BETHESDA, Md., Oct. 21, 2014 /PRNewswire/ -- Lockheed
Martin Corporation (NYSE: LMT) today reported third quarter 2014
net sales of $11.1 billion compared
to $11.3 billion in the third quarter
of 2013. Net earnings from continuing operations in the third
quarter of 2014 were $888 million, or
$2.76 per diluted share, compared to
$842 million, or $2.57 per diluted share, in the third quarter of
2013. Cash from operations in the third quarter of 2014 was
$990 million, compared to
$900 million in the third quarter of
2013.
Third quarter 2014 net earnings include FAS/CAS pension income
of $84 million, which increased net
earnings by $52 million, or
$0.16 per diluted share. FAS/CAS
pension income reflects an approximate $55
million reduction in CAS pension costs due to the enactment
of The Highway and Transportation Funding Act of 2014 (HATFA),
which lowered earnings by $35
million, or $0.11 per diluted
share. Third quarter 2013 net earnings include FAS/CAS pension
expense of $121 million, which
reduced net earnings by $75 million,
or $0.23 per diluted share.
"Although we continue to face global economic challenges, our
program and operational performance this quarter resulted in
increased earnings per share and strong cash generation," said
Chairman, President and CEO Marillyn
Hewson. "As we look ahead to 2015, we will remain focused on
delivering for our customers, returning value to our shareholders,
advancing our technologies and investing in our people."
Summary Financial Results
The following table presents the Corporation's summary financial
results prepared in accordance with U.S. generally accepted
accounting principles (GAAP).
|
(in millions, except
per share data)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
$
|
11,114
|
|
|
$
|
11,347
|
|
|
$
|
33,070
|
|
|
$
|
33,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit
|
|
$
|
1,346
|
|
|
$
|
1,455
|
|
|
$
|
4,181
|
|
|
$
|
4,331
|
|
|
|
Unallocated,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS pension income
(expense)1
|
|
|
84
|
|
|
|
(121)
|
|
|
|
255
|
|
|
|
(362)
|
|
|
|
Other, net
|
|
|
(38)
|
|
|
|
(80)
|
|
|
|
(186)
|
|
|
|
(298)
|
|
|
|
Total unallocated,
net
|
|
|
46
|
|
|
|
(201)
|
|
|
|
69
|
|
|
|
(660)
|
|
|
|
Consolidated
operating profit
|
|
$
|
1,392
|
|
|
$
|
1,254
|
|
|
$
|
4,250
|
|
|
$
|
3,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
888
|
|
|
$
|
842
|
|
|
$
|
2,710
|
|
|
$
|
2,462
|
|
|
|
Discontinued operations2
|
|
|
–
|
|
|
|
31
|
|
|
|
–
|
|
|
|
31
|
|
|
|
Net
earnings
|
|
$
|
888
|
|
|
$
|
873
|
|
|
$
|
2,710
|
|
|
$
|
2,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
2.76
|
|
|
$
|
2.57
|
|
|
$
|
8.39
|
|
|
$
|
7.54
|
|
|
|
Discontinued operations2
|
|
|
–
|
|
|
|
0.09
|
|
|
|
–
|
|
|
|
0.09
|
|
|
|
Diluted earnings
per share
|
|
$
|
2.76
|
|
|
$
|
2.66
|
|
|
$
|
8.39
|
|
|
$
|
7.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from
operations3
|
|
$
|
990
|
|
|
$
|
900
|
|
|
$
|
4,067
|
|
|
$
|
3,608
|
|
|
|
1 FAS/CAS pension income reflects both lower FAS
pension expense and CAS pension costs for the third quarter of 2014
compared to the
same period in 2013. FAS pension
expense is lower due to higher discount rates used to calculate the
Corporation's qualified defined
benefit obligations and net periodic
benefit cost and the impacts of the June 2014 plan amendments to
certain of its defined benefit plans.
CAS pension cost is lower due to the
effect of using a higher interest rate required by the HATFA. The
HATFA was enacted on Aug. 8, 2014 and
extends the methodology in the Moving
Ahead for Progress in the 21st Century Act of 2012 (MAP-21) to
calculate the interest rate
assumption. The effect of adopting
the HATFA reduced the Corporation's CAS pension cost by
approximately $55 million (including about
$35 million related to the first six
months of 2014) in the third quarter of 2014.
2 Discontinued operations for the third quarter
and first nine months of 2013 include a benefit resulting from the
resolution of certain tax
matters related to a business sold
prior to 2013.
3 The Corporation made contributions to its
defined benefit pension trust of $485 million and $1.0 billion
during the third quarter and first nine
months of 2014, respectively,
compared to $750 million and $1.5 billion during the third quarter
and first nine months of 2013, respectively.
