

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 2,879	$ 2,778	$ 2,714
Intersegment Sales
Disaggregation of Revenue [Line Items]
Revenue	(22)	(22)	(37)
AST \| Prime contractor
Disaggregation of Revenue [Line Items]
Revenue	505	443	372
AST \| Subcontractor
Disaggregation of Revenue [Line Items]
Revenue	451	485	397
AST \| Firm Fixed Price
Disaggregation of Revenue [Line Items]
Revenue	822	813	614
AST \| Flexibly Priced
Disaggregation of Revenue [Line Items]
Revenue	134	115	155
AST \| Intersegment Sales
Disaggregation of Revenue [Line Items]
Revenue	14	12	12
AST \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	970	940	781
NC&C \| Prime contractor
Disaggregation of Revenue [Line Items]
Revenue	704	620	655
NC&C \| Subcontractor
Disaggregation of Revenue [Line Items]
Revenue	261	397	374
NC&C \| Firm Fixed Price
Disaggregation of Revenue [Line Items]
Revenue	845	903	956
NC&C \| Flexibly Priced
Disaggregation of Revenue [Line Items]
Revenue	120	114	73
NC&C \| Intersegment Sales
Disaggregation of Revenue [Line Items]
Revenue	7	9	24
NC&C \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	972	1,026	1,053
IMS \| Prime contractor
Disaggregation of Revenue [Line Items]
Revenue	174	283	442
IMS \| Subcontractor
Disaggregation of Revenue [Line Items]
Revenue	784	550	474
IMS \| Firm Fixed Price
Disaggregation of Revenue [Line Items]
Revenue	831	692	763
IMS \| Flexibly Priced
Disaggregation of Revenue [Line Items]
Revenue	127	141	153
IMS \| Intersegment Sales
Disaggregation of Revenue [Line Items]
Revenue	1	1	1
IMS \| Operating Segments
Disaggregation of Revenue [Line Items]
Revenue	959	834	917
United States \| AST
Disaggregation of Revenue [Line Items]
Revenue	880	821	711
United States \| NC&C
Disaggregation of Revenue [Line Items]
Revenue	928	942	988
United States \| IMS
Disaggregation of Revenue [Line Items]
Revenue	913	792	895
International \| AST
Disaggregation of Revenue [Line Items]
Revenue	76	107	58
International \| NC&C
Disaggregation of Revenue [Line Items]
Revenue	37	75	41
International \| IMS
Disaggregation of Revenue [Line Items]
Revenue	$ 45	$ 41	$ 21

Accounts Receivable (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Accounts receivable	$ 157	$ 104
Less allowance for doubtful accounts	(1)	(2)
Accounts receivable, net	$ 156	$ 102

Accounts Receivable - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Collection of sold receivables	$ 15	$ 27

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 43	$ 52
Work in progress	161	193
Finished goods	1	2
Total	$ 205	$ 247

Property, Plant and Equipment - Components of Property, Plant and Equipment (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 801	$ 756
Less accumulated depreciation	(437)	(401)
Total property, plant and equipment, net	364	355
Land, buildings and improvements
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	312	294
Plant and machinery
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	191	186
Equipment and other
Property, Plant and Equipment [Line Items]
Total property, plant and equipment, at cost	$ 298	$ 276

Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 49	$ 44	$ 42
Finance leases	$ 104	$ 108

Other Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Other Liabilities Disclosure [Abstract]
Salaries, wages and accrued bonuses	$ 70	$ 61
Fringe benefits	74	71
Litigation	10	10
Restructuring costs	4	1
Provision for contract losses	48	44
Operating lease liabilities	24	22
Other	$ 65	$ 58
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Total other current liabilities	Total other current liabilities
Total other current liabilities	$ 295	$ 267
Retirement benefits	0	0
Operating lease liabilities	73	81
Other	$ 1	$ 11
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Total other noncurrent liabilities	Total other noncurrent liabilities
Total other noncurrent liabilities	$ 74	$ 92

Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Beginning balance	$ 1,057	$ 1,057
Acquisitions	14	0
Ending balance	1,071	1,057
AST
Goodwill [Roll Forward]
Beginning balance	363	363
Acquisitions	14	0
Ending balance	377	363
NC&C
Goodwill [Roll Forward]
Beginning balance	275	275
Acquisitions	0	0
Ending balance	275	275
IMS
Goodwill [Roll Forward]
Beginning balance	419	419
Acquisitions	0	0
Ending balance	$ 419	$ 419

