RESTON, Va., July 29, 2020 /PRNewswire/ -- General
Dynamics (NYSE: GD) today reported second-quarter 2020 net earnings
of $625 million on revenue of
$9.3 billion. Diluted earnings per
share (EPS) were $2.18.
"We have continued to operate throughout the COVID-19 pandemic,
meeting our customers' needs while keeping our people as safe as
possible," said Phebe N. Novakovic,
chairman and chief executive officer. "We are focused on the basics
of early and aggressive cost management, performance and cash
conversion as we manage through this period."
Aircraft deliveries
The company delivered 32 aircraft
during the quarter, up from 23 last quarter, despite continued
pandemic-related challenges to making international deliveries.
Cash
Net cash provided by operating activities in the
quarter totaled $843 million,
$552 million better than the year-ago
quarter. Free cash flow from operations, defined as net cash
provided by operating activities less capital expenditures, was
$622 million, 100% of net earnings.
The company ended the quarter with $2.3
billion of cash on hand, $1.6
billion more than at the end of second-quarter 2019.
Backlog
Total backlog at the end of second-quarter
2020 was $82.7 billion, 22% higher
than the year-ago quarter. Estimated potential contract value,
representing management's estimate of value in unfunded indefinite
delivery, indefinite quantity (IDIQ) contracts and unexercised
options, was $49.6 billion. Total
estimated contract value, the sum of all backlog components, was
$132.2 billion at the end of the
quarter, approximately 30% more than the year-ago quarter.
Significant awards in the quarter included a contract to
construct the first two Columbia-class submarines which will be
worth $11.5 billion when funding is
received from Congress; $320 million
to upgrade Stryker vehicles to the double-V-hull A1 configuration;
$215 million from the U.S. Army to
produce Hydra-70 rockets; $175
million from the Army for computing and communications
equipment under the Common Hardware Systems-5 program; $160 million in separate contracts from the U.S.
Navy to provide missile components for the Aegis Ballistic Missile
Defense program and gun systems for the F-35 Joint Strike Fighter;
$130 million from the Centers for
Medicare and Medicaid Services for several contracts, including
support of the agency's Healthcare Integrated General Ledger
Accounting System (HIGLAS) application; and $125 million for several key contracts to provide
intelligence services to classified customers.
About General Dynamics
Headquartered in Reston, 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; IT services; C4ISR solutions; and
shipbuilding and ship repair. General Dynamics employs
approximately 100,000 people worldwide and generated $39.4 billion in revenue in 2019. More
information is available at www.gd.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
risks and uncertainties that 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, its
Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K.
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 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 2020 financial results conference call at 9 a.m. EDT
on Wednesday, July 29, 2020. The
webcast will be a listen-only audio event available at
www.gd.com. An on-demand replay of the webcast will be
available one hour after the end of the call and end on
August 5, 2020. To hear a recording
of the conference call by telephone, please call 1-877-344-7529
(international: 1-412-317-0088) passcode 10144907. Charts furnished
to investors and securities analysts in connection with General
Dynamics' announcement of its financial results are available
at www.gd.com.
