FALLS CHURCH, Va., July 26, 2017 /PRNewswire/ --
- Operating earnings up 2.8% to $1.1
billion
- Operating margin of 13.8%, a 60 basis-point improvement
- Earnings from continuing operations up 4.9% to $749 million
- Diluted earnings per share up 6.5% to $2.45
General Dynamics (NYSE: GD) today reported second-quarter 2017
diluted earnings per share (EPS) of $2.45 compared to $2.30 in the year-ago quarter, a 6.5 percent
increase. Net earnings were $749
million, on revenue of $7.7
billion.
"General Dynamics' strong second quarter performance reflects
our focus on operations and executing on our programs," said
Phebe N. Novakovic, chairman and
chief executive officer. "We are confident in our outlook for the
future, built on a solid defense backlog and continued good order
activity across the portfolio of Gulfstream business jets."
Margin
With three of the company's four business
groups expanding margins over the year-ago period, company-wide
operating margin for the second quarter of 2017 was 13.8 percent, a
60 basis-point increase when compared to 13.2 percent in
second-quarter 2016.
Cash
Net cash provided by operating activities in the
quarter totaled $477 million, up 21
percent from the year-ago quarter. Free cash flow from operations,
defined as net cash provided by operating activities less capital
expenditures, was $386 million.
Capital Deployment
The company repurchased 2.7 million
of its outstanding shares in the second quarter. Year-to-date, the
company has repurchased 4.6 million outstanding shares.
Backlog
General Dynamics' total backlog at the end of
second-quarter 2017 was $58.6
billion. There was order activity across the Gulfstream
product portfolio and strong demand for defense products, including
another quarter of a book-to-bill ratio (orders divided by revenue)
greater than one-to-one in the Information Systems and Technology
group. The estimated potential contract value, representing
management's estimate of value in unfunded indefinite delivery,
indefinite quantity (IDIQ) contracts and unexercised options, was
$24.4 billion. Total potential
contract value, the sum of all backlog components, was $83 billion at the end of the quarter.
Guidance
The company is increasing its full-year EPS
guidance from $9.50 - $9.55 to
$9.70 - $9.75.
About General Dynamics
Headquartered in Falls Church, Virginia, General Dynamics is a
global aerospace and defense company that offers a broad portfolio
of products and services in business aviation; combat vehicles,
weapons systems and munitions; C4ISR and IT solutions; and
shipbuilding. The company's 2016 revenue was $30.6 billion. More information is available at
www.generaldynamics.com.
Certain statements made in this press release, including any
statements as to future results of operations and financial
projections, may constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Forward-looking statements are based on management's
expectations, estimates, projections and assumptions. These
statements are not guarantees of future performance and involve
certain risks and uncertainties, which are difficult to predict.
Therefore, actual future results and trends may differ materially
from what is forecast in forward-looking statements due to a
variety of factors. Additional information regarding these factors
is contained in the company's filings with the Securities and
Exchange Commission, including, without limitation, its Annual
Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they
were made. The company does not undertake any obligation to update
or publicly release any revisions to any forward-looking statements
to reflect events, circumstances or changes in expectations after
the date of this press release.
WEBCAST INFORMATION: General Dynamics will webcast its
second-quarter 2017 financial results conference call at
9 a.m. EDT on Wednesday, July 26, 2017. The webcast will be a
listen-only audio event, available at
www.generaldynamics.com. An on-demand replay of the
webcast will be available by 12 p.m.