Additionally, the Corporation made
net tax payments of $451 million and $1.0 billion during the third
quarter and first nine months of 2014,
respectively, compared to $247
million and $387 million during the third quarter and first nine
months of 2013, respectively.
|
|
2014 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, changes in law and
restructuring activities (including special items) 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 contained in this news
release.
|
(in millions, except
per share data)
|
|
Current
Update
|
|
July
2014
|
|
|
|
|
|
|
|
|
|
Orders
|
|
$41,500 –
$43,000
|
|
$41,500 –
$43,000
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
~$45,000
|
|
$44,000 –
$45,500
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit
|
|
~$5,500
|
|
$5,375 –
$5,525
|
|
|
FAS/CAS
pension income1
|
~375
|
|
~445
|
|
|
Other,
net
|
~(275)
|
|
~(345)
|
|
|
Consolidated
operating profit
|
|
~$5,600
|
|
$5,475 –
$5,625
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
|
~$11.15
|
|
$10.85 –
$11.15
|
|
|
|
|
|
|
|
|
|
Cash from
operations2
|
|
>/= $3,800
|
|
>/= $4,800
|
|
|
1 FAS/CAS pension income in the Current Update
reflects lower CAS pension cost of approximately $70
million due to the effect of using a
higher interest rate required by the HATFA, of which about $55
million
was recognized in the third quarter
of 2014.
2 Cash from operations in the Current Update
includes the effect of $1.0 billion of incremental pension
contributions anticipated in the fourth
quarter of 2014.
|
|
2015 Financial Trends
The Corporation expects 2015 net sales will decline at a low
single digit rate from 2014 levels and that total business segment
operating margin will be in the 11.5 percent to 12.0 percent range.
The Corporation's preliminary outlook for 2015 assumes the U.S.
Government continues to support and fund its key programs,
consistent with the continuing resolution funding measure through
Dec. 11, 2014, and the U.S.
Government approves budget legislation for government fiscal year
(GFY) 2015 consistent with the President's proposed budget. Changes
in circumstances may require the Corporation to revise its
assumptions, which could materially change its current estimate of
2015 net sales and operating margin.
The Corporation expects 2015 FAS/CAS pension income of
approximately $650 million assuming a
4.25 percent discount rate at the end of 2014, the same rate used
for the re-measurement of its defined benefit pension obligations
in June 2014, an 8.00 percent actual
return on plan assets in 2014, and incremental pension
contributions of $1.0 billion
anticipated in the fourth quarter of 2014, among other
assumptions. The Corporation does not expect to make contributions
to its qualified defined benefit pension plans in 2015 through
2017. A change of plus or minus 25 basis points to the assumed
discount rate, with all other assumptions held constant, would
result in an incremental increase or decrease of approximately
$120 million to the estimated 2015
FAS/CAS pension income. The Corporation will finalize the
postretirement benefit plan assumptions and determine the 2014
actual return on plan assets on Dec. 31,
2014. The final assumptions and actual investment returns
for 2014 may differ materially from those discussed above.
Cash Deployment Activities
The Corporation's cash deployment activities in the third
quarters of 2014 and 2013 consisted of the following:
- repurchasing 2.6 million shares for $446
million during the third quarter of 2014, compared to 4.9
million shares for $607 million
during the third quarter of 2013;
- paying cash dividends of $421
million during the third quarter of 2014, compared to
$370 million during the third quarter
of 2013;
- making contributions to its pension trust of $485 million during the third quarter of 2014,
compared to $750 million during the
third quarter of 2013;
- paying $450 million for
acquisitions of businesses and investments in affiliates during the
third quarter of 2014, compared to $203
million during the third quarter of 2013; and
- making capital expenditures of $203
million during the third quarter of 2014, compared to
$209 million during the third quarter
of 2013.
On Sept. 25, 2014, the Board of
Directors approved a $2.0 billion
increase to the Corporation's share repurchase program. Inclusive
of this increase, the total remaining authorization for future
common share repurchases under the program was $3.9 billion as of Sept.
28, 2014. The Corporation anticipates at least $2.0 billion of share repurchases in 2015,
subject to market conditions and management's discretion.
On Sept. 25, 2014, the Corporation
increased its quarterly dividend 13 percent, or $0.17 per share, to $1.50 per share beginning with the payment to be
made on Dec. 26, 2014 to stockholders
of record as of the close of business on Dec. 1, 2014.
Segment Results
The Corporation operates in five business segments: Aeronautics,
Information Systems & Global Solutions (IS&GS), Missiles
and Fire Control (MFC), Mission Systems and Training (MST) and
Space Systems. The Corporation organizes its business segments
based on the nature of the products and services offered.
Operating profit for the business segments includes the
Corporation's share of earnings or losses from equity method
investees because 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 GAAP (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 goodwill 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 margins may be impacted 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 margins 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 and insurance recoveries.
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; and significant asset impairments. Segment operating
profit and items such as risk retirements, reductions of profit
booking rates or other matters are presented net of state income
taxes.
