BETHESDA, Md., July 26, 2021 /PRNewswire/ -- Lockheed Martin
Corporation [NYSE: LMT] today reported second quarter 2021 net
sales of $17.0 billion, compared to
$16.2 billion in the second quarter
of 2020. Net earnings in the second quarter of 2021 were
$1.8 billion, or $6.52 per share, compared to $1.6 billion, or $5.79 per share, in the second quarter of
2020. Second quarter 2021 net earnings include a loss of
$225 million ($169 million, or $0.61 per share, after tax), recorded at
Aeronautics, related to performance issues experienced on a
classified program. Net earnings for the second quarter 2020
include a noncash impairment charge of $128
million ($96 million, or
$0.34 per share, after tax) for an
investment in a joint venture that the company sold. Cash from
operations in the second quarter of 2021 was $1.3 billion, compared to $2.2 billion in the second quarter of
2020.
"In my first year leading our company, I'm proud of the
extraordinary resolve demonstrated by our 114,000 team members to
rise above the challenges of the pandemic in support of our
customers, our nation and our allies. This is reflected in our
solid sales growth across each business area this quarter," said
Lockheed Martin Chairman, President and CEO James Taiclet. "Our teams continue to deliver on
key platform programs while also advancing technologies critical
for 21st century deterrence and scientific discovery. And as a
result, we are maintaining our prior guidance for full-year sales,
segment operating profit, and cash from operations, while raising
guidance for full-year EPS."
Summary Financial Results
The following table presents the company's summary financial
results.
|
(in millions,
except per share data)
|
|
Quarters
Ended1
|
|
Six Months
Ended
|
|
|
|
|
June
27,
2021
|
|
June
28,
2020
|
|
June
27,
2021
|
|
June
28,
2020
|
|
|
Net
sales
|
|
$
|
17,029
|
|
|
$
|
16,220
|
|
|
$
|
33,287
|
|
|
$
|
31,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit2,3
|
|
$
|
1,766
|
|
|
$
|
1,790
|
|
|
$
|
3,515
|
|
|
$
|
3,515
|
|
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating
adjustment
|
|
489
|
|
|
469
|
|
|
978
|
|
|
938
|
|
|
|
Severance and
restructuring charges
|
|
—
|
|
|
—
|
|
|
(36)
|
|
|
—
|
|
|
|
Other,
net4
|
|
(63)
|
|
|
(173)
|
|
|
(83)
|
|
|
(245)
|
|
|
|
Total unallocated
items
|
|
426
|
|
|
296
|
|
|
859
|
|
|
693
|
|
|
|
Consolidated
operating profit
|
|
$
|
2,192
|
|
|
$
|
2,086
|
|
|
$
|
4,374
|
|
|
$
|
4,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
1,815
|
|
|
$
|
1,626
|
|
|
$
|
3,652
|
|
|
$
|
3,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
|
6.52
|
|
|
$
|
5.79
|
|
|
$
|
13.08
|
|
|
$
|
11.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from
operations5
|
|
$
|
1,268
|
|
|
$
|
2,182
|
|
|
$
|
3,016
|
|
|
$
|
4,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 27 for the second quarter of 2021 and June 28 for
the second quarter of 2020. The consolidated financial statements
and
tables of financial information included herein are labeled based
on that convention. This practice only affects interim periods, as
the company's
fiscal year ends on Dec. 31.
|
|
2
|
Business segment
operating profit is a non-GAAP measure. See the "Non-GAAP Financial
Measures" section of this news release for more
information.
|
|
3
|
The company has
experienced performance issues on a classified program at its
Aeronautics business segment. During the second quarter of
2021, the company completed a comprehensive review of the program
and determined that estimated total costs to complete the program
are
expected to exceed the contract price. As a result, the company
recorded a loss of $225 million ($169 million, or $0.61 per share,
after tax) at its
Aeronautics business segment.
|
|
4
|
In the second quarter
of 2020, the company recognized a noncash impairment charge of $128
million ($96 million, or $0.34 per share, after
tax) for its investment in the international equity method
investee, Advanced Military Maintenance, Repair and Overhaul Center
(AMMROC),
which the company sold.
|
|
5
|
Cash from operations
in the second quarter of 2021 reflects federal income tax payments
of $640 million and cash payments for the employer
portion of payroll taxes of $182 million, compared to no payments
in the second quarter of 2020 due to the deferral of $400 million
of federal tax
payments from the second quarter of 2020 to the third quarter of
2020 pursuant to IRS guidance and $160 million for the employer
portion of
payroll taxes from the second quarter of 2020 to fourth quarters of
2021 and 2022 pursuant to the Coronavirus Aid, Relief, and
Economic
Security Act
(CARES Act).
|
|
2021 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
acquisitions, divestitures, ventures, pension risk transfer
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.
|
(in millions,
except per share data)
|
|
Current
Guidance1
|
|
April 2021
Outlook1
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$67,300 -
$68,700
|
|
$67,300 -
$68,700
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit
|
|
$7,380 -
$7,520
|
|
$7,380 -
$7,520
|
|
|
|
|
|
|
|
|
|
Net FAS/CAS pension
adjustment2
|
|
~$2,330
|
|
~$2,330
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$26.70 -
$27.00
|
|
$26.40 -
$26.70
|
|
|
|
|
|
|
|
|
|
Cash from
operations
|
|
≥$8,900
|
|
≥$8,900
|
|
|
|
|
|
|
|
|
1
|
The company's 2021
financial outlook reflects the anticipated impacts from the
COVID-19 pandemic based on the company's understanding at
the time of this news release. However, the ultimate impacts of
COVID-19 on the company's financial outlook for 2021 and beyond
remains
uncertain and there can be no assurance that the company's
underlying assumptions are correct. Additionally, the 2021
financial outlook reflects
the UK Ministry of Defence's renationalization of the Atomic
Weapons Establishment program on June 30, 2021. The 2021 financial
outlook also
reflects the impact of the unrealized and realized gains from
investments held by the Lockheed Martin Ventures Fund year to date,
but does not
include any future gains or losses related to market volatility and
changes in valuations of the company's investment holdings.