on July 26 and will continue for 12
months. To hear a recording of the conference call by telephone,
please call 877-344-7529 (international: 412-317-0088); passcode
10110468. The phone replay will be available from July 26 through August 3, 2017.
EXHIBIT
A
|
|
CONSOLIDATED
STATEMENTS OF EARNINGS - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Variance
|
|
July 2,
2017
|
|
July 3,
2016*
|
|
$
|
|
%
|
Revenue
|
$
|
7,675
|
|
|
$
|
7,774
|
|
|
$
|
(99)
|
|
|
(1.3)
|
%
|
Operating costs and
expenses
|
6,619
|
|
|
6,747
|
|
|
(128)
|
|
|
|
Operating
earnings
|
1,056
|
|
|
1,027
|
|
|
29
|
|
|
2.8
|
%
|
Interest,
net
|
(24)
|
|
|
(23)
|
|
|
(1)
|
|
|
|
Other, net
|
—
|
|
|
1
|
|
|
(1)
|
|
|
|
Earnings before
income tax
|
1,032
|
|
|
1,005
|
|
|
27
|
|
|
2.7
|
%
|
Provision for income
tax, net
|
283
|
|
|
291
|
|
|
(8)
|
|
|
|
Net
earnings
|
$
|
749
|
|
|
$
|
714
|
|
|
$
|
35
|
|
|
4.9
|
%
|
Earnings per
share—basic
|
$
|
2.50
|
|
|
$
|
2.35
|
|
|
$
|
0.15
|
|
|
6.4
|
%
|
Basic weighted
average shares outstanding
|
299.8
|
|
|
304.5
|
|
|
|
|
|
|
|
Earnings per
share—diluted
|
$
|
2.45
|
|
|
$
|
2.30
|
|
|
$
|
0.15
|
|
|
6.5
|
%
|
Diluted weighted
average shares outstanding
|
305.3
|
|
|
310.2
|
|
|
|
|
|
|
* Prior-period
information has been restated for the adoption of Accounting
Standards Update (ASU) 2016-09, Compensation - Stock Compensation
(Topic 718): Improvements to Employee Share-Based Payment
Accounting, which we adopted in the second quarter of 2016, and
Accounting Standards Codification (ASC) Topic 606, Revenue from
Contracts with Customers, which we adopted on January 1,
2017.
|
EXHIBIT
B
|
|
CONSOLIDATED
STATEMENTS OF EARNINGS - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Variance
|
|
July 2,
2017
|
|
July 3,
2016*
|
|
$
|
|
%
|
Revenue
|
$
|
15,116
|
|
|
$
|
15,250
|
|
|
$
|
(134)
|
|
|
(0.9)
|
%
|
Operating costs and
expenses
|
13,025
|
|
|
13,299
|
|
|
(274)
|
|
|
|
Operating
earnings
|
2,091
|
|
|
1,951
|
|
|
140
|
|
|
7.2
|
%
|
Interest,
net
|
(49)
|
|
|
(45)
|
|
|
(4)
|
|
|
|
Other, net
|
—
|
|
|
11
|
|
|
(11)
|
|
|
|
Earnings from
continuing operations before income tax
|
2,042
|
|
|
1,917
|
|
|
125
|
|
|
6.5
|
%
|
Provision for income
tax, net
|
530
|
|
|
549
|
|
|
(19)
|
|
|
|
Earnings from
continuing operations
|
1,512
|
|
|
1,368
|
|
|
144
|
|
|
10.5
|
%
|
Discontinued
operations
|
—
|
|
|
(13)
|
|
|
13
|
|
|
|
Net
earnings
|
$
|
1,512
|
|
|
$
|
1,355
|
|
|
$
|
157
|
|
|
11.6
|
%
|
Earnings per
share—basic
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
5.03
|
|
|
$
|
4.47
|
|
|
$
|
0.56
|
|
|
12.5
|
%
|
Discontinued
operations
|
—
|
|
|
(0.04)
|
|
|
0.04
|
|
|
|
Net
earnings
|
$
|
5.03
|
|
|
$
|
4.43
|
|
|
$
|
0.60
|
|
|
13.5
|
%
|
Basic weighted
average shares outstanding
|
300.8
|
|
|
306.2
|
|
|
|
|
|
Earnings per
share—diluted
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
4.94
|
|
|
$
|
4.39
|
|
|
$
|
0.55
|
|
|
12.5
|
%
|
Discontinued
operations
|
—
|
|
|
(0.04)
|
|
|
0.04
|
|
|
|
Net
earnings
|
$
|
4.94
|
|
|
$
|
4.35
|
|
|
$
|
0.59
|
|
|
13.6
|
%
|
Diluted weighted
average shares outstanding
|
306.3
|
|
|
311.8
|
|
|
|
|
|
|
* Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
EXHIBIT
C
|
|
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Variance
|
|
July 2,
2017
|
|
July 3,
2016*
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
2,078
|
|
|
$
|
2,284
|
|
|
$
|
(206)
|
|
|
(9.0)
|
%
|
Combat
Systems
|
1,414
|
|
|
1,297
|
|
|
117
|
|
