Lockheed Martin 2015 Annual Report Download - page 97
Download and view the complete annual report
Please find page 97 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.-
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
 |
 |
Work-in-process inventories at December 31, 2015 and 2014 included general and administrative costs of $578 million
and $698 million. General and administrative costs incurred and recorded in inventories totaled $2.8 billion in 2015,
$2.6 billion in 2014 and $2.4 billion in 2013. General and administrative costs charged to cost of sales from inventories
totaled $2.9 billion in 2015, $2.6 billion in 2014 and $2.4 billion in 2013.
Note 8 – Property, Plant and Equipment, net
Property, plant and equipment, net consisted of the following (in millions):
2015 2014
Land $ 123 $99
Buildings 6,128 5,723
Machinery and equipment 7,409 7,031
Construction in progress 887 636
14,547 13,489
Less: accumulated depreciation and amortization (9,057) (8,738)
Total property, plant and equipment, net $ 5,490 $ 4,751
Note 9 – Income Taxes
Our provision for federal and foreign income tax expense for continuing operations consisted of the following
(in millions):
2015 2014 2013
Federal income tax expense (benefit):
Current $1,817 $2,020 $1,204
Deferred (473) (387) 3
Total federal income tax expense 1,344 1,633 1,207
Foreign income tax expense (benefit):
Current 46 24 6
Deferred 28 (13) (8)
Total foreign income tax expense (benefit) 74 11 (2)
Total income tax expense $1,418 $1,644 $1,205
State income taxes are included in our operations as general and administrative costs and, under U.S. Government
regulations, are allowable costs in establishing prices for the products and services we sell to the U.S. Government.
Therefore, a substantial portion of state income taxes is included in our net sales and cost of sales. As a result, the impact of
certain transactions on our operating profit and of other matters presented in these financial statements is disclosed net of
state income taxes. Our total net state income tax expense was $127 million for 2015, $207 million for 2014, and
$121 million for 2013.
Our reconciliation of the 35% U.S. federal statutory income tax rate to actual income tax expense for continuing
operations is as follows (in millions):
2015 2014 2013
Income tax expense at the U.S. federal statutory tax rate $1,758 $1,840 $1,454
U.S. manufacturing deduction benefit (126) (127) (100)
Tax deductible dividends (87) (82) (77)
Research and development tax credit (71) (66) (96)
Goodwill impairment – non-deductible portion —30 50
Other, net (56) 49 (26)
Income tax expense $1,418 $1,644 $1,205
We recognized tax benefits of $71 million in 2015, $66 million in 2014, and $96 million in 2013 from U.S. research and
development (R&D) tax credits, including benefits attributable to prior periods. In 2015, the R&D tax credit was
permanently extended and reinstated, retroactive to the beginning of 2015, which reduced income tax expenses by
approximately $71 million. In 2014, the R&D tax credit was temporarily reinstated for one year, retroactive to the beginning
89