Delaware
|
|
13-1673581
|
||
State or other jurisdiction of incorporation or organization
|
|
IRS Employer Identification No.
|
||
|
|
|
|
|
11011 Sunset Hills Road
|
Reston,
|
Virginia
|
|
20190
|
Address of principal executive offices
|
|
|
Zip code
|
(703)
|
876-3000
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock
|
GD
|
New York Stock Exchange
|
None
|
PART I
|
|
PAGE
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
PART II
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
PART III
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
Principal Accountant Fees and Services
|
|
PART IV
|
|
|
Item 15.
|
||
Item 16.
|
||
|
•
|
superior aircraft design, quality, performance, safety and reliability;
|
•
|
technologically advanced flight deck and cabin systems; and
|
•
|
industry-leading customer support.
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Aircraft manufacturing and completions
|
$
|
7,355
|
|
|
$
|
6,226
|
|
|
$
|
6,320
|
|
Aircraft services
|
2,154
|
|
|
2,096
|
|
|
1,743
|
|
|||
Pre-owned aircraft
|
292
|
|
|
133
|
|
|
66
|
|
|||
Total Aerospace
|
$
|
9,801
|
|
|
$
|
8,455
|
|
|
$
|
8,129
|
|
•
|
wheeled combat and tactical vehicles;
|
•
|
main battle tanks and tracked combat vehicles;
|
•
|
weapons systems, armament and munitions; and
|
•
|
maintenance, logistics support and sustainment services.
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Military vehicles
|
$
|
4,620
|
|
|
$
|
4,027
|
|
|
$
|
3,731
|
|
Weapons systems, armament and munitions
|
1,906
|
|
|
1,798
|
|
|
1,633
|
|
|||
Engineering and other services
|
481
|
|
|
416
|
|
|
585
|
|
|||
Total Combat Systems
|
$
|
7,007
|
|
|
$
|
6,241
|
|
|
$
|
5,949
|
|
•
|
IT services;
|
•
|
IT infrastructure modernization; and
|
•
|
professional services.
|
•
|
ground systems and products;
|
•
|
space, intelligence and cyber systems; and
|
•
|
naval, air and electronic systems.
|
•
|
nuclear-powered submarines;
|
•
|
surface combatants;
|
•
|
auxiliary and combat-logistics ships;
|
•
|
commercial product carriers and containerships;
|
•
|
design and engineering support services; and
|
•
|
maintenance, modernization and lifecycle support services.
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Nuclear-powered submarines
|
$
|
6,254
|
|
|
$
|
5,712
|
|
|
$
|
5,175
|
|
Surface ships
|
1,912
|
|
|
1,872
|
|
|
1,607
|
|
|||
Repair and other services
|
1,017
|
|
|
918
|
|
|
1,222
|
|
|||
Total Marine Systems
|
$
|
9,183
|
|
|
$
|
8,502
|
|
|
$
|
8,004
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
DoD
|
$
|
19,864
|
|
|
$
|
17,674
|
|
|
$
|
15,441
|
|
Non-DoD
|
5,254
|
|
|
5,306
|
|
|
2,904
|
|
|||
Foreign Military Sales (FMS)*
|
689
|
|
|
626
|
|
|
676
|
|
|||
Total U.S. government
|
$
|
25,807
|
|
|
$
|
23,606
|
|
|
$
|
19,021
|
|
% of total revenue
|
66
|
%
|
|
65
|
%
|
|
61
|
%
|
•
|
the technical excellence, reliability, safety and cost competitiveness of our products and services;
|
•
|
our ability to innovate and develop new products and technologies that improve mission performance and adapt to dynamic threats;
|
•
|
successful program execution and on-time delivery of complex, integrated systems;
|
•
|
our global footprint and accessibility to customers;
|
•
|
the reputation and customer confidence derived from past performance; and
|
•
|
the successful management of customer relationships.
|
|
|
|
|
|
2019 Total
Backlog Not
Expected to Be
Completed in 2020
|
||||||||||||||||||||||
December 31
|
2019
|
|
2018
|
|
|||||||||||||||||||||||
|
Funded
|
|
Unfunded
|
|
Total
|
|
Funded
|
|
Unfunded
|
|
Total
|
|
|||||||||||||||
Aerospace
|
$
|
13,168
|
|
|
$
|
181
|
|
|
$
|
13,349
|
|
|
$
|
11,208
|
|
|
$
|
167
|
|
|
$
|
11,375
|
|
|
$
|
7,800
|
|
Combat Systems
|
14,474
|
|
|
439
|
|
|
14,913
|
|
|
16,174
|
|
|
424
|
|
|
16,598
|
|
|
8,617
|
|
|||||||
Information
Technology
|
4,839
|
|
|
4,294
|
|
|
9,133
|
|
|
4,717
|
|
|
3,248
|
|
|
7,965
|
|
|
2,795
|
|
|||||||
Mission Systems
|
5,037
|
|
|
326
|
|
|
5,363
|
|
|
4,890
|
|
|
445
|
|
|
5,335
|
|
|
1,899
|
|
|||||||
Marine Systems
|
20,012
|
|
|
24,175
|
|
|
44,187
|
|
|
18,837
|
|
|
7,761
|
|
|
26,598
|
|
|
34,690
|
|
|||||||
Total backlog
|
$
|
57,530
|
|
|
$
|
29,415
|
|
|
$
|
86,945
|
|
|
$
|
55,826
|
|
|
$
|
12,045
|
|
|
$
|
67,871
|
|
|
$
|
55,801
|
|
•
|
acquisition planning;
|
•
|
competition requirements;
|
•
|
contractor qualifications;
|
•
|
protection of source selection and vendor information; and
|
•
|
acquisition procedures.
|
•
|
the productivity and availability of labor;
|
•
|
the complexity of the work to be performed;
|
•
|
the cost and availability of materials and components; and
|
•
|
schedule requirements.
|
•
|
Aerospace – Scottsdale, Arizona; Burbank, Lincoln, Long Beach and Van Nuys, California; West Palm Beach, Florida; Brunswick, Pooler and Savannah, Georgia; Cahokia, Illinois; Bedford and Westfield, Massachusetts; Las Vegas, Nevada; Teterboro, New Jersey; New York, New York; Tulsa, Oklahoma; San Juan, Puerto Rico; Dallas and Houston, Texas; Dulles, Virginia; Appleton, Wisconsin; Brisbane, Cairns, Darwin, Perth and Sydney, Australia; Vienna, Austria; Beijing, Hong Kong and Shanghai, China; Berlin, Dusseldorf and Munich, Germany; Jakarta, Indonesia; Kuala Lumpur, Malaysia; Valetta, Malta; Mexicali, Mexico; Amsterdam and Rotterdam, the Netherlands; Manila, Philippines; Singapore; Basel,
|
•
|
Combat Systems – Anniston, Alabama; East Camden and Hampton, Arkansas; Crawfordsville, St. Petersburg and Tallahassee, Florida; Marion, Illinois; Saco, Maine; Sterling Heights, Michigan; Joplin, Missouri; Lincoln, Nebraska; Lima, Ohio; Eynon, Red Lion and Scranton, Pennsylvania; Ladson, South Carolina; Garland, Texas; Williston, Vermont; Auburn and Sumner, Washington; Vienna, Austria; La Gardeur, London, St. Augustin and Valleyfield, Canada; Berlin, Kaiserslautern, Neubrandenburg and Woldegk, Germany; Granada, Madrid, Sevilla and Trubia, Spain; Kreuzlingen and Tägerwilen, Switzerland; Merthyr Tydfil and Oakdale, United Kingdom.
|
•
|
Information Technology – Daleville, Alabama; Pawcatuck, Connecticut; Bossier City, Louisiana; Annapolis Junction and Columbia, Maryland; Westwood, Massachusetts; Rensselaer, New York; Fayetteville, North Carolina; Arlington, Chesapeake, Sterling and several locations in Fairfax County, Virginia.
|
•
|
Mission Systems – Cullman, Alabama; Scottsdale, Arizona; San Jose, California; Orlando, Florida; Annapolis Junction, Maryland; Dedham, Pittsfield and Taunton, Massachusetts; Bloomington, Minnesota; Florham Park, New Jersey; Catawba, Conover and Greensboro, North Carolina; Kilgore, Plano and Wortham, Texas; Fairfax and Marion, Virginia; Calgary, Halifax and Ottawa, Canada; Tallinn, Estonia; Oakdale and St. Leonards, United Kingdom.
|
•
|
Marine Systems – San Diego, California; Groton, New London and Stonington, Connecticut; Jacksonville, Florida; Bath and Brunswick, Maine; North Kingstown, Rhode Island; Norfolk and Portsmouth, Virginia; Bremerton, Washington; Mexicali, Mexico.
|
(Square feet in millions)
|
Company-owned
Facilities
|
|
Leased
Facilities
|
|
Government-owned
Facilities
|
|
Total
|
||||
Aerospace
|
6.3
|
|
|
8.9
|
|
|
—
|
|
|
15.2
|
|
Combat Systems
|
6.1
|
|
|
4.3
|
|
|
5.5
|
|
|
15.9
|
|
Information Technology
|
0.2
|
|
|
4.7
|
|
|
—
|
|
|
4.9
|
|
Mission Systems
|
3.5
|
|
|
3.7
|
|
|
0.9
|
|
|
8.1
|
|
Marine Systems
|
8.2
|
|
|
3.8
|
|
|
—
|
|
|
12.0
|
|
Total square feet
|
24.3
|
|
|
25.4
|
|
|
6.4
|
|
|
56.1
|
|
Name, Position and Office
|
Age
|
|
|
Jason W. Aiken - Senior Vice President and Chief Financial Officer since January 2014; Vice President of the company and Chief Financial Officer of Gulfstream Aerospace Corporation, September 2011 - December 2013; Vice President and Controller, April 2010 - August 2011; Staff Vice President, Accounting, July 2006 - March 2010
|
47
|
|
|
Christopher J. Brady - Vice President of the company and President of General Dynamics Mission Systems since January 2019; Vice President, Engineering of General Dynamics Mission Systems, January 2015 - December 2018; Vice President, Engineering of General Dynamics C4 Systems, May 2013 - December 2014; Vice President, Assured Communications Systems of General Dynamics C4 Systems, August 2004 - May 2013
|
57
|
|
|
Mark L. Burns - Vice President of the company and President of Gulfstream Aerospace Corporation since July 2015; Vice President of the company since February 2014; President, Product Support of Gulfstream Aerospace Corporation, June 2008 - June 2015
|
60
|
|
|
Gregory S. Gallopoulos - Senior Vice President, General Counsel and Secretary since January 2010; Vice President and Deputy General Counsel, July 2008 - January 2010; Managing Partner of Jenner & Block LLP, January 2005 - June 2008
|
60
|
|
|
M. Amy Gilliland - Senior Vice President of the company since April 2015; President of General Dynamics Information Technology since September 2017; Deputy for Operations of General Dynamics Information Technology, April 2017 - September 2017; Senior Vice President, Human Resources and Administration, April 2015 - March 2017; Vice President, Human Resources, February 2014 - March 2015; Staff Vice President, Strategic Planning, January 2013 - February 2014; Staff Vice President, Investor Relations, June 2008 - January 2013
|
45
|
|
|
Kevin M. Graney - Vice President of the company and President of Electric Boat Corporation since October 2019; Vice President of the company and President of NASSCO, January 2017 - October 2019; Vice President and General Manager of NASSCO, November 2013 - January 2017
|
55
|
|
|
Kimberly A. Kuryea - Senior Vice President, Human Resources and Administration since April 2017; Vice President and Controller, September 2011 - March 2017; Chief Financial Officer of General Dynamics Advanced Information Systems, November 2007 - August 2011; Staff Vice President, Internal Audit, March 2004 - October 2007
|
52
|
|
|
Christopher Marzilli - Executive Vice President, Information Technology and Mission Systems since January 2019; Vice President of the company and President of General Dynamics Mission Systems, January 2015 - December 2018; Vice President of the company and President of General Dynamics C4 Systems, January 2006 - December 2014; Senior Vice President and Deputy General Manager of General Dynamics C4 Systems, November 2003 - January 2006
|
60
|
|
|
William A. Moss - Vice President and Controller since April 2017; Staff Vice President, Internal Audit, May 2015 - March 2017; Staff Vice President, Accounting, August 2010 - May 2015
|
56
|
|
|
Phebe N. Novakovic - Chairman and Chief Executive Officer since January 2013; President and Chief Operating Officer, May 2012 - December 2012; Executive Vice President, Marine Systems, May 2010 - May 2012; Senior Vice President, Planning and Development, July 2005 - May 2010; Vice President, Strategic Planning, October 2002 - July 2005
|
62
|
|
|
Mark C. Roualet - Executive Vice President, Combat Systems, since March 2013; Vice President of the company and President of General Dynamics Land Systems, October 2008 - March 2013; Senior Vice President and Chief Operating Officer of General Dynamics Land Systems, July 2007 - October 2008
|
61
|
|
|
Robert E. Smith - Executive Vice President, Marine Systems, since July 2019; Vice President of the company and President of Jet Aviation, January 2014 - July 2019; Vice President and Chief Financial Officer of Jet Aviation, July 2012 - January 2014
|
52
|
|
|
Gary L. Whited - Vice President of the company and President of General Dynamics Land Systems since March 2013; Senior Vice President of General Dynamics Land Systems, September 2011 - March 2013; Vice President and Chief Financial Officer of General Dynamics Land Systems, June 2006 - September 2011
|
59
|
(Dollars and shares in millions, except per-share and employee amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||
Summary of Operations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
39,350
|
|
|
$
|
36,193
|
|
|
$
|
30,973
|
|
|
$
|
30,561
|
|
|
$
|
31,781
|
|
Operating earnings
|
|
4,648
|
|
|
4,457
|
|
|
4,236
|
|
|
3,744
|
|
|
4,494
|
|
|||||
Operating margin
|
|
11.8
|
%
|
|
12.3
|
%
|
|
13.7
|
%
|
|
12.3
|
%
|
|
14.1
|
%
|
|||||
Interest, net
|
|
(460
|
)
|
|
(356
|
)
|
|
(103
|
)
|
|
(91
|
)
|
|
(83
|
)
|
|||||
Provision for income tax, net
|
|
(718
|
)
|
|
(727
|
)
|
|
(1,165
|
)
|
|
(977
|
)
|
|
(1,183
|
)
|
|||||
Earnings from continuing operations
|
|
3,484
|
|
|
3,358
|
|
|
2,912
|
|
|
2,679
|
|
|
3,036
|
|
|||||
Return on sales (a)
|
|
8.9
|
%
|
|
9.3
|
%
|
|
9.4
|
%
|
|
8.8
|
%
|
|
9.6
|
%
|
|||||
Discontinued operations, net of tax
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(107
|
)
|
|
—
|
|
|||||
Net earnings
|
|
3,484
|
|
|
3,345
|
|
|
2,912
|
|
|
2,572
|
|
|
3,036
|
|
|||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Continuing operations
|
|
11.98
|
|
|
11.22
|
|
|
9.56
|
|
|
8.64
|
|
|
9.29
|
|
|||||
Net earnings
|
|
11.98
|
|
|
11.18
|
|
|
9.56
|
|
|
8.29
|
|
|
9.29
|
|
|||||
Cash Flows
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
|
$
|
2,981
|
|
|
$
|
3,148
|
|
|
$
|
3,876
|
|
|
$
|
2,163
|
|
|
$
|
2,607
|
|
Net cash (used) provided by investing activities
|
|
(994
|
)
|
|
(10,234
|
)
|
|
(788
|
)
|
|
(391
|
)
|
|
200
|
|
|||||
Net cash (used) provided by financing activities
|
|
(1,997
|
)
|
|
5,086
|
|
|
(2,399
|
)
|
|
(2,169
|
)
|
|
(4,367
|
)
|
|||||
Net cash used by discontinued operations
|
|
(51
|
)
|
|
(20
|
)
|
|
(40
|
)
|
|
(54
|
)
|
|
(43
|
)
|
|||||
Cash dividends declared per common share
|
|
4.08
|
|
|
3.72
|
|
|
3.36
|
|
|
3.04
|
|
|
2.76
|
|
|||||
Financial Position
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
|
$
|
902
|
|
|
$
|
963
|
|
|
$
|
2,983
|
|
|
$
|
2,334
|
|
|
$
|
2,785
|
|
Total assets
|
|
48,841
|
|
|
45,408
|
|
|
35,046
|
|
|
33,172
|
|
|
32,538
|
|
|||||
Short- and long-term debt
|
|
11,930
|
|
|
12,417
|
|
|
3,982
|
|
|
3,888
|
|
|
3,399
|
|
|||||
Shareholders’ equity
|
|
13,577
|
|
|
11,732
|
|
|
11,435
|
|
|
10,301
|
|
|
10,440
|
|
|||||
Debt-to-equity (b)
|
|
87.9
|
%
|
|
105.8
|
%
|
|
34.8
|
%
|
|
37.7
|
%
|
|
32.6
|
%
|
|||||
Debt-to-capital (c)
|
|
46.8
|
%
|
|
51.4
|
%
|
|
25.8
|
%
|
|
27.4
|
%
|
|
24.6
|
%
|
|||||
Book value per share (d)
|
|
46.88
|
|
|
40.64
|
|
|
38.52
|
|
|
34.06
|
|
|
33.36
|
|
|||||
Other Information
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Free cash flow from operations (e)
|
|
$
|
1,994
|
|
|
$
|
2,458
|
|
|
$
|
3,448
|
|
|
$
|
1,771
|
|
|
$
|
2,038
|
|
Return on equity (f)
|
|
27.2
|
%
|
|
28.1
|
%
|
|
26.6
|
%
|
|
25.6
|
%
|
|
27.7
|
%
|
|||||
Return on invested capital (e)
|
|
14.0
|
%
|
|
15.4
|
%
|
|
16.8
|
%
|
|
16.3
|
%
|
|
18.1
|
%
|
|||||
Funded backlog
|
|
57,530
|
|
|
55,826
|
|
|
52,031
|
|
|
51,783
|
|
|
53,449
|
|
|||||
Total backlog
|
|
86,945
|
|
|
67,871
|
|
|
63,175
|
|
|
62,206
|
|
|
67,786
|
|
|||||
Shares outstanding
|
|
289.6
|
|
|
288.7
|
|
|
296.9
|
|
|
302.4
|
|
|
313.0
|
|
|||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
288.3
|
|
|
295.3
|
|
|
299.2
|
|
|
304.7
|
|
|
321.3
|
|
|||||
Diluted
|
|
290.8
|
|
|
299.2
|
|
|
304.6
|
|
|
310.4
|
|
|
326.7
|
|
|||||
Employees
|
|
102,900
|
|
|
105,600
|
|
|
98,600
|
|
|
98,800
|
|
|
99,900
|
|
(a)
|
Return on sales is calculated as earnings from continuing operations divided by revenue.
