(State or other jurisdiction | (Commission file number) | (IRS Employer | |||||||||
of incorporation) | Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
Lockheed Martin Corporation | |||||||||||
(Registrant) | |||||||||||
Date: | By: | /s/ H. Edward Paul III | |||||||||
H. Edward Paul III | |||||||||||
Vice President and Controller | |||||||||||
(Duly Authorized Officer and Chief Accounting Officer) |
(in millions, except per share data) | Quarters Ended | |||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||||
Earnings Before Income Taxes | Net Earnings | Diluted EPS | Earnings Before Income Taxes | Net Earnings | Diluted EPS | |||||||||||||||||||||||||||
As Reported (GAAP) | $ | 2,006 | $ | 1,681 | $ | 6.63 | $ | 330 | $ | 309 | $ | 1.16 | ||||||||||||||||||||
Pension settlement charge | — | — | — | 1,470 | 1,156 | 4.33 | ||||||||||||||||||||||||||
Mark-to-market investment losses1 | 28 | 21 | 0.08 | 204 | 153 | 0.57 | ||||||||||||||||||||||||||
Debt transactions costs | 6 | 5 | 0.02 | 34 | 26 | 0.10 | ||||||||||||||||||||||||||
Change in effective tax rate2 | — | — | — | — | 41 | 0.16 | ||||||||||||||||||||||||||
Total Adjustments | 34 | 26 | 0.10 | 1,708 | 1,376 | 5.16 | ||||||||||||||||||||||||||
As Adjusted (Non-GAAP)3 | $ | 2,040 | $ | 1,707 | $ | 6.73 | $ | 2,038 | $ | 1,685 | $ | 6.32 | ||||||||||||||||||||
1 | Includes changes in valuations of the company's net assets and liabilities for deferred compensation plans and early-stage company investments. | |||||||||||||||||||||||||||||||
2 | Represents the impact of the change in the estimated annual effective tax rate primarily due to lower earnings before income taxes associated with the pension settlement charge, which was realized in the third and fourth quarter of 2022. | |||||||||||||||||||||||||||||||
3 | See the "Use of Non-GAAP Financial Measures" section of this news release for more information. | |||||||||||||||||||||||||||||||
(in millions, except per share data) | Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||
Net sales | $ | 16,693 | $ | 15,446 | $ | 31,819 | $ | 30,410 | ||||||||||||||||||||||||
Business segment operating profit1,2 | $ | 1,855 | $ | 1,763 | $ | 3,537 | $ | 3,481 | ||||||||||||||||||||||||
Unallocated items | ||||||||||||||||||||||||||||||||
FAS/CAS operating adjustment | 416 | 425 | 831 | 851 | ||||||||||||||||||||||||||||
Intangible asset amortization expense2 | (62) | (62) | (124) | (124) | ||||||||||||||||||||||||||||
Other, net3 | (74) | (163) | (72) | (312) | ||||||||||||||||||||||||||||
Total unallocated items | 280 | 200 | 635 | 415 | ||||||||||||||||||||||||||||
Consolidated operating profit | $ | 2,135 | $ | 1,963 | $ | 4,172 | $ | 3,896 | ||||||||||||||||||||||||
Net earnings3,4,5 | $ | 1,681 | $ | 309 | $ | 3,370 | $ | 2,042 | ||||||||||||||||||||||||
Diluted earnings per share3,4,5 | $ | 6.63 | $ | 1.16 | $ | 13.24 | $ | 7.62 | ||||||||||||||||||||||||
Cash from operations6 | $ | 1,100 | $ | 1,331 | $ | 2,664 | $ | 2,741 | ||||||||||||||||||||||||
Capital expenditures | (329) | (304) | (623) | (572) | ||||||||||||||||||||||||||||
Free cash flow1,6 | $ | 771 | $ | 1,027 | $ | 2,041 | $ | 2,169 | ||||||||||||||||||||||||
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 | Other, net for the quarters ended June 25, 2023 and June 26, 2022 include net gains of $12 million ($9 million, or $0.04 per share, after-tax) compared to net losses of $61 million ($46 million, or $0.17 per share, after-tax) due to changes in the fair value of net assets and liabilities for deferred compensation plans. | |||||||||||||||||||||||||||||||
