v3.26.1
INVESTEMENTS
 12 Months Ended
Dec. 31, 2025
EBP 011  
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 $20,472 
HII common stock274,356 269,049 
Collective trust funds5,820,851 5,376,784 
Schwab Personal Choice Retirement Account451,237 451,237 
Total investments at fair value6,568,083 6,117,542 
At contract value:
Synthetic guaranteed investment contracts671,822 635,066 
Total investments at contract value671,822 635,066 
Receivables:
Pending receivable40,68740,687
Accrued balance421 — 
41,108 40,687 
Total assets7,281,013 6,793,295 
Liabilities:
Accrued expenses749 749 
Total liabilities749 749 
Net assets$7,280,264 $6,792,546 
As of December 31, 2024
Master Trust BalancesPlan's Interest in Master Trust Balances
Assets:
At fair value:
Short-term investment funds$21,658 $20,451 
HII common stock181,010 176,610 
Collective trust funds5,040,576 4,558,557 
Schwab Personal Choice Retirement Account401,646 401,646 
Total investments at fair value5,644,890 5,157,264 
At contract value:
Synthetic guaranteed investment contracts687,944 649,062 
Total investments at contract value687,944 649,062 
Receivables:
Pending receivable37,61837,618
Accrued balance382 — 
38,000 37,618 
Total assets6,370,834 5,843,944 
Liabilities:
Accrued expenses497 463 
Total liabilities497 463 
Net assets$6,370,337 $5,843,481 
Investment income (loss) for the DC Master Trust for the year ended December 31, 2025, was as follows ($ 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.