|
EXHIBIT
A
|
|
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
|
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
Three Months
Ended
|
|
Variance
|
|
June 28,
2020
|
|
June 30,
2019
|
|
$
|
|
%
|
|
Revenue
|
$
|
9,264
|
|
|
$
|
9,555
|
|
|
$
|
(291)
|
|
|
(3.0)
|
%
|
|
Operating costs and
expenses
|
(8,423)
|
|
|
(8,465)
|
|
|
42
|
|
|
|
|
Operating
earnings
|
841
|
|
|
1,090
|
|
|
(249)
|
|
|
(22.8)
|
%
|
|
Interest,
net
|
(132)
|
|
|
(119)
|
|
|
(13)
|
|
|
|
|
Other, net
|
18
|
|
|
12
|
|
|
6
|
|
|
|
|
Earnings before
income tax
|
727
|
|
|
983
|
|
|
(256)
|
|
|
(26.0)
|
%
|
|
Provision for income
tax, net
|
(102)
|
|
|
(177)
|
|
|
75
|
|
|
|
|
Net
earnings
|
$
|
625
|
|
|
$
|
806
|
|
|
$
|
(181)
|
|
|
(22.5)
|
%
|
|
Earnings per
share—basic
|
$
|
2.18
|
|
|
$
|
2.80
|
|
|
$
|
(0.62)
|
|
|
(22.1)
|
%
|
|
Basic weighted
average shares outstanding
|
286.4
|
|
|
288.1
|
|
|
|
|
|
|
Earnings per
share—diluted
|
$
|
2.18
|
|
|
$
|
2.77
|
|
|
$
|
(0.59)
|
|
|
(21.3)
|
%
|
|
Diluted weighted
average shares outstanding
|
286.9
|
|
|
290.8
|
|
|
|
|
|
|
EXHIBIT
B
|
|
CONSOLIDATED
STATEMENT OF EARNINGS - (UNAUDITED)
|
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
Six Months
Ended
|
|
Variance
|
|
June 28,
2020
|
|
June 30,
2019
|
|
$
|
|
%
|
|
Revenue
|
$
|
18,013
|
|
|
$
|
18,816
|
|
|
$
|
(803)
|
|
|
(4.3)
|
%
|
|
Operating costs and
expenses
|
(16,231)
|
|
|
(16,712)
|
|
|
481
|
|
|
|
|
Operating
earnings
|
1,782
|
|
|
2,104
|
|
|
(322)
|
|
|
(15.3)
|
%
|
|
Interest,
net
|
(239)
|
|
|
(236)
|
|
|
(3)
|
|
|
|
|
Other, net
|
32
|
|
|
30
|
|
|
2
|
|
|
|
|
Earnings before
income tax
|
1,575
|
|
|
1,898
|
|
|
(323)
|
|
|
(17.0)
|
%
|
|
Provision for income
tax, net
|
(244)
|
|
|
(347)
|
|
|
103
|
|
|
|
|
Net
earnings
|
$
|
1,331
|
|
|
$
|
1,551
|
|
|
$
|
(220)
|
|
|
(14.2)
|
%
|
|
Earnings per
share—basic
|
$
|
4.63
|
|
|
$
|
5.39
|
|
|
$
|
(0.76)
|
|
|
(14.1)
|
%
|
|
Basic weighted
average shares outstanding
|
287.5
|
|
|
288.0
|
|
|
|
|
|
|
Earnings per
share—diluted
|
$
|
4.61
|
|
|
$
|
5.33
|
|
|
$
|
(0.72)
|
|
|
(13.5)
|
%
|
|
Diluted weighted
average shares outstanding
|
288.5
|
|
|
290.8
|
|
|
|
|
|
|
EXHIBIT
C
|
|
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
|
|
DOLLARS IN
MILLIONS
|
|
|
Three Months
Ended
|
|
Variance
|
|
June 28,
2020
|
|
June 30,
2019
|
|
$
|
|
%
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Aerospace
|
$
|
1,974
|
|
|
$
|
2,136
|
|
|
$
|
(162)
|
|
|
(7.6)
|
%
|
|
Combat
Systems
|
1,754
|
|
|
1,659
|
|
|
95
|
|
|
5.7
|
%
|
|
Information
Technology
|
1,884
|
|
|
2,158
|
|
|
(274)
|
|
|
(12.7)
|
%
|
|
Mission
Systems
|
1,181
|
|
|
1,277
|
|
|
(96)
|
|
|
(7.5)
|
%
|
|
Marine
Systems
|
2,471
|
|
|
2,325
|
|
|
146
|
|
|
6.3
|
%
|
|
Total
|
$
|
9,264
|
|
|
$
|
9,555
|
|
|
$
|
(291)
|
|
|
(3.0)
|
%
|
|
Operating
earnings:
|
|
|
|
|
|
|
|
|
Aerospace
|
$
|
159
|
|
|
$
|
331
|
|
|
$
|
(172)
|
|
|
(52.0)
|
%
|
|
Combat
Systems
|
239
