Delaware
|
|
13-1673581
|
State or other jurisdiction of incorporation or organization
|
|
I.R.S. employer identification no.
|
|
|
|
2941 Fairview Park Drive, Suite 100
Falls Church, Virginia
|
|
22042-4513
|
Address of principal executive offices
|
|
Zip code
|
|
|
|
PART I -
|
PAGE
|
|
Item 1 -
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Item 2 -
|
||
Item 3 -
|
||
Item 4 -
|
||
|
||
PART II -
|
||
Item 1 -
|
||
Item 1A -
|
||
Item 2 -
|
||
Item 6 -
|
||
|
|
Three Months Ended
|
||||||
(Dollars in millions, except per-share amounts)
|
March 31, 2019
|
|
April 1, 2018
|
||||
Revenue:
|
|
|
|
||||
Products
|
$
|
5,251
|
|
|
$
|
4,576
|
|
Services
|
4,010
|
|
|
2,959
|
|
||
|
9,261
|
|
|
7,535
|
|
||
Operating costs and expenses:
|
|
|
|
||||
Products
|
(4,235
|
)
|
|
(3,546
|
)
|
||
Services
|
(3,398
|
)
|
|
(2,444
|
)
|
||
General and administrative (G&A)
|
(614
|
)
|
|
(537
|
)
|
||
|
(8,247
|
)
|
|
(6,527
|
)
|
||
Operating earnings
|
1,014
|
|
|
1,008
|
|
||
Interest, net
|
(117
|
)
|
|
(27
|
)
|
||
Other, net
|
18
|
|
|
(21
|
)
|
||
Earnings before income tax
|
915
|
|
|
960
|
|
||
Provision for income tax, net
|
(170
|
)
|
|
(161
|
)
|
||
Net earnings
|
$
|
745
|
|
|
$
|
799
|
|
|
|
|
|
||||
Earnings per share
|
|
|
|
||||
Basic
|
$
|
2.59
|
|
|
$
|
2.70
|
|
Diluted
|
$
|
2.56
|
|
|
$
|
2.65
|
|
|
Three Months Ended
|
||||||
(Dollars in millions)
|
March 31, 2019
|
|
April 1, 2018
|
||||
Net earnings
|
$
|
745
|
|
|
$
|
799
|
|
Gains (losses) on cash flow hedges
|
17
|
|
|
(3
|
)
|
||
Foreign currency translation adjustments
|
31
|
|
|
1
|
|
||
Change in retirement plans’ funded status
|
63
|
|
|
84
|
|
||
Other comprehensive income, pretax
|
111
|
|
|
82
|
|
||
Provision for income tax, net
|
(16
|
)
|
|
(15
|
)
|
||
Other comprehensive income, net of tax
|
95
|
|
|
67
|
|
||
Comprehensive income
|
$
|
840
|
|
|
$
|
866
|
|
|
(Unaudited)
|
|
|
||||
(Dollars in millions)
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and equivalents
|
$
|
673
|
|
|
$
|
963
|
|
Accounts receivable
|
3,718
|
|
|
3,759
|
|
||
Unbilled receivables
|
7,367
|
|
|
6,576
|
|
||
Inventories
|
6,185
|
|
|
5,977
|
|
||
Other current assets
|
924
|
|
|
914
|
|
||
Total current assets
|
18,867
|
|
|
18,189
|
|
||
Noncurrent assets:
|
|
|
|
||||
Property, plant and equipment, net
|
4,054
|
|
|
3,978
|
|
||
Intangible assets, net
|
2,518
|
|
|
2,585
|
|
||
Goodwill
|
19,668
|
|
|
19,594
|
|
||
Other assets
|
2,359
|
|
|
1,062
|
|
||
Total noncurrent assets
|
28,599
|
|
|
27,219
|
|
||
Total assets
|
$
|
47,466
|
|
|
$
|
45,408
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt and current portion of long-term debt
|
$
|
2,097
|
|
|
$
|
973
|
|
Accounts payable
|
3,008
|
|
|
3,179
|
|
||
Customer advances and deposits
|
6,695
|
|
|
7,270
|
|
||
Other current liabilities
|
3,582
|
|
|
3,317
|
|
||
Total current liabilities
|
15,382
|
|
|
14,739
|
|
||
Noncurrent liabilities:
|
|
|
|
||||
Long-term debt
|
11,451
|
|
|
11,444
|
|
||
Other liabilities
|
8,399
|
|
|
7,493
|
|
||
Commitments and contingencies (see Note M)
|
|
|
|
|
|
||
Total noncurrent liabilities
|
19,850
|
|
|
18,937
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock
|
482
|
|
|
482
|
|
||
Surplus
|
2,937
|
|
|
2,946
|
|
||
Retained earnings
|
29,781
|
|
|
29,326
|
|
||
Treasury stock
|
(17,283
|
)
|
|
(17,244
|
)
|
||
Accumulated other comprehensive loss
|
(3,683
|
)
|
|
(3,778
|
)
|
||
Total shareholders’ equity
|
12,234
|
|
|
11,732
|
|
||
Total liabilities and shareholders
’
equity
|
$
|
47,466
|
|
|
$
|
45,408
|
|
|
Three Months Ended
|
||||||
(Dollars in millions)
|
March 31, 2019
|
|
April 1, 2018
|
||||
Cash flows from operating activities - continuing operations:
|
|
|
|
||||
Net earnings
|
$
|
745
|
|
|
$
|
799
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
||||
Depreciation of property, plant and equipment
|
114
|
|
|
89
|
|
||
Amortization of intangible and finance lease right-of-use assets
|
91
|
|
|
20
|
|
||
Equity-based compensation expense
|
40
|
|
|
29
|
|
||
Deferred income tax provision
|
(10
|
)
|
|
4
|
|
||
(Increase) decrease in assets, net of effects of business acquisitions:
|
|
|
|
||||
Accounts receivable
|
49
|
|
|
(150
|
)
|
||
Unbilled receivables
|
(873
|
)
|
|
(608
|
)
|
||
Inventories
|
(210
|
)
|
|
(236
|
)
|
||
Increase (decrease) in liabilities, net of effects of business acquisitions:
|
|
|
|
||||
Accounts payable
|
(167
|
)
|
|
(358
|
)
|
||
Customer advances and deposits
|
(623
|
)
|
|
(149
|
)
|
||
Other, net
|
49
|
|
|
64
|
|
||
Net cash used by operating activities
|
(795
|
)
|
|
(496
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(181
|
)
|
|
(104
|
)
|
||
Other, net
|
(6
|
)
|
|
(1
|
)
|
||
Net cash used by investing activities
|
(187
|
)
|
|
(105
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from commercial paper, net
|