Further, the 2021
financial outlook does not incorporate the pending acquisition of
Aerojet Rocketdyne Holdings, Inc. previously announced on Dec. 20,
2020.
|
|
2
|
The net FAS/CAS
pension adjustment is presented as a single amount and includes
total expected U.S. Government cost accounting standards
(CAS) pension cost of approximately $2,065 million and total
expected financial accounting standards (FAS) pension income of
approximately
$265 million. CAS pension cost and the service cost component of
FAS pension income are included in operating profit. The
non-service cost
components of FAS pension income are included in non-operating
income. For additional detail regarding the pension amounts
reported in
operating and non-operating results, refer to the supplemental
table included at the end of this news release.
|
|
|
|
|
|
|
|
Cash Activities
The company's cash activities in the second quarter of 2021,
included the following:
- making capital expenditures of $318
million, compared to $343
million in the second quarter of 2020;
- paying cash dividends of $721
million, compared to $671
million in the second quarter of 2020;
- repurchasing 1.3 million shares for $500
million pursuant to an accelerated share repurchase
agreement (ASR) (and retiring an additional 1.0 million shares for
a first quarter 2021 ASR that settled in the second quarter of
2021); compared to repurchasing 0.7 million shares for $259 million in the second quarter of 2020 (and
retiring an additional 0.4 million shares for a first quarter 2020
ASR that settled in the second quarter of 2020); and
- accelerating $1.4 billion of
payments to suppliers in the second quarter 2021 that were due in
the third quarter of 2021; compared to accelerating $1.3 billion of payments to suppliers in the
second quarter 2020 that were due in the third quarter of
2020.
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), Rotary and Mission Systems (RMS)
and Space. The following table presents summary operating results
of the company's business segments and reconciles these amounts to
the company's consolidated financial results.
|
(in millions)
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June 27,
2021
|
|
June 28,
2020
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
6,666
|
|
|
$
|
6,503
|
|
|
$
|
13,053
|
|
|
$
|
12,872
|
|
|
|
Missiles and Fire
Control
|
|
2,944
|
|
|
2,801
|
|
|
5,693
|
|
|
5,420
|
|
|
|
Rotary and Mission
Systems
|
|
4,242
|
|
|
4,039
|
|
|
8,349
|
|
|
7,785
|
|
|
|
Space
|
|
3,177
|
|
|
2,877
|
|
|
6,192
|
|
|
5,794
|
|
|
|
Total net
sales
|
|
$
|
17,029
|
|
|
$
|
16,220
|
|
|
$
|
33,287
|
|
|
$
|
31,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
572
|
|
|
$
|
739
|
|
|
$
|
1,265
|
|
|
$
|
1,411
|
|
|
|
Missiles and Fire
Control
|
|
401
|
|
|
370
|
|
|
797
|
|
|
766
|
|
|
|
Rotary and Mission
Systems
|
|
458
|
|
|
429
|
|
|
891
|
|
|
805
|
|
|
|
Space
|
|
335
|
|
|
252
|
|
|
562
|
|
|
533
|
|
|
|
Total business
segment operating profit
|
|
1,766
|
|
|
1,790
|
|
|
3,515
|
|
|
3,515
|
|
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating
adjustment
|
|
489
|
|
|
469
|
|
|
978
|
|
|
938
|
|
|
|
Severance and
restructuring charges
|
|
—
|
|
|
—
|
|
|
(36)
|
|
|
—
|
|
|
|
Other, net
|
|
(63)
|
|
|
(173)
|
|
|
(83)
|
|
|
(245)
|
|
|
|
Total unallocated
items
|
|
426
|
|
|
296
|
|
|
859
|
|
|
693
|
|
|
|
Total consolidated
operating profit
|
|
$
|
2,192
|
|
|
$
|
2,086
|
|
|
$
|
4,374
|
|
|
$
|
4,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales and operating profit of the company's business
segments exclude intersegment sales, cost of sales, and profit as
these activities are eliminated in consolidation. Operating profit
of the company's business segments includes the company's share of
earnings or losses from equity method investees as the operating
activities of the investees are closely aligned with the operations
of its business segments.
Operating profit of the company's business segments also
excludes the FAS/CAS pension operating adjustment described below,
a portion of corporate costs not considered allowable or allocable
to contracts with the U.S. Government under the applicable U.S.
Government cost accounting standards (CAS) or federal acquisition
regulations (FAR), and other items not considered part of
management's evaluation of segment operating performance such as a
portion of management and administration costs, legal fees and
settlements, environmental costs, stock-based compensation expense,
retiree benefits, significant severance actions, significant asset
impairments, gains or losses from divestitures, and other
miscellaneous corporate activities.
The company recovers CAS pension cost through the pricing of its
products and services on U.S. Government contracts and, therefore,
recognizes CAS pension cost in each of its business segments' net
sales and cost of sales. The company's consolidated financial
statements must present pension and other postretirement benefit
plan income calculated in accordance with FAS requirements under
U.S. generally accepted accounting principles. The operating
portion of the net FAS/CAS pension adjustment represents the
difference between the service cost component of FAS pension income
and total CAS pension cost. The non-service FAS pension income
component is included in other non-operating income. The net
FAS/CAS pension adjustment increases or decreases CAS pension cost
to equal total FAS pension income (both service and
non-service).