4 | Net earnings for the quarters ended June 25, 2023 and June 26, 2022 include net losses of $40 million ($30 million, or $0.12 per share, after-tax) and $143 million ($107 million, or $0.40 per share, after-tax) due to changes in the fair value of early-stage company investments. | |||||||||||||||||||||||||||||||
5 | Net earnings for the quarter ended June 26, 2022 include a $1.5 billion ($1.2 billion, or $4.33 per share, after-tax) noncash, non-operating pension settlement charge related to the purchase of group annuity contracts to transfer $4.3 billion of gross pension obligations and related plan assets to an insurance company on June 24, 2022. | |||||||||||||||||||||||||||||||
6 | See the "Cash Flows and Capital Deployment Activities" section of this news release for more information. | |||||||||||||||||||||||||||||||
(in millions, except per share data) | Current Update1 | April 20231 | ||||||||||||||||||
Net sales | ~$66,250 - $66,750 | ~$65,000 - $66,000 | ||||||||||||||||||
Business segment operating profit2 | ~$7,325 - $7,375 | ~$7,255 - $7,355 | ||||||||||||||||||
Total FAS/CAS pension adjustment3 | ~$2,100 | ~$2,100 | ||||||||||||||||||
Diluted earnings per share | ~$27.00 - $27.20 | ~$26.60 - $26.90 | ||||||||||||||||||
Cash from operations | ≥$8,150 | ≥$8,150 | ||||||||||||||||||
Capital expenditures | ~$(1,950) | ~$(1,950) | ||||||||||||||||||
Free cash flow2 | ≥$6,200 | ≥$6,200 | ||||||||||||||||||
1 | The company’s current 2023 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 company investments. In addition, the outlook reflects no significant reduction in customer budgets or changes in priorities, continued support and funding of the company’s programs, and a statutory tax rate of 21%. It also includes known impacts to the company and broader defense supply chain based on the company’s understanding at the time of this news release and its experience 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 and total expected financial accounting standards (FAS) pension income of approximately $375 million. 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. | |||||||||||||||||||
(in millions) | Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||
Net sales | ||||||||||||||||||||||||||||||||
Aeronautics | $ | 6,875 | $ | 5,862 | $ | 13,144 | $ | 12,263 | ||||||||||||||||||||||||
Missiles and Fire Control | 2,755 | 2,747 | 5,143 | 5,199 | ||||||||||||||||||||||||||||
Rotary and Mission Systems | 3,897 | 4,012 | 7,407 | 7,564 | ||||||||||||||||||||||||||||
Space | 3,166 | 2,825 | 6,125 | 5,384 | ||||||||||||||||||||||||||||
Total net sales | $ | 16,693 | $ | 15,446 | $ | 31,819 | $ | 30,410 | ||||||||||||||||||||||||
Operating profit | ||||||||||||||||||||||||||||||||
Aeronautics | $ | 718 | $ | 613 | $ | 1,393 | $ | 1,292 | ||||||||||||||||||||||||
Missiles and Fire Control | 371 | 418 | 748 | 803 | ||||||||||||||||||||||||||||
Rotary and Mission Systems | 454 | 461 | 804 | 867 | ||||||||||||||||||||||||||||
Space | 312 | 271 | 592 | 519 | ||||||||||||||||||||||||||||
Total business segment operating profit1 | 1,855 | 1,763 | 3,537 | 3,481 | ||||||||||||||||||||||||||||
Unallocated items | ||||||||||||||||||||||||||||||||
FAS/CAS operating adjustment | 416 | 425 | 831 | 851 | ||||||||||||||||||||||||||||
