Net earnings from continuing operations (a)(b)(c)(d)
1,929
3,753
3,126
3,253
2,701
Net earnings from discontinued operations (e)
73
1,549
479
361
280
Net earnings (b)(c)(d)
2,002
5,302
3,605
3,614
2,981
Earnings from continuing operations per common share
Basic (a)(b)(c)(d)
6.70
12.54
10.07
10.27
8.42
Diluted (a)(b)(c)(d)
6.64
12.38
9.93
10.09
8.27
Earnings from discontinued operations per common share
Basic
0.26
5.17
1.55
1.14
0.87
Diluted
0.25
5.11
1.53
1.12
0.86
Earnings per common share
Basic (b)(c)(d)
6.96
17.71
11.62
11.41
9.29
Diluted (b)(c)(d)
6.89
17.49
11.46
11.21
9.13
Cash dividends declared per common share
$
7.46
$
6.77
$
6.15
$
5.49
$
4.78
Balance sheet (f)
Cash, cash equivalents and short-term investments (b)
$
2,861
$
1,837
$
1,090
$
1,446
$
2,617
Total current assets (g)
17,461
15,108
14,573
10,684
12,081
Goodwill (h)
10,807
10,764
10,695
7,964
7,698
Total assets (b)(g)(h)
46,521
47,806
49,304
37,190
36,352
Total current liabilities (g)
12,637
12,542
13,918
10,954
10,983
Total debt, net (i)
14,263
14,282
15,261
6,142
6,127
Total liabilities (b)(g)(i)
47,130
46,200
46,207
33,790
31,434
Total (deficit) equity (b)(d)
(609
)
1,606
3,097
3,400
4,918
Common shares in stockholders’ equity at year-end
284
289
303
314
319
Cash flow information
Net cash provided by operating activities (b)(j)
$
6,476
$
5,189
$
5,101
$
3,866
$
4,546
Net cash used for investing activities (k)
(1,147
)
(985
)
(9,734
)
(1,723
)
(1,121
)
Net cash (used for) provided by financing activities (l)
(4,305
)
(3,457
)
4,277
(3,314
)
(2,706
)
Backlog (m)
$
99,936
$
96,158
$
94,756
$
74,500
$
76,300
(a)
Our operating profit and net earnings from continuing operations and earnings per share from continuing operations were affected by severance charges of $80 million ($52 million or $0.17 per share, after tax) in 2016; severance charges of $82 million ($53 million or $0.17 per share, after tax) in 2015; severance charges of $156 million ($101 million or $0.31 per share, after tax) in 2013. See “Note 15 – Restructuring Charges” included in our Notes to Consolidated Financial Statements for a discussion of 2016 and 2015 restructuring charges.
(b)
The impact of our postretirement benefit plans can cause our operating profit, net earnings, cash flows and certain amounts recorded on our consolidated balance sheets to fluctuate. Accordingly, our earnings were affected by a FAS/CAS pension adjustment of $876 million in 2017, $902 million in 2016, $400 million in 2015, $317 million in 2014, and $(500) million in 2013. We made $46 million in 2017, $23 million in 2016, and $5 million in 2015 of pension contributions (for our Sikorsky plan) and $2.0 billion in 2014, and $2.25 billion in 2013 (for our legacy plans), 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 equity between years 2013 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)
In the fourth quarter of 2017, we recorded a previously deferred non-cash gain of $198 million related to properties sold in 2015 as a result of completing our remaining obligations, which increased net earnings from continuing operations by $122 million ($0.42 per share).
(d)
In the fourth quarter of 2017, we recorded a net one-time tax charge of $1.9 billion ($6.69 per share), substantially all of which was non-cash, primarily related to the estimated impact of the Tax Cuts and Jobs Act (see “Note 9 – Income Taxes” included in our Notes to Consolidated Financial Statements). This charge along with our annual re-measurement adjustment related to our postretirement benefit plans of $1.4 billion resulted in a deficit in our total equity as of December 31, 2017.
(e)
Our net earnings from discontinued operations includes a $1.2 billion net gain in 2016 related to the divestiture of our IS&GS business.
(f)
Certain prior period amounts have been reclassified to conform to current year presentation.
(g)
Included in total current assets are assets of discontinued operations of $1.0 billion in 2015, $900 million in 2014, and $1.0 billion in 2013. Included in total current liabilities are liabilities of discontinued operations of $900 million in each of the years 2015, 2014 and 2013. Included in total assets are assets of discontinued operations of $4.1 billion in 2015, $4.2 billion in 2014, and $3.9 billion in 2013. Included in total liabilities are liabilities of discontinued operations of $1.2 billion in each of the years 2015, 2014, and 2013.
(h)
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 as of December 31, 2015 of $2.8 billion and $11.7 billion, respectively.
(i)
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 (see “Note 3 – Acquisitions and Divestitures” and “Note 10 – Debt” included in our Notes to Consolidated Financial Statements).
(j)
The fluctuations in our net cash provided by operating activities between years 2013 to 2017 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.
(k)
The increase in our cash used for investing activities in 2015 was attributable to acquisitions of businesses, including the $9.0 billion acquisition of Sikorsky in 2015, net of cash acquired (see “Note 3 – Acquisitions and Divestitures” included in our Notes to Consolidated Financial Statements).
(l)
The increase in our cash provided by financing activities in 2015 was primarily a result of the debt incurred to fund the Sikorsky acquisition (see “Note 10 – Debt” included in our Notes to Consolidated Financial Statements). 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.
(m)
Backlog at December 31, 2015 includes approximately $15.6 billion related to Sikorsky and excludes backlog at December 31, 2015, 2014, and 2013 of $4.8 billion, $6.0 billion, and $6.3 billion related to our IS&GS business, which we divested in 2016.
filings.tools