|
(b)
|
Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.
|
(c)
|
Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of year end.
|
(d)
|
Book value per share is calculated as total equity divided by total outstanding shares as of year end.
|
(e)
|
See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, for a reconciliation of net cash provided by operating activities to free cash flow from operations and the calculation of return on invested capital (ROIC), both of which are non-GAAP management metrics.
|
(f)
|
Return on equity is calculated by dividing earnings from continuing operations by our average equity during the year.
|
•
|
Record-high operating performance:
|
◦
|
Revenue of $39.4 billion with growth in all of our segments.
|
◦
|
Operating earnings of $4.6 billion, an increase of 4.3% from 2018.
|
◦
|
Earnings from continuing operations per diluted share of $11.98, an increase of 6.8% from 2018.
|
•
|
Record-high backlog of $86.9 billion increased $19.1 billion, or 28.1%, from 2018, supporting our long-term growth expectations:
|
◦
|
Net orders for Gulfstream aircraft increased over 57% from 2018 and reflected significant demand for the new G700 aircraft.
|
◦
|
Several significant contract awards received in 2019 in our defense segments, including $22.2 billion for Block V of the Virginia-class submarine program in our Marine Systems segment, the largest shipbuilding contract in the U.S. Navy’s history.
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
39,350
|
|
|
$
|
36,193
|
|
|
$
|
3,157
|
|
|
8.7
|
%
|
Operating costs and expenses
|
(34,702
|
)
|
|
(31,736
|
)
|
|
(2,966
|
)
|
|
9.3
|
%
|
|||
Operating earnings
|
4,648
|
|
|
4,457
|
|
|
191
|
|
|
4.3
|
%
|
|||
Operating margin
|
11.8
|
%
|
|
12.3
|
%
|
|
|
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
9,801
|
|
|
$
|
8,455
|
|
|
$
|
1,346
|
|
|
15.9
|
%
|
Operating earnings
|
1,532
|
|
|
1,490
|
|
|
42
|
|
|
2.8
|
%
|
|||
Operating margin
|
15.6
|
%
|
|
17.6
|
%
|
|
|
|
|
|||||
Gulfstream aircraft deliveries (in units)
|
147
|
|
|
121
|
|
|
26
|
|
|
21.5
|
%
|
Aircraft manufacturing
|
$
|
1,120
|
|
Aircraft services and completions
|
67
|
|
|
Pre-owned aircraft
|
159
|
|
|
Total increase
|
$
|
1,346
|
|
Aircraft manufacturing
|
$
|
50
|
|
Aircraft services and completions
|
38
|
|
|
Pre-owned aircraft
|
(13
|
)
|
|
G&A/other expenses
|
(33
|
)
|
|
Total increase
|
$
|
42
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
7,007
|
|
|
$
|
6,241
|
|
|
$
|
766
|
|
|
12.3
|
%
|
Operating earnings
|
996
|
|
|
962
|
|
|
34
|
|
|
3.5
|
%
|
|||
Operating margin
|
14.2
|
%
|
|
15.4
|
%
|
|
|
|
|
|
|
U.S. military vehicles
|
$
|
480
|
|
Weapons systems and munitions
|
228
|
|
|
International military vehicles
|
58
|
|
|
Total increase
|
$
|
766
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
8,422
|
|
|
$
|
8,269
|
|
|
$
|
153
|
|
|
1.9
|
%
|
Operating earnings
|
628
|
|
|
608
|
|
|
20
|
|
|
3.3
|
%
|
|||
Operating margin
|
7.5
|
%
|
|
7.4
|
%
|
|
|
|
|
Defense
|
$
|
311
|
|
Federal civilian
|
(97
|
)
|
|
Intelligence and homeland security
|
(61
|
)
|
|
Total increase
|
$
|
153
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
4,937
|
|
|
$
|
4,726
|
|
|
$
|
211
|
|
|
4.5
|
%
|
Operating earnings
|
683
|
|
|
659
|
|
|
24
|
|
|
3.6
|
%
|
|||
Operating margin
|
13.8
|
%
|
|
13.9
|
%
|
|
|
|
|
Naval, air and electronic systems
|
$
|
137
|
|
Ground systems and products
|
58
|
|
|
Space, intelligence and cyber systems
|
16
|
|
|
Total increase
|
$
|
211
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue
|
$
|
9,183
|
|
|
$
|
8,502
|
|
|
$
|
681
|
|
|
8.0
|
%
|
Operating earnings
|
785
|
|
|
761
|
|
|
24
|
|
|
3.2
|
%
|
|||
Operating margin
|
8.5
|
%
|
|
9.0
|
%
|
|
|
|
|
U.S. Navy ship construction
|
$
|
717
|
|
U.S. Navy ship engineering, repair and other services
|
68
|
|
|
Commercial ship construction
|
(104
|
)
|
|
Total increase
|
$
|
681
|
|
Year Ended December 31
|
2019
|
|
2018
|
||||
Operating income (expense)
|
$
|
24
|
|
|
$
|
(23
|
)
|
Year Ended December 31
|
2019
|
|
2018
|
|
Variance
|
|||||||||
Revenue:
|
|
|
|
|
|
|
|
|||||||
Products
|
$
|
23,130
|
|
|
$
|
20,149
|
|
|
$
|
2,981
|
|
|
14.8
|
%
|
Services
|
16,220
|
|
|
16,044
|
|
|
176
|
|
|
1.1
|
%
|
|||
Operating Costs:
|
|
|
|
|
|
|
|
|||||||
Products
|
$
|
(18,569
|
)
|
|
$
|
(15,894
|
)
|
|
$
|
(2,675
|
)
|
|
16.8
|
%
|
Services
|
(13,722
|
)
|
|
(13,584
|
)
|
|
(138
|
)
|
|
1.0
|
%
|
Aircraft manufacturing
|
$
|
1,120
|
|
Ship construction
|
609
|
|
|
Military vehicle production
|
473
|
|
|
C4ISR products*
|
327
|
|
|
Weapons systems and munitions
|
228
|
|
|
Other, net
|
224
|
|
|
Total increase
|
$
|
2,981
|
|
IT services
|
$
|
153
|
|
Other, net
|
23
|
|
|
Total increase
|
$
|
176
|
|
•
|
Total backlog represents the estimated remaining sales value of work to be performed under firm contracts.
|
◦
|
The funded portion of total backlog includes items that have been authorized and appropriated by the U.S. Congress and funded by customers, as well as commitments by international customers that are approved and funded similarly by their governments.
|
◦
|
The unfunded portion of total backlog includes the amounts that we believe are likely to be funded, but there is no guarantee that future budgets and appropriations will provide the same funding level currently anticipated for a given program.
|
•
|
Estimated potential contract value includes unexercised options associated with existing firm contracts and unfunded work on indefinite delivery, indefinite quantity (IDIQ) contracts. Contract options represent agreements to perform additional work under existing contracts at the election of the customer. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. This amount is often less than the total IDIQ contract value, particularly when the contract has multiple awardees. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.
|
•
|
$3.5 billion to provide wheeled armored vehicles and logistics support to an international customer through 2024.
|
•
|
$2.6 billion from the U.K Ministry of Defence to produce AJAX armored fighting vehicles scheduled for delivery to the British Army through 2024 and related in-service support.
|
•
|
$1.3 billion from the Canadian government to produce armored combat support vehicles (ACSVs) and provide associated support services.
|
•
|
$525 to produce Piranha armored vehicles for several non-U.S. customers, including $215 to produce more than 300 armored personnel carriers for the Danish Defense Acquisition and Logistics Organization.
|
•
|
$310 for LAVs for several non-U.S. customers, including $155 for the upgrade and modernization of LAV III combat vehicles for the Canadian Army.
|
•
|
$195 to upgrade Duro tactical vehicles for the Swiss government.
|
•
|
$1 billion from the U.S. Department of State to provide global security engineering and supply chain management services. The program has a maximum potential contract value of over $2 billion.
|
•
|
$330 to provide operations and maintenance support services for a Department of Homeland Security (DHS) data center.
|
•
|
$230 from the National Geospatial-Intelligence Agency (NGA) for network storage and data center services.
|
•
|
$215 from the U.S. Department of State to provide business process support services for the Bureau of Consular Affairs’ Global Support Strategy (GSS) program for visa services.
|
•
|
$170 from the U.S. Air Force for the Battlefield Information Collection and Exploitation System (BICES) program to provide information sharing support to coalition operations.
|
•
|
$1.1 billion to support the operations and enhancement of several state health insurance programs, along with an additional $420 of estimated potential contract value. The segment received $885 of orders for these programs during the year.
|
•
|
$830 to provide classified IT infrastructure services to an agency of the Department of Defense (DoD) with an additional $1.1 billion of estimated potential contract value remaining.
|
•
|
$130 to provide turnkey training and simulation services for the U.S. Army’s Aviation Center of Excellence in Fort Rucker, Alabama. An additional $370 of estimated potential contract value remains under the contract.
|
•
|
$530 from the U.S. Army for computing and communications equipment under the CHS-5 program. $1.7 billion of estimated potential contract value remains under this IDIQ contract.
|
•
|
$185 from the Army for its mobile communications network.
|
•
|
$150 for design and logistics services to sustain the United Kingdom’s legacy Bowman tactical communication and information system.
|
•
|
$735 for the Canadian Maritime Helicopter Project (MHP) to provide integrated mission systems, training and support for Canadian marine helicopters.
|
•
|
$495 for combat and seaframe control systems for the U.S. Navy’s Independence-variant LCSs.
|
•
|
$250 to provide fire-control system modifications for ballistic-missile (SSBN) submarines.
|
•
|
$155 to design and develop the next-generation tactical communication and information system in the initial phase of the United Kingdom’s Morpheus program.
|
Program
|
Backlog (in Billions)
|
|
Number of Ships
|
|
Delivery Date of Final Ship in Backlog
|
||
Virginia-class submarine
|
$
|
26.9
|
|
|
19
|
|
2029
|
DDG-51 destroyer
|
7.0
|
|
|
11
|
|
2026
|
|
T-AO-205 fleet replenishment oiler
|
1.4
|
|
|
5
|
|
2024
|
|
ESB auxiliary support ship
|
1.0
|
|
|
2
|
|
2023
|
Year Ended December 31
|
2019
|
|
2018
|
||||
Net cash provided by operating activities
|
$
|
2,981
|
|
|
$
|
3,148
|
|
Net cash used by investing activities
|
(994
|
)
|
|
(10,234
|
)
|
||
Net cash (used) provided by financing activities
|
(1,997
|
)
|
|
5,086
|
|
||
Net cash used by discontinued operations
|
(51
|
)
|
|
(20
|
)
|
||
Net decrease in cash and equivalents
|
(61
|
)
|
|
(2,020
|
)
|
||
Cash and equivalents at beginning of year
|
963
|
|
|
2,983
|
|
||
Cash and equivalents at end of year
|
902
|
|
|
963
|
|
||
Short- and long-term debt
|
(11,930
|
)
|
|
(12,417
|
)
|
||
Net debt
|
$
|
(11,028
|
)
|
|
$
|
(11,454
|
)
|
Debt-to-equity (a)
|
87.9
|
%
|
|
105.8
|
%
|
||
Debt-to-capital (b)
|
46.8
|
%
|
|
51.4
|
%
|
(a)
|
Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.
|
(b)
|
Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of year end.
