BETHESDA, Md., Jan. 24, 2017 /PRNewswire/ -- Lockheed
Martin (NYSE: LMT) today reported fourth quarter 2016 net sales of
$13.8 billion, compared to
$11.5 billion in the fourth quarter
of 2015. Net earnings from continuing operations in the fourth
quarter of 2016 were $959 million, or
$3.25 per share, compared to
$817 million, or $2.63 per share, in the fourth quarter of 2015.
Cash from operations in the fourth quarter of 2016 was $729 million, compared to $1.4 billion in the fourth quarter of 2015.
Net sales in 2016 were $47.2
billion, compared to $40.5
billion in 2015. Net earnings from continuing operations in
2016 were $3.8 billion, or
$12.38 per share, compared to
$3.1 billion, or $9.93 per share, in 2015. Cash from operations in
2016 was $5.2 billion, compared to
cash from operations in 2015 of $5.1
billion.
"Our dedicated employees delivered outstanding performance for
our customers in 2016, resulting in exceptional financial results,"
said Chairman, President, and CEO Marillyn
Hewson. "Looking ahead to 2017, we remain focused on
meeting commitments to customers, pursuing new business growth
opportunities, investing in innovative solutions to drive
affordability and prepare for the future, and returning value to
our shareholders."
Summary Financial Results
The following table presents the Corporation's summary financial
results.
|
(in millions, except
per share data)1
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Net
sales
|
|
$
|
13,752
|
|
|
$
|
11,520
|
|
|
$
|
47,248
|
|
|
$
|
40,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit 2
|
|
$
|
1,290
|
|
|
$
|
1,280
|
|
|
$
|
5,100
|
|
|
$
|
4,978
|
|
|
|
Unallocated items
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS pension
adjustment 3
|
|
|
230
|
|
|
|
95
|
|
|
|
902
|
|
|
|
400
|
|
|
|
Special item -
severance charges
|
|
|
–
|
|
|
|
(67)
|
|
|
|
(80)
|
|
|
|
(82)
|
|
|
|
Stock-based
compensation
|
|
|
(25)
|
|
|
|
(20)
|
|
|
|
(149)
|
|
|
|
(133)
|
|
|
|
Other, net
5
|
|
|
(67)
|
|
|
|
(188)
|
|
|
|
(224)
|
|
|
|
(451)
|
|
|
|
Total unallocated
items
|
|
|
138
|
|
|
|
(180)
|
|
|
|
449
|
|
|
|
(266)
|
|
|
|
Consolidated
operating profit
|
|
$
|
1,428
|
|
|
$
|
1,100
|
|
|
$
|
5,549
|
|
|
$
|
4,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations 2,4,5
|
|
$
|
959
|
|
|
$
|
817
|
|
|
$
|
3,753
|
|
|
$
|
3,126
|
|
|
|
Discontinued operations
|
|
|
29
|
|
|
|
116
|
|
|
|
1,549
|
|
|
|
479
|
|
|
|
Net
earnings
|
|
$
|
988
|
|
|
$
|
933
|
|
|
$
|
5,302
|
|
|
$
|
3,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations 2,4,5
|
|
$
|
3.25
|
|
|
$
|
2.63
|
|
|
$
|
12.38
|
|
|
$
|
9.93
|
|
|
|
Discontinued operations
|
|
|
0.10
|
|
|
|
0.38
|
|
|
|
5.11
|
|
|
|
1.53
|
|
|
|
Diluted earnings
per share
|
|
$
|
3.35
|
|
|
$
|
3.01
|
|
|
$
|
17.49
|
|
|
$
|
11.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from
operations 1,4
|
|
$
|
729
|
|
|
$
|
1,364
|
|
|
$
|
5,189
|
|
|
$
|
5,101
|
|
|
|
1 The
operating results of the Corporation'sformer Information Systems
& Global Solutions (IS&GS) business, which was divested on
Aug. 16, 2016, have been classified as discontinued operations
in the year ended Dec. 31, 2016 and in the quarter and year ended
Dec. 31, 2015. However, cash from operations includes the cash
flows generated by the IS&GS business through the Aug. 16, 2016
divestiture date, as the Corporation retained this cash as part of
the divestiture. A $1.2 billion gain recorded as a result of the
divestiture of the IS&GS business is included in net earnings
from discontinued operations in the year ended Dec. 31, 2016.
Certain reclassifications of Unallocated items were made as a
result of the divestiture of the IS&GS business. See the
"Unallocated items" section of this news release for additional
information related to these reclassifications.
2 Business segment operating profit for the year
ended Dec. 31, 2016 includes a non-cash gain of $127 million
recognized at the Corporation's Space Systems business segment
related to the consolidation of AWE Management Limited (AWE) upon
obtaining control of this venture on Aug. 24, 2016, which increased
net earnings from continuing operations $104 million ($0.34 per
share).
3 FAS/CAS pension adjustment increased in the quarter and
year ended Dec 31, 2016 primarily due to the increase in CAS cost
as a consequence of CAS Harmonization. See description in section
titled "Section Results" in this news release.
4 In 2016, the Corporation adopted a new accounting standard
issued by the Financial Accounting Standards Board that changed
certain aspects of the accounting for equity awards granted to
employees. As a result, the Corporation recognized additional
income tax benefits as an increase to net earnings from continuing
operations and operating cash flows of $15 million ($0.05 per
share) and $152 million ($0.50 per share) in the quarter and year
ended Dec. 31, 2016. The new accounting standard did not impact any
periods prior to Jan. 1, 2016.
5 Other, net in the
quarter and year ended Dec. 31, 2015 includes a non-cash asset
impairment charge of about $90 million related to the Corporation's
decision to divest its Lockheed Martin Commercial Flight Training
(LMCFT) business. This charge was partially offset by a net
deferred tax benefit of about $80 million, which is recorded in
income tax expense. The net impact reduced net earnings by about
$10 million ($0.03 per share) in the quarter and year ended Dec.
31, 2015. The Corporation completed the sale of LMCFT in the
second quarter of 2016. Additionally, Other, net in the quarter and
year ended Dec. 31, 2015 includes approximately $38 million ($0.08
per share) of non-recoverable transaction costs associated with the
acquisition of Sikorsky.
|
|
2017 Financial Outlook
The following table and other sections of this news 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 financial outlook for
proposed acquisitions, divestitures, ventures and changes in law
until such items have been consummated or enacted. For additional
factors that may impact the Corporation's actual results, refer to
the "Forward-Looking Statements" section in this news release.
|
(in millions, except
per share data)
|
|
|
|
Current
Outlook
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
|
$49,400 –
$50,600
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit
|
|
|
|
$5,015 –
$5,135
|
|
|
FAS/CAS
pension adjustment
|
|
|
|
~880
|
|
|
Other,
net
|
|
|
~(300)
|
|
|
Consolidated
operating profit
|
|
|
|
$5,595 –
$5,715
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
|
|
$12.25 –
$12.55
|
|
|
|
|
|
|
|
|
|
Cash from
operations
|
|
|
|
≥ $5,700
|
|
|
|
|
The Corporation's outlook for the 2017 FAS/CAS pension benefit
is expected to be approximately $880
million. This incorporates a year end 2016 discount rate of
4.125%, a 25 basis point decrease from the end of 2015; an actual
investment return during 2016 of approximately 5.0%; a 50 basis
point reduction in our long-term rate of return assumption from
8.00% to 7.50%; and the revised longevity assumptions released on
Oct. 20, 2016 by the Society of
Actuaries. There are no planned contributions to our legacy
qualified defined benefit pension plans in 2017.
Cash Deployment Activities
The Corporation's cash deployment activities in the quarter and
year ended Dec. 31, 2016 consisted of
the following:
- repurchasing 3.2 million shares for $816
million and 8.9 million shares for $2.1 billion during the quarter and year ended
Dec. 31, 2016, compared to 3.2
million shares for $707 million and
15.2 million shares for $3.1 billion
during the quarter and year ended Dec. 31,
2015;
- paying cash dividends of $530
million and $2.0 billion
during the quarter and year ended Dec. 31,
2016, compared to $505 million
and $1.9 billion during the quarter
and year ended Dec. 31, 2015;
- repaying $952 million of
long-term debt upon scheduled maturity during the year ended
Dec. 31, 2016, compared to no
repayments in the year ended Dec. 31,
2015; and
- making capital expenditures of $436
million and $1.1 billion
during the quarter and year ended Dec. 31,
2016, compared to $439 million
and $939 million during the quarter
and year ended Dec. 31, 2015.
Internal Controls
The Corporation is completing its assessment of the
effectiveness of its internal control over financial reporting as
of Dec. 31, 2016. However, the
Corporation expects to report a material weakness in internal
control over financial reporting at its Sikorsky Aircraft
Corporation (Sikorsky) business in its Annual Report on Form 10-K
for the year ended Dec. 31, 2016. A
material weakness is a deficiency, or combination of deficiencies,
in internal control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the
Corporation's annual or interim financial statements could occur
but will not be prevented or detected on a timely basis.
Sikorsky was acquired on Nov. 6,
2015 and generated about 10% of the Corporation's total net
sales for the year ended Dec. 31,
2016. Prior to 2016, Sikorsky was not included in
assessments of the effectiveness of the Corporation's internal
control over financial reporting as the U.S. Securities and
Exchange Commission (SEC) rules provide companies one year to
assess controls at an acquired entity. Accordingly, in the year
ended Dec. 31, 2016 the Corporation
has performed its first comprehensive assessment of the design and
effectiveness of internal controls at Sikorsky and determined that
Sikorsky's internal control over financial reporting was
ineffective as of Dec. 31, 2016.
Specifically, Sikorsky did not adequately identify, design and
implement appropriate process-level controls for its processes and
appropriate information technology controls for its information
technology systems. As of the date of this earnings release, there
have been no material errors in the financial results or balances
identified as a result of the control deficiencies at Sikorsky, and
there has been no restatement of prior period financial statements
and no change in previously released financial results were
required due to these control deficiencies.
The Corporation continues its review and will continue to
enhance the risk assessment process and the design of internal
controls over financial reporting at Sikorsky. The material
weakness will not be considered remediated until the applicable
remedial controls operate for a sufficient period of time and
management has concluded, through testing, that these controls are
operating effectively. The Corporation expects that the remediation
of this material weakness will be completed prior to the end of
fiscal year 2017.