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 company's
segment sales, operating profit and operating margin may be
impacted favorably or unfavorably by changes in profit booking
rates on the company's contracts for which it recognizes revenue
over time using the percentage-of-completion cost-to-cost method to
measure progress towards completion. Increases in profit booking
rates, typically referred to as risk retirements, usually relate to
revisions in the estimated total costs to fulfill the performance
obligations 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 fulfill the performance obligations 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, which may or may not
impact sales. Favorable items may include the positive resolution
of contractual matters, cost recoveries on severance and
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 certain assets.
The company's consolidated net adjustments not related to
volume, including net profit booking rate adjustments, represented
approximately 22% of total segment operating profit in the second
quarter of 2021, as compared to 27% in the second quarter of
2020.
Aeronautics
|
(in millions)
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June 27,
2021
|
|
June 28,
2020
|
|
|
Net
sales
|
|
$
|
6,666
|
|
|
$
|
6,503
|
|
|
$
|
13,053
|
|
|
$
|
12,872
|
|
|
|
Operating
profit
|
|
572
|
|
|
739
|
|
|
1,265
|
|
|
1,411
|
|
|
|
Operating
margin
|
|
8.6
|
%
|
|
11.4
|
%
|
|
9.7
|
%
|
|
11.0
|
%
|
|
Aeronautics' net sales during the second quarter of 2021
increased $163 million, or 3%, compared to the same period in
2020. The increase was primarily attributable to about $100 million for the F-16 program due to
increased production volume that was partially offset by decreased
sustainment volume; and about $90
million for the F-35 program due to increased production and
sustainment volume that was partially offset by decreased
development activities. These increases were partially offset by
lower net sales of approximately $60
million for the F-22 program due to decreased sustainment
volume.
Aeronautics' operating profit during the second quarter of 2021
decreased $167 million, or 23%, compared to the same period in
2020. Operating profit decreased due to a loss of approximately
$225 million in the second quarter of
2021 for performance issues experienced on a classified program;
and about $20 million for the F-22
program due to lower risk retirements and sustainment volume. These
decreases were partially offset by higher operating profit of
approximately $45 million for the
C-130 program primarily due to higher risk retirements on
sustainment activities; and about $20
million for the F-16 program due to increased production
volume and higher risk retirements. Operating profit for the F-35
program was comparable as higher production and sustainment volume
was offset by lower risk retirements. Adjustments not related to
volume, including net profit booking rate adjustments, were
$180 million lower in the second
quarter of 2021 compared to the same period in 2020.
Missiles and Fire Control
|
(in millions)
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June 27,
2021
|
|
June 28,
2020
|
|
|
Net
sales
|
|
$
|
2,944
|
|
|
$
|
2,801
|
|
|
$
|
5,693
|
|
|
$
|
5,420
|
|
|
|
Operating
profit
|
|
401
|
|
|
370
|
|
|
797
|
|
|
766
|
|
|
|
Operating
margin
|
|
13.6
|
%
|
|
13.2
|
%
|
|
14.0
|
%
|
|
14.1
|
%
|
|
MFC's net sales during the second quarter of 2021 increased
$143 million, or 5%, compared to the same period in 2020. The
increase was primarily attributable to higher net sales of
approximately $110 million for
tactical and strike missile programs due to higher production
volume (Army Tactical Missile System (ATACMS) and Long Range
Anti-Ship Missile (LRASM)); and about $35
million for sensors and global sustainment programs due to
higher service volume (primarily Special Operations Forces Global
Logistics Support Services (SOF GLSS)) and close out activities
related to the Warrior Capability Sustainment Program (Warrior)
that was terminated by the customer in March
2021.
MFC's operating profit during the second quarter of 2021
increased $31 million, or 8%, compared to the same period in
2020. Operating profit increased approximately $45 million for sensors and global sustainment
programs primarily due to the reversal of the portion of previously
recorded losses on the Warrior program in the second quarter of
2021 that are no longer expected to be incurred as a result of the
program being terminated. This increase was partially offset by
lower operating profit of approximately $15
million on integrated air and missile defense programs due
to lower risk retirements (primarily Terminal High Altitude Area
Defense (THAAD)). Operating profit for tactical and strike missile
programs was comparable as higher production volume (ATACMS and
LRASM) was offset by lower volume on the Long Range Stand-Off
program. Adjustments not related to volume, including net profit
booking rate adjustments, were $25
million higher in the second quarter of
2021 compared to the same period in 2020.
Rotary and Mission Systems
|
(in millions)
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June 27,
2021
|
|
June 28,
2020
|
|
|
Net
sales
|
|
$
|
4,242
|
|
|
$
|
4,039
|
|
|
$
|
8,349
|
|
|
$
|
7,785
|
|
|
|
Operating
profit
|
|
458
|
|
|
429
|
|
|
891
|
|
|
805
|
|
|
|
Operating
margin
|
|
10.8
|
%
|
|
10.6
|
%
|
|
10.7
|
%
|
|
10.3
|
%
|
|
RMS' net sales during the second quarter of 2021 increased
$203 million, or 5%, compared to the same period in 2020. The
increase was attributable to higher net sales of approximately
$230 million for Sikorsky helicopter
programs due to higher production volume on the Black Hawk, Combat
Rescue Helicopter (CRH), and CH-53K programs that was partially
offset by lower production volume on Seahawk programs. This
increase was partially offset by lower net sales of about
$35 million for integrated warfare
systems and sensors (IWSS) programs due to lower volume on the
TPQ-53 and the Littoral Combat Ship (LCS) programs that was
partially offset by higher volume on the Canadian Surface Combatant
(CSC) and Aegis Combat System (Aegis) programs.