|
|
|
242
|
|
|
(3)
|
|
|
(1.2)
|
%
|
|
Information
Technology
|
83
|
|
|
154
|
|
|
(71)
|
|
|
(46.1)
|
%
|
|
Mission
Systems
|
164
|
|
|
162
|
|
|
2
|
|
|
1.2
|
%
|
|
Marine
Systems
|
200
|
|
|
197
|
|
|
3
|
|
|
1.5
|
%
|
|
Corporate
|
(4)
|
|
|
4
|
|
|
(8)
|
|
|
(200.0)
|
%
|
|
Total
|
$
|
841
|
|
|
$
|
1,090
|
|
|
$
|
(249)
|
|
|
(22.8)
|
%
|
|
Operating
margin:
|
|
|
|
|
|
|
|
|
Aerospace
|
8.1
|
%
|
|
15.5
|
%
|
|
|
|
|
|
Combat
Systems
|
13.6
|
%
|
|
14.6
|
%
|
|
|
|
|
|
Information
Technology
|
4.4
|
%
|
|
7.1
|
%
|
|
|
|
|
|
Mission
Systems
|
13.9
|
%
|
|
12.7
|
%
|
|
|
|
|
|
Marine
Systems
|
8.1
|
%
|
|
8.5
|
%
|
|
|
|
|
|
Total
|
9.1
|
%
|
|
11.4
|
%
|
|
|
|
|
|
EXHIBIT
D
|
|
REVENUE AND
OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
|
|
DOLLARS IN
MILLIONS
|
|
|
Six Months
Ended
|
|
Variance
|
|
June 28,
2020
|
|
June 30,
2019
|
|
$
|
|
%
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Aerospace
|
$
|
3,665
|
|
|
$
|
4,376
|
|
|
$
|
(711)
|
|
|
(16.2)
|
%
|
|
Combat
Systems
|
3,462
|
|
|
3,295
|
|
|
167
|
|
|
5.1
|
%
|
|
Information
Technology
|
3,872
|
|
|
4,327
|
|
|
(455)
|
|
|
(10.5)
|
%
|
|
Mission
Systems
|
2,297
|
|
|
2,435
|
|
|
(138)
|
|
|
(5.7)
|
%
|
|
Marine
Systems
|
4,717
|
|
|
4,383
|
|
|
334
|
|
|
7.6
|
%
|
|
Total
|
$
|
18,013
|
|
|
$
|
18,816
|
|
|
$
|
(803)
|
|
|
(4.3)
|
%
|
|
Operating
earnings:
|
|
|
|
|
|
|
|
|
Aerospace
|
$
|
399
|
|
|
$
|
659
|
|
|
$
|
(260)
|
|
|
(39.5)
|
%
|
|
Combat
Systems
|
462
|
|
|
448
|
|
|
14
|
|
|
3.1
|
%
|
|
Information
Technology
|
233
|
|
|
310
|
|
|
(77)
|
|
|
(24.8)
|
%
|
|
Mission
Systems
|
312
|
|
|
310
|
|
|
2
|
|
|
0.6
|
%
|
|
Marine
Systems
|
384
|
|
|
377
|
|
|
7
|
|
|
1.9
|
%
|
|
Corporate
|
(8)
|
|
|
—
|
|
|
(8)
|
|
|
—
|
%
|
|
Total
|
$
|
1,782
|
|
|
$
|
2,104
|
|
|
$
|
(322)
|
|
|
(15.3)
|
%
|
|
Operating
margin:
|
|
|
|
|
|
|
|
|
Aerospace
|
10.9
|
%
|
|
15.1
|
%
|
|
|
|
|
|
Combat
Systems
|
13.3
|
%
|
|
13.6
|
%
|
|
|
|
|
|
Information
Technology
|
6.0
|
%
|
|
7.2
|
%
|
|
|
|
|
|
Mission
Systems
|
13.6
|
%
|
|
12.7
|
%
|
|
|
|
|
|
Marine
Systems
|
8.1
|
%
|
|
8.6
|
%
|
|
|
|
|
|
Total
|
9.9
|
%
|
|
11.2
|
%
|
|
|
|
|
|
EXHIBIT
E
|
|
CONSOLIDATED
BALANCE SHEET
|
|
DOLLARS IN
MILLIONS
|
|
|
(Unaudited)
|
|
|
|
June 28,
2020
|
|
December 31,
2019
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
equivalents
|
$
|
2,300
|
|
|
$
|
902
|
|
|
Accounts
receivable
|
3,515
|
|
|
3,544
|
|
|
Unbilled
receivables
|
7,715
|
|
|
7,857
|
|
|
Inventories
|
6,666
|
|
|
6,306
|
|
|
Other current
assets
|
939
|
|
|
1,171
|
|
|
Total current
assets
|
21,135
|
|
|
19,780
|
|
|
Noncurrent
assets:
|
|
|
|
|
Property, plant and
equipment, net
|
4,721
|
|
|
4,475
|
|
|
Intangible assets,
net
|
2,197
|
|
|
2,315
|
|
|
Goodwill
|
19,718
|
|
|
19,677
|
|
|
Other
assets
|
2,451
|
|
|
2,594
|
|
|
Total noncurrent
assets
|
29,087
|
|
|
29,061
|
|
|
Total
assets
|
$
|
50,222
|
|
|
$
|
48,841