The following table presents summary operating results of the
Corporation's five business segments and reconciles these amounts
to the Corporation's consolidated financial results.
|
(in
millions)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
3,544
|
|
|
$
|
3,632
|
|
|
$
|
10,785
|
|
|
$
|
10,225
|
|
|
|
Information Systems
& Global Solutions
|
|
|
1,949
|
|
|
|
2,059
|
|
|
|
5,800
|
|
|
|
6,266
|
|
|
|
Missiles and Fire
Control
|
|
|
1,908
|
|
|
|
2,003
|
|
|
|
5,666
|
|
|
|
6,034
|
|
|
|
Mission Systems and
Training
|
|
|
1,679
|
|
|
|
1,698
|
|
|
|
5,078
|
|
|
|
5,298
|
|
|
|
Space
Systems
|
|
|
2,034
|
|
|
|
1,955
|
|
|
|
5,741
|
|
|
|
6,002
|
|
|
|
Total net
sales
|
|
$
|
11,114
|
|
|
$
|
11,347
|
|
|
$
|
33,070
|
|
|
$
|
33,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
|
362
|
|
|
$
|
412
|
|
|
$
|
1,208
|
|
|
$
|
1,198
|
|
|
|
Information Systems
& Global Solutions
|
|
|
175
|
|
|
|
187
|
|
|
|
524
|
|
|
|
570
|
|
|
|
Missiles and Fire
Control
|
|
|
335
|
|
|
|
356
|
|
|
|
1,038
|
|
|
|
1,081
|
|
|
|
Mission Systems and
Training
|
|
|
193
|
|
|
|
216
|
|
|
|
628
|
|
|
|
692
|
|
|
|
Space
Systems
|
|
|
281
|
|
|
|
284
|
|
|
|
783
|
|
|
|
790
|
|
|
|
Total business segment
operating profit
|
|
|
1,346
|
|
|
|
1,455
|
|
|
|
4,181
|
|
|
|
4,331
|
|
|
|
Unallocated,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS pension
adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS
pension expense
|
|
|
(258)
|
|
|
|
(487)
|
|
|
|
(885)
|
|
|
|
(1,461)
|
|
|
|
Less: CAS
pension cost
|
|
|
342
|
|
|
|
366
|
|
|
|
1,140
|
|
|
|
1,099
|
|
|
|
FAS/CAS pension income
(expense)
|
|
|
84
|
|
|
|
(121)
|
|
|
|
255
|
|
|
|
(362)
|
|
|
|
Special item -
Severance charges
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
(30)
|
|
|
|
Stock-based
compensation
|
|
|
(31)
|
|
|
|
(38)
|
|
|
|
(128)
|
|
|
|
(150)
|
|
|
|
Other, net
|
|
|
(7)
|
|
|
|
(42)
|
|
|
|
(58)
|
|
|
|
(118)
|
|
|
|
Total unallocated,
net
|
|
|
46
|
|
|
|
(201)
|
|
|
|
69
|
|
|
|
(660)
|
|
|
|
Total consolidated
operating profit
|
|
$
|
1,392
|
|
|
$
|
1,254
|
|
|
$
|
4,250
|
|
|
$
|
3,671
|
|
|
|
|
|
The Corporation's consolidated net adjustments not related to
volume, including net profit booking rate adjustments and other
items, represented approximately 30 percent of total segment
operating profit in the third quarter of 2014 compared to
approximately 35 percent of total segment operating profit in the
third quarter of 2013.
Aeronautics
|
(in
millions)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
$
|
3,544
|
|
|
$
|
3,632
|
|
|
$
|
10,785
|
|
|
$
|
10,225
|
|
|
|
Operating
profit
|
|
$
|
362
|
|
|
$
|
412
|
|
|
$
|
1,208
|
|
|
$
|
1,198
|
|
|
|
Operating
margins
|
|
|
10.2
|
%
|
|
|
11.3
|
%
|
|
|
11.2
|
%
|
|
|
11.7
|
%
|
|
Aeronautics' net sales for the third quarter of 2014 decreased
$88 million, or 2 percent, compared
to the same period in 2013. The decrease was primarily attributable
to lower net sales of approximately $225
million for the C-130 program due to fewer deliveries (five
aircraft delivered in the third quarter of 2014 compared to eight
delivered in the same period of 2013) and lower sustainment
activities; about $80 million for the
F-35 development contract due to lower volume; and approximately
$30 million for other sustainment
activities due to lower volume. The decreases were partially offset
by higher net sales of approximately $130
million for F-35 production contracts due to increased
volume, partially offset by lower risk retirements; and
approximately $115 million for
various other programs due to increased volume.
Aeronautics' operating profit for the third quarter of 2014
decreased $50 million, or 12 percent,
compared to the same period in 2013. The decrease was primarily
attributable to lower operating profit of approximately
$50 million for the C-130 program due
to lower risk retirements and fewer aircraft deliveries; about
$40 million for other sustainment
activities due to lower risk retirements and lower volume; and
approximately $30 million due to
reserves recorded for contractual matters. The decreases were
partially offset by higher operating profit of about $35 million for the C-5 program due to the
absence in the third quarter of 2014 of the downward revision in
the profit booking rate that occurred in the third quarter of 2013;
and approximately $40 million for
various other programs and equity earnings from a joint venture.
Operating profit was comparable for the F-35 development contract.