RMS' operating profit during the second quarter of 2021
increased $29 million, or 7%, compared to the same period
in 2020. Operating profit increased approximately $20 million for Sikorsky helicopter programs due
to higher production volume on the Black Hawk, CRH, and CH-53K
programs. Operating profit for IWSS programs was comparable as risk
retirements on a ground-based radar program were offset by lower
risk retirements on the LCS program. Adjustments not related to
volume, including net profit booking rate adjustments, were
comparable in the second quarter of 2021 to the same
period in 2020.
Space
|
(in millions)
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June 27,
2021
|
|
June 28,
2020
|
|
|
Net
sales
|
|
$
|
3,177
|
|
|
$
|
2,877
|
|
|
$
|
6,192
|
|
|
$
|
5,794
|
|
|
|
Operating
profit
|
|
335
|
|
|
252
|
|
|
562
|
|
|
533
|
|
|
|
Operating
margin
|
|
10.5
|
%
|
|
8.8
|
%
|
|
9.1
|
%
|
|
9.2
|
%
|
|
Space's net sales during the second quarter of 2021 increased
$300 million, or 10%, compared to the same period in 2020. The
increase was primarily attributable to higher net sales of
approximately $125 million for the
Atomic Weapons Establishment (AWE) program due to higher volume;
about $100 million for national
security space programs due to higher volume (primarily Next
Generation Overhead Persistent Infrared (Next Gen OPIR)); and about
$80 million for strategic and missile
defense programs due to higher volume (primarily hypersonic
development programs). As previously disclosed, effective
June 30, 2021 (subsequent to the
second quarter), the UK Ministry of Defence renationalized the AWE
program. Accordingly, the AWE program will no longer be included in
the company's financial results beginning in the third quarter of
2021.
Space's operating profit during the second quarter of 2021
increased $83 million, or 33%, compared to the same period in
2020. Operating profit increased approximately $45 million for national security space programs
primarily due to higher risk retirements (primarily Space-Based
Infrared System (SBIRS)) and higher volume (primarily Next Gen
OPIR); and about $35 million due to
higher equity earnings from the company's investment in United
Launch Alliance (ULA). Operating profit for the AWE program was
comparable as higher volume was offset by accelerated and
incremental amortization expense for intangible assets. Operating
profit for strategic and missile defense programs was also
comparable as higher volume (hypersonic development programs) was
offset by lower risk retirements (primarily Fleet Ballistic Missile
(FBM) programs). Adjustments not related to volume, including net
profit booking rate adjustments, were $65
million higher in the second quarter of
2021 compared to the same period in 2020.
Total equity earnings (primarily ULA) recognized in Space's
operating profit were approximately $45 million, or 13% of
Space's operating profit during the second quarter of 2021,
compared to approximately $10
million, or 4% in the second quarter of 2020.
Income Taxes
The company's effective income tax rate was 16.4% for the second
quarter of 2021 and 17.1% for the second quarter of 2020. The rate
for the second quarter of 2021 is lower primarily due to increased
tax deductions for foreign derived intangible income. The rates for
both periods benefited from tax deductions for foreign derived
intangible income, the research and development tax credit, and
dividends paid to the company's defined contribution plans with an
employee stock ownership plan feature.
Use of Non-GAAP Financial Measures
This news release contains the following non-generally accepted
accounting principles (non-GAAP) financial measures (as defined by
U.S. Securities and Exchange Commission (SEC) Regulation G). While
management believes that these non-GAAP financial measures may be
useful in evaluating the financial performance of the company, this
information should be considered supplemental and is not a
substitute for financial information prepared in accordance with
GAAP. In addition, the company's definitions for non-GAAP financial
measures may differ from similarly titled measures used by other
companies or analysts.
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.
|
(in
millions)
|
|
Current
Update1
|
|
April
20211
|
|
|
Business segment
operating profit (non-GAAP)
|
|
$7,380 -
$7,520
|
|
$7,380 -
$7,520
|
|
|
FAS/CAS operating
adjustment2
|
|
~1,955
|
|
~1,955
|
|
|
Other, net
|
|
~(300)
|
|
~(355)
|
|
|
Consolidated
operating profit (GAAP)
|
|
$9,035 -
$9,175
|
|
$8,980 -
$9,120
|
|
|
|
|
|
|
|
|
1
|
The company's 2021
financial outlook reflects the anticipated impacts from the
COVID-19 pandemic based on the company's understanding at
the time of this news release. However, the ultimate impacts of
COVID-19 on the company's financial outlook for 2021 and beyond
remains
uncertain and there can be no assurance that the company's
underlying assumptions are correct. Additionally, the 2021
financial outlook reflects
the UK Ministry of Defence's renationalization of the AWE program
on June 30, 2021. Further, the 2021 financial outlook does not
incorporate
the pending acquisition of Aerojet Rocketdyne Holdings, Inc.
announced on Dec. 20, 2020.
|
|
2
|
Refer to the
supplemental table "Other Financial and Operating Information"
included in this news release for a detail of the FAS/CAS
operating
adjustment, which excludes $375 million of expected
non-service FAS income that will be recorded in non-operating
income (expense).
|
|
|
|
|
Conference Call Information
Lockheed Martin Corporation will webcast live the earnings
results conference call (listen-only mode) on Monday, July 26,
2021, at 11 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 the company's website:
www.lockheedmartin.com.