Goodwill - Narrative (Details) $ in Millions	Jan. 31, 2020 USD ($)
AST
Goodwill [Line Items]
Accumulated impairment	$ 1,313
NC&C
Goodwill [Line Items]
Accumulated impairment	1,049
IMS
Goodwill [Line Items]
Accumulated impairment	$ 606

Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 966	$ 964
Accumulated Amortization	(914)	(904)
Net Carrying Amount	52	60
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	957	957
Accumulated Amortization	(908)	(899)
Net Carrying Amount	49	58
Patents and licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	9	7
Accumulated Amortization	(6)	(5)
Net Carrying Amount	$ 3	$ 2

Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 9	$ 9	$ 9
Minimum \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	10 years
Minimum \| Patents and licenses
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	5 years
Maximum \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	15 years
Maximum \| Patents and licenses
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible asset, useful life	10 years

Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Millions	Dec. 31, 2021 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 9
2023	9
2024	9
2025	9
2026	$ 9

Leases - Schedule of Lease Cost (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease cost	$ 26	$ 24
Finance lease cost:
Amortization of right-of-use assets	8	7
Interest on lease liabilities	5	5
Total lease cost	39	36
Short-term lease cost	$ 3	$ 5

Leases - Schedule of Balance Sheet Information (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Right-of-Use Assets [Abstract]
Operating lease	$ 84	$ 88
Finance lease asset	104	108
Total leased assets	188	196
Current lease liabilities:
Current lease liability, operating	24	22
Current lease liability, finance	6	5
Noncurrent lease liabilities:
Noncurrent lease liabilities, operating	73	81
Noncurrent lease liabilities, finance	107	109
Total lease liabilities	$ 210	$ 217
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other noncurrent assets	Other noncurrent assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	us-gaap:OtherLiabilitiesCurrent	us-gaap:OtherLiabilitiesCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property plant and equipment, net	Property plant and equipment, net
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Short-term borrowings and current portion of long-term debt	Short-term borrowings and current portion of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	us-gaap:OtherLiabilitiesNoncurrent	us-gaap:OtherLiabilitiesNoncurrent

Leases - Schedule of Supplemental Cash Flows Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 27	$ 27
Operating cash flows from finance leases	5	5
Financing cash flows from finance leases	5	4
Right-Of-Use Asset Obtained In Exchange For Lease Liability [Abstract]
Operating leases	18	16
Finance leases	$ 4	$ 46

Leases - Weighted Average Lease Term and Discount Rate (Details)	Dec. 31, 2021	Dec. 31, 2020
Weighted-average remaining lease term:
Operating leases	5 years	5 years
Finance leases	15 years	16 years
Weighted-average discount rate:
Operating leases	4.30%	4.40%
Finance leases	4.60%	4.50%

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2022	$ 27
2023	25
2024	19
2025	12
2026	9
Thereafter	14
Total lease payments	106
Less: imputed interest	9
Present value of lease liabilities	97
Less: current maturities	24	$ 22
Long-term lease obligations	73	81
Finance Lease, Liability, Payment, Due [Abstract]
2022	11
2023	11
2024	11
2025	10
2026	10
Thereafter	104
Total lease payments	157
Less: imputed interest	44
Present value of lease liabilities	113
Less: current maturities	6	5
Long-term lease obligations	$ 107	$ 109

Income Taxes - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings before taxes
Domestic	$ 203	$ 112	$ 89
Foreign	(3)	0	6
Earnings before taxes	$ 200	$ 112	$ 95

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=123384075&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI http://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI http://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI http://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ (1)	$ 0	$ 0
State	0	3	2
Foreign	1	2	1
Current income tax provision	0	5	3
Deferred:
Federal	43	24	17
State	5	0	0
Foreign	(2)	(2)	0
Deferred income tax provision (benefit)	46	22	17
Total	$ 46	$ 27	$ 20

Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Statutory federal rate	21.00%	21.00%	21.00%
State rate, net of federal benefit	3.60%	2.30%	0.50%
Foreign rate differential	(0.20%)	0.50%	0.50%
Research & development credit, net of reserves	(0.20%)	(0.70%)	(2.30%)
Nondeductible expenses	0.90%	0.40%	0.70%
Global intangible low taxed income	0.00%	0.20%	1.00%
Change in valuation allowance	(1.40%)	(2.50%)	0.20%
Change in tax reserves	(0.40%)	2.20%	0.20%
Other	(0.30%)	0.70%	(0.70%)
Effective tax rate	23.00%	24.10%	21.10%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Federal net operating losses	$ 5	$ 18
State net operating losses	16	21
Tax credit carryforwards	21	23
Accrued compensation and benefits	23	26
Contract liabilities	21	20
Accrued expenses	5	5
Pension and post-retirement plans	18	24
Inventory capitalization	5	8
Other	5	8
Disallowed interest	1	1
Total gross deferred tax assets	120	154
Less valuation allowance	10	11
Deferred tax assets	110	143
Deferred tax liabilities:
Intangible assets	(41)	(44)
Fixed assets	(12)	(11)
Other	(1)	(1)
Deferred tax liabilities	(54)	(56)
Net deferred tax asset	$ 56	$ 87

Income Taxes - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Tax deferred asset	$ 11	$ 14
Unrecognized tax benefits	22	25	$ 18	$ 14
Deferred Tax Assets
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	15	22	$ 16
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	239	327
Internal Revenue Service (IRS) \| Domestic Tax Authority
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	28	$ 131
Operating loss carryforwards, limitations on use	$ 28

Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 25	$ 18	$ 14
Increase related to prior year tax positions	0	3	3
Increase related to current year tax positions	1	4	1
Decreases related to prior year tax positions	(4)	0	0
Lapse of statute of limitations	0	0	0
Settlements with taxing authorities	0	0	0
Ending balance	$ 22	$ 25	$ 18

Debt - Schedule of Long-Term Debt (Details) $ in Millions	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($)	Jan. 31, 2009
Debt Instrument [Line Items]
Finance lease and other	$ 161	$ 163
Short-term borrowings	15	27
Total debt principal	393	427
Less unamortized debt issuance costs and discounts	0	0
Total debt, net	393	427
Less short-term borrowings and current portion of long-term debt	(41)	(53)
Total long-term debt	$ 352	374
7.5% Term Loan due November 30, 2023 \| Notes Payable, Other Payables
Debt Instrument [Line Items]
Stated interest rate (as percent)	7.50%		7.50%
Long-term debt, gross	$ 139	$ 139
5.0% Daylight Term Loan Due October 15, 2024 \| Notes Payable, Other Payables
Debt Instrument [Line Items]
Stated interest rate (as percent)	5.00%	5.00%
Long-term debt, gross	$ 78	$ 98
Term Loan \| Notes Payable, Other Payables \| Affiliated Entity \| US Holdings
Debt Instrument [Line Items]
Number of term loans \| loan	2

Debt - Narrative (Details) - USD ($)	12 Months Ended
Debt - Narrative (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Apr. 30, 2018	Jun. 30, 2017	Jan. 31, 2009
Debt Instrument [Line Items]
Finance lease	$ 113,000,000
Other financing liability	48,000,000
Current lease liability, finance	6,000,000	$ 5,000,000
Collection of sold receivables	15,000,000	27,000,000
Interest expense	(35,000,000)	(64,000,000)	$ (65,000,000)
Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Credit limit	450,000,000	450,000,000
Line of credit outstanding	$ 0	$ 0
Line of Credit \| Revolving Credit Facility \| LIBOR
Debt Instrument [Line Items]
Variable rate percentage	3.50%	3.50%
Commitment fee percentage	0.25%
7.5% Term Loan due November 30, 2023 \| Notes Payable, Other Payables
Debt Instrument [Line Items]
Principal amount						$ 2,000,000,000
Stated interest rate (as percent)	7.50%					7.50%
Long-term debt, gross	$ 139,000,000	$ 139,000,000
Fair value of long-term debt	$ 182,000,000	182,000,000
Debt forgiven		$ 300,000,000
5.0% Daylight Term Loan Due October 15, 2024 \| Notes Payable, Other Payables
Debt Instrument [Line Items]
Principal amount					$ 137,500,000
Stated interest rate (as percent)	5.00%	5.00%
Long-term debt, gross	$ 78,000,000	$ 98,000,000
4.0% Term Loan due December 31, 2021 \| Notes Payable, Other Payables
Debt Instrument [Line Items]
Stated interest rate (as percent)	4.00%
Long-term debt, gross				$ 50,000,000
Financial Institution Credit Facilities \| Line of Credit
Debt Instrument [Line Items]
Credit limit	$ 65,000,000	60,000,000
Letters of credit outstanding	35,000,000	31,000,000
Financial Institution Credit Facilities \| Line of Credit \| Revolving Credit Facility
Debt Instrument [Line Items]
Credit limit	15,000,000
Line of credit outstanding	$ 0	$ 0
Financial Institution Credit Facilities \| Line of Credit \| Revolving Credit Facility \| LIBOR
Debt Instrument [Line Items]
Variable rate percentage	0.50%