Operating profit was comparable for F-35 production contracts due
to increased volume offset by lower risk retirements. Adjustments
not related to volume, including net profit booking rate
adjustments and other matters, were approximately $65 million lower for the third quarter of 2014
compared to the same period in 2013.
Information Systems & Global Solutions
|
(in
millions)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
$
|
1,949
|
|
|
$
|
2,059
|
|
|
$
|
5,800
|
|
|
$
|
6,266
|
|
|
|
Operating
profit
|
|
$
|
175
|
|
|
$
|
187
|
|
|
$
|
524
|
|
|
$
|
570
|
|
|
|
Operating
margins
|
|
|
9.0
|
%
|
|
|
9.1
|
%
|
|
|
9.0
|
%
|
|
|
9.1
|
%
|
|
IS&GS' net sales for the third quarter of 2014 decreased
$110 million, or 5 percent, compared
to the same period in 2013. The decrease was primarily attributable
to lower net sales of approximately $150
million due to the wind-down or completion of certain
programs (primarily command and control programs); and about
$60 million due to a decline in
volume for various programs, which reflects lower funding levels
and programs impacted by in-theater force reductions. The decreases
were partially offset by higher net sales of about $100 million due to the start-up of new programs,
growth in recently awarded programs and integration of recently
acquired companies.
IS&GS' operating profit for the third quarter of 2014
decreased $12 million, or 6 percent,
compared to the same period in 2013. The decrease was primarily
attributable to the activities mentioned above for sales.
Adjustments not related to volume, including net profit booking
rate adjustments, for the third quarter of 2014 were comparable to
the same period in 2013.
Missiles and Fire Control
|
(in
millions)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
$
|
1,908
|
|
|
$
|
2,003
|
|
|
$
|
5,666
|
|
|
$
|
6,034
|
|
|
|
Operating
profit
|
|
$
|
335
|
|
|
$
|
356
|
|
|
$
|
1,038
|
|
|
$
|
1,081
|
|
|
|
Operating
margins
|
|
|
17.6
|
%
|
|
|
17.8
|
%
|
|
|
18.3
|
%
|
|
|
17.9
|
%
|
|
MFC's net sales for the third quarter of 2014 decreased
$95 million, or 5 percent, compared
to the same period in 2013. The decrease was primarily attributable
to lower net sales of approximately $95
million for various technical services programs due to lower
volume reflecting market pressures; and about $70 million for tactical missile programs due to
fewer missile and launcher deliveries (including the Guided
Multiple Launch Rocket System). The decreases were partially offset
by higher net sales of about $60
million for various programs due to increased volume. Net
sales for air and missile defense programs were comparable as
increased volume for Terminal High-Altitude Area Defense was offset
by fewer deliveries for the Patriot Advanced Capability-3
program.
MFC's operating profit for the third quarter of 2014 decreased
$21 million, or 6 percent, compared
to the same period in 2013. The decrease was primarily attributable
to lower operating profit of approximately $20 million for various technical services
programs due to lower volume and reserves recorded on certain
programs. Adjustments not related to volume, including net profit
booking rate adjustments and other matters, were approximately
$15 million lower for the third
quarter of 2014 compared to the same period in 2013.
Mission Systems and Training
|
(in
millions)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
$
|
1,679
|
|
|
$
|
1,698
|
|
|
$
|
5,078
|
|
|
$
|
5,298
|
|
|
|
Operating
profit
|
|
$
|
193
|
|
|
$
|
216
|
|
|
$
|
628
|
|
|
$
|
692
|
|
|
|
Operating
margins
|
|
|
11.5
|
%
|
|
|
12.7
|
%
|
|
|
12.4
|
%
|
|
|
13.1
|
%
|
|
MST's net sales for the third quarter of 2014 decreased
$19 million, or 1 percent, compared
to the same period in 2013. The decrease was primarily attributable
to lower net sales of approximately $30
million for ship and aviation systems programs due to lower
volume (primarily the Merlin Capability Sustainment Program). The
decrease was partially offset by higher net sales of approximately
$25 million for undersea systems
programs due to higher volume.
MST's operating profit for the third quarter of 2014 decreased
$23 million, or 11 percent, compared
to the same period in 2013. The decrease was primarily attributable
to lower operating profit of approximately $35 million for integrated warfare systems and
sensor programs due to lower risk retirements (primarily radar
surveillance programs). Adjustments not related to volume,
including net profit booking rate adjustments, were approximately
$20 million lower for the third
quarter of 2014 compared to the same period in 2013.
Space Systems
|
(in
millions)
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
|
Sept. 29,
2013
|
|
|
|
Net
sales
|
|
$
|
2,034
|
|
|
$
|
1,955
|
|
|
$
|
5,741
|
|
|
$
|
6,002
|
|
|
|
Operating
profit
|
|
$
|
281
|
|
|
$
|
284
|
|
|
$
|
783
|
|
|
$
|
790
|
|
|
|
Operating
margins
|
|
|
13.8
|
%
|
|
|
14.5
|
%
|
|
|
13.6
|
%
|
|
|
13.2
|
%
|
|
Space Systems' net sales for the third quarter of 2014 increased
$79 million, or 4 percent, compared
to the same period in 2013. The increase was primarily attributable
to higher net sales of approximately $145
million for commercial space transportation programs due to
launch-related activities; and about $70
million for the Orion program due to increased volume. The
increases were partially offset by lower net sales of approximately
$140 million for government satellite
programs due to lower volume (primarily the Advanced Extremely High
Frequency (AEHF) program).