About Lockheed Martin
Headquartered in Bethesda,
Maryland, Lockheed Martin Corporation is a global security
and aerospace company that employs approximately 114,000 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 impact of COVID-19 or future epidemics on the company's
business, including potential supply chain disruptions, facility
closures, work stoppages, program delays, payment policies and
regulations and the company's ability to recover its costs under
contracts;
- budget uncertainty, the risk of future budget cuts, the debt
ceiling and the potential for government shutdowns and changing
funding and acquisition priorities;
- the company's reliance on contracts with the U.S. Government,
which are dependent on U.S. Government funding and can be
terminated for convenience, and the company's ability to negotiate
favorable contract terms;
- risks related to the development, production, sustainment,
performance, schedule, cost and requirements of complex and
technologically advanced programs including the company's largest,
the F-35 program;
- planned production rates and orders for significant programs;
compliance with stringent performance and reliability standards;
materials availability;
- performance and financial viability of key suppliers,
teammates, joint ventures and partners, subcontractors and
customers;
- economic, industry, business and political conditions including
their effects on governmental policy and government actions that
disrupt the company's supply chain or prevent the sale or delivery
of its products (such as delays in approvals for exports requiring
Congressional notification);
- trade policies or sanctions (including potential Chinese
sanctions on the company or its suppliers, teammates or partners;
U.S. Government sanctions on Turkey and its removal from the F-35 program
and potential U.S. Government actions to restrict sales to the
Kingdom of Saudi Arabia and the
United Arab Emirates);
- the company's success expanding into and doing business in
adjacent markets and internationally and the differing risks posed
by international sales;
- changes in foreign national priorities and foreign government
budgets and planned orders;
- the competitive environment for the company's products and
services, including increased pricing pressures, aggressive pricing
in the absence of cost realism evaluation criteria, competition
from outside the aerospace and defense industry, and bid
protests;
- the timing and customer acceptance of product deliveries and
performance milestones;
- the company's ability to develop new technologies and products,
including emerging digital and network technologies and
capabilities;
- the company's ability to attract and retain a highly skilled
workforce; 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 and
dividend payments;
- the company's ability to recover costs under U.S. Government
contracts and changes in contract mix;
- the accuracy of the company's estimates and projections;
- the impact of pension risk transfers, including potential
noncash settlement charges; timing and estimates regarding pension
funding and movements in interest rates and other changes that may
affect pension plan assumptions, stockholders' equity, the level of
the FAS/CAS adjustment; actual returns on pension plan assets and
the impact of the American Rescue Plan Act of 2021;
- the successful operation of joint ventures that the company
does not control;
- realizing the anticipated benefits of acquisitions or
divestitures, investments, joint ventures, teaming arrangements or
internal reorganizations, and market volatility in the fair value
of investments in the company's Lockheed Martin Ventures Fund that
are marked to market;
- risks related to the company's proposed acquisition of Aerojet
Rocketdyne, including the failure to obtain, delays in obtaining or
adverse conditions contained in any required regulatory approvals
and the company's ability to successfully and timely integrate the
business and realize synergies and other expected benefits of the
transaction;
- the company's efforts to increase the efficiency of its
operations and improve the affordability of its products and
services;
- the risk of an impairment of the company's assets, including
the potential impairment of goodwill recorded as a result of the
acquisition of the Sikorsky business;
- the availability and adequacy of the company's insurance and
indemnities;
- the company's ability to benefit fully from or adequately
protect its intellectual property rights;
- 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, including a reversal or modification to the DoD's
increase to the progress payment rate in response to COVID-19;
- changes in accounting, U.S. or foreign tax, export or other
laws, regulations, and policies and their interpretation or
application; 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
U.S. Securities and Exchange Commission including, but not limited
to, "Management's Discussion and Analysis of Financial Condition
and Results of Operations" and "Risk Factors" in the company's
Annual Report on Form 10-K for the year ended
Dec. 31, 2020, and subsequent quarterly reports on Form
10-Q. The company'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 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.
Lockheed Martin
Corporation
|
Consolidated
Statements of Earnings1
|
(unaudited;
in millions, except per share
data)
|
|
|
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June 27,
2021
|
|
June 28,
2020
|
|
Net
sales
|
|
$
|
17,029
|
|
|
$
|
16,220
|
|
|
$
|
33,287
|
|
|
$
|
31,871
|
|
|
Cost of
sales
|
|
(14,878)
|
|
|
(14,007)
|
|
|
(28,950)
|
|
|
(27,567)
|
|
|
Gross
profit
|
|
2,151
|
|
|
2,213
|
|
|
4,337
|
|
|
4,304
|
|
|
Other income
(expense), net2
|
|
41
|
|
|
(127)
|
|
|
37
|
|
|
(96)
|
|
|
Operating
profit3
|
|
2,192
|
|
|
2,086
|
|
|
4,374
|
|
|
4,208
|
|
|
Interest
expense
|
|
(142)
|
|
|
(149)
|
|
|
(282)
|
|
|
(297)
|
|
|
Other non-operating
income, net
|
|
120
|
|
|
25
|
|
|
289
|
|
|
81
|
|
|
Earnings before
income taxes
|
|
2,170
|
|
|
1,962
|
|
|
4,381
|
|
|
3,992
|
|
|
Income tax
expense
|
|
(355)
|
|
|
(336)
|
|
|
(729)
|
|
|
(649)
|
|
|
Net
earnings
|
|
$
|
1,815
|
|
|
$
|
1,626
|
|
|
$
|
3,652
|
|
|
$
|
3,343
|
|
|
Effective tax
rate
|
|
16.4
|
%
|
|
17.1
|
%
|
|
16.6
|
%
|
|
16.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
6.54
|
|
|
$
|
5.81
|
|
|
$
|
13.13
|
|
|
$
|
11.92
|
|
|
Diluted
|
|
$
|
6.52
|
|
|
$
|
5.79
|
|
|
$
|
13.08
|
|
|
$
|
11.87
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
277.4
|
|
|
279.8
|
|
|
278.1
|
|
|
280.5
|
|
|
Diluted
|
|
278.4
|
|
|
280.8
|
|
|
279.1
|
|
|
281.7
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
reported in stockholders'
equity at end
of period
|
|
|
|
|
|
276
|
|
|
278
|
|
|
|
|
|
|
|
|
|
|
|
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 June 27 for the second quarter of 2021 and June 28 for the
second quarter of 2020. The consolidated financial statements and
tables of financial information included herein are labeled based
on that convention. This practice only affects interim periods, as
the company's fiscal year ends on Dec. 31.