Debt - Schedule of Maturities of Long-term Debt (Details) $ in Millions	Dec. 31, 2021 USD ($)
Debt Disclosure [Abstract]
2022	$ 41
2023	171
2024	40
2025	7
2026	7
Thereafter	127
Total principal payments	$ 393

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Pension and Other Postretirement Benefits - Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Pension Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	$ 226	$ 261
Service cost	0	0	$ 0
Interest cost	5	7	7
Plan participants' contributions	0	0
Actuarial (gain) loss	(3)	(10)
Benefits paid	(13)	(10)
(Gain) loss due to settlement	0	(21)
Plan amendments	0	0
Exchange rate differences and other	0	(1)
Benefit obligation at end of year	215	226	261
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	151	158
Actual return on plan assets	15	19
Plan participants' contributions	0	0
Employer contributions	13	6
Benefits paid	(13)	(10)
(Loss) gain due to settlement	0	(21)
Exchange rate differences and other	0	(1)
Fair value of plan assets at end of year	166	151	158
Contributions between measurement date and year end	0	0
Funded status of the plans at year end	(49)	(75)
Postretirement Benefit Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	2	3
Service cost	0	0	0
Interest cost	0	0	0
Plan participants' contributions	0	0
Actuarial (gain) loss	0	(1)
Benefits paid	0	0
(Gain) loss due to settlement	0	0
Plan amendments	0	0
Exchange rate differences and other	0	0
Benefit obligation at end of year	2	2	3
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	1	1
Actual return on plan assets	0	0
Plan participants' contributions	0	0
Employer contributions	0	0
Benefits paid	0	0
(Loss) gain due to settlement	0	0
Exchange rate differences and other	0	0
Fair value of plan assets at end of year	1	1	1
Contributions between measurement date and year end	0	0
Funded status of the plans at year end	(1)	(1)
Supplemental Retirement Plans
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
Benefit obligation at beginning of year	23	24
Service cost	0	0	0
Interest cost	1	1	1
Plan participants' contributions	0	0
Actuarial (gain) loss	(1)	(1)
Benefits paid	(1)	(1)
(Gain) loss due to settlement	0	0
Plan amendments	0	0
Exchange rate differences and other	0	0
Benefit obligation at end of year	22	23	24
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	11	10
Actual return on plan assets	1	1
Plan participants' contributions	0	0
Employer contributions	1	1
Benefits paid	(1)	(1)
(Loss) gain due to settlement	0	0
Exchange rate differences and other	0	0
Fair value of plan assets at end of year	12	11	$ 10
Contributions between measurement date and year end	0	0
Funded status of the plans at year end	$ (10)	$ (12)

Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	$ 0	$ 0
Current liabilities	0	0
Noncurrent liabilities	(49)	(75)
Net liability recognized	(49)	(75)
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	1	1
Current liabilities	0	0
Noncurrent liabilities	(2)	(2)
Net liability recognized	(1)	(1)
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Noncurrent assets	0	0
Current liabilities	0	0
Noncurrent liabilities	(10)	(11)
Net liability recognized	$ (10)	$ (11)

- Definition

Amount of asset, recognized in statement of financial position, for overfunded defined benefit pension and other postretirement plans.