1,010
|
|
|
2,494
|
|
||
Dividends paid
|
(268
|
)
|
|
(250
|
)
|
||
Purchases of common stock
|
(133
|
)
|
|
(267
|
)
|
||
Other, net
|
88
|
|
|
(25
|
)
|
||
Net cash provided by financing activities
|
697
|
|
|
1,952
|
|
||
Net cash used by discontinued operations
|
(5
|
)
|
|
(2
|
)
|
||
Net (decrease) increase in cash and equivalents
|
(290
|
)
|
|
1,349
|
|
||
Cash and equivalents at beginning of period
|
963
|
|
|
2,983
|
|
||
Cash and equivalents at end of period
|
$
|
673
|
|
|
$
|
4,332
|
|
Supplemental cash flow information:
|
|
|
|
||||
Income tax (payments) refunds, net
|
$
|
(37
|
)
|
|
$
|
4
|
|
Interest payments
|
$
|
(48
|
)
|
|
$
|
(21
|
)
|
|
Common Stock
|
|
Retained
|
|
Treasury
|
|
Accumulated
Other
Comprehensive
|
|
Total
Shareholders’
|
||||||||||||||
(Dollars in millions)
|
Par
|
|
Surplus
|
|
Earnings
|
|
Stock
|
|
Loss
|
|
Equity
|
||||||||||||
December 31, 2018
|
$
|
482
|
|
|
$
|
2,946
|
|
|
$
|
29,326
|
|
|
$
|
(17,244
|
)
|
|
$
|
(3,778
|
)
|
|
$
|
11,732
|
|
Net earnings
|
—
|
|
|
—
|
|
|
745
|
|
|
—
|
|
|
—
|
|
|
745
|
|
||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(290
|
)
|
|
—
|
|
|
—
|
|
|
(290
|
)
|
||||||
Equity-based awards
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
47
|
|
|
—
|
|
|
38
|
|
||||||
Shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
|
(86
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
95
|
|
|
95
|
|
||||||
March 31, 2019
|
$
|
482
|
|
|
$
|
2,937
|
|
|
$
|
29,781
|
|
|
$
|
(17,283
|
)
|
|
$
|
(3,683
|
)
|
|
$
|
12,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
December 31, 2017
|
$
|
482
|
|
|
$
|
2,872
|
|
|
$
|
26,444
|
|
|
$
|
(15,543
|
)
|
|
$
|
(2,820
|
)
|
|
$
|
11,435
|
|
Cumulative-effect adjustment*
|
—
|
|
|
—
|
|
|
638
|
|
|
—
|
|
|
(638
|
)
|
|
—
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
799
|
|
|
—
|
|
|
—
|
|
|
799
|
|
||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(276
|
)
|
|
—
|
|
|
—
|
|
|
(276
|
)
|
||||||
Equity-based awards
|
—
|
|
|
(52
|
)
|
|
—
|
|
|
58
|
|
|
—
|
|
|
6
|
|
||||||
Shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(257
|
)
|
|
—
|
|
|
(257
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
67
|
|
||||||
April 1, 2018
|
$
|
482
|
|
|
$
|
2,820
|
|
|
$
|
27,605
|
|
|
$
|
(15,742
|
)
|
|
$
|
(3,391
|
)
|
|
$
|
11,774
|
|
CSRA shares outstanding (in millions)
|
165.4
|
|
|
Cash consideration per CSRA share
|
$
|
41.25
|
|
Cash paid to purchase outstanding CSRA shares
|
$
|
6,825
|
|
Cash paid to extinguish CSRA debt
|
2,846
|
|
|
Cash settlement of outstanding CSRA stock options and restricted stock units
|
78
|
|
|
Total purchase price
|
$
|
9,749
|
|
Cash and equivalents
|
$
|
45
|
|
Accounts receivable
|
155
|
|
|
Unbilled receivables
|
420
|
|
|
Other current assets
|
303
|
|
|
Property, plant and equipment, net
|
326
|
|
|
Intangible assets, net
|
2,066
|
|
|
Goodwill
|
7,931
|
|
|
Other noncurrent assets
|
369
|
|
|
Total assets
|
$
|
11,615
|
|
Account payable
|
$
|
(135
|
)
|
Customer advances and deposits
|
(151
|
)
|
|
Current lease obligation
|
(51
|
)
|
|
Other current liabilities
|
(434
|
)
|
|
Noncurrent lease obligation
|
(207
|
)
|
|
Noncurrent deferred tax liability
|
(356
|
)
|
|
Other noncurrent liabilities
|
(532
|
)
|
|
Total liabilities
|
$
|
(1,866
|
)
|
Net assets acquired
|
$
|
9,749
|
|
|
Aerospace
|
|
Combat Systems
|
|
Information Technology
|
|
Mission Systems
|
|
Marine Systems
|
|
Total
Goodwill
|
||||||||||||
December 31, 2018 (a)
|
$
|
2,813
|
|
|
$
|
2,633
|
|
|
$
|
9,622
|
|
|
$
|
4,229
|
|
|
$
|
297
|
|
|
$
|
19,594
|
|
Acquisitions (b)
|
3
|
|
|
(1
|
)
|
|
72
|
|
|
6
|
|
|
—
|
|
|
80
|
|
||||||
Other (c)
|
(20
|
)
|
|
9
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
(6
|
)
|
||||||
March 31, 2019 (a)
|
$
|
2,796
|
|
|
$
|
2,641
|
|
|
$
|
9,695
|
|
|
$
|
4,239
|
|
|
$
|
297
|
|
|
$
|
19,668
|
|
|
Gross Carrying Amount (a)
|
Accumulated Amortization
|
Net Carrying Amount
|
|
Gross Carrying Amount (a)
|
Accumulated Amortization
|
Net Carrying Amount
|
||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
Contract and program
intangible assets (b)
|
$
|
3,771
|
|
$
|
(1,589
|
)
|
$
|
2,182
|
|
|
$
|
3,771
|
|
$
|
(1,531
|
)
|
$
|
2,240
|
|
Trade names and trademarks
|
463
|
|
(180
|
)
|
283
|
|
|
469
|
|
(177
|
)
|
292
|
|
||||||
Technology and software
|
171
|
|
(120
|
)
|
51
|
|
|
165
|
|
(116
|
)
|
49
|
|
||||||
Other intangible assets
|
159
|
|
(157
|
)
|
2
|
|
|
159
|
|
(155
|
)
|
4
|
|
||||||
Total intangible assets
|
$
|
4,564
|
|
$
|
(2,046
|
)
|
$
|
2,518
|
|
|
$
|
4,564
|
|
$
|
(1,979
|
)
|
$
|
2,585
|
|
(a)
|
Change in gross carrying amounts consists primarily of adjustments for acquired intangible assets and foreign currency translation.
|
(b)
|
Consists of acquired backlog and probable follow-on work and associated customer relationships.
