Lockheed Martin 2011 Annual Report Download - page 29

ITEM 6. SELECTED FINANCIAL DATA
(In millions, except per share data) 2011 2010 2009 2008 2007
OPERATING RESULTS
Net sales $46,499 $45,671 $43,867 $41,212 $40,612
Operating profit (a) 3,980 4,049 4,367 4,987 4,444
Net earnings from continuing operations (a)(b) 2,667 2,614 2,967 3,127 2,990
Net earnings (c) 2,655 2,878 2,973 3,185 3,000
EARNINGS PER COMMON SHARE
Net earnings from continuing operations
Basic (a) $ 7.94 $ 7.18 $ 7.71 $ 7.82 $ 7.19
Diluted (a) 7.85 7.10 7.63 7.64 7.00
Net earnings
Basic (c) 7.90 7.90 7.73 7.97 7.21
Diluted (c) 7.81 7.81 7.64 7.78 7.02
CASH DIVIDENDS PER COMMON SHARE $ 3.25 $ 2.64 $ 2.34 $ 1.83 $ 1.47
BALANCE SHEET
Cash, cash equivalents and short-term investments (d) $ 3,585 $ 2,777 $ 2,737 $ 2,229 $ 2,981
Total current assets 14,094 12,893 12,529 10,736 10,973
Goodwill 10,148 9,605 9,948 9,526 9,387
Total assets (e) 37,908 35,113 35,167 33,495 28,961
Total current liabilities 12,130 11,401 10,910 10,702 10,146
Long-term debt, net (d) 6,460 5,019 5,052 3,563 4,303
Total liabilities (e) 36,907 31,616 31,201 30,742 19,236
Stockholders’ equity (e) 1,001 3,497 3,966 2,753 9,725
COMMON SHARES AT YEAR-END 321 346 373 393 409
CASH FLOW DATA
Net cash provided by operating activities $ 4,253 $ 3,801 $ 3,487 $ 4,724 $ 4,458
Net cash used for investing activities (813) (573) (1,832) (1,210) (1,425)
Net cash used for financing activities (2,119) (3,358) (1,432) (3,994) (2,297)
NEGOTIATED BACKLOG $80,700 $78,400 $77,300 $80,200 $76,000
(a) Our operating profit and net earnings from continuing operations included severance charges of $136 million ($88 million or $.26 per
share, after tax) in 2011 (Note 2); charges for the Voluntary Executive Separation Program and facilities consolidation totaling
$220 million ($143 million or $.38 per share, after tax) in 2010 (Note 2); and noncash pension expense (FAS/CAS) of $922 million,
$454 million, and $456 million in 2011, 2010, and 2009. Net earnings from continuing operations per common share benefitted from
the significant number of shares repurchased under our share repurchase program (Note 11).
(b) Our net earnings from continuing operations included an $89 million reduction in income tax expense through the elimination of
liabilities for unrecognized tax benefits in 2011; tax expense of $96 million as a result of health care legislation that eliminated the tax
deduction for company-paid retiree prescription drug expenses to the extent they are reimbursed under Medicare Part D in 2010; and a
$69 million income tax benefit for the resolution of certain tax matters in 2009 (Note 8).
(c) Our net earnings were affected by the items in notes (a) and (b) above, as well as items related to discontinued operations such as a
$184 million gain ($.50 per share) on the sale of Enterprise Integration Group in 2010, and $73 million ($.20 per share) of benefits for
certain adjustments related to the planned sale of Pacific Architects and Engineers in 2010 (Note 14).
(d) The increase in our cash and long-term debt from 2010 to 2011 primarily was due to the issuance of $2.0 billion of long-term notes in
2011, partially offset by our redemption of $584 million in long-term notes in 2011 (Note 9). The increase in our long-term debt from
2008 to 2009 primarily was due to the issuance of $1.5 billion of long-term notes in 2009.
(e) The increase in our total assets and total liabilities and decrease in stockholders’ equity from 2007 to 2008 and 2010 to 2011 primarily
was due to the annual remeasurement of the funded status of our postretirement benefit plans at December 31, 2008 and 2011. The
effects of the downward market conditions were included in the 2008 remeasurement.
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