Space Systems' operating profit for the third quarter of 2014
was comparable to the same period in 2013. Operating profit
decreased by approximately $30
million for government satellite programs due to lower
volume and risk retirements (primarily AEHF). Operating profit
increased by approximately $20
million due to higher equity earnings for joint ventures.
Adjustments not related to volume, including net profit booking
rate adjustments, were approximately $15
million lower for the third quarter of 2014 compared to the
same period in 2013.
Total equity earnings (primarily ULA) recognized by Space
Systems represented approximately $90
million, or 32 percent, of this business segment's operating
profit for the third quarter of 2014, compared to approximately
$70 million, or 25 percent, for the
third quarter of 2013.
Income Taxes
The Corporation's effective income tax rates were 32.3 percent
and 28.2 percent for the third quarter of 2014 and 2013,
respectively. 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 effective tax rate for the third
quarter of 2014 was higher primarily due to the benefit of research
and development tax credits recognized in the third quarter of
2013. The credit expired on Dec. 31,
2013 and, therefore, will not be recognized in 2014 unless
and until legislation is enacted.
About Lockheed Martin
Headquartered in Bethesda,
Maryland, Lockheed Martin is a global security and aerospace
company that employs approximately 113,000 people worldwide
and is principally engaged in the research, design, development,
manufacture, integration and sustainment of advanced technology
systems, products and services. The Corporation's net sales for
2013 were $45.4 billion.
Website: www.lockheedmartin.com
Conference Call Information
Lockheed Martin will webcast the earnings conference call
(listen-only mode) at 11:00 a.m. ET
on Oct. 21, 2014. A live audio
broadcast, including relevant charts, will be available on the
Investor Relations page of the Corporation's website at:
www.lockheedmartin.com/investor.
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 availability of funding for the Corporation's products and
services both domestically and internationally due to general
economic conditions, performance, cost or other factors;
- the Corporation's dependence on U.S. Government contracts
(e.g., the F-35 program);
- changes in domestic and international customer priorities and
requirements (including declining budgets resulting from general
economic conditions; affordability initiatives; the potential for
deferral or termination of awards; the implementation of automatic
sequestration under the Budget Control Act of 2011 or Congressional
actions intended to replace sequestration; U.S. Government
operations under a continuing resolution; or any future shutdown of
U.S. Government operations) and the success of the Corporation's
strategy to mitigate some of these risks by focusing on expanding
into adjacent markets close to the Corporation's core capabilities
and growing international sales;
- lower demand for the Corporation's services due to improved
product field performance requiring less service support; lower
in-theater support as troop levels are drawn down; and increased
re-competition coupled with the fragmentation of large contracts
into multiple smaller contracts that are awarded primarily on the
basis of price;
- the accuracy of the Corporation's estimates and assumptions
including those as to schedule, cost, technical and performance
issues under its contracts, cash flow, actual returns (or losses)
on pension plan assets, movements in interest rates and other
changes that may affect pension plan assumptions;
- the ability to implement, pace and effect capitalization
changes such as share repurchase activity and accelerated pension
funding, and the effect of stock option exercises or debt
levels;
- difficulties in developing and producing operationally advanced
technology systems, cyber security or other security threats,
information technology failures, natural disasters, public health
crises or other disruptions;
- the timing and customer acceptance of product deliveries;
- materials availability and the performance of key suppliers,
teammates, venture partners, subcontractors and customers;
- charges from any future impairment reviews that may result in
the recognition of losses and a reduction in the book value of
goodwill or other long-term assets;
- the future effect of legislation, rulemaking and changes in
accounting, tax, defense procurement, changes in policy,
interpretations, or challenges to the allowability and recovery of
costs incurred under government cost accounting standards, export
policy, changes in contracting policy and contract mix;
- the future impact of acquisitions or divestitures, ventures,
teaming arrangements or internal reorganizations;
- compliance with laws and regulations, the outcome of legal
proceedings and other contingencies (including lawsuits, government
investigations or audits, and the cost of completing environmental
remediation efforts), and U.S. Government identification of
deficiencies in the Corporation's business systems;
- the competitive environment for the Corporation's products and
services, export policies, and potential for delays in procurement
due to bid protests;
- the Corporation's efforts to increase the efficiency of its
operations and improve the affordability of its products and
services including difficulties associated with moving or
consolidating operations; providing for the orderly transition of
management; attracting and retaining key personnel or the transfer
of critical knowledge to the extent the Corporation loses key
personnel through wage competition, normal attrition (including
retirement) and specific actions such as workforce reductions; and
supply chain management; and
- economic, business and political conditions domestically and
internationally (including potential impacts resulting from the
continuing tension between the international community and
Russia over Ukraine) and the Corporation's increased
reliance on securing international and adjacent business.
