Lockheed Martin : Financial Table – PDF

Lockheed Martin Corporation Consolidated Statements of Earnings1 (unaudited; in millions, except per share data)

Quarters EndedMarch 27, 2022

March 28, 2021

Net sales

$

14,964

$

16,258

Cost of sales2,3 Gross profit

(13,055) (14,072)

1,909 2,186

Other income (expense), net

24 (4)

Operating profit

1,933 2,182

Interest expense

(135) (140)

Non-service FAS pension income Other non-operating income, net4 Earnings before income taxes Income tax expense

140 93

123 76

2,061 2,211

(328) (374)

Net earnings

$

1,733 $ 1,837

Effective tax rate

15.9 %

16.9 %

Earnings per common share

Basic

Diluted

$ $

6.46 $ 6.58

6.44 $ 6.56

Weighted average shares outstanding

Basic

268.3 279.0

Diluted

269.2 280.0

Common shares reported in stockholders' equity at end of period

265 278

• 1 The corporation closes its books and records on the last Sunday of the calendar quarter to align its financial closing with its business processes, which was on March 27 for the first quarter of 2022 and March 28 for the first quarter of 2021. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as the corporation's fiscal year ends on Dec. 31.

• 2 In the first quarter of 2022 and 2021, the company recognized losses of $101 million ($76 million, or $0.28 per share, after-tax) and $10 million ($8 million, or $0.03 per share, after-tax) due to declines in the fair value of investments held in a trust for deferred compensation plans.

• 3 In the first quarter of 2021, the company recognized severance and restructuring charges of $36 million ($28 million, or $0.10 per share, after-tax) for previously announced actions at the company's RMS business segment.

• 4 Other non-operating income, net for the first quarter of 2022 and 2021 include net gains of $103 million ($77 million, or $0.29 per share, after-tax) and $68 million ($51 million, or $0.18 per share, after-tax) due to increases in the fair value of investments held in the Lockheed Martin Ventures Fund.

Lockheed Martin Corporation

Business Segment Summary Operating Results (unaudited; in millions)

Net sales

Aeronautics

Missiles and Fire Control Rotary and Mission Systems Space

Total net salesOperating profit

Aeronautics

Missiles and Fire Control Rotary and Mission Systems Space

Total business segment operating profit Unallocated items

FAS/CAS operating adjustment Severance and restructuring charges1 Other, net2

Total unallocated items

Total consolidated operating profitOperating margin

Aeronautics

Missiles and Fire Control Rotary and Mission Systems Space

Total business segment operating marginQuarters EndedMarch 27, 2022

$

6,401 2,452 3,552 2,559

$

14,964

March 28, 2021

% Change

$

6,387

• 2,749 (11%)

• 4,107 (14%)

• 3,015 (15%)

  -%

  $

• 16,258 (8%)

$

679 $ 693 (2%)

384 396 (3%)

348 433 (20%)

245 227 8%

1,656 1,749 (5%)

426 489

- (36)

(149) (20)

277 433 (36%)

$

1,933

$

2,182 (11%)

10.6% 10.9%

15.7% 14.4%

9.8% 10.5%

9.6% 7.5%

11.1% 10.8%

Total consolidated operating margin

12.9% 13.4%

1 In the first quarter of 2021, the company recognized severance and restructuring charges of $36 million ($28 million, or $0.10 per share, after-tax) for previously announced actions at the company's RMS business segment.

2

In the first quarter of 2022 and 2021, the company recognized losses of $101 million ($76 million, or $0.28 per share, after-tax) and $10 million ($8 million, or $0.03 per share, after-tax) due to declines in the fair value of investments held in a trust for deferred compensation plans.