|
9.0
|
%
|
Information Systems
and Technology
|
2,104
|
|
|
2,215
|
|
|
(111)
|
|
|
(5.0)
|
%
|
Marine
Systems
|
2,079
|
|
|
1,978
|
|
|
101
|
|
|
5.1
|
%
|
Total
|
$
|
7,675
|
|
|
$
|
7,774
|
|
|
$
|
(99)
|
|
|
(1.3)
|
%
|
Operating
earnings:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
425
|
|
|
$
|
424
|
|
|
$
|
1
|
|
|
0.2
|
%
|
Combat
Systems
|
225
|
|
|
205
|
|
|
20
|
|
|
9.8
|
%
|
Information Systems
and Technology
|
240
|
|
|
234
|
|
|
6
|
|
|
2.6
|
%
|
Marine
Systems
|
178
|
|
|
172
|
|
|
6
|
|
|
3.5
|
%
|
Corporate
|
(12)
|
|
|
(8)
|
|
|
(4)
|
|
|
(50.0)
|
%
|
Total
|
$
|
1,056
|
|
|
$
|
1,027
|
|
|
$
|
29
|
|
|
2.8
|
%
|
Operating
margin:
|
|
|
|
|
|
|
|
Aerospace
|
20.5
|
%
|
|
18.6
|
%
|
|
|
|
|
Combat
Systems
|
15.9
|
%
|
|
15.8
|
%
|
|
|
|
|
Information Systems
and Technology
|
11.4
|
%
|
|
10.6
|
%
|
|
|
|
|
Marine
Systems
|
8.6
|
%
|
|
8.7
|
%
|
|
|
|
|
Total
|
13.8
|
%
|
|
13.2
|
%
|
|
|
|
|
|
* Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
EXHIBIT
D
|
|
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Variance
|
|
July 2,
2017
|
|
July 3,
2016*
|
|
$
|
|
%
|
Revenue:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
4,152
|
|
|
$
|
4,065
|
|
|
$
|
87
|
|
|
2.1
|
%
|
Combat
Systems
|
2,701
|
|
|
2,542
|
|
|
159
|
|
|
6.3
|
%
|
Information Systems
and Technology
|
4,250
|
|
|
4,543
|
|
|
(293)
|
|
|
(6.4)
|
%
|
Marine
Systems
|
4,013
|
|
|
4,100
|
|
|
(87)
|
|
|
(2.1)
|
%
|
Total
|
$
|
15,116
|
|
|
$
|
15,250
|
|
|
$
|
(134)
|
|
|
(0.9)
|
%
|
Operating
earnings:
|
|
|
|
|
|
|
|
Aerospace
|
$
|
868
|
|
|
$
|
756
|
|
|
$
|
112
|
|
|
14.8
|
%
|
Combat
Systems
|
430
|
|
|
392
|
|
|
38
|
|
|
9.7
|
%
|
Information Systems
and Technology
|
476
|
|
|
471
|
|
|
5
|
|
|
1.1
|
%
|
Marine
Systems
|
339
|
|
|
356
|
|
|
(17)
|
|
|
(4.8)
|
%
|
Corporate
|
(22)
|
|
|
(24)
|
|
|
2
|
|
|
8.3
|
%
|
Total
|
$
|
2,091
|
|
|
$
|
1,951
|
|
|
$
|
140
|
|
|
7.2
|
%
|
Operating
margin:
|
|
|
|
|
|
|
|
Aerospace
|
20.9
|
%
|
|
18.6
|
%
|
|
|
|
|
Combat
Systems
|
15.9
|
%
|
|
15.4
|
%
|
|
|
|
|
Information Systems
and Technology
|
11.2
|
%
|
|
10.4
|
%
|
|
|
|
|
Marine
Systems
|
8.4
|
%
|
|
8.7
|
%
|
|
|
|
|
Total
|
13.8
|
%
|
|
12.8
|
%
|
|
|
|
|
|
* Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
EXHIBIT
E
|
|
CONSOLIDATED
BALANCE SHEETS - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
July 2,
2017
|
|
December 31,
2016*
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
equivalents
|
$
|
1,856
|
|
|
$
|
2,334
|
|
Accounts
receivable
|
3,690
|
|
|
3,399
|
|
Unbilled
receivables
|
5,045
|
|
|
4,212
|
|
Inventories
|
5,839
|
|
|
5,817
|
|
Other current
assets
|
696
|
|
|
772
|
|
Total current
assets
|
17,126
|
|
|
16,534
|
|
Noncurrent
assets:
|
|
|
|
Property, plant and
equipment, net
|
3,424
|
|
|
3,477
|
|
Intangible assets,
net
|
685
|
|
|
678
|
|
Goodwill
|
11,679
|
|
|
11,445
|
|
Other
assets
|
879
|
|
|
1,038
|
|
Total noncurrent
assets
|
16,667
|
|
|
16,638
|
|
Total
assets
|
$
|
33,793
|
|
|
$
|
33,172
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
989
|
|
|
$
|
900
|
|
Accounts
payable
|
2,620
|
|
|
2,538
|
|
Customer advances and
deposits
|
6,822
|
|
|
6,827
|
|
Other current
liabilities
|
3,072
|
|
|
3,185
|
|
Total current
liabilities
|
13,503
|
|
|
13,450
|
|
Noncurrent
liabilities:
|
|
|
|
Long-term
debt
|
2,989
|
|
|
2,988
|
|
Other
liabilities
|
6,349
|
|
|
6,433
|
|
Total noncurrent
liabilities
|
9,338
|
|
|
9,421
|
|
Shareholders'
equity:
|
|
|
|
