- Net sales of $18.9 billion in
the fourth quarter and $67.6 billion
in 2023
- Net earnings of $1.9 billion,
or $7.58 per share in the fourth
quarter; $6.9 billion, or
$27.55 per share in 2023
- Cash from operations of $2.4
billion and free cash flow of $1.7
billion in the fourth quarter; cash from operations of
$7.9 billion and free cash flow of
$6.2 billion in 2023
- $3.8 billion of cash
returned to shareholders through dividends and share repurchases in
the fourth quarter, and $9.1 billion
in 2023
- Record backlog of $160.6
billion
- 2024 financial outlook provided
BETHESDA, Md., Jan. 23,
2024 /PRNewswire/ -- Lockheed Martin Corporation
[NYSE: LMT] today reported fourth quarter 2023 net sales of
$18.9 billion, compared to
$19.0 billion in the fourth quarter
of 2022. Net earnings in the fourth quarter of 2023 and 2022 were
$1.9 billion, or $7.58 and $7.40 per
share, respectively. Cash from operations was $2.4 billion in the fourth quarter of 2023,
compared to $1.9 billion in the
fourth quarter of 2022. Free cash flow was $1.7 billion in the fourth quarter of 2023,
compared to $1.2 billion in the
fourth quarter of 2022.
Net sales in 2023 were $67.6
billion, compared to $66.0
billion in 2022. Net earnings in 2023 were $6.9 billion, or $27.55 per share, compared to $5.7 billion, or $21.66 per share, in 2022. Cash from operations
in 2023 was $7.9 billion,
compared to $7.8 billion in 2022.
Free cash flow in 2023 was $6.2
billion, compared to $6.1 billion in 2022.
"Our solid finish to 2023 and full-year results reflect
continued strong demand for our all-domain portfolio of advanced
defense tech solutions. Backlog reached a record $160.6 billion billion and sales increased 2
percent year-over-year to $67.6
billion," said Lockheed Martin Chairman, President and CEO
Jim Taiclet. "In 2023 we invested
$1.5 billion in research and
development and an additional $1.7
billion of capital expenditures to create, accelerate and
refine the development of innovative 21st Century Security
capabilities. In line with our expectations, we generated
$6.2 billion of free cash flow for
the year, supporting strong free cash flow per share growth, and we
returned over $9 billion to
shareholders through dividends and share repurchases.
"Looking ahead to 2024 and beyond, our opportunities to support
global security for the U.S. Government and its allies remain
robust with traditional and breakthrough technologies. Our team
will continue to realize the vision for 21st Century Security
integrated platforms and systems, working with industry and
commercial partners to pioneer and mature deterrence solutions for
customers worldwide. Inside the company, our 1LMX digital
transformation initiative will further materialize and drive speed,
resiliency, efficiency and competitiveness across our operations.
As a result, we anticipate continued top-line growth in 2024 and
sustained cash flow conversion and deployment, in support of our
mid-single digit growth target in free cash flow per share."
Adjusted earnings before income taxes, net earnings and
diluted EPS
The table below shows the impact to earnings before income
taxes, net earnings and diluted earnings per share (EPS) for
certain non-operational items:
|
(in millions,
except per share data)
|
|
Quarters
Ended
|
|
|
|
|
Dec.
31,
2023
|
|
Dec.
31,
2022
|
|
|
|
|
Earnings
Before Income
Taxes
|
Net
Earnings
|
Diluted
EPS
|
|
Earnings
Before Income
Taxes
|
Net
Earnings
|
Diluted
EPS
|
|
|
As Reported
(GAAP)
|
|
$ 2,145
|
$ 1,866
|
$
7.58
|
|
$ 2,190
|
$ 1,912
|
$ 7.40
|
|
|
Severance and other
charges
|
|
92
|
73
|
0.30
|
|
100
|
79
|
0.31
|
|
|
Mark-to-market
investment losses1
|
|
6
|
5
|
0.02
|
|
29
|
22
|
0.08
|
|
|
Total
Adjustments
|
|
98
|
78
|
0.32
|
|
129
|
101
|
0.39
|
|
|
As Adjusted
(Non-GAAP)2
|
|
$ 2,243
|
$ 1,944
|
$
7.90
|
|
$ 2,319
|
$ 2,013
|
$ 7.79
|
|
|
|
|
|
|
|
|
1
|
Includes changes in
valuations of the company's net assets and liabilities for deferred
compensation plans and early-stage company investments.
|
|
2
|
See the "Use of
Non-GAAP Financial Measures" section of this news release for more
information.
|
|
|
|
|
|
(in millions,
except per share data)
|
|
Years
Ended
|
|
|
|
|
Dec.
31,
2023
|
|
Dec.
31,
2022
|
|
|
|
|
Earnings
Before Income
Taxes
|
Net
Earnings
|
Diluted
EPS
|
|
Earnings
Before Income
Taxes
|
Net
Earnings
|
Diluted
EPS
|
|
|
As Reported
(GAAP)
|
|
$ 8,098
|
$ 6,920
|
$ 27.55
|
|
$ 6,680
|
$ 5,732
|
$ 21.66
|
|
|
Pension settlement
charge
|
|
—
|
—
|
—
|
|
1,470
|
1,156
|
4.33
|
|
|
Severance and other
charges
|
|
92
|
73
|
0.30
|
|
100
|
79
|
0.31
|
|
|
Mark-to-market
investment (gains) losses1
|
|
(10)
|
(8)
|
(0.03)
|
|
290
|
219
|
0.83
|
|
|
Debt refinancing
transaction
|
|
—
|
—
|
—
|
|
34
|
26
|
0.10
|
|
|
Total
Adjustments
|
|
82
|
65
|
0.27
|
|
1,894
|
1,480
|
5.57
|
|
|
As Adjusted
(Non-GAAP)2
|
|
$ 8,180
|
$ 6,985
|
$ 27.82
|
|
$ 8,574
|
$ 7,212
|
$ 27.23
|
|
|
|
|
|
|
|
|
1
|
Includes changes in
valuations of the company's net assets and liabilities for deferred
compensation plans and early-stage company investments.
|
|
2
|
See the "Use of
Non-GAAP Financial Measures" section of this news release for more
information.
|
|
|
|
|
Severance and other charges
During the fourth quarter of 2023, the company recorded charges
totaling $92 million
($73 million, or $0.30 per
share, after-tax) which include severance costs for the planned
reduction of certain positions across the company and asset
impairment charges. This action resulted from a review of the
company's business segments and corporate functions and is intended
to improve the efficiency of the company's operations.
