Lockheed Martin Reports Third Quarter 2024 Financial Results
-
Net sales of
$17.1 billion , an increase of 1% year over year -
Net earnings of
$1.6 billion , or$6.80 per share -
Cash from operations of
$2.4 billion and free cash flow of$2.1 billion -
$1.6 billion of cash returned to shareholders through dividends and share repurchases -
Increased share repurchase authority by
$3.0 billion to a total authorization of$10.3 billion -
Increased quarterly dividend 5% to
$3.30 per share - 2024 financial outlook increased
"In the third quarter, we advanced our strategic, operational and financial priorities, as demonstrated by our record backlog of more than
"As a result of our strong year-to-date results and confidence in our near-term performance, we are raising the outlook for full year 2024 sales, segment operating profit, EPS and free cash flow. Looking forward, we continue to make progress on the three key initiatives of our 21st Century Security® strategy of strengthening the resiliency and scalability of our production system, accelerating cutting edge digital and physical technologies into all our mission solutions and our internal operations, and expanding international partnerships to broaden our production capacity and drive more international sales. We are making substantial investments in these areas, while continuing to focus on our fundamental financial objective of driving free cash flow per share growth to generate returns for shareholders. Given our confidence in the company's ability to deliver on these objectives, our Board has also approved a five percent increase in our quarterly dividend, the 22nd consecutive year of increases."
Summary Financial Results
The following table presents the company's summary financial results.
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(in millions, except per share data) |
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Quarters Ended |
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Nine Months Ended |
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|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net sales |
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$ 17,104 |
|
$ 16,878 |
|
$ 52,421 |
|
$ 48,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment operating profit1 |
|
$ 1,870 |
|
$ 1,810 |
|
$ 5,657 |
|
$ 5,347 |
|
|
Unallocated items |
|
|
|
|
|
|
|
|
|
|
FAS/CAS pension operating adjustment |
|
406 |
|
414 |
|
1,218 |
|
1,245 |
|
|
Impairment and severance charges |
|
— |
|
— |
|
(87) |
|
— |
|
|
Intangible asset amortization expense |
|
(61) |
|
(61) |
|
(183) |
|
(185) |
|
|
Other, net |
|
(75) |
|
(121) |
|
(288) |
|
(193) |
|
|
Total unallocated items |
|
270 |
|
232 |
|
660 |
|
867 |
|
|
Consolidated operating profit |
|
$ 2,140 |
|
$ 2,042 |
|
$ 6,317 |
|
$ 6,214 |
|
|
|
|
|
|
|
|
|
|
|
|
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Net earnings2 |
|
$ 1,623 |
|
$ 1,684 |
|
$ 4,809 |
|
$ 5,054 |
|
|
|
|
|
|
|
|
|
|
|
|
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Diluted earnings per share2 |
|
$ 6.80 |
|
$ 6.73 |
|
$ 20.05 |
|
$ 19.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from operations3 |
|
$ 2,438 |
|
$ 2,891 |
|
$ 5,949 |
|
$ 5,555 |
|
|
Capital expenditures |
|
(355) |
|
(364) |
|
(1,103) |
|
(987) |
|
|
Free cash flow1,3 |
|
$ 2,083 |
|
$ 2,527 |
|
$ 4,846 |
|
$ 4,568 |
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1 |
Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information. |
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2 |
Net earnings for the quarter ended |
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3 |
See the "Cash Flows and Capital Deployment Activities" section of this news release for more information. |
F-35 Lots 18-19 Contract Update
The company remains in negotiations with the
2024 Financial Outlook
The following table and other sections of this news release contain forward-looking statements, which are based on the company's current expectations. Actual results may differ materially from those projected. It is the company's practice not to incorporate adjustments into its financial outlook for proposed or potential acquisitions, divestitures, ventures, pension risk transfer transactions or discretionary contributions, financing transactions, changes in law, or new accounting standards until such items have been consummated, enacted or adopted. For additional factors that may impact the company's actual results, refer to the "Forward-Looking Statements" section in this news release.