Segment Results
The Corporation operates in four business segments organized
based on the nature of products and services offered: Aeronautics,
Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS)
and Space Systems.
The discussion and presentation of the operating results of the
Corporation's business segments in this news release have been
impacted by the following recent events:
- The Corporation completed the divestiture of its Information
Systems & Global Solutions (IS&GS) business on Aug. 16, 2016, which merged with a subsidiary of
Leidos Holdings, Inc. (Leidos). The discussion and presentation of
the Corporation's segment results for all periods presented in this
news release exclude the results of the IS&GS business.
- The Corporation's ownership interest in the AWE Management
Limited (AWE) venture increased by 18% on Aug. 24, 2016. As a result of the increase in
ownership interest, the Corporation now holds a 51% controlling
interest in AWE. Accordingly, the Corporation is required to
consolidate the AWE venture, which has been aligned under the
Corporation's Space Systems business segment. The discussion of
Space Systems operating results includes 100% of AWE's sales and
51% of AWE's operating profit since Aug. 24,
2016. Previously, the Corporation accounted for its
investment in AWE using the equity method of accounting. Under the
equity method, none of AWE's sales and only 33% of AWE's net
earnings were included in operating profit of the Space Systems
business segment.
- On Nov. 6, 2015, the Corporation
completed the acquisition of Sikorsky, which was aligned under its
RMS business segment. The discussion and presentation of the
operating results of the RMS business segment include the operating
results of Sikorsky since the Nov. 6,
2015 acquisition date.
Operating profit of the business segments includes the
Corporation's share of earnings or losses from equity method
investees as the operating activities of the equity method
investees are closely aligned with the operations of the
Corporation's business segments. United Launch Alliance (ULA),
which is part of the Space Systems business segment, is the
Corporation's primary equity method investee. Operating profit of
the Corporation's business segments excludes the FAS/CAS pension
adjustment, which represents the difference between total pension
expense recorded in accordance with U.S. generally accepted
accounting principles (FAS) and pension costs recoverable on U.S.
Government contracts as determined in accordance with U.S.
Government Cost Accounting Standards (CAS); expense for stock-based
compensation; the effects of items not considered part of
management's evaluation of segment operating performance, such as
charges related to significant severance actions and certain asset
impairments; gains or losses from divestitures; the effects of
certain legal settlements; corporate costs not allocated to the
Corporation's business segments; and other miscellaneous corporate
activities.
Changes in net sales and operating profit generally are
expressed in terms of volume. Changes in volume refer to increases
or decreases in sales or operating profit resulting from varying
production activity levels, deliveries or service levels on
individual contracts. Volume changes in segment operating profit
are typically based on the current profit booking rate for a
particular contract.
In addition, comparability of the Corporation's segment sales,
operating profit and operating margin may be impacted favorably or
unfavorably by changes in profit booking rates on the Corporation's
contracts accounted for using the percentage-of-completion method
of accounting. Increases in the profit booking rates, typically
referred to as risk retirements, usually relate to revisions in the
estimated total costs that reflect improved conditions on a
particular contract. Conversely, conditions on a particular
contract may deteriorate resulting in an increase in the estimated
total costs to complete and a reduction in the profit booking rate.
Increases or decreases in profit booking rates are recognized in
the current period and reflect the inception-to-date effect of such
changes. Segment operating profit and margin may also be impacted
favorably or unfavorably by other items. Favorable items may
include the positive resolution of contractual matters, cost
recoveries on restructuring charges, insurance recoveries and gains
on sales of assets. Unfavorable items may include the adverse
resolution of contractual matters; restructuring charges, except
for significant severance actions which are excluded from segment
operating results; reserves for disputes; certain asset
impairments; and losses on sales of assets.
The following table presents summary operating results of the
Corporation's business segments and reconciles these amounts to the
Corporation's consolidated financial results.
|
(in
millions)
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
5,407
|
|
|
$
|
4,384
|
|
|
$
|
17,769
|
|
|
$
|
15,570
|
|
|
|
Missiles and Fire
Control
|
|
|
1,757
|
|
|
|
1,969
|
|
|
|
6,608
|
|
|
|
6,770
|
|
|
|
Rotary and Mission
Systems
|
|
|
3,809
|
|
|
|
2,785
|
|
|
|
13,462
|
|
|
|
9,091
|
|
|
|
Space
Systems
|
|
|
2,779
|
|
|
|
2,382
|
|
|
|
9,409
|
|
|
|
9,105
|
|
|
|
Total net
sales
|
|
$
|
13,752
|
|
|
$
|
11,520
|
|
|
$
|
47,248
|
|
|
$
|
40,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
552
|
|
|
$
|
448
|
|
|
$
|
1,887
|
|
|
$
|
1,681
|
|
|
|
Missiles and Fire
Control
|
|
|
255
|
|
|
|
387
|
|
|
|
1,018
|
|
|
|
1,282
|
|
|
|
Rotary and Mission
Systems
|
|
|
228
|
|
|
|
157
|
|
|
|
906
|
|
|
|
844
|
|
|
|
Space
Systems
|
|
|
255
|
|
|
|
288
|
|
|
|
1,289
|
|
|
|
1,171
|
|
|
|
Total business segment
operating profit
|
|
|
1,290
|
|
|
|
1,280
|
|
|
|
5,100
|
|
|
|
4,978
|
|
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS
pension adjustment
|
|
|
230
|
|
|
|
95
|
|
|
|
902
|
|
|
|
400
|
|
|
|
Special item -
severance charges
|
|
|
–
|
|
|
|
(67)
|
|
|
|
(80)
|
|
|
|
(82)
|
|
|
|
Stock-based
compensation
|
|
|
(25)
|
|
|
|
(20)
|
|
|
|
(149)
|
|
|
|
(133)
|
|
|
|
Other,
net
|
|
|
(67)
|
|
|
|
(188)
|
|
|
|
(224)
|
|
|
|
(451)
|
|
|
|
Total unallocated
items
|
|
|
138
|
|
|
|
(180)
|
|
|
|
449
|
|
|
|
(266)
|
|
|
|
Total consolidated
operating profit
|
|
$
|
1,428
|
|
|
$
|
1,100
|
|
|
$
|
5,549
|
|
|
$
|
4,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Corporation's consolidated net profit adjustments not
related to volume, including net profit booking rate adjustments
and reserves, represented approximately 26 percent and 28 percent
of total segment operating profit for the quarter and year ended
Dec. 31, 2016, compared to
approximately 28 percent and 34 percent for the quarter and year
ended Dec. 31, 2015.
Aeronautics
|
(in
millions)
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Net
sales
|
|
$
|
5,407
|
|
|
$
|
4,384
|
|
|
$
|
17,769
|
|
|
$
|
15,570
|
|
|
|
Operating
profit
|
|
$
|
552
|
|
|
$
|
448
|
|
|
$
|
1,887
|
|
|
$
|
1,681
|
|
|
|
Operating
margin
|
|
|
10.2
|
%
|
|
|
10.2
|
%
|
|
|
10.6
|
%
|
|
|
10.8
|
%
|
|
Aeronautics' net sales in the fourth quarter of 2016 increased
$1.0 billion, or 23 percent, compared
to the same period in 2015. The increase was attributable to higher
net sales of approximately $640
million for the F-35 program due to increased volume on
aircraft production and sustainment activities, partially offset by
lower volume on development activities; about $160 million for the F-16 program due to higher
volume on aircraft modernization programs and increased aircraft
deliveries (four aircraft delivered in the quarter ended
Dec. 31, 2016 compared to two in the
same period of 2015); about $100
million for the C-5 program due to increased aircraft
deliveries (three aircraft delivered in the quarter ended
Dec. 31, 2016 compared to two in the
same period of 2015) and increased sustainment activities; and
about $100 million for the C-130
program due to increased aircraft deliveries (eight aircraft
delivered in the quarter ended Dec. 31,
2016 compared to seven in the same period of 2015) and
increased sustainment activities.
Aeronautics' operating profit in the fourth quarter of 2016
increased $104 million, or 23
percent, compared to the same period in 2015. Operating profit
increased about $80 million for the
F-35 program due to increased volume on aircraft production and
sustainment activities and higher risk retirements; and about
$15 million for the C-5 program due
to higher risk retirements and increased aircraft deliveries.
Adjustments not related to volume, including net profit booking
rate adjustments, were about $50
million higher in the fourth quarter of 2016 compared to the
same period in 2015.
Aeronautics' net sales in 2016 increased $2.2 billion, or 14 percent, compared to 2015.
The increase was attributable to higher net sales of about
$1.7 billion for the F-35 program due
to increased volume on aircraft production and sustainment
activities, partially offset by lower volume on development
activities; and about $290 million
for C-130 program due to increased deliveries (24 aircraft
delivered in the year ended Dec. 31,
2016 compared to 21 in the same period of 2015) and
increased sustainment activities; and about $250 million for the F-16 program primarily due
to higher volume on aircraft modernization programs. The increases
were partially offset by lower net sales of about $55 million for the C-5 program due to decreased
sustainment activities.
Aeronautics' operating profit in 2016 increased $206 million, or 12 percent, compared to 2015.
Operating profit increased about $195
million for the F-35 program due to increased volume on
aircraft production and sustainment activities and higher risk
retirements; and about $60 million
for aircraft support and maintenance programs due to higher risk
retirements and increased volume. These increases were partially
offset by lower operating profit of about $65 million for the C-130 program due to contract
mix and lower risk retirements. Adjustments not related to volume,
including net profit booking rate adjustments, were about
$20 million higher in 2016 compared
to 2015.
Missiles and Fire Control
|
(in
millions)
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Net
sales
|
|
$
|
1,757
|
|
|
$
|
1,969
|
|
|
$
|
6,608
|
|
|
$
|
6,770
|
|
|
|
Operating
profit
|
|
$
|
255
|
|
|
$
|
387
|
|
|
$
|
1,018
|
|
|
$
|
1,282
|
|
|
|
Operating
margin
|
|
|
14.5
|
%
|
|
|
19.7
|
%
|
|
|
15.4
|
%
|
|
|
18.9
|
%
|
|
MFC's net sales in the fourth quarter of 2016 decreased
$212 million, or 11 percent, compared
to the same period in 2015. The decrease was attributable to lower
net sales of about $125 million for
air and missile defense programs due to lower deliveries and volume
(primarily Patriot Advanced Capability (PAC-3) and Terminal High
Altitude Area Defense (THAAD)); and about $65 million for fire control programs due to
lower deliveries (primarily LANTIRN® and SNIPER®).