Intangible asset amortization expense1 | (62) | (62) | (124) | (124) | ||||||||||||||||||||||||||||
Other, net | (74) | (163) | (72) | (312) | ||||||||||||||||||||||||||||
Total unallocated items | 280 | 200 | 635 | 415 | ||||||||||||||||||||||||||||
Total consolidated operating profit | $ | 2,135 | $ | 1,963 | $ | 4,172 | $ | 3,896 | ||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||||
(in millions) | Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||
Net sales | $ | 6,875 | $ | 5,862 | $ | 13,144 | $ | 12,263 | ||||||||||||||||||||||||
Operating profit | 718 | 613 | 1,393 | 1,292 | ||||||||||||||||||||||||||||
Operating margin | 10.4 | % | 10.5 | % | 10.6 | % | 10.5 | % |
(in millions) | Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||
Net sales | $ | 2,755 | $ | 2,747 | $ | 5,143 | $ | 5,199 | ||||||||||||||||||||||||
Operating profit | 371 | 418 | 748 | 803 | ||||||||||||||||||||||||||||
Operating margin | 13.5 | % | 15.2 | % | 14.5 | % | 15.4 | % |
(in millions) | Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||
Net sales | $ | 3,897 | $ | 4,012 | $ | 7,407 | $ | 7,564 | ||||||||||||||||||||||||
Operating profit | 454 | 461 | 804 | 867 | ||||||||||||||||||||||||||||
Operating margin | 11.6 | % | 11.5 | % | 10.9 | % | 11.5 | % |
(in millions) | Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||||||
Net sales | $ | 3,166 | $ | 2,825 | $ | 6,125 | $ | 5,384 | ||||||||||||||||||||||||
Operating profit | 312 | 271 | 592 | 519 | ||||||||||||||||||||||||||||
Operating margin | 9.9 | % | 9.6 | % | 9.7 | % | 9.6 | % |
(in millions) | Current Update | April 2023 | ||||||||||||||||||
Business segment operating profit (non-GAAP) | ~$7,325 - $7,375 | ~$7,255 - $7,355 | ||||||||||||||||||
FAS/CAS operating adjustment1 | ~1,660 | ~1,660 | ||||||||||||||||||
Intangible asset amortization expense | ~(245) | ~(245) | ||||||||||||||||||
Other, net | ~(340) | ~(325) | ||||||||||||||||||
Consolidated operating profit (GAAP) | ~$8,400 - $8,450 | ~$8,345 - $8,445 | ||||||||||||||||||
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. | |||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | ||||||||||||||||||||||||||
Net sales | $ | 16,693 | $ | 15,446 | $ | 31,819 | $ | 30,410 | |||||||||||||||||||||
Cost of sales2 | (14,603) | (13,490) | (27,683) | (26,545) | |||||||||||||||||||||||||
Gross profit | 2,090 | 1,956 | 4,136 | 3,865 | |||||||||||||||||||||||||
Other income, net | 45 | 7 | 36 | 31 | |||||||||||||||||||||||||
Operating profit | 2,135 | 1,963 | 4,172 | 3,896 | |||||||||||||||||||||||||
Interest expense | (223) | (141) | (425) | (276) | |||||||||||||||||||||||||
Non-service FAS pension income (expense) | 111 | (1,331) | 221 | (1,191) | |||||||||||||||||||||||||
Other non-operating (expense) income, net3 | (17) | (161) | 32 | (38) | |||||||||||||||||||||||||
Earnings before income taxes | 2,006 | 330 | 4,000 | 2,391 | |||||||||||||||||||||||||
Income tax expense | (325) | (21) | (630) | (349) | |||||||||||||||||||||||||
Net earnings | $ | 1,681 | $ | 309 | $ | 3,370 | $ | 2,042 | |||||||||||||||||||||
Effective tax rate | 16.2 | % | 6.4 | % | 15.8 | % | 14.6 | % | |||||||||||||||||||||
Earnings per common share | |||||||||||||||||||||||||||||
Basic | $ | 6.65 | $ | 1.16 | $ | 13.28 | $ | 7.65 | |||||||||||||||||||||
Diluted | $ | 6.63 | $ | 1.16 | $ | 13.24 | $ | 7.62 | |||||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||||||||
Basic | 252.8 | 265.8 | 253.7 | 267.0 | |||||||||||||||||||||||||