Common
stock
|
482
|
|
|
482
|
|
Surplus
|
2,796
|
|
|
2,819
|
|
Retained
earnings
|
25,546
|
|
|
24,543
|
|
Treasury
stock
|
(14,950)
|
|
|
(14,156)
|
|
Accumulated other
comprehensive loss
|
(2,922)
|
|
|
(3,387)
|
|
Total shareholders'
equity
|
10,952
|
|
|
10,301
|
|
Total liabilities
and shareholders' equity
|
$
|
33,793
|
|
|
$
|
33,172
|
|
|
* Prior-period
information has been restated for the adoption of ASU 2015-17,
Income Taxes (Topic 740): Balance Sheet Classification of Deferred
Taxes, and ASC Topic 606, both of which we adopted on January 1,
2017.
|
EXHIBIT
F
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
July 2,
2017
|
|
July 3,
2016*
|
Cash flows from
operating activities—continuing operations:
|
|
|
|
Net
earnings
|
$
|
1,512
|
|
|
$
|
1,355
|
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Depreciation of
property, plant and equipment
|
182
|
|
|
181
|
|
Amortization of
intangible assets
|
38
|
|
|
50
|
|
Equity-based
compensation expense
|
49
|
|
|
51
|
|
Deferred income tax
provision
|
93
|
|
|
10
|
|
Discontinued
operations
|
—
|
|
|
13
|
|
(Increase) decrease
in assets, net of effects of business acquisitions:
|
|
|
|
Accounts
receivable
|
(291)
|
|
|
(38)
|
|
Unbilled
receivables
|
(815)
|
|
|
(523)
|
|
Inventories
|
(14)
|
|
|
(84)
|
|
Increase (decrease)
in liabilities, net of effects of business acquisitions:
|
|
|
|
Accounts
payable
|
82
|
|
|
157
|
|
Customer advances and
deposits
|
(29)
|
|
|
(455)
|
|
Other, net
|
203
|
|
|
156
|
|
Net cash provided by
operating activities
|
1,010
|
|
|
873
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(153)
|
|
|
(134)
|
|
Other, net
|
(42)
|
|
|
(51)
|
|
Net cash used by
investing activities
|
(195)
|
|
|
(185)
|
|
Cash flows from
financing activities:
|
|
|
|
Purchases of common
stock
|
(901)
|
|
|
(1,189)
|
|
Dividends
paid
|
(483)
|
|
|
(447)
|
|
Other, net
|
108
|
|
|
96
|
|
Net cash used by
financing activities
|
(1,276)
|
|
|
(1,540)
|
|
Net cash used by
discontinued operations
|
(17)
|
|
|
(34)
|
|
Net decrease in
cash and equivalents
|
(478)
|
|
|
(886)
|
|
Cash and
equivalents at beginning of period
|
2,334
|
|
|
2,785
|
|
Cash and
equivalents at end of period
|
$
|
1,856
|
|
|
$
|
1,899
|
|
|
* Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
EXHIBIT
G
|
|
PRELIMINARY
FINANCIAL INFORMATION - (UNAUDITED)
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
2016 (a)
|
|
|
|
Second
Quarter
|
|
|
|
Second
Quarter
|
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
Debt-to-equity
(b)
|
36.3
|
%
|
|
|
|
32.5
|
%
|
|
|
Debt-to-capital
(c)
|
26.6
|
%
|
|
|
|
24.5
|
%
|
|
|
Book value per share
(d)
|
$
|
36.57
|
|
|
|
|
$
|
34.65
|
|
|
|
Total income tax
payments
|
$
|
332
|
|
|
|
|
$
|
439
|
|
|
|
Company-sponsored
research and development (e)
|
$
|
134
|
|
|
|
|
$
|
121
|
|
|
|
Shares
outstanding
|
299,461,802
|
|
|
|
|
305,278,868
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
Second
Quarter
|
|
Six
Months
|
|
Second
Quarter
|
|
Six Months
|
Free cash flow
from operations:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
477
|
|
|
$
|
1,010
|
|
|
$
|
393
|
|
|
$
|
873
|
|
Capital
expenditures
|
(91)
|
|
|
(153)
|
|
|
(69)
|
|
|
(134)
|
|
Free cash flow from
operations (f)
|
$
|
386
|
|
|
$
|
857
|
|
|
$
|
324
|
|
|
$
|
739
|
|
(a)
|
Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
|
|
(b)
|
Debt-to-equity ratio
is calculated as total debt divided by total equity as of the end
of the period.
