BETHESDA, Md., Oct. 24, 2012 /PRNewswire/ -- Lockheed
Martin Corporation (NYSE: LMT) today reported third quarter 2012
net sales of $11.9 billion compared
to $12.1 billion in 2011. Net
earnings from continuing operations for the third quarter of 2012
were $727 million, or $2.21 per diluted share, compared to $665 million, or $1.99 per diluted share, in 2011. Cash from
operations during the third quarter of 2012 was $1.6 billion, compared to cash from operations of
$551 million after pension
contributions of $960 million during
the third quarter of 2011.
The third quarter of 2012 included a non-cash FAS/CAS pension
adjustment of $207 million, which
reduced net earnings by $128 million,
or $0.39 per diluted share, compared
to a non-cash FAS/CAS pension adjustment of $231 million, which reduced net earnings by
$143 million, or $0.43 per diluted share, in 2011. The third
quarter of 2012 also included a special charge of $23 million, which reduced net earnings by
$15 million, or $0.05 per diluted share, related to the
previously announced workforce reductions at Electronic
Systems. The third quarter of 2011 included special charges
of $39 million, which reduced net
earnings by $25 million, or
$0.07 per diluted share, related to
workforce reductions at the Corporation's Information Systems &
Global Solutions (IS&GS) business segment and Corporate
Headquarters.
"Our strong operating results this quarter are a reflection of
several factors, including our relentless focus on affordability
and program execution," said Bob
Stevens, chairman and chief executive officer. "We
also have a strategy that is aligned with our customers, a proven
portfolio of products and technologies, and a team that is talented
and dedicated, even with the uncertainties that lie ahead. We
remain focused on meeting our customer commitments and delivering
value to our shareholders."
Summary Reported Results
The following table presents the Corporation's results for the
periods referenced in accordance with generally accepted accounting
principles (GAAP):
|
SUMMARY
REPORTED RESULTS
|
|
|
|
|
(in
millions, except per share data)
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Net
sales
|
|
$
|
11,869
|
|
|
$
|
12,119
|
|
|
$
|
35,083
|
|
|
$
|
34,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment operating
profit
|
|
$
|
1,434
|
|
|
$
|
1,355
|
|
|
$
|
4,244
|
|
|
$
|
3,877
|
|
|
|
Unallocated expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash FAS/CAS pension
adjustment1
|
|
|
(207)
|
|
|
|
(231)
|
|
|
|
(622)
|
|
|
|
(692)
|
|
|
|
Special items – severance
charges2
|
|
|
(23)
|
|
|
|
(39)
|
|
|
|
(23)
|
|
|
|
(136)
|
|
|
|
Stock-based
compensation
|
|
|
(42)
|
|
|
|
(37)
|
|
|
|
(129)
|
|
|
|
(116)
|
|
|
|
Other, net
|
|
|
(64)
|
|
|
|
(7)
|
|
|
|
(160)
|
|
|
|
(35)
|
|
|
|
Total
consolidated operating profit
|
|
$
|
1,098
|
|
|
$
|
1,041
|
|
|
$
|
3,310
|
|
|
$
|
2,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
727
|
|
|
$
|
665
|
|
|
$
|
2,176
|
|
|
$
|
1,969
|
|
|
|
Discontinued operations3
|
|
|
-
|
|
|
|
35
|
|
|
|
-
|
|
|
|
3
|
|
|
|
Net
earnings
|
|
$
|
727
|
|
|
$
|
700
|
|
|
$
|
2,176
|
|
|
$
|
1,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
2.21
|
|
|
$
|
1.99
|
|
|
$
|
6.62
|
|
|
$
|
5.72
|
|
|
|
Discontinued operations3
|
|
|
-
|
|
|
|
0.11
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
Diluted
earnings per share
|
|
$
|
2.21
|
|
|
$
|
2.10
|
|
|
$
|
6.62
|
|
|
$
|
5.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
from operations
|
|
$
|
1,573
|
|
|
$
|
551
|
|
|
$
|
2,876
|
|
|
$
|
3,164
|
|
|
|
1 The non-cash
FAS/CAS pension adjustment represents the difference between
pension expense calculated in accordance with GAAP and pension
costs calculated and funded in accordance with U.S. Government Cost
Accounting Standards (CAS).
2 Severance charges for 2012
consisted of amounts, net of state tax benefits, associated with
the elimination of certain positions at the Electronic Systems
business segment. For 2011, severance charges consisted of
amounts related to actions taken at various business segments as
well as Corporate Headquarters. Severance charges for
initiatives that are not significant are included in business
segment operating profit.
3 Discontinued operations for
2011 include the operating results of Savi Technology, Inc. (Savi)
and also Pacific Architects and Engineers, Inc. (PAE) through the
date of its sale on April 4, 2011. Amounts related to
discontinued operations during 2012 were not significant and,
accordingly, were included in operating profit.
|
|
2012 Financial Outlook
The following table and other sections of this press release
contain forward-looking statements, which are based on the
Corporation's current expectations. Actual results may differ
materially from those projected. It is the Corporation's
practice not to incorporate adjustments into its outlook for
proposed acquisitions, divestitures, joint ventures, changes in tax
laws, or special items until such transactions have been
consummated or enacted. See the "Disclosure Regarding
Forward-Looking Statements" section contained in this press
release.