Diluted | 253.6 | 266.7 | 254.6 | 267.9 | |||||||||||||||||||||||||
Common shares reported in stockholders’ equity at end of period | 251 | 264 | |||||||||||||||||||||||||||
1 | The company closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on June 25 for the second quarter of 2023 and June 26 for the second quarter of 2022. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the company's fiscal year ends on Dec. 31. | ||||||||||||||||||||||||||||
2 | In the second quarter of 2023 and 2022. the company recognized net gains of $12 million ($9 million, or $0.04 per share, after-tax) and net losses of $61 million ($46 million, or $0.17 per share, after-tax) due to changes in fair value of assets and liabilities for deferred compensation plans. | ||||||||||||||||||||||||||||
3 | In the second quarter of 2023 and 2022. the company recognized net losses of $40 million ($30 million, or $0.12 per share, after-tax) and $143 million ($107 million, or $0.40 per share, after-tax) due to changes in fair value of early-stage company investments. | ||||||||||||||||||||||||||||
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||||||
June 25, 2023 | June 26, 2022 | % Change | June 25, 2023 | June 26, 2022 | % Change | ||||||||||||||||||||||||||||||||||||
Net sales | |||||||||||||||||||||||||||||||||||||||||
Aeronautics | $ | 6,875 | $ | 5,862 | 17% | $ | 13,144 | $ | 12,263 | 7% | |||||||||||||||||||||||||||||||
Missiles and Fire Control | 2,755 | 2,747 | —% | 5,143 | 5,199 | (1%) | |||||||||||||||||||||||||||||||||||
Rotary and Mission Systems | 3,897 | 4,012 | (3%) | 7,407 | 7,564 | (2%) | |||||||||||||||||||||||||||||||||||
Space | 3,166 | 2,825 | 12% | 6,125 | 5,384 | 14% | |||||||||||||||||||||||||||||||||||
Total net sales | $ | 16,693 | $ | 15,446 | 8% | $ | 31,819 | $ | 30,410 | 5% | |||||||||||||||||||||||||||||||
Operating profit | |||||||||||||||||||||||||||||||||||||||||
Aeronautics | $ | 718 | $ | 613 | 17% | $ | 1,393 | $ | 1,292 | 8% | |||||||||||||||||||||||||||||||
Missiles and Fire Control | 371 | 418 | (11%) | 748 | 803 | (7%) | |||||||||||||||||||||||||||||||||||
Rotary and Mission Systems | 454 | 461 | (2%) | 804 | 867 | (7%) | |||||||||||||||||||||||||||||||||||
Space | 312 | 271 | 15% | 592 | 519 | 14% | |||||||||||||||||||||||||||||||||||
Total business segment operating profit1 | 1,855 | 1,763 | 5% | 3,537 | 3,481 | 2% | |||||||||||||||||||||||||||||||||||
Unallocated items | |||||||||||||||||||||||||||||||||||||||||
FAS/CAS operating adjustment | 416 | 425 | 831 | 851 | |||||||||||||||||||||||||||||||||||||
Intangible asset amortization expense | (62) | (62) | (124) | (124) | |||||||||||||||||||||||||||||||||||||
Other, net1,2 | (74) | (163) | (72) | (312) | |||||||||||||||||||||||||||||||||||||
Total unallocated items | 280 | 200 | 40% | 635 | 415 | 53% | |||||||||||||||||||||||||||||||||||
Total consolidated operating profit | $ | 2,135 | $ | 1,963 | 9% | $ | 4,172 | $ | 3,896 | 7% | |||||||||||||||||||||||||||||||
Operating margin | |||||||||||||||||||||||||||||||||||||||||
Aeronautics | 10.4% | 10.5% | 10.6% | 10.5% | |||||||||||||||||||||||||||||||||||||
Missiles and Fire Control | 13.5% | 15.2% | 14.5% | 15.4% | |||||||||||||||||||||||||||||||||||||
Rotary and Mission Systems | 11.6% | 11.5% | 10.9% | 11.5% | |||||||||||||||||||||||||||||||||||||
Space | 9.9% | 9.6% | 9.7% | 9.6% | |||||||||||||||||||||||||||||||||||||