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
||||
Revenue
|
$
|
96
|
|
|
$
|
115
|
|
Operating earnings
|
68
|
|
|
97
|
|
||
Diluted earnings per share
|
$
|
0.18
|
|
|
$
|
0.25
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
||||
Aircraft manufacturing and completions
|
$
|
1,691
|
|
|
$
|
1,366
|
|
Aircraft services
|
507
|
|
|
451
|
|
||
Pre-owned aircraft
|
42
|
|
|
8
|
|
||
Total Aerospace
|
2,240
|
|
|
1,825
|
|
||
Military vehicles
|
1,134
|
|
|
956
|
|
||
Weapons systems, armament and munitions
|
401
|
|
|
383
|
|
||
Engineering and other services
|
101
|
|
|
101
|
|
||
Total Combat Systems
|
1,636
|
|
|
1,440
|
|
||
Information technology services
|
2,169
|
|
|
1,138
|
|
||
Total Information Technology
|
2,169
|
|
|
1,138
|
|
||
C4ISR* solutions
|
1,158
|
|
|
1,098
|
|
||
Total Mission Systems
|
1,158
|
|
|
1,098
|
|
||
Nuclear-powered submarines
|
1,377
|
|
|
1,296
|
|
||
Surface ships
|
446
|
|
|
483
|
|
||
Repair and other services
|
235
|
|
|
255
|
|
||
Total Marine Systems
|
2,058
|
|
|
2,034
|
|
||
Total revenue
|
$
|
9,261
|
|
|
$
|
7,535
|
|
Three Months Ended March 31, 2019
|
Aerospace
|
|
Combat Systems
|
|
Information Technology
|
|
Mission Systems
|
|
Marine Systems
|
|
Total
Revenue
|
||||||||||||
Fixed-price
|
$
|
2,040
|
|
|
$
|
1,416
|
|
|
$
|
921
|
|
|
$
|
651
|
|
|
$
|
1,416
|
|
|
$
|
6,444
|
|
Cost-reimbursement
|
—
|
|
|
211
|
|
|
841
|
|
|
463
|
|
|
640
|
|
|
2,155
|
|
||||||
Time-and-materials
|
200
|
|
|
9
|
|
|
407
|
|
|
44
|
|
|
2
|
|
|
662
|
|
||||||
Total revenue
|
2,240
|
|
|
1,636
|
|
|
2,169
|
|
|
1,158
|
|
|
2,058
|
|
|
9,261
|
|
||||||
Three Months Ended April 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed-price
|
$
|
1,668
|
|
|
$
|
1,253
|
|
|
$
|
387
|
|
|
$
|
620
|
|
|
$
|
1,305
|
|
|
$
|
5,233
|
|
Cost-reimbursement
|
—
|
|
|
179
|
|
|
577
|
|
|
440
|
|
|
728
|
|
|
1,924
|
|
||||||
Time-and-materials
|
157
|
|
|
8
|
|
|
174
|
|
|
38
|
|
|
1
|
|
|
378
|
|
||||||
Total revenue
|
1,825
|
|
|
1,440
|
|
|
1,138
|
|
|
1,098
|
|
|
2,034
|
|
|
7,535
|
|
Three Months Ended March 31, 2019
|
Aerospace
|
|
Combat Systems
|
|
Information Technology
|
|
Mission Systems
|
|
Marine Systems
|
|
Total
Revenue
|
||||||||||||
U.S. government:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Department of Defense (DoD)
|
$
|
123
|
|
|
$
|
793
|
|
|
$
|
950
|
|
|
$
|
784
|
|
|
$
|
1,975
|
|
|
$
|
4,625
|
|
Non-DoD
|
—
|
|
|
3
|
|
|
1,166
|
|
|
135
|
|
|
—
|
|
|
1,304
|
|
||||||
Foreign Military Sales (FMS)
|
15
|
|
|
79
|
|
|
5
|
|
|
9
|
|
|
44
|
|
|
152
|
|
||||||
Total U.S. government
|
138
|
|
|
875
|
|
|
2,121
|
|
|
928
|
|
|
2,019
|
|
|
6,081
|
|
||||||
U.S. commercial
|
1,329
|
|
|
50
|
|
|
40
|
|
|
35
|
|
|
36
|
|
|
1,490
|
|
||||||
Non-U.S. government
|
59
|
|
|
701
|
|
|
8
|
|
|
166
|
|
|
2
|
|
|
936
|
|
||||||
Non-U.S. commercial
|
714
|
|
|
10
|
|
|
—
|
|
|
29
|
|
|
1
|
|
|
754
|
|
||||||
Total revenue
|
2,240
|
|
|
1,636
|
|
|
2,169
|
|
|
1,158
|
|
|
2,058
|
|
|
9,261
|
|
||||||
Three Months Ended April 1, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
DoD
|
$
|
41
|
|
|
$
|
607
|
|
|
$
|
433
|
|
|
$
|
742
|
|
|
$
|
1,950
|
|
|
$
|
3,773
|
|
Non-DoD
|
—
|
|
|
1
|
|
|
637
|
|
|
118
|
|
|
—
|
|
|
756
|
|
||||||
FMS
|
16
|
|
|
69
|
|
|
8
|
|
|
7
|
|
|
29
|
|
|
129
|
|
||||||
Total U.S. government
|
57
|
|
|
677
|
|
|
1,078
|
|
|
867
|
|
|
1,979
|
|
|
4,658
|
|
||||||
U.S. commercial
|
842
|
|
|
58
|
|
|
40
|
|
|
27
|
|
|
53
|
|
|
1,020
|
|
||||||
Non-U.S. government
|
10
|
|
|
697
|
|
|
20
|
|
|
172
|
|
|
2
|
|
|
901
|
|
||||||
Non-U.S. commercial
|
916
|
|
|
8
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
956
|
|
||||||
Total revenue
|
$
|
1,825
|
|
|
$
|
1,440
|
|
|
$
|
1,138
|
|
|
$
|
1,098
|
|
|
$
|
2,034
|
|
|
$
|
7,535
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
||
Basic weighted average shares outstanding
|
287,917
|
|
|
296,399
|
|
Dilutive effect of stock options and restricted stock/RSUs*
|
2,974
|
|
|
4,705
|
|
Diluted weighted average shares outstanding
|
290,891
|
|
|
301,104
|
|
•
|
Level 1 - quoted prices in active markets for identical assets or liabilities;
|
•
|
Level 2 - inputs, other than quoted prices, observable by a marketplace participant either directly or indirectly; and
|
•
|
Level 3 - unobservable inputs significant to the fair value measurement.