Lockheed Martin Corporation Selected Financial Data

(unaudited; in millions)

Quarters EndedMarch 27, 2022

March 28, 2021

Amortization of purchased intangibles

Aeronautics

$

Missiles and Fire Control Rotary and Mission Systems Space

- 1 58 3

$

- 1 58 22

Total amortization of purchased intangibles

$

62

$

81

2022 Outlook

2021 ActualTotal FAS income (expense) and CAS cost

Total FAS pension income (expense) Less: CAS pension cost

$

460 $ (1,398)

1,800 2,066

Total FAS/CAS pension adjustment Less: pension settlement charge

2,260 668

- 1,665

Total FAS/CAS pension adjustment - adjusted 1,2

$

2,260

$

2,333

Service and non-service cost reconciliation

FAS pension service cost

$

(95) $ (106)

Less: CAS pension cost

1,800 2,066

FAS/CAS operating adjustment

1,705 1,960

FAS pension non-service income (expense)

Total FAS/CAS pension adjustment Less: pension settlement charge

555 2,260 -

(1,292)

668 1,665

Total FAS/CAS pension adjustment - adjusted 1,2

$

2,260

$

2,333

• 1 Total FAS/CAS pension adjustment - adjusted is a non-GAAP measure. See the "Use of Non-GAAP Financial Measures" section of this news release for more information.

• 2 The cost components in the table above relate only to the company's qualified defined benefit pension plans. The company recognized a noncash, non-operating settlement charge of $1,665 million in the third quarter of 2021 related to the accelerated recognition of actuarial losses previously included in accumulated other comprehensive loss for certain pension plans as a result of the purchase of group annuity contracts from an insurance company.

Lockheed Martin Corporation Consolidated Balance Sheets (unaudited, in millions, except par value)

Assets Current assets

Cash and cash equivalents Receivables, net

Contract assets Inventories

Other current assets

Total current assets

March 27, 2022

Dec. 31, 2021

$

1,883 $ 3,604

2,527 1,963

12,130 10,579

3,144 2,981

706 688

20,390 19,815

Property, plant and equipment, net Goodwill

Intangible assets, net Deferred income taxes Other noncurrent assets

Total assets

Liabilities and equity

Current liabilities

Accounts payable

Salaries, benefits and payroll taxes Contract liabilities

Current maturities of long-term debt Other current liabilities

Total current liabilities

7,561 7,597

10,811 10,813

2,644 2,706

2,688 2,290

7,416 7,652

$

51,510

$

50,873

$

2,599 $ 780

2,671 3,108

7,902 8,107

500 2,375

6 1,996

16,047 13,997

Long-term debt, net Accrued pension liabilities Other noncurrent liabilities

Total liabilitiesStockholders' equity

Common stock, $1 par value per share Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Total stockholders' equity

Total liabilities and equity

11,145 11,670

8,143 8,319

6,173 5,928

41,508 39,914

265 271

- 94

20,716 (10,979) 10,002

$

51,510

21,600 (11,006) 10,959

$

50,873

Table 4

Lockheed Martin Corporation Consolidated Statements of Cash Flows (unaudited; in millions)

Operating activities

Net earnings

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and amortization

Stock-based compensation Deferred income taxes

Severance and restructuring charges

Changes in assets and liabilities

Receivables, net

Contract assets Inventories Accounts payable Contract liabilities Income taxes

Qualified defined benefit pension plans Other, net

Net cash provided by operating activities

Investing activities

Capital expenditures Other, net

Net cash used for investing activities

Financing activities

Repurchases of common stock Dividends paid

Other, net

Net cash used for financing activities

Quarters EndedMarch 27, 2022

March 28, 2021

$

1,733 $ 1,837

329 336

54 47

(411) 63

- 36

(564) (236)

(1,551)

(163) 289

1,829 1,023

(205) (290)

697 301

(116) (66)

(222) (229)

(1,363)

1,410 1,748

(268) (281)

17 112

(251) (169)

(2,000) (1,000)

(767) (739)

(113) (67)

(2,880) (1,806)

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

(1,721) (227)

3,604 3,160

$

1,883

$

2,933

Table 5