Total business segment operating margin | 11.1% | 11.4% | 11.1% | 11.4% | |||||||||||||||||||||||||||||||||||||
Total consolidated operating margin | 12.8% | 12.7% | 13.1% | 12.8% | |||||||||||||||||||||||||||||||||||||
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 second quarter of 2023 and 2022, the company recognized net gains of $12 million ($9 million, or $0.04 per share, after-tax) and net losses of $61 million ($46 million, or $0.17 per share, after-tax) due to changes in fair value of assets and liabilities for deferred compensation plans. | ||||||||||||||||||||||||||||||||||||||||
Current 2023 Outlook | 2022 Actual | ||||||||||||||||
Total FAS income (expense) and CAS cost | |||||||||||||||||
FAS pension income (expense) | $ | 375 | $ | (1,058) | |||||||||||||
Less: CAS pension cost | 1,725 | 1,796 | |||||||||||||||
Total FAS/CAS pension adjustment | 2,100 | 738 | |||||||||||||||
Less: pension settlement charge | — | 1,470 | |||||||||||||||
Total FAS/CAS pension adjustment - adjusted1 | $ | 2,100 | $ | 2,208 | |||||||||||||
Service and non-service cost reconciliation | |||||||||||||||||
FAS pension service cost | $ | (65) | $ | (87) | |||||||||||||
Less: CAS pension cost | 1,725 | 1,796 | |||||||||||||||
Total FAS/CAS pension operating adjustment | 1,660 | 1,709 | |||||||||||||||
Non-service FAS pension income (expense) | 440 | (971) | |||||||||||||||
Total FAS/CAS pension adjustment | 2,100 | 738 | |||||||||||||||
Less: pension settlement charge | — | 1,470 | |||||||||||||||
Total FAS/CAS pension adjustment - adjusted1 | $ | 2,100 | $ | 2,208 | |||||||||||||
1 | Total FAS/CAS pension adjustment – adjusted is a non-GAAP measure. See the "Use of Non-GAAP Financial Measures" section of this news release for more information. The company recognized a noncash, non-operating settlement charge of $1,470 million in the second quarter of 2022 related to the accelerated recognition of actuarial losses previously included in accumulated other comprehensive loss for certain pension plans as a result of the purchase of group annuity contracts from an insurance company. | ||||||||||||||||
June 25, 2023 | Dec. 31, 2022 | ||||||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 3,673 | $ | 2,547 | |||||||||||||
Receivables, net | 3,427 | 2,505 | |||||||||||||||
Contract assets | 13,008 | 12,318 | |||||||||||||||
Inventories | 3,498 | 3,088 | |||||||||||||||
Other current assets | 481 | 533 | |||||||||||||||
Total current assets | 24,087 | 20,991 | |||||||||||||||
Property, plant and equipment, net | 7,966 | 7,975 | |||||||||||||||
Goodwill | 10,795 | 10,780 | |||||||||||||||
Intangible assets, net | 2,336 | 2,459 | |||||||||||||||
Deferred income taxes | 4,518 | 3,744 | |||||||||||||||
Other noncurrent assets | 7,276 | 6,931 | |||||||||||||||
Total assets | $ | 56,978 | $ | 52,880 | |||||||||||||
Liabilities and equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 3,466 | $ | 2,117 | |||||||||||||
Salaries, benefits and payroll taxes | 2,896 | 3,075 | |||||||||||||||
Contract liabilities | 8,184 | 8,488 | |||||||||||||||
Current maturities of long-term debt | 283 | 118 | |||||||||||||||
Other current liabilities | 2,875 | 2,089 | |||||||||||||||
Total current liabilities | 17,704 | 15,887 | |||||||||||||||
Long-term debt, net | 17,262 | 15,429 | |||||||||||||||
Accrued pension liabilities | 5,373 | 5,472 | |||||||||||||||
Other noncurrent liabilities | 7,399 | 6,826 | |||||||||||||||
