Lockheed Martin 2013 Annual Report Download - page 81

As of December 31, 2013 and 2012, our liabilities associated with unrecognized tax benefits are not material.
We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various foreign jurisdictions. With
few exceptions, the statute of limitations is no longer open for U.S. federal or non-U.S. income tax examinations for the years
before 2010, other than with respect to refunds.
U.S. income taxes and foreign withholding taxes have not been provided on earnings of $222 million, $211 million, and
$193 million that have not been distributed by our non-U.S. companies as of December 31, 2013, 2012, and 2011. Our
intention is to permanently reinvest these earnings, thereby indefinitely postponing their remittance to the U.S. If these
earnings were remitted, we estimate that the additional income taxes after foreign tax credits would have been approximately
$50 million in 2013, $45 million in 2012, and $41 million in 2011.
Our federal and foreign income tax payments, net of refunds received, were $787 million in 2013, $890 million in 2012,
and $722 million in 2011. Our 2013 net payments reflect a $550 million refund from the IRS primarily attributable to our
tax-deductible discretionary pension contributions during the fourth quarter of 2012; our 2012 net payments reflect a
$153 million refund from the IRS related to a 2011 capital loss carryback claim; and our 2011 net payments reflect a
$250 million refund from the IRS related to estimated taxes paid for 2010. As of December 31, 2013 and 2012, we had
federal and foreign taxes receivable of $313 million and $662 million recorded within other current assets on our Balance
Sheet, primarily attributable to our tax-deductible discretionary pension contributions in the fourth quarter of 2013 and 2012
and our debt exchange transaction in the fourth quarter of 2012.
Note 9 – Debt
Our long-term debt consisted of the following (in millions):
2013 2012
Notes with rates from 2.13% to 6.15%, due 2016 to 2042 $5,642 $5,642
Notes with rates from 7.00% to 7.75%, due 2016 to 2036 916 930
Notes with a rate of 7.38%, due 2013 —150
Other debt 476 478
Total long-term debt 7,034 7,200
Less: unamortized discounts (882) (892)
Total long-term debt, net of unamortized discounts 6,152 6,308
Less: current maturities of long-term debt —(150)
Total long-term debt, net $6,152 $6,158
In December 2012, we issued notes totaling $1.3 billion with a fixed interest rate of 4.07% maturing in December 2042
(the New Notes) in exchange for outstanding notes totaling $1.2 billion with interest rates ranging from 5.50% to 8.50%
maturing in 2023 to 2040 (the Old Notes). In connection with the exchange, we paid a premium of $393 million, of which
$225 million was paid in cash and $168 million was in the form of New Notes. This premium, in addition to $194 million in
remaining unamortized discounts related to the Old Notes, will be amortized as additional interest expense over the term of
the New Notes using the effective interest method. We may, at our option, redeem some or all of the New Notes at any time
by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest.
Interest on the New Notes is payable on June 15 and December 15 of each year, beginning on June 15, 2013. The New Notes
are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and
unsubordinated indebtedness.
In September 2011, we issued $2.0 billion of long-term notes in a registered public offering and in October 2011, we
used a portion of the proceeds to redeem all of our $500 million long-term notes maturing in 2013. In 2011, we repurchased
$84 million of our long-term notes through open-market purchases. We paid premiums of $48 million in connection with the
early extinguishments of debt, which were recognized in other non-operating income (expense), net.
At December 31, 2013 and 2012, we had in place with a group of banks a $1.5 billion revolving credit facility that
expires in August 2016. We may request and the banks may grant, at their discretion, an increase to the credit facility by an
additional amount up to $500 million. There were no borrowings outstanding under the credit facility through December 31,
2013. Borrowings under the credit facility would be unsecured and bear interest at rates based, at our option, on a Eurodollar
rate or a Base Rate, as defined in the credit facility. Each bank’s obligation to make loans under the credit facility is subject
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