MFC's operating profit in the fourth quarter of 2016 decreased
$132 million, or 34 percent, compared
to the same period in 2015. Operating profit decreased about
$110 million for air and missile
defense programs due to lower risk retirements (PAC-3 and THAAD)
and lower deliveries and volume. Adjustments not related to volume,
including net profit booking rate adjustments, were about
$80 million lower in the fourth
quarter of 2016 compared to the same period in 2015.
MFC's net sales in 2016 decreased $162
million, or 2 percent, compared to 2015. The decrease was
attributable to lower net sales of about $205 million for air and missile defense programs
due to decreased volume (primarily THAAD); and lower net sales of
about $95 million due to lower volume
on various programs. These decreases were partially offset by a
$75 million increase for tactical
missiles programs due to increased deliveries (primarily Hellfire);
and about $70 million for fire
control programs due to increased volume (Special Operations Forces
Contractor Logistics Support Services).
MFC's operating profit in 2016 decreased $264 million, or 21 percent, compared to 2015.
Operating profit decreased about $145
million for air and missile defense programs due to lower
risk retirements (PAC-3 and THAAD) and a reserve for a contractual
matter; about $45 million for
tactical missiles programs due to lower risk retirements (Javelin);
and about $45 million for fire
control programs due to lower risk retirements (Apache) and program
mix. Adjustments not related to volume, including net profit
booking rate adjustments and reserves, were about $225 million lower in 2016 compared to 2015.
Rotary and Mission Systems
|
(in
millions)
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Net
sales
|
|
$
|
3,809
|
|
|
$
|
2,785
|
|
|
$
|
13,462
|
|
|
$
|
9,091
|
|
|
|
Operating
profit
|
|
$
|
228
|
|
|
$
|
157
|
|
|
$
|
906
|
|
|
$
|
844
|
|
|
|
Operating
margin
|
|
|
6.0
|
%
|
|
|
5.6
|
%
|
|
|
6.7
|
%
|
|
|
9.3
|
%
|
|
RMS' net sales in the fourth quarter of 2016 increased
$1.0 billion, or 37 percent, compared
to the same period in 2015. The increase was primarily attributable
to higher net sales of about $1.2
billion from Sikorsky, which was acquired on Nov. 6, 2015. Net sales for 2015 include
Sikorsky's results subsequent to the acquisition date, net of
certain revenue adjustments required to account for the acquisition
of this business. This increase was partially offset by a decrease
in net sales of about $90 million for
training and logistics programs due to decreased volume on various
programs and the divestiture of our Lockheed Martin Commercial
Flight Training (LMCFT) business which reported sales through the
May 2, 2016 divestiture date.
RMS' operating profit in the fourth quarter of 2016 increased
$71 million, or 45 percent, compared
to the same period in 2015. Operating profit increased about
$50 million for our integrated
warfare systems and sensors programs due to investments made in
connection with a next generation radar technology program awarded
during the quarter ended Dec. 31,
2015; and $35 million for
undersea systems programs primarily due to higher reserves for
performance matters on an international program recorded during the
quarter ended Dec. 31, 2015.
Adjustments not related to volume, including net profit booking
rate adjustments and reserves, were about $80 million higher in the fourth quarter of 2016
compared to the same period in 2015.
RMS' net sales in 2016 increased $4.4
billion, or 48 percent, compared to 2015. The increase was
primarily attributable to higher net sales of about $4.6 billion from Sikorsky, which was acquired on
Nov. 6, 2015. Net sales for 2015
include Sikorsky's results subsequent to the acquisition date, net
of certain revenue adjustments required to account for the
acquisition of this business. This increase was partially offset by
lower net sales of about $70 million
for training and logistics programs due to the divestiture of our
LMCFT business on May 2, 2016; and
about $65 million for ship and
aviation systems programs due to decreased volume on various
programs.
RMS' operating profit in 2016 increased $62 million, or 7 percent, compared to 2015.
Operating profit increased about $85
million for training and logistics programs due primarily to
the divestiture of our LMCFT business which generated operating
losses through its May 2, 2016
divestiture date; about $60 million
for our integrated warfare systems and sensors programs due to
investments made in connection with a next generation radar
technology program awarded during the year ended Dec. 31, 2015; and about $55 million for undersea systems programs due
primarily to higher reserves for performance matters on an
international program in the year ended Dec.
31, 2015. These increases were partially offset by a
decrease of $70 million as a result
of a higher operating loss from Sikorsky, inclusive of the
unfavorable impacts of intangible asset amortization and other
adjustments required to account for the acquisition of this
business; about $30 million for ship
and aviation systems programs due primarily to performance on
various programs; and about $25
million for other matters. Adjustments not related to
volume, including net profit booking rate adjustments and reserves,
were about $155 million higher in
2016 compared to 2015.
Space Systems
|
(in
millions)
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Net
sales
|
|
$
|
2,779
|
|
|
$
|
2,382
|
|
|
$
|
9,409
|
|
|
$
|
9,105
|
|
|
|
Operating
profit
|
|
$
|
255
|
|
|
$
|
288
|
|
|
$
|
1,289
|
|
|
$
|
1,171
|
|
|
|
Operating
margin
|
|
|
9.2
|
%
|
|
|
12.1
|
%
|
|
|
13.7
|
%
|
|
|
12.9
|
%
|
|
Space Systems' net sales in the fourth quarter of 2016 increased
$397 million, or 17 percent, compared
to the same period in 2015. The increase was attributable to net
sales of about $310 million from AWE
following the consolidation of this business in the third quarter
of 2016; and about $150 million for
commercial space transportation programs due to increased
launch-related activities. These increases were partially offset by
lower net sales of about $80 million
for the government satellite programs due to decreased volume
(primarily Mobile User Objective Systems (MUOS) and Space Based
Infrared Systems (SBIRS)).
Space Systems' operating profit in the fourth quarter of 2016
decreased $33 million, or 11 percent,
compared to the same period in 2015. Operating profit decreased
about $75 million for government
satellite programs due to lower risk retirements (primarily MUOS
and SBIRS) and decreased volume, partially offset by about
$25 million of increased equity
earnings from joint ventures (primarily ULA). Adjustments not
related to volume, including net profit booking rate adjustments,
were about $75 million lower in the
fourth quarter of 2016 compared to the same period in 2015.
Space Systems' net sales in 2016 increased $304 million, or 3 percent, compared to 2015. The
increase was attributable to net sales of about $410 million from AWE following the consolidation
of this business in the third quarter of 2016; and about
$150 million for commercial space
transportation programs due to increased launch-related activities;
and about $70 million of higher net
sales for various programs (primarily Fleet Ballistic Missiles) due
to increased volume. These increases were partially offset by a
decrease in net sales of about $340
million for government satellite programs due to decreased
volume (primarily SBIRS and MUOS) and the wind-down or completion
of mission solutions programs.
Space Systems' operating profit in 2016 increased $118 million, or 10 percent, compared to 2015.
The increase was primarily attributable to a non-cash, pre-tax gain
of about $127 million related to the
consolidation of AWE; and about $80
million of increased equity earnings from joint ventures
(primarily ULA). These increases were partially offset by a
decrease of about $105 million for
government satellite programs due to lower risk retirements
(primarily SBIRS, MUOS and mission solutions programs) and
decreased volume. Adjustments not related to volume, including net
profit booking rate adjustments, were about $185 million lower in 2016 compared to 2015.
Total equity earnings recognized by Space Systems (primarily
ULA) represented about $85 million,
or 33 percent, and about $325
million, or 25 percent, of this business segment's operating
profit during the quarter and year ended Dec. 31, 2016, compared to about $60 million, or 21 percent, and about
$245 million, or 21 percent, during
the quarter and year ended Dec. 31,
2015.
Unallocated items
|
(in
millions)
|
|
Quarters Ended
Dec. 31,
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS pension
adjustment
|
|
$
|
230
|
|
|
$
|
95
|
|
|
$
|
902
|
|
|
$
|
400
|
|
|
|
Special item -
severance charges
|
|
|
–
|
|
|
|
(67)
|
|
|
|
(80)
|
|
|
|
(82)
|
|
|
|
Stock-based
compensation
|
|
|
(25)
|
|
|
|
(20)
|
|
|
|
(149)
|
|
|
|
(133)
|
|
|
|
Other,
net
|
|
|
(67)
|
|
|
|
(188)
|
|
|
|
(224)
|
|
|
|
(451)
|
|
|
|
Total unallocated
items
|
|
$
|
138
|
|
|
$
|
(180)
|
|
|
$
|
449
|
|
|
$
|
(266)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consistent with the manner in which the Corporation's business
segment operating performance is evaluated by senior management,
certain items are excluded from the business segment results and
are included in "Unallocated items." See the Corporation's 2015
Annual Report on Form 10-K for a description of "Unallocated
items."
The operating results of the IS&GS business, which was
divested on Aug. 16, 2016, have been
reclassified as discontinued operations for all periods presented.
Certain corporate overhead costs and certain defined benefit
pension costs that were historically allocated to and included in
the operating results of the IS&GS business have been
reclassified into "Unallocated items" and included in the results
of the Corporation's continuing operations because the Corporation
will continue to incur these costs subsequent to the divestiture of
the IS&GS business.
Corporate overhead costs incurred by the Corporation and
previously allocated to and included in the operating results of
the IS&GS business were comprised of expenses related to senior
management, legal, human resources, finance, accounting, treasury,
tax, information technology, communications, ethics and compliance,
corporate employee benefits, incentives and stock-based
compensation, shared services processing and administration and
depreciation for corporate fixed assets. The amount of corporate
overhead costs previously included in the operating results of the
IS&GS business that have been reclassified to and included in
the results of the Corporation's continuing operations were
$82 million in the year ended
Dec. 31, 2016 and $32 million and $165
million in the quarter and year ended Dec. 31, 2015. These costs are included in
"Other, net" within "Unallocated items."