|
2012
FINANCIAL OUTLOOK
|
|
|
|
|
|
(in
millions, except per share data)
|
|
|
|
|
|
|
Current
|
|
July
2012
|
|
|
|
|
|
|
|
|
Net
sales
|
$45,500
– $46,500
|
|
$45,000 –
$46,000
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
Business segment operating
profit
|
$5,375–
$5,475
|
|
$5,200–
$5,300
|
|
|
Unallocated expense, net
|
|
|
|
|
|
Non-cash FAS/CAS pension
adjustment
|
~
(835)
|
|
~
(835)
|
|
|
Stock-based compensation and
other, net
|
~
(390)
|
|
~
(340)
|
|
|
Total
consolidated operating profit
|
$4,150
– $4,250
|
|
$4,025 –
$4,125
|
|
|
|
|
|
|
|
|
Diluted
earnings per share from continuing operations
|
$8.20 –
$8.40
|
|
$7.90 –
$8.10
|
|
|
|
|
|
|
|
|
Cash
from operations1
|
>/=
$4,000
|
|
>/=
$3,900
|
|
|
1 The Corporation's 2012
financial outlook for cash from operations includes required
contributions of $1.1 billion to its pension trust, which were
completed during the first six months of 2012. The
Corporation also anticipates recovering these pension contributions
as CAS costs in 2012. Consistent with prior years, the
Corporation will consider options for further contributions in the
remainder of the year.
|
|
|
|
|
|
|
|
2013 Financial Trends
The Corporation's preliminary outlook for 2013 is premised on
the assumption that sequestration does not occur, that the U.S.
Government continues to support and fund the Corporation's
programs, which is consistent with the continuing resolution
funding measure through March 2013,
and that Congress approves defense budget legislation for
government fiscal year 2013 at a level consistent with the
President's proposed defense budget for the second half of the U.S.
Government's fiscal year 2013. With these assumptions, the
Corporation expects 2013 net sales will decline at a low single
digit rate from 2012 levels primarily as a result of a projected
mid single digit decline in IS&GS net sales. The
Corporation's preliminary outlook also indicates that the 2013
business segment operating profit margin will remain above 11
percent. If sequestration or other budgetary cuts to avoid
sequestration occur, the Corporation expects these budget
reductions could have a material effect on its 2013 results of
operations, earnings, and cash flows (see the Corporation's Annual
Report on Form 10-K for the year ended Dec.
31, 2011 and Quarterly Report on Form 10-Q for the quarter
ended June 24, 2012).
The Corporation's outlook for its 2013 non-cash FAS/CAS pension
expense adjustment is premised on the assumptions that the discount
rate at the end of 2012 is 4.0 percent, a 75 basis points decrease
from 2011, actual investment returns for 2012 are 8.0 percent,
pension funding is comparable to 2012, and all other assumptions
are held constant. With these assumptions, the Corporation
expects its 2013 non-cash FAS/CAS pension expense adjustment would
be approximately $700 million.
A change of plus or minus 25 basis points to the assumed discount
rate, with all other assumptions held constant, would result in a
decrease or increase of approximately $145
million in the estimated 2013 non-cash FAS/CAS pension
expense adjustment. The Corporation will finalize its
postretirement benefit plan assumptions and determine the actual
return on plan assets on Dec. 31,
2012. The final assumptions and actual return on plan assets
for 2012 may differ materially from those discussed.
Cash Deployment Activities
The Corporation deployed cash in 2012 by:
- paying cash dividends of $326
million in the third quarter and $979
million during the year-to-date period;
- repurchasing 3.3 million shares at a cost of $294 million in the third quarter and 8.2 million
shares at a cost of $722 million
during the year-to-date period;
- making contributions of $1.1
billion to its pension trust during the year-to-date period;
and
- making capital expenditures of $208
million in the third quarter and $514
million during the year-to-date period.
On Sept. 27, 2012, the Corporation
increased its quarterly dividend rate 15 percent, or $0.15 per share, to $1.15 per share beginning with the payment on
Dec. 28, 2012, to the stockholders of
record as of the close of business on Dec.
3, 2012.
Segment Results
The Corporation currently operates in four business segments:
Aeronautics; Electronic Systems; IS&GS; and Space
Systems. Operating profit for the business segments includes
equity earnings and losses from investees because the operating
activities of the investees are closely aligned with the operations
of those segments. The Corporation's equity investments
primarily include United Launch Alliance (ULA) and United Space
Alliance (USA), both of which are
part of Space Systems.
As announced on Oct. 8, 2012, in
order to streamline the Corporation's operations and enhance
customer alignment, the Electronic Systems business segment will be
reorganized effective Dec. 31, 2012
into two new business segments: Missiles and Fire Control (MFC) and
Mission Systems and Training (MST). In connection with this
reorganization, the Electronic Systems corporate management layer
will be eliminated, and the Global Training and Logistics business
will be split between the two new business segments. In
addition, the business reporting relationship for the Sandia
National Laboratories and the U.K. Atomic Weapons Establishment
joint venture will transfer from Electronic Systems to Space
Systems. Following the reorganization, the Corporation will
have five business segments comprised of Aeronautics, IS&GS,
MFC, MST, and Space Systems. These changes do not affect the
amounts, discussion, or presentation of the Corporation's business
segments as set forth in this press release. The Corporation
will begin to report its financial results consistent with this new
structure beginning with its earnings press release reporting
fourth quarter and full year 2012 results and 2013 outlook.
The following table presents summary operating results of the
current four business segments and reconciles these amounts to the
Corporation's consolidated financial results.
|
SEGMENT
RESULTS
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
3,698
|
|
|
$
|
3,965
|
|
|
$
|
10,812
|
|
|
$
|
10,507
|
|
|
|
Electronic Systems
|
|
|
3,818
|
|
|
|
3,663
|
|
|
|
11,293
|
|
|
|
10,925
|
|
|
|
Information Systems & Global Solutions
|
|
|
2,292
|
|
|
|
2,323
|
|
|
|
6,645
|
|
|
|
6,833
|
|
|
|
Space Systems
|
|
|
2,061
|
|
|
|
2,168
|
|
|
|
6,333
|
|
|
|
6,023
|
|
|
|
Total
net sales
|
|
$
|
11,869
|
|
|
$
|
12,119
|
|
|
$
|
35,083
|
|
|
$
|
34,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
415
|
|
|
$
|
444
|
|
|
$
|
1,254
|
|
|
$
|
1,169
|
|
|
|
Electronic Systems
|
|
|
509
|
|
|
|
447
|
|
|
|
1,576
|
|
|
|
1,357
|
|
|
|
Information Systems & Global Solutions
|
|
|
209
|
|
|
|
213
|
|
|
|
605
|
|
|
|
620
|
|
|
|
Space Systems
|
|
|
301
|
|
|
|
251
|
|
|
|
809
|
|
|
|
731
|
|
|
|
Total business segment operating
profit
|
|
|
1,434
|
|
|
|
1,355
|
|
|
|
4,244
|
|
|
|
3,877
|
|
|
|
Unallocated expense, net
|
|
|
(336)
|
|
|
|
(314)
|
|
|
|
(934)
|
|
|
|
(979)
|
|
|
|
Total
consolidated operating profit
|
|
$
|
1,098
|
|
|
$
|
1,041
|
|
|
$
|
3,310
|
|
|
$
|
2,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the discussion of comparative segment results, changes in net
sales and operating profit generally are expressed in terms of
volume. Changes in volume refer to increases or decreases in
sales resulting from varying production activity levels,
deliveries, or service levels on individual contracts. Volume
changes typically include a corresponding change in segment
operating profit based on the current profit booking rate for a
particular contract.