+ References + Details

Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in Other Comprehensive Earnings (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	$ 0	$ 0
Net actuarial loss (gain)	40	52
Total amount recognized in accumulated other comprehensive losses (earnings)	40	52
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	0	0
Net actuarial loss (gain)	(1)	(2)
Total amount recognized in accumulated other comprehensive losses (earnings)	(1)	(2)
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Prior service cost	0	0
Net actuarial loss (gain)	6	7
Total amount recognized in accumulated other comprehensive losses (earnings)	$ 6	$ 7

Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, expected employer contribution next fiscal year	$ 5	$ 13
Defined benefit plan, expected current year employer contributions deferred under CARES Act		7
Defined contribution plan, employer contribution amount	22	21	$ 19
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 237	$ 249

Pension and Other Postretirement Benefits - Schedule of Pension Plans with ABO and PBO in Excess of the Fair Value of Plan Assets (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Projected benefit obligation	$ 237	$ 249
Accumulated benefit obligation	237	249
Fair value of plan assets	$ 178	$ 162

Pension and Other Postretirement Benefits - Defined Benefit Plan Assumptions Used to Calculate Benefit Obligation (Details)	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.80%	2.40%
Expected long-term return on plan assets	5.90%	6.40%
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.60%	4.30%
Expected long-term return on plan assets	5.90%	6.40%
Health care trend rate assumed for next year	4.60%	5.40%
Ultimate health care trend rate	4.30%	4.30%
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.80%	2.50%

Pension and Other Postretirement Benefits - Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 0	$ 0
Interest cost	5	7	7
Expected return on plan assets	(7)	(8)	(7)
Amortization of net actuarial loss (gain)	2	3	2
Amortization of prior service cost	0	0	0
Settlement expense (income)	0	3	0
Net periodic benefit cost	0	5	2
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0
Interest cost	0	0	0
Expected return on plan assets	0	0	0
Amortization of net actuarial loss (gain)	(1)	(1)	0
Amortization of prior service cost	0	0	0
Settlement expense (income)	0	0	0
Net periodic benefit cost	(1)	(1)	0
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Service cost	0	0	0
Interest cost	1	1	1
Expected return on plan assets	0	0	0
Amortization of net actuarial loss (gain)	0	0	0
Amortization of prior service cost	0	0	0
Settlement expense (income)		0	0
Net periodic benefit cost	$ 1	$ 1	$ 1

Pension and Other Postretirement Benefits - Schedule of Other Changes Recognized in Other Comprehensive Earnings (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	$ (11)	$ (21)	$ 19
Prior service cost	0	0	0
Amortization of net actuarial (loss) gain from prior years	(2)	(6)	(2)
Amortization of prior service cost	0	0	0
Other	0	0	0
Total recognized in other comprehensive income	(13)	(27)	17
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	0	(1)	(1)
Prior service cost	0	0	0
Amortization of net actuarial (loss) gain from prior years	1	1	0
Amortization of prior service cost	0	0	0
Other	0	0	0
Total recognized in other comprehensive income	1	0	(1)
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Net actuarial (gain) loss	(1)	(1)	4
Prior service cost	0	0	0
Amortization of net actuarial (loss) gain from prior years	0	0	0
Amortization of prior service cost	0	0	0
Other	0	0	0
Total recognized in other comprehensive income	$ (1)	$ (1)	$ 4

Pension and Other Postretirement Benefits - Defined Benefit Plan Assumptions Used to Calculate Net Periodic Benefit Cost (Details)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.80%	2.70%	3.60%
Expected long - term return on plan assets	6.40%	6.30%	6.90%
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.10%	2.80%	3.30%
Expected long - term return on plan assets	6.40%	5.80%	5.70%
Health care trend rate assumed for next year	5.80%	6.00%	6.50%
Ultimate health care trend rate	4.50%	4.50%	4.50%
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.40%	2.40%	3.50%

Pension and Other Postretirement Benefits - Schedule of Allocation of Plan Assets (Details)	Dec. 31, 2021	Dec. 31, 2020
Equity securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets, actual allocation percentage	41.00%	55.00%
Equity securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	40.00%	40.00%
Equity securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	60.00%	60.00%
Debt securities
Defined Benefit Plan Disclosure [Line Items]
Plan assets, actual allocation percentage	47.00%	33.00%
Debt securities \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	30.00%	40.00%
Debt securities \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	50.00%	50.00%
Real estate
Defined Benefit Plan Disclosure [Line Items]
Plan assets, actual allocation percentage	6.00%	6.00%
Real estate \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	5.00%	5.00%
Real estate \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	10.00%	10.00%
Other, primarily cash and cash equivalents, and hedge funds
Defined Benefit Plan Disclosure [Line Items]
Plan assets, actual allocation percentage	6.00%	6.00%
Other, primarily cash and cash equivalents, and hedge funds \| Minimum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	5.00%	5.00%
Other, primarily cash and cash equivalents, and hedge funds \| Maximum
Defined Benefit Plan Disclosure [Line Items]
Plan assets, target allocation percentage	10.00%	10.00%

