General Dynamics 2015 Annual Report Download - page 22

ITEM 6. SELECTED FINANCIAL DATA
The following table presents selected historical financial data derived from the 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 Consolidated Financial Statements and the Notes thereto.
(Dollars and shares in millions, except per-share and employee amounts) 2015 2014 2013 2012 2011
Summary of Operations
Revenue $ 31,469 $ 30,852 $ 30,930 $ 30,992 $ 32,122
Operating earnings 4,178 3,889 3,689 765 3,747
Operating margin 13.3% 12.6% 11.9% 2.5% 11.7%
Interest, net (83) (86) (86) (156) (141)
Provision for income tax, net 1,137 1,129 1,125 854 1,139
Earnings (loss) from continuing operations 2,965 2,673 2,486 (381) 2,500
Return on sales (a) 9.4% 8.7% 8.0% (1.2)% 7.8%
Discontinued operations, net of tax – (140) (129) 49 26
Net earnings (loss) 2,965 2,533 2,357 (332) 2,526
Diluted earnings (loss) per share:
Continuing operations (b) 9.08 7.83 7.03 (1.08) 6.80
Net earnings (loss) (b) 9.08 7.42 6.67 (0.94) 6.87
Cash Flows
Net cash provided by operating activities $ 2,499 $ 3,728 $ 3,111 $ 2,606 $ 3,150
Net cash provided (used) by investing activities 200 (1,102) (363) (642) (1,961)
Net cash used by financing activities (4,259) (3,575) (725) (1,382) (1,201)
Net cash (used) provided by discontinued operations (43) 36 (18) 65 48
Cash dividends declared per common share 2.76 2.48 2.24 2.04 1.88
Financial Position
Cash and equivalents $ 2,785 $ 4,388 $ 5,301 $ 3,296 $ 2,649
Total assets 31,997 35,337 35,473 34,285 34,954
Short- and long-term debt 3,399 3,893 3,888 3,884 3,921
Shareholders’ equity 10,738 11,829 14,501 11,390 13,232
Debt-to-equity (c) 31.7% 32.9% 26.8% 34.1% 29.6%
Book value per share (d) 34.31 35.61 41.03 32.20 37.12
Other Information
Free cash flow from operations (e) $ 1,930 $ 3,207 $ 2,675 $ 2,170 $ 2,705
Return on invested capital (f) 17.4% 15.1% 14.1% 8.4% 14.7%
Funded backlog 51,783 52,929 38,284 44,376 44,420
Total backlog 66,120 72,410 45,885 51,132 57,131
Shares outstanding 313.0 332.2 353.4 353.7 356.4
Weighted average shares outstanding:
Basic 321.3 335.2 350.7 353.3 364.1
Diluted 326.7 341.3 353.5 353.3 367.5
Employees 99,900 99,500 96,000 92,200 95,100
Note: Prior period information has been restated to reflect the reclassification of debt issuance costs from other assets to debt as discussed in Note J to the Consolidated Financial Statements in Item 8.
(a) Return on sales is calculated as earnings (loss) from continuing operations divided by revenue.
(b) 2012 amounts exclude the dilutive effect of stock options and restricted stock as it was antidilutive.
(c) Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.
(d) Book value per share is calculated as total equity divided by total outstanding shares as of year end.
(e) See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for a reconciliation of net cash provided by operating activities to free cash flow from operations,
a non-GAAP management metric.
(f) See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for the calculation of return on invested capital (ROIC), a non-GAAP management metric. 2012
ROIC was adjusted for a $2 billion goodwill impairment and associated $199 tax benefit.
18 General Dynamics Annual Report 2015