Lockheed Martin 2013 Annual Report Download - page 88

Note 11 – Stockholders’ Equity
At December 31, 2013, our authorized capital was composed of 1.5 billion shares of common stock and 50 million
shares of series preferred stock. Of the 321 million shares of common stock issued and outstanding, 319 million shares were
considered outstanding for Balance Sheet presentation purposes; the remaining shares were held in a separate trust. No shares
of preferred stock were issued and outstanding at December 31, 2013.
Repurchases of Common Stock
During 2013, 2012, and 2011, we paid $1.8 billion, $990 million, and $2.5 billion to repurchase 16.2 million,
11.1 million and 32.7 million shares of our common stock. We reduced stockholders’ equity by $1.7 billion, $1.0 billion, and
$2.4 billion, which represents the 16.0 million, 11.3 million, and 31.8 million shares of common stock we committed to
repurchase during 2013, 2012, and 2011. Of the shares we committed to during 2012, a portion settled in cash during January
2013. The amount paid for shares during 2011 includes a portion committed to during December 2010 that settled in cash
during January 2011.
In September 2013, our Board of Directors approved a $3.0 billion increase to our share repurchase program. We had
total remaining authorization of $3.6 billion for future common share repurchases under our program as of
December 31, 2013. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares
repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. Due to the
volume of repurchases made under our share repurchase program, additional paid-in capital was reduced to zero, with the
remainder of the excess purchase price over par value of $434 million and $108 million recorded as a reduction of retained
earnings in 2013 and 2012.
Accumulated Other Comprehensive Loss
Changes in the balance of accumulated other comprehensive loss (AOCL), net of income taxes, consisted of the
following (in millions):
Postretirement
Benefit Plans Other, net AOCL
Balance at December 31, 2010 $ (8,994) $ (16) $ (9,010)
Other comprehensive loss before reclassifications (2,858) (46) (2,904)
Amounts reclassified from AOCL
Net actuarial losses 624 — 624
Prior service cost 42 — 42
Other — (9) (9)
Total reclassified from AOCL 666 (9) 657
Total other comprehensive loss (2,192) (55) (2,247)
Balance at December 31, 2011 (a) (11,186) (71) (11,257)
Other comprehensive loss before reclassifications (3,204) 105 (3,099)
Amounts reclassified from AOCL
Net actuarial losses 819 — 819
Prior service cost 39 — 39
Other — 5 5
Total reclassified from AOCL 858 5 863
Total other comprehensive (loss) income (2,346) 110 (2,236)
Balance at December 31, 2012 (a) (13,532) 39 (13,493)
Other comprehensive income before reclassifications 2,868 11 2,879
Amounts reclassified from AOCL
Net actuarial losses 973 — 973
Prior service cost 42 — 42
Other — (2) (2)
Total reclassified from AOCL 1,015 (2) 1,013
Total other comprehensive income 3,883 9 3,892
Balance at December 31, 2013 (a) $ (9,649) $ 48 $ (9,601)
(a) AOCL related to postretirement benefit plans is shown net of tax benefits at December 31, 2013, 2012, and 2011 of $5.3 billion,
$7.4 billion, and $6.1 billion. These tax benefits include amounts recognized on our income tax returns as current deductions and
deferred income taxes, which will be recognized on our tax returns in future years. See Note 8 and Note 10 for more information on
our income taxes and postretirement benefit plans.
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