|
|
Carrying
Value
|
|
Fair
Value
|
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2)
|
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||
Financial Assets (Liabilities)
|
March 31, 2019
|
||||||||||||||||||
Measured at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities held in trust:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Available-for-sale debt securities
|
143
|
|
|
143
|
|
|
—
|
|
|
143
|
|
|
—
|
|
|||||
Equity securities
|
50
|
|
|
50
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Cash flow hedges
|
(61
|
)
|
|
(61
|
)
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|||||
Measured at amortized cost:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short- and long-term debt principal
|
(13,646
|
)
|
|
(13,704
|
)
|
|
—
|
|
|
(13,704
|
)
|
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||
Measured at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities held in trust:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
29
|
|
|
$
|
29
|
|
|
$
|
23
|
|
|
$
|
6
|
|
|
$
|
—
|
|
Available-for-sale debt securities
|
121
|
|
|
121
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|||||
Equity securities
|
52
|
|
|
52
|
|
|
52
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Cash flow hedges
|
(69
|
)
|
|
(69
|
)
|
|
—
|
|
|
(69
|
)
|
|
—
|
|
|||||
Measured at amortized cost:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short- and long-term debt principal
|
(12,518
|
)
|
|
(12,346
|
)
|
|
—
|
|
|
(12,346
|
)
|
|
—
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Deferred tax asset
|
$
|
39
|
|
|
$
|
38
|
|
Deferred tax liability
|
(544
|
)
|
|
(577
|
)
|
||
Net deferred tax liability
|
$
|
(505
|
)
|
|
$
|
(539
|
)
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Unbilled revenue
|
$
|
30,497
|
|
|
$
|
27,908
|
|
Advances and progress billings
|
(23,130
|
)
|
|
(21,332
|
)
|
||
Net unbilled receivables
|
$
|
7,367
|
|
|
$
|
6,576
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Work in process
|
$
|
4,510
|
|
|
$
|
4,357
|
|
Raw materials
|
1,535
|
|
|
1,504
|
|
||
Finished goods
|
45
|
|
|
33
|
|
||
Pre-owned aircraft
|
95
|
|
|
83
|
|
||
Total inventories
|
$
|
6,185
|
|
|
$
|
5,977
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Fixed-rate notes due:
|
Interest rate:
|
|
|
|
||||
May 2020
|
2.875%
|
$
|
2,000
|
|
|
$
|
2,000
|
|
May 2021
|
3.000%
|
2,000
|
|
|
2,000
|
|
||
July 2021
|
3.875%
|
500
|
|
|
500
|
|
||
November 2022
|
2.250%
|
1,000
|
|
|
1,000
|
|
||
May 2023
|
3.375%
|
750
|
|
|
750
|
|
||
August 2023
|
1.875%
|
500
|
|
|
500
|
|
||
November 2024
|
2.375%
|
500
|
|
|
500
|
|
||
May 2025
|
3.500%
|
750
|
|
|
750
|
|
||
August 2026
|
2.125%
|
500
|
|
|
500
|
|
||
November 2027
|
2.625%
|
500
|
|
|
500
|
|
||
May 2028
|
3.750%
|
1,000
|
|
|
1,000
|
|
||
November 2042
|
3.600%
|
500
|
|
|
500
|
|
||
Floating-rate notes due:
|
|
|
|
|
||||
May 2020
|
3-month LIBOR + 0.29%
|
500
|
|
|
500
|
|
||
May 2021
|
3-month LIBOR + 0.38%
|
500
|
|
|
500
|
|
||
Commercial paper
|
2.516%
|
1,865
|
|
|
850
|
|
||
Other
|
Various
|
281
|
|
|
168
|
|
||
Total debt principal
|
|
13,646
|
|
|
12,518
|
|
||
Less unamortized debt issuance costs
and discounts
|
|
98
|
|
|
101
|
|
||
Total debt
|
|
13,548
|
|
|
12,417
|
|
||
Less current portion
|
|
2,097
|
|
|
973
|
|
||
Long-term debt
|
|
$
|
11,451
|
|
|
$
|
11,444
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
|
|
|
||||
Salaries and wages
|
$
|
811
|
|
|
$
|
952
|
|
Retirement benefits
|
267
|
|
|
272
|
|
||
Operating lease liabilities
|
255
|
|
|
—
|
|
||
Workers’ compensation
|
248
|
|
|
244
|
|
||
Fair value of cash flow hedges
|
102
|
|
|
141
|
|
||
Other (a)
|
1,899
|
|
|
1,708
|
|
||
Total other current liabilities
|
$
|
3,582
|
|
|
$
|
3,317
|
|
|
|
|
|
||||
Retirement benefits
|
$
|
4,334
|
|
|
$
|
4,422
|
|
Operating lease liabilities
|
1,129
|
|
|
—
|
|
||
Customer deposits on commercial contracts
|
678
|
|
|
726
|
|
||
Deferred income taxes
|
544
|
|
|
577
|
|
||
Other (b)
|
1,714
|
|
|
1,768
|
|
||
Total other liabilities
|
$
|
8,399
|
|
|
$
|
7,493
|
|
|
Losses on Cash Flow Hedges
|
Unrealized Gains on Marketable Securities
|
Foreign Currency Translation Adjustments
|
Changes in Retirement Plans’ Funded Status
|
AOCL
|
||||||||||
December 31, 2018
|
$
|
(71
|
)
|
$
|
—
|
|
$
|
102
|
|
$
|
(3,809
|
)
|
$
|
(3,778
|
)
|
Other comprehensive income, pretax
|
17
|
|
—
|
|
31
|
|
63
|
|
111
|