In addition, comparability of the Corporation's operating profit
may be impacted by changes in estimated profit booking rates on the
Corporation's contracts accounted for using the
percentage-of-completion method of accounting. Increases in
the estimated profit booking rates, typically referred to as risk
retirements, usually relate to revisions in the total estimated
costs at completion that reflect improved conditions on a
particular contract. Conversely, conditions on a particular
contract may deteriorate resulting in an increase in the estimated
costs at completion and a reduction of the estimated profit booking
rate. Increases or decreases in estimated profit booking
rates are recognized in the current period and reflect the
inception-to-date effect of such changes. Segment operating
profit may also be impacted, favorably or unfavorably, by matters
that are not accounted for using the percentage-of-completion
method of accounting, such as the resolution of contractual
matters, reserves for disputes, asset impairments, and insurance
recoveries, among others. Segment operating profit and items
such as risk retirements, reductions of profit booking rates, or
other matters are presented net of state income taxes.
The Corporation's consolidated net adjustments not related to
volume, including net profit rate adjustments and other matters,
represented approximately 30 percent and 36 percent of total
segment operating profit for the third quarter and first nine
months of 2012, respectively, and approximately 30 percent of total
segment operating profit for both the third quarter and first nine
months of 2011.
Aeronautics
|
(in
millions)
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Net
sales
|
|
$
|
3,698
|
|
|
$
|
3,965
|
|
|
$
|
10,812
|
|
|
$
|
10,507
|
|
|
|
Operating profit
|
|
$
|
415
|
|
|
$
|
444
|
|
|
$
|
1,254
|
|
|
$
|
1,169
|
|
|
|
Operating margins
|
|
|
11.2
|
%
|
|
|
11.2
|
%
|
|
|
11.6
|
%
|
|
|
11.1
|
%
|
|
Net sales for the Aeronautics business segment decreased
$267 million, or 7 percent, during
the third quarter of 2012, compared to the corresponding period in
2011. The decrease in net sales was attributable to a decline
of approximately $375 million for
C-130 programs due to fewer aircraft deliveries (eight aircraft
delivered in the third quarter of 2012 compared to 13 in the same
2011 period); a decrease of about $135
million for the F-22 programs due to lower production as
final aircraft deliveries were completed in the second quarter of
2012 and lower risk retirements; and approximately $40 million related to F-16 programs due to lower
volume on sustainment activities partially offset by increased
aircraft deliveries (six aircraft delivered in the third quarter of
2012 compared to five in the same 2011 period). Partially
offsetting the decreases was an increase in net sales of
approximately $300 million due to
increased production volume for F-35 Low Rate Initial Production
(LRIP) contracts.
Net sales for the Aeronautics business segment increased
$305 million, or 3 percent, during
the first nine months of 2012, compared to the corresponding period
in 2011. The increase in net sales was attributable to an
increase of approximately $760
million for F-35 LRIP contracts as a result of increased
production volume and about $305
million for F-16 programs primarily due to higher aircraft
deliveries (29 F-16 aircraft delivered in the first nine months of
2012 compared to 17 in the same 2011 period). Partially
offsetting the increases were lower net sales of about $350 million for the F-22 programs due to
decreased production and lower risk retirements; a decline of about
$145 million for the F-35 development
contract due to the inception-to-date effect of reducing the profit
booking rate in the second quarter of 2012 and to a lesser extent
lower volume; approximately $140
million for C-130 programs principally due to decreased
aircraft deliveries (25 C-130J aircraft delivered in the first nine
months of 2012 compared to 26 in the same 2011 period) and aircraft
configuration mix; and a decrease of approximately $125 million for other sustainment activities as
a result of lower risk retirements and decreased volume.
Operating profit for the Aeronautics business segment decreased
$29 million, or 7 percent, during the
third quarter of 2012, compared to the corresponding period in
2011. The decrease was attributable to lower operating profit
of approximately $65 million for the
F-22 programs and about $45 million
for other sustainment activities both due to declines in risk
retirements. Partially offsetting the decreases were higher
operating profit of approximately $50
million for F-16 programs as a result of higher risk
retirements, and about $35 million
due to increased volume and risk retirements for other various
programs. Operating profit for C-130 programs was comparable
as the decline in profit from aircraft deliveries was largely
offset by increased risk retirements. Adjustments not related
to volume, including net profit rate adjustments described above,
were approximately $10 million lower
in the third quarter of 2012, compared to the corresponding period
in 2011.
