General Dynamics 2010 Annual Report Download - page 38

(Dollars and shares in millions, except per share and employee amounts)2006 2007 2008 2009 2010
Summary of Operations
Revenues $ 24,063 $ 27,240 $ 29,300 $ 31,981 $ 32,466
Operating earnings 2,625 3,113 3,653 3,675 3,945
Operating margin 10.9% 11.4% 12.5% 11.5% 12.2%
Interest, net (101)(70)(66)(160)(157)
Provision for income taxes, net 817 967 1,126 1,106 1,162
Earnings from continuing operations 1,710 2,080 2,478 2,407 2,628
Return on sales (a)7.1% 7.6% 8.5% 7.5% 8.1%
Discontinued operations, net of tax 146 (8)(19)(13)(4)
Net earnings 1,856 2,072 2,459 2,394 2,624
Diluted earnings per share:
Continuing operations 4.20 5.10 6.22 6.20 6.82
Net earnings 4.56 5.08 6.17 6.17 6.81
Cash flows
Net cash provided by operating activities $ 2,156 $ 2,952 $ 3,124 $ 2,855 $ 2,986
Net cash used by investing activities (2,616)(875)(3,663)(1,392)(408)
Net cash used by financing activities (539)(786)(718)(806)(2,226)
Net cash provided (used) by discontinued operations 272 (4)(13)(15)(2)
Cash dividends declared per common share 0.92 1.16 1.40 1.52 1.68
Financial position
Cash and equivalents $ 1,604 $ 2,891 $ 1,621 $ 2,263 $ 2,613
Total assets 22,376 25,733 28,373 31,077 32,545
Short- and long-term debt 2,781 2,791 4,024 3,864 3,203
Shareholders’ equity 9,827 11,768 10,053 12,423 13,316
Debt-to-equity (b)28.3% 23.7% 40.0% 31.1% 24.1%
Book value per share (c)24.22 29.13 26.00 32.21 35.79
Operating working capital (d)1,040 838 624 948 1,104
Other information
Free cash flow from operations (e) $ 1,822 $ 2,478 $ 2,634 $ 2,470 $ 2,616
Return on invested capital (f)15.6% 16.9% 18.5% 17.8% 17.5%
Funded backlog 34,024 37,194 51,712 45,856 43,379
Total backlog 43,667 46,832 74,127 65,545 59,561
Shares outstanding 405.8 404.0 386.7 385.7 372.1
Weighted average shares outstanding:
Basic 403.4 404.4 396.2 385.5 381.2
Diluted 406.8 408.1 398.7 387.9 385.2
Employees 81,000 83,500 92,300 91,700 90,000
Sales per employee (g)309,300 329,400 342,600 346,500 358,100
(a) Return on sales is calculated as earnings from continuing operations divided by revenues.
(b) Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.
(c) Book value per share is calculated as total equity divided by total outstanding shares as of year end.
(d) Operating working capital is calculated as accounts receivable, contracts in process (excluding "other contract costs" - see Note G to the Consolidated Financial Statements in Item 8)
and inventories less accounts payable, customer advances and deposits, and liabilities for salaries and wages.
(e) See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, for a GAAP reconciliation of net cash provided by operating activities to
free cash flow from operations.
(f) See Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, for the calculation and related GAAP reconciliation of return on invested capital.
(g) Sales per employee is calculated as revenues for the past 12 months divided by the average number of employees for the period.
ITEM 6. SELECTED FINANCIAL DATA
The following table presents selected historical financial data derived from the audited Consolidated Financial Statements and other company information
for each of the five years presented. This information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition
and Results of Operations and the audited Consolidated Financial Statements and the Notes thereto.
General Dynamics Annual Report • 2010 18