Prior to the divestiture of the IS&GS business, certain
IS&GS salaried employees participated in various defined
benefit pension and other post-employment benefit plans
administered and sponsored by the Corporation. Pension costs
related to benefits earned by these employees were historically
allocated to and included in the results of operations of the
IS&GS business. Subsequent to the divestiture, IS&GS
salaried employees that transferred to Leidos will no longer earn
additional benefits under the Corporation's defined benefit pension
and other post-employment benefit plans, but remain entitled to the
benefits earned through the closing of the divestiture. The
Corporation retained all obligations related to the benefits earned
by the IS&GS salaried employees through the closing of the
divestiture and the related assets of the plans. Therefore, the
Corporation will continue to incur the non-service portion of
pension costs (interest cost, actuarial gains and losses and
expected return on plan assets) for IS&GS salaried employees
that transferred to Leidos. Accordingly, these costs have been
reclassified to and included in the results of the Corporation's
continuing operations. The non-service portion of pension costs
previously included in the operating results of the IS&GS
business that have been reclassified to and included in the results
of the Corporation's continuing operations were $54 million in the year ended Dec. 31, 2016 and $18
million and $71 million in the
quarter and year ended Dec. 31, 2015.
These costs are included in the "FAS/CAS pension adjustment" within
"Unallocated items." The service portion of pension costs related
to IS&GS salaried employees that transferred to Leidos remains
in the operating results of the IS&GS business classified as
discontinued operations because such costs will no longer be
incurred by the Corporation subsequent to the divestiture of
IS&GS.
The Corporation allocates certain corporate overhead costs and
defined benefit pension costs to its business segments because
under U.S. Government contracting regulations such costs are
allowable in establishing prices for contracts with the U.S.
Government. Although the corporate overhead costs and defined
benefit pension costs that were historically allocated to and
included in the operating results of the IS&GS business have
been reclassified to and included in the results of the
Corporation's continuing operations for financial reporting
purposes, the Corporation will allocate similar costs incurred in
future periods to its remaining business segments and expects to
recover a substantial amount of these costs through the pricing of
its products and services to the U.S. Government and other
customers in future periods.
Significant severance charges related to the IS&GS business
were historically recorded at the Lockheed Martin corporate office.
These charges have been reclassified into the operating results of
the IS&GS business classified as discontinued operations and
excluded from the results of the Corporation's continuing
operations. The amount of severance charges reclassified were
$19 million and $20 million in the years ended Dec. 31, 2016 and 2015, respectively.
Income Taxes
The Corporation's effective income tax rate from continuing
operations was 23.6 percent and 23.2 percent in the quarter and
year ended Dec. 31, 2016, compared to
16.8 percent and 27.3 percent in the quarter and year ended
Dec. 31, 2015. The rates for both
periods benefited from tax deductions for U.S. manufacturing
activities and for dividends paid to the Corporation's defined
contribution plans with an employee stock ownership plan feature.
The rate in the year ended Dec. 31,
2016 benefited from the nontaxable gain recorded in
connection with the increase in AWE ownership. The rate in the
quarter and year ended Dec. 31, 2016
also benefited from the R&D tax credit. As a result of
legislation enacted in the fourth quarter of 2015, the R&D tax
credit was permanently extended and reinstated, retroactive to the
beginning of 2015. Accordingly, the effective income tax rates for
both the quarter and year ended Dec. 31,
2015 reflect the credit for all of 2015, which reduced the
Corporation's effective tax rates by 7.1 percentage points for the
fourth quarter and 1.6 percentage points for the full year in
2015.
In addition, the rate in the quarter and year ended Dec. 31, 2016 benefited from the additional tax
benefits related to equity awards, which are now recorded as income
tax benefit or expense in earnings effective with the adoption of
an accounting standard update in the second quarter of 2016. As a
result, the Corporation recognized additional income tax benefits
of $15 million and $152 million during the quarter and year ended
Dec. 31, 2016.
As a result of a decision in the fourth quarter of 2015 to
divest LMCFT in 2016, the Corporation recorded an asset impairment
charge of about $90
million. This charge was partially offset by a net
deferred tax benefit of about $80
million. The net impact of the resulting tax benefit reduced
the effective income tax rates by 5.2 percentage points for the
fourth quarter and 1.2 percentage points for the full year in
2015.
Conference Call Information
Lockheed Martin will webcast live the earnings conference call
(listen-only mode) on Tuesday, Jan. 24,
2017, at 11:00 a.m. ET. The
live webcast and relevant financial charts will be available for
download on the Lockheed Martin Investor Relations website at
www.lockheedmartin.com/investor.
For additional information, visit our website:
www.lockheedmartin.com.
About Lockheed Martin
Headquartered in Bethesda,
Maryland, Lockheed Martin is a global security and aerospace
company that employs approximately 97,000 people worldwide and is
principally engaged in the research, design, development,
manufacture, integration and sustainment of advanced technology
systems, products and services.
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 Lockheed Martin's current expectations and
assumptions. The words "believe," "estimate," "anticipate,"
"project," "intend," "expect," "plan," "outlook," "scheduled,"
"forecast" and similar expressions are intended to identify
forward-looking statements. These statements are not guarantees of
future performance and are subject to risks and uncertainties.
Actual results may differ materially due to factors such as:
- the Corporation's reliance on contracts with the U.S.
Government, all of which are conditioned upon the availability of
funding and can be terminated by the U.S. Government for
convenience, and the impact of potential unilateral contract
actions on our ability to negotiate favorable contract terms;
- declining budgets; affordability initiatives; the
implementation of automatic sequestration under the Budget Control
Act of 2011 or Congressional actions intended to replace
sequestration;
- risks related to the development, production, performance,
schedule, cost and requirements of complex and technologically
advanced programs including the Corporation's largest, the F-35
program;
- economic, industry, business and political conditions (domestic
and international) including their effects on governmental
policy;
- the Corporation's success in growing international sales and
expanding into adjacent markets and risks associated with doing
business in new markets and internationally;
- the competitive environment for the Corporation's products and
services, including increased pricing pressures in the
Corporation's remaining services businesses, competition from
outside the aerospace and defense industry, and increased bid
protests;
- planned production rates for significant programs; compliance
with stringent performance; reliability standards; materials
availability;
- the performance and financial viability of key suppliers,
teammates, ventures, venture partners, subcontractors and
customers;
- the timing and customer acceptance of product deliveries;
- the Corporation's ability to continue to innovate and develop
new products and to attract and retain key personnel and transfer
knowledge to new personnel; the impact of work stoppages or other
labor disruptions;
- the impact of cyber or other security threats or other
disruptions to the Corporation's businesses;
- the Corporation's ability to implement and continue
capitalization changes such as share repurchase activity and
payment of dividends, pension funding as well as the pace and
effect of any such capitalization changes;
- the Corporation's ability to recover certain costs under U.S.
Government contracts and changes in contract mix;
- the accuracy of the Corporation's estimates and projections and
the potential impact of changes in U.S. or foreign tax laws;
- movements in interest rates and other changes that may affect
pension plan assumptions, equity, the level of FAS/CAS earnings and
actual returns on pension plan assets;
- realizing the anticipated benefits of acquisitions or
divestitures, ventures, teaming arrangements or internal
reorganizations, and the Corporation's efforts to increase the
efficiency of its operations and improve the affordability of its
products and services;
- the ability to realize synergies and other expected benefits of
the Sikorsky acquisition, including remediation of the material
weakness in internal control over financial reporting related to
the identification, design and operating effectiveness of internal
controls over financial reporting at Sikorsky;
- risk of a future impairment of goodwill, investments or other
long-term assets, including the potential impairment of goodwill,
intangible assets and inventory, recorded as a result of the
Sikorsky acquisition, if Sikorsky does not perform as expected, or
if demand for Sikorsky's products is adversely impacted by global
economic conditions including oil and gas trends;
- risks related to the achievement of the intended benefits and
tax treatment of the divestiture of our former IS&GS
business;
- the adequacy of the Corporation's insurance and
indemnities;
- the effect of changes in (or the interpretation of):
legislation, regulation or policy, including those applicable to
procurement (including competition from fewer and larger prime
contractors), cost allowability or recovery, accounting, taxation,
or export; and
- the outcome of legal proceedings, bid protests, environmental
remediation efforts, government investigations or government
allegations that we have failed to comply with law, other
contingencies and U.S. Government identification of deficiencies in
the Corporation's 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 vary materially from those anticipated in
the forward-looking statements, see the Corporation's filings with
SEC including, but not limited to, "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and
"Risk Factors" in the Corporation's Annual Report on Form 10-K for
the year ended Dec. 31, 2015 and 2016
quarterly reports on Form 10-Q. The Corporation's filings may be
accessed through the Investor Relations page of its website,
www.lockheedmartin.com/investor, or through the website maintained
by the SEC at www.sec.gov.
The Corporation'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 Corporation 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.
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Earnings1
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended
Dec. 31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
13,752
|
|
$
11,520
|
|
$
47,248
|
|
$
40,536
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(12,399)
|
|
(10,383)
|
|
(42,186)
|
|
(36,044)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,353
|
|
1,137
|
|
5,062
|
|
4,492
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
75
|
|
(37)
|
|
487
|
|
220
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit²
|
|
1,428
|
|
1,100
|
|
5,549
|
|
4,712
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(171)
|
|
(142)
|
|
(663)
|
|
(443)
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating
(expense) income, net
|
|
(2)
|
|
24
|
|
-
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
1,255
|
|
982
|
|
4,886
|
|
4,299
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense³
|
|
(296)
|
|
(165)
|
|
(1,133)
|
|
(1,173)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations³
|
|
959
|
|
817
|
|
3,753
|
|
3,126
|
|
Net earnings from
discontinued operations
|
|
29
|
|
116
|
|
1,549
|
|
479
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings³
|
|
$
988
|
|
$
933
|
|
$
5,302
|
|
$
3,605
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
23.6
|
%
|
16.8
|
%
|
23.2
|
%
|
27.3
|
%
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
Continuing operations³
|
|
$
3.29
|
|
$
2.67
|
|
$
12.54
|
|
$
10.07
|
|
Discontinued operations
|
|
0.10
|
|
0.38
|
|
5.17
|
|
1.55
|
|
Basic
earnings per common share
|
|
$
3.39
|
|
$
3.05
|
|
$
17.71
|
|
$
11.62
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
3.25
|
|
$
2.63
|
|
$
12.38
|
|
$
9.93
|
|
Discontinued operations
|
|
0.10
|
|
0.38
|
|
5.11
|
|
1.53
|
|
Diluted
earnings per common share
|
|
$
3.35
|
|
$
3.01
|
|
$
17.49
|
|
$
11.46
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
291.8
|
|
305.9
|
|
299.3
|
|
310.3
|
|
Diluted
|
|
295.2
|
|
310.2
|
|
303.1
|
|
314.7
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
reported in stockholders' equity at end of period
|
|
|
|
|
|
289
|
|
303
|
|
|
|
|
|
|
|
|
|
|
|
¹ As
a result of the divestiture of the IS&GS business segment on
Aug. 16, 2016, the operating results of the IS&GS business
segment have been classified as
|
|
discontinued operations in the year ended Dec. 31, 2016 and in the
quarter and year ended Dec. 31, 2015. A $1.2 billion gain was
recorded as a result of the
|
|
divestiture of the IS&GS business segment and is recorded in
earnings from discontinued operations in the year ended Dec. 31,
2016.
