Net earnings from continuing operations (b)(c)(d)(e)(f)(g)(h)
6,230
5,046
1,890
3,661
3,126
Net earnings from discontinued operations (i)
—
—
73
1,512
479
Net earnings (c)(d)(e)(f)(g)(h)
6,230
5,046
1,963
5,173
3,605
Earnings from continuing operations per common share
Basic (b)(c)(d)(e)(f)(g)(h)
22.09
17.74
6.56
12.23
10.07
Diluted (b)(c)(d)(e)(f)(g)(h)
21.95
17.59
6.50
12.08
9.93
Earnings from discontinued operations per common share
Basic
—
—
0.26
5.05
1.55
Diluted
—
—
0.25
4.99
1.53
Earnings per common share
Basic (b)(c)(d)(e)(f)(g)(h)
22.09
17.74
6.82
17.28
11.62
Diluted (b)(c)(d)(e)(f)(g)(h)
21.95
17.59
6.75
17.07
11.46
Cash dividends declared per common share
$
9.00
$
8.20
$
7.46
$
6.77
$
6.15
Balance sheet (a)
Cash, cash equivalents and short-term investments (c)
$
1,514
$
772
$
2,861
$
1,837
$
1,090
Total current assets (j)
17,095
16,103
17,505
14,780
14,573
Goodwill
10,604
10,769
10,807
10,764
10,695
Total assets (c)(j)(k)
47,528
44,876
46,620
47,560
49,304
Total current liabilities (j)
13,972
14,398
12,913
12,456
13,918
Total debt, net
12,654
14,104
14,263
14,282
15,261
Total liabilities (c)(j)(k)
44,357
43,427
47,396
46,083
46,207
Total equity (deficit) (c)(g)
3,171
1,449
(776
)
1,477
3,097
Common shares in stockholders’ equity at year-end
280
281
284
289
303
Cash flow information
Net cash provided by operating activities (c)
$
7,311
$
3,138
$
6,476
$
5,189
$
5,101
Net cash used for investing activities (l)
(1,241
)
(1,075
)
(1,147
)
(985
)
(9,734
)
Net cash (used for) provided by financing activities (m)
(5,328
)
(4,152
)
(4,305
)
(3,457
)
4,277
Backlog (a)(n)
$
143,981
$
130,468
$
105,493
$
103,458
$
94,756
(a)
Amounts for 2015 do not reflect the impact of the adoption of Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), as amended, in the first quarter of 2018.
(b)
Our operating profit and net earnings from continuing operations and earnings per share from continuing operations were affected by severance and restructuring charges of $96 million ($76 million, or $0.26 per share, after-tax) in 2018, severance charges of $80 million ($52 million, or $0.17 per share, after-tax) in 2016, and severance charges of $82 million ($53 million, or $0.17 per share, after-tax) in 2015. See “Note 15 – Severance and Restructuring Charges” included in our Notes to Consolidated Financial Statements for a discussion of 2018 severance and restructuring charges.
(c)
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 net earnings were affected by a net FAS/CAS pension adjustment of $1.5 billion in 2019, $1.0 billion in 2018, $876 million in 2017, $902 million in 2016, and $400 million in 2015. We made pension contributions of $1.0 billion in 2019, $5.0 billion in 2018, $46 million in 2017, $23 million in 2016, and $5 million in 2015, and these contributions caused fluctuations in our operating cash flows and cash balance between each of those years. See “Critical Accounting Policies - Postretirement Benefit Plans” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for more information.
(d)
In 2019 and 2017, we recorded a previously deferred non-cash gain of $51 million ($38 million, or $0.13 per share, after-tax) and $198 million ($122 million, or $0.42 per share, after-tax) related to properties sold in 2015 as a result of completing our remaining obligations.
(e)
For the year ended December 31, 2019, net earnings include a gain of $34 million (approximately $0 after-tax) for the sale of our Distributed Energy Solutions business.
(f)
For the year ended December 31, 2018, operating profit includes a non-cash asset impairment charge of $110 million ($83 million, or $0.29 per share, after-tax) related to our equity method investee, Advanced Military Maintenance, Repair and Overhaul Center LLC (AMMROC). For the year ended December 31, 2017, operating profit includes a $64 million ($40 million, or $0.14 per share, after-tax)
charge, which represents our portion of a non-cash asset impairment charge recorded by AMMROC. See “Note 1 – Significant Accounting Policies” included in our Notes to Consolidated Financial Statements for more information.
(g)
In 2017, we recorded a net one-time tax charge of $2.0 billion ($6.77 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.
(h)
Net earnings for the year ended December 31, 2019 include benefits of $127 million ($0.45 per share) for additional tax deductions for the prior year, primarily attributable to foreign derived intangible income treatment based on proposed tax regulations released on March 4, 2019 and our change in tax accounting method. Net earnings for the year ended December 31, 2018 include benefits of $146 million ($0.51 per share) for additional tax deductions for the prior year, primarily attributable to true-ups to the net one-time charges related to the Tax Cuts and Jobs Act enacted on December 22, 2017 and our change in tax accounting method (see “Note 9 – Income Taxes” included in our Notes to Consolidated Financial Statements).
(i)
Our net earnings from discontinued operations in 2016 includes a $1.2 billion net gain related to the divestiture of our IS&GS business in 2016.
(j)
Included in total current assets are assets of discontinued operations of $1.0 billion in 2015. Included in total current liabilities are liabilities of discontinued operations of $900 million in 2015. Included in total assets are assets of discontinued operations of $4.1 billion in 2015. Included in total liabilities are liabilities of discontinued operations of $1.2 billion in 2015.
(k)
Effective January 1, 2019, we adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). As of December 31, 2019, right-of-use operating lease assets were $1.0 billion and operating lease liabilities were $1.1 billion. Approximately $855 million of operating lease liabilities were classified as noncurrent. There was no impact to our consolidated statements of earnings or cash flows as a result of adopting this standard. Prior periods were not restated for the adoption of ASU 2016-02. See “Note 8 – Leases” included in our Notes to Consolidated Financial Statements.
(l)
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.
(m)
The increase in our cash provided by financing activities in 2015 was primarily a result of the debt incurred to fund the Sikorsky acquisition.
(n)
Backlog at December 31, 2015 includes approximately $15.6 billion related to Sikorsky, but excludes $4.8 billion related to our IS&GS business.
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