Operating profit for the Aeronautics business segment increased
$85 million, or 7 percent, during the
first nine months of 2012, compared to the corresponding period in
2011. The increase in operating profit was attributable to
approximately $100 million for F-16
programs driven by increased risk retirements and higher aircraft
deliveries, an increase of about $95
million for C-130 programs due to risk retirements on
international production contracts, an increase of about
$50 million for F-35 LRIP contracts
due to increased risk retirements and higher production volume, an
increase of about $40 million due to
increased risk retirements on various programs, and a reduction of
purchased intangible amortization expense on F-16 contracts of
about $40 million. Partially
offsetting the increases were lower operating profit of
approximately $95 million for other
sustainment activities principally due to declines in risk
retirements; a decline of about $90
million for the F-35 development contract primarily due to
the inception-to-date effect of reducing the profit booking rate in
the second quarter of 2012; and a decrease of approximately
$50 million for the F-22 programs due
to lower volume and risk retirements partially offset by a
resolution of a contractual matter in the second quarter of
2012. Adjustments not related to volume, including net profit
rate adjustments and the resolution of the contractual matter
described above, were approximately $5
million higher in the first nine months of 2012, compared to
the corresponding period in 2011.
Electronic Systems
|
(in
millions)
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Net
sales
|
|
$
|
3,818
|
|
|
$
|
3,663
|
|
|
$
|
11,293
|
|
|
$
|
10,925
|
|
|
|
Operating profit
|
|
$
|
509
|
|
|
$
|
447
|
|
|
$
|
1,576
|
|
|
$
|
1,357
|
|
|
|
Operating margins
|
|
|
13.3
|
%
|
|
|
12.2
|
%
|
|
|
14.0
|
%
|
|
|
12.4
|
%
|
|
Net sales for the Electronic Systems business segment increased
$155 million, or 4 percent, during
the third quarter of 2012, compared to the corresponding period in
2011. The increase in net sales was attributable to higher
volume of approximately $95 million
for integrated warfare systems and sensors programs (Aegis and
other radar systems), increased volume of about $40 million on tactical missile programs
(Javelin), about $35 million for air
and missile defense programs (Patriot Advanced Capability-3), and
approximately $25 million for fire
control systems programs (Longbow). Partially offsetting the
increases were lower net sales of about $35
million for undersea systems programs due to lower
volume.
Net sales for the Electronic Systems business segment increased
$368 million, or 3 percent, during
the first nine months of 2012, compared to the corresponding period
in 2011. The increase was attributable to higher volume and
risk retirements of approximately $410
million from ship and aviation programs (Persistent Threat
Detection System (PTDS), Littoral Combat Ship, MH-60), and about
$135 million from tactical missile
programs (Joint Air-to-Surface Stand-off Missile (JASSM),
Javelin). Partially offsetting the increase were lower net
sales due to decreased volume of about $65
million primarily from training and logistics programs,
approximately $60 million from fire
control systems programs (Sniper®), and $45 million from undersea systems programs.
Operating profit for the Electronic Systems business segment
increased $62 million, or 14 percent,
during the third quarter of 2012, compared to the corresponding
period in 2011. The increase was attributable to higher
operating profit of approximately $35
million for air and missile defense programs (Terminal High
Altitude Area Defense) as a result of increased risk retirements
and approximately $25 million for
ship and aviation programs primarily due to reserves recorded in
the third quarter of 2011. Adjustments not related to volume,
including net profit rate adjustments described above, were
approximately $45 million higher in
the third quarter of 2012, compared to the corresponding period in
2011.
Operating profit for the Electronic Systems business segment
increased $219 million, or 16
percent, during the first nine months of 2012, compared to the
corresponding period in 2011. The increase was attributable to
higher operating profit of approximately $165 million from ship and aviation programs
(PTDS, Vertical Launching System, MH-60) as a result of increased
risk retirements in the third quarter of 2012 and
reserves recorded in the third quarter of 2011, about $75 million from tactical missile programs
(Javelin, Hellfire, JASSM, Multiple Launch Rocket System) due to
increased risk retirements and volume, and about $50 million from a resolution of contractual
matters. Partially offsetting these increases was lower
operating profit from reducing profit booking rates on certain
programs, including training and logistics programs, and a net
increase in various costs, including severance. Adjustments
not related to volume, including net profit rate adjustments and
the resolution of contractual matters described above, were
approximately $280 million higher in
the first nine months of 2012, compared to the corresponding period
in 2011.
Information Systems & Global Solutions
|
(in
millions)
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Net
sales
|
|
$
|
2,292
|
|
|
$
|
2,323
|
|
|
$
|
6,645
|
|
|
$
|
6,833
|
|
|
|
Operating profit
|
|
$
|
209
|
|
|
$
|
213
|
|
|
$
|
605
|
|
|
$
|
620
|
|
|
|
Operating margins
|
|
|
9.1
|
%
|
|
|
9.2
|
%
|
|
|
9.1
|
%
|
|
|
9.1
|
%
|
|
Net sales for the IS&GS business segment decreased
$31 million, or 1 percent, during the
third quarter and $188 million, or 3
percent, during the first nine months of 2012, compared to the
corresponding periods in 2011. The decreases in net sales
during both periods were attributable to declines of approximately
$40 million during the third quarter
and $100 million during the first
nine months from the completion of the Outsourcing Desktop
Initiative program for NASA, decreases of about $30 million during the third quarter and
$150 million during the first nine
months due to cessation of the Airborne Maritime Fixed Station
Joint Tactical Radio System program, and declines of about
$30 million during the third quarter
and $85 million during the first nine
months from the completion of the U.K. Census program in the fourth
quarter of 2011. Additionally, net sales also decreased
during the first nine months by about $75
million due to lower volume on the Hanford program as a
result of decreased funding under the American Recovery and
Reinvestment Act of 2009. Partially offsetting the decreases
were increases of approximately $70
million during the third quarter and $220 million during the first nine months as a
result of increased activity for other numerous programs, primarily
federal cyber security programs and PTDS operational support, as
well as net sales from an acquisition in the fourth quarter of
2011.
The declines in operating profit for the IS&GS business
segment during the third quarter and first nine months of 2012,
compared to the corresponding periods in 2011 primarily were
attributable to lower net sales. Adjustments not related to
volume, including net profit rate adjustments, were approximately
$5 million lower in the third quarter
of 2012, compared to the corresponding period in 2011, and
approximately $35 million higher in
the first nine months of 2012, compared to the corresponding period
in 2011.
