Lockheed Martin 2015 Annual Report Download - page 128

Download and view the complete annual report

Please find page 128 of the 2015 Lockheed Martin annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

NON-GAAP DEFINITIONS AND RECONCILIATION OF NON-GAAP MEASURES TO GAAP
MEASURES
This annual report contains non-generally accepted accounting principles (GAAP) financial measures. While we
believe that these non-GAAP financial measures may be useful in evaluating Lockheed Martin, this information
should be considered supplemental and is not a substitute for financial information prepared in accordance with
GAAP. In addition, our definitions for non-GAAP measures may differ from similarly titled measures used by other
companies or analysts.
Segment Operating Profit / Margin
Segment Operating Profit represents the total earnings from our business segments before unallocated income
and expense, interest expense, other non-operating income and expense, and income tax expense. This
measure is used by our senior management in evaluating the performance of our business segments. The
caption “Total Unallocated Items” reconciles Segment Operating Profit to Consolidated Operating Profit. Segment
Margin is calculated by dividing Segment Operating Profit by Net Sales.
In millions 2015 2014 2013
Net Sales $46,132 $45,600 $ 45,358
Consolidated Operating Profit $ 5,436 $ 5,592 $ 4,505
Less: Total Unallocated Items (50) 4 (1,247)
Segment Operating Profit (Non-GAAP) $ 5,486 $ 5,588 $ 5,752
Consolidated Operating Margin 11.8% 12.3% 9.9%
Segment Operating Margin (Non-GAAP) 11.9% 12.3% 12.7%
Free Cash Flow
Lockheed Martin defines Free Cash Flow (FCF) as Cash from Operations, less Capital Expenditures.
In millions 2015
Cash from Operations $5,101
Capital Expenditures (939)
Free Cash Flow (Non-GAAP) $4,162