Summary Financial Results
The following table presents the company's summary financial
results.
|
(in millions,
except per share data)
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net
sales
|
|
$
18,874
|
|
$
18,991
|
|
$
67,571
|
|
$
65,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business segment
operating profit1,2
|
|
$
2,042
|
|
$
2,068
|
|
$
7,389
|
|
$
7,467
|
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating
adjustment
|
|
415
|
|
428
|
|
1,660
|
|
1,709
|
|
|
Severance and other
charges3
|
|
(92)
|
|
(100)
|
|
(92)
|
|
(100)
|
|
|
Intangible asset
amortization expense2
|
|
(62)
|
|
(62)
|
|
(247)
|
|
(248)
|
|
|
Other,
net4
|
|
(10)
|
|
(41)
|
|
(203)
|
|
(480)
|
|
|
Total unallocated
items
|
|
251
|
|
225
|
|
1,118
|
|
881
|
|
|
Consolidated
operating profit
|
|
$
2,293
|
|
$
2,293
|
|
$
8,507
|
|
$
8,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings4,5,6
|
|
$
1,866
|
|
$
1,912
|
|
$
6,920
|
|
$
5,732
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share4,5,6
|
|
$
7.58
|
|
$
7.40
|
|
$
27.55
|
|
$
21.66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from
operations7
|
|
$
2,365
|
|
$
1,928
|
|
$
7,920
|
|
$
7,802
|
|
|
Capital
expenditures
|
|
(704)
|
|
(693)
|
|
(1,691)
|
|
(1,670)
|
|
|
Free cash
flow1,7
|
|
$
1,661
|
|
$
1,235
|
|
$
6,229
|
|
$
6,132
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Business segment
operating profit and free cash flow are non-GAAP measures. See the
"Use of Non-GAAP Financial Measures" section
of this news release
for more information.
|
|
2
|
Effective Jan. 1, 2023,
the company reclassified intangible asset amortization expense out
of the business segment operating profit and into
the unallocated items line item to better align with how management
views and manages the business. The 2022 amounts reflect the impact
of this change.
|
|
3
|
Severance and other
charges for the quarter and year ended Dec. 31, 2023 include $92
million ($73 million, or $0.30, after-tax) severance
costs associated with the planned elimination of certain positions
through involuntary actions across the company and asset
impairment
charges. Severance and other charges for the quarter and year ended
Dec. 31, 2022 included $100 million ($79 million, or $0.31 per
share, after-tax) related to certain actions at the company's RMS
business segment, which included severance costs for the planned
reduction
of certain positions and asset impairment charges.
|
|
4
|
Other, net for the
quarter and year ended Dec. 31, 2023 included net gains of $34
million ($26 million, or $0.10 per share, after-tax) and $74
million
($56 million, or $0.22 per share, after-tax), compared to net gains
of $19 million ($14 million, or $0.06 per share, after-tax) and net
losses of
$176 million ($132 million, or $0.50 per share, after-tax) for the
quarter and year ended Dec. 31, 2022 due to changes in the fair
value of net assets
and liabilities for deferred compensation plans.
|
|
5
|
Net earnings for the
quarter and year ended Dec. 31, 2023 included net losses of $40
million ($30 million, or $0.12 per share, after-tax) and $64
million
($48 million, or $0.19 per share, after-tax), compared to net
losses of $48 million ($36 million, or 0.14 per share, after-tax)
and $114 million ($86 million, or
$0.33 per share, after-tax) for the quarter and year ended Dec. 31,
2022 due to changes in the fair value of early-stage company
investments.
|
|
6
|
Net earnings for the
quarters and years ended Dec. 31, 2023 and 2022 include certain
non-operational charges. See prior table for further
details.
|
|
7
|
See the "Cash Flows and
Capital Deployment Activities" section of this news release for
more information.
|
|
|
|
|
2024 Financial Outlook
The following table and other sections of this news release
contain forward-looking statements, which are based on the
company's current expectations. Actual results may differ
materially from those projected. It is the company's practice
not to incorporate adjustments into its financial outlook for
proposed or potential acquisitions, divestitures, ventures, pension
risk transfer transactions, financing transactions, changes in law,
or new accounting standards until such items have been consummated,
enacted or adopted. For additional factors that may impact the
company's actual results, refer to the "Forward-Looking Statements"
section in this news release.
|
(in millions,
except per share data)
|
|
|
2024
Outlook1
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
$68,500 -
$70,000
|
|
|
|
|
|
|
|
|
Business segment
operating profit2
|
|
|
$7,175-
$7,375
|
|
|
|
|
|
|
|
|
Total FAS/CAS pension
adjustment3
|
|
|
~$1,685
|
|
|
|
|
|
|
|
|
Diluted earnings per
share4
|
|
|
$25.65 -
$26.35
|
|
|
|
|
|
|
|
|
Cash from
operations
|
|
|
$7,750 -
$8,050
|
|
|
Capital
expenditures
|
|
|
~$1,750
|
|
|
Free cash
flow2
|
|
|
$6,000 -
$6,300
|
|
|
|
|
|
|
|
1
|
The company's current
2024 financial outlook does not include any future gains or losses
related to changes in valuations of the company's
net assets and liabilities for deferred compensation plans or
early-stage company investments. The company's financial outlook
for 2024 assumes
that fiscal year 2024 appropriations bills are adopted in a timely
manner, the company's programs remain funded and that the U.S.