Space Systems
|
(in
millions)
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Net
sales
|
|
$
|
2,061
|
|
|
$
|
2,168
|
|
|
$
|
6,333
|
|
|
$
|
6,023
|
|
|
|
Operating profit
|
|
$
|
301
|
|
|
$
|
251
|
|
|
$
|
809
|
|
|
$
|
731
|
|
|
|
Operating margins
|
|
|
14.6
|
%
|
|
|
11.6
|
%
|
|
|
12.8
|
%
|
|
|
12.1
|
%
|
|
Net sales for the Space Systems business segment decreased
$107 million, or 5 percent, during
the third quarter of 2012, compared to the corresponding period in
2011. The decrease in net sales was attributable to a decline
of approximately $105 million for
commercial and government satellite programs primarily as a result
of fewer commercial satellite deliveries (no satellites delivered
in the third quarter of 2012 compared to one in the same 2011
period).
Net sales for the Space Systems business segment increased
$310 million, or 5 percent, during
the first nine months of 2012, compared to the corresponding period
in 2011. The increase in net sales was attributable to an
increase of approximately $165
million for commercial and government satellite programs
primarily driven by higher commercial satellite deliveries (two
deliveries in the first nine months of 2012 compared to one in the
same 2011 period), an increase of about $125
million due to higher production volume and risk retirements
for the Orion Multi-Purpose Crew Vehicle (Orion) program, and an
increase of approximately $65 million
due to higher volume on various strategic and defensive missile
programs. Partially offsetting the increases were lower net
sales of about $45 million for the
NASA External Tank program, which ended in connection with the
completion of the Space Shuttle program during the second quarter
of 2011.
Operating profit for the Space Systems business segment
increased $50 million, or 20 percent,
during the third quarter of 2012, compared to the corresponding
period in 2011. The increase in operating profit was
attributable to approximately $85
million of higher equity earnings for ULA and USA inclusive of launch related activities at
ULA and the resolution of contract cost matters associated with the
wind-down of USA, which was
partially offset by decreased volume and lower risk retirements of
about $30 million for commercial and
government satellite activities. Adjustments not related to
volume, including net profit rate adjustments described above, were
approximately $10 million lower in
the third quarter of 2012, compared to the corresponding period in
2011.
Operating profit for the Space Systems business segment
increased $78 million, or 11 percent,
during the first nine months of 2012, compared to the corresponding
period in 2011. The increase in operating profit was
attributable to an increase of approximately $40 million primarily due to increased risk
retirements on the Orion program and about $40 million for commercial and government
satellite programs as a result of higher commercial satellite
deliveries and risk retirements. Adjustments not related to
volume, including net profit rate adjustments described above, were
approximately $30 million higher in
the first nine months of 2012, compared to the corresponding period
in 2011.
Total equity earnings recognized by the Space Systems business
segment from ULA and USA
represented about $120 million, or 40
percent, and approximately $170
million, or 21 percent, of this segment's operating profit
during the third quarter and first nine months of 2012,
respectively. During the third quarter and first nine
months of 2011, total equity earnings recognized by the Space
Systems business segment from ULA and USA represented about $35 million, or 14 percent, and approximately
$165 million, or 23 percent,
respectively of this segment's operating profit.
Income Taxes
The Corporation's effective income tax rates from continuing
operations were 30.5 percent and 30.1 percent during the third
quarter and first nine months of 2012, respectively, and 29.9
percent and 26.1 percent during the third quarter and first nine
months of 2011. The rates for all periods benefited from tax
deductions for U.S. manufacturing activities and dividends paid to
certain defined contribution plans with an employee stock ownership
plan feature. The effective income tax rates for the third
quarter and first nine months of 2011 also included the U.S.
research and development tax credit that expired on Dec. 31, 2011. This benefit will not be
incorporated into the Corporation's 2012 outlook unless new
legislation is enacted. In addition, the effective income tax
rates for the first nine months of 2011 included a reduction to
income tax expense of $89 million, or
$0.26 per diluted share, through the
elimination of liabilities for unrecognized tax benefits as a
result of the U.S. Congressional Joint Committee on Taxation
completing its review of the Internal Revenue Service Appeals
Division's resolution of adjustments related to tax years 2003
through 2008.
About Lockheed Martin
Headquartered in Bethesda, Md.,
Lockheed Martin is a global security and aerospace company that
employs about 120,000 people worldwide and is principally engaged
in the research, design, development, manufacture, integration and
sustainment of advanced technology systems, products and
services. The Corporation's net sales for 2011 were
$46.5 billion.
Web site: www.lockheedmartin.com
Conference Call Information
Conference call: Lockheed Martin will webcast the
earnings conference call (listen-only mode) at 3:00 p.m. E.T. on Oct. 24,
2012. A live audio broadcast, including relevant charts,
will be available on the Investor Relations page of the
Corporation's web site at:
http://www.lockheedmartin.com/investor.
Disclosure Regarding Forward-Looking Statements
Statements in this release that are "forward-looking statements"
are based on Lockheed Martin's current expectations and
assumptions. Forward-looking statements in this release
include estimates of future sales, earnings, and cash flows.