|
|
|
|
|
|
|
|
|
|
|
|
² The
amounts in the year ended Dec. 31, 2016 include a non-cash gain of
$127 million recognized at the Corporation's Space Systems
business
|
|
segment
related to the consolidation of the AWE venture upon obtaining
control of this venture on Aug. 24, 2016, which increased net
earnings from continuing
|
|
operations $104 million (or $0.34 per share).
|
|
|
|
|
|
|
|
|
|
|
|
³ In
2016, the Corporation adopted a new accounting standard issued by
the Financial Accounting Standards Board that changed certain
aspects of the accounting
|
|
for
equity awards granted to employees. As a result, the Corporation
recognized additional income tax benefits as an increase to net
earnings from continuing
|
|
operations and operating cash flows of $15 million ($0.05 per
share) and $152 million ($0.50 per share) in the quarter and year
ended Dec. 31, 2016.
|
|
The new
accounting standard did not impact any periods prior to Jan. 1,
2016.
|
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Summary Operating Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
|
|
|
|
Years
Ended
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
%
Change
|
|
2016
|
|
2015
|
|
|
%
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
5,407
|
|
$
4,384
|
|
|
23
|
%
|
|
$
17,769
|
|
$
15,570
|
|
|
14
|
%
|
Missiles and
Fire Control
|
|
1,757
|
|
1,969
|
|
|
(11)
|
%
|
|
6,608
|
|
6,770
|
|
|
(2)
|
%
|
Rotary and
Mission Systems
|
|
3,809
|
|
2,785
|
|
|
37
|
%
|
|
13,462
|
|
9,091
|
|
|
48
|
%
|
Space
Systems
|
|
2,779
|
|
2,382
|
|
|
17
|
%
|
|
9,409
|
|
9,105
|
|
|
3
|
%
|
Total net
sales
|
|
$
13,752
|
|
$
11,520
|
|
|
19
|
%
|
|
$
47,248
|
|
$
40,536
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
552
|
|
$
448
|
|
|
23
|
%
|
|
$
1,887
|
|
$
1,681
|
|
|
12
|
%
|
Missiles and
Fire Control
|
|
255
|
|
387
|
|
|
(34)
|
%
|
|
1,018
|
|
1,282
|
|
|
(21)
|
%
|
Rotary and
Mission Systems
|
|
228
|
|
157
|
|
|
45
|
%
|
|
906
|
|
844
|
|
|
7
|
%
|
Space
Systems1
|
|
255
|
|
288
|
|
|
(11)
|
%
|
|
1,289
|
|
1,171
|
|
|
10
|
%
|
Total business segment
operating profit
|
1,290
|
|
1,280
|
|
|
1
|
%
|
|
5,100
|
|
4,978
|
|
|
2
|
%
|
Unallocated
items2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS pension
expense
|
|
(261)
|
|
(286)
|
|
|
|
|
|
(1,019)
|
|
(1,127)
|
|
|
|
|
Less: CAS pension
cost
|
|
491
|
|
381
|
|
|
|
|
|
1,921
|
|
1,527
|
|
|
|
|
FAS/CAS
pension adjustment
|
|
230
|
|
95
|
|
|
|
|
|
902
|
|
400
|
|
|
|
|
Special item -
severance charges
|
|
-
|
|
(67)
|
|
|
|
|
|
(80)
|
|
(82)
|
|
|
|
|
Stock-based
compensation
|
|
(25)
|
|
(20)
|
|
|
|
|
|
(149)
|
|
(133)
|
|
|
|
|
Other,
net
|
|
(67)
|
|
(188)
|
|
|
|
|
|
(224)
|
|
(451)
|
|
|
|
|
Total unallocated
items
|
|
138
|
|
(180)
|
|
|
|
|
|
449
|
|
(266)
|
|
|
|
|
Total consolidated
operating profit
|
|
$
1,428
|
|
$
1,100
|
|
|
30
|
%
|
|
$
5,549
|
|
$
4,712
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
10.2
|
%
|
10.2
|
%
|
|
|
|
|
10.6
|
%
|
10.8
|
%
|
|
|
|
Missiles and
Fire Control
|
|
14.5
|
%
|
19.7
|
%
|
|
|
|
|
15.4
|
%
|
18.9
|
%
|
|
|
|
Rotary and
Mission Systems
|
|
6.0
|
%
|
5.6
|
%
|
|
|
|
|
6.7
|
%
|
9.3
|
%
|
|
|
|
Space
Systems
|
|
9.2
|
%
|
12.1
|
%
|
|
|
|
|
13.7
|
%
|
12.9
|
%
|
|
|
|
Total business segment
operating margin
|
9.4
|
%
|
11.1
|
%
|
|
|
|
|
10.8
|
%
|
12.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
operating margin
|
|
10.4
|
%
|
9.5
|
%
|
|
|
|
|
11.7
|
%
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
The amounts for the year ended Dec. 31, 2016 include a non-cash
gain of $127 million related to the consolidation of AWE
upon
|
|
|
|
|
obtaining control of this venture on Aug. 24, 2016, which increased
net earnings from continuing operations $104 million (or $0.34 per
share).
|
|
|
|
|
|
|
|
|
|
2
The following reclassifications of "Unallocated items" were made as
a result of the divestiture of the IS&GS business
segment:
|
|
|
|
|
i) the
non-service portion of pension costs for IS&GS employees that
participated in the Corporation's defined benefit pension and
other
|
|
|
|
|
post-employment benefit plans were reclassified from the operating
results of the IS&GS business segment to "FAS/CAS
pension
|
|
|
|
|
adjustment" and were $54 million in the year ended Dec. 31, 2016
and $18 million and $71 million in the quarter and year ended Dec.
31, 2015,
|
|
|
|
|
ii)
Corporate overhead costs allocated to and included in the operating
results of the IS&GS business segment were reclassified to
"Other, net" and
|
|
|
|
|
were $82
million in the year ended Dec. 31, 2016 and $32 million and $165
million in the quarter and year ended Dec. 31, 2015, and
iii)
|
|
|
|
|
charges
related to the IS&GS business segment that were historically
recorded in "Special item - severance charges" were reclassified to
net earnings
|
|
|
|
from
discontinued operations and were $19 million in the year ended Dec.
31, 2016 and $20 million in the year ended Dec. 31, 2015. For
more
|
|
|
|
|
information see the "Unallocated items" section of the accompanying
news release.
|
|
|
|
|
Lockheed Martin
Corporation
|
|
|
|
|
Consolidated
Balance Sheets
|
|
|
|
|
(unaudited; in
millions, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015¹
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,837
|
|
$
1,090
|
Receivables,
net
|
|
8,202
|
|
7,254
|
Inventories,
net
|
|
4,670
|
|
4,819
|
Other current
assets
|
|
399
|
|
441
|
Assets of
discontinued operations2
|
|
-
|
|
969
|
Total current assets
|
|
15,108
|
|
14,573
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
5,549
|
|
5,389
|
Goodwill
|
|
10,764
|
|
10,695
|
Intangible assets,
net
|
|
4,093
|
|
4,022
|
Deferred income
taxes
|
|
6,625
|
|
6,068
|
Other noncurrent
assets
|
|
5,667
|
|
5,396
|
Assets of
discontinued operations2
|
|
-
|
|
3,161
|
Total
assets
|
|
$
47,806
|
|
$
49,304
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
1,653
|
|
$
1,745
|
Customer
advances and amounts in excess of costs incurred
|
6,776
|
|
6,703
|
Salaries,
benefits and payroll taxes
|
|
1,764
|
|
1,707
|
Current
maturities of long-term debt
|
|
-
|
|
956
|
Other current
liabilities
|
|
2,349
|
|
1,859
|
Liabilities of
discontinued operations2
|
|
-
|
|
948
|
Total current
liabilities
|
|
12,542
|
|
13,918
|
|
|
|
|
|
Long-term debt,
net
|
|
14,282
|
|
14,305
|
Accrued pension
liabilities
|
|
13,855
|
|
11,807
|
Other postretirement
benefit liabilities
|
|
862
|
|
1,070
|
Other noncurrent
liabilities
|
|
4,659
|
|
4,902
|
Liabilities of
discontinued operations2
|
|
-
|
|
205
|
Total
liabilities
|
|
46,200
|
|
46,207
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock,
$1 par value per share
|
|
289
|
|
303
|
Additional
paid-in capital
|
|
-
|
|
-
|
Retained
earnings
|
|
13,324
|
|
14,238
|
Accumulated
other comprehensive loss
|
|
(12,102)
|
|
(11,444)
|
Total stockholders'
equity
|
|
1,511
|
|
3,097
|
Noncontrolling
interests in subsidiary
|
|
95
|
|
-
|
Total
equity
|
|
1,606
|
|
3,097
|
Total liabilities and
equity
|
|
$
47,806
|
|
$
49,304
|
|
|
|
|
|
|
|
|
|
|
1
Certain prior period amounts have been reclassified to conform with
current period presentation.
|
|
|
|
|
|
2
The assets and liabilities of the IS&GS business segment have
been classified as assets and
|
liabilities of discontinued operations as of Dec. 31,
2015.