Government
does not shutdown or continue to operate under a continuing
resolution for the remainder of 2024. In addition, the outlook
includes known impacts
from inflationary pressures and labor and supply chain challenges
at the time of this news release and experienced to
date.
|
|
2
|
Business segment
operating profit and free cash flow are non-GAAP measures. See the
"Use of Non-GAAP Financial Measures" section of this
news release for more information.
|
|
3
|
The total 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 $1.7 billion. Total expected
financial accounting standards (FAS) pension income is not
significant. 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.
|
|
4
|
Although the company
typically does not update its outlook for proposed changes in law,
the above includes the effect of Notice 2023-63 confirming
that certain expenditures incurred in the performance of cost-type
contracts are not subject to capitalization. The company believes
incorporating the
clarification from the Notice more accurately reflects its
expectations because the Notice describes the tax treatment of
certain expenditures inaccordance
with the company's analysis of the Internal Revenue
Code.
|
|
|
|
|
Cash Flows and Capital Deployment Activities
Cash from operations in the fourth quarter of 2023 was
$2.4 billion and capital expenditures
were $704 million, resulting in free cash flow of $1.7 billion. The increase in operating and free
cash flow in the fourth quarter compared to the same period in 2022
was primarily due to the timing of international advances on the
PAC-3 program and production and billing cycles impacting contract
liabilities, contract assets and receivables (primarily RMS),
partially offset by timing of cash payments for accounts payable
across the company.
Cash from operations in 2023 was $7.9
billion and capital expenditures were $1.7 billion, resulting in free cash flow of
$6.2 billion. The increase in
operating and free cash flow in 2023 compared to 2022 was primarily
due to the timing of production and billing cycles impacting
receivables (primarily the F-35 program at Aeronautics) and
contract assets (primarily IWSS programs at RMS), partially offset
by timing of cash payments for accounts payable across the
company.
The company's cash activities in the quarter and year ended
Dec. 31, 2023, included the
following:
- paying cash dividends of $767
million and $3.1 billion
during the quarter and year ended Dec. 31,
2023;
- paying $3.0 billion to repurchase
6.7 million shares and $6.0 billion
to repurchase 13.4 million shares during the quarter and year ended
Dec. 31, 2023;
- receiving net proceeds of $2.0
billion from a debt issuance during the year ended
Dec. 31, 2023; and
- making a scheduled repayment of $115
million of long-term debt during the year ended Dec. 31, 2023.
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 Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
7,613
|
|
$
7,635
|
|
$
27,474
|
|
$
26,987
|
|
|
Missiles and Fire
Control
|
|
3,171
|
|
3,287
|
|
11,253
|
|
11,317
|
|
|
Rotary and Mission
Systems
|
|
4,711
|
|
4,803
|
|
16,239
|
|
16,148
|
|
|
Space
|
|
3,379
|
|
3,266
|
|
12,605
|
|
11,532
|
|
|
Total net
sales
|
|
$
18,874
|
|
$
18,991
|
|
$
67,571
|
|
$
65,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
761
|
|
$
816
|
|
$
2,825
|
|
$
2,867
|
|
|
Missiles and Fire
Control
|
|
395
|
|
451
|
|
1,541
|
|
1,637
|
|
|
Rotary and Mission
Systems
|
|
579
|
|
567
|
|
1,865
|
|
1,906
|
|
|
Space
|
|
307
|
|
234
|
|
1,158
|
|
1,057
|
|
|
Total business
segment operating
profit1
|
|
2,042
|
|
2,068
|
|
7,389
|
|
7,467
|
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating
adjustment
|
|
415
|
|
428
|
|
1,660
|
|
1,709
|
|
|
Severance and other
charges
|
|
(92)
|
|
(100)
|
|
(92)
|
|
(100)
|
|
|
Intangible asset
amortization
expense1
|
|
(62)
|
|
(62)
|
|
(247)
|
|
(248)
|
|
|
Other, net
|
|
(10)
|
|
(41)
|
|
(203)
|
|
(480)
|
|
|
Total unallocated
items
|
|
251
|
|
225
|
|
1,118
|
|
881
|
|
|
Total consolidated
operating profit
|
|
$
2,293
|
|
$
2,293
|
|
$
8,507
|
|
$
8,348
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Effective Jan. 1, 2023,
the company reclassified intangible asset amortization expense out
of the business segment operating profit and
into the unallocated items line item to better align with how
management views and manages the business. The 2022 amounts reflect
the
impact of this change.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and not included
in management's evaluation of performance of each segment. Business
segment operating profit includes the company's share of earnings
or losses from equity method investees as the operating activities
of the equity method investees are closely aligned with the
operations of the company's business segments.
Business segment operating profit excludes the FAS/CAS pension
operating adjustment, 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, intangible asset amortization expense, and other
miscellaneous corporate activities. Excluded items are included in
the reconciling item "Unallocated items" between operating profit
from the company's business segments and its consolidated operating
profit.
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. Increases in profit booking
rates, typically referred to as favorable profit adjustments,
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 and are typically referred to as
unfavorable profit adjustments. Increases or decreases in profit
booking rates are recognized in the period they are determined and
reflect the inception-to-date effect of such changes.
The company's consolidated net favorable profit booking rate
adjustments represented approximately 23% and 21% of total segment
operating profit in the quarter and year ended December 31, 2023 and 24% in both the quarter and
year ended December 31, 2022.
Aeronautics
|
(in millions)
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net
sales
|
|
$ 7,613
|
|
$ 7,635
|
|
$ 27,474
|
|
$ 26,987
|
|
|
Operating
profit
|
|
761
|
|
816
|
|
2,825
|
|
2,867
|
|
|
Operating
margin
|
|
10.0 %
|
|
10.7 %
|
|
10.3 %
|
|
10.6 %
|
|
Aeronautics' net sales in the fourth quarter of 2023 were
comparable to the same period in 2022. Net sales on the F-35
program decreased $275 million due to
lower volume on production contracts partially offset by higher
volume on development and sustainment contracts. Net sales
increased on classified programs by $180
million driven by higher volume and increased on the F-16
program by $65 million due to the
ramp up on production.