|
|
|
(c)
|
Debt-to-capital ratio
is calculated as total debt divided by the sum of total debt plus
total equity as of the end of the period.
|
|
|
(d)
|
Book value per share
is calculated as total equity divided by total outstanding shares
as of the end of the period.
|
|
|
(e)
|
Includes independent
research and development and Aerospace product-development
costs.
|
|
|
(f)
|
We believe free cash
flow from operations is a useful measure for investors because it
portrays our ability to generate cash from our businesses for
purposes such as repaying maturing debt, funding business
acquisitions, repurchasing our common stock and paying dividends.
We use free cash flow from operations to assess the quality of our
earnings and as a performance measure in evaluating management. The
most directly comparable GAAP measure to free cash flow from
operations is net cash provided by operating activities.
|
EXHIBIT
H
|
|
BACKLOG -
(UNAUDITED)
|
DOLLARS IN MILLIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded
|
|
Unfunded
|
|
Total
Backlog
|
|
Estimated
Potential
Contract Value (a)
|
|
Total Potential
Contract
Value
|
Second Quarter
2017:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
12,116
|
|
|
$
|
120
|
|
|
$
|
12,236
|
|
|
$
|
1,911
|
|
|
$
|
14,147
|
|
Combat
Systems
|
|
16,749
|
|
|
281
|
|
|
17,030
|
|
|
4,845
|
|
|
21,875
|
|
Information Systems
and Technology
|
|
6,809
|
|
|
2,085
|
|
|
8,894
|
|
|
14,389
|
|
|
23,283
|
|
Marine
Systems
|
|
16,033
|
|
|
4,374
|
|
|
20,407
|
|
|
3,282
|
|
|
23,689
|
|
Total
|
|
$
|
51,707
|
|
|
$
|
6,860
|
|
|
$
|
58,567
|
|
|
$
|
24,427
|
|
|
$
|
82,994
|
|
First Quarter
2017:
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
12,446
|
|
|
$
|
133
|
|
|
$
|
12,579
|
|
|
$
|
1,929
|
|
|
$
|
14,508
|
|
Combat
Systems
|
|
17,058
|
|
|
523
|
|
|
17,581
|
|
|
4,970
|
|
|
22,551
|
|
Information Systems
and Technology
|
|
6,682
|
|
|
2,038
|
|
|
8,720
|
|
|
13,994
|
|
|
22,714
|
|
Marine
Systems
|
|
17,071
|
|
|
4,413
|
|
|
21,484
|
|
|
3,756
|
|
|
25,240
|
|
Total
|
|
$
|
53,257
|
|
|
$
|
7,107
|
|
|
$
|
60,364
|
|
|
$
|
24,649
|
|
|
$
|
85,013
|
|
Second Quarter
2016 (b):
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
13,418
|
|
|
$
|
126
|
|
|
$
|
13,544
|
|
|
$
|
2,221
|
|
|
$
|
15,765
|
|
Combat
Systems
|
|
18,094
|
|
|
478
|
|
|
18,572
|
|
|
4,812
|
|
|
23,384
|
|
Information Systems
and Technology
|
|
7,509
|
|
|
2,292
|
|
|
9,801
|
|
|
14,560
|
|
|
24,361
|
|
Marine
Systems
|
|
15,868
|
|
|
7,260
|
|
|
23,128
|
|
|
4,237
|
|
|
27,365
|
|
Total
|
|
$
|
54,889
|
|
|
$
|
10,156
|
|
|
$
|
65,045
|
|
|
$
|
25,830
|
|
|
$
|
90,875
|
|
(a)
|
The estimated
potential contract value includes work awarded on unfunded
indefinite delivery, indefinite quantity (IDIQ) contracts and
unexercised options associated with existing firm contracts,
including options to purchase new aircraft and long-term agreements
with fleet customers. The actual amount of funding received in the
future may be higher or lower than our estimate of potential
contract value. We recognize options in backlog when the customer
exercises the option and establishes a firm order.
