Lockheed Martin 2015 Annual Report Download - page 35

ITEM 6. Selected Financial Data.
(In millions, except per share data) 2015 2014 2013 2012 2011
Operating results
Net sales $46,132 $45,600 $45,358 $47,182 $46,499
Operating profit (a)(b) 5,436 5,592 4,505 4,434 4,020
Net earnings from continuing operations (a)(b) 3,605 3,614 2,950 2,745 2,667
Net earnings (a)(b) 3,605 3,614 2,981 2,745 2,655
Net earnings from continuing operations per common share
Basic (a)(b) 11.62 11.41 9.19 8.48 7.94
Diluted (a)(b) 11.46 11.21 9.04 8.36 7.85
Net earnings per common share
Basic (a)(b) 11.62 11.41 9.29 8.48 7.90
Diluted (a)(b) 11.46 11.21 9.13 8.36 7.81
Cash dividends declared per common share $ 6.15 $ 5.49 $ 4.78 $ 4.15 $ 3.25
Balance sheet (c)
Cash, cash equivalents and short-term investments (b) $ 1,090 $ 1,446 $ 2,617 $ 1,898 $ 3,582
Total current assets 16,198 12,322 13,329 13,855 14,094
Goodwill (d) 13,576 10,862 10,348 10,370 10,148
Total assets (b)(d) 49,128 37,046 36,163 38,629 37,878
Total current liabilities 14,057 11,112 11,120 12,155 12,130
Total debt, net (e) 15,261 6,142 6,127 6,280 6,430
Total liabilities (b)(e) 46,031 33,646 31,245 38,590 36,877
Stockholders’ equity (b) 3,097 3,400 4,918 39 1,001
Common shares in stockholders’ equity at year-end 303 314 319 321 321
Cash flow information
Net cash provided by operating activities (b)(f) $ 5,101 $ 3,866 $ 4,546 $ 1,561 $ 4,253
Net cash used for investing activities (g) (9,734) (1,723) (1,121) (1,177) (788)
Net cash provided by (used for) financing activities (h) 4,277 (3,314) (2,706) (2,068) (2,144)
Backlog (i) $99,600 $80,547 $82,600 $82,300 $80,700
(a) Our operating profit, earnings and earnings per share were affected by severance charges of $102 million ($66 million or $.21 per
share, after tax) in 2015 (Note 15); severance charges of $201 million ($130 million or $.40 per share, after tax) in 2013 (Note 15);
and severance charges of $136 million ($88 million or $.26 per share, after tax) in 2011; a non-cash goodwill impairment charge of
$119 million ($107 million or $.33 per share, after tax) in 2014 (Note 1); and a non-cash goodwill impairment charge of
$195 million ($176 million or $.54 per share, after tax) in 2013 (Note 1).
(b) The impact of our postretirement benefit plans can cause our operating profit, net earnings, cash flows and amounts recorded on our
Balance Sheets to fluctuate. Accordingly, our earnings were affected by FAS/CAS pension income of $471 million and $376 million
in 2015 and 2014 and expense of $482 million, $830 million, and $922 million in 2013, 2012, and 2011. We had $5 million in
pension contributions in 2015 (for Sikorsky plans), as compared to $2.0 billion in 2014, $2.25 billion in 2013, $3.6 billion in 2012
and $2.3 billion in 2011, and these contributions 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 2011 to 2014 primarily
were due to the annual measurement of the funded status of our postretirement benefit plans. See “Critical Accounting Policies –
Postretirement Benefit Plans” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for more
information.
(c) Certain prior period amounts have been reclassified to conform to current year presentation.
(d) The increase in our goodwill and total assets from 2014 to 2015 was primarily attributable to the Sikorsky acquisition, which
resulted in an increase in goodwill and total assets of $2.8 billion and $11.7 billion, respectively.
(e) The increase in our total debt and total liabilities from 2014 to 2015 was primarily a result of the debt incurred to fund the Sikorsky
acquisition, as well as the issuance of debt in February of 2015 for general corporate purposes (Note 3 and Note 10).
(f) The fluctuations in our net cash provided by operating activities between years from 2011 to 2015 were due to changes in pension
contributions, working capital and tax payments made. See “Liquidity and Cash Flows” in Management’s Discussion and Analysis
of Financial Condition and Results of Operations for more information.
(g) The increase in our cash used for investing activities in 2015 and 2014 was attributable to acquisitions of businesses, including the
$9.0 billion acquisition of Sikorsky in 2015, net of cash acquired (Note 3).
(h) The increase in our cash provided by financing activities in 2015 was primarily a result of the debt incurred to fund the Sikorsky
acquisition (Note 10). The increase in our cash used for financing activities in 2014 was due to decreased proceeds from stock
option exercises, higher dividends paid and increased payments for repurchases of common stock. See “Liquidity and Cash Flows”
in Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information.
(i) Backlog at December 31, 2015 includes approximately $15.6 billion related to Sikorsky and $4.8 billion related to our IS&GS
business segment, which we plan to divest in 2016. Sikorsky backlog may change as we complete our acquired backlog analysis.
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