Aeronautics' operating profit in the fourth quarter of 2023
decreased $55 million, or 7%, compared to the same period in
2022. The decrease was primarily attributable to lower operating
profit of $50 million on the F-35
program due to the lower cost throughput described above and lower
net favorable profit adjustments on production contracts. Total net
profit booking rate adjustments were $85
million lower in the fourth quarter of 2023 compared to the
same period in 2022.
Aeronautics' net sales in 2023 increased $487 million, or
2%, compared to 2022. Net sales increased by approximately
$540 million for the ramp up on
classified programs and $230 million
on the F-16 program related to the ramp up in production. These
increases were partially offset by lower net sales of $400 million on the F-35 program due to lower
volume on production contracts partially offset by higher volume on
sustainment and development contracts.
Aeronautics' operating profit in 2023 decreased $42 million, or 1%, compared to 2022. The
decrease was primarily attributable to lower operating profit of
$100 million on the F-22 program due
to lower net favorable profit adjustments and $95 million on the F-35 program due to lower net
favorable profit adjustments on production contracts. These
decreases were partially offset by higher operating profit of
$115 million on classified programs
due to higher net favorable profit adjustments and the impact of
the higher sales as discussed above. Total net profit booking rate
adjustments were $180 million lower
in 2023 compared to 2022.
Missiles and Fire Control
|
(in millions)
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net
sales
|
|
$
3,171
|
|
$
3,287
|
|
$
11,253
|
|
$ 11,317
|
|
|
Operating
profit
|
|
395
|
|
451
|
|
1,541
|
|
1,637
|
|
|
Operating
margin
|
|
12.5 %
|
|
13.7 %
|
|
13.7 %
|
|
14.5 %
|
|
MFC's net sales in the fourth quarter of 2023 decreased
$116 million, or 4%, compared to the same period in 2022. The
decrease was primarily attributable to lower net sales of
approximately $150 million for
integrated air and missile defense programs primarily due to
supplier cost timing on PAC-3, partially offset by higher net sales
of approximately $60 million for
tactical and strike missile programs due to production ramp up on
Long Range Anti-Ship Missile (LRASM) and Joint Air-to-Surface
Standoff Missile (JASSM).
MFC's operating profit in the fourth quarter of 2023 decreased
$56 million, or 12%, compared to the same period in 2022. The
decrease was primarily attributable to lower operating profit for
tactical and strike missile programs due to a $40 million loss recognized on a classified
program. Total net profit booking rate adjustments were
$30 million lower in the fourth
quarter of 2023 compared to the same period in 2022.
MFC's net sales in 2023 decreased $64
million, or 1% compared to the same period in 2022. Net
sales decreased $165 million for
integrated air and missile defense programs due primarily to
supplier cost timing on PAC-3 and $115
million for sensors and global sustainment programs due
primarily to the absence in 2023 of the impact of a favorable
profit adjustment on an international program in 2022. These
decreases were partially offset by higher net sales of $145 million for tactical and strike missile
programs primarily due to production ramp up on JASSM, LRASM,
and precision fires programs.
MFC's operating profit in 2023 decreased $96 million, or
6%, compared to 2022. The decrease was primarily attributable to
lower operating profit for tactical and strike missile programs due
to $45 million of losses recognized
on a classified program. Total net profit booking rate adjustments
were $95 million lower in 2023
compared to 2022.
Rotary and Mission Systems
|
(in millions)
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net
sales
|
|
$ 4,711
|
|
$ 4,803
|
|
$
16,239
|
|
$ 16,148
|
|
|
Operating
profit
|
|
579
|
|
567
|
|
1,865
|
|
1,906
|
|
|
Operating
margin
|
|
12.3 %
|
|
11.8 %
|
|
11.5 %
|
|
11.8 %
|
|
RMS' net sales in the fourth quarter of 2023 decreased
$92 million, or 2%, compared to the
same period in 2022. The decrease was primarily attributable to
lower net sales of $115 million on
integrated warfare systems and sensors (IWSS) programs due to lower
volume on the Multi-Mission Surface Combatant (MMSC) program and
$80 million for training and
logistics solutions (TLS) programs due to lower volume. These
decreases were partially offset by higher net sales of $140 million for Sikorsky helicopter programs due
to higher deliveries on international Black Hawk programs.
RMS' operating profit in the fourth quarter of 2023 increased
$12 million, or 2%, compared to the
same period in 2022. The increase was primarily driven by favorable
contract mix across the IWSS programs portfolio. Total net profit
booking rate adjustments in the fourth quarter of 2023 were
comparable to the same period in 2022.
RMS' net sales in 2023 increased $91
million, or 1% compared to the same period in 2022.
Higher net sales of $265 million on
IWSS programs due to higher volume on the Aegis program and new
program ramp ups within the radar and laser systems portfolios were
partially offset by lower net sales of $55
million for Sikorsky helicopter programs due to lower
Black Hawk production volume.
RMS' operating profit in 2023 decreased $41 million, or 2%, compared to 2022. The
decrease was primarily attributable to lower operating profit for
Sikorsky helicopter programs primarily due to an unfavorable profit
adjustment of $100 million in the
second quarter of 2023 on the Canadian Maritime Helicopter Program
(CMHP) and lower Black Hawk production volume. This decrease
was partially offset by higher operating profit for IWSS programs
primarily due to a favorable profit adjustment of $65 million in the second quarter of 2023 on an
international surveillance and control program, along with higher
volume on the Aegis program. Total net profit booking rate
adjustments were $100 million lower
in 2023 compared to 2022.
Space
|
(in millions)
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
Net
sales
|
|
$ 3,379
|
|
$ 3,266
|
|
$
12,605
|
|
$ 11,532
|
|
|
Operating
profit
|
|
307
|
|
234
|
|
1,158
|
|
1,057
|
|
|
Operating
margin
|
|
9.1 %
|
|
7.2 %
|
|
9.2 %
|
|
9.2 %
|
|
Space's net sales in the fourth quarter of 2023 increased
$113 million, or 3%, compared to the
same period in 2022. The increase was primarily attributable to
higher net sales of $155 million for
strategic and missile defense programs due to ramp up in the Next
Generation Interceptor (NGI) development program.