These statements are not guarantees of future performance and are
subject to risks and uncertainties. Actual results could
differ materially due to factors such as:
- the availability of government funding for the Corporation's
products and services both domestically and internationally due to
budgetary constraints, performance, cost, or other factors;
- sequestration under the Budget Control Act of 2011 or
alternative measures that may be adopted in lieu of
sequestration;
- changes in government and customer priorities, requirements, or
contracting practices (including the potential for deferral,
reduction or termination of programs);
- quantity revisions to the F-35 program, including in the U.S.
or internationally;
- actual returns (or losses) on pension plan assets, movements in
interest rates, and other changes that may affect pension plan
assumptions;
- the effect of capitalization changes (such as share repurchase
activity, accelerated pension funding, stock option exercises, or
debt levels);
- difficulties in developing and producing operationally advanced
technology systems;
- the timing and customer acceptance of product deliveries;
- materials availability and performance by key suppliers,
subcontractors, and customers;
- charges from any future impairment reviews that may result in
the recognition of losses and a reduction in the book value of
goodwill or other long-term assets;
- the effect of future legislation, rulemaking, and changes in
accounting, tax (including potential corporate tax reform),
defense, and procurement policy or interpretations, or challenges
to the allowability and recovery of costs incurred under government
cost accounting standards (including potential costs
associated with sequestration or other budgetary cuts to avoid
sequestration, such as severance payments made to employees and
facility closure expenses);
- the effect of future acquisitions or divestitures, joint
ventures, teaming arrangements, or internal reorganizations;
- the outcome of legal proceedings and other contingencies
(including lawsuits, government investigations or audits, and the
cost of completing environmental remediation efforts);
- the competitive environment for the Corporation's products and
services, export policies, and potential for delays in procurement
due to bid protests;
- the ability to attract and retain key personnel and suppliers
(including the potential for disruption associated with
sequestration and related employee severance or supplier
termination costs); and
- domestic and international economic, business, and political
conditions.
These are only some of the factors that may affect the
forward-looking statements contained in this press release.
For further information regarding risks and uncertainties
associated with Lockheed Martin's business, please refer to the
Corporation's U.S. Securities and Exchange Commission filings,
including the "Management's Discussion and Analysis of Financial
Condition and Results of Operations," "Risk Factors," and "Legal
Proceedings" sections of the Corporation's Annual Report on Form
10-K for the year ended Dec. 31, 2011
and 2012 Quarterly Reports on Form 10-Q, which may be obtained at
the Corporation's website: http://www.lockheedmartin.com.
It is the Corporation's policy to update or reconfirm its
financial projections only by issuing a press release. The
Corporation generally plans to provide a forward-looking outlook as
part of its quarterly earnings release but reserves the right to
provide an outlook at different intervals or to revise its practice
in future periods. All information in this release is as of
Oct. 23, 2012. Lockheed Martin
undertakes no duty to update any forward-looking statement to
reflect subsequent events, actual results, or changes in the
Corporation's expectations. The Corporation also disclaims
any duty to comment upon or correct information that may be
contained in reports reports published by investment analysts or
others.
Lockheed Martin Corporation
|
|
|
|
|
Consolidated Statements of Earnings
1
|
|
|
|
|
(unaudited; in millions, except per share
data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
Sept.
30,
|
|
Sept.
25,
|
|
Sept.
30,
|
|
Sept.
25,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
11,869
|
|
$
12,119
|
|
$
35,083
|
|
$
34,288
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(10,888)
|
|
(11,123)
|
|
(31,945)
|
|
(31,572)
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
981
|
|
996
|
|
3,138
|
|
2,716
|
|
|
|
|
|
|
|
|
|
Other
income, net
|
|
117
|
|
45
|
|
172
|
|
182
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
1,098
|
|
1,041
|
|
3,310
|
|
2,898
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(97)
|
|
(89)
|
|
(289)
|
|
(258)
|
|
|
|
|
|
|
|
|
|
Other
non-operating income (expense), net
|
|
45
|
|
(3)
|
|
93
|
|
25
|
|
|
|
|
|
|
|
|
|
Earnings
from continuing operations before income taxes
|
|
1,046
|
|
949
|
|
3,114
|
|
2,665
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(319)
|
|
(284)
|
|
(938)
|
|
(696)
|
|
|
|
|
|
|
|
|
|
Net
earnings from continuing operations
|
|
727
|
|
665
|
|
2,176
|
|
1,969
|
|
|
|
|
|
|
|
|
|
Net
earnings from discontinued operations 2
|
|
-
|
|
35
|
|
-
|
|
3
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
727
|
|
$
700
|
|
$
2,176
|
|
$
1,972
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
30.5%
|
|
29.9%
|
|
30.1%
|
|
26.1%
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.25
|
|
$
2.01
|
|
$
6.72
|
|
$
5.78
|
Discontinued operations
|
|
-
|
|
0.11
|
|
-
|
|
0.01
|
Basic earnings per common
share
|
|
$
2.25
|
|
$
2.12
|
|
$
6.72
|
|
$
5.79
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.21
|
|
$
1.99
|
|
$
6.62
|
|
$
5.72
|
Discontinued operations
|
|
-
|
|
0.11
|
|
-
|
|
0.01
|
Diluted earnings per common
share
|
|
$
2.21
|
|
$
2.10
|
|
$
6.62
|
|
$
5.73
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
323.5
|
|
329.8
|
|
324.0
|
|
340.4
|
Diluted
|
|
328.3
|
|
333.6
|
|
328.6
|
|
344.3
|
|
|
|
|
|
|
|
|
|
Common
shares reported in stockholders' equity at end of period
|
|
|
|
|
|
321.4
|
|
321.3
|
|
|
|
|
|
|
|
|
|
1 The Corporation closes its books and
records on the last Sunday of the calendar quarter to align its
financial closing with its business processes, which
was on Sept. 30 for the third quarter of
2012. The interim financial statements and tables of
financial information included herein are labeled based on
that convention. This practice only affects interim
periods, as the Corporation's fiscal year ends on Dec.