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(in millions, except per share data) |
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Current Update1 |
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Net sales |
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Business segment operating profit2 |
|
|
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|
|
Total FAS/CAS pension adjustment |
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Diluted earnings per share3 |
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|
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Cash from operations |
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Capital expenditures |
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Free cash flow2 |
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1 |
The company's current 2024 financial outlook is premised on receiving contractual authorization and funding on the F-35 Lots 18-19 production contract in the fourth quarter of 2024. |
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2 |
Business segment operating profit and free cash flow are non-GAAP measures. See the "Use of Non-GAAP Financial Measures" section of this news release for more information. |
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3 |
Although the company typically does not update its outlook for proposed changes in law, the above includes the effect of confirming that certain expenditures incurred in the performance of cost-type contracts are not subject to capitalization for tax purposes. The company believes incorporating the clarification from the Notice more accurately reflects its expectations because the Notice describes the tax treatment of certain expenditures in accordance with the company's analysis of the Internal Revenue Code. |
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Cash Flows and Capital Deployment Activities
The decrease in operating and free cash flows in the third quarter of 2024 compared to the same period in 2023 was primarily due to a decrease in working capital (defined as receivables, contract assets, and inventories less accounts payable and contract liabilities), which includes the cash impacts for the lack of additional contractual authorization and funding from the
The company's cash activities in the third quarter of 2024, included the following:
- paying cash dividends of $749 million; and
- paying
$850 million to repurchase 1.5 million shares.
As previously announced on
Additionally, on
Segment Results
The company operates in four business segments organized based on the nature of products and services offered: Aeronautics, Missiles and Fire Control (MFC),
|
(in millions) |
|
Quarters Ended |
|
Nine Months Ended |
|
||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
Aeronautics |
|
$ 6,487 |
|
$ 6,717 |
|
$ 20,609 |
|
$ 19,861 |
|
|
Missiles and Fire Control |
|
3,175 |
|
2,939 |
|
9,270 |
|
8,082 |
|
|
|
|
4,367 |
|
4,121 |
|
13,003 |
|
11,528 |
|
|
Space |
|
3,075 |
|
3,101 |
|
9,539 |
|
9,226 |
|
|
Total net sales |
|
$ 17,104 |
|
$ 16,878 |
|
$ 52,421 |
|
$ 48,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
|
|
|
|
|
|
|
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Aeronautics |
|
$ 659 |
|
$ 671 |
|
$ 2,089 |
|
$ 2,064 |
|
|
Missiles and Fire Control |
|
456 |
|
398 |
|
1,217 |
|
1,146 |
|
|
|
|
483 |
|
482 |
|
1,408 |
|
1,286 |
|
|
Space |
|
272 |
|
259 |
|
943 |
|
851 |
|
|
Total business segment operating profit |
|
1,870 |
|
1,810 |
|
5,657 |
|
5,347 |
|
|
Unallocated items |
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating adjustment |
|
406 |
|
414 |
|
1,218 |
|
1,245 |
|
|
Impairment and severance charges |
|
— |
|
— |
|
(87) |
|
— |
|
|
Intangible asset amortization expense |
|
(61) |
|
(61) |
|
(183) |
|
(185) |
|
|
Other, net |
|
(75) |
|
(121) |
|
(288) |
|
(193) |
|
|
Total unallocated items |
|
270 |
|
232 |
|
660 |
|
867 |
|
|
Total consolidated operating profit |
|
$ 2,140 |
|
$ 2,042 |
|
$ 6,317 |
|
$ 6,214 |
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For information on factors impacting comparability of the company's segment sales, operating profit and operating margins, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the year ended
The company's consolidated net favorable profit booking rate adjustments represented approximately 20% and 19% of total segment operating profit in the quarters ended
Aeronautics
|
(in millions) |
|
Quarters Ended |
|
Nine Months Ended |
|
||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net sales |
|
$ 6,487 |
|
$ 6,717 |
|
$ 20,609 |
|
$ 19,861 |
|
|
Operating profit |
|
659 |
|
671 |
|
2,089 |
|
2,064 |
|
|
Operating margin |
|
10.2 % |
|
10.0 % |
|
10.1 % |
|
10.4 % |
|
Aeronautics' net sales in the third quarter of 2024 decreased
Aeronautics' operating profit in the third quarter of 2024 decreased