Space's operating profit in the fourth quarter of 2023 increased
$73 million, or 31%, compared to the
same period in 2022. Total net profit booking rate adjustments
across the portfolio were $90 million
higher in the fourth quarter of 2023 compared to the same period in
2022.
Space's net sales in 2023 increased $1.1 billion, or 9%, compared to 2022. The
increase was primarily attributable to higher net sales of
$620 million for strategic and
missile defense programs due to ramp up in the NGI development
program and higher volume in the Fleet Ballistic Missile (FBM)
program; and higher net sales of $225
million for national security space programs due to
development ramp up on Transport Layer and classified programs.
Space's operating profit in 2023 increased $101 million, or 10%, compared to 2022. The
increase was primarily attributable to higher operating profit of
$140 million for national security
space programs due to the absence of unfavorable profit adjustments
in 2023 on a ground solutions program and higher net favorable
profit adjustments in classified programs. This increase was
partially offset by $80 million of
lower equity earnings resulting from lower launch volume and an
increase in new product development costs at United Launch Alliance
(ULA). Total net profit booking rate adjustments were $150 million higher in 2023 compared to 2022.
Total equity earnings (primarily ULA) for the quarter ended
Dec. 31, 2023 were not significant,
compared to approximately $15 million, or 6% for the same
period in 2022. Total equity earnings for the year ended
Dec. 31, 2023 were $20 million,
or 2% of Space's operating profit, compared to approximately
$100 million, or 9% in 2022.
Income Taxes
The company's effective income tax rate was 13.0% and 14.5% for
the quarter and year ended Dec. 31,
2023, compared to 12.7% and 14.2% for the quarter and year
ended Dec. 31, 2022. The rates for
all periods benefited from research and development tax credits,
tax deductions for foreign derived intangible income, dividends
paid to the company's defined contribution plans with an
employee stock ownership plan feature and employee equity
awards.
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 to, and 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
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)
|
|
|
2024
Outlook
|
|
|
Business segment
operating profit (non-GAAP)
|
|
|
$7,175 -
$7,375
|
|
|
FAS/CAS operating
adjustment1
|
|
|
~1,625
|
|
|
Intangible asset
amortization expense
|
|
|
~(245)
|
|
|
Other, net
|
|
|
~(400)
|
|
|
Consolidated
operating profit (GAAP)
|
|
|
~$8,155 –
$8,355
|
|
|
|
|
|
|
|
1
|
Reflects the amount by
which expected total CAS pension cost of $1.7 billion, exceeds the
expected FAS pension service cost and excludes
expected non-service FAS pension income. Refer to the supplemental
table "Selected Financial Data" included in this news release for
a
detail of the FAS/CAS operating adjustment.
|
|
|
|
|
Free cash flow
Free cash flow is cash from operations less capital
expenditures. The company's capital expenditures are comprised of
equipment and facilities infrastructure and information technology
(inclusive of costs for the development or purchase of internal-use
software that are capitalized). The company uses free cash flow to
evaluate its business performance and overall liquidity and it is a
performance goal in the company's annual and long-term incentive
plans. The company believes free cash flow is a useful measure for
investors because it represents the amount of cash generated from
operations after reinvesting in the business and that may be
available to return to stockholders and creditors (through
dividends, stock repurchases and debt repayments) or available to
fund acquisitions or other investments. The entire free cash flow
amount is not necessarily available for discretionary expenditures,
however, because it does not account for certain mandatory
expenditures, such as the repayment of maturing debt and pension
contributions.
Adjusted earnings before income taxes; adjusted net earnings
and adjusted diluted EPS
Earnings before income taxes, net earnings and diluted earnings
per share (EPS) were impacted by certain non-operational items for
all periods. Management believes the presentation of these measures
adjusted for the impacts of these non-operational items is useful
to investors in understanding the company's underlying business
performance and comparing performance from period to period. The
tax effects related to each adjustment that impacted earnings
before income taxes are based on a blended tax rate that combines
the federal statutory rate of 21% plus an estimated state tax
rate.
Webcast and Conference Call Information
Lockheed Martin Corporation will webcast live the earnings
results conference call (listen-only mode) on Tuesday, Jan. 23, 2024, at 11:00 a.m. ET on the Lockheed Martin Investor
Relations website at www.lockheedmartin.com/investor. The
accompanying presentation slides and relevant financial charts are
also available 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 122,000 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 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;
- budget uncertainty, the risk of future budget cuts, the impact
of continuing resolution funding mechanisms and the debt ceiling
and the potential for government shutdowns and changing funding and
acquisition priorities;
- risks related to the development, production, sustainment,
performance, schedule, cost and requirements of complex and
technologically advanced programs, including the F-35 program;
- planned production rates and orders for significant programs,
compliance with stringent performance and reliability standards,
and materials availability, including government furnished
equipment;
- the timing of contract awards or delays in contract
definitization as well as the timing and customer acceptance of
product deliveries and performance milestones;
- the company's ability to recover costs under U.S. Government
contracts and the mix of fixed-price and cost-reimbursable
contracts;
- customer procurement policies that shift risk to contractors,
including competitively bid programs with fixed-price development
work or follow-on production options or other financial risks; and
the impact of investments, cost overruns or other cost pressures
and performance issues on fixed price contracts;
- changes in procurement and other regulations and policies
affecting the company's industry, export of its products, cost
allowability or recovery, preferred contract type, and performance
and progress payments policy;
- performance and financial viability of key suppliers,
teammates, joint ventures (including United Launch Alliance), joint
venture partners, subcontractors and customers;
- economic, industry, business and political conditions including