|
Lockheed Martin
Corporation
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
Operating
activities
|
|
|
|
Net
earnings
|
$
5,302
|
|
$
3,605
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
Depreciation
and amortization
|
1,215
|
|
1,026
|
Stock-based
compensation
|
149
|
|
138
|
Severance
charges
|
99
|
|
102
|
Deferred
income taxes
|
(152)
|
|
(445)
|
Gain on
divestiture of IS&GS business
|
(1,242)
|
|
-
|
Gain on step
acquisition of AWE
|
(104)
|
|
-
|
Changes in
assets and liabilities
|
|
|
|
Receivables,
net
|
(811)
|
|
(256)
|
Inventories,
net
|
(46)
|
|
(398)
|
Accounts
payable
|
(188)
|
|
(160)
|
Customer advances and
amounts in excess of costs incurred
|
3
|
|
(32)
|
Postretirement benefit
plans
|
1,028
|
|
1,068
|
Income
taxes
|
146
|
|
(48)
|
Other,
net
|
(210)
|
|
501
|
Net cash provided
by operating activities1
|
5,189
|
|
5,101
|
|
|
|
|
Investing
activities
|
|
|
|
Capital
expenditures
|
(1,063)
|
|
(939)
|
Acquisitions of
businesses and investments in affiliates2
|
-
|
|
(9,003)
|
Other, net
|
78
|
|
208
|
Net cash used for
investing activities
|
(985)
|
|
(9,734)
|
|
|
|
|
Financing
activities
|
|
|
|
Special cash payment
from divestiture of IS&GS business
|
1,800
|
|
-
|
Proceeds from the
issuance of long-term debt
|
-
|
|
9,101
|
Repayments of
long-term debt
|
(952)
|
|
-
|
Proceeds from
borrowings under revolving credit facilities
|
-
|
|
6,000
|
Repayments of
borrowings under revolving credit facilities
|
-
|
|
(6,000)
|
Repurchases of common
stock
|
(2,096)
|
|
(3,071)
|
Dividends
paid
|
(2,048)
|
|
(1,932)
|
Proceeds from stock
option exercises
|
106
|
|
174
|
Other, net
|
(267)
|
|
5
|
Net cash (used for)
provided by financing activities
|
(3,457)
|
|
4,277
|
|
|
|
|
Net change in cash
and cash equivalents
|
747
|
|
(356)
|
Cash and cash
equivalents at beginning of period
|
1,090
|
|
1,446
|
Cash and cash
equivalents at end of period
|
$
1,837
|
|
$
1,090
|
|
|
|
|
1
Cash from operations includes cash flows generated by the IS&GS
business segment through the closing of the divestiture
of
|
this
business segment on Aug. 16, 2016, as the Corporation retained this
cash as part of the divestiture.
|
|
|
|
|
2
Includes the $9.0 billion purchase price of Sikorsky, net of cash
acquired.
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Total
|
|
Non
|
|
|
|
Common
|
|
Paid-In
|
|
Retained
|
|
Comprehensive
|
|
Stockholders'
|
|
controlling
|
|
Total
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Loss
|
|
Equity
|
|
Interest
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Dec.
31, 2015
|
$
303
|
|
$
-
|
|
$
14,238
|
|
$
(11,444)
|
|
$
3,097
|
|
$
-
|
|
$
3,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
-
|
|
-
|
|
5,302
|
|
-
|
|
5,302
|
|
-
|
|
5,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax1
|
-
|
|
-
|
|
-
|
|
(658)
|
|
(658)
|
|
-
|
|
(658)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares exchanged and
retired in connection with divestiture of IS&GS
business
|
(9)
|
|
-
|
|
(2,488)
|
|
-
|
|
(2,497)
|
|
-
|
|
(2,497)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
(9)
|
|
(395)
|
|
(1,692)
|
|
-
|
|
(2,096)
|
|
-
|
|
(2,096)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared2
|
-
|
|
-
|
|
(2,036)
|
|
-
|
|
(2,036)
|
|
-
|
|
(2,036)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based awards,
ESOP activity and other
|
4
|
|
395
|
|
-
|
|
-
|
|
399
|
|
-
|
|
399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in
noncontrolling interests in subsidiary
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
95
|
|
95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Dec.
31, 2016
|
$
289
|
|
$
-
|
|
$
13,324
|
|
$
(12,102)
|
|
$
1,511
|
|
$
95
|
|
$
1,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
Primarily represents the reclassification adjustment for the
recognition of prior period amounts related to postretirement
benefit plans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
Represents dividends of $1.65 per share declared in each of the
first, second and third quarters of 2016. Additionally,
includes dividends of $1.82 per share
|
declared
in the third quarter of 2016 and paid in the fourth quarter of
2016.
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
(unaudited; in
millions, except aircraft deliveries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
|
|
|
|
Aeronautics
|
|
$
34,200
|
|
$
31,800
|
|
|
|
|
Missiles and Fire
Control
|
|
14,700
|
|
15,500
|
|
|
|
|
Rotary and Mission
Systems
|
28,400
|
|
30,100
|
|
|
|
|
Space
Systems
|
|
18,900
|
|
17,400
|
|
|
|
|
Total
backlog
|
|
$
96,200
|
|
$
94,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Years
Ended
|
Aircraft
Deliveries
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
|
Dec. 31,
2016
|
|
Dec. 31,
2015
|
F-16
|
|
4
|
|
2
|
|
12
|
|
11
|
F-35
|
|
16
|
|
14
|
|
46
|
|
45
|
C-130J
|
|
8
|
|
7
|
|
24
|
|
21
|
C-5
|
|
3
|
|
2
|
|
9
|
|
9
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Press Release
Attachments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Earnings Adjusted for Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
March 29, 2015
|
|
Quarter Ended June
28, 2015
|
|
Quarter Ended
Sept. 27, 2015
|
|
Quarter Ended Dec.
31, 2015
|
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
3,134
|
|
$
-
|
|
$
3,134
|
|
$
4,131
|
|
$
-
|
|
$
4,131
|
|
$
3,921
|
|
$
-
|
|
$
3,921
|
|
$
4,384
|
|
$
-
|
|
$
4,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
1,390
|
|
(1,390)
|
|
-
|
|
1,408
|
|
(1,408)
|
|
-
|
|
1,401
|
|
(1,401)
|
|
-
|
|
1,397
|
|
(1,397)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
1,383
|
|
-
|
|
1,383
|
|
1,649
|
|
-
|
|
1,649
|
|
1,769
|
|
-
|
|
1,769
|
|
1,969
|
|
-
|
|
1,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
1,979
|
|
-
|
|
1,979
|
|
2,165
|
|
-
|
|
2,165
|
|
2,162
|
|
-
|
|
2,162
|
|
2,785
|
|
-
|
|
2,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
2,225
|
|
-
|
|
2,225
|
|
2,290
|
|
-
|
|
2,290
|
|
2,208
|
|
-
|
|
2,208
|
|
2,382
|
|
-
|
|
2,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
10,111
|
|
(1,390)
|
|
8,721
|
|
$
11,643
|
|
$
(1,408)
|
|
$
10,235
|
|
$
11,461
|
|
$
(1,401)
|
|
$
10,060
|
|
$
12,917
|
|
$
(1,397)
|
|
$
11,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
371
|
|
-
|
|
371
|
|
444
|
|
-
|
|
444
|
|
418
|
|
-
|
|
418
|
|
448
|
|
-
|
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
145
|
|
(145)
|
|
-
|
|
107
|
|
(107)
|
|
-
|
|
125
|
|
(125)
|
|
-
|
|
131
|
|
(131)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
286
|
|
-
|
|
286
|
|
293
|
|
-
|
|
293
|
|
316
|
|
-
|
|
316
|
|
387
|
|
-
|
|
387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
180
|
|
-
|
|
180
|
|
262
|
|
-
|
|
262
|
|
245
|
|
-
|
|
245
|
|
157
|
|
-
|
|
157
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
324
|
|
-
|
|
324
|
|
294
|
|
-
|
|
294
|
|
265
|
|
-
|
|
265
|
|
288
|
|
-
|
|
288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Operating Profit
|
1,306
|
|
(145)
|
|
1,161
|
|
1,400
|
|
(107)
|
|
1,293
|
|
1,369
|
|
(125)
|
|
1,244
|
|
1,411
|
|
(131)
|
|
1,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Unallocated
Items
|
|
50
|
|
(64)
|
|
(14)
|
|
45
|
|
(65)
|
|
(20)
|
|
(15)
|
|
(37)
|
|
(52)
|
|
(130)
|
|
(50)
|
|
(180)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Operating Profit