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Net cash provided by operating activities
|
$
|
2,981
|
|
|
$
|
3,148
|
|
|
$
|
3,876
|
|
|
$
|
2,163
|
|
|
$
|
2,607
|
|
Capital expenditures
|
(987
|
)
|
|
(690
|
)
|
|
(428
|
)
|
|
(392
|
)
|
|
(569
|
)
|
|||||
Free cash flow from operations
|
$
|
1,994
|
|
|
$
|
2,458
|
|
|
$
|
3,448
|
|
|
$
|
1,771
|
|
|
$
|
2,038
|
|
Cash flows as a percentage of earnings
from continuing operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
86
|
%
|
|
94
|
%
|
|
133
|
%
|
|
81
|
%
|
|
86
|
%
|
|||||
Free cash flow from operations
|
57
|
%
|
|
73
|
%
|
|
118
|
%
|
|
66
|
%
|
|
67
|
%
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Earnings from continuing operations
|
$
|
3,484
|
|
|
$
|
3,358
|
|
|
$
|
2,912
|
|
|
$
|
2,679
|
|
|
$
|
3,036
|
|
After-tax interest expense
|
373
|
|
|
295
|
|
|
76
|
|
|
64
|
|
|
64
|
|
|||||
After-tax amortization expense
|
287
|
|
|
258
|
|
|
51
|
|
|
57
|
|
|
75
|
|
|||||
Net operating profit after taxes
|
$
|
4,144
|
|
|
$
|
3,911
|
|
|
$
|
3,039
|
|
|
$
|
2,800
|
|
|
$
|
3,175
|
|
Average invested capital
|
$
|
29,620
|
|
|
$
|
25,367
|
|
|
$
|
18,099
|
|
|
$
|
17,168
|
|
|
$
|
17,579
|
|
Return on invested capital
|
14.0
|
%
|
|
15.4
|
%
|
|
16.8
|
%
|
|
16.3
|
%
|
|
18.1
|
%
|
|
|
|
Payments Due by Period
|
||||||||||||||||
Contractual Obligations
|
Total Amount Committed
|
|
Less Than 1 Year
|
|
1-3 Years
|
|
4-5 Years
|
|
More Than 5 Years
|
||||||||||
Debt (a)
|
$
|
13,504
|
|
|
$
|
3,229
|
|
|
$
|
4,424
|
|
|
$
|
2,017
|
|
|
$
|
3,834
|
|
Operating leases
|
1,864
|
|
|
302
|
|
|
473
|
|
|
299
|
|
|
790
|
|
|||||
Finance leases
|
443
|
|
|
91
|
|
|
166
|
|
|
55
|
|
|
131
|
|
|||||
Purchase obligations (b)
|
43,187
|
|
|
19,598
|
|
|
16,610
|
|
|
5,183
|
|
|
1,796
|
|
|||||
Other long-term liabilities (c)
|
26,019
|
|
|
5,167
|
|
|
3,053
|
|
|
2,608
|
|
|
15,191
|
|
|||||
|
$
|
85,017
|
|
|
$
|
28,387
|
|
|
$
|
24,726
|
|
|
$
|
10,162
|
|
|
$
|
21,742
|
|
|
|
|
Amount of Commitment Expiration by Period
|
||||||||||||||||
Commercial Commitments
|
Total Amount Committed
|
|
Less Than 1 Year
|
|
1-3 Years
|
|
4-5 Years
|
|
More Than 5 Years
|
||||||||||
Letters of credit and guarantees*
|
$
|
1,463
|
|
|
$
|
861
|
|
|
$
|
249
|
|
|
$
|
324
|
|
|
$
|
29
|
|
Aircraft trade-in options*
|
380
|
|
|
65
|
|
|
148
|
|
|
167
|
|
|
—
|
|
|||||
|
$
|
1,843
|
|
|
$
|
926
|
|
|
$
|
397
|
|
|
$
|
491
|
|
|
$
|
29
|
|
(Dollars in millions)
|
2019
|
|
2018
|
||||
Recognized
|
$
|
60
|
|
|
$
|
61
|
|
Unrecognized
|
(161
|
)
|
|
(135
|
)
|
|
Year Ended December 31
|
||||||||||
(Dollars in millions, except per-share amounts)
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue:
|
|
|
|
|
|
||||||
Products
|
$
|
23,130
|
|
|
$
|
20,149
|
|
|
$
|
19,016
|
|
Services
|
16,220
|
|
|
16,044
|
|
|
11,957
|
|
|||
|
39,350
|
|
|
36,193
|
|
|
30,973
|
|
|||
Operating costs and expenses:
|
|
|
|
|
|
||||||
Products
|
(18,569
|
)
|
|
(15,894
|
)
|
|
(14,773
|
)
|
|||
Services
|
(13,722
|
)
|
|
(13,584
|
)
|
|
(9,958
|
)
|
|||
General and administrative (G&A)
|
(2,411
|
)
|
|
(2,258
|
)
|
|
(2,006
|
)
|
|||
|
(34,702
|
)
|
|
(31,736
|
)
|
|
(26,737
|
)
|
|||
Operating earnings
|
4,648
|
|
|
4,457
|
|
|
4,236
|
|
|||
Interest, net
|
(460
|
)
|
|
(356
|
)
|
|
(103
|
)
|
|||
Other, net
|
14
|
|
|
(16
|
)
|
|
(56
|
)
|
|||
Earnings from continuing operations before income tax
|
4,202
|
|
|
4,085
|
|
|
4,077
|
|
|||
Provision for income tax, net
|
(718
|
)
|
|
(727
|
)
|
|
(1,165
|
)
|
|||
Earnings from continuing operations
|
3,484
|
|
|
3,358
|
|
|
2,912
|
|
|||
Discontinued operations, net of tax provision of $13 in 2018
|
—
|
|
|
(13
|
)
|
|
—
|
|
|||
Net earnings
|
$
|
3,484
|
|
|
$
|
3,345
|
|
|
$
|
2,912
|
|
|
|
|
|
|
|
||||||
Earnings per share
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
12.09
|
|
|
$
|
11.37
|
|
|
$
|
9.73
|
|
Discontinued operations
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|||
Net earnings
|
$
|
12.09
|
|
|
$
|
11.33
|
|
|
$
|
9.73
|
|
Diluted:
|
|
|
|
|
|
||||||
Continuing operations
|
$
|
11.98
|
|
|
$
|
11.22
|
|
|
$
|
9.56
|
|
Discontinued operations
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|||
Net earnings
|
$
|
11.98
|
|
|
$
|
11.18
|
|
|
$
|
9.56
|
|
|
Year Ended December 31
|
|||||||||||
(Dollars in millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net earnings
|
|
$
|
3,484
|
|
|
$
|
3,345
|
|
|
$
|
2,912
|
|
Gains on cash flow hedges
|
|
97
|
|
|
36
|
|
|
341
|
|
|||
Unrealized gains on marketable securities
|
|
—
|
|
|
—
|
|
|
9
|
|
|||
Foreign currency translation adjustments
|
|
186
|
|
|
(300
|
)
|
|
348
|
|
|||
Change in retirement plans’ funded status
|
|
(886
|
)
|
|
(61
|
)
|
|
20
|
|
|||
Other comprehensive (loss) income, pretax
|
|
(603
|
)
|
|
(325
|
)
|
|
718
|
|
|||
Benefit (provision) for income tax, net
|
|
162
|
|
|
5
|
|
|
(151
|
)
|
|||
Other comprehensive (loss) income, net of tax
|
|
(441
|
)
|
|
(320
|
)
|
|
567
|
|
|||
Comprehensive income
|
|
$
|
3,043
|
|
|
$
|
3,025
|
|
|
$
|
3,479
|
|
|
December 31
|
||||||
(Dollars in millions)
|
2019
|
|
2018
|
||||
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and equivalents
|
$
|
902
|
|
|
$
|
963
|
|
Accounts receivable
|
3,544
|
|
|
3,759
|
|
||
Unbilled receivables
|
7,857
|
|
|
6,576
|
|
||
Inventories
|
6,306
|
|
|
5,977
|
|
||
Other current assets
|
1,171
|
|
|
914
|
|
||
Total current assets
|
19,780
|
|
|
18,189
|
|
||
Noncurrent assets:
|
|
|
|
||||
Property, plant and equipment, net
|
4,475
|
|
|
3,978
|
|
||
Intangible assets, net
|
2,315
|
|
|
2,585
|
|
||
Goodwill
|
19,677
|
|
|
19,594
|
|
||
Other assets
|
2,594
|
|
|
1,062
|
|
||
Total noncurrent assets
|
29,061
|
|
|
27,219
|
|
||
Total assets
|
$
|
48,841
|
|
|
$
|
45,408
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt and current portion of long-term debt
|
$
|
2,920
|
|
|
$
|
973
|
|
Accounts payable
|
3,162
|
|
|
3,179
|
|
||
Customer advances and deposits
|
7,148
|
|
|
7,270
|
|
||
Other current liabilities
|
3,571
|
|
|
3,317
|
|
||
Total current liabilities
|
16,801
|
|
|
14,739
|
|
||
Noncurrent liabilities:
|
|
|
|
||||
Long-term debt
|
9,010
|
|
|
11,444
|
|
||
Other liabilities
|
9,453
|
|
|
7,493
|
|
||
Commitments and contingencies (see Note O)
|
|
|
|
|
|
||
Total noncurrent liabilities
|
18,463
|
|
|
18,937
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock
|
482
|
|
|
482
|
|
||
Surplus
|
3,039
|
|
|
2,946
|
|
||
Retained earnings
|
31,633
|
|
|
29,326
|
|
||
Treasury stock
|
(17,358
|
)
|
|
(17,244
|
)
|
||
Accumulated other comprehensive loss
|
(4,219
|
)
|
|
(3,778
|
)
|
||
Total shareholders’ equity
|
13,577
|
|
|
11,732
|
|
||
Total liabilities and shareholders’ equity
|
$
|
48,841
|
|
|
$
|
45,408
|
|
|
Year Ended December 31
|
||||||||||
(Dollars in millions)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities - continuing operations:
|
|
|
|
|
|
||||||
Net earnings
|
$
|
3,484
|
|
|
$
|
3,345
|
|
|
$
|
2,912
|
|
Adjustments to reconcile net earnings to net cash from operating activities:
|
|
|
|
|
|
||||||
Depreciation of property, plant and equipment
|
466
|
|
|
436
|
|
|
362
|
|
|||
Amortization of intangible and finance lease right-of-use assets
|
363
|
|
|
327
|
|
|
79
|
|
|||
Equity-based compensation expense
|
133
|
|
|
140
|
|
|
123
|
|
|||
Deferred income tax (benefit) provision
|
92
|
|
|
(3
|
)
|
|
401
|
|
|||
Discontinued operations, net of tax
|
—
|
|
|
13
|
|
|
—
|
|
|||
(Increase) decrease in assets, net of effects of business acquisitions:
|
|
|
|
|
|
||||||
Accounts receivable
|
176
|
|
|
417
|
|
|
(195
|
)
|
|||
Unbilled receivables
|
(1,303
|
)
|
|
(800
|
)
|
|
(987
|
)
|
|||
Inventories
|
(376
|
)
|
|
(591
|
)
|
|
(182
|
)
|
|||
Other current assets
|
8
|
|
|
310
|
|
|
207
|
|
|||
Increase (decrease) in liabilities, net of effects of business acquisitions:
|
|
|
|
|
|
||||||
Accounts payable
|
6
|
|
|
(197
|
)
|
|
657
|
|
|||
Customer advances and deposits
|
(105
|
)
|
|
36
|
|
|
264
|
|
|||
Other, net
|
37
|
|
|
(285
|
)
|
|
235
|
|
|||
Net cash provided by operating activities
|
2,981
|
|
|
3,148
|
|
|
3,876
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Capital expenditures
|
(987
|
)
|
|
(690
|
)
|
|
(428
|
)
|
|||
Business acquisitions, net of cash acquired
|
(19
|
)
|
|
(10,099
|
)
|
|
(399
|
)
|
|||
Proceeds from sales of assets
|
14
|
|
|
562
|
|
|
50
|
|
|||
Other, net
|
(2
|
)
|
|
(7
|
)
|
|
(11
|
)
|
|||
Net cash used by investing activities
|
(994
|
)
|
|
(10,234
|
)
|
|
(788
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Dividends paid
|
(1,152
|
)
|
|
(1,075
|
)
|
|
(986
|
)
|
|||
(Repayments of) proceeds from commercial paper, net
|
(850
|
)
|
|
850
|
|
|
—
|
|
|||
Purchases of common stock
|
(231
|
)
|
|
(1,769
|
)
|
|
(1,558
|
)
|
|||
Proceeds from fixed-rate notes
|
—
|
|
|
6,461
|
|
|
985
|
|
|||
Proceeds from floating-rate notes
|
—
|
|
|
1,000
|
|
|
—
|
|
|||
Repayment of CSRA accounts receivable purchase agreement
|
—
|
|
|
(450
|
)
|
|
—
|
|
|||
Repayment of fixed-rate notes
|
—
|
|
|
—
|
|
|
(900
|
)
|
|||
Other, net
|
236
|
|
|
69
|
|
|
60
|
|
|||
Net cash (used) provided by financing activities
|
(1,997
|
)
|
|
5,086
|
|
|
(2,399
|
)
|
|||
Net cash used by discontinued operations
|
(51
|
)
|
|
(20
|
)
|
|
(40
|
)
|
|||
Net (decrease) increase in cash and equivalents
|
(61
|
)
|
|
(2,020
|
)
|
|
649
|
|
|||
Cash and equivalents at beginning of year
|
963
|
|
|
2,983
|
|
|
2,334
|
|
|||
Cash and equivalents at end of year
|
$
|
902
|
|
|
$
|
963
|
|
|
$
|
2,983
|
|
|
Common Stock
|
|
Retained
|
|
Treasury
|
|
Accumulated
Other
Comprehensive
|
|
Total
Shareholders’
|
||||||||||||||
(Dollars in millions)
|
Par
|
|
Surplus
|
|
Earnings
|
|
Stock
|
|
Loss
|
|
Equity
|
||||||||||||
December 31, 2016
|
$
|
482
|
|
|
$
|
2,819
|
|
|
$
|
24,543
|
|
|
$
|
(14,156
|
)
|
|
$
|
(3,387
|
)
|
|
$
|
10,301
|
|
Cumulative-effect adjustment (a)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
2,912
|
|
|
—
|
|
|
—
|
|
|
2,912
|
|
||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(1,008
|
)
|
|
—
|
|
|
—
|
|
|
(1,008
|
)
|
||||||
Equity-based awards
|
—
|
|
|
53
|
|
|
—
|
|
|
146
|
|
|
—
|
|
|
199
|
|
||||||
Shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,533
|
)
|
|
—
|
|
|
(1,533
|
)
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
567
|
|
|
567
|
|
||||||
December 31, 2017
|
482
|
|
|
2,872
|
|
|
26,444
|
|
|
(15,543
|
)
|
|
(2,820
|
)
|
|
11,435
|
|
||||||
Cumulative-effect adjustments (b)
|
—
|
|
|
—
|
|
|
638
|
|
|
—
|
|
|
(638
|
)
|
|
—
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
3,345
|
|
|
—
|
|
|
—
|
|
|
3,345
|
|
||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(1,101
|
)
|
|
—
|
|
|
—
|
|
|
(1,101
|
)
|
||||||
Equity-based awards
|
—
|
|
|
74
|
|
|
—
|
|
|
105
|
|
|
—
|
|
|
179
|
|
||||||
Shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,806
|
)
|
|
—
|
|
|
(1,806
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(320
|
)
|
|
(320
|
)
|
||||||
December 31, 2018
|
482
|
|
|
2,946
|
|
|
29,326
|
|
|
(17,244
|
)
|
|
(3,778
|
)
|
|
11,732
|
|
||||||
Net earnings
|
—
|
|
|
—
|
|
|
3,484
|
|
|
—
|
|
|
—
|
|
|
3,484
|
|
||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(1,177
|
)
|
|
—
|
|
|
—
|
|
|
(1,177
|
)
|
||||||
Equity-based awards
|
—
|
|
|
93
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
163
|
|
||||||
Shares purchased
|
—
|
|
|
—
|
|
|
—
|
|
|
(184
|
)
|
|
—
|
|
|
(184
|
)
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(441
|
)
|
|
(441
|
)
|
||||||
December 31, 2019
|
$
|
482
|
|
|
$
|
3,039
|
|
|
$
|
31,633
|
|
|
$
|
(17,358
|
)
|
|
$
|
(4,219
|
)
|
|
$
|
13,577
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Interest expense
|
$
|
472
|
|
|
$
|
374
|
|
|
$
|
117
|
|
Interest income
|
(12
|
)
|
|
(18
|
)
|
|
(14
|
)
|
|||
Interest expense, net
|
$
|
460
|
|
|
$
|
356
|
|
|
$
|
103
|
|
•
|
Accounting Standards Codification (ASC) Topic 842, Leases. ASC Topic 842 requires the recognition of lease rights and obligations as assets and liabilities on the balance sheet. Previously, lessees were not required to recognize on the balance sheet assets and liabilities arising from operating leases. As we elected the cumulative-effect adoption method, prior-period information has not been restated.
|
•
|
ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans. ASU
|
Cash and equivalents
|
$
|
45
|
|
Accounts receivable
|
155
|
|
|
Unbilled receivables
|
415
|
|
|
Other current assets
|
303
|
|
|
Property, plant and equipment, net
|
326
|
|
|
Intangible assets, net
|
2,066
|
|
|
Goodwill
|
7,935
|
|
|
Other noncurrent assets
|
369
|
|
|
Total assets
|
$
|
11,614
|
|
Accounts payable
|
$
|
(135
|
)
|
Customer advances and deposits
|
(151
|
)
|
|
Current lease obligation
|
(51
|
)
|
|
Other current liabilities
|
(434
|
)
|
|
Noncurrent lease obligation
|
(207
|
)
|
|
Noncurrent deferred tax liability
|
(355
|
)
|
|
Other noncurrent liabilities
|
(532
|
)
|
|
Total liabilities
|
$
|
(1,865
|
)
|
Net assets acquired
|
$
|
9,749
|
|
Year Ended December 31
|
2018
|
|
2017
|
||||
Revenue
|
$
|
37,534
|
|
|
$
|
35,828
|
|
Earnings from continuing operations
|
3,390
|
|
|
2,982
|
|
||
Diluted earnings per share from continuing operations
|
$
|
11.33
|
|
|
$
|
9.79
|
|
•
|
The impact of acquisition financing.
|
•
|
The removal of CSRA operations that we were required by a government customer to dispose of to address an organizational conflict of interest with respect to services provided to the customer. We completed the sale of these operations in 2018.
|
•
|
The removal of CSRA’s historical pre-acquisition intangible asset amortization expense and debt-related interest expense.
|
•
|
The impact of intangible asset amortization expense assuming our estimate of fair value was applied on January 1, 2017.
|
•
|
The payment of acquisition-related costs assuming they were incurred on January 1, 2017.
|
•
|
Hawker Pacific, a leading provider of aircraft services across Asia Pacific and the Middle East, and two fixed-base operator (FBO) businesses in our Aerospace segment;
|
•
|
a maintenance and service provider for the German Army and other international customers in our Combat Systems segment; and
|
•
|
a provider of specialized transmitters and receivers in our Mission Systems segment.
|
•
|
an FBO in our Aerospace segment;
|
•
|
a provider of mission-critical support services in our Information Technology segment; and
|
•
|
a manufacturer of electronics and communications products and a manufacturer of signal distribution products in our Mission Systems segment.