Pension and Other Postretirement Benefits - Schedule of Fair Value of Category of Plan Assets (Details) - Defined Benefit Pension Plans - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 166	$ 151	$ 158
Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	179	163
Fair Value, Inputs, Level 1, 2 and 3
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	17	15
Level 1 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	17	15
Level 2 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Level 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Cash and cash equivalents \| Fair Value, Inputs, Level 1, 2 and 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	11	9
Cash and cash equivalents \| Level 1 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	11	9
Cash and cash equivalents \| Level 2 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Cash and cash equivalents \| Level 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Equity securities \| Fair Value, Inputs, Level 1, 2 and 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6	6
Equity securities \| Level 1 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	6	6
Equity securities \| Level 2 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Equity securities \| Level 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Debt securities \| Fair Value, Inputs, Level 1, 2 and 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Debt securities \| Level 1 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Debt securities \| Level 2 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Debt securities \| Level 3 \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	0	0
Collective trust funds \| Investments measured at NAV: \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	162	148
Equity and fixed income funds \| Investments measured at NAV: \| Fair Value, Recurring
Defined Benefit Plan Disclosure [Line Items]
Fair value of plan assets	$ 0	$ 0

Pension and Other Postretirement Benefits - Schedule of Expected Benefit Payments (Details) $ in Millions	Dec. 31, 2021 USD ($)
Defined Benefit Pension Plans
Defined Benefit Plan Disclosure [Line Items]
2022	$ 12
2023	12
2024	13
2025	13
2026	13
2027-2031	63
Postretirement Benefit Plans
Defined Benefit Plan Disclosure [Line Items]
2022	0
2023	0
2024	0
2025	0
2026	0
2027-2031	0
Supplemental Retirement Plans
Defined Benefit Plan Disclosure [Line Items]
2022	1
2023	1
2024	1
2025	1
2026	1
2027-2031	$ 6

Equity Method Investments - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Equity Method Investments and Joint Ventures [Abstract]
Share of earnings from equity method investments	$ 2	$ 3	$ 2

Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Advanced Acoustics Concepts, LLC
Schedule of Equity Method Investments [Line Items]
Carrying Value	$ 27	$ 25
Advanced Acoustics Concepts, LLC
Schedule of Equity Method Investments [Line Items]
% of Ownership	51.00%	51.00%

Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Product Warranty Liability [Line Items]
Restructuring costs	$ 5	$ 12	$ 20
Minimum
Product Warranty Liability [Line Items]
Product warranty term	1 year
Maximum
Product Warranty Liability [Line Items]
Product warranty term	3 years

Commitment and Contingencies - Schedule of Restructuring and Related Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 5	$ 12	$ 20
Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	1
AST \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	3	0	3
NC&C \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	2	6	3
IMS \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	6	13
Severance \| Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	0
Severance \| AST \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	3	0	0
Severance \| NC&C \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	2	6	1
Severance \| IMS \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	2
Facility abandonment \| Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	1
Facility abandonment \| AST \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	3
Facility abandonment \| NC&C \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	0
Facility abandonment \| IMS \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	6	6
Inventory \| Corporate
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	0
Inventory \| AST \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	0
Inventory \| NC&C \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	0	0	2
Inventory \| IMS \| Operating Segments
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ 0	$ 0	$ 5

Commitment and Contingencies - Schedule of Restructuring Provision (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restructuring Reserve [Roll Forward]
Beginning balance	$ 1	$ 4
Additional provision	5	12	$ 20
Reversal and utilization	(2)	(15)
Ending balance	$ 4	$ 1	$ 4

Commitment and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 17	$ 13
Additional provision	17	16
Reversal and utilization	(15)	(12)
Ending balance	$ 19	$ 17