|
2
|
In the second quarter
of 2020, the company recognized a noncash impairment charge of $128
million ($96 million, or $0.34 per share, after tax) for its
investment in the international equity method investee, AMMROC
which the company has sold.
|
3
|
The company has
experienced performance issues on a classified program at its
Aeronautics business segment. During the second quarter of 2021,
the company completed a comprehensive review of the program
determined that estimated total costs to complete the program are
expected to exceed the contract price. As a result, the company
recorded a loss of $225 million ($169 million, or $0.61 per share,
after tax) at its Aeronautics business segment.
|
Lockheed Martin
Corporation
|
Business Segment
Summary Operating Results
|
(unaudited;
in millions)
|
|
|
|
|
Quarters
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
%
Change
|
|
June 27,
2021
|
|
June 28,
2020
|
|
%
Change
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
6,666
|
|
|
$
|
6,503
|
|
|
3%
|
|
$
|
13,053
|
|
|
$
|
12,872
|
|
|
1%
|
|
Missiles and Fire
Control
|
|
2,944
|
|
|
2,801
|
|
|
5%
|
|
5,693
|
|
|
5,420
|
|
|
5%
|
|
Rotary and Mission
Systems
|
|
4,242
|
|
|
4,039
|
|
|
5%
|
|
8,349
|
|
|
7,785
|
|
|
7%
|
|
Space
|
|
3,177
|
|
|
2,877
|
|
|
10%
|
|
6,192
|
|
|
5,794
|
|
|
7%
|
|
Total net
sales
|
|
$
|
17,029
|
|
|
$
|
16,220
|
|
|
5%
|
|
$
|
33,287
|
|
|
$
|
31,871
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics1
|
|
$
|
572
|
|
|
$
|
739
|
|
|
(23%)
|
|
$
|
1,265
|
|
|
$
|
1,411
|
|
|
(10%)
|
|
Missiles and Fire
Control
|
|
401
|
|
|
370
|
|
|
8%
|
|
797
|
|
|
766
|
|
|
4%
|
|
Rotary and Mission
Systems
|
|
458
|
|
|
429
|
|
|
7%
|
|
891
|
|
|
805
|
|
|
11%
|
|
Space
|
|
335
|
|
|
252
|
|
|
33%
|
|
562
|
|
|
533
|
|
|
5%
|
|
Total business
segment operating
profit
|
|
1,766
|
|
|
1,790
|
|
|
(1%)
|
|
3,515
|
|
|
3,515
|
|
|
—%
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating
adjustment
|
|
489
|
|
|
469
|
|
|
|
|
978
|
|
|
938
|
|
|
|
|
Severance and
restructuring charges
|
|
—
|
|
|
—
|
|
|
|
|
(36)
|
|
|
—
|
|
|
|
|
Other,
net2
|
|
(63)
|
|
|
(173)
|
|
|
|
|
(83)
|
|
|
(245)
|
|
|
|
|
Total unallocated
items
|
|
426
|
|
|
296
|
|
|
44%
|
|
859
|
|
|
693
|
|
|
24%
|
|
Total consolidated
operating
profit
|
|
$
|
2,192
|
|
|
$
|
2,086
|
|
|
5%
|
|
$
|
4,374
|
|
|
$
|
4,208
|
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
8.6%
|
|
11.4%
|
|
|
|
9.7%
|
|
11.0%
|
|
|
|
Missiles and Fire
Control
|
|
13.6%
|
|
13.2%
|
|
|
|
14.0%
|
|
14.1%
|
|
|
|
Rotary and Mission
Systems
|
|
10.8%
|
|
10.6%
|
|
|
|
10.7%
|
|
10.3%
|
|
|
|
Space
|
|
10.5%
|
|
8.8%
|
|
|
|
9.1%
|
|
9.2%
|
|
|
|
Total business
segment operating
margin
|
|
10.4%
|
|
11.0%
|
|
|
|
10.6%
|
|
11.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
operating
margin
|
|
12.9%
|
|
12.9%
|
|
|
|
13.1%
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
The company has
experienced performance issues on a classified program at its
Aeronautics business segment. During the second quarter of 2021,
the company completed a comprehensive review of the program
determined that estimated total costs to complete the program are
expected to exceed the contract price. As a result, the company
recorded a loss of $225 million ($169 million, or $0.61 per share,
after tax) at its Aeronautics business segment.
|
2
|
In the second quarter
of 2020, the company recognized a noncash impairment charge of $128
million ($96 million, or $0.34 per share, after tax) for its
investment in the international equity method investee, AMMROC
which the company has sold.