Missiles and Fire Control
|
(in millions) |
|
Quarters Ended |
|
Nine Months Ended |
|
||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net sales |
|
$ 3,175 |
|
$ 2,939 |
|
$ 9,270 |
|
$ 8,082 |
|
|
Operating profit |
|
456 |
|
398 |
|
1,217 |
|
1,146 |
|
|
Operating margin |
|
14.4 % |
|
13.5 % |
|
13.1 % |
|
14.2 % |
|
MFC's net sales in the third quarter of 2024 increased
MFC's operating profit in the third quarter of 2024 increased
|
(in millions) |
|
Quarters Ended |
|
Nine Months Ended |
|
||||
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|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net sales |
|
$ 4,367 |
|
$ 4,121 |
|
$ 13,003 |
|
$ 11,528 |
|
|
Operating profit |
|
483 |
|
482 |
|
1,408 |
|
1,286 |
|
|
Operating margin |
|
11.1 % |
|
11.7 % |
|
10.8 % |
|
11.2 % |
|
RMS' net sales in the third quarter of 2024 increased
RMS' operating profit in the third quarter of 2024 was comparable to the same period in 2023 as a
Space
|
(in millions) |
|
Quarters Ended |
|
Nine Months Ended |
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||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
Net sales |
|
$ 3,075 |
|
$ 3,101 |
|
$ 9,539 |
|
$ 9,226 |
|
|
Operating profit |
|
272 |
|
259 |
|
943 |
|
851 |
|
|
Operating margin |
|
8.8 % |
|
8.4 % |
|
9.9 % |
|
9.2 % |
|
Space's net sales in the third quarter of 2024 decreased
Space's operating profit in the third quarter of 2024 increased
Total equity earnings (ULA) represented approximately $5 million, or 2% of Space's operating profit in the third quarter of 2024, compared to approximately
Income Taxes
The company's effective income tax rate was 15.4% and 13.8% for the quarters ended
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted accounting principles (non-GAAP) financial measures (as defined by
Business segment operating profit
Business segment operating profit represents operating profit from the company's business segments before unallocated income and expense. This measure is used by the company's senior management in evaluating the performance of its business segments and is a performance goal in the company's annual incentive plan. Business segment operating margin is calculated by dividing business segment operating profit by sales. The table below reconciles the non-GAAP measure business segment operating profit with the most directly comparable GAAP financial measure, consolidated operating profit.
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(in millions) |
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2024 Outlook |
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Business segment operating profit (non-GAAP) |
|
|
|
|
|
FAS/CAS operating adjustment1 |
|
|
~1,625 |
|
|
Intangible asset amortization expense |
|
|
~(245) |
|
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Other, net |
|
|
~(485) |
|
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Consolidated operating profit (GAAP) |
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1 |
Reflects the amount by which total CAS pension cost of |
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Free cash flow
Free cash flow is cash from operations less capital expenditures. The company's capital expenditures are comprised of equipment and facilities infrastructure and information technology (inclusive of costs for the development or purchase of internal-use software that are capitalized). The company uses free cash flow to evaluate its business performance and overall liquidity and it is a performance goal in the company's annual and long-term incentive plans. The company believes free cash flow is a useful measure for investors because it represents the amount of cash generated from operations after reinvesting in the business and that may be available to return to stockholders and creditors (through dividends, stock repurchases and debt repayments) or available to fund acquisitions or other investments. The entire free cash flow amount is not necessarily available for discretionary expenditures, however, because it does not account for certain mandatory expenditures, such as the repayment of maturing debt and future pension contributions.
Adjusted earnings before income taxes; adjusted net earnings and adjusted diluted EPS
Earnings before income taxes, net earnings and diluted earnings per share (EPS) were impacted by certain non-operational items for all periods. Management believes the presentation of these measures adjusted for the impacts of these non-operational items is useful to investors in understanding the company's underlying business performance and comparing performance from period to period. The tax effects related to each adjustment that impacted earnings before income taxes are based on a blended tax rate that combines the federal statutory rate of 21% plus an estimated state tax rate.
