Lockheed Martin 2013 Annual Report Download - page 31

ITEM 6. Selected Financial Data.
(In millions, except per share data) 2013 2012 2011 2010 2009
Operating results
Net sales $45,358 $47,182 $46,499 $45,671 $43,867
Operating profit (a)(b) 4,505 4,434 4,020 4,105 4,477
Net earnings from continuing operations (a)(b)(c) 2,950 2,745 2,667 2,614 2,967
Net earnings (d) 2,981 2,745 2,655 2,878 2,973
Net earnings from continuing operations per common share
Basic (a)(b)(c) 9.19 8.48 7.94 7.18 7.71
Diluted (a)(b)(c) 9.04 8.36 7.85 7.10 7.63
Net earnings per common share
Basic (d) 9.29 8.48 7.90 7.90 7.73
Diluted (d) 9.13 8.36 7.81 7.81 7.64
Cash dividends declared per common share $ 4.78 $ 4.15 $ 3.25 $ 2.64 $ 2.34
Balance sheet
Cash, cash equivalents and short-term investments (b)(e) $ 2,617 $ 1,898 $ 3,582 $ 2,777 $ 2,737
Total current assets 13,329 13,855 14,094 12,893 12,529
Goodwill 10,348 10,370 10,148 9,605 9,948
Total assets (b) 36,188 38,657 37,908 35,113 35,167
Total current liabilities 11,120 12,155 12,130 11,401 10,910
Long-term debt, net (e) 6,152 6,158 6,460 5,019 5,052
Total liabilities (b) 31,270 38,618 36,907 31,616 31,201
Stockholders’ equity (b) 4,918 39 1,001 3,497 3,966
Common shares at year-end 319 321 321 346 373
Cash flow information
Net cash provided by operating activities (b)(f) $ 4,546 $ 1,561 $ 4,253 $ 3,801 $ 3,487
Net cash used for investing activities (1,121) (1,177) (788) (533) (1,798)
Net cash used for financing activities (2,706) (2,068) (2,144) (3,398) (1,466)
Backlog $82,600 $82,300 $80,700 $78,400 $77,300
(a) Our operating profit, earnings, and earnings per share were affected by a non-cash goodwill impairment charge of $195 million
($176 million or $.54 per share, after tax) (Note 1) and severance charges of $201 million ($130 million or $.40 per share, after tax) in
2013 (Note 2); severance charges of $136 million ($88 million or $.26 per share, after tax) in 2011 (Note 2); and charges for the
Voluntary Executive Separation Program and facilities consolidation totaling $220 million ($143 million or $.38 per share, after tax) in
2010.
(b) The impact of our postretirement benefit plans can cause our operating profit, earnings, cash flows, and amounts recorded on our
Balance Sheets to fluctuate. Accordingly, our earnings were affected by FAS/CAS pension expense of $482 million, $830 million,
$922 million, $454 million, and $456 million in 2013, 2012, 2011, 2010, and 2009. Our 2012 pension contributions of $3.6 billion, as
compared to $2.25 billion made in 2013 and $2.3 billion made in 2011, caused fluctuations in our operating cash flows and cash
balance between each of those years. Fluctuations in our total assets, total liabilities, and stockholders’ equity between years from 2010
to 2013 primarily were due to the annual measurement of the funded status of our postretirement benefit plans at the end of 2013, 2012,
and 2011. See “Critical Accounting Policies - Postretirement Benefit Plans” in Management’s Discussion and Analysis of Financial
Condition and Results of Operations for more information.
(c) Our net earnings from continuing operations included an $89 million reduction in income tax expense in 2011 through the elimination
of liabilities for unrecognized tax benefits (Note 8); tax expense of $96 million in 2010 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; and a $69 million income tax benefit in 2009 for the resolution of certain tax matters.
(d) Our net earnings were affected by the items in notes (a), (b), and (c) above, as well as items related to discontinued operations such as a
$184 million gain ($.50 per share) in 2010 on the sale of Enterprise Integration Group, and $73 million ($.20 per share) of benefits for
certain adjustments related to Pacific Architects and Engineers in 2010.
(e) 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).
(f) The fluctuations in our net cash provided by operating activities between years from 2011 to 2013 were due to changes in working
capital in addition to our pension contributions discussed in note (b) above. See “Liquidity and Cash Flows” in Management’s
Discussion and Analysis of Financial Condition and Results of Operations for more information.
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