|
Lockheed Martin
Corporation
|
Selected Financial
Data
|
(unaudited;
in millions)
|
|
|
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June
27,
2021
|
|
June
28,
2020
|
|
Amortization of
purchased intangibles
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
Missiles and Fire
Control
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
Rotary and Mission
Systems
|
|
58
|
|
|
58
|
|
|
116
|
|
|
116
|
|
|
Space
|
|
22
|
|
|
7
|
|
|
44
|
|
|
14
|
|
|
Total amortization
of purchased
intangibles
|
|
$
|
81
|
|
|
$
|
65
|
|
|
$
|
162
|
|
|
$
|
131
|
|
|
|
|
|
|
2021
Outlook
|
|
2020
Actual
|
|
Total FAS income
and CAS costs
|
|
|
|
|
|
FAS pension
income
|
|
$
|
265
|
|
|
$
|
118
|
|
|
Less: CAS pension
cost
|
|
2,065
|
|
|
1,977
|
|
|
Net FAS/CAS pension
adjustment
|
|
$
|
2,330
|
|
|
$
|
2,095
|
|
|
|
|
|
|
|
|
Service and
non-service cost reconciliation
|
|
|
|
|
|
FAS pension service
cost
|
|
$
|
(110)
|
|
|
$
|
(101)
|
|
|
Less: CAS pension
cost
|
|
2,065
|
|
|
1,977
|
|
|
FAS/CAS operating
adjustment
|
|
1,955
|
|
|
1,876
|
|
|
Non-operating FAS
pension income1
|
|
375
|
|
|
219
|
|
|
Net FAS/CAS pension
adjustment
|
|
$
|
2,330
|
|
|
$
|
2,095
|
|
|
|
|
|
|
|
1
|
The company records
the non-service cost components of net periodic benefit cost as
part of other non-operating income in the consolidated statement of
earnings. The non-service cost components in the table above relate
only to the company's qualified defined benefit pension plans. The
company expects non-service income for its qualified defined
benefit pension plans in the table above, along with non-service
income for its other postretirement benefit plans of $5 million, to
total non-service income of $380 million for 2021. The company
recorded non-service cost for its other postretirement benefit
plans of $33 million in 2020, in addition to its non-service income
for its qualified defined benefit pension plans in the table above,
to total non-service income of $186 million in 2020.
|
Lockheed Martin
Corporation
|
Consolidated
Balance Sheets
|
(in millions,
except par value)
|
|
|
|
|
June 27,
2021
|
|
Dec.
31,
2020
|
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,745
|
|
|
$
|
3,160
|
|
|
Receivables,
net
|
|
2,611
|
|
|
1,978
|
|
|
Contract
assets
|
|
11,425
|
|
|
9,545
|
|
|
Inventories
|
|
3,119
|
|
|
3,545
|
|
|
Other current
assets
|
|
774
|
|
|
1,150
|
|
|
Total current
assets
|
|
20,674
|
|
|
19,378
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
7,290
|
|
|
7,213
|
|
|
Goodwill
|
|
10,810
|
|
|
10,806
|
|
|
Intangible assets,
net
|
|
2,849
|
|
|
3,012
|
|
|
Deferred income
taxes
|
|
3,377
|
|
|
3,475
|
|
|
Other noncurrent
assets
|
|
7,099
|
|
|
6,826
|
|
|
Total
assets
|
|
$
|
52,099
|
|
|
$
|
50,710
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,608
|
|
|
$
|
880
|
|
|
Contract
liabilities
|
|
7,379
|
|
|
7,545
|
|
|
Salaries, benefits and
payroll taxes
|
|
3,029
|
|
|
3,163
|
|
|
Current maturities of
long-term debt
|
|
506
|
|
|
500
|
|
|
Other current
liabilities
|
|
2,720
|
|
|
1,845
|
|
|
Total current
liabilities
|
|
15,242
|
|
|
13,933
|
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
11,665
|
|
|
11,669
|
|
|
Accrued pension
liabilities
|
|
12,412
|
|
|
12,874
|
|
|
Other noncurrent
liabilities
|
|
6,250
|
|
|
6,196
|
|
|
Total
liabilities
|
|
45,569
|
|
|
44,672
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Common stock, $1 par
value per share
|
|
276
|
|
|
279
|
|
|
Additional paid-in
capital
|
|
122
|
|
|
221
|
|
|
Retained
earnings
|
|
21,961
|
|
|
21,636
|
|
|
Accumulated other
comprehensive loss
|
|
(15,837)
|
|
|
(16,121)
|
|
|
Total stockholders'
equity
|
|
6,522
|
|
|
6,015
|
|
|
Noncontrolling
interests in subsidiary
|
|
8
|
|
|
23
|
|
|
Total
equity
|
|
6,530
|
|
|
6,038
|
|
|
Total liabilities and
equity
|
|
$
|
52,099
|
|
|
$
|
50,710
|
|
|
|
|
|
|
|
Lockheed Martin
Corporation
|
Consolidated
Statements of Cash Flows
|
(unaudited;
in millions)
|
|
|
|
Six Months
Ended
|
|
|
June
27,
2021
|
|
June
28,
2020
|
Operating
activities
|
|
|
|
|
Net
earnings
|
|
$
|
3,652
|
|
|
$
|
3,343
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
670
|
|
|
608
|
|
Stock-based
compensation
|
|
127
|
|
|
115
|
|
Equity method
investment impairment
|
|
—
|
|
|
128
|
|
Severance and
restructuring charges
|
|
36
|
|
|
—
|
|
Changes in assets and
liabilities
|
|
|
|
|
Receivables,
net
|
|
(633)
|
|
|
(498)
|
|
Contract
assets
|
|
(1,880)
|
|
|
(727)
|
|
Inventories
|
|
426
|
|
|
98
|
|
Accounts
payable
|
|
743
|
|
|
191
|
|
Contract
liabilities
|
|
(166)
|
|
|
427
|
|
Postretirement benefit
plans
|
|
(133)
|
|
|
(77)
|
|
Income
taxes
|
|
33
|
|
|
473
|
|
Other, net
|
|
141
|
|
|
415
|
|
Net cash provided
by operating activities
|
|
3,016
|
|
|
4,496
|
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
|
(599)
|
|
|
(636)
|
|
Other, net
|
|
210
|
|
|
4
|
|
Net cash used for
investing activities
|
|
(389)
|
|
|
(632)
|
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Dividends
paid
|
|
(1,460)
|
|
|
(1,364)
|
|
Repurchases of common
stock
|
|
(1,500)
|
|
|
(1,015)
|
|
Issuance of long-term
debt, net of related costs
|
|
—
|
|
|
1,131
|
|
Repayments of current
and long-term debt
|
|
—
|
|
|
(1,150)
|
|
Other, net
|
|
(82)
|
|
|
(125)
|
|
Net cash used for
financing activities
|
|
(3,042)
|
|
|
(2,523)
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
(415)
|
|
|
1,341
|
|
Cash and cash
equivalents at beginning of period
|
|
3,160
|
|
|
1,514
|
|
Cash and cash
equivalents at end of period
|
|
$
|
2,745
|
|
|
$
|
2,855
|
|
|
|
|
|
|
Lockheed Martin
Corporation
|
Consolidated
Statement of Equity
|
(unaudited;
in millions)
|
|
|
|
|
Common
Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total
Stockholders'
Equity
|
|
Noncontrolling
Interests
in
Subsidiary
|
|
Total
Equity
|
|
Balance at Dec.