The table below shows the impact to earnings before income taxes, net earnings and diluted EPS for certain non-operational items:
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(in millions, except per share data) |
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Quarters Ended |
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2024 |
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2023 |
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Earnings |
Net |
Diluted |
|
Earnings |
Net |
Diluted |
|
|
As Reported (GAAP) |
|
$ 1,918 |
$ 1,623 |
$ 6.80 |
|
$ 1,953 |
$ 1,684 |
$ 6.73 |
|
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Mark-to-market investment losses1 |
|
14 |
10 |
0.04 |
|
14 |
11 |
0.04 |
|
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As Adjusted (Non-GAAP) |
|
$ 1,932 |
$ 1,633 |
$ 6.84 |
|
$ 1,967 |
$ 1,695 |
$ 6.77 |
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1 |
Includes changes in valuations of the company's net assets and liabilities for deferred compensation plans and early-stage company investments. |
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Webcast and Conference Call Information
For additional information, visit the company's website: www.lockheedmartin.com.
About
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements within the meaning of the federal securities laws, and are based on
- the company's reliance on contracts with the
U.S. Government , which are dependent onU.S. Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms; - budget uncertainty, the risk of future budget cuts, the impact of continuing resolution funding mechanisms and the debt ceiling and the potential for government shutdowns and changing funding and acquisition priorities;
- risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program;
- planned production rates and orders for significant programs, compliance with stringent performance and reliability standards, and materials availability, including government furnished equipment;
- the timing of contract awards or delays in contract definitization as well as the timing and customer acceptance of product deliveries and performance milestones;
- the company's ability to recover costs under
U.S. Government contracts and the mix of fixed-price and cost-reimbursable contracts; - customer procurement policies that shift risk to contractors, including competitively bid programs with fixed-price development work or follow-on production options or other financial risks; and the impact of investments, cost overruns or other cost pressures and performance issues on fixed price contracts;
- changes in procurement and other regulations and policies affecting the company's industry, export of its products, cost allowability or recovery, preferred contract type, and performance and progress payments policy;
- performance and financial viability of key suppliers, teammates, joint ventures (including
United Launch Alliance ), joint venture partners, subcontractors and customers; - economic, industry, business and political conditions including their effects on governmental policy;
- the impact of inflation and other cost pressures;
- the impact of pandemics and epidemics on the company's business and financial results, including supply chain disruptions and delays, employee absences, and program delays;
- government actions that prevent the sale or delivery of the company's products (such as delays in approvals for exports requiring Congressional notification);
- trade policies or sanctions (including Chinese sanctions on the company or its suppliers, teammates or partners,
U.S. Government sanctions on Türkish entities and persons, and indirect effects of sanctions onRussia to the company's supply chain); - the company's success expanding into and doing business in adjacent markets and internationally and the risks posed by international sales;
- changes in foreign national priorities and foreign government budgets and planned orders, including potential effects from fluctuations in currency exchange rates;
- the competitive environment for the company's products and services, including competition from startups and non-traditional defense contractors;
- the company's ability to develop and commercialize new technologies and products, including emerging digital and network technologies and capabilities;
- the company's ability to benefit fully from or adequately protect its intellectual property rights;
- the company's ability to attract and retain a highly skilled workforce and the impact of work stoppages or other labor disruptions;
- cyber or other security threats or other disruptions faced by the company or its suppliers;
- the company's ability to implement and continue, and the timing and impact of, capitalization changes such as share repurchases, dividend payments and financing transactions;
- the accuracy of the company's estimates and projections;
- changes in pension plan assumptions and actual returns on pension assets; cash funding requirements and pension risk transfers and associated settlement charges;
- realizing the anticipated benefits of acquisitions or divestitures, investments, joint ventures, teaming arrangements or internal reorganizations, and market volatility affecting the fair value of investments that are marked to market;
- the company's efforts to increase the efficiency of its operations and improve the affordability of its products and services, including through digital transformation and cost reduction initiatives;
- the risk of an impairment of the company's assets, including the potential impairment of goodwill and intangibles;
- the availability and adequacy of the company's insurance and indemnities;
- impacts of climate change and compliance with laws, regulations, policies, and customer requirements in response to climate change concerns;
- changes in accounting,
U.S. or foreign tax, export or other laws, regulations, and policies and their interpretation or application, and changes in the amount or reevaluation of uncertain tax positions; and - the outcome of legal proceedings, bid protests, environmental remediation efforts, audits, government investigations or government allegations that the company has failed to comply with law, other contingencies and
U.S. Government identification of deficiencies in its business systems.