|
|
|
(b)
|
Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
EXHIBIT
I
|
|
SECOND QUARTER
2017 SIGNIFICANT ORDERS - (UNAUDITED)
|
DOLLARS IN
MILLIONS
|
|
We received the
following significant orders during the second quarter of
2017:
|
|
Combat
Systems:
|
|
|
•
|
$110 to provide
munitions to a customer in the Middle East.
|
|
|
•
|
$75 to provide
munitions to the U.S. Air Force and U.S. Army.
|
|
|
•
|
$45 from the Army in
support of the Stryker wheeled combat vehicle program, including
the production of vehicles with a 30-millimeter cannon.
|
|
|
•
|
$40 to produce gun
systems for the F-35 Joint Strike Fighter.
|
|
|
•
|
$30 to continue the
conversion of M1A2 tanks to the M1A2S configuration for the Kingdom
of Saudi Arabia and for engineering and logistics support services
for the U.S. Army's Abrams family of vehicles.
|
|
Information
Systems and Technology:
|
|
|
•
|
$165 from the Centers
for Medicare & Medicaid Services for contact center
services.
|
|
|
•
|
$125 from the Army
for ruggedized computing equipment under the Common Hardware
Systems-4 (CHS-4) program.
|
|
|
•
|
$105 from the U.S.
Navy for combat and seaframe control systems on an
Independence-variant Littoral Combat Ship (LCS). Options for the
systems on three additional ships added $270 to the group's
estimated potential contract value.
|
|
|
•
|
$60 to provide
support for live and virtual operations under the Warfighter Field
Operations Customer Support (FOCUS) program.
|
|
|
•
|
$50 to provide
engineering, manufacturing and development in support of the Navy's
Air and Missile Defense Radar (AMDR) program.
|
|
|
•
|
$40 from the Navy to
provide training and training-related program support services for
the Center for Surface Combat Systems (CSCS). This contract has a
potential value of approximately $245 over five years.
|
|
|
•
|
$40 from the U.S.
Coast Guard to provide system sustainment support for the Rescue 21
program.
|
|
|
•
|
$35 from the Army to
provide continued software support and engineering for the
Warfighter Information Network-Tactical (WIN-T) Increment 2
program.
|
|
|
•
|
$35 from the U.S.
Geological Survey to perform hardware and software upgrades for the
Landsat 8 satellite program.
|
|
Marine
Systems:
|
|
|
•
|
$565 from the Navy
for design work on the Columbia-class submarine program and
Advanced Nuclear Plant Studies (ANPS) in support of the
program.
|
|
|
•
|
$110 from the Navy to
procure long-lead materials for two Virginia-class submarines under
Block V of the program.
|
|
|
•
|
$105 from the Navy
for maintenance, modernization and repair work on the USS Makin
Island, an LHD-class amphibious assault ship.
|
|
|
•
|
$55 for initial
design and construction work for the second ship in the TAO-205
next-generation fleet oiler program.
|
|
|
•
|
$45 from the Navy to
provide maintenance, modernization and repair services for
submarines located at Naval Submarine Base New London in
Connecticut.
|
|
|
•
|
$35 from the Navy for
on-board repair parts for two Virginia-class submarines under Block
IV of the program.
|
|
EXHIBIT
J
|
|
AEROSPACE
SUPPLEMENTAL DATA - (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
|
|
2017
|
|
2016*
|
|
2017
|
|
2016*
|
Gulfstream
Aircraft Deliveries (units):
|
|
|
|
|
|
|
|
|
Large-cabin
aircraft
|
|
23
|
|
|
29
|
|
|
46
|
|
|
49
|
|
Mid-cabin
aircraft
|
|
7
|
|
|
7
|
|
|
14
|
|
|
15
|
|
Total
|
|
30
|
|
|
36
|
|
|
60
|
|
|
64
|
|
Pre-owned
Deliveries (units):
|
|
2
|
|
|
4
|
|
|
3
|
|
|
5
|
|
|
* Prior-period
information has been restated for the adoption of ASC Topic 606,
which we adopted on January 1, 2017.
|
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SOURCE General Dynamics