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
the 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, 2013 and its
2014 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, the 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
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
11,114
|
|
$
11,347
|
|
$
33,070
|
|
$
33,825
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
(9,839)
|
|
(10,163)
|
|
(29,083)
|
|
(30,376)
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,275
|
|
1,184
|
|
3,987
|
|
3,449
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
117
|
|
70
|
|
263
|
|
222
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
1,392
|
|
1,254
|
|
4,250
|
|
3,671
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(82)
|
|
(84)
|
|
(253)
|
|
(264)
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating
income, net
|
|
1
|
|
3
|
|
3
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
1,311
|
|
1,173
|
|
4,000
|
|
3,409
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(423)
|
|
(331)
|
|
(1,290)
|
|
(947)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
|
888
|
|
842
|
|
2,710
|
|
2,462
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
discontinued operations2
|
|
-
|
|
31
|
|
-
|
|
31
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
888
|
|
$
873
|
|
$
2,710
|
|
$
2,493
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
32.3
|
%
|
28.2
|
%
|
32.3
|
%
|
27.8
|
%
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.81
|
|
$
2.62
|
|
$
8.54
|
|
$
7.66
|
|
Discontinued
operations2
|
|
-
|
|
0.10
|
|
-
|
|
0.10
|
|
Basic
earnings per common share
|
|
$
2.81
|
|
$
2.72
|
|
$
8.54
|
|
$
7.76
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
2.76
|
|
$
2.57
|
|
$
8.39
|
|
$
7.54
|
|
Discontinued
operations2
|
|
-
|
|
0.09
|
|
-
|
|
0.09
|
|
Diluted
earnings per common share
|
|
$
2.76
|
|
$
2.66
|
|
$
8.39
|
|
$
7.63
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
316.3
|
|
321.3
|
|
317.4
|
|
321.3
|
|
Diluted
|
|
321.8
|
|
327.5
|
|
323.0
|
|
326.6
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
reported in stockholders' equity at end of period
|
|
|
|
|
|
314
|
|
318
|
|
1
|
The Corporation
closes its books and records on the last Sunday of the calendar
quarter, which was on Sept. 28 for the third quarter of 2014 and
Sept. 29 for the third quarter of 2013, to align its financial
closing with its business processes. 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 Corporation's fiscal year ends on Dec.
31.
|
|
|
2
|
Discontinued
operations for the third quarter and first nine months of 2013
include a benefit resulting from the resolution of certain tax
matters related to a business sold prior to 2013.
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment
Summary Operating Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
|
|
%
Change
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
|
|
%
Change
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$ 3,544
|
|
$ 3,632
|
|
|
(2)
|
%
|
|
$ 10,785
|
|
$ 10,225
|
|
|
5
|
%
|
Information
Systems & Global Solutions
|
|
1,949
|
|
2,059
|
|
|
(5)
|
%
|
|
5,800
|
|
6,266
|
|
|
(7)
|
%
|
Missiles and
Fire Control
|
|
1,908
|
|
2,003
|
|
|
(5)
|
%
|
|
5,666
|
|
6,034
|
|
|
(6)
|
%
|
Mission
Systems and Training
|
|
1,679
|
|
1,698
|
|
|
(1)
|
%
|
|
5,078
|
|
5,298
|
|
|
(4)
|
%
|
Space
Systems
|
|
2,034
|
|
1,955
|
|
|
4
|
%
|
|
5,741
|
|
6,002
|
|
|
(4)
|
%
|
Total net
sales
|
|
$ 11,114
|
|
$ 11,347
|
|
|
(2)
|
%
|
|
$ 33,070
|
|
$ 33,825
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
362
|
|
$ 412
|
|
|
(12)
|
%
|
|
$ 1,208
|
|
$ 1,198
|
|
|
1
|
%
|
Information
Systems & Global Solutions
|
|
175
|
|
187
|
|
|
(6)
|
%
|
|
524
|
|
570
|
|
|
(8)
|
%
|
Missiles and
Fire Control
|
|
335
|
|
356
|
|
|
(6)
|
%
|
|
1,038
|
|
1,081
|
|
|
(4)
|
%
|
Mission
Systems and Training
|
|
193
|
|
216
|
|
|
(11)
|
%
|
|
628
|
|
692
|
|
|
(9)
|
%
|
Space
Systems
|
|
281
|
|
284
|
|
|
(1)
|
%
|
|
783
|
|
790
|
|
|
(1)
|
%
|
Total business segment
operating profit
|
1,346
|
|
1,455
|
|
|
(7)
|
%
|
|
4,181
|
|
4,331
|
|
|
(3)
|
%
|
Unallocated,
net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS
pension adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS pension
expense
|
|
(258)
|
|
(487)
|
|
|
|
|
|
(885)
|
|
(1,461)
|
|
|
|
|
Less: CAS pension
cost
|
|
342
|
|
366
|
|
|
|
|
|
1,140
|
|
1,099
|
|
|
|
|
FAS/CAS
pension income (expense)
|
|
84
|
|
(121)
|
|
|
|
|
|
255
|
|
(362)
|
|
|
|
|
Special item -