These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see the company's filings with the
The company's actual financial results likely will be different from those projected due to the inherent nature of projections. Given these uncertainties, forward-looking statements should not be relied on in making investment decisions. The forward-looking statements contained in this news release speak only as of the date of its filing. Except where required by applicable law, the company expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
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Consolidated Statements of Earnings1 |
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(unaudited; in millions, except per share data) |
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Quarters Ended |
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Nine Months Ended |
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|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ 17,104 |
|
$ 16,878 |
|
$ 52,421 |
|
$ 48,697 |
|
Cost of sales |
|
(14,987) |
|
(14,830) |
|
(46,181) |
|
(42,513) |
|
Gross profit |
|
2,117 |
|
2,048 |
|
6,240 |
|
6,184 |
|
Other income (expense), net |
|
23 |
|
(6) |
|
77 |
|
30 |
|
Operating profit |
|
2,140 |
|
2,042 |
|
6,317 |
|
6,214 |
|
Interest expense |
|
(256) |
|
(237) |
|
(772) |
|
(662) |
|
Non-service FAS pension income |
|
16 |
|
111 |
|
47 |
|
332 |
|
Other non-operating income, net |
|
18 |
|
37 |
|
109 |
|
69 |
|
Earnings before income taxes |
|
1,918 |
|
1,953 |
|
5,701 |
|
5,953 |
|
Income tax expense |
|
(295) |
|
(269) |
|
(892) |
|
(899) |
|
Net earnings |
|
$ 1,623 |
|
$ 1,684 |
|
$ 4,809 |
|
$ 5,054 |
|
Effective tax rate |
|
15.4 % |
|
13.8 % |
|
15.6 % |
|
15.1 % |
|
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|
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Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 6.83 |
|
$ 6.75 |
|
$ 20.12 |
|
$ 20.04 |
|
Diluted |
|
$ 6.80 |
|
$ 6.73 |
|
$ 20.05 |
|
$ 19.97 |
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Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
237.5 |
|
249.3 |
|
239.0 |
|
252.2 |
|
Diluted |
|
238.6 |
|
250.2 |
|
239.9 |
|
253.1 |
|
|
|
|
|
|
|
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|
Common shares reported in stockholders' equity at end of period |
|
|
|
|
|
236 |
|
247 |
|
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|
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1 |
The company 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 |
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Business Segment Summary Operating Results |
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(unaudited; in millions) |
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Quarters Ended |
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Nine Months Ended |
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||||
|
|
|
|
|
|
|
% |
|
|
|
|
|
% |
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics |
|
$ 6,487 |
|
$ 6,717 |
|
(3 %) |
|
$ 20,609 |
|
$ 19,861 |
|
4 % |
|
Missiles and Fire Control |
|
3,175 |
|
2,939 |
|
8 % |
|
9,270 |
|
8,082 |
|
15 % |
|
|
|
4,367 |
|
4,121 |
|
6 % |
|
13,003 |
|
11,528 |
|
13 % |
|
Space |
|
3,075 |
|
3,101 |
|
(1 %) |
|
9,539 |
|
9,226 |
|
3 % |
|
Total net sales |
|
$ 17,104 |
|