their effects on governmental policy;
- the impact of inflation and other cost pressures;
- the impact of pandemics and epidemics on the company's business
and financial results, including supply chain disruptions and
delays, employee absences, and program delays;
- government actions that prevent the sale or delivery of the
company's products (such as delays in approvals for exports
requiring Congressional notification);
- trade policies or sanctions (including Chinese sanctions on the
company or its suppliers, teammates or partners, U.S. Government
sanctions on Türkish entities and persons, and indirect effects of
sanctions on Russia to the
company's supply chain);
- the company's success expanding into and doing business in
adjacent markets and internationally and the risks posed by
international sales;
- changes in foreign national priorities and foreign government
budgets and planned orders, including potential effects from
fluctuations in currency exchange rates;
- the competitive environment for the company's products and
services, including competition from startups and non-traditional
defense contractors;
- the company's ability to develop and commercialize new
technologies and products, including emerging digital and network
technologies and capabilities;
- the company's ability to benefit fully from or adequately
protect its intellectual property rights;
- the company's ability to attract and retain a highly skilled
workforce, the impact of work stoppages or other labor
disruptions;
- cyber or other security threats or other disruptions faced by
the company or its suppliers;
- the company's ability to implement and continue, and the timing
and impact of, capitalization changes such as share repurchases,
dividend payments and financing transactions;
- the accuracy of the company's estimates and projections;
- changes in pension plan assumptions and actual returns on
pension assets; cash funding requirements and pension risk
transfers and associated settlement charges;
- realizing the anticipated benefits of acquisitions or
divestitures, investments, joint ventures, teaming arrangements or
internal reorganizations, and market volatility affecting the fair
value of investments that are marked to market;
- the company's efforts to increase the efficiency of its
operations and improve the affordability of its products and
services, including through digital transformation and cost
reduction initiatives;
- the risk of an impairment of the company's assets, including
the potential impairment of goodwill and intangibles;
- the availability and adequacy of the company's insurance and
indemnities;
- impacts of climate change and compliance with laws,
regulations, policies, and customer requirements in response to
climate change concerns;
- changes in accounting, U.S. or foreign tax, export or other
laws, regulations, and policies and their interpretation or
application, and changes in the amount or reevaluation of uncertain
tax positions; and
- the outcome of legal proceedings, bid protests, environmental
remediation efforts, audits, government investigations or
government allegations that the company has failed to comply with
law, other contingencies and U.S. Government identification of
deficiencies in its business systems.
These are only some of the factors that may affect the
forward-looking statements contained in this news release. For a
discussion identifying additional important factors that could
cause actual results to differ materially from those anticipated in
the forward-looking statements, see the company's filings with the
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 most
recent Annual Report on Form 10-K 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 Earnings
(unaudited;
in millions, except per share data)
|
|
|
|
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net
sales
|
|
$
18,874
|
|
$
18,991
|
|
$
67,571
|
|
$
65,984
|
|
Cost of
sales1,2
|
|
(16,579)
|
|
(16,689)
|
|
(59,092)
|
|
(57,697)
|
|
Gross profit
|
|
2,295
|
|
2,302
|
|
8,479
|
|
8,287
|
|
Other (expense) income,
net
|
|
(2)
|
|
(9)
|
|
28
|
|
61
|
|
Operating
profit
|
|
2,293
|
|
2,293
|
|
8,507
|
|
8,348
|
|
Interest
expense
|
|
(254)
|
|
(202)
|
|
(916)
|
|
(623)
|
|
Non-service FAS pension
income (expense)3
|
|
111
|
|
109
|
|
443
|
|
(971)
|
|
Other non-operating
(expense) income, net4,5
|
|
(5)
|
|
(10)
|
|
64
|
|
(74)
|
|
Earnings before income
taxes
|
|
2,145
|
|
2,190
|
|
8,098
|
|
6,680
|
|
Income tax
expense
|
|
(279)
|
|
(278)
|
|
(1,178)
|
|
(948)
|
|
Net
earnings
|
|
$
1,866
|
|
$
1,912
|
|
$
6,920
|
|
$
5,732
|
|
Effective tax
rate
|
|
13.0 %
|
|
12.7 %
|
|
14.5 %
|
|
14.2 %
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
7.61
|
|
$
7.44
|
|
$
27.65
|
|
$
21.74
|
|
Diluted
|
|
$
7.58
|
|
$
7.40
|
|
$
27.55
|
|
$
21.66
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
245.2
|
|
257.1
|
|
250.3
|
|
263.7
|
|
Diluted
|
|
246.1
|
|
258.3
|
|
251.2
|
|
264.6
|
|
|
|
|
|
|
|
|
|
|
|
Common shares reported
in stockholders'
equity at end of
period
|
|
|
|
|
|
240
|
|
254
|
|
|
|
|
|
|
|
|
|
|
1
|
In the quarter and year
ended Dec. 31, 2023, the company recognized severance and other
charges of $92 million ($73 million, or $0.30 per share, after-tax)
associated with the planned elimination of certain positions
through involuntary actions across the company and asset impairment
charges. In the quarter and year ended Dec. 31, 2022, the company
recognized severance and other charges of $100 million ($79
million, or $0.31 per share, after-tax) related to certain actions
at the company's RMS business segment, which included severance
costs for the planned reduction of certain positions and asset
impairment charges.
|
2
|
In the quarter and year
ended Dec. 31, 2023, the company recognized net gains of $34
million ($26 million, or $0.10 per share, after-tax) and $74
million ($56 million, or $0.22 per share, after-tax), compared to
net gains of $19 million ($14 million, or $0.06 per share,
after-tax) and net losses of $176 million ($132 million, or $0.50
per share, after-tax) in the quarter and year ended Dec. 31, 2022
due to changes in the fair value of net assets and liabilities for
deferred compensation plans.
|
3
|
In the year ended Dec.
31, 2022, the company recognized a $1.5 billion ($1.2 billion, or
$4.33 per share, after-tax) pension settlement charge.
|
4
|
In the quarter and year
ended Dec. 31, 2023, the company recognized net losses of
$40 million ($30 million, or $0.12 per share, after-tax)
and $64 million ($48 million, or $0.19 per share,
after-tax), compared to net losses of $48 million ($36 million, or
0.14 per share, after-tax) and $114 million ($86 million, or $0.33
per share, after-tax) in the quarter and year ended Dec. 31, 2022
due to changes in the fair value of early-stage company
investments.
|
5
|
In the year ended Dec.