|
1,356
|
|
(209)
|
|
1,147
|
|
1,445
|
|
(172)
|
|
1,273
|
|
1,354
|
|
(162)
|
|
1,192
|
|
1,281
|
|
(181)
|
|
1,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(93)
|
|
-
|
|
(93)
|
|
(104)
|
|
-
|
|
(104)
|
|
(104)
|
|
-
|
|
(104)
|
|
(142)
|
|
-
|
|
(142)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating
income, net
|
|
3
|
|
-
|
|
3
|
|
2
|
|
-
|
|
2
|
|
1
|
|
-
|
|
1
|
|
24
|
|
-
|
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
1,266
|
|
(209)
|
|
1,057
|
|
1,343
|
|
(172)
|
|
1,171
|
|
1,251
|
|
(162)
|
|
1,089
|
|
1,163
|
|
(181)
|
|
982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(388)
|
|
69
|
|
(319)
|
|
(414)
|
|
58
|
|
(356)
|
|
(386)
|
|
53
|
|
(333)
|
|
(230)
|
|
65
|
|
(165)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
878
|
|
(140)
|
|
738
|
|
929
|
|
(114)
|
|
815
|
|
865
|
|
(109)
|
|
756
|
|
933
|
|
(116)
|
|
817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
discontinued operations
|
-
|
|
140
|
|
140
|
|
-
|
|
114
|
|
114
|
|
-
|
|
109
|
|
109
|
|
-
|
|
116
|
|
116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
878
|
|
$
-
|
|
$
878
|
|
$
929
|
|
$
-
|
|
$
929
|
|
$
865
|
|
$
-
|
|
$
865
|
|
$
933
|
|
$
-
|
|
$
933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
30.6%
|
|
|
|
30.2%
|
|
30.8%
|
|
|
|
30.4%
|
|
30.9%
|
|
|
|
30.6%
|
|
19.8%
|
|
|
|
16.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.78
|
|
$
(0.44)
|
|
$
2.34
|
|
$
2.98
|
|
$
(0.37)
|
|
$
2.61
|
|
$
2.80
|
|
$
(0.35)
|
|
$
2.45
|
|
$
3.05
|
|
$
(0.38)
|
|
$
2.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
-
|
|
0.44
|
|
0.44
|
|
-
|
|
0.37
|
|
0.37
|
|
-
|
|
0.35
|
|
0.35
|
|
-
|
|
0.38
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
2.78
|
|
$
-
|
|
$
2.78
|
|
$
2.98
|
|
$
-
|
|
$
2.98
|
|
$
2.80
|
|
$
-
|
|
$
2.80
|
|
$
3.05
|
|
$
-
|
|
$
3.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.74
|
|
$
(0.44)
|
|
$
2.30
|
|
$
2.94
|
|
$
(0.36)
|
|
$
2.58
|
|
$
2.77
|
|
$
(0.35)
|
|
$
2.42
|
|
$
3.01
|
|
$
(0.38)
|
|
$
2.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
-
|
|
0.44
|
|
0.44
|
|
-
|
|
0.36
|
|
0.36
|
|
-
|
|
0.35
|
|
0.35
|
|
-
|
|
0.38
|
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
2.74
|
|
$
-
|
|
$
2.74
|
|
$
2.94
|
|
$
-
|
|
$
2.94
|
|
$
2.77
|
|
$
-
|
|
$
2.77
|
|
$
3.01
|
|
$
-
|
|
$
3.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 29, 2015
|
|
Six Months Ended
June 28, 2015
|
|
Nine Months Ended
Sept. 27, 2015
|
|
Twelve Months
Ended Dec. 31, 2015
|
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
3,134
|
|
$
-
|
|
$
3,134
|
|
$
7,265
|
|
$
-
|
|
$
7,265
|
|
$
11,186
|
|
$
-
|
|
$
11,186
|
|
$
15,570
|
|
$
-
|
|
$
15,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
1,390
|
|
(1,390)
|
|
-
|
|
2,798
|
|
(2,798)
|
|
-
|
|
4,199
|
|
(4,199)
|
|
-
|
|
5,596
|
|
(5,596)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
1,383
|
|
-
|
|
1,383
|
|
3,032
|
|
-
|
|
3,032
|
|
4,801
|
|
-
|
|
4,801
|
|
6,770
|
|
-
|
|
6,770
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
1,979
|
|
-
|
|
1,979
|
|
4,144
|
|
-
|
|
4,144
|
|
6,306
|
|
-
|
|
6,306
|
|
9,091
|
|
-
|
|
9,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
2,225
|
|
-
|
|
2,225
|
|
4,515
|
|
-
|
|
4,515
|
|
6,723
|
|
-
|
|
6,723
|
|
9,105
|
|
-
|
|
9,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
10,111
|
|
(1,390)
|
|
8,721
|
|
21,754
|
|
(2,798)
|
|
18,956
|
|
33,215
|
|
(4,199)
|
|
29,016
|
|
46,132
|
|
(5,596)
|
|
40,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
371
|
|
-
|
|
371
|
|
815
|
|
-
|
|
815
|
|
1,233
|
|
-
|
|
1,233
|
|
1,681
|
|
-
|
|
1,681
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
145
|
|
(145)
|
|
-
|
|
252
|
|
(252)
|
|
-
|
|
377
|
|
(377)
|
|
-
|
|
508
|
|
(508)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
286
|
|
-
|
|
286
|
|
579
|
|
-
|
|
579
|
|
895
|
|
-
|
|
895
|
|
1,282
|
|
-
|
|
1,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
180
|
|
-
|
|
180
|
|
442
|
|
-
|
|
442
|
|
687
|
|
-
|
|
687
|
|
844
|
|
-
|
|
844
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
324
|
|
-
|
|
324
|
|
618
|
|
-
|
|
618
|
|
883
|
|
-
|
|
883
|
|
1,171
|
|
-
|
|
1,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Operating Profit
|
1,306
|
|
(145)
|
|
1,161
|
|
2,706
|
|
(252)
|
|
2,454
|
|
4,075
|
|
(377)
|
|
3,698
|
|
5,486
|
|
(508)
|
|
4,978
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Unallocated
Items
|
|
50
|
|
(64)
|
|
(14)
|
|
95
|
|
(129)
|
|
(34)
|
|
80
|
|
(166)
|
|
(86)
|
|
(50)
|
|
(216)
|
|
(266)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Operating Profit
|
1,356
|
|
(209)
|
|
1,147
|
|
2,801
|
|
(381)
|
|
2,420
|
|
4,155
|
|
(543)
|
|
3,612
|
|
5,436
|
|
(724)
|
|
4,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(93)
|
|
-
|
|
(93)
|
|
(197)
|
|
-
|
|
(197)
|
|
(301)
|
|
-
|
|
(301)
|
|
(443)
|
|
-
|
|
(443)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating
income, net
|
|
3
|
|
-
|
|
3
|
|
5
|
|
-
|
|
5
|
|
6
|
|
-
|
|
6
|
|
30
|
|
-
|
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
1,266
|
|
(209)
|
|
1,057
|
|
2,609
|
|
(381)
|
|
2,228
|
|
3,860
|
|
(543)
|
|
3,317
|
|
5,023
|
|
(724)
|
|
4,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(388)
|
|
69
|
|
(319)
|
|
(802)
|
|
127
|
|
(675)
|
|
(1,188)
|
|
180
|
|
(1,008)
|
|
(1,418)
|
|
245
|
|
(1,173)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
878
|
|
(140)
|
|
738
|
|
1,807
|
|
(254)
|
|
1,553
|
|
2,672
|
|
(363)
|
|
2,309
|
|
3,605
|
|
(479)
|
|
3,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
discontinued operations
|
-
|
|
140
|
|
140
|
|
-
|
|
254
|
|
254
|
|
-
|
|
363
|
|
363
|
|
-
|
|
479
|
|
479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
878
|
|
$
-
|
|
$
878
|
|
$
1,807
|
|
$
-
|
|
$
1,807
|
|
$
2,672
|
|
$
-
|
|
$
2,672
|
|
$
3,605
|
|
$
-
|
|
$
3,605
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
30.6%
|
|
|
|
30.2%
|
|
30.7%
|
|
|
|
30.3%
|
|
30.8%
|
|
|
|
30.4%
|
|
28.2%
|
|
|
|
27.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.78
|
|
$
(0.44)
|
|
$
2.34
|
|
$
5.76
|
|
$
(0.81)
|
|
$
4.95
|
|
$
8.57
|
|
$
(1.16)
|
|
$
7.41
|
|
$
11.62
|
|
$
(1.55)
|
|
$
10.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
-
|
|
0.44
|
|
0.44
|
|
-
|
|
0.81
|
|
0.81
|
|
-
|
|
1.16
|
|
1.16
|
|
-
|
|
1.55
|
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
2.78
|
|
$
-
|
|
$
2.78
|
|
$
5.76
|
|
$
-
|
|
$
5.76
|
|
$
8.57
|
|
$
-
|
|
$
8.57
|
|
$
11.62
|
|
$
-
|
|
$
11.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.74
|
|
$
(0.44)
|
|
$
2.30
|
|
$
5.68
|
|
$
(0.80)
|
|
$
4.88
|
|
$
8.45
|
|
$
(1.15)
|
|
$
7.30
|
|
$
11.46
|
|
$
(1.53)
|
|
$
9.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
-
|
|
0.44
|
|
0.44
|
|
-
|
|
0.80
|
|
0.80
|
|
-
|
|
1.15
|
|
1.15
|
|
-
|
|
1.53
|
|
1.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
2.74
|
|
$
-
|
|
$
2.74
|
|
$
5.68
|
|
$
-
|
|
$
5.68
|
|
$
8.45
|
|
$
-
|
|
$
8.45
|
|
$
11.46
|
|
$
-
|
|
$
11.46
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Press Release
Attachments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Earnings Adjusted for Discontinued
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
March 27, 2016
|
|
Quarter Ended June
26, 2016
|
|
Quarter Ended
Sept. 25, 2016
|
|
Quarter Ended Dec.