31.
|
2 Discontinued operations for 2011 include
the operating results of Savi Technology, Inc. (Savi) and also
Pacific Architects and Engineers, Inc. (PAE) through the
date of its sale on April 4, 2011. Amounts related
to discontinued operations during 2012 were not significant and,
accordingly, were included in operating profit.
|
Lockheed Martin Corporation
|
|
|
|
|
|
|
Business Segment Net Sales, Operating Profit, and
Operating Margins
|
|
|
|
|
|
|
(unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
%
Change
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
%
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
$
3,698
|
|
$
3,965
|
|
|
(7)
|
%
|
|
$
10,812
|
|
$
10,507
|
|
|
3
|
%
|
Electronic Systems
|
3,818
|
|
3,663
|
|
|
4
|
%
|
|
11,293
|
|
10,925
|
|
|
3
|
%
|
Information Systems & Global Solutions
|
2,292
|
|
2,323
|
|
|
(1)
|
%
|
|
6,645
|
|
6,833
|
|
|
(3)
|
%
|
Space Systems
|
2,061
|
|
2,168
|
|
|
(5)
|
%
|
|
6,333
|
|
6,023
|
|
|
5
|
%
|
Total net
sales
|
$
11,869
|
|
$
12,119
|
|
|
(2)
|
%
|
|
$
35,083
|
|
$
34,288
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
$
415
|
|
$
444
|
|
|
(7)
|
%
|
|
$
1,254
|
|
$
1,169
|
|
|
7
|
%
|
Electronic Systems
|
509
|
|
447
|
|
|
14
|
%
|
|
1,576
|
|
1,357
|
|
|
16
|
%
|
Information Systems & Global Solutions
|
209
|
|
213
|
|
|
(2)
|
%
|
|
605
|
|
620
|
|
|
(2)
|
%
|
Space Systems
|
301
|
|
251
|
|
|
20
|
%
|
|
809
|
|
731
|
|
|
11
|
%
|
Total business segment
operating profit
|
1,434
|
|
1,355
|
|
|
6
|
%
|
|
4,244
|
|
3,877
|
|
|
9
|
%
|
Unallocated expense, net
|
(336)
|
|
(314)
|
|
|
7
|
%
|
|
(934)
|
|
(979)
|
|
|
(5)
|
%
|
Total consolidated
operating profit
|
$
1,098
|
|
$
1,041
|
|
|
5
|
%
|
|
$
3,310
|
|
$
2,898
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
11.2
|
%
|
11.2
|
%
|
|
|
|
|
11.6
|
%
|
11.1
|
%
|
|
|
|
Electronic Systems
|
13.3
|
%
|
12.2
|
%
|
|
|
|
|
14.0
|
%
|
12.4
|
%
|
|
|
|
Information Systems & Global Solutions
|
9.1
|
%
|
9.2
|
%
|
|
|
|
|
9.1
|
%
|
9.1
|
%
|
|
|
|
Space Systems
|
14.6
|
%
|
11.6
|
%
|
|
|
|
|
12.8
|
%
|
12.1
|
%
|
|
|
|
Total business segment
operating margins
|
12.1
|
%
|
11.2
|
%
|
|
|
|
|
12.1
|
%
|
11.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
operating margins
|
9.3
|
%
|
8.6
|
%
|
|
|
|
|
9.4
|
%
|
8.5
|
%
|
|
|
|
Lockheed Martin Corporation
|
|
|
|
|
Selected Financial Data
|
|
|
|
|
(unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
Unallocated expense, net
|
|
|
|
|
|
|
|
Non-cash
FAS/CAS pension adjustment
|
|
|
|
|
|
|
|
FAS pension
expense
|
$
(485)
|
|
$
(455)
|
|
$
(1,456)
|
|
$
(1,366)
|
Less: CAS
expense
|
(278)
|
|
(224)
|
|
(834)
|
|
(674)
|
Non-cash
FAS/CAS pension adjustment
|
(207)
|
|
(231)
|
|
(622)
|
|
(692)
|
Special
items - severance charges1
|
(23)
|
|
(39)
|
|
(23)
|
|
(136)
|
Stock-based compensation
|
(42)
|
|
(37)
|
|
(129)
|
|
(116)
|
Other,
net
|
(64)
|
|
(7)
|
|
(160)
|
|
(35)
|
Total
unallocated expense, net
|
$
(336)
|
|
$
(314)
|
|
$
(934)
|
|
$
(979)
|
|
|
|
|
|
|
|
|
1 Severance charges for 2012 consisted of
amounts, net of state tax benefits, associated with the elimination
of certain positions at the Electronic Systems business segment. For
2011, severance charges consisted of amounts related to actions
taken at various business segments as well as
Corporate Headquarters. Severance charges for initiatives
that are not significant are included in business segment operating
profit.
|
Lockheed Martin Corporation
|
|
|
|
|
Consolidated Balance Sheets
|
|
|
|
|
(unaudited; in millions, except par
value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept.
30,
2012
|
|
Dec.
