v3.26.1
INVESTMENTS
 12 Months Ended
Dec. 31, 2025
EBP 310  
EBP, Master Trust [Line Items]  
INVESTEMENTS INVESTMENTS
The majority of the Plan’s investments consists of a divided interest in the DC Master Trust. Those investments are stated at values determined and reported by the Trustee, in accordance with the DC Master Trust Agreement.
Each of the plans participating in the DC Master Trust holds a different share of some, but not necessarily all, of the underlying investments of the DC Master Trust. Accordingly, the net change in the fair value of the Plan’s investments does not correspond directly with the performance of the DC Master Trust as a whole, but is based on the performance of the Plan’s interest in specific investments held through the DC Master Trust. The value of the Plan’s interest in the DC Master Trust is based upon the beginning of year value of the Plan’s interest in the trust, plus actual contributions, less distributions and allocated administrative expenses, plus investment income/loss attributed to specific investments held through the Plan’s interest in the DC Master Trust.
The net assets of the DC Master Trust and the Plan's interest in the DC Master Trust were as follows ($ in thousands):
As of December 31, 2025
Master Trust BalancesPlan's Interest in Master Trust Balances
Assets:
At fair value:
Short-term investment funds$21,639 $1,167 
HII common stock274,356 5,307 
Collective trust funds5,820,851 444,067 
Schwab Personal Choice Retirement Account451,237 — 
Total investments at fair value6,568,083 450,541 
At contract value:
Synthetic guaranteed investment contracts671,822 36,756 
Total investments at contract value671,822 36,756 
Receivables:
Pending receivable40,687 — 
Accrued balance421 421 
41,108 421 
Total assets7,281,013 487,718 
Liabilities:
Accrued expenses749 — 
Total liabilities749 — 
Net assets$7,280,264 $487,718 
As of December 31, 2024
Master Trust BalancesPlan's Interest in Master Trust Balances
Assets:
At fair value:
Short-term investment funds$21,658 $1,207 
HII common stock181,010 4,400 
Collective trust funds5,040,576 396,848 
Schwab Personal Choice Retirement Account401,646 — 
Total investments at fair value5,644,890 402,455 
At contract value:
Synthetic guaranteed investment contracts687,944 38,882 
Total investments at contract value687,944 38,882 
Receivables:
Pending receivable37,618 — 
Accrued balance382 382 
38,000 382 
Total assets6,370,834 441,719 
Liabilities:
Accrued expenses497 — 
Total liabilities497 — 
Net assets$6,370,337 $441,719 
Investment income (loss) for the DC Master Trust for the year ended December 31, 2025, was as follows ($ in thousands):
Investment income:
Net appreciation in fair value of investments$1,086,929 
Dividends13,646 
Interest24,075 
Administrative and investment expenses(8,819)
Total investment income$1,115,831 
INTEREST IN STABLE VALUE FUND
The DC Master Trust includes amounts in the Stable Value Fund, which was established for the investment of assets of certain savings plans sponsored by the Company. Each participating savings plan has an undivided interest in the Stable Value Fund. Investment income and administrative expenses relating to the Stable Value Fund are allocated among the participating plans on a daily basis.
Investments held in the Stable Value Fund as of December 31, 2025 and 2024, were as follows ($ in thousands):
20252024
Synthetic guaranteed investment contracts - at contract value$671,822 $687,944 
Short-term investment fund - at fair value21,173 21,124 
Total$692,995 $709,068 
The Stable Value Fund holds wrapper contracts in order to manage the market risk and return of certain securities held by the Stable Value Fund. The wrapper contracts generally modify the investment characteristics of certain underlying securities such that they perform in a manner similar to guaranteed investment contracts. Each wrapper contract and the related underlying assets comprise the SICs, which are recorded at contract value. Contract value represents contributions made under the contract, plus interest at the contract rate, less withdrawals and contract administrative expenses.
The Stable Value Fund imposes certain restrictions on the Plan, and the Stable Value Fund itself may be subject to circumstances that affect its ability to transact at fair value. These events include termination of the Plan, a material adverse change to the provisions of the Plan, a withdrawal from a wrapper contract in order to switch to a different investment provider, or adoption of a successor plan (in the event of the spin-off or sale of a division) that does not meet the wrapper contract issuer’s underwriting
criteria for issuance of a clone wrapper contract. Plan management believes that the events described above that could result in the payment of benefits at fair value rather than contract value are not probable of occurring in the foreseeable future.