|
|
Aerospace
|
|
Combat Systems
|
|
Information Systems and Technology
|
|
Information Technology
|
|
Mission Systems
|
|
Marine Systems
|
|
Total Goodwill
|
||||||||||||||
December 31, 2017 (a)
|
$
|
2,638
|
|
|
$
|
2,677
|
|
|
$
|
6,302
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
297
|
|
|
$
|
11,914
|
|
Acquisitions/
divestitures (b)
|
—
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|||||||
Other (c)
|
40
|
|
|
(14
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|||||||
April 1, 2018 (a)
|
2,678
|
|
|
2,663
|
|
|
6,317
|
|
|
—
|
|
|
—
|
|
|
297
|
|
|
11,955
|
|
|||||||
Change in reporting
unit composition (d)
|
—
|
|
|
—
|
|
|
(6,317
|
)
|
|
2,076
|
|
|
4,241
|
|
|
—
|
|
|
—
|
|
|||||||
Acquisitions/
divestitures (b)
|
183
|
|
|
30
|
|
|
—
|
|
|
7,601
|
|
|
7
|
|
|
—
|
|
|
7,821
|
|
|||||||
Other (c)
|
(48
|
)
|
|
(60
|
)
|
|
—
|
|
|
(55
|
)
|
|
(19
|
)
|
|
—
|
|
|
(182
|
)
|
|||||||
December 31, 2018 (e)
|
2,813
|
|
|
2,633
|
|
|
—
|
|
|
9,622
|
|
|
4,229
|
|
|
297
|
|
|
19,594
|
|
|||||||
Acquisitions/
divestitures (b)
|
3
|
|
|
15
|
|
|
—
|
|
|
77
|
|
|
6
|
|
|
—
|
|
|
101
|
|
|||||||
Other (c)
|
15
|
|
|
33
|
|
|
—
|
|
|
1
|
|
|
(67
|
)
|
|
—
|
|
|
(18
|
)
|
|||||||
December 31, 2019 (e)
|
$
|
2,831
|
|
|
$
|
2,681
|
|
|
$
|
—
|
|
|
$
|
9,700
|
|
|
$
|
4,168
|
|
|
$
|
297
|
|
|
$
|
19,677
|
|
|
Gross Carrying Amount (a)
|
Accumulated Amortization
|
Net Carrying Amount
|
|
Gross Carrying Amount (a)
|
Accumulated Amortization
|
Net Carrying Amount
|
||||||||||||
December 31
|
2019
|
|
2018
|
||||||||||||||||
Contract and program
intangible assets (b)
|
$
|
3,776
|
|
$
|
(1,779
|
)
|
$
|
1,997
|
|
|
$
|
3,771
|
|
$
|
(1,531
|
)
|
$
|
2,240
|
|
Trade names and trademarks
|
474
|
|
(195
|
)
|
279
|
|
|
469
|
|
(177
|
)
|
292
|
|
||||||
Technology and software
|
164
|
|
(126
|
)
|
38
|
|
|
165
|
|
(116
|
)
|
49
|
|
||||||
Other intangible assets
|
159
|
|
(158
|
)
|
1
|
|
|
159
|
|
(155
|
)
|
4
|
|
||||||
Total intangible assets
|
$
|
4,573
|
|
$
|
(2,258
|
)
|
$
|
2,315
|
|
|
$
|
4,564
|
|
$
|
(1,979
|
)
|
$
|
2,585
|
|
Intangible Asset
|
|
Range of Amortization Life
|
Contract and program intangible assets
|
|
7-30
|
Trade names and trademarks
|
|
30
|
Technology and software
|
|
5-15
|
Other intangible assets
|
|
7
|
Year Ended December 31
|
Amortization Expense
|
||
2020
|
$
|
264
|
|
2021
|
220
|
|
|
2022
|
192
|
|
|
2023
|
177
|
|
|
2024
|
164
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue
|
$
|
342
|
|
|
$
|
377
|
|
|
$
|
292
|
|
Operating earnings
|
271
|
|
|
345
|
|
|
323
|
|
|||
Diluted earnings per share
|
$
|
0.74
|
|
|
$
|
0.91
|
|
|
$
|
0.69
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Aircraft manufacturing and completions
|
$
|
7,355
|
|
|
$
|
6,226
|
|
|
$
|
6,320
|
|
Aircraft services
|
2,154
|
|
|
2,096
|
|
|
1,743
|
|
|||
Pre-owned aircraft
|
292
|
|
|
133
|
|
|
66
|
|
|||
Total Aerospace
|
9,801
|
|
|
8,455
|
|
|
8,129
|
|
|||
Military vehicles
|
4,620
|
|
|
4,027
|
|
|
3,731
|
|
|||
Weapons systems, armament and munitions
|
1,906
|
|
|
1,798
|
|
|
1,633
|
|
|||
Engineering and other services
|
481
|
|
|
416
|
|
|
585
|
|
|||
Total Combat Systems
|
7,007
|
|
|
6,241
|
|
|
5,949
|
|
|||
IT services
|
8,422
|
|
|
8,269
|
|
|
4,410
|
|
|||
Total Information Technology
|
8,422
|
|
|
8,269
|
|
|
4,410
|
|
|||
C4ISR solutions
|
4,937
|
|
|
4,726
|
|
|
4,481
|
|
|||
Total Mission Systems
|
4,937
|
|
|
4,726
|
|
|
4,481
|
|
|||
Nuclear-powered submarines
|
6,254
|
|
|
5,712
|
|
|
5,175
|
|
|||
Surface ships
|
1,912
|
|
|
1,872
|
|
|
1,607
|
|
|||
Repair and other services
|
1,017
|
|
|
918
|
|
|
1,222
|
|
|||
Total Marine Systems
|
9,183
|
|
|
8,502
|
|
|
8,004
|
|
|||
Total revenue
|
$
|
39,350
|
|
|
$
|
36,193
|
|
|
$
|
30,973
|
|
Year Ended December 31, 2019
|
Aerospace
|
|
Combat Systems
|
|
Information Technology
|
|
Mission Systems
|
|
Marine Systems
|
|
Total
Revenue |
||||||||||||
Fixed-price
|
$
|
8,949
|
|
|
$
|
6,049
|
|
|
$
|
3,436
|
|
|
$
|
2,908
|
|
|
$
|
6,331
|
|
|
$
|
27,673
|
|
Cost-reimbursement
|
—
|
|
|
894
|
|
|
3,401
|
|
|
1,862
|
|
|
2,839
|
|
|
8,996
|
|
||||||
Time-and-materials
|
852
|
|
|
64
|
|
|
1,585
|
|
|
167
|
|
|
13
|
|
|
2,681
|
|
||||||
Total revenue
|
$
|
9,801
|
|
|
$
|
7,007
|
|
|
$
|
8,422
|
|
|
$
|
4,937
|
|
|
$
|
9,183
|
|
|
$
|
39,350
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed-price
|
$
|
7,600
|
|
|
$
|
5,406
|
|
|
$
|
3,396
|
|
|
$
|
2,711
|
|
|
$
|
5,493
|
|
|
$
|
24,606
|
|
Cost-reimbursement
|
—
|
|
|
800
|
|
|
3,422
|
|
|
1,861
|
|
|
3,004
|
|
|
9,087
|
|
||||||
Time-and-materials
|
855
|
|
|
35
|
|
|
1,451
|
|
|
154
|
|
|
5
|
|
|
2,500
|
|
||||||
Total revenue
|
$
|
8,455
|
|
|
$
|
6,241
|
|
|
$
|
8,269
|
|
|
$
|
4,726
|
|
|
$
|
8,502
|
|
|
$
|
36,193
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed-price
|
$
|
7,479
|
|
|
$
|
5,090
|
|
|
$
|
1,465
|
|
|
$
|
2,478
|
|
|
$
|
4,808
|
|
|
$
|
21,320
|
|
Cost-reimbursement
|
—
|
|
|
823
|
|
|
2,305
|
|
|
1,838
|
|
|
3,186
|
|
|
8,152
|
|
||||||
Time-and-materials
|
650
|
|
|
36
|
|
|
640
|
|
|
165
|
|
|
10
|
|
|
1,501
|
|
||||||
Total revenue
|
$
|
8,129
|
|
|
$
|
5,949
|
|
|
$
|
4,410
|
|
|
$
|
4,481
|
|
|
$
|
8,004
|
|
|
$
|
30,973
|
|
Year Ended December 31, 2019
|
Aerospace
|
|
Combat Systems
|
|
Information Technology
|
|
Mission Systems
|
|
Marine Systems
|
|
Total
Revenue |
||||||||||||
U.S. government:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Department of Defense (DoD)
|
$
|
305
|
|
|
$
|
3,695
|
|
|
$
|
3,573
|
|
|
$
|
3,454
|
|
|
$
|
8,837
|
|
|
$
|
19,864
|
|
Non-DoD
|
88
|
|
|
13
|
|
|
4,652
|
|
|
499
|
|
|
2
|
|
|
5,254
|
|
||||||
Foreign Military Sales (FMS)
|
105
|
|
|
340
|
|
|
15
|
|
|
41
|
|
|
188
|
|
|
689
|
|
||||||
Total U.S. government
|
498
|
|
|
4,048
|
|
|
8,240
|
|
|
3,994
|
|
|
9,027
|
|
|
25,807
|
|
||||||
U.S. commercial
|
5,477
|
|
|
229
|
|
|
176
|
|
|
151
|
|
|
142
|
|
|
6,175
|
|
||||||
Non-U.S. government
|
378
|
|
|
2,663
|
|
|
6
|
|
|
667
|
|
|
9
|
|
|
3,723
|
|
||||||
Non-U.S. commercial
|
3,448
|
|
|
67
|
|
|
—
|
|
|
125
|
|
|
5
|
|
|
3,645
|
|
||||||
Total revenue
|
$
|
9,801
|
|
|
$
|
7,007
|
|
|
$
|
8,422
|
|
|
$
|
4,937
|
|
|
$
|
9,183
|
|
|
$
|
39,350
|
|
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
DoD
|
$
|
236
|
|
|
$
|
2,903
|
|
|
$
|
3,213
|
|
|
$
|
3,224
|
|
|
$
|
8,098
|
|
|
$
|
17,674
|
|
Non-DoD
|
—
|
|
|
8
|
|
|
4,790
|
|
|
506
|
|
|
2
|
|
|
5,306
|
|
||||||
FMS
|
98
|
|
|
317
|
|
|
22
|
|
|
44
|
|
|
145
|
|
|
626
|
|
||||||
Total U.S. government
|
334
|
|
|
3,228
|
|
|
8,025
|
|
|
3,774
|
|
|
8,245
|
|
|
23,606
|
|
||||||
U.S. commercial
|
4,175
|
|
|
251
|
|
|
163
|
|
|
138
|
|
|
245
|
|
|
4,972
|
|
||||||
Non-U.S. government
|
551
|
|
|
2,698
|
|
|
81
|
|
|
662
|
|
|
10
|
|
|
4,002
|
|
||||||
Non-U.S. commercial
|
3,395
|
|
|
64
|
|
|
—
|
|
|
152
|
|
|
2
|
|
|
3,613
|
|
||||||
Total revenue
|
$
|
8,455
|
|
|
$
|
6,241
|
|
|
$
|
8,269
|
|
|
$
|
4,726
|
|
|
$
|
8,502
|
|
|
$
|
36,193
|
|
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. government:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
DoD
|
$
|
189
|
|
|
$
|
2,702
|
|
|
$
|
1,802
|
|
|
$
|
3,027
|
|
|
$
|
7,721
|
|
|
$
|
15,441
|
|
Non-DoD
|
—
|
|
|
8
|
|
|
2,340
|
|
|
556
|
|
|
—
|
|
|
2,904
|
|
||||||
FMS
|
42
|
|
|
374
|
|
|
22
|
|
|
46
|
|
|
192
|
|
|
676
|
|
||||||
Total U.S. government
|
231
|
|
|
3,084
|
|
|
4,164
|
|
|
3,629
|
|
|
7,913
|
|
|
19,021
|
|
||||||
U.S. commercial
|
3,885
|
|
|
220
|
|
|
214
|
|
|
108
|
|
|
71
|
|
|
4,498
|
|
||||||
Non-U.S. government
|
210
|
|
|
2,580
|
|
|
32
|
|
|
607
|
|
|
13
|
|
|
3,442
|
|
||||||
Non-U.S. commercial
|
3,803
|
|
|
65
|
|
|
—
|
|
|
137
|
|
|
7
|
|
|
4,012
|
|
||||||
Total revenue
|
$
|
8,129
|
|
|
$
|
5,949
|
|
|
$
|
4,410
|
|
|
$
|
4,481
|
|
|
$
|
8,004
|
|
|
$
|
30,973
|
|
Year Ended December 31
|
2019
|
2018
|
2017
|
|||
Basic weighted average shares outstanding
|
288,286
|
|
295,262
|
|
299,172
|
|
Dilutive effect of stock options and restricted stock/RSUs*
|
2,550
|
|
3,898
|
|
5,465
|
|
Diluted weighted average shares outstanding
|
290,836
|
|
299,160
|
|
304,637
|
|
•
|
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)
|
December 31, 2019
|
||||||||||||||||||
Measured at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
Marketable securities held in trust:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
11
|
|
|
$
|
13
|
|
|
$
|
—
|
|
Available-for-sale debt securities
|
129
|
|
|
129
|
|
|
—
|
|
|
129
|
|
|
—
|
|
|||||
Equity securities
|
54
|
|
|
54
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|||||
Other investments
|
4
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|||||
Cash flow hedges
|
26
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|||||
Measured at amortized cost:
|
|
|
|
|
|
|
|
|
|
||||||||||
Short- and long-term debt principal
|
(12,005
|
)
|
|
(12,339
|
)
|
|
—
|
|
|
(12,339
|
)
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
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
|
)
|
|
—
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal
|
$
|
471
|
|
|
$
|
587
|
|
|
$
|
656
|
|
State
|
36
|
|
|
48
|
|
|
31
|
|
|||
International
|
119
|
|
|
95
|
|
|
77
|
|
|||
Total current
|
626
|
|
|
730
|
|
|
764
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
U.S. federal
|
49
|
|
|
(37
|
)
|
|
215
|
|
|||
State
|
1
|
|
|
8
|
|
|
7
|
|
|||
International
|
42
|
|
|
26
|
|
|
60
|
|
|||
Adjustment for enacted change in U.S. tax law
|
—
|
|
|
—
|
|
|
119
|
|
|||
Total deferred
|
92
|
|
|
(3
|
)
|
|
401
|
|
|||
Provision for income taxes, net
|
$
|
718
|
|
|
$
|
727
|
|
|
$
|
1,165
|
|
Net income tax payments
|
$
|
572
|
|
|
$
|
532
|
|
|
$
|
617
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
|||
Statutory federal income tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
State tax on commercial operations, net of federal benefits
|
0.7
|
|
|
1.1
|
|
|
0.6
|
|
Impact of international operations
|
0.2
|
|
|
0.6
|
|
|
(4.5
|
)
|
Domestic production deduction
|
—
|
|
|
—
|
|
|
(1.5
|
)
|
Foreign derived intangible income
|
(1.4
|
)
|
|
(1.2
|
)
|
|
—
|
|
Equity-based compensation
|
(1.1
|
)
|
|
(1.1
|
)
|
|
(2.6
|
)
|
Domestic tax credits
|
(2.0
|
)
|
|
(1.1
|
)
|
|
(0.8
|
)
|
Contract close-outs
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
Adoption impact of enacted change in U.S. tax law
|
—
|
|
|
—
|
|
|
2.9
|
|
Other, net
|
(0.3
|
)
|
|
(1.0
|
)
|
|
(0.5
|
)
|
Effective income tax rate
|
17.1
|
%
|
|
17.8
|
%
|
|
28.6
|
%
|
December 31
|
2019
|
|
2018
|
||||
Retirement benefits
|
$
|
1,097
|
|
|
$
|
1,055
|
|
Lease assets
|
418
|
|
|
—
|
|
||
Tax loss and credit carryforwards
|
323
|
|
|
393
|
|
||
Salaries and wages
|
167
|
|
|
160
|
|
||
Workers’ compensation
|
148
|
|
|
138
|
|
||
Other
|
367
|
|
|
351
|
|
||
Deferred assets
|
2,520
|
|
|
2,097
|
|
||
Valuation allowances
|
(291
|
)
|
|
(336
|
)
|
||
Net deferred assets
|
$
|
2,229
|
|
|
$
|
1,761
|
|
|
|
|
|
||||
Intangible assets
|
$
|
(1,070
|
)
|
|
$
|
(1,061
|
)
|
Lease liabilities
|
(418
|
)
|
|
—
|
|
||
Contract accounting methods
|
(375
|
)
|
|
(530
|
)
|
||
Property, plant and equipment
|
(291
|
)
|
|
(265
|
)
|
||
Capital Construction Fund qualified ships
|
(164
|
)
|
|
(160
|
)
|
||
Other
|
(359
|
)
|
|
(284
|
)
|
||
Deferred liabilities
|
$
|
(2,677
|
)
|
|
$
|
(2,300
|
)
|
Net deferred tax liability
|
$
|
(448
|
)
|
|
$
|
(539
|
)
|
December 31
|
2019
|
|
2018
|
||||
Deferred tax asset
|
$
|
33
|
|
|
$
|
38
|
|
Deferred tax liability
|
(481
|
)
|
|
(577
|
)
|
||
Net deferred tax liability
|
$
|
(448
|
)
|
|
$
|
(539
|
)
|
December 31
|
2019
|
|
2018
|
||||
Non-U.S. government
|
$
|
1,847
|
|
|
$
|
2,035
|
|
U.S. government
|
1,076
|
|
|
1,189
|
|
||
Commercial
|
621
|
|
|
535
|
|
||
Total accounts receivable
|
$
|
3,544
|
|
|
$
|
3,759
|
|
December 31
|
2019
|
|
2018
|
||||
Unbilled revenue
|
$
|