severance charges
|
|
-
|
|
-
|
|
|
|
|
|
-
|
|
(30)
|
|
|
|
|
Stock-based
compensation
|
|
(31)
|
|
(38)
|
|
|
|
|
|
(128)
|
|
(150)
|
|
|
|
|
Other,
net
|
|
(7)
|
|
(42)
|
|
|
|
|
|
(58)
|
|
(118)
|
|
|
|
|
Total unallocated,
net
|
|
46
|
|
(201)
|
|
|
N/M
|
|
|
69
|
|
(660)
|
|
|
N/M
|
|
Total consolidated
operating profit
|
|
$ 1,392
|
|
$ 1,254
|
|
|
11
|
%
|
|
$ 4,250
|
|
$ 3,671
|
|
|
16
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margins
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
10.2
|
%
|
11.3
|
%
|
|
|
|
|
11.2
|
%
|
11.7
|
%
|
|
|
|
Information
Systems & Global Solutions
|
|
9.0
|
%
|
9.1
|
%
|
|
|
|
|
9.0
|
%
|
9.1
|
%
|
|
|
|
Missiles and
Fire Control
|
|
17.6
|
%
|
17.8
|
%
|
|
|
|
|
18.3
|
%
|
17.9
|
%
|
|
|
|
Mission
Systems and Training
|
|
11.5
|
%
|
12.7
|
%
|
|
|
|
|
12.4
|
%
|
13.1
|
%
|
|
|
|
Space
Systems
|
|
13.8
|
%
|
14.5
|
%
|
|
|
|
|
13.6
|
%
|
13.2
|
%
|
|
|
|
Total business segment
operating margins
|
12.1
|
%
|
12.8
|
%
|
|
|
|
|
12.6
|
%
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
operating margins
|
|
12.5
|
%
|
11.1
|
%
|
|
|
|
|
12.9
|
%
|
10.9
|
%
|
|
|
|
Lockheed Martin
Corporation
|
|
|
|
|
Consolidated
Balance Sheets
|
|
|
|
|
(unaudited; in
millions, except par value)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept. 28,
2014
|
|
Dec. 31,
2013
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,963
|
|
$
2,617
|
Receivables,
net
|
|
6,081
|
|
5,834
|
Inventories,
net
|
|
2,898
|
|
2,977
|
Deferred
income taxes
|
|
1,183
|
|
1,088
|
Other current
assets
|
|
559
|
|
813
|
Total current assets
|
|
13,684
|
|
13,329
|
|
|
|
|
|
Property, plant, and
equipment, net
|
|
4,590
|
|
4,706
|
Goodwill
|
|
10,774
|
|
10,348
|
Deferred income
taxes
|
|
2,954
|
|
2,850
|
Other noncurrent
assets
|
|
4,931
|
|
4,955
|
Total
assets
|
|
$
36,933
|
|
$ 36,188
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
2,000
|
|
$
1,397
|
Customer
advances and amounts in excess of costs incurred
|
5,904
|
|
6,349
|
Salaries,
benefits, and payroll taxes
|
|
1,919
|
|
1,809
|
Other current
liabilities
|
|
2,310
|
|
1,565
|
Total current
liabilities
|
|
12,133
|
|
11,120
|
|
|
|
|
|
Accrued pension
liabilities
|
|
9,556
|
|
9,361
|
Other postretirement
benefit liabilities
|
|
901
|
|
902
|
Long-term debt,
net
|
|
6,165
|
|
6,152
|
Other noncurrent
liabilities
|
|
3,604
|
|
3,735
|
Total
liabilities
|
|
32,359
|
|
31,270
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock,
$1 par value per share
|
|
314
|
|
319
|
Additional
paid-in capital
|
|
-
|
|
-
|
Retained
earnings
|
|
14,124
|
|
14,200
|
Accumulated
other comprehensive loss
|
|
(9,864)
|
|
(9,601)
|
Total stockholders'
equity
|
|
4,574
|
|
4,918
|
Total liabilities and
stockholders' equity
|
|
$
36,933
|
|
$ 36,188
|
Lockheed Martin
Corporation
|
|
|
|
Consolidated
Statements of Cash Flows
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
|
|
|
|
Operating
activities
|
|
|
|
Net
earnings
|
$
2,710
|
|
$
2,493
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
Depreciation
and amortization
|
726
|
|
704
|
Stock-based
compensation
|
128
|
|
150
|
Special item -
severance charges
|
-
|
|
30
|
Changes in
assets and liabilities
|
|
|
|
Receivables,
net
|
(231)
|
|
(310)
|
Inventories,
net
|
66
|
|
18
|
Accounts
payable
|
596
|
|
(119)
|
Customer advances and
amounts in excess of costs incurred
|
(458)
|
|
(157)
|
Postretirement benefit
plans
|
(96)
|
|
(20)
|
Income
taxes
|
270
|
|
690
|
Other,
net
|
356
|
|
129
|
Net cash provided
by operating activities1
|
4,067
|
|
3,608
|
|
|
|
|
Investing
activities
|
|
|
|
Capital
expenditures
|
(456)
|
|
(491)
|
Acquisitions of
businesses and investments in affiliates
|
(622)
|
|
(266)
|
Other, net
|
14
|
|
(27)
|
Net cash used for
investing activities
|
(1,064)
|
|
(784)
|
|
|
|
|
Financing
activities
|
|
|
|
Repurchases of common
stock
|
(1,676)
|
|
(1,533)
|
Proceeds from stock
option exercises
|
278
|
|
749
|
Dividends
paid
|
(1,286)
|
|
(1,112)
|
Repayments of long-term debt
|
-
|
|
(150)
|
Other, net
|
27
|
|
(15)
|
Net cash used for
financing activities
|
(2,657)
|
|
(2,061)
|
|
|
|
|
Net change in cash
and cash equivalents
|
346
|
|
763
|
Cash and cash
equivalents at beginning of period
|
2,617
|
|
1,898
|
Cash and cash
equivalents at end of period
|
$
2,963
|
|
$
2,661
|
1
|
The Corporation made
contributions to its defined benefit pension trust of $1.0 billion
during the first nine months of 2014,
compared to $1.5 billion during the first nine months of 2013.