|
|||||
Provision for income tax, net
|
(2
|
)
|
—
|
|
—
|
|
(14
|
)
|
(16
|
)
|
|||||
Other comprehensive income, net of tax
|
15
|
|
—
|
|
31
|
|
49
|
|
95
|
|
|||||
March 31, 2019
|
$
|
(56
|
)
|
$
|
—
|
|
$
|
133
|
|
$
|
(3,760
|
)
|
$
|
(3,683
|
)
|
December 31, 2017
|
$
|
(94
|
)
|
$
|
19
|
|
$
|
402
|
|
$
|
(3,147
|
)
|
$
|
(2,820
|
)
|
Cumulative effect adjustments*
|
(4
|
)
|
(19
|
)
|
—
|
|
(615
|
)
|
(638
|
)
|
|||||
Other comprehensive income, pretax
|
(3
|
)
|
—
|
|
1
|
|
84
|
|
82
|
|
|||||
Provision for income tax, net
|
1
|
|
—
|
|
—
|
|
(16
|
)
|
(15
|
)
|
|||||
Other comprehensive income, net of tax
|
(2
|
)
|
—
|
|
1
|
|
68
|
|
67
|
|
|||||
April 1, 2018
|
$
|
(100
|
)
|
$
|
—
|
|
$
|
403
|
|
$
|
(3,694
|
)
|
$
|
(3,391
|
)
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
||||
Beginning balance
|
$
|
480
|
|
|
$
|
467
|
|
Warranty expense
|
27
|
|
|
29
|
|
||
Payments
|
(24
|
)
|
|
(25
|
)
|
||
Adjustments
|
(1
|
)
|
|
(3
|
)
|
||
Ending balance
|
$
|
482
|
|
|
$
|
468
|
|
Three Months Ended
|
March 31, 2019
|
||
Finance lease cost
|
|
||
Amortization of right-of-use assets
|
$
|
21
|
|
Interest on lease liabilities
|
7
|
|
|
Operating lease cost
|
86
|
|
|
Short-term lease cost
|
13
|
|
|
Sublease income
|
(4
|
)
|
|
Total lease costs, net
|
$
|
123
|
|
Three Months Ended
|
March 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
||
Operating cash flows from operating leases
|
$
|
88
|
|
Operating cash flows from finance leases
|
7
|
|
|
Financing cash flows from finance leases
|
16
|
|
|
Right-of-use assets obtained in exchange for lease liabilities
|
|
||
Operating leases
|
40
|
|
|
Finance leases
|
6
|
|
|
Weighted-average remaining lease term
|
|
||
Operating leases
|
11.0 years
|
|
|
Finance leases
|
5.6 years
|
|
|
Weighted-average discount rate
|
|
||
Operating leases
|
4
|
%
|
|
Finance leases
|
9
|
%
|
Year Ended December 31
|
Operating Leases
|
|
Finance Leases
|
||||
2019 (excluding the three months ended March 31, 2019)
|
$
|
233
|
|
|
$
|
67
|
|
2020
|
253
|
|
|
81
|
|
||
2021
|
208
|
|
|
74
|
|
||
2022
|
161
|
|
|
74
|
|
||
2023
|
122
|
|
|
29
|
|
||
Thereafter
|
722
|
|
|
66
|
|
||
Total future lease payments
|
1,699
|
|
|
391
|
|
||
Less imputed interest
|
315
|
|
|
81
|
|
||
Present value of future lease payments
|
1,384
|
|
|
310
|
|
||
Less current portion of lease liabilities
|
255
|
|
|
66
|
|
||
Long-term lease liabilities
|
$
|
1,129
|
|
|
$
|
244
|
|
ROU assets
|
$
|
1,315
|
|
|
$
|
357
|
|
Year Ended December 31
|
Operating Leases
|
Capital Leases
|
||||
2019
|
$
|
297
|
|
$
|
92
|
|
2020
|
234
|
|
84
|
|
||
2021
|
196
|
|
78
|
|
||
2022
|
154
|
|
79
|
|
||
2023
|
110
|
|
30
|
|
||
Thereafter
|
698
|
|
70
|
|
||
Total future minimum lease payments
|
$
|
1,689
|
|
433
|
|
|
Less amount representing interest
|
*
|
|
95
|
|
||
Less amount representing executory costs
|
*
|
|
19
|
|
||
Present value of net minimum lease payments
|
*
|
|
319
|
|
||
Less current maturities of capital lease liabilities
|
*
|
|
64
|
|
||
Noncurrent capital lease liabilities
|
*
|
|
$
|
255
|
|
|
Pension Benefits
|
Other Post-retirement Benefits
|
||||||||||||
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
March 31, 2019
|
|
April 1, 2018
|
||||||||
Service cost
|
$
|
28
|
|
|
$
|
46
|
|
$
|
2
|
|
|
$
|
3
|
|
Interest cost
|
150
|
|
|
114
|
|
9
|
|
|
8
|
|
||||
Expected return on plan assets
|
(228
|
)
|
|
(179
|
)
|
(9
|
)
|
|
(9
|
)
|
||||
Recognized net actuarial loss (gain)
|
70
|
|
|
96
|
|
(2
|
)
|
|
(1
|
)
|
||||
Amortization of prior service credit
|
(4
|
)
|
|
(11
|
)
|
(1
|
)
|
|
(1
|
)
|
||||
Net periodic benefit cost (credit)
|
$
|
16
|
|
|
$
|
66
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
Revenue
|
Operating Earnings
|
||||||||||
Three Months Ended
|
March 31, 2019
|
April 1, 2018
|
March 31, 2019
|
April 1, 2018
|
||||||||
Aerospace
|
$
|
2,240
|
|
$
|
1,825
|
|
$
|
328
|
|
$
|
346
|
|
Combat Systems
|
1,636
|
|
1,440
|
|
206
|
|
224
|
|
||||
Information Technology
|
2,169
|
|
1,138
|
|
156
|
|
101
|
|
||||
Mission Systems
|
1,158
|
|
1,098
|
|
148
|
|
146
|
|
||||
Marine Systems
|
2,058
|
|
2,034
|
|
180
|
|
184
|
|
||||
Corporate
|
—
|
|
—
|
|
(4
|
)
|
7
|
|
||||
Total
|
$
|
9,261
|
|
$
|
7,535
|
|
$
|
1,014
|
|
$
|
1,008
|
|
Three Months Ended March 31, 2019
|
Parent
|
Guarantors
on a
Combined
Basis
|
Other
Subsidiaries
on a
Combined
Basis
|
Consolidating
Adjustments
|