31,
2011
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
4,652
|
|
$
3,582
|
Receivables, net
|
|
6,428
|
|
6,064
|
Inventories, net
|
|
2,878
|
|
2,481
|
Deferred income taxes
|
|
1,281
|
|
1,339
|
Other current assets
|
|
552
|
|
628
|
Total current assets
|
|
15,791
|
|
14,094
|
|
|
|
|
|
Property,
plant, and equipment, net
|
|
4,486
|
|
4,611
|
Goodwill
|
|
10,183
|
|
10,148
|
Deferred
income taxes
|
|
4,073
|
|
4,388
|
Other
noncurrent assets
|
|
4,788
|
|
4,667
|
Total
assets
|
|
$
39,321
|
|
$
37,908
|
|
|
|
|
|
Liabilities and stockholders'
equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable
|
|
$
2,184
|
|
$
2,269
|
Customer advances and amounts in excess of costs
incurred
|
6,396
|
|
6,399
|
Salaries, benefits, and payroll taxes
|
|
1,725
|
|
1,664
|
Current portion of long-term debt
|
|
150
|
|
-
|
Other current liabilities
|
|
2,213
|
|
1,798
|
Total current
liabilities
|
|
12,668
|
|
12,130
|
|
|
|
|
|
Long-term
debt, net
|
|
6,374
|
|
6,460
|
Accrued
pension liabilities
|
|
12,967
|
|
13,502
|
Other
postretirement benefit liabilities
|
|
1,245
|
|
1,274
|
Other
noncurrent liabilities
|
|
3,625
|
|
3,541
|
Total
liabilities
|
|
36,879
|
|
36,907
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
Common stock, $1 par value per share
|
|
321
|
|
321
|
Additional paid-in capital
|
|
-
|
|
-
|
Retained earnings
|
|
12,703
|
|
11,937
|
Accumulated other comprehensive loss
|
|
(10,582)
|
|
(11,257)
|
Total stockholders'
equity
|
|
2,442
|
|
1,001
|
Total liabilities
and stockholders' equity
|
|
$
39,321
|
|
$
37,908
|
Lockheed Martin Corporation
|
|
|
|
Consolidated Statements of Cash
Flows
|
|
|
|
(unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
|
|
Operating activities
|
|
|
|
Net
earnings
|
$
2,176
|
|
$
1,972
|
Adjustments to reconcile net earnings to net cash
provided by operating activities:
|
|
|
|
Depreciation and amortization
|
711
|
|
739
|
Stock-based compensation
|
129
|
|
116
|
Severance charges
|
23
|
|
136
|
Reduction in tax expense from resolution of certain tax
matters
|
-
|
|
(89)
|
Tax
benefit related to discontinued operations
|
-
|
|
(81)
|
Changes in operating assets and liabilities:
|
|
|
|
Receivables,
net
|
(365)
|
|
(853)
|
Inventories,
net
|
(387)
|
|
575
|
Accounts
payable
|
(86)
|
|
707
|
Customer advances and
amounts in excess of costs incurred
|
(3)
|
|
(342)
|
Postretirement benefit
plans
|
329
|
|
134
|
Income
taxes
|
48
|
|
7
|
Other, net
|
301
|
|
143
|
Net cash provided
by operating activities
|
2,876
|
|
3,164
|
|
|
|
|
Investing activities
|
|
|
|
Capital
expenditures
|
(514)
|
|
(569)
|
Net cash
provided by short-term investment transactions
|
-
|
|
510
|
Other,
net
|
(33)
|
|
270
|
Net cash (used for)
provided by investing activities
|
(547)
|
|
211
|
|
|
|
|
Financing activities
|
|
|
|
Repurchases of common stock
|
(708)
|
|
(2,317)
|
Dividends
paid
|
(979)
|
|
(770)
|
Issuance
of long-term debt, net of related costs
|
-
|
|
1,980
|
Proceeds
from stock option exercises
|
337
|
|
81
|
Other,
net
|
91
|
|
(46)
|
Net cash used for
financing activities
|
(1,259)
|
|
(1,072)
|
|
|
|
|
Net
change in cash and cash equivalents
|
1,070
|
|
2,303
|
Cash
and cash equivalents at beginning of period
|
3,582
|
|
2,261
|
Cash
and cash equivalents at end of period
|
$
4,652
|
|
$
4,564
|
Lockheed Martin Corporation
|
|
|
|
|
Consolidated Statement of Stockholders'
Equity
|
|
|
|
|
(unaudited; in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Total
|
|
Common
|
|
Paid-In
|
|
Retained
|
|
Comprehensive
|
|
Stockholders'
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Loss
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at Dec. 31, 2011
|
$
321
|
|
$
-
|
|
$
11,937
|
|
$
(11,257)
|
|
$
1,001
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
-
|
|
-
|
|
2,176
|
|
-
|
|
2,176
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income, net of tax 1
|
-
|
|
-
|
|
-
|
|
675
|
|
675
|
|
|
|
|
|
|
|
|
|
|
Repurchases of common stock 2
|
(8)
|
|
(669)
|
|
(45)
|
|
-
|
|
(722)
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared 3
|
-
|
|
-
|
|
(1,365)
|
|
-
|
|
(1,365)
|
|
|
|
|
|
|
|
|
|
|
Stock-based awards and ESOP activity
|
8
|
|
669
|
|
-
|
|
-
|
|
677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
at Sept. 30, 2012
|
$
321
|
|
$
-
|
|
$
12,703
|
|
$
(10,582)
|
|
$
2,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Primarily represents the
reclassification adjustment for recognition of prior period amounts
related to postretirement benefit plans of $609 million.
|
2 The Corporation repurchased 3.3
million shares of its common stock for $294 million during the
quarter ended Sept. 30, 2012. For the nine months ended Sept.
30, 2012, the
Corporation repurchased 8.2 million shares for $722 million. The
Corporation's Board of Directors has approved a share repurchase
program, authorizing an amount available
for share repurchases of $6.5 billion. As of Sept. 30, 2012,
the Corporation had repurchased a total of 51.2 million shares of
its common stock under its share repurchase
program for $3.9 billion, and had remaining authorization of $2.6
billion for future share repurchases.
|
3 Includes dividends of $1.00 per
share declared during each of the quarters ended March 25, 2012,
June 24, 2012 and Sept. 30, 2012. Additionally includes a
fourth quarter dividend
of $1.15 per share declared during the quarter ended Sept. 30,
2012.
|
Lockheed Martin Corporation
|
|
|
|
|
|
|
|
Operating Data
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept.
30,
2012
|
|
Dec.
31,
2011
|
|
|
|
|
|
Backlog
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
26,600
|
|
$
30,500
|
|
|
|
|
|
Electronic
Systems
|
|
25,300
|
|
24,900
|
|
|
|
|
|
Information Systems & Global Solutions
|
8,200
|
|
9,300
|
|
|
|
|
|
Space
Systems
|
|
15,500
|
|
16,000
|
|
|
|
|
|
Total backlog
|
|
$
75,600
|
|
$
80,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
|
|
|
Aircraft Deliveries
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
Sept.
30,
2012
|
|
Sept.
25,
2011
|
|
|
|
|
|
|
|
|
|
|
F-16
|
|
6
|
|
5
|
|
|
29
|
|
17
|
F-22
|
|
-
|
|
-
|
|
|
8
|
|
8
|
F-35
|
|
12
|
|
5
|
|
|
17
|
|
7
|
C-130J
|
|
8
|
|
13
|
|
|
25
|
|
26
|
C-5M
|
|
1
|
|
1
|
|
|
2
|
|
2
|
SOURCE Lockheed Martin Corporation