31, 2022, the company recognized a charge of $34 million ($26
million, or $0.10 per share, after-tax) due to a debt refinancing
transaction in the second quarter of 2022.
|
|
Lockheed Martin
Corporation
Business Segment
Summary Operating Results
(unaudited;
in millions)
|
|
|
|
|
|
Quarters Ended Dec.
31,
|
|
|
|
Years Ended Dec.
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
%
Change
|
|
2023
|
|
2022
|
|
%
Change
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
7,613
|
|
$
7,635
|
|
— %
|
|
$ 27,474
|
|
$ 26,987
|
|
2 %
|
|
Missiles and Fire
Control
|
|
3,171
|
|
3,287
|
|
(4 %)
|
|
11,253
|
|
11,317
|
|
(1 %)
|
|
Rotary and Mission
Systems
|
|
4,711
|
|
4,803
|
|
(2 %)
|
|
16,239
|
|
16,148
|
|
1 %
|
|
Space
|
|
3,379
|
|
3,266
|
|
3 %
|
|
12,605
|
|
11,532
|
|
9 %
|
|
Total net
sales
|
|
$
18,874
|
|
$ 18,991
|
|
(1 %)
|
|
$ 67,571
|
|
$ 65,984
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
$
761
|
|
$
816
|
|
(7 %)
|
|
$
2,825
|
|
$
2,867
|
|
(1 %)
|
|
Missiles and Fire
Control
|
|
395
|
|
451
|
|
(12 %)
|
|
1,541
|
|
1,637
|
|
(6 %)
|
|
Rotary and Mission
Systems
|
|
579
|
|
567
|
|
2 %
|
|
1,865
|
|
1,906
|
|
(2 %)
|
|
Space
|
|
307
|
|
234
|
|
31 %
|
|
1,158
|
|
1,057
|
|
10 %
|
|
Total business
segment operating
profit1
|
|
2,042
|
|
2,068
|
|
(1 %)
|
|
7,389
|
|
7,467
|
|
(1 %)
|
|
Unallocated
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS operating
adjustment
|
|
415
|
|
428
|
|
|
|
1,660
|
|
1,709
|
|
|
|
Severance and other
charges
|
|
(92)
|
|
(100)
|
|
|
|
(92)
|
|
(100)
|
|
|
|
Intangible asset
amortization expense
|
|
(62)
|
|
(62)
|
|
|
|
(247)
|
|
(248)
|
|
|
|
Other,
net1,2
|
|
(10)
|
|
(41)
|
|
|
|
(203)
|
|
(480)
|
|
|
|
Total unallocated
items
|
|
251
|
|
225
|
|
12 %
|
|
1,118
|
|
881
|
|
27 %
|
|
Total consolidated
operating
profit
|
|
$
2,293
|
|
$
2,293
|
|
— %
|
|
$
8,507
|
|
$
8,348
|
|
2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeronautics
|
|
10.0 %
|
|
10.7 %
|
|
|
|
10.3 %
|
|
10.6 %
|
|
|
|
Missiles and Fire
Control
|
|
12.5 %
|
|
13.7 %
|
|
|
|
13.7 %
|
|
14.5 %
|
|
|
|
Rotary and Mission
Systems
|
|
12.3 %
|
|
11.8 %
|
|
|
|
11.5 %
|
|
11.8 %
|
|
|
|
Space
|
|
9.1 %
|
|
7.2 %
|
|
|
|
9.2 %
|
|
9.2 %
|
|
|
|
Total business
segment operating
margin
|
|
10.8 %
|
|
10.9 %
|
|
|
|
10.9 %
|
|
11.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consolidated
operating
margin
|
|
12.1 %
|
|
12.1 %
|
|
|
|
12.6 %
|
|
12.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Effective Jan. 1, 2023,
the company reclassed intangible asset amortization expense out of
the business segment operating profit and into the unallocated
items line item to better align with how management views and
manages the business.
|
2
|
In the quarter and year
ended Dec. 31, 2023, the company recognized net gains of $34
million ($26 million, or $0.10 per share, after-tax) and $74
million ($56 million, or $0.22 per share, after-tax), compared to
net gains of $19 million ($14 million, or $0.06 per share,
after-tax) and net losses of $176 million ($132 million, or $0.50
per share, after-tax) in the quarter and year ended Dec. 31, 2022
due to changes in the fair value of net assets and liabilities for
deferred compensation plans.
|
|
Lockheed Martin
Corporation
Selected Financial
Data
(unaudited;
in millions)
|
|
|
|
|
|
2024
Outlook
|
|
2023
Actual
|
|
Total FAS income CAS
cost
|
|
|
|
|
|
FAS pension
income
|
|
$
—
|
|
$
378
|
|
Less: CAS pension
cost
|
|
1,685
|
|
1,725
|
|
Total FAS/CAS pension
adjustment
|
|
$
1,685
|
|
$
2,103
|
|
|
|
|
|
|
|
Service and
non-service cost reconciliation
|
|
|
|
|
|
FAS pension service
cost
|
|
$
(60)
|
|
$
(65)
|
|
Less: CAS pension
cost
|
|
1,685
|
|
1,725
|
|
Total FAS/CAS pension
operating adjustment
|
|
1,625
|
|
1,660
|
|
Non-service FAS pension
income
|
|
60
|
|
443
|
|
Total FAS/CAS pension
adjustment
|
|
$
1,685
|
|
$
2,103
|
|
Lockheed Martin
Corporation
Consolidated Balance
Sheets
(unaudited,
in millions, except par value)
|
|
|
|
|
|
Dec. 31,
2023
|
|
Dec.