Additionally, the Corporation made net tax payments of
$1.0 billion during the first nine months of 2014, compared to $387
million during the first nine months of 2013.
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
|
Consolidated
Statement of Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
Additional
|
|
|
|
Other
|
|
Total
|
|
Common
|
|
Paid-In
|
|
Retained
|
|
Comprehensive
|
|
Stockholders'
|
|
Stock
|
|
Capital
|
|
Earnings
|
|
Loss
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at Dec.
31, 2013
|
$
319
|
|
$
-
|
|
$
14,200
|
|
$
(9,601)
|
|
$
4,918
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
-
|
|
-
|
|
2,710
|
|
-
|
|
2,710
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss, net of tax1
|
-
|
|
-
|
|
-
|
|
(263)
|
|
(263)
|
|
|
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
(10)
|
|
(643)
|
|
(1,023)
|
|
-
|
|
(1,676)
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared2
|
-
|
|
-
|
|
(1,763)
|
|
-
|
|
(1,763)
|
|
|
|
|
|
|
|
|
|
|
Stock-based awards
and ESOP activity
|
5
|
|
643
|
|
-
|
|
-
|
|
648
|
|
|
|
|
|
|
|
|
|
|
Balance at Sept.
28, 2014
|
$
314
|
|
$
-
|
|
$
14,124
|
|
$
(9,864)
|
|
$
4,574
|
1
|
The Corporation
recognized a non-cash, after-tax decrease to stockholders' equity
of $735 million, as a result of the re-measurements of the assets
and benefit obligations related to substantially all of its defined
benefit pension plans in the second quarter of 2014. This decrease
primarily was due to the incorporation of the new participant
longevity assumptions (also known as mortality), a reduction in the
discount rate from 4.75% at Dec. 31, 2013 to 4.25% at the
re-measurement date, partially offset by the impact of the
amendments of certain of the Corporation's qualified and
nonqualified defined benefit pension plans for non-union employees
to freeze future retirement benefits. Partially offsetting the
re-measurement decrease was an increase of $520 million related to
the recognition of previously deferred amounts.
|
|
|
2
|
Represents dividends
of $1.33 per share declared during each of the first, second and
third quarters of 2014. Additionally, includes dividends of $1.50
per share declared in the third quarter of 2014 and payable in the
fourth quarter of 2014.
|
Lockheed Martin
Corporation
|
|
|
|
|
|
|
|
|
Operating
Data
|
|
|
|
|
|
|
|
|
|
(unaudited; in
millions, except aircraft deliveries)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog
|
|
Sept. 28,
2014
|
|
Dec. 31,
2013
|
|
|
|
|
|
Aeronautics
|
|
$
23,300
|
|
$ 28,000
|
|
|
|
|
|
Information Systems
& Global Solutions
|
8,000
|
|
8,300
|
|
|
|
|
|
Missiles and Fire
Control
|
|
12,800
|
|
15,000
|
|
|
|
|
|
Mission Systems and
Training
|
12,200
|
|
10,800
|
|
|
|
|
|
Space
Systems
|
|
20,200
|
|
20,500
|
|
|
|
|
|
Total
backlog
|
|
$
76,500
|
|
$ 82,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Aircraft
Deliveries
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
|
|
Sept. 28,
2014
|
|
Sept. 29,
2013
|
F-16
|
|
3
|
|
2
|
|
|
11
|
|
9
|
F-35
|
|
8
|
|
10
|
|
|
22
|
|
22
|
C-130J
|
|
5
|
|
8
|
|
|
16
|
|
19
|
C-5
|
|
2
|
|
1
|
|
|
6
|
|
2
|
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SOURCE Lockheed Martin