Total liabilities | 47,738 | 43,614 | |||||||||||||||
Stockholders’ equity | |||||||||||||||||
Common stock, $1 par value per share | 251 | 254 | |||||||||||||||
Additional paid-in capital | — | 92 | |||||||||||||||
Retained earnings | 17,068 | 16,943 | |||||||||||||||
Accumulated other comprehensive loss | (8,079) | (8,023) | |||||||||||||||
Total stockholders’ equity | 9,240 | 9,266 | |||||||||||||||
Total liabilities and equity | $ | 56,978 | $ | 52,880 | |||||||||||||
Six Months Ended | ||||||||||||||
June 25, 2023 | June 26, 2022 | |||||||||||||
Operating activities | ||||||||||||||
Net earnings | $ | 3,370 | $ | 2,042 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities | ||||||||||||||
Depreciation and amortization | 659 | 672 | ||||||||||||
Stock-based compensation | 146 | 134 | ||||||||||||
Deferred income taxes | (234) | (425) | ||||||||||||
Pension settlement charge | — | 1,470 | ||||||||||||
Changes in assets and liabilities | ||||||||||||||
Receivables, net | (922) | (1,438) | ||||||||||||
Contract assets | (690) | (1,174) | ||||||||||||
Inventories | (410) | (450) | ||||||||||||
Accounts payable | 1,397 | 1,522 | ||||||||||||
Contract liabilities | (304) | (30) | ||||||||||||
Income taxes | (46) | 318 | ||||||||||||
Qualified defined benefit pension plans | (189) | (231) | ||||||||||||
Other, net | (113) | 331 | ||||||||||||
Net cash provided by operating activities | 2,664 | 2,741 | ||||||||||||
Investing activities | ||||||||||||||
Capital expenditures | (623) | (572) | ||||||||||||
Other, net | 30 | (11) | ||||||||||||
Net cash used for investing activities | (593) | (583) | ||||||||||||
Financing activities | ||||||||||||||
Issuance of long-term debt, net of related costs | 1,975 | 2,267 | ||||||||||||
Repayments of long-term debt | — | (2,250) | ||||||||||||
Repurchases of common stock | (1,250) | (2,356) | ||||||||||||
Dividends paid | (1,542) | (1,511) | ||||||||||||
Other, net | (128) | (137) | ||||||||||||
Net cash used for financing activities | (945) | (3,987) | ||||||||||||
Net change in cash and cash equivalents | 1,126 | (1,829) | ||||||||||||
Cash and cash equivalents at beginning of period | 2,547 | 3,604 | ||||||||||||
Cash and cash equivalents at end of period | $ | 3,673 | $ | 1,775 | ||||||||||
Backlog | June 25, 2023 | Dec. 31, 2022 | |||||||||||||||
Aeronautics | $ | 58,100 | $ | 56,630 | |||||||||||||
Missiles and Fire Control | 34,018 | 28,735 | |||||||||||||||
Rotary and Mission Systems | 35,947 | 34,949 | |||||||||||||||
Space | 29,946 | 29,684 | |||||||||||||||
Total backlog | $ | 158,011 | $ | 149,998 |
Quarters Ended | Six Months Ended | ||||||||||||||||||||||||||||
Aircraft Deliveries | June 25, 2023 | June 26, 2022 | June 25, 2023 | June 26, 2022 | |||||||||||||||||||||||||
F-35 | 45 | 35 | 50 | 61 | |||||||||||||||||||||||||
F-16 | — | — | 1 | — | |||||||||||||||||||||||||
C-130J | 4 | 6 | 6 | 11 | |||||||||||||||||||||||||
Government helicopter programs | 11 | 25 | 21 | 42 | |||||||||||||||||||||||||
Commercial helicopter programs | — | — | 1 | — | |||||||||||||||||||||||||
International military helicopter programs | — | 5 | — | 5 |
Number of Weeks in Reporting Period1 | 2023 | 2022 | |||||||||||||||
First quarter | 12 | 12 | |||||||||||||||
Second quarter | 13 | 13 | |||||||||||||||
Third quarter | 13 | 13 | |||||||||||||||
Fourth quarter | 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. |
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