31, 2016
|
|
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
|
$
3,799
|
|
$
-
|
|
$
3,799
|
|
$
4,375
|
|
$
-
|
|
$
4,375
|
|
$
4,188
|
|
$
-
|
|
$
4,188
|
|
$
5,407
|
|
$
-
|
|
$
5,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
|
1,334
|
|
(1,334)
|
|
-
|
|
1,337
|
|
(1,337)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
|
1,434
|
|
-
|
|
1,434
|
|
1,680
|
|
-
|
|
1,680
|
|
1,737
|
|
-
|
|
1,737
|
|
1,757
|
|
-
|
|
1,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
|
3,004
|
|
-
|
|
3,004
|
|
3,303
|
|
-
|
|
3,303
|
|
3,346
|
|
-
|
|
3,346
|
|
3,809
|
|
-
|
|
3,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
|
2,131
|
|
-
|
|
2,131
|
|
2,219
|
|
-
|
|
2,219
|
|
2,280
|
|
-
|
|
2,280
|
|
2,779
|
|
-
|
|
2,779
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
11,702
|
|
(1,334)
|
|
10,368
|
|
12,914
|
|
(1,337)
|
|
11,577
|
|
11,551
|
|
-
|
|
11,551
|
|
13,752
|
|
-
|
|
13,752
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
|
420
|
|
-
|
|
420
|
|
478
|
|
-
|
|
478
|
|
437
|
|
-
|
|
437
|
|
552
|
|
-
|
|
552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
|
109
|
|
(109)
|
|
-
|
|
151
|
|
(151)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
|
221
|
|
-
|
|
221
|
|
253
|
|
-
|
|
253
|
|
289
|
|
-
|
|
289
|
|
255
|
|
-
|
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
|
229
|
|
-
|
|
229
|
|
202
|
|
-
|
|
202
|
|
247
|
|
-
|
|
247
|
|
228
|
|
-
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
|
244
|
|
-
|
|
244
|
|
340
|
|
-
|
|
340
|
|
450
|
|
-
|
|
450
|
|
255
|
|
-
|
|
255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Operating Profit
|
|
1,223
|
|
(109)
|
|
1,114
|
|
1,424
|
|
(151)
|
|
1,273
|
|
1,423
|
|
-
|
|
1,423
|
|
1,290
|
|
-
|
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Unallocated
Items
|
|
|
74
|
|
(30)
|
|
44
|
|
142
|
|
(40)
|
|
102
|
|
165
|
|
-
|
|
165
|
|
138
|
|
-
|
|
138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Operating Profit
|
|
1,297
|
|
(139)
|
|
1,158
|
|
1,566
|
|
(191)
|
|
1,375
|
|
1,588
|
|
-
|
|
1,588
|
|
1,428
|
|
-
|
|
1,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(164)
|
|
(1)
|
|
(165)
|
|
(166)
|
|
1
|
|
(165)
|
|
(162)
|
|
-
|
|
(162)
|
|
(171)
|
|
-
|
|
(171)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating
income, net
|
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
(2)
|
|
-
|
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
1,134
|
|
(140)
|
|
994
|
|
1,400
|
|
(190)
|
|
1,210
|
|
1,427
|
|
-
|
|
1,427
|
|
1,255
|
|
-
|
|
1,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense1
|
|
|
(236)
|
|
48
|
|
(188)
|
|
(379)
|
|
68
|
|
(311)
|
|
(338)
|
|
-
|
|
(338)
|
|
(296)
|
|
-
|
|
(296)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
|
898
|
|
(92)
|
|
806
|
|
1,021
|
|
(122)
|
|
899
|
|
1,089
|
|
-
|
|
1,089
|
|
959
|
|
-
|
|
959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
discontinued operations
|
|
-
|
|
92
|
|
92
|
|
-
|
|
122
|
|
122
|
|
1,306
|
|
-
|
|
1,306
|
|
29
|
|
-
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings1
|
|
|
$
898
|
|
$
-
|
|
$
898
|
|
$
1,021
|
|
$
-
|
|
$
1,021
|
|
$
2,395
|
|
$
-
|
|
$
2,395
|
|
$
988
|
|
$
-
|
|
$
988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
20.8%
|
|
|
|
18.9%
|
|
27.1%
|
|
|
|
25.7%
|
|
23.7%
|
|
|
|
23.7%
|
|
23.6%
|
|
|
|
23.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
2.95
|
|
$
(0.30)
|
|
$
2.65
|
|
$
3.37
|
|
$
(0.40)
|
|
$
2.97
|
|
$
3.64
|
|
$
-
|
|
$
3.64
|
|
$
3.29
|
|
$
-
|
|
$
3.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
-
|
|
0.30
|
|
0.30
|
|
-
|
|
0.40
|
|
0.40
|
|
4.38
|
|
-
|
|
4.38
|
|
0.10
|
|
-
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
|
$
2.95
|
|
$
-
|
|
$
2.95
|
|
$
3.37
|
|
$
-
|
|
$
3.37
|
|
$
8.02
|
|
$
-
|
|
$
8.02
|
|
$
3.39
|
|
$
-
|
|
$
3.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
2.91
|
|
$
(0.30)
|
|
$
2.61
|
|
$
3.32
|
|
$
(0.39)
|
|
$
2.93
|
|
$
3.61
|
|
$
-
|
|
$
3.61
|
|
$
3.25
|
|
$
-
|
|
$
3.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
-
|
|
0.30
|
|
0.30
|
|
-
|
|
0.39
|
|
0.39
|
|
4.32
|
|
-
|
|
4.32
|
|
0.10
|
|
-
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
2.91
|
|
$
-
|
|
$
2.91
|
|
$
3.32
|
|
$
-
|
|
$
3.32
|
|
$
7.93
|
|
$
-
|
|
$
7.93
|
|
$
3.35
|
|
$
-
|
|
$
3.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 27, 2016
|
|
Six Months Ended
June 26, 2016
|
|
Nine Months Ended
Sept. 25, 2016
|
|
Twelve Months
Ended Dec. 31, 2016
|
|
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
Lockheed
Martin
Historical
|
|
Adjustments for
Discontinued Operations
|
|
Lockheed
Martin
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
|
$
3,799
|
|
$
-
|
|
$
3,799
|
|
$
8,174
|
|
$
-
|
|
$
8,174
|
|
$
12,362
|
|
$
-
|
|
$
12,362
|
|
$
17,769
|
|
$
-
|
|
$
17,769
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
|
1,334
|
|
(1,334)
|
|
-
|
|
2,671
|
|
(2,671)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
|
1,434
|
|
-
|
|
1,434
|
|
3,114
|
|
-
|
|
3,114
|
|
4,851
|
|
-
|
|
4,851
|
|
6,608
|
|
-
|
|
6,608
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
|
3,004
|
|
-
|
|
3,004
|
|
6,307
|
|
-
|
|
6,307
|
|
9,653
|
|
-
|
|
9,653
|
|
13,462
|
|
-
|
|
13,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
|
2,131
|
|
-
|
|
2,131
|
|
4,350
|
|
-
|
|
4,350
|
|
6,630
|
|
-
|
|
6,630
|
|
9,409
|
|
-
|
|
9,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
11,702
|
|
(1,334)
|
|
10,368
|
|
24,616
|
|
(2,671)
|
|
21,945
|
|
33,496
|
|
-
|
|
33,496
|
|
47,248
|
|
-
|
|
47,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
|
420
|
|
-
|
|
420
|
|
898
|
|
-
|
|
898
|
|
1,335
|
|
-
|
|
1,335
|
|
1,887
|
|
-
|
|
1,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Information Systems
& Global Solutions
|
|
109
|
|
(109)
|
|
-
|
|
260
|
|
(260)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Missiles and Fire
Control
|
|
|
221
|
|
-
|
|
221
|
|
474
|
|
-
|
|
474
|
|
763
|
|
-
|
|
763
|
|
1,018
|
|
-
|
|
1,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rotary and Mission
Systems
|
|
|
229
|
|
-
|
|
229
|
|
431
|
|
-
|
|
431
|
|
678
|
|
-
|
|
678
|
|
906
|
|
-
|
|
906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Space
Systems
|
|
|
244
|
|
-
|
|
244
|
|
584
|
|
-
|
|
584
|
|
1,034
|
|
-
|
|
1,034
|
|
1,289
|
|
-
|
|
1,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Operating Profit
|
|
1,223
|
|
(109)
|
|
1,114
|
|
2,647
|
|
(260)
|
|
2,387
|
|
3,810
|
|
-
|
|
3,810
|
|
5,100
|
|
-
|
|
5,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Unallocated
Items
|
|
|
74
|
|
(30)
|
|
44
|
|
216
|
|
(70)
|
|
146
|
|
311
|
|
-
|
|
311
|
|
449
|
|
-
|
|
449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Consolidated
Operating Profit
|
|
1,297
|
|
(139)
|
|
1,158
|
|
2,863
|
|
(330)
|
|
2,533
|
|
4,121
|
|
-
|
|
4,121
|
|
5,549
|
|
-
|
|
5,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(164)
|
|
(1)
|
|
(165)
|
|
(330)
|
|
-
|
|
(330)
|
|
(492)
|
|
-
|
|
(492)
|
|
(663)
|
|
-
|
|
(663)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating
income, net
|
|
|
1
|
|
-
|
|
1
|
|
1
|
|
-
|
|
1
|
|
2
|
|
-
|
|
2
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
1,134
|
|
(140)
|
|
994
|
|
2,534
|
|
(330)
|
|
2,204
|
|
3,631
|
|
-
|
|
3,631
|
|
4,886
|
|
-
|
|
4,886
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense1
|
|
|
(236)
|
|
48
|
|
(188)
|
|
(615)
|
|
116
|
|
(499)
|
|
(837)
|
|
-
|
|
(837)
|
|
(1,133)
|
|
-
|
|
(1,133)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
|
898
|
|
(92)
|
|
806
|
|
1,919
|
|
(214)
|
|
1,705
|
|
2,794
|
|
-
|
|
2,794
|
|
3,753
|
|
-
|
|
3,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
discontinued operations
|
|
-
|
|
92
|
|
92
|
|
-
|
|
214
|
|
214
|
|
1,520
|
|
-
|
|
1,520
|
|
1,549
|
|
-
|
|
1,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings1
|
|
|
$
898
|
|
$
-
|
|
$
898
|
|
$
1,919
|
|
$
-
|
|
$
1,919
|
|
$
4,314
|
|
$
-
|
|
$
4,314
|
|
$
5,302
|
|
$
-
|
|
$
5,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
20.8%
|
|
|
|
18.9%
|
|
24.3%
|
|
|
|
22.6%
|
|
23.1%
|
|
|
|
23.1%
|
|
23.2%
|
|
|
|
23.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
2.95
|
|
$
(0.30)
|
|
$
2.65
|
|
$
6.32
|
|
$
(0.71)
|
|
$
5.61
|
|
$
9.25
|
|
$
-
|
|
$
9.25
|
|
$
12.54
|
|
$
-
|
|
$
12.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
-
|
|
0.30
|
|
0.30
|
|
-
|
|
0.71
|
|
0.71
|
|
5.03
|
|
-
|
|
5.03
|
|
5.17
|
|
-
|
|
5.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
|
$
2.95
|
|
$
-
|
|
$
2.95
|
|
$
6.32
|
|
$
-
|
|
$
6.32
|
|
$
14.28
|
|
$
-
|
|
$
14.28
|
|
$
17.71
|
|
$
-
|
|
$
17.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
|
$
2.91
|
|
$
(0.30)
|
|
$
2.61
|
|
$
6.23
|
|
$
(0.69)
|
|
$
5.54
|
|
$
9.13
|
|
$
-
|
|
$
9.13
|
|
$
12.38
|
|
$
-
|
|
$
12.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued
operations
|
|
|
-
|
|
0.30
|
|
0.30
|
|
-
|
|
0.69
|
|
0.69
|
|
4.97
|
|
-
|
|
4.97
|
|
5.11
|
|
-
|
|
5.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
|
$
2.91
|
|
$
-
|
|
$
2.91
|
|
$
6.23
|
|
$
-
|
|
$
6.23
|
|
$
14.10
|
|
$
-
|
|
$
14.10
|
|
$
17.49
|
|
$
-
|
|
$
17.49
|
|
¹ Income tax expense
and net earnings for the quarter and year ended March 27, 2016
reflect the adoption during the second quarter of 2016 of a new
accounting standard issued by the Financial Accounting Standards
Board that changed certain aspects of the accounting for equity
award.
|
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SOURCE Lockheed Martin