Total
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
$
|
6,945
|
|
$
|
2,316
|
|
$
|
—
|
|
$
|
9,261
|
|
Cost of sales
|
18
|
|
(5,726
|
)
|
(1,925
|
)
|
—
|
|
(7,633
|
)
|
|||||
G&A
|
(22
|
)
|
(419
|
)
|
(173
|
)
|
—
|
|
(614
|
)
|
|||||
Operating earnings
|
(4
|
)
|
800
|
|
218
|
|
—
|
|
1,014
|
|
|||||
Interest, net
|
(107
|
)
|
—
|
|
(10
|
)
|
—
|
|
(117
|
)
|
|||||
Other, net
|
(8
|
)
|
4
|
|
22
|
|
—
|
|
18
|
|
|||||
Earnings before income tax
|
(119
|
)
|
804
|
|
230
|
|
—
|
|
915
|
|
|||||
Provision for income tax, net
|
31
|
|
(155
|
)
|
(46
|
)
|
—
|
|
(170
|
)
|
|||||
Equity in net earnings of subsidiaries
|
833
|
|
—
|
|
—
|
|
(833
|
)
|
—
|
|
|||||
Net earnings
|
$
|
745
|
|
$
|
649
|
|
$
|
184
|
|
$
|
(833
|
)
|
$
|
745
|
|
Comprehensive income
|
$
|
840
|
|
$
|
652
|
|
$
|
237
|
|
$
|
(889
|
)
|
$
|
840
|
|
Three Months Ended April 1, 2018
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
—
|
|
$
|
6,484
|
|
$
|
1,051
|
|
$
|
—
|
|
$
|
7,535
|
|
Cost of sales
|
19
|
|
(5,202
|
)
|
(807
|
)
|
—
|
|
(5,990
|
)
|
|||||
G&A
|
(13
|
)
|
(436
|
)
|
(88
|
)
|
—
|
|
(537
|
)
|
|||||
Operating earnings
|
6
|
|
846
|
|
156
|
|
—
|
|
1,008
|
|
|||||
Interest, net
|
(26
|
)
|
—
|
|
(1
|
)
|
—
|
|
(27
|
)
|
|||||
Other, net
|
(24
|
)
|
1
|
|
2
|
|
—
|
|
(21
|
)
|
|||||
Earnings before income tax
|
(44
|
)
|
847
|
|
157
|
|
—
|
|
960
|
|
|||||
Provision for income tax, net
|
42
|
|
(165
|
)
|
(38
|
)
|
—
|
|
(161
|
)
|
|||||
Equity in net earnings of subsidiaries
|
801
|
|
—
|
|
—
|
|
(801
|
)
|
—
|
|
|||||
Net earnings
|
$
|
799
|
|
$
|
682
|
|
$
|
119
|
|
$
|
(801
|
)
|
$
|
799
|
|
Comprehensive income
|
$
|
866
|
|
$
|
685
|
|
$
|
137
|
|
$
|
(822
|
)
|
$
|
866
|
|
Three Months Ended March 31, 2019
|
Parent
|
Guarantors
on a
Combined
Basis
|
Other
Subsidiaries
on a
Combined
Basis
|
Consolidating
Adjustments
|
Total
Consolidated
|
||||||||||
Net cash (used) provided by operating activities*
|
$
|
59
|
|
$
|
(167
|
)
|
$
|
(687
|
)
|
$
|
—
|
|
$
|
(795
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(20
|
)
|
(106
|
)
|
(55
|
)
|
—
|
|
(181
|
)
|
|||||
Other, net
|
5
|
|
1
|
|
(12
|
)
|
—
|
|
(6
|
)
|
|||||
Net cash used by investing activities
|
(15
|
)
|
(105
|
)
|
(67
|
)
|
—
|
|
(187
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||||||
Proceeds from commercial paper, net
|
1,010
|
|
—
|
|
—
|
|
—
|
|
1,010
|
|
|||||
Dividends paid
|
(268
|
)
|
—
|
|
—
|
|
—
|
|
(268
|
)
|
|||||
Purchases of common stock
|
(133
|
)
|
—
|
|
—
|
|
—
|
|
(133
|
)
|
|||||
Other, net
|
(5
|
)
|
—
|
|
93
|
|
—
|
|
88
|
|
|||||
Net cash provided by financing activities
|
604
|
|
—
|
|
93
|
|
—
|
|
697
|
|
|||||
Net cash used by discontinued operations
|
(5
|
)
|
—
|
|
—
|
|
—
|
|
(5
|
)
|
|||||
Cash sweep/funding by parent
|
(774
|
)
|
272
|
|
502
|
|
—
|
|
—
|
|
|||||
Net decrease in cash and equivalents
|
(131
|
)
|
—
|
|
(159
|
)
|
—
|
|
(290
|
)
|
|||||
Cash and equivalents at beginning of period
|
460
|
|
—
|
|
503
|
|
—
|
|
963
|
|
|||||
Cash and equivalents at end of period
|
$
|
329
|
|
$
|
—
|
|
$
|
344
|
|
$
|
—
|
|
$
|
673
|
|
Three Months Ended April 1, 2018
|
|
|
|
|
|
||||||||||
Net cash (used) provided by operating activities*
|
$
|
80
|
|
$
|
105
|
|
$
|
(681
|
)
|
$
|
—
|
|
$
|
(496
|
)
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(7
|
)
|
(86
|
)
|
(11
|
)
|
—
|
|
(104
|
)
|
|||||
Other, net
|
1
|
|
(2
|
)
|
—
|
|
—
|
|
(1
|
)
|
|||||
Net cash used by investing activities
|
(6
|
)
|
(88
|
)
|
(11
|
)
|
—
|
|
(105
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||||||
Proceeds from commercial paper, net
|
2,494
|
|
—
|
|
—
|
|
—
|
|
2,494
|
|
|||||
Purchases of common stock
|
(267
|
)
|
—
|
|
—
|
|
—
|
|
(267
|
)
|
|||||
Dividends paid
|
(250
|
)
|
—
|
|
—
|
|
—
|
|
(250
|
)
|
|||||
Other, net
|
(25
|
)
|
—
|
|
—
|
|
—
|
|
(25
|
)
|
|||||
Net cash provided by financing activities
|
1,952
|
|
—
|
|
—
|
|
—
|
|
1,952
|
|
|||||
Net cash used by discontinued operations
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
|||||
Cash sweep/funding by parent
|
(167
|
)
|
(17
|
)
|
184
|
|
—
|
|
—
|
|
|||||
Net increase in cash and equivalents
|
1,857
|
|
—
|
|
(508
|
)
|
—
|
|
1,349
|
|
|||||
Cash and equivalents at beginning of period
|
1,930
|
|
—
|
|
1,053
|
|
—
|
|
2,983
|
|
|||||
Cash and equivalents at end of period
|
$
|
3,787
|
|
$
|
—
|
|
$
|
545
|
|
$
|
—
|
|
$
|
4,332
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