33,481
|
|
|
$
|
27,908
|
|
Advances and progress billings
|
(25,624
|
)
|
|
(21,332
|
)
|
||
Net unbilled receivables
|
$
|
7,857
|
|
|
$
|
6,576
|
|
December 31
|
2019
|
|
2018
|
||||
Work in process
|
$
|
4,419
|
|
|
$
|
4,357
|
|
Raw materials
|
1,733
|
|
|
1,504
|
|
||
Finished goods
|
30
|
|
|
33
|
|
||
Pre-owned aircraft
|
124
|
|
|
83
|
|
||
Total inventories
|
$
|
6,306
|
|
|
$
|
5,977
|
|
December 31
|
2019
|
|
2018
|
||||
Machinery and equipment
|
$
|
5,441
|
|
|
$
|
5,152
|
|
Buildings and improvements
|
3,232
|
|
|
2,962
|
|
||
Land and improvements
|
400
|
|
|
386
|
|
||
Construction in process
|
688
|
|
|
472
|
|
||
Total PP&E
|
9,761
|
|
|
8,972
|
|
||
Accumulated depreciation
|
(5,286
|
)
|
|
(4,994
|
)
|
||
PP&E, net
|
$
|
4,475
|
|
|
$
|
3,978
|
|
December 31
|
|
2019
|
|
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
|
2.568% at December 31, 2018
|
—
|
|
|
850
|
|
||
Other
|
Various
|
505
|
|
|
168
|
|
||
Total debt principal
|
|
12,005
|
|
|
12,518
|
|
||
Less unamortized debt issuance costs
and discounts
|
|
75
|
|
|
101
|
|
||
Total debt
|
|
11,930
|
|
|
12,417
|
|
||
Less current portion
|
|
2,920
|
|
|
973
|
|
||
Long-term debt
|
|
$
|
9,010
|
|
|
$
|
11,444
|
|
Year Ended December 31
|
Debt
Principal
|
||
2020
|
$
|
2,922
|
|
2021
|
3,009
|
|
|
2022
|
1,009
|
|
|
2023
|
1,255
|
|
|
2024
|
505
|
|
|
Thereafter
|
3,305
|
|
|
Total debt principal
|
$
|
12,005
|
|
December 31
|
2019
|
|
2018
|
||||
Salaries and wages
|
$
|
941
|
|
|
$
|
952
|
|
Workers’ compensation
|
306
|
|
|
244
|
|
||
Retirement benefits
|
296
|
|
|
272
|
|
||
Operating lease liabilities
|
252
|
|
|
—
|
|
||
Fair value of cash flow hedges
|
32
|
|
|
141
|
|
||
Other (a)
|
1,744
|
|
|
1,708
|
|
||
Total other current liabilities
|
$
|
3,571
|
|
|
$
|
3,317
|
|
|
|
|
|
||||
Retirement benefits
|
$
|
5,172
|
|
|
$
|
4,422
|
|
Operating lease liabilities
|
1,251
|
|
|
—
|
|
||
Customer deposits on commercial contracts
|
709
|
|
|
726
|
|
||
Deferred income taxes
|
481
|
|
|
577
|
|
||
Other (b)
|
1,840
|
|
|
1,768
|
|
||
Total other liabilities
|
$
|
9,453
|
|
|
$
|
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, 2016
|
$
|
(345
|
)
|
$
|
14
|
|
$
|
69
|
|
$
|
(3,125
|
)
|
$
|
(3,387
|
)
|
Other comprehensive income, pretax
|
341
|
|
9
|
|
348
|
|
20
|
|
718
|
|
|||||
Provision for income tax, net
|
(90
|
)
|
(4
|
)
|
(15
|
)
|
(42
|
)
|
(151
|
)
|
|||||
Other comprehensive income, net of tax
|
251
|
|
5
|
|
333
|
|
(22
|
)
|
567
|
|
|||||
December 31, 2017
|
(94
|
)
|
19
|
|
402
|
|
(3,147
|
)
|
(2,820
|
)
|
|||||
Cumulative-effect adjustments*
|
(4
|
)
|
(19
|
)
|
—
|
|
(615
|
)
|
(638
|
)
|
|||||
Other comprehensive loss, pretax
|
36
|
|
—
|
|
(300
|
)
|
(61
|
)
|
(325
|
)
|
|||||
Benefit from income tax, net
|
(9
|
)
|
—
|
|
—
|
|
14
|
|
5
|
|
|||||
Other comprehensive loss, net of tax
|
27
|
|
—
|
|
(300
|
)
|
(47
|
)
|
(320
|
)
|
|||||
December 31, 2018
|
(71
|
)
|
—
|
|
102
|
|
(3,809
|
)
|
(3,778
|
)
|
|||||
Other comprehensive loss, pretax
|
97
|
|
—
|
|
186
|
|
(886
|
)
|
(603
|
)
|
|||||
Benefit from income tax, net
|
(24
|
)
|
—
|
|
—
|
|
186
|
|
162
|
|
|||||
Other comprehensive loss, net of tax
|
73
|
|
—
|
|
186
|
|
(700
|
)
|
(441
|
)
|
|||||
December 31, 2019
|
$
|
2
|
|
$
|
—
|
|
$
|
288
|
|
$
|
(4,509
|
)
|
$
|
(4,219
|
)
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning balance
|
$
|
480
|
|
|
$
|
467
|
|
|
$
|
474
|
|
Warranty expense
|
258
|
|
|
129
|
|
|
146
|
|
|||
Payments
|
(105
|
)
|
|
(102
|
)
|
|
(123
|
)
|
|||
Adjustments
|
(14
|
)
|
|
(14
|
)
|
|
(30
|
)
|
|||
Ending balance
|
$
|
619
|
|
|
$
|
480
|
|
|
$
|
467
|
|
Year Ended December 31
|
2019
|
||
Finance lease cost:
|
|
||
Amortization of right-of-use assets
|
$
|
86
|
|
Interest on lease liabilities
|
24
|
|
|
Operating lease cost
|
332
|
|
|
Short-term lease cost
|
75
|
|
|
Variable lease cost
|
14
|
|
|
Sublease income
|
(13
|
)
|
|
Total lease costs, net
|
$
|
518
|
|
Year Ended December 31
|
2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
325
|
|
Operating cash flows from finance leases
|
24
|
|
|
Financing cash flows from finance leases
|
57
|
|
|
Right-of-use assets obtained in exchange for lease liabilities:
|
|
||
Operating leases
|
365
|
|
|
Finance leases
|
50
|
|
December 31
|
2019
|
|
Weighted-average remaining lease term:
|
|
|
Operating leases
|
10.7 years
|
|
Finance leases
|
6.1 years
|
|
Weighted-average discount rate:
|
|
|
Operating leases
|
3
|
%
|
Finance leases
|
8
|
%
|
Year Ended December 31
|
Operating Leases
|
|
Finance Leases
|
||||
2020
|
$
|
302
|
|
|
$
|
91
|
|
2021
|
261
|
|
|
83
|
|
||
2022
|
212
|
|
|
83
|
|
||
2023
|
163
|
|
|
36
|
|
||
2024
|
136
|
|
|
19
|
|
||
Thereafter
|
790
|
|
|
131
|
|
||
Total future lease payments
|
1,864
|
|
|
443
|
|
||
Less imputed interest
|
361
|
|
|
89
|
|
||
Present value of future lease payments
|
1,503
|
|
|
354
|
|
||
Less current portion of lease liabilities
|
252
|
|
|
67
|
|
||
Long-term lease liabilities
|
$
|
1,251
|
|
|
$
|
287
|
|
ROU assets
|
$
|
1,432
|
|
|
$
|
391
|
|
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
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Stock options
|
$
|
43
|
|
|
$
|
45
|
|
|
$
|
34
|
|
Restricted stock/RSUs
|
62
|
|
|
65
|
|
|
46
|
|
|||
Total equity-based compensation expense, net of tax
|
$
|
105
|
|
|
$
|
110
|
|
|
$
|
80
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
|||
Expected volatility
|
19.7-20.0%
|
|
|
17.6-18.2%
|
|
|
17.3-19.4%
|
|
Weighted average expected volatility
|
19.7
|
%
|
|
17.6
|
%
|
|
19.4
|
%
|
Expected term (in months)
|
64
|
|
|
68
|
|
|
68
|
|
Risk-free interest rate
|
1.7-2.6%
|
|
|
2.6-2.9%
|
|
|
2.0-2.2%
|
|
Expected dividend yield
|
2.0
|
%
|
|
1.8
|
%
|
|
1.8
|
%
|
•
|
Expected volatility is based on the historical volatility of our common stock over a period equal to the expected term of the option.
|
•
|
Expected term is based on assumptions used by a set of comparable peer companies.
|
•
|
Risk-free interest rate is the yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option at the grant date.
|
•
|
Expected dividend yield is based on our historical dividend yield.
|
In Shares and Dollars
|
Shares Under Option
|
|
Weighted Average
Exercise Price Per Share
|
|||
Outstanding on December 31, 2018
|
10,765,195
|
|
|
$
|
143.43
|
|
Granted
|
2,115,740
|
|
|
167.92
|
|
|
Exercised
|
(2,757,815
|
)
|
|
91.34
|
|
|
Forfeited/canceled
|
(355,371
|
)
|
|
195.59
|
|
|
Outstanding on December 31, 2019
|
9,767,749
|
|
|
$
|
161.54
|
|
Vested and expected to vest on December 31, 2019
|
9,538,150
|
|
|
$
|
161.10
|
|
Exercisable on December 31, 2019
|
5,484,562
|
|
|
$
|
137.92
|
|
|
Weighted Average Remaining Contractual Term (in years)
|
|
Aggregate Intrinsic
Value
|
||
Outstanding
|
6.4
|
|
$
|
242
|
|
Vested and expected to vest
|
6.4
|
|
241
|
|
|
Exercisable
|
4.8
|
|
225
|
|
In Shares and Dollars
|
Shares/
Share-Equivalent
Units
|
|
Weighted Average
Grant-Date Fair Value Per Share
|
|||
Nonvested at December 31, 2018
|
1,262,276
|
|
|
$
|
171.62
|
|
Granted
|
556,922
|
|
|
161.43
|
|
|
Vested
|
(541,997
|
)
|
|
138.73
|
|
|
Forfeited
|
(52,837
|
)
|
|
183.81
|
|
|
Nonvested at December 31, 2019
|
1,224,364
|
|
|
$
|
181.11
|
|
|
Pension
Benefits
|
|
Other Post-retirement
Benefits |
||||
2020
|
$
|
853
|
|
|
$
|
66
|
|
2021
|
880
|
|
|
65
|
|
||
2022
|
905
|
|
|
64
|
|
||
2023
|
929
|
|
|
63
|
|
||
2024
|
957
|
|
|
62
|
|
||
2025-2029
|
5,020
|
|
|
286
|
|
|
Pension Benefits
|
||||||||||
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost
|
$
|
111
|
|
|
$
|
180
|
|
|
$
|
168
|
|
Interest cost
|
600
|
|
|
532
|
|
|
453
|
|
|||
Expected return on plan assets
|
(911
|
)
|
|
(856
|
)
|
|
(679
|
)
|
|||
Recognized net actuarial loss
|
326
|
|
|
359
|
|
|
362
|
|
|||
Amortization of prior service credit
|
(19
|
)
|
|
(46
|
)
|
|
(66
|
)
|
|||
Net annual benefit cost
|
$
|
107
|
|
|
$
|
169
|
|
|
$
|
238
|
|
|
Other Post-retirement Benefits
|
||||||||||
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
Service cost
|
$
|
8
|
|
|
$
|
10
|
|
|
$
|
9
|
|
Interest cost
|
35
|
|
|
33
|
|
|
30
|
|
|||
Expected return on plan assets
|
(36
|
)
|
|
(40
|
)
|
|
(34
|
)
|
|||
Recognized net actuarial gain
|
(8
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|||
Amortization of prior service credit
|
(3
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|||
Net annual benefit credit
|
$
|
(4
|
)
|
|
$
|
(5
|
)
|
|
$
|
(2
|
)
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
Year Ended December 31
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Change in Benefit Obligation
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
$
|
(15,720
|
)
|
|
$
|
(14,212
|
)
|
|
$
|
(935
|
)
|
|
$
|
(996
|
)
|
Service cost
|
(111
|
)
|
|
(180
|
)
|
|
(8
|
)
|
|
(10
|
)
|
||||
Interest cost
|
(600
|
)
|
|
(532
|
)
|
|
(35
|
)
|
|
(33
|
)
|
||||
Acquisitions
|
—
|
|
|
(2,758
|
)
|
|
—
|
|
|
(62
|
)
|
||||
Amendments
|
(3
|
)
|
|
15
|
|
|
(8
|
)
|
|
—
|
|
||||
Actuarial (loss) gain
|
(2,446
|
)
|
|
1,183
|
|
|
(101
|
)
|
|
78
|
|
||||
Settlement/curtailment/other
|
(33
|
)
|
|
23
|
|
|
(4
|
)
|
|
21
|
|
||||
Benefits paid
|
806
|
|
|
741
|
|
|
64
|
|
|
67
|
|
||||
Benefit obligation at end of year
|
$
|
(18,107
|
)
|
|
$
|
(15,720
|
)
|
|
$
|
(1,027
|
)
|
|
$
|
(935
|
)
|
Change in Plan/Trust Assets
|
|
|
|
|
|
|
|
||||||||
Fair value of assets at beginning of year
|
$
|
11,532
|
|
|
$
|
10,130
|
|
|
$
|
570
|
|
|
$
|
541
|
|
Actual return on plan assets
|
2,206
|
|
|
(749
|
)
|
|
117
|
|
|
(4
|
)
|
||||
Acquisitions
|
—
|
|
|
2,328
|
|
|
—
|
|
|
77
|
|
||||
Employer contributions
|
185
|
|
|
571
|
|
|
2
|
|
|
1
|
|
||||
Settlement/curtailment/other
|
39
|
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
(785
|
)
|
|
(722
|
)
|
|
(45
|
)
|
|
(45
|
)
|
||||
Fair value of assets at end of year
|
$
|
13,177
|
|
|
$
|
11,532
|
|
|
$
|
644
|
|
|
$
|
570
|
|
Funded status at end of year
|
$
|
(4,930
|
)
|
|
$
|
(4,188
|
)
|
|
$
|
(383
|
)
|
|
$
|
(365
|
)
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
December 31
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Noncurrent assets
|
$
|
61
|
|
|
$
|
67
|
|
|
$
|
94
|
|
|
$
|
74
|
|
Current liabilities
|
(166
|
)
|
|
(131
|
)
|
|
(130
|
)
|
|
(141
|
)
|
||||
Noncurrent liabilities
|
(4,825
|
)
|
|
(4,124
|
)
|
|
(347
|
)
|
|
(298
|
)
|
||||
Net liability recognized
|
$
|
(4,930
|
)
|
|
$
|
(4,188
|
)
|
|
$
|
(383
|
)
|
|
$
|
(365
|
)
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
December 31
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net actuarial loss (gain)
|
$
|
5,784
|
|
|
$
|
4,959
|
|
|
$
|
(9
|
)
|
|
$
|
(37
|
)
|
Prior service (credit) cost
|
(73
|
)
|
|
(95
|
)
|
|
12
|
|
|
1
|
|
||||
Total amount recognized in AOCL, pretax
|
$
|
5,711
|
|
|
$
|
4,864
|
|
|
$
|
3
|
|
|
$
|
(36
|
)
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
Year Ended December 31
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net actuarial loss (gain)
|
$
|
1,151
|
|
|
$
|
422
|
|
|
$
|
20
|
|
|
$
|
(34
|
)
|
Prior service credit (cost)
|
3
|
|
|
(15
|
)
|
|
8
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
||||||||
Net actuarial (loss) gain from prior
years
|
(326
|
)
|
|
(359
|
)
|
|
8
|
|
|
4
|
|
||||
Prior service credit
|
19
|
|
|
46
|
|
|
3
|
|
|
4
|
|
||||
Other*
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(2
|
)
|
||||
Change in AOCL, pretax
|
$
|
847
|
|
|
$
|
89
|
|
|
$
|
39
|
|
|
$
|
(28
|
)
|
December 31
|
2019
|
|
2018
|
||||
PBO
|
$
|
(17,651
|
)
|
|
$
|
(15,354
|
)
|
Fair value of plan assets
|
12,673
|
|
|
11,116
|
|
|
Pension Benefits
|
|
Other Post-retirement Benefits
|
||||||||||||
December 31
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
ABO
|
$
|
(17,080
|
)
|
|
$
|
(14,856
|
)
|
|
$
|
(783
|
)
|
|
$
|
(709
|
)
|
Fair value of plan assets
|
12,354
|
|
|