$ 16,878 |
|
1 % |
|
$ 52,421 |
|
$ 48,697 |
|
8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics |
|
$ 659 |
|
$ 671 |
|
(2 %) |
|
$ 2,089 |
|
$ 2,064 |
|
1 % |
|
Missiles and Fire Control |
|
456 |
|
398 |
|
15 % |
|
1,217 |
|
1,146 |
|
6 % |
|
|
|
483 |
|
482 |
|
— % |
|
1,408 |
|
1,286 |
|
9 % |
|
Space |
|
272 |
|
259 |
|
5 % |
|
943 |
|
851 |
|
11 % |
|
Total business segment operating profit |
|
1,870 |
|
1,810 |
|
3 % |
|
5,657 |
|
5,347 |
|
6 % |
|
Unallocated items |
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating adjustment |
|
406 |
|
414 |
|
|
|
1,218 |
|
1,245 |
|
|
|
Impairment and severance charges |
|
— |
|
— |
|
|
|
(87) |
|
— |
|
|
|
Intangible asset amortization expense |
|
(61) |
|
(61) |
|
|
|
(183) |
|
(185) |
|
|
|
Other, net |
|
(75) |
|
(121) |
|
|
|
(288) |
|
(193) |
|
|
|
Total unallocated items |
|
270 |
|
232 |
|
16 % |
|
660 |
|
867 |
|
(24 %) |
|
Total consolidated operating profit |
|
$ 2,140 |
|
$ 2,042 |
|
5 % |
|
$ 6,317 |
|
$ 6,214 |
|
2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics |
|
10.2 % |
|
10.0 % |
|
|
|
10.1 % |
|
10.4 % |
|
|
|
Missiles and Fire Control |
|
14.4 % |
|
13.5 % |
|
|
|
13.1 % |
|
14.2 % |
|
|
|
|
|
11.1 % |
|
11.7 % |
|
|
|
10.8 % |
|
11.2 % |
|
|
|
Space |
|
8.8 % |
|
8.4 % |
|
|
|
9.9 % |
|
9.2 % |
|
|
|
Total business segment operating margin |
|
10.9 % |
|
10.7 % |
|
|
|
10.8 % |
|
11.0 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated operating margin |
|
12.5 % |
|
12.1 % |
|
|
|
12.1 % |
|
12.8 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selected Financial Data |
|||||
(unaudited; in millions) |
|||||
|
|||||
|
|
|
2024 Outlook |
|
2023 Actual |
|
Total FAS income CAS cost |
|
|
|
|
|
FAS pension income |
|
$ — |
|
$ 378 |
|
Less: CAS pension cost |
|
1,685 |
|
1,725 |
|
Total FAS/CAS pension adjustment |
|
$ 1,685 |
|
$ 2,103 |
|
|
|
|
|
|
|
Service and non-service cost reconciliation |
|
|
|
|
|
FAS pension service cost |
|
$ (60) |
|
$ (65) |
|
Less: CAS pension cost |
|
1,685 |
|
1,725 |
|
Total FAS/CAS pension operating adjustment |
|
1,625 |
|
1,660 |
|
Non-service FAS pension income |
|
60 |
|
443 |
|
Total FAS/CAS pension adjustment |
|
$ 1,685 |
|
$ 2,103 |
|
|||||
Consolidated Balance Sheets |
|||||
(unaudited, in millions, except par value) |
|||||
|
|||||
|
|
|
|
|
2023 |
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ 3,151 |
|
$ 1,442 |
|
Receivables, net |
|
2,141 |
|
2,132 |
|
Contract assets |
|
14,224 |
|
13,183 |
|
Inventories |
|
3,234 |
|
3,132 |
|
Other current assets |
|
461 |
|
632 |
|
Total current assets |
|
23,211 |
|
20,521 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
8,454 |
|
8,370 |
|
|
|
10,800 |
|
10,799 |
|
Intangible assets, net |
|
1,979 |
|
2,212 |
|
Deferred income taxes |
|
3,105 |
|
2,953 |
|
Other noncurrent assets |
|
7,971 |
|
7,601 |
|
Total assets |
|
$ 55,520 |
|
$ 52,456 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
$ 3,221 |
|
$ 2,312 |
|
Salaries, benefits and payroll taxes |
|
3,076 |
|
3,133 |
|
Contract liabilities |
|
9,051 |
|
9,190 |
|
Current maturities of long-term debt |
|
142 |
|
168 |
|
Other current liabilities |
|
2,320 |
|
2,134 |
|
Total current liabilities |
|
17,810 |
|
16,937 |
|
|
|
|
|
|
|
Long-term debt, net |
|
19,179 |
|
17,291 |
|
Accrued pension liabilities |
|
6,077 |
|
6,162 |
|