9,261
|
|
|
$
|
7,535
|
|
|
$
|
1,726
|
|
|
22.9
|
%
|
Operating costs and expenses
|
(8,247
|
)
|
|
(6,527
|
)
|
|
(1,720
|
)
|
|
26.4
|
%
|
|||
Operating earnings
|
1,014
|
|
|
1,008
|
|
|
6
|
|
|
0.6
|
%
|
|||
Operating margin
|
10.9
|
%
|
|
13.4
|
%
|
|
|
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
2,240
|
|
|
$
|
1,825
|
|
|
$
|
415
|
|
|
22.7
|
%
|
Operating earnings
|
328
|
|
|
346
|
|
|
(18
|
)
|
|
(5.2
|
)%
|
|||
Operating margin
|
14.6
|
%
|
|
19.0
|
%
|
|
|
|
|
|||||
Gulfstream aircraft deliveries (in units)
|
34
|
|
|
26
|
|
|
8
|
|
|
30.8
|
%
|
Aircraft manufacturing and completions
|
$
|
324
|
|
Aircraft services
|
57
|
|
|
Pre-owned aircraft
|
34
|
|
|
Total increase
|
$
|
415
|
|
Aircraft manufacturing and completions
|
$
|
(30
|
)
|
Pre-owned aircraft
|
(2
|
)
|
|
G&A/other expenses
|
14
|
|
|
Total decrease
|
$
|
(18
|
)
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
1,636
|
|
|
$
|
1,440
|
|
|
$
|
196
|
|
|
13.6
|
%
|
Operating earnings
|
206
|
|
|
224
|
|
|
(18
|
)
|
|
(8.0
|
)%
|
|||
Operating margin
|
12.6
|
%
|
|
15.6
|
%
|
|
|
|
|
U.S. military vehicles
|
$
|
105
|
|
International military vehicles
|
51
|
|
|
Weapons systems and munitions
|
40
|
|
|
Total increase
|
$
|
196
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
2,169
|
|
|
$
|
1,138
|
|
|
$
|
1,031
|
|
|
90.6
|
%
|
Operating earnings
|
156
|
|
|
101
|
|
|
55
|
|
|
54.5
|
%
|
|||
Operating margin
|
7.2
|
%
|
|
8.9
|
%
|
|
|
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
1,158
|
|
|
$
|
1,098
|
|
|
$
|
60
|
|
|
5.5
|
%
|
Operating earnings
|
148
|
|
|
146
|
|
|
2
|
|
|
1.4
|
%
|
|||
Operating margin
|
12.8
|
%
|
|
13.3
|
%
|
|
|
|
|
Ground systems and products
|
$
|
65
|
|
Naval, air and electronic systems
|
17
|
|
|
Space, intelligence and cyber systems
|
(22
|
)
|
|
Total increase
|
$
|
60
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
2,058
|
|
|
$
|
2,034
|
|
|
$
|
24
|
|
|
1.2
|
%
|
Operating earnings
|
180
|
|
|
184
|
|
|
(4
|
)
|
|
(2.2
|
)%
|
|||
Operating margin
|
8.7
|
%
|
|
9.0
|
%
|
|
|
|
|
U.S. Navy ship construction
|
$
|
50
|
|
Commercial ship construction
|
(16
|
)
|
|
U.S. Navy ship engineering, repair and other services
|
(10
|
)
|
|
Total increase
|
$
|
24
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
||||
Operating (expense) income
|
$
|
(4
|
)
|
|
$
|
7
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
5,251
|
|
|
$
|
4,576
|
|
|
$
|
675
|
|
|
14.8
|
%
|
Operating costs
|
(4,235
|
)
|
|
(3,546
|
)
|
|
(689
|
)
|
|
19.4
|
%
|
Aircraft manufacturing and completions
|
$
|
324
|
|
Military vehicle production
|
142
|
|
|
C4ISR products
|
71
|
|
|
Ship construction
|
66
|
|
|
Other, net
|
72
|
|
|
Total increase
|
$
|
675
|
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
4,010
|
|
|
$
|
2,959
|
|
|
$
|
1,051
|
|
|
35.5
|
%
|
Operating costs
|
(3,398
|
)
|
|
(2,444
|
)
|
|
(954
|
)
|
|
39.0
|
%
|
IT services
|
$
|
1,031
|
|
Aircraft services
|
57
|
|
|
Other, net
|
(37
|
)
|
|
Total increase
|
$
|
1,051
|
|
|
Funded
|
|
Unfunded
|
|
Total Backlog
|
|
Estimated Potential Contract Value
|
|
Total
Potential Contract Value
|
||||||||||
|
March 31, 2019
|
||||||||||||||||||
Aerospace
|
$
|
11,924
|
|
|
$
|
244
|
|
|
$
|
12,168
|
|
|
$
|
2,080
|
|
|
$
|
14,248
|
|
Combat Systems
|
15,475
|
|
|
515
|
|
|
15,990
|
|
|
4,185
|
|
|
20,175
|
|
|||||
Information Technology
|
4,770
|
|
|
3,584
|
|
|
8,354
|
|
|
16,666
|
|
|
25,020
|
|
|||||
Mission Systems
|
5,081
|
|
|
234
|
|
|
5,315
|
|
|
7,186
|
|
|
12,501
|
|
|||||
Marine Systems
|
19,935
|
|
|
7,446
|
|
|
27,381
|
|
|
3,831
|
|
|
31,212
|
|
|||||
Total
|
$
|
57,185
|
|
|
$
|
12,023
|
|
|
$
|
69,208
|
|
|
$
|
33,948
|
|
|
$
|
103,156
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2018
|
||||||||||||||||||
Aerospace
|
$
|
11,208
|
|
|
$
|
167
|
|
|
$
|
11,375
|
|
|
$
|
3,130
|
|
|
$
|
14,505
|
|
Combat Systems
|
16,174
|
|
|
424
|
|
|
16,598
|
|
|
4,187
|
|
|
20,785
|
|
|||||
Information Technology
|
4,717
|
|
|
3,248
|
|
|
7,965
|
|
|
17,066
|
|
|
25,031
|
|
|||||
Mission Systems
|
4,890
|
|
|
445
|
|
|
5,335
|
|
|
7,409
|
|
|
12,744
|
|
|||||
Marine Systems
|
18,837
|
|
|
7,761
|
|
|
26,598
|
|
|
3,703
|
|
|
30,301
|
|
|||||
Total
|
$
|
55,826
|
|
|
$
|
12,045
|
|
|
$
|
67,871
|
|
|
$
|
35,495
|
|
|
$
|
103,366
|
|
•
|
$225 from the U.S. Army for inventory management and support services for the Stryker fleet.