10,832
|
|
|
301
|
|
|
264
|
|
Assumptions on December 31
|
2019
|
|
2018
|
||
Pension Benefits
|
|
|
|
||
Benefit obligation discount rate
|
3.19
|
%
|
|
4.28
|
%
|
Rate of increase in compensation levels
|
2.68
|
%
|
|
2.79
|
%
|
Other Post-retirement Benefits
|
|
|
|
||
Benefit obligation discount rate
|
3.18
|
%
|
|
4.24
|
%
|
Healthcare cost trend rate:
|
|
|
|
||
Trend rate for next year
|
6.00
|
%
|
|
6.50
|
%
|
Ultimate trend rate
|
5.00
|
%
|
|
5.00
|
%
|
Year rate reaches ultimate trend rate
|
2024
|
|
|
2024
|
|
Equities
|
48-68%
|
Fixed income
|
20-48%
|
Cash
|
0-5%
|
Other asset classes
|
0-16%
|
|
Fair
Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Asset Category
|
December 31, 2019
|
||||||||||||||
Cash and equivalents
|
$
|
56
|
|
|
$
|
—
|
|
|
$
|
56
|
|
|
$
|
—
|
|
Equity securities (a):
|
|
|
|
|
|
|
|
||||||||
U.S. companies
|
958
|
|
|
958
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. companies
|
128
|
|
|
128
|
|
|
—
|
|
|
—
|
|
||||
Private equity investments
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||
Fixed-income securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds (b)
|
2,163
|
|
|
—
|
|
|
2,163
|
|
|
—
|
|
||||
Treasury securities
|
1,855
|
|
|
—
|
|
|
1,855
|
|
|
—
|
|
||||
Commingled funds:
|
|
|
|
|
|
|
|
||||||||
Equity funds
|
6,494
|
|
|
—
|
|
|
6,494
|
|
|
—
|
|
||||
Fixed-income funds
|
365
|
|
|
—
|
|
|
365
|
|
|
—
|
|
||||
Real estate funds
|
84
|
|
|
—
|
|
|
—
|
|
|
84
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
||||||||
Insurance deposit contracts
|
137
|
|
|
—
|
|
|
—
|
|
|
137
|
|
||||
Retirement annuity contracts
|
35
|
|
|
—
|
|
|
—
|
|
|
35
|
|
||||
Total plan assets in fair value hierarchy
|
$
|
12,301
|
|
|
$
|
1,086
|
|
|
$
|
10,933
|
|
|
$
|
282
|
|
Plan assets measured using NAV as a practical expedient (c):
|
|
|
|
|
|
|
|
||||||||
Real estate funds
|
443
|
|
|
|
|
|
|
|
|||||||
Hedge funds
|
419
|
|
|
|
|
|
|
|
|||||||
Equity funds
|
14
|
|
|
|
|
|
|
|
|||||||
Total pension plan assets
|
$
|
13,177
|
|
|
|
|
|
|
|
|
Fair
Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||
Asset Category
|
December 31, 2018
|
||||||||||||||
Cash and equivalents
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
73
|
|
|
$
|
—
|
|
Equity securities (a):
|
|
|
|
|
|
|
|
||||||||
U.S. companies
|
732
|
|
|
732
|
|
|
—
|
|
|
—
|
|
||||
Non-U.S. companies
|
117
|
|
|
117
|
|
|
—
|
|
|
—
|
|
||||
Private equity investments
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
||||
Fixed-income securities:
|
|
|
|
|
|
|
|
||||||||
Corporate bonds (b)
|
1,600
|
|
|
—
|
|
|
1,600
|
|
|
—
|
|
||||
Treasury securities
|
1,410
|
|
|
—
|
|
|
1,410
|
|
|
—
|
|
||||
Commingled funds:
|
|
|
|
|
|
|
|
||||||||
Equity funds
|
5,243
|
|
|
—
|
|
|
5,243
|
|
|
—
|
|
||||
Fixed-income funds
|
624
|
|
|
—
|
|
|
624
|
|
|
—
|
|
||||
Real estate funds
|
68
|
|
|
—
|
|
|
—
|
|
|
68
|
|
||||
Other investments:
|
|
|
|
|
|
|
|
||||||||
Insurance deposit contracts
|
128
|
|
|
—
|
|
|
—
|
|
|
128
|
|
||||
Total plan assets in fair value hierarchy
|
$
|
10,015
|
|
|
$
|
849
|
|
|
$
|
8,950
|
|
|
$
|
216
|
|
Plan assets measured using NAV as a practical expedient (c):
|
|
|
|
|
|
|
|
||||||||
Hedge funds
|
910
|
|
|
|
|
|
|
|
|||||||
Real estate funds
|
420
|
|
|
|
|
|
|
|
|||||||
Fixed-income funds
|
101
|
|
|
|
|
|
|
|
|||||||
Equity funds
|
86
|
|
|
|
|
|
|
|
|||||||
Total pension plan assets
|
$
|
11,532
|
|
|
|
|
|
|
|
|
|
|
|
Fair
Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
||||||
Asset Category (a)
|
December 31, 2019
|
||||||||||
Cash and equivalents
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
18
|
|
Equity securities
|
92
|
|
|
92
|
|
|
—
|
|
|||
Fixed-income securities
|
122
|
|
|
—
|
|
|
122
|
|
|||
Commingled funds:
|
|
|
|
|
|
||||||
Equity funds
|
288
|
|
|
—
|
|
|
288
|
|
|||
Fixed-income funds
|
113
|
|
|
—
|
|
|
113
|
|
|||
Real estate funds
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total plan assets in fair value hierarchy
|
$
|
635
|
|
|
$
|
94
|
|
|
$
|
541
|
|
Plan assets measured using NAV as a practical expedient (b):
|
|
|
|
|
|
||||||
Real estate funds
|
5
|
|
|
|
|
|
|||||
Hedge funds
|
4
|
|
|
|
|
|
|||||
Total other post-retirement benefit plan assets
|
$
|
644
|
|
|
|
|
|
|
Fair
Value
|
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
||||||
Asset Category (a)
|
December 31, 2018
|
||||||||||
Cash and equivalents
|
$
|
23
|
|
|
$
|
—
|
|
|
$
|
23
|
|
Equity securities
|
80
|
|
|
80
|
|
|
—
|
|
|||
Fixed-income securities
|
87
|
|
|
—
|
|
|
87
|
|
|||
Commingled funds:
|
|
|
|
|
|
||||||
Equity funds
|
237
|
|
|
—
|
|
|
237
|
|
|||
Fixed-income funds
|
111
|
|
|
—
|
|
|
111
|
|
|||
Real estate funds
|
2
|
|
|
2
|
|
|
—
|
|
|||
Total plan assets in fair value hierarchy
|
$
|
540
|
|
|
$
|
82
|
|
|
$
|
458
|
|
Plan assets measured using NAV as a practical expedient (b):
|
|
|
|
|
|
||||||
Hedge funds
|
22
|
|
|
|
|
|
|||||
Equity funds
|
3
|
|
|
|
|
|
|||||
Fixed-income funds
|
3
|
|
|
|
|
|
|||||
Real estate funds
|
2
|
|
|
|
|
|
|||||
Total other post-retirement benefit plan assets
|
$
|
570
|
|
|
|
|
|
|
|
|
Private Equity Investments
|
|
Real Estate Funds
|
|
Insurance Deposits Contracts
|
|
Retirement Annuity Contracts
|
|
Total
Level 3 Assets
|
||||||||||
December 31, 2017
|
$
|
18
|
|
|
$
|
51
|
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
189
|
|
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized losses, net
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|||||
Realized gains, net
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|||||
Purchases, sales and settlements, net
|
2
|
|
|
18
|
|
|
5
|
|
|
—
|
|
|
25
|
|
|||||
December 31, 2018
|
20
|
|
|
68
|
|
|
128
|
|
|
—
|
|
|
216
|
|
|||||
Actual return on plan assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gains, net
|
5
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
17
|
|
|||||
Purchases, sales and settlements, net
|
1
|
|
|
10
|
|
|
3
|
|
|
35
|
|
|
49
|
|
|||||
December 31, 2019
|
$
|
26
|
|
|
$
|
84
|
|
|
$
|
137
|
|
|
$
|
35
|
|
|
$
|
282
|
|
|
Revenue
|
|
Operating Earnings
|
|
Revenue from U.S. Government
|
||||||||||||||||||||||||
Year Ended December 31
|
2019
|
2018
|
2017
|
|
2019
|
2018
|
2017
|
|
2019
|
2018
|
2017
|
||||||||||||||||||
Aerospace
|
$
|
9,801
|
|
$
|
8,455
|
|
$
|
8,129
|
|
|
$
|
1,532
|
|
$
|
1,490
|
|
$
|
1,577
|
|
|
$
|
498
|
|
$
|
334
|
|
$
|
231
|
|
Combat Systems
|
7,007
|
|
6,241
|
|
5,949
|
|
|
996
|
|
962
|
|
937
|
|
|
4,048
|
|
3,228
|
|
3,084
|
|
|||||||||
Information
Technology
|
8,422
|
|
8,269
|
|
4,410
|
|
|
628
|
|
608
|
|
373
|
|
|
8,240
|
|
8,025
|
|
4,164
|
|
|||||||||
Mission Systems
|
4,937
|
|
4,726
|
|
4,481
|
|
|
683
|
|
659
|
|
638
|
|
|
3,994
|
|
3,774
|
|
3,629
|
|
|||||||||
Marine Systems
|
9,183
|
|
8,502
|
|
8,004
|
|
|
785
|
|
761
|
|
685
|
|
|
9,027
|
|
8,245
|
|
7,913
|
|
|||||||||
Corporate
|
—
|
|
—
|
|
—
|
|
|
24
|
|
(23
|
)
|
26
|
|
|
—
|
|
—
|
|
—
|
|
|||||||||
Total
|
$
|
39,350
|
|
$
|
36,193
|
|
$
|
30,973
|
|
|
$
|
4,648
|
|
$
|
4,457
|
|
$
|
4,236
|
|
|
$
|
25,807
|
|
$
|
23,606
|
|
$
|
19,021
|
|
|
Identifiable Assets
|
|
Capital Expenditures
|
|
Depreciation and Amortization
|
||||||||||||||||||||||||
Year Ended December 31
|
2019
|
2018
|
2017
|
|
2019
|
2018
|
2017
|
|
2019
|
2018
|
2017
|
||||||||||||||||||
Aerospace
|
$
|
12,324
|
|
$
|
11,220
|
|
$
|
10,126
|
|
|
$
|
138
|
|
$
|
194
|
|
$
|
132
|
|
|
$
|
178
|
|
$
|
154
|
|
$
|
147
|
|
Combat Systems
|
11,220
|
|
9,853
|
|
9,846
|
|
|
109
|
|
91
|
|
84
|
|
|
85
|
|
87
|
|
86
|
|
|||||||||
Information
Technology
|
14,248
|
|
14,159
|
|
3,021
|
|
|
147
|
|
62
|
|
16
|
|
|
377
|
|
333
|
|
32
|
|
|||||||||
Mission Systems
|
6,205
|
|
5,984
|
|
5,856
|
|
|
75
|
|
49
|
|
47
|
|
|
60
|
|
65
|
|
60
|
|
|||||||||
Marine Systems
|
3,918
|
|
3,130
|
|
2,906
|
|
|
449
|
|
243
|
|
123
|
|
|
122
|
|
116
|
|
109
|
|
|||||||||
Corporate*
|
926
|
|
1,062
|
|
3,291
|
|
|
69
|
|
51
|
|
26
|
|
|
7
|
|
8
|
|
7
|
|
|||||||||
Total
|
$
|
48,841
|
|
$
|
45,408
|
|
$
|
35,046
|
|
|
$
|
987
|
|
$
|
690
|
|
$
|
428
|
|
|
$
|
829
|
|
$
|
763
|
|
$
|
441
|
|
Year Ended December 31
|
2019
|
|
2018
|
|
2017
|
||||||
North America:
|
|
|
|
|
|
||||||
United States
|
$
|
31,982
|
|
|
$
|
28,578
|
|
|
$
|
23,519
|
|
Other
|
852
|
|
|
755
|
|
|
915
|
|
|||
Total North America
|
32,834
|
|
|
29,333
|
|
|
24,434
|
|
|||
Europe
|
2,808
|
|
|
2,772
|
|
|
2,558
|
|
|||
Asia/Pacific
|
1,670
|
|
|
2,252
|
|
|
2,011
|
|
|||
Africa/Middle East
|
1,739
|
|
|
1,565
|
|
|
1,655
|
|
|||
South America
|
299
|
|
|
271
|
|
|
315
|
|
|||
Total revenue
|
$
|
39,350
|
|
|
$
|
36,193
|
|
|
$
|
30,973
|
|
Year Ended December 31, 2019
|
Parent
|
Guarantors on a
Combined Basis
|
Other Subsidiaries
on a Combined Basis |
Consolidating
Adjustments
|
Total
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
$
|
30,566
|
|
$
|
8,784
|
|
$
|
—
|
|
$
|
39,350
|
|
Cost of sales
|
99
|
|
(25,120
|
)
|
(7,270
|
)
|
—
|
|
(32,291
|
)
|
|||||
G&A
|
(75
|
)
|
(1,725
|
)
|
(611
|
)
|
—
|
|
(2,411
|
)
|
|||||
Operating earnings
|
24
|
|
3,721
|
|
903
|
|
—
|
|
4,648
|
|
|||||
Interest, net
|
(426
|
)
|
1
|
|
(35
|
)
|
—
|
|
(460
|
)
|
|||||
Other, net
|
(60
|
)
|
15
|
|
59
|
|
—
|
|
14
|
|
|||||
Earnings before income tax
|
(462
|
)
|
3,737
|
|
927
|
|
—
|
|
4,202
|
|
|||||
Provision for income tax, net
|
117
|
|
(626
|
)
|
(209
|
)
|
—
|
|
(718
|
)
|
|||||
Equity in net earnings of subsidiaries
|
3,829
|
|
—
|
|
—
|
|
(3,829
|
)
|
—
|
|
|||||
Net earnings
|
$
|
3,484
|
|
$
|
3,111
|
|
$
|
718
|
|
$
|
(3,829
|
)
|
$
|
3,484
|
|
Comprehensive income
|
$
|
3,043
|
|
$
|
3,083
|
|
$
|
957
|
|
$
|
(4,040
|
)
|
$
|
3,043
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
—
|
|
$
|
28,132
|
|
$
|
8,061
|
|
$
|
—
|
|
$
|
36,193
|
|
Cost of sales
|
67
|
|
(22,841
|
)
|
(6,704
|
)
|
—
|
|
(29,478
|
)
|
|||||
G&A
|
(90
|
)
|
(1,638
|
)
|
(530
|
)
|
—
|
|
(2,258
|
)
|
|||||
Operating earnings
|
(23
|
)
|
3,653
|
|
827
|
|
—
|
|
4,457
|
|
|||||
Interest, net
|
(326
|
)
|
—
|
|
(30
|
)
|
—
|
|
(356
|
)
|
|||||
Other, net
|
(81
|
)
|
12
|
|
53
|
|
—
|
|
(16
|
)
|
|||||
Earnings before income tax
|
(430
|
)
|
3,665
|
|
850
|
|
—
|
|
4,085
|
|
|||||
Provision for income tax, net
|
116
|
|
(677
|
)
|
(166
|
)
|
—
|
|
(727
|
)
|
|||||
Discontinued operations, net of tax
|
(13
|
)
|
—
|
|
—
|
|
—
|
|
(13
|
)
|
|||||
Equity in net earnings of subsidiaries
|
3,672
|
|
—
|
|
—
|
|
(3,672
|
)
|
—
|
|
|||||
Net earnings
|
$
|
3,345
|
|
$
|
2,988
|
|
$
|
684
|
|
$
|
(3,672
|
)
|
$
|
3,345
|
|
Comprehensive income
|
$
|
3,025
|
|
$
|
2,992
|
|
$
|
305
|
|
$
|
(3,297
|
)
|
$
|
3,025
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
—
|
|
$
|
26,933
|
|
$
|
4,040
|
|
$
|
—
|
|
$
|
30,973
|
|
Cost of sales
|
76
|
|
(21,695
|
)
|
(3,112
|
)
|
—
|
|
(24,731
|
)
|
|||||
G&A
|
(48
|
)
|
(1,643
|
)
|
(315
|
)
|
—
|
|
(2,006
|
)
|
|||||
Operating earnings
|
28
|
|
3,595
|
|
613
|
|
—
|
|
4,236
|
|
|||||
Interest, net
|
(97
|
)
|
1
|
|
(7
|
)
|
—
|
|
(103
|
)
|
|||||
Other, net
|
(72
|
)
|
12
|
|
4
|
|
—
|
|
(56
|
)
|
|||||
Earnings before income tax
|
(141
|
)
|
3,608
|
|
610
|
|
—
|
|
4,077
|
|
|||||
Provision for income tax, net
|
154
|
|
(1,262
|
)
|
(57
|
)
|
—
|
|
(1,165
|
)
|
|||||
Equity in net earnings of subsidiaries
|
2,899
|
|
—
|
|
—
|
|
(2,899
|
)
|
—
|
|
|||||
Net earnings
|
$
|
2,912
|
|
$
|
2,346
|
|
$
|
553
|
|
$
|
(2,899
|
)
|
$
|
2,912
|
|
Comprehensive income
|
$
|
3,479
|
|
$
|
2,336
|
|
$
|
1,158
|
|
$
|
(3,494
|
)
|
$
|
3,479
|
|
*
|
Includes the funded status of the company’s primary domestic qualified defined-benefit pension plans as the Parent has the ultimate obligation for the plans.
|
*
|
Includes the funded status of the company’s primary domestic qualified defined-benefit pension plans as the Parent has the ultimate obligation for the plans.