31,
2022
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
1,442
|
|
$
2,547
|
|
Receivables,
net
|
|
2,132
|
|
2,505
|
|
Contract
assets
|
|
13,183
|
|
12,318
|
|
Inventories
|
|
3,132
|
|
3,088
|
|
Other current
assets
|
|
632
|
|
533
|
|
Total current
assets
|
|
20,521
|
|
20,991
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
8,370
|
|
7,975
|
|
Goodwill
|
|
10,799
|
|
10,780
|
|
Intangible assets,
net
|
|
2,212
|
|
2,459
|
|
Deferred income
taxes
|
|
2,953
|
|
3,744
|
|
Other noncurrent
assets
|
|
7,601
|
|
6,931
|
|
Total
assets
|
|
$
52,456
|
|
$
52,880
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
2,312
|
|
$
2,117
|
|
Salaries, benefits and
payroll taxes
|
|
3,133
|
|
3,075
|
|
Contract
liabilities
|
|
9,190
|
|
8,488
|
|
Current maturities of
long-term debt
|
|
168
|
|
118
|
|
Other current
liabilities
|
|
2,134
|
|
2,089
|
|
Total current
liabilities
|
|
16,937
|
|
15,887
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
17,291
|
|
15,429
|
|
Accrued pension
liabilities
|
|
6,162
|
|
5,472
|
|
Other noncurrent
liabilities
|
|
5,231
|
|
6,826
|
|
Total
liabilities
|
|
45,621
|
|
43,614
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Common stock, $1 par
value per share
|
|
240
|
|
254
|
|
Additional paid-in
capital
|
|
—
|
|
92
|
|
Retained
earnings
|
|
15,398
|
|
16,943
|
|
Accumulated other
comprehensive loss
|
|
(8,803)
|
|
(8,023)
|
|
Total stockholders'
equity
|
|
6,835
|
|
9,266
|
|
Total liabilities and
equity
|
|
$
52,456
|
|
$
52,880
|
|
|
|
|
|
|
Lockheed Martin
Corporation
Consolidated
Statements of Cash Flows
(unaudited;
in millions)
|
|
|
Years Ended Dec.
31,
|
|
|
2023
|
|
2022
|
Operating
activities
|
|
|
|
|
Net earnings
|
|
$
6,920
|
|
$
5,732
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities
|
|
|
|
|
Depreciation and
amortization
|
|
1,430
|
|
1,404
|
Stock-based
compensation
|
|
265
|
|
238
|
Deferred income
taxes
|
|
(498)
|
|
(757)
|
Pension settlement
charge
|
|
—
|
|
1,470
|
Severance and other
charges
|
|
92
|
|
100
|
Changes in assets and
liabilities
|
|
|
|
|
Receivables,
net
|
|
373
|
|
(542)
|
Contract
assets
|
|
(865)
|
|
(1,739)
|
Inventories
|
|
(44)
|
|
(107)
|
Accounts
payable
|
|
151
|
|
1,274
|
Contract
liabilities
|
|
702
|
|
381
|
Income
taxes
|
|
(133)
|
|
148
|
Qualified defined
benefit pension plans
|
|
(378)
|
|
(412)
|
Other, net
|
|
(95)
|
|
612
|
Net cash provided
by operating activities
|
|
7,920
|
|
7,802
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Capital
expenditures
|
|
(1,691)
|
|
(1,670)
|
Other, net
|
|
(3)
|
|
(119)
|
Net cash used for
investing activities
|
|
(1,694)
|
|
(1,789)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Issuance of long-term
debt, net of related costs
|
|
1,975
|
|
6,211
|
Repayments of long-term
debt
|
|
(115)
|
|
(2,250)
|
Repurchases of common
stock
|
|
(6,000)
|
|
(7,900)
|
Dividends
paid
|
|
(3,056)
|
|
(3,016)
|
Other, net
|
|
(135)
|
|
(115)
|
Net cash used for
financing activities
|
|
(7,331)
|
|
(7,070)
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
(1,105)
|
|
(1,057)
|
Cash and cash
equivalents at beginning of period
|
|
2,547
|
|
3,604
|
Cash and cash
equivalents at end of period
|
|
$
1,442
|
|
$
2,547
|
|
|
|
|
|
|
Lockheed Martin
Corporation
Other Financial and
Operating Information
(unaudited;
in millions, except for aircraft deliveries and
weeks)
|
|
|
|
Backlog
|
|
Dec.
31,
2023
|
|
Dec.
31,
2022
|
|
Aeronautics
|
|
$
60,156
|
|
$
56,630
|
|
Missiles and Fire
Control
|
|
32,229
|
|
28,735
|
|
Rotary and Mission
Systems
|
|
37,726
|
|
34,949
|
|
Space
|
|
30,456
|
|
29,684
|
|
Total
backlog
|
|
$
160,567
|
|
$
149,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarters Ended Dec.
31,
|
|
Years Ended Dec.
31,
|
|
Aircraft
Deliveries
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
F-35
|
|
18
|
|
53
|
|
98
|
|
141
|
|
F-16
|
|
3
|
|
—
|
|
5
|
|
—
|
|
C-130J
|
|
8
|
|
6
|
|
21
|
|
24
|
|
Government helicopter
programs
|
|
28
|
|
24
|
|
52
|
|
86
|
|
Commercial helicopter
programs
|
|
2
|
|
—
|
|
6
|
|
—
|
|
International military
helicopter programs
|
|
10
|
|
4
|
|
11
|
|
9
|
|
Number of Weeks in
Reporting Period1
|
|
2024
|
|
2023
|
|
2022
|
|
First
quarter
|
|
13
|
|
12
|
|
12
|
|
Second
quarter
|
|
13
|
|
13
|
|
13
|
|
Third
quarter
|
|
13
|
|
13
|
|
13
|
|
Fourth
quarter
|
|
13
|
|
14
|
|
14
|
|
|
|
|
|
|
|
|
1
|
Calendar quarters are
typically comprised of 13 weeks. However, the company closes its
books and records on the last Sunday of each month, except for the
month of Dec., as its fiscal year ends on Dec. 31. As a result, the
number of weeks in a reporting quarter may vary slightly during the
year and for comparable prior year periods.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lockheed-martin-reports-fourth-quarter-and-full-year-2023-financial-results-302041229.html
SOURCE Lockheed Martin