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
|
4,121
|
|
|
$
|
2,920
|
|
|
Accounts
payable
|
2,383
|
|
|
3,162
|
|
|
Customer advances and
deposits
|
6,212
|
|
|
7,148
|
|
|
Other current
liabilities
|
3,890
|
|
|
3,571
|
|
|
Total current
liabilities
|
16,606
|
|
|
16,801
|
|
|
Noncurrent
liabilities:
|
|
|
|
|
Long-term
debt
|
10,470
|
|
|
9,010
|
|
|
Other
liabilities
|
9,256
|
|
|
9,453
|
|
|
Total noncurrent
liabilities
|
19,726
|
|
|
18,463
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common
stock
|
482
|
|
|
482
|
|
|
Surplus
|
3,050
|
|
|
3,039
|
|
|
Retained
earnings
|
32,294
|
|
|
31,633
|
|
|
Treasury
stock
|
(17,809)
|
|
|
(17,358)
|
|
|
Accumulated other
comprehensive loss
|
(4,127)
|
|
|
(4,219)
|
|
|
Total shareholders'
equity
|
13,890
|
|
|
13,577
|
|
|
Total liabilities
and shareholders' equity
|
$
|
50,222
|
|
|
$
|
48,841
|
|
|
EXHIBIT
F
|
|
CONSOLIDATED
STATEMENT OF CASH FLOWS - (UNAUDITED)
|
|
DOLLARS IN
MILLIONS
|
|
|
Six Months
Ended
|
|
June 28,
2020
|
|
June 30,
2019
|
|
Cash flows from
operating activities—continuing operations:
|
|
|
|
|
Net earnings
|
$
|
1,331
|
|
|
$
|
1,551
|
|
|
Adjustments to
reconcile net earnings to net cash from operating
activities:
|
|
|
|
|
Depreciation
of property, plant and equipment
|
254
|
|
|
232
|
|
|
Amortization
of intangible and finance lease right-of-use assets
|
177
|
|
|
183
|
|
|
Equity-based
compensation expense
|
61
|
|
|
72
|
|
|
Deferred
income tax benefit
|
(83)
|
|
|
(17)
|
|
|
(Increase) decrease in
assets, net of effects of business acquisitions:
|
|
|
|
|
Accounts
receivable
|
(1)
|
|
|
64
|
|
|
Unbilled
receivables
|
160
|
|
|
(1,074)
|
|
|
Inventories
|
(433)
|
|
|
(556)
|
|
|
Increase (decrease) in
liabilities, net of effects of business acquisitions:
|
|
|
|
|
Accounts
payable
|
(782)
|
|
|
(301)
|
|
|
Customer
advances and deposits
|
(863)
|
|
|
(607)
|
|
|
Other, net
|
356
|
|
|
(51)
|
|
|
Net cash provided
(used) by operating activities
|
177
|
|
|
(504)
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
(406)
|
|
|
(362)
|
|
|
Other, net
|
184
|
|
|
(1)
|
|
|
Net cash used by
investing activities
|
(222)
|
|
|
(363)
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from
fixed-rate notes
|
3,960
|
|
|
—
|
|
|
Repayment of fixed-rate
notes
|
(2,000)
|
|
|
—
|
|
|
Proceeds from
commercial paper, net
|
816
|
|
|
1,394
|
|
|
Dividends
paid
|
(610)
|
|
|
(563)
|
|
|
Purchases of common
stock
|
(501)
|
|
|
(231)
|
|
|
Repayment of
floating-rate notes
|
(500)
|
|
|
—
|
|
|
Proceeds from
commercial paper, gross (maturities greater than 3
months)
|
420
|
|
|
—
|
|
|
Other, net
|
(118)
|
|
|
30
|
|
|
Net cash provided by
financing activities
|
1,467
|
|
|
630
|
|
|
Net cash used by
discontinued operations
|
(24)
|
|
|
(24)
|
|
|
Net increase
(decrease) in cash and equivalents
|
1,398
|
|
|
(261)
|
|
|
Cash and
equivalents at beginning of period
|
902
|
|
|
963
|
|
|
Cash and
equivalents at end of period