|
Year Ended December 31, 2019
|
Parent
|
Guarantors
on a
Combined
Basis
|
Other
Subsidiaries
on a
Combined
Basis
|
Consolidating
Adjustments
|
Total
Consolidated
|
||||||||||
Net cash provided by operating activities*
|
$
|
(46
|
)
|
$
|
2,918
|
|
$
|
109
|
|
$
|
—
|
|
$
|
2,981
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(68
|
)
|
(718
|
)
|
(201
|
)
|
—
|
|
(987
|
)
|
|||||
Other, net
|
7
|
|
10
|
|
(24
|
)
|
—
|
|
(7
|
)
|
|||||
Net cash used by investing activities
|
(61
|
)
|
(708
|
)
|
(225
|
)
|
—
|
|
(994
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||||||
Dividends paid
|
(1,152
|
)
|
—
|
|
—
|
|
—
|
|
(1,152
|
)
|
|||||
Repayments of commercial paper, net
|
(850
|
)
|
—
|
|
—
|
|
—
|
|
(850
|
)
|
|||||
Purchases of common stock
|
(231
|
)
|
—
|
|
—
|
|
—
|
|
(231
|
)
|
|||||
Other, net
|
24
|
|
(2
|
)
|
214
|
|
—
|
|
236
|
|
|||||
Net cash used by financing activities
|
(2,209
|
)
|
(2
|
)
|
214
|
|
—
|
|
(1,997
|
)
|
|||||
Net cash used by discontinued operations
|
(51
|
)
|
—
|
|
—
|
|
—
|
|
(51
|
)
|
|||||
Cash sweep/funding by parent
|
2,508
|
|
(2,208
|
)
|
(300
|
)
|
—
|
|
—
|
|
|||||
Net decrease in cash and equivalents
|
141
|
|
—
|
|
(202
|
)
|
—
|
|
(61
|
)
|
|||||
Cash and equivalents at beginning of year
|
460
|
|
—
|
|
503
|
|
—
|
|
963
|
|
|||||
Cash and equivalents at end of year
|
$
|
601
|
|
$
|
—
|
|
$
|
301
|
|
$
|
—
|
|
$
|
902
|
|
|
|
|
|
|
|
||||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities*
|
$
|
(579
|
)
|
$
|
2,954
|
|
$
|
773
|
|
$
|
—
|
|
$
|
3,148
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||||||
Business acquisitions, net of cash acquired
|
(9,749
|
)
|
(74
|
)
|
(276
|
)
|
—
|
|
(10,099
|
)
|
|||||
Capital expenditures
|
(51
|
)
|
(513
|
)
|
(126
|
)
|
—
|
|
(690
|
)
|
|||||
Proceeds from sales of assets
|
90
|
|
472
|
|
—
|
|
—
|
|
562
|
|
|||||
Other, net
|
4
|
|
(12
|
)
|
1
|
|
—
|
|
(7
|
)
|
|||||
Net cash used by investing activities
|
(9,706
|
)
|
(127
|
)
|
(401
|
)
|
—
|
|
(10,234
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||||||
Proceeds from fixed-rate notes
|
6,461
|
|
—
|
|
—
|
|
—
|
|
6,461
|
|
|||||
Purchases of common stock
|
(1,769
|
)
|
—
|
|
—
|
|
—
|
|
(1,769
|
)
|
|||||
Dividends paid
|
(1,075
|
)
|
—
|
|
—
|
|
—
|
|
(1,075
|
)
|
|||||
Proceeds from floating-rate notes
|
1,000
|
|
—
|
|
—
|
|
—
|
|
1,000
|
|
|||||
Proceeds from commercial paper, net
|
850
|
|
—
|
|
—
|
|
—
|
|
850
|
|
|||||
Repayment of CSRA accounts receivable purchase
agreement
|
—
|
|
—
|
|
(450
|
)
|
—
|
|
(450
|
)
|
|||||
Other, net
|
3
|
|
35
|
|
31
|
|
—
|
|
69
|
|
|||||
Net cash provided by financing activities
|
5,470
|
|
35
|
|
(419
|
)
|
—
|
|
5,086
|
|
|||||
Net cash used by discontinued operations
|
(20
|
)
|
—
|
|
—
|
|
—
|
|
(20
|
)
|
|||||
Cash sweep/funding by parent
|
3,365
|
|
(2,862
|
)
|
(503
|
)
|
—
|
|
—
|
|
|||||
Net decrease in cash and equivalents
|
(1,470
|
)
|
—
|
|
(550
|
)
|
—
|
|
(2,020
|
)
|
|||||
Cash and equivalents at beginning of year
|
1,930
|
|
—
|
|
1,053
|
|
—
|
|
2,983
|
|
|||||
Cash and equivalents at end of year
|
$
|
460
|
|
$
|
—
|
|
$
|
503
|
|
$
|
—
|
|
$
|
963
|
|
Year Ended December 31, 2017
|
Parent
|
Guarantors
on a
Combined
Basis
|
Other
Subsidiaries
on a
Combined
Basis
|
Consolidating
Adjustments
|
Total
Consolidated
|
||||||||||
Net cash provided by operating activities*
|
$
|
312
|
|
$
|
2,371
|
|
$
|
1,193
|
|
$
|
—
|
|
$
|
3,876
|
|
Cash flows from investing activities:
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(26
|
)
|
(330
|
)
|
(72
|
)
|
—
|
|
(428
|
)
|
|||||
Business acquisitions, net of cash acquired
|
—
|
|
(350
|
)
|
(49
|
)
|
—
|
|
(399
|
)
|
|||||
Other, net
|
10
|
|
31
|
|
(2
|
)
|
—
|
|
39
|
|
|||||
Net cash used by investing activities
|
(16
|
)
|
(649
|
)
|
(123
|
)
|
—
|
|
(788
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
||||||||||
Purchases of common stock
|
(1,558
|
)
|
—
|
|
—
|
|
—
|
|
(1,558
|
)
|
|||||
Dividends paid
|
(986
|
)
|
—
|
|
—
|
|
—
|
|
(986
|
)
|
|||||
Proceeds from fixed-rate notes
|
985
|
|
—
|
|
—
|
|
—
|
|
985
|
|
|||||
Repayment of fixed-rate notes
|
(900
|
)
|
—
|
|
—
|
|
—
|
|
(900
|
)
|
|||||
Other, net
|
63
|
|
(3
|
)
|
—
|
|
—
|
|
60
|
|
|||||
Net cash used by financing activities
|
(2,396
|
)
|
(3
|
)
|
—
|
|
—
|
|
(2,399
|
)
|
|||||
Net cash used by discontinued operations
|
(40
|
)
|
—
|
|
—
|
|
—
|
|
(40
|
)
|
|||||
Cash sweep/funding by parent
|
2,816
|
|
(1,719
|
)
|
(1,097
|
)
|
—
|
|
—
|
|
|||||
Net increase in cash and equivalents
|
676
|
|
—
|
|
(27
|
)
|
—
|
|
649
|
|
|||||
Cash and equivalents at beginning of year
|
1,254
|
|
—
|
|
1,080
|
|
—
|
|
2,334
|
|
|||||
Cash and equivalents at end of year
|
$
|
1,930
|
|
$
|
—
|
|
$
|
1,053
|
|
$
|
—
|
|
$
|
2,983
|
|
–
|
reading the underlying contract and related amendments to obtain an understanding of the contractual requirements and related performance obligations,
|
–
|
considering costs incurred to-date and considering the relative progress towards completion of the contract,
|
–
|
considering, if relevant, the estimated costs to complete on similar or predecessor programs,
|
–
|
inspecting correspondence, if any, between the Company and the customer regarding actual to date and expected performance, and
|
–
|
focusing on the Company’s assessment of contract performance risks included within the estimated costs to complete.
|
|
|
|
(Dollars in millions, except per-share amounts)
|
2018
|
|
2019
|
||||||||||||||||||||||||||||
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
|
1Q
|
|
2Q
|
|
3Q
|
|
4Q
|
||||||||||||||||
Revenue
|
$
|
7,535
|
|
|
$
|
9,186
|
|
|
$
|
9,094
|
|
|
$
|
10,378
|
|
|
$
|
9,261
|
|
|
$
|
9,555
|
|
|
$
|
9,761
|
|
|
$
|
10,773
|
|
Operating earnings
|
1,008
|
|
|
1,088
|
|
|
1,135
|
|
|
1,226
|
|
|
1,014
|
|
|
1,090
|
|
|
1,216
|
|
|
1,328
|
|
||||||||
Earnings from continuing operations
|
799
|
|
|
786
|
|
|
864
|
|
|
909
|
|
|
745
|
|
|
806
|
|
|
913
|
|
|
1,020
|
|
||||||||
Discontinued operations, net of tax
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net earnings
|
$
|
799
|
|
|
$
|
786
|
|
|
$
|
851
|
|
|
$
|
909
|
|
|
$
|
745
|
|
|
$
|
806
|
|
|
$
|
913
|
|
|
$
|
1,020
|
|
Earnings per share - basic*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Continuing operations
|
$
|
2.70
|
|
|
$
|
2.65
|
|
|
$
|
2.92
|
|
|
$
|
3.10
|
|
|
$
|
2.59
|
|
|
$
|
2.80
|
|
|
$
|
3.17
|
|
|
$
|
3.53
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net earnings
|
$
|
2.70
|
|
|
$
|
2.65
|
|
|
$
|
2.88
|
|
|
$
|
3.10
|
|
|
$
|
2.59
|
|
|
$
|
2.80
|
|
|
$
|
3.17
|
|
|
$
|
3.53
|
|
Earnings per share - diluted*:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Continuing operations
|
$
|
2.65
|
|
|
$
|
2.62
|
|
|
$
|
2.89
|
|
|
$
|
3.07
|
|
|
$
|
2.56
|
|
|
$
|
2.77
|
|
|
$
|
3.14
|
|
|
$
|
3.51
|
|
Discontinued operations
|
—
|
|
|
—
|
|
|
(0.04
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net earnings
|
$
|
2.65
|
|
|
$
|
2.62
|
|
|
$
|
2.85
|
|
|
$
|
3.07
|
|
|
$
|
2.56
|
|
|
$
|
2.77
|
|
|
$
|
3.14
|
|
|
$
|
3.51
|
|
|
|
|
|
|
Phebe N. Novakovic
|
|
|
|
Jason W. Aiken
|
Chairman and Chief Executive Officer
|
|
|
|
Senior Vice President and Chief Financial Officer
|
|
|
|
McLean, Virginia
|
|
|
February 10, 2020
|
|
|
1.
|
Consolidated Financial Statements
|
Consolidated Statement of Earnings
|
Consolidated Statement of Comprehensive Income
|
Consolidated Balance Sheet
|
Consolidated Statement of Cash Flows
|
Consolidated Statement of Shareholders’ Equity
|
Notes to Consolidated Financial Statements (A to T)
|
2.
|
Index to Exhibits - General Dynamics Corporation
|
3.2
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
4.3
|
|
|
|
4.4
|
|
|
|
4.5
|
|
|
|
4.6
|
|
|
|
4.7
|
|
|
|
4.8
|
|
|
|
4.9
|
|
|
|
10.1*
|
|
|
|
10.2*
|
|
|
|
10.3*
|
|
|
|
10.4*
|
|
|
|
10.5*
|
|
|
|
10.6*
|
|
|
|
10.7*
|
|
|
|
10.8*
|
|
|
|
10.9*
|
|
|
|
10.10*
|
|
|
|
10.11*
|
|
|
|
10.12*
|
|
|
|
10.13*
|
|
|
|
10.14*
|
|
|
|
10.15*
|
|
|
|
10.16*
|
|
|
|
10.17*
|
|
|
|
10.18*
|
|
|
|
10.19*
|
|
|
|
10.20*
|
|
|
|
10.21*
|
|
|
|
21
|
|
|
|
23
|
|
|
|
24
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101.INS
|
Inline eXtensible Business Reporting Language (XBRL) Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document**
|
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document**
|
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document**
|
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document**
|
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document**
|
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)
|
|
|
|
GENERAL DYNAMICS CORPORATION
|
|
|
by
|
|
|
|
William A. Moss
|
|
|
Vice President and Controller
|
|
|
|
Dated: February 10, 2020
|
|
|
|
Chairman, Chief Executive Officer and Director
|
Phebe N. Novakovic
|
(Principal Executive Officer)
|
|
|
|
Senior Vice President and Chief Financial Officer
|
Jason W. Aiken
|
(Principal Financial Officer)
|
|
|
|
Vice President and Controller
|
William A. Moss
|
(Principal Accounting Officer)
|
|
|
*
|
|
James S. Crown
|
Director
|
|
|
*
|
|
Rudy F. deLeon
|
Director
|
|
|
*
|
|
Cecil D. Haney
|
Director
|
|
|
*
|
|
Lester L. Lyles
|
Director
|
|
|
*
|
|
Mark M. Malcolm
|
Director
|
|
|
*
|
|
James N. Mattis
|
Director
|
|
|
*
|
|
C. Howard Nye
|
Director
|
|
|
*
|
|
William A. Osborn
|
Director
|
|
|
*
|
|
Catherine B. Reynolds
|
Director
|
|
|
*
|
|
Laura J. Schumacher
|
Director
|
|
|
*
|
|
John G. Stratton
|
Director
|
|
|
*
|
|
Peter A. Wall
|
Director
|
|
|
|
|
|
Gregory S. Gallopoulos
|
||
|
Senior Vice President, General Counsel and Secretary
|
•
|
the Board of Directors approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder prior to the time that stockholder became an interested stockholder;
|
•
|
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced (excluding, for purposes of determining the voting stock outstanding, but not the outstanding voting stock owned by the interested stockholder, shares owned (i) by persons who are directors and also officers and (ii) by certain employee stock plans); or
|
•
|
at or subsequent to such time the business combination is approved by the Board of Directors and authorized at an annual or special meeting of stockholders by the affirmative vote of at least 662⁄3% of the outstanding voting stock which is not owned by the interested stockholder.
|
(a)
|
Any lump sum payment that would have been payable to the Participant under Section 3.06(a) or 3.09 shall be payable to the surviving spouse.
|
(b)
|
For any other benefit subject to this Section 3.12, but not subject to Section 3.12(a) a death benefit shall be payable to the surviving spouse equal to 100% of the amount that would have been payable to the Participant if he had survived and elected the 100% Contingent Annuitant Option under Section 3.05(a) or 3.06(b)(1) as of his Determination Date.”
|
Exhibit 21
|
||
GENERAL DYNAMICS CORPORATION
|
||
SUBSIDIARIES
|
||
AS OF JANUARY 31, 2020
|
||
|
|
|
Subsidiaries of General Dynamics Corporation
(Parent and Registrant)
|
Place of
Incorporation
|
Percent of
Voting Power
|
42SIX, LLC
|
Maryland
|
100
|
Aeromil (Australia) Pty Ltd
|
Australia
|
100
|
Aeromil Aircraft Engineering Pty Ltd
|
Australia
|
100
|
Aeromil Aviation Services Pty Ltd
|
Australia
|
100
|
Aeromil IT Services Pty Ltd
|
Australia
|
100
|
Aeromil Marine Pty Ltd
|
Australia
|
100
|
Aeromil Pacific Pty Ltd
|
Australia
|
100
|
American Overseas Marine Company, LLC
|
Delaware
|
100
|
Applied Physical Sciences Corp.
|
Connecticut
|
100
|
ARMA Global Corporation
|
Florida
|
100
|
Australian Avionics Pty Ltd
|
Australia
|
100
|
Autonomic Resources LLC
|
North Carolina
|
100
|
Avion Logistics Limited
|
Hong Kong
|
100
|
Avjet Corporation
|
California
|
100
|
Bath Iron Works Australia Corporation
|
Delaware
|
100
|
Bath Iron Works Canada, LLC
|
Delaware
|
100
|
Bath Iron Works Corporation
|
Maine
|
100
|
Blueprint Technologies, Inc.
|
Virginia
|
100
|
Braintree I Maritime Corp.
|
Delaware
|
100
|
Braintree II Maritime Corp.
|
Delaware
|
100
|
Braintree III Maritime Corp.
|
Delaware
|
100
|
Braintree IV Maritime Corp.
|
Delaware
|
100
|
Braintree V Maritime Corp.
|
Delaware
|
100
|
Buccaneer Computer Systems & Service, Inc.
|
Virginia
|
100
|
Centauri Solutions LLC
|
Delaware
|
100
|
Concord I Maritime Corporation
|
Delaware
|
100
|
Concord II Maritime Corporation
|
Delaware
|
100
|
Concord III Maritime Corporation
|
Delaware
|
100
|
Concord IV Maritime Corporation
|
Delaware
|
100
|
Concord V Maritime Corporation
|
Delaware
|
100
|
Convair Aircraft Corporation
|
Delaware
|
100
|
Convair Corporation
|
Delaware
|
100
|
CSC Computer Sciences Venezuela, S.A.
|
Venezuela
|
100
|
CSRA (Costa Rica) S.A.
|
Costa Rica
|
100
|
CSRA (Guyana) Inc.
|
Guyana
|
100
|
CSRA (Middle East) LLC
|
Virginia
|
100
|
CSRA Argentina S.R.L.
|
Argentina
|
100
|
CSRA Bahamas Limited
|
Bahamas
|
100
|
CSRA Bahrain S.P.C.
|
Bahrain
|
100
|
CSRA Belgium SPRL
|
Belgium
|
100
|
CSRA BH d.o.o.
|
Bosnia and Herzegovina
|
100
|
CSRA Bolivia S.R.L.
|
Bolivia
|
100
|
CSRA Brazil Servicos de Tecnologia Ltda.
|
Brazil
|
100
|
CSRA Canada Inc.
|
Canada
|
100
|
CSRA Caribbean Inc.