Related Party Transactions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Related Party Transaction [Line Items]
Related party note receivable	$ 0	$ 115
7.5% Term Loan due November 30, 2023 \| Notes Payable, Other Payables
Related Party Transaction [Line Items]
Debt forgiven		300
Affiliated Entity \| Leonardo S.p.A.
Related Party Transaction [Line Items]
Revenue from related parties	11	26	$ 16
Receivables	2	5
Payables	1	8
Affiliated Entity \| US Holdings \| 7.5% Term Loan due November 30, 2023 \| Notes Payable, Other Payables
Related Party Transaction [Line Items]
Debt forgiven		300
Affiliated Entity \| US Holdings \| Surplus Agreement Receivable
Related Party Transaction [Line Items]
Related party note receivable	$ 0	$ 115
Affiliated Entity \| US Holdings \| Minimum \| Surplus Agreement Receivable
Related Party Transaction [Line Items]
Variable rate spread	0.05%
Affiliated Entity \| US Holdings \| Maximum \| Surplus Agreement Receivable
Related Party Transaction [Line Items]
Variable rate spread	0.20%

Segment Information - Revenues and Intersegment Revenues (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 2,879	$ 2,778	$ 2,714
Operating Segments \| AST
Segment Reporting Information [Line Items]
Revenue	970	940	781
Operating Segments \| NC&C
Segment Reporting Information [Line Items]
Revenue	972	1,026	1,053
Operating Segments \| IMS
Segment Reporting Information [Line Items]
Revenue	959	834	917
Corporate & Eliminations
Segment Reporting Information [Line Items]
Revenue	(22)	(22)	(37)
Corporate & Eliminations \| AST
Segment Reporting Information [Line Items]
Revenue	14	12	12
Corporate & Eliminations \| NC&C
Segment Reporting Information [Line Items]
Revenue	7	9	24
Corporate & Eliminations \| IMS
Segment Reporting Information [Line Items]
Revenue	$ 1	$ 1	$ 1

- Definition

+ References

+ Details

Segment Information - Depreciation and Assets (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Depreciation	$ 49	$ 44	$ 42
Assets	3,069	2,956
AST
Segment Reporting Information [Line Items]
Depreciation	20	19	19
NC&C
Segment Reporting Information [Line Items]
Depreciation	13	11	10
IMS
Segment Reporting Information [Line Items]
Depreciation	16	14	$ 13
Operating Segments \| AST
Segment Reporting Information [Line Items]
Assets	929	864
Operating Segments \| NC&C
Segment Reporting Information [Line Items]
Assets	616	699
Operating Segments \| IMS
Segment Reporting Information [Line Items]
Assets	1,145	1,018
Corporate & Eliminations
Segment Reporting Information [Line Items]
Assets	$ 379	$ 375

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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Reference 2: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
-Topic 852
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-Section 55
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-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Segment Information - EBITDA Reconciliation to Net Earnings (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Adjusted EBITDA
Adjusted EBITDA	$ 310	$ 268	$ 234
Amortization of intangibles	(9)	(9)	(9)
Depreciation	(49)	(44)	(42)
Restructuring costs	(5)	(12)	(20)
Interest expense	(35)	(64)	(65)
Deal related transaction costs	(5)	(9)	0
Acquisition and divestiture related expenses	0	0	0
Foreign exchange	(1)	(1)	0
COVID-19 response costs	(6)	(12)	0
Non-service pension expense	0	(5)	(3)
Other one-time non-operational events	0	0	0
Income tax provision	(46)	(27)	(20)
Net earnings	154	85	75
AST
Adjusted EBITDA
Depreciation	(20)	(19)	(19)
NC&C
Adjusted EBITDA
Depreciation	(13)	(11)	(10)
IMS
Adjusted EBITDA
Depreciation	(16)	(14)	(13)
Operating Segments \| AST
Adjusted EBITDA
Adjusted EBITDA	125	123	94
Restructuring costs	(3)	0	(3)
Operating Segments \| NC&C
Adjusted EBITDA
Adjusted EBITDA	95	90	75
Restructuring costs	(2)	(6)	(3)
Operating Segments \| IMS
Adjusted EBITDA
Adjusted EBITDA	90	55	63
Restructuring costs	0	(6)	(13)
Corporate & Eliminations
Adjusted EBITDA
Adjusted EBITDA	$ 0	$ 0	$ 2

Subsequent Events (Details) $ in Millions	Mar. 21, 2022 USD ($)
Subsequent Event \| Global Enterprise Solutions
Subsequent Event [Line Items]
Expected proceeds from sale of business	$ 450