|
•
|
$160 from the Army for various munitions.
|
•
|
$145 from the Army for systems technical support on the Abrams and Stryker programs.
|
•
|
$65 from the Army for design and prototype development of the Abrams tank System Enhancement Package Version 4 (SEPv4).
|
•
|
An IDIQ contract from the U.S. Navy to provide cyber mission engineering support services. The program has a maximum potential contract value of $900 among ten awardees.
|
•
|
$580 for several key contracts to provide services to classified customers.
|
•
|
An IDIQ contract from the Defense Threat Reduction Agency (DTRA) to provide IT support services and capabilities. The program has a maximum potential contract value of $535 among five awardees.
|
•
|
An IDIQ contract from the DoD to provide cybersecurity, planning, execution and analysis services to the Joint Chiefs of Staff’s J7 training activities. The program has a maximum potential contract value of $500 among six awardees.
|
•
|
A blanket purchase agreement of $490 from the Defense Information Systems Agency (DISA) to operate, maintain, deploy and manage Pentagon and regional government-furnished network infrastructures.
|
•
|
$125 to provide turnkey training and simulation services for the Army’s Aviation Center of Excellence in Fort Rucker, Alabama.
|
•
|
$60 from the U.S. Air Force Central Command for communications technical support services in Asia.
|
•
|
$55 from the National Geospatial-Intelligence Agency (NGA) for IT lifecycle management and virtual desktop services.
|
•
|
$50 from the U.S. Department of Veterans Affairs to provide managed services to improve service desk interactions with end users.
|
•
|
$115 from the Army for computing and communications equipment under the Common Hardware Systems-5 (CHS-5) program.
|
•
|
$55 to provide development and maintenance services for the Army’s Consolidated Project Management (CPM) Next program.
|
•
|
$55 from the Navy for the production of Digital Modular Radios (DMR).
|
•
|
$45 from the Army for the production of the Prophet Enhanced Tactical Signals Intelligence System.
|
•
|
$40 for additional equipment to support the Army’s mobile communications network.
|
•
|
$2 billion from the Navy for long-lead materials for Block V Virginia-class submarines.
|
•
|
$300 from the Navy to provide maintenance and repair services for the Arleigh Burke-class (DDG-51) guided-missile destroyer, Wasp-class amphibious assault ship and Nimitz-class aircraft carrier programs.
|
•
|
$210 from the Navy for planning, scheduling and technical support for maintenance activities on the USS South Dakota, a Virginia-class submarine.
|
•
|
$70 from the Navy for planning yard services for the DDG-51 destroyer program.
|
•
|
$40 from the Navy to provide non-nuclear maintenance and repair services for submarines located at the Naval Submarine Support Facility in New London, Connecticut.
|
Three Months Ended
|
March 31, 2019
|
|
April 1, 2018
|
||||
Net cash used by operating activities
|
$
|
(795
|
)
|
|
$
|
(496
|
)
|
Capital expenditures
|
(181
|
)
|
|
(104
|
)
|
||
Free cash flow from operations
|
$
|
(976
|
)
|
|
$
|
(600
|
)
|
Cash flows as a percentage of earnings from continuing operations:
|
|
|
|
||||
Net cash used by operating activities
|
(107
|
)%
|
|
(62
|
)%
|
||
Free cash flow from operations
|
(131
|
)%
|
|
(75
|
)%
|
•
|
general U.S. and international political and economic conditions;
|
•
|
decreases in U.S. government defense spending or changing priorities within the defense budget;
|
•
|
termination or restructuring of government contracts due to unilateral government action;
|
•
|
differences in anticipated and actual program performance, including the ability to perform under long-term, fixed-price contracts within estimated costs, and performance issues with key suppliers and subcontractors;
|
•
|
expected recovery on contract claims and requests for equitable adjustment;
|
•
|
changing customer demand or preferences for business aircraft, including the effects of economic conditions on the business-aircraft market;
|
•
|
potential for changing prices for energy and raw materials;
|
•
|
the status or outcome of legal and/or regulatory proceedings;
|
•
|
potential effects of audits and reviews by government agencies of our government contract performance, compliance and internal control systems and policies;
|
•
|
risks and uncertainties relating to our acquisitions and joint ventures; and
|
•
|
potential for cybersecurity events and other disruptions.
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Program
|
|
Maximum Number of Shares That May Yet Be Purchased Under the Program
|
|||||
Pursuant to Share Buyback Program
|
|
|
|
|
|||||||||
1/1/19-1/27/19
|
|
425,000
|
|
|
$
|
162.87
|
|
|
425,000
|
|
|
7,055,168
|
|
1/28/19-2/24/19
|
|
100,000
|
|
|
171.52
|
|
|
100,000
|
|
|
6,955,168
|
|
|
2/25/19-3/31/19
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,955,168
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shares Delivered or Withheld Pursuant to Restricted Stock Vesting*
|
|
|
|
|
|||||||||
1/1/19-1/27/19
|
|
79,377
|
|
|
155.64
|
|
|
|
|
|
|||
1/28/19-2/24/19
|
|
3,660
|
|
|
170.31
|
|
|
|
|
|
|||
2/25/19-3/31/19
|
|
118,712
|
|
|
167.57
|
|
|
|
|
|
|||
|
|
726,749
|
|
|
$
|
164.08
|
|
|
|
|
|
10.1
|
31.1
|
31.2
|
32.1
|
32.2
|
101
|
Interactive Data File*
|
|
GENERAL DYNAMICS CORPORATION
|
|
|
by
|
|
|
|
William A. Moss
|
|
|
Vice President and Controller
|
|
|
(Authorized Officer and Chief Accounting Officer)
|
Dated: April 24, 2019
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of General Dynamics Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
|
|
/s/ Phebe N. Novakovic
|
|
Phebe N. Novakovic
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of General Dynamics Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Jason W. Aiken
|
|
Jason W. Aiken
|
|
Senior Vice President and Chief Financial Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Phebe N. Novakovic
|
|
Phebe N. Novakovic
|
|
Chairman and Chief Executive Officer
|
1.
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/ Jason W. Aiken
|
|
Jason W. Aiken
|
|
Senior Vice President and Chief Financial Officer
|