31, 2020
|
|
$
|
279
|
|
|
$
|
221
|
|
|
$
|
21,636
|
|
|
$
|
(16,121)
|
|
|
$
|
6,015
|
|
|
$
|
23
|
|
|
$
|
6,038
|
|
|
Net
earnings
|
|
—
|
|
|
—
|
|
|
3,652
|
|
|
—
|
|
|
3,652
|
|
|
—
|
|
|
3,652
|
|
|
Other comprehensive
income, net of tax1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
284
|
|
|
284
|
|
|
—
|
|
|
284
|
|
|
Dividends
declared2
|
|
—
|
|
|
—
|
|
|
(2,179)
|
|
|
—
|
|
|
(2,179)
|
|
|
—
|
|
|
(2,179)
|
|
|
Repurchases of common
stock
|
|
(4)
|
|
|
(348)
|
|
|
(1,148)
|
|
|
—
|
|
|
(1,500)
|
|
|
—
|
|
|
(1,500)
|
|
|
Stock-based awards,
ESOP activity and other
|
|
1
|
|
|
249
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|
Net decrease in
noncontrolling interests in subsidiary
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15)
|
|
|
(15)
|
|
|
Balance at June
27, 2021
|
|
$
|
276
|
|
|
$
|
122
|
|
|
$
|
21,961
|
|
|
$
|
(15,837)
|
|
|
$
|
6,522
|
|
|
$
|
8
|
|
|
$
|
6,530
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Primarily represents
the reclassification adjustment for the recognition of prior period
amounts related to pension and other postretirement benefit
plans.
|
2
|
Represents dividends
of $2.60 per share declared for each of the first, second and third
quarters of 2021. In the second quarter, the company declared the
second and third quarter dividends. However, the third quarter
dividend will be paid in Sept. 2021.
|
Lockheed Martin
Corporation
|
Other Financial
and Operating Information
|
(unaudited;
in millions, except for aircraft deliveries and
weeks)
|
|
|
Backlog
|
|
June 27,
2021
|
|
Dec.
31,
2020
|
|
Aeronautics
|
|
$
|
50,296
|
|
|
$
|
56,551
|
|
|
Missiles and Fire
Control
|
|
29,285
|
|
|
29,183
|
|
|
Rotary and Mission
Systems
|
|
35,329
|
|
|
36,249
|
|
|
Space
|
|
26,754
|
|
|
25,148
|
|
|
Total
backlog
|
|
$
|
141,664
|
|
|
$
|
147,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Six Months
Ended
|
|
Aircraft
Deliveries
|
|
June 27,
2021
|
|
June 28,
2020
|
|
June
27,
2021
|
|
June
28,
2020
|
|
F-35
|
|
37
|
|
|
25
|
|
|
54
|
|
|
47
|
|
|
C-130J
|
|
6
|
|
|
5
|
|
|
8
|
|
|
8
|
|
|
Government helicopter
programs
|
|
20
|
|
|
16
|
|
|
35
|
|
|
29
|
|
|
Commercial helicopter
programs
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
International
military helicopter programs
|
|
7
|
|
|
2
|
|
|
8
|
|
|
4
|
|
|
|
|
Number of Weeks in
Reporting Period1
|
|
2021
|
|
2020
|
|
First
quarter
|
|
12
|
|
|
13
|
|
|
Second
quarter
|
|
13
|
|
|
13
|
|
|
Third
quarter
|
|
13
|
|
|
13
|
|
|
Fourth
quarter
|
|
14
|
|
|
13
|
|
|
|
|
|
|
|
1
|
The company closes
its books and records on the last Sunday of each month, except for
the month of December, as our fiscal year ends on
Dec. 31. As a result, quarters are typically 13 weeks in length but
the number of weeks in a reporting period may vary slightly during
the year
and for comparable prior year periods.
|
View original
content:https://www.prnewswire.com/news-releases/lockheed-martin-reports-second-quarter-2021-results-301340625.html
SOURCE Lockheed Martin