Other noncurrent liabilities |
|
5,254 |
|
5,231 |
|
Total liabilities |
|
48,320 |
|
45,621 |
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Common stock, |
|
236 |
|
240 |
|
Additional paid-in capital |
|
— |
|
— |
|
Retained earnings |
|
15,657 |
|
15,398 |
|
Accumulated other comprehensive loss |
|
(8,693) |
|
(8,803) |
|
Total stockholders' equity |
|
7,200 |
|
6,835 |
|
Total liabilities and equity |
|
$ 55,520 |
|
$ 52,456 |
|
|
|
|
|
|
|
||||
Consolidated Statements of Cash Flows |
||||
(unaudited; in millions) |
||||
|
||||
|
|
Nine Months Ended |
||
|
|
|
|
|
Operating activities |
|
|
|
|
Net earnings |
|
$ 4,809 |
|
$ 5,054 |
Adjustments to reconcile net earnings to net cash provided by operating activities |
|
|
|
|
Depreciation and amortization |
|
1,100 |
|
1,009 |
Stock-based compensation |
|
229 |
|
221 |
Deferred income taxes |
|
(174) |
|
(395) |
Impairment and severance charges |
|
87 |
|
— |
Changes in assets and liabilities |
|
|
|
|
Receivables, net |
|
(9) |
|
100 |
Contract assets |
|
(1,041) |
|
(1,287) |
Inventories |
|
(102) |
|
(224) |
Accounts payable |
|
970 |
|
1,731 |
Contract liabilities |
|
(139) |
|
(552) |
Income taxes |
|
66 |
|
(81) |
Qualified defined benefit pension plans |
|
(2) |
|
(283) |
Other, net |
|
155 |
|
262 |
Net cash provided by operating activities |
|
5,949 |
|
5,555 |
|
|
|
|
|
Investing activities |
|
|
|
|
Capital expenditures |
|
(1,103) |
|
(987) |
Other, net |
|
149 |
|
(4) |
Net cash used for investing activities |
|
(954) |
|
(991) |
|
|
|
|
|
Financing activities |
|
|
|
|
Issuance of long-term debt, net of related costs |
|
1,980 |
|
1,975 |
Repayments of long-term debt |
|
(168) |
|
(115) |
Repurchases of common stock |
|
(2,700) |
|
(3,000) |
Dividends paid |
|
(2,281) |
|
(2,289) |
Other, net |
|
(117) |
|
(131) |
Net cash used for financing activities |
|
(3,286) |
|
(3,560) |
|
|
|
|
|
Net change in cash and cash equivalents |
|
1,709 |
|
1,004 |
Cash and cash equivalents at beginning of period |
|
1,442 |
|
2,547 |
Cash and cash equivalents at end of period |
|
$ 3,151 |
|
$ 3,551 |
|
|
|
|
|
|
|||||
Other Financial and Operating Information |
|||||
(unaudited; in millions, except for aircraft deliveries and weeks) |
|||||
|
|||||
|
Backlog |
|
2024 |
|
2023 |
|
Aeronautics |
|
$ 50,988 |
|
$ 60,156 |
|
Missiles and Fire Control |
|
40,722 |
|
32,229 |
|
|
|
37,571 |
|
37,726 |
|
Space |
|
36,412 |
|
30,456 |
|
Total backlog |
|
$ 165,693 |
|
$ 160,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended |
|
Nine Months Ended |
||||
|
Aircraft Deliveries |
|
|
|
|
|
|
|
|
|
F-35 |
|
48 |
|
30 |
|
48 |
|
80 |
|
F-16 |
|
2 |
|
1 |
|
9 |
|
2 |
|
C-130J |
|
4 |
|
7 |
|
13 |
|
13 |
|
Government helicopter programs |
|
24 |
|
3 |
|
47 |
|
24 |
|
Commercial helicopter programs |
|
— |
|
3 |
|
— |
|
4 |
|
International military helicopter programs |
|
4 |
|
1 |
|
9 |
|
1 |
|
Number of Weeks in Reporting Period 1 |
|
2024 |
2023 |
|
First quarter |
|
13 |
12 |
|
Second quarter |
|
13 |
13 |
|
Third quarter |
|
13 |
13 |
|
Fourth quarter |
|
13 |
14 |
|
|
|
|
|
1 |
Calendar quarters are typically comprised of 13 weeks. However, the company closes its books and records on the last Sunday of each month, except for the month of Dec., as its fiscal year ends on |
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SOURCE