|
$
|
2,300
|
|
|
$
|
702
|
|
|
EXHIBIT
G
|
|
ADDITIONAL
FINANCIAL INFORMATION - (UNAUDITED)
|
|
DOLLARS IN
MILLIONS, EXCEPT PER SHARE AMOUNTS
|
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
|
June 28,
2020
|
|
December 31,
2019
|
|
|
|
|
|
Debt-to-equity
(a)
|
105.0
|
%
|
|
87.9
|
%
|
|
|
|
|
|
Debt-to-capital
(b)
|
51.2
|
%
|
|
46.8
|
%
|
|
|
|
|
|
Book value per share
(c)
|
48.41
|
|
|
$
|
46.88
|
|
|
|
|
|
|
Shares
outstanding
|
286,932,436
|
|
|
289,610,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Income tax payments,
net
|
$
|
13
|
|
|
$
|
360
|
|
|
$
|
56
|
|
|
$
|
397
|
|
|
Company-sponsored
research and
development (d)
|
$
|
116
|
|
|
$
|
120
|
|
|
$
|
194
|
|
|
$
|
242
|
|
|
Return on sales
(e)
|
6.7
|
%
|
|
8.4
|
%
|
|
7.4
|
%
|
|
8.2
|
%
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures:
|
|
|
|
|
|
|
|
|
Second
Quarter
|
|
Six
Months
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Earnings before
interest, taxes,
depreciation and amortization:
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
625
|
|
|
$
|
806
|
|
|
$
|
1,331
|
|
|
$
|
1,551
|
|
|
Interest,
net
|
132
|
|
|
119
|
|
|
239
|
|
|
236
|
|
|
Provision for income
tax, net
|
102
|
|
|
177
|
|
|
244
|
|
|
347
|
|
|
Depreciation of
property, plant and
equipment
|
132
|
|
|
118
|
|
|
254
|
|
|
232
|
|
|
Amortization of
intangible and
finance lease right-of-use assets
|
87
|
|
|
92
|
|
|
177
|
|
|
183
|
|
|
Earnings before interest, taxes,
depreciation and amortization (f)
|
$
|
1,078
|
|
|
$
|
1,312
|
|
|
$
|
2,245
|
|
|
$
|
2,549
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
from operations:
|
|
|
|
|
|
|
|
|
Net cash provided
(used) by
operating activities
|
$
|
843
|
|
|
$
|
291
|
|
|
$
|
177
|
|
|
$
|
(504)
|
|
|
Capital
expenditures
|
(221)
|
|
|
(181)
|
|
|
(406)
|
|
|
(362)
|
|
|
Free cash flow from
operations (g)
|
$
|
622
|
|
|
$
|
110
|
|
|
$
|
(229)
|
|
|
$
|
(866)
|
|
|
|
|
|
(a)
|
Debt-to-equity ratio
is calculated as total debt divided by total equity as of the end
of the period.
|
|
|
|
(b)
|
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.
|
|
|
|
(c)
|
Book value per share
is calculated as total equity divided by total outstanding shares
as of the end of the period.
|
|
|
|
(d)
|
Includes
independent research and development and Aerospace
product-development costs.
|
|
|
|
(e)
|
Return on sales is
calculated as net earnings divided by revenue.
|
|
|
|
(f)
|
We believe earnings
before interest, taxes, depreciation and amortization (EBITDA) is a
useful measure for investors because it provides another measure of
our profitability and our ability to service our debt. We calculate
EBITDA by adding back interest, taxes, depreciation and
amortization to net earnings. The most directly comparable GAAP
measure to EBITDA is net earnings.
|
|
|
|
(g)
|
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 key performance measure in evaluating management.