|
Nevada
|
100
|
CSRA Chile SpA
|
Chile
|
100
|
CSRA Colombia SAS
|
Colombia
|
100
|
CSRA Commerce 2010 LLC
|
Nevada
|
100
|
CSRA Consular Services Holding Company LLC
|
Nevada
|
100
|
CSRA Consular Services Inc.
|
Nevada
|
100
|
CSRA France SARL
|
France
|
100
|
CSRA Guatemala Solutions, Sociedad Anonima
|
Guatemala
|
100
|
CSRA Honduras, Sociedad Anonima
|
Honduras
|
100
|
CSRA Inc.
|
Nevada
|
100
|
CSRA Information Systems LLC
|
Delaware
|
100
|
CSRA Information Technology Spain, SL
|
Spain
|
100
|
CSRA Ireland Limited
|
Ireland
|
100
|
CSRA Italy S.R.L.
|
Italy
|
100
|
CSRA Kosovo L.L.C.
|
Kosovo
|
100
|
CSRA LATAM LLC
|
Virginia
|
100
|
CSRA LLC
|
Nevada
|
100
|
CSRA Mexico S. de R.L. de C.V.
|
Mexico
|
100
|
CSRA Netherlands B.V.
|
Netherlands
|
100
|
CSRA Nicaragua, Sociedad Anonima
|
Nicaragua
|
100
|
CSRA Panama Inc.
|
Panama
|
100
|
CSRA Peru S.R.L.
|
Peru
|
100
|
CSRA Senegal SARL
|
Senegal
|
100
|
CSRA South Africa (Pty) Ltd
|
South Africa
|
100
|
CSRA State and Local Solutions LLC
|
Nevada
|
100
|
CSRA Systems & Solutions LLC
|
Delaware
|
100
|
CSRA Trinidad & Tobago Limited
|
Trinidad and Tobago
|
100
|
CSRA Turkey Bilisim Teknolojileri Limited Sirketi
|
Turkey
|
100
|
CSRA Uruguay S.R.L.
|
Uruguay
|
100
|
CSRA Visa Services Israel Ltd.
|
Israel
|
100
|
CSRAIT - Information Services Portugal, Unipessoal LDA
|
Portugal
|
100
|
Customer Services Ecuador CSRA S.A.
|
Ecuador
|
100
|
DynPort Vaccine Company LLC
|
Virginia
|
100
|
Eagle Enterprise, Inc.
|
Delaware
|
100
|
EB Groton Engineering, Inc.
|
Delaware
|
100
|
EBV Explosives Environmental Company
|
Delaware
|
100
|
ELCS-CZ, s.r.o.
|
Czech Republic
|
100
|
Electric Boat - Australia, LLC
|
Delaware
|
100
|
Electric Boat - UK, LLC
|
Delaware
|
100
|
Electric Boat Canada, LLC
|
Delaware
|
100
|
Electric Boat Corporation
|
Delaware
|
100
|
Electric Boat France, LLC
|
Delaware
|
100
|
Electrocom, Inc.
|
Delaware
|
100
|
Expro Finance Inc.
|
Canada
|
100
|
Fabrica de Menuciones de Granada S.L.
|
Spain
|
100
|
FBD Fahrzeug und Bremsendienst GmbH
|
Germany
|
100
|
Force Protection Europe Limited
|
England and Wales
|
100
|
Force Protection, Inc.
|
Nevada
|
100
|
ForeSight Technology Services, LLC
|
Virginia
|
100
|
Freeman United Coal Mining Company, LLC
|
Delaware
|
100
|
GD Brazil Holdings LLC
|
Delaware
|
100
|
GD European Land Systems - Steyr GmbH
|
Austria
|
100
|
GD European Land Systems Holding GmbH
|
Austria
|
100
|
GDOTS Services Corporation
|
Delaware
|
100
|
General Dynamics - OTS (Global), Inc.
|
Delaware
|
100
|
General Dynamics AIS Australia Pty Ltd
|
Australia
|
100
|
General Dynamics Canadian Finance Inc.
|
New Brunswick
|
100
|
General Dynamics Canadian Holdings Inc.
|
New Brunswick
|
100
|
General Dynamics Commercial Cyber Services, LLC
|
Virginia
|
100
|
General Dynamics European Finance Limited
|
England and Wales
|
100
|
General Dynamics European Land Systems - Austria GmbH
|
Austria
|
100
|
General Dynamics European Land Systems – Bridge Systems GmbH
|
Germany
|
100
|
General Dynamics European Land Systems - Czech s.r.o.
|
Czech Republic
|
100
|
General Dynamics European Land Systems - Deutschland GmbH
|
Germany
|
100
|
General Dynamics European Land Systems - FWW GmbH
|
Germany
|
100
|
General Dynamics European Land Systems - Mowag GmbH
|
Switzerland
|
100
|
General Dynamics European Land Systems Botswana Proprietary Ltd.
|
Botswana
|
100
|
General Dynamics European Land Systems Denmark ApS
|
Denmark
|
100
|
General Dynamics European Land Systems Romania S.R.L.
|
Romania
|
100
|
General Dynamics European Land Systems, S.L.
|
Spain
|
100
|
General Dynamics Global Force, LLC
|
Delaware
|
100
|
General Dynamics Global Holdings Limited
|
England and Wales
|
100
|
General Dynamics Global Imaging Technologies, Inc.
|
Delaware
|
100
|
General Dynamics Government Satellite Services, LLC
|
Delaware
|
100
|
General Dynamics Government Systems Corporation
|
Delaware
|
100
|
General Dynamics Government Systems Overseas Corporation
|
Delaware
|
100
|
General Dynamics Information Technology Limited
|
England and Wales
|
100
|
General Dynamics Information Technology, Inc.
|
Virginia
|
100
|
General Dynamics Installation Services, LLC
|
Delaware
|
100
|
General Dynamics International Corporation
|
Delaware
|
100
|
General Dynamics Itronix, LLC
|
Delaware
|
100
|
General Dynamics Land Systems - Australia Pty. Ltd.
|
Australia
|
100
|
General Dynamics Land Systems - Canada Corporation
|
New Brunswick
|
100
|
General Dynamics Land Systems - Canada Services Inc.
|
New Brunswick
|
100
|
General Dynamics Land Systems - Canadian Services Limited
|
New Brunswick
|
100
|
General Dynamics Land Systems - Force Protection Inc.
|
Nevada
|
100
|
General Dynamics Land Systems – Global LLC
|
Delaware
|
100
|
General Dynamics Land Systems Customer Service & Support Company
|
Texas
|
100
|
General Dynamics Land Systems Inc.
|
Delaware
|
100
|
General Dynamics Limited
|
England and Wales
|
100
|
General Dynamics Marine Systems, Inc.
|
Delaware
|
100
|
General Dynamics Mission Systems International Limited
|
England and Wales
|
100
|
General Dynamics Mission Systems Overseas Company, LLC
|
Delaware
|
100
|
General Dynamics Mission Systems, Inc.
|
Delaware
|
100
|
General Dynamics Mission Systems – Italy S.R.L.
|
Italy
|
100
|
General Dynamics Motion Control, LLC
|
Delaware
|
100
|
General Dynamics One Source, LLC
|
Delaware
|
100
|
General Dynamics Ordnance and Tactical Systems - Canada Inc.
|
Canada
|
100
|
General Dynamics Ordnance and Tactical Systems - Canada Valleyfield Inc.
|
Canada
|
100
|
General Dynamics Ordnance and Tactical Systems - Simunition Operations, Inc.
|
Delaware
|
100
|
General Dynamics Ordnance and Tactical Systems, Inc.
|
Virginia
|
100
|
General Dynamics OTS (Aerospace), Inc.
|
Washington
|
100
|
General Dynamics OTS (California), Inc.
|
California
|
100
|
General Dynamics OTS (DRI), Inc.
|
Alabama
|
100
|
General Dynamics OTS (Niceville), Inc.
|
Florida
|
100
|
General Dynamics Overseas Systems and Services Corporation
|
Delaware
|
100
|
General Dynamics Properties, Inc.
|
Delaware
|
100
|
General Dynamics Robotic Systems, Inc.
|
Delaware
|
100
|
General Dynamics Satcom Technologies Asia Private Limited
|
India
|
100
|
General Dynamics SATCOM Technologies, Inc.
|
Delaware
|
100
|
General Dynamics Satellite Communication Services, LLC
|
Delaware
|
100
|
General Dynamics Saudi Holdings, S.L.
|
Spain
|
100
|
General Dynamics Shared Resources, LLC
|
Delaware
|
100
|
General Dynamics Support Services Company
|
Delaware
|
100
|
General Dynamics Swiss Financial Management Limited
|
England and Wales
|
100
|
General Dynamics United Kingdom Limited
|
England and Wales
|
100
|
General Dynamics Worldwide Holdings, Inc.
|
Delaware
|
100
|
General Dynamics-OTS, Inc.
|
Delaware
|
100
|
GM GDLS Defense Group, L.L.C.
|
Delaware
|
100
|
GPS Source, Inc.
|
Colorado
|
100
|
Gulfstream 100 Holdings LLC
|
Delaware
|
100
|
Gulfstream Aerospace Corporation (CA)
|
California
|
100
|
Gulfstream Aerospace Corporation (DE)
|
Delaware
|
100
|
Gulfstream Aerospace Corporation (GA)
|
Georgia
|
100
|
Gulfstream Aerospace Corporation (OK)
|
Oklahoma
|
100
|
Gulfstream Aerospace Corporation of Texas
|
Texas
|
100
|
Gulfstream Aerospace Hong Kong Limited
|
Hong Kong
|
100
|
Gulfstream Aerospace LLC
|
Delaware
|
100
|
Gulfstream Aerospace LP
|
Texas
|
100
|
Gulfstream Aerospace Services Corporation
|
Delaware
|
100
|
Gulfstream Aerospace, Ltd.
|
England and Wales
|
100
|
Gulfstream Aerospace Sociedad de Responssabilidad Limitada de Capital Variable (S. de R.L. de C.V.)
|
Mexico
|
100
|
Gulfstream Austria, GmbH
|
Austria
|
100
|
Gulfstream Do Brasil Servicos De Suporte E Manutencao A Aeronaves Ltda.
|
Brazil
|
100
|
Gulfstream International Corporation
|
Delaware
|
100
|
Gulfstream Leasing LLC
|
Georgia
|
100
|
Gulfstream Product Support Corporation
|
Delaware
|
100
|
Gulfstream Services Corporation
|
Georgia
|
100
|
Gulfstream Tennessee Corporation
|
Delaware
|
100
|
Gulfstream-California, Inc.
|
Delaware
|
100
|
GWA-Datatrac FAST LLC
|
Virginia
|
100
|
Hawker Pacific (Malaysia) Sdn Bhd
|
Malaysia
|
100
|
Hawker Pacific Aircraft Management Pte Ltd
|
Singapore
|
100
|
Hawker Pacific Airservices Limited
|
Hong Kong
|
100
|
Hawker Pacific Airservices Pvt Ltd
|
India
|
100
|
Hawker Pacific Asia Holdings Pte Ltd
|
Singapore
|
100
|
Hawker Pacific Australia Pty Ltd
|
Australia
|
100
|
Hawker Pacific Aviation Services Pty Ltd
|
Australia
|
100
|
Hawker Pacific NZ Limited
|
New Zealand
|
100
|
Hawker Pacific Pty Ltd
|
Australia
|
100
|
Information Services Consulting Limited
|
England and Wales
|
100
|
Interiores Aereos S.A. de C.V.
|
Mexico
|
100
|
International Manufacturing Technologies, Inc.
|
California
|
100
|
IPWireless PTE. Limited
|
Singapore
|
100
|
Janteq Australia PTY Limited
|
Australia
|
100
|
Janteq Corp.
|
Maryland
|
100
|
Jet Aviation (Asia Pacific) Pte. Ltd.
|
Singapore
|
100
|
Jet Aviation (Bermuda) Ltd.
|
Bermuda
|
100
|
Jet Aviation (Hong Kong) Ltd.
|
Hong Kong
|
100
|
Jet Aviation (Malaysia) SDN, BHD
|
Malaysia
|
100
|
Jet Aviation 125 Services, LLC
|
Delaware
|
100
|
Jet Aviation AG
|
Switzerland
|
100
|
Jet Aviation Brazil Holdings, Inc.
|
Delaware
|
100
|
Jet Aviation Business Jets (Hong Kong) Limited
|
Hong Kong
|
100
|
Jet Aviation Business Jets AG
|
Switzerland
|
100
|
Jet Aviation Business Jets FZCO
|
UAE
|
100
|
Jet Aviation California, LLC
|
California
|
100
|
Jet Aviation Dulles, LLC
|
Delaware
|
100
|
Jet Aviation Flight Services, Inc.
|
Maryland
|
100
|
Jet Aviation France SAS
|
France
|
100
|
Jet Aviation Holding GmbH
|
Switzerland
|
100
|
Jet Aviation Holdings USA, Inc.
|
Delaware
|
100
|
Jet Aviation Houston, Inc.
|
Texas
|
100
|
Jet Aviation International, Inc.
|
Florida
|
100
|
Jet Aviation Malaga SA
|
Spain
|
100
|
Jet Aviation Management AG
|
Switzerland
|
100
|
Jet Aviation Netherlands B.V.
|
Netherlands
|
100
|
Jet Aviation of America, Inc.
|
Maryland
|
100
|
Jet Aviation Savannah Holding, LLC
|
Delaware
|
100
|
Jet Aviation Services GmbH
|
Germany
|
100
|
Jet Aviation St. Louis, Inc.
|
Missouri
|
100
|
Jet Aviation Teterboro, LP
|
New Jersey
|
100
|
Jet Aviation Texas, Inc.
|
Texas
|
100
|
Jet Aviation/Palm Beach, Inc.
|
Florida
|
100
|
Jet Aviation Vienna GmbH
|
Austria
|
100
|
Jet Professionals, LLC
|
Delaware
|
100
|
Longreach Energy, LLC
|
Delaware
|
100
|
Maricom Systems, Incorporated
|
Maryland
|
100
|
Material Service Resources Company, LLC
|
Delaware
|
100
|
Mediaware International Pty Ltd
|
Australia
|
100
|
Metro Machine Corp.
|
Virginia
|
100
|
Midwest Properties Sales, LLC
|
Delaware
|
100
|
NASSCO Holdings Incorporated
|
Delaware
|
100
|
National Steel and Shipbuilding Company
|
Nevada
|
100
|
NES Associates, LLC
|
Delaware
|
100
|
Newberry Holdings, LLC
|
Virginia
|
100
|
OOO Jet Aviation Vnukovo
|
Russia
|
100
|
Patriot I Shipping Corp.
|
Delaware
|
100
|
Patriot II Shipping Corp.
|
Delaware
|
100
|
Patriot IV Shipping Corp.
|
Delaware
|
100
|
Pazo’s Fuel Services, Inc.
|
Puerto Rico
|
100
|
Plane 79, LLC
|
Delaware
|
100
|
Praxis Engineering Technologies, LLC
|
Delaware
|
100
|
Prodelin India Private Limited
|
India
|
100
|
Proyectos Prohumane Mexico, S.A. de C.V.
|
Mexico
|
100
|
Quincy Maritime Corporation III
|
Delaware
|
100
|
Raven Acquisitions, LLC
|
Delaware
|
100
|
Santa Barbara Sistemas S.A.
|
Spain
|
100
|
Savannah Air Center, LLC
|
Georgia
|
100
|
SENTECH, INC.
|
Maryland
|
100
|
Signal Solutions, LLC
|
Virginia
|
100
|
Southern Illinois Recovery, Inc.
|
Delaware
|
100
|
SRA International, Inc.
|
Virginia
|
100
|
St. Marks Powder, Inc.
|
Delaware
|
100
|
Stabilo Pty Ltd
|
Australia
|
100
|
Sydney Jet Charter Pty Ltd
|
Australia
|
100
|
Tecnologias Internacionales de Manufactura S.A. de C.V.
|
Mexico
|
100
|
Tenacity Solutions Incorporated
|
Virginia
|
100
|
The Depth of Ideas for General Trading, LLC
|
Iraq
|
100
|
Vangent Servicios de Mexico, S.A. de C.V.
|
Mexico
|
100
|
Vertex Antennentechnik GmbH
|
Germany
|
100
|
Vulnerability Research Labs, LLC
|
Delaware
|
100
|
Weco, LLC
|
Delaware
|
100
|
•
|
the Consolidated Balance Sheet of General Dynamics Corporation as of December 31, 2019 and 2018, the related Consolidated Statements of Earnings, Comprehensive Income, Cash Flows, and Shareholders’ Equity for each of the years in the three-year period ended December 31, 2019, and the related notes (collectively, the Consolidated Financial Statements), and
|
•
|
the effectiveness of internal control over financial reporting as of December 31, 2019,
|
8th
|
/s/ James S. Crown
|
|
/s/ C. Howard Nye
|
James S. Crown
|
|
C. Howard Nye
|
|
|
|
/s/ Rudy F. deLeon
|
|
/s/ William A. Osborn
|
Rudy F. deLeon
|
|
William A. Osborn
|
|
|
|
/s/ Cecil D. Haney
|
|
/s/ Catherine B. Reynolds
|
Cecil D. Haney
|
|
Catherine B. Reynolds
|
|
|
|
/s/ Lester L