The most directly comparable GAAP measure to free cash flow from
operations is net cash provided (used) by operating
activities.
|
|
EXHIBIT
H
|
|
BACKLOG -
(UNAUDITED)
|
|
DOLLARS IN
MILLIONS
|
|
|
|
Funded
|
|
Unfunded
|
|
Total
Backlog
|
|
Estimated
Potential
Contract Value*
|
|
Total
Estimated
Contract Value
|
|
Second Quarter
2020:
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
11,874
|
|
|
$
|
239
|
|
|
$
|
12,113
|
|
|
$
|
2,834
|
|
|
$
|
14,947
|
|
|
Combat
Systems
|
|
13,863
|
|
|
242
|
|
|
14,105
|
|
|
6,399
|
|
|
20,504
|
|
|
Information
Technology
|
|
5,464
|
|
|
3,463
|
|
|
8,927
|
|
|
18,392
|
|
|
27,319
|
|
|
Mission
Systems
|
|
4,856
|
|
|
185
|
|
|
5,041
|
|
|
7,510
|
|
|
12,551
|
|
|
Marine
Systems
|
|
25,118
|
|
|
17,365
|
|
|
42,483
|
|
|
14,441
|
|
|
56,924
|
|
|
Total
|
|
$
|
61,175
|
|
|
$
|
21,494
|
|
|
$
|
82,669
|
|
|
$
|
49,576
|
|
|
$
|
132,245
|
|
|
First Quarter
2020:
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
12,998
|
|
|
$
|
274
|
|
|
$
|
13,272
|
|
|
$
|
2,837
|
|
|
$
|
16,109
|
|
|
Combat
Systems
|
|
14,373
|
|
|
244
|
|
|
14,617
|
|
|
4,253
|
|
|
18,870
|
|
|
Information
Technology
|
|
5,375
|
|
|
4,127
|
|
|
9,502
|
|
|
18,638
|
|
|
28,140
|
|
|
Mission
Systems
|
|
4,947
|
|
|
229
|
|
|
5,176
|
|
|
7,957
|
|
|
13,133
|
|
|
Marine
Systems
|
|
26,112
|
|
|
17,053
|
|
|
43,165
|
|
|
4,460
|
|
|
47,625
|
|
|
Total
|
|
$
|
63,805
|
|
|
$
|
21,927
|
|
|
$
|
85,732
|
|
|
$
|
38,145
|
|
|
$
|
123,877
|
|
|
Second Quarter
2019:
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
|
|
$
|
11,932
|
|
|
$
|
213
|
|
|
$
|
12,145
|
|
|
$
|
2,079
|
|
|
$
|
14,224
|
|
|
Combat
Systems
|
|
14,794
|
|
|
438
|
|
|
15,232
|
|
|
4,113
|
|
|
19,345
|
|
|
Information
Technology
|
|
4,446
|
|
|
4,405
|
|
|
8,851
|
|
|
17,983
|
|
|
26,834
|
|
|
Mission
Systems
|
|
4,925
|
|
|
258
|
|
|
5,183
|
|
|
6,847
|
|
|
12,030
|
|
|
Marine
Systems
|
|
18,344
|
|
|
7,899
|
|
|
26,243
|
|
|
3,223
|
|
|
29,466
|
|
|
Total
|
|
$
|
54,441
|
|
|
$
|
13,213
|
|
|
$
|
67,654
|
|
|
$
|
34,245
|
|
|
$
|
101,899
|
|
|
|
|
|
*
|
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 and other agreements with existing customers to
purchase new aircraft and aircraft services. We recognize options
in backlog when the customer exercises the option and establishes a
firm order. For IDIQ contracts, we evaluate the amount of funding
we expect to receive and include this amount in our estimated
potential contract value. The actual amount of funding received in
the future may be higher or lower than our estimate of potential
contract value.
|
|
EXHIBIT
H-1
BACKLOG - (UNAUDITED)
DOLLARS IN
MILLIONS
|
https://mma.prnewswire.com/media/1220566/Exhibit_H_1.jpg
|
EXHIBIT
H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN
MILLIONS
|
https://mma.prnewswire.com/media/1220564/EXHIBIT_H_2_Aerospace.jpg
https://mma.prnewswire.com/media/1220565/EXHIBIT_H_2_Combat_Systems.jpg
https://mma.prnewswire.com/media/1220567/EXHIBIT_H_2_Information_Technology.jpg
https://mma.prnewswire.com/media/1220569/EXHIBIT_H_2_Mission_Systems.jpg
https://mma.prnewswire.com/media/1220568/EXHIBIT_H_2_Marine_Systems.jpg
https://mma.prnewswire.com/media/1220570/EXHIBIT_H_2_Key.jpg
|
EXHIBIT
I
SECOND QUARTER 2020 SIGNIFICANT ORDERS -
(UNAUDITED)
DOLLARS IN MILLIONS
|
We received the following significant contract awards during the
second quarter of 2020:
Combat Systems:
- $320 from the U.S. Army to
upgrade Stryker vehicles to the double-V-hull A1 configuration. The
contract has a maximum potential value of $2.5 billion.
- $215 from the Army for the
production of Hydra-70 rockets. The contract has a maximum
potential value of $3.4 billion.
- $110 from the U.S. Navy to
provide missile components for the Aegis Ballistic Missile Defense
program.
- $100 for various munitions and
ordnance.
- $50 from the Navy to produce gun
systems for the F-35 Joint Strike Fighter.
Information Technology:
- $120 from the U.S. Air Force for
the Battlefield Information Collection and Exploitation System
(BICES) program to provide intelligence information sharing
capabilities for the Department of Defense (DoD). The contract has
a maximum potential value of $620.
- $130 from the Centers for
Medicare and Medicaid Services (CMS) for several contracts,
including support of the agency's Healthcare Integrated General
Ledger Accounting System (HIGLAS) application.
- $125 for several key contracts to
provide intelligence services to classified customers.
- $50 from the Navy to provide
training and training-related program support.
- $40 to provide IT, cloud support
and network management services for a commercial customer.
Mission Systems:
- $175 from the Army for computing
and communications equipment under the Common Hardware Systems-5
program.
- $105 from the Navy to support the
design and development of fire-control systems for
ballistic-missile submarines for the Navy and the U.K. Royal Navy.
- $60 to provide sustainment
services for the Navy's next-generation Mobile User Objective
System (MUOS) satellite communications system.
- $35 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.
Marine Systems:
- A contract from the Navy to construct the first two
Columbia-class submarines, which will be worth $11.5 billion when funding is received from
Congress.
- $130 from the Navy for capital
expenditures and industrial base development in support of the
Arleigh Burke-class (DDG-51) guided-missile destroyer program.
- $80 from the Navy for Advanced
Nuclear Plant Studies (ANPS) in support of the Columbia-class
submarine program.
- $55 from the Navy to support the
Common Missile Compartment work under joint development for the
Navy and the U.K. Royal Navy.
- $45 from the Navy to provide
ongoing lead yard services for the DDG-51 program.
|
EXHIBIT
J
|
|
AEROSPACE
SUPPLEMENTAL DATA - (UNAUDITED)
|
|
|
|
Second
Quarter
|
|
Six
Months
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Gulfstream
Aircraft Deliveries (units):
|
|
|
|
|
|
|
|
|
|
Large-cabin
aircraft
|
|
26
|
|
|
23
|
|
|
46
|
|
|
50
|
|
|
Mid-cabin
aircraft
|
|
6
|
|
|
8
|
|
|
9
|
|
|
15
|
|
|
Total
|
|
32
|
|
|
31
|
|
|
55
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace
Book-to-Bill:
|
|
|
|
|
|
|
|
|
|
Orders*
|
|
$
|
1,072
|
|
|
$
|
2,198
|
|
|
$
|
2,928
|
|
|
$
|
5,329
|
|
|
Revenue (excluding
pre-owned aircraft sales)
|
|
1,974
|
|
|
2,134
|
|
|
3,665
|
|
|
4,332
|
|
|
Book-to-Bill
Ratio
|
|
0.54x
|
|
|
1.03x
|
|
|
0.80x
|
|
|
1.23x
|
|
|
|
|
|
*
|
Does not include
customer defaults, liquidated damages, cancellations, foreign
exchange fluctuations and other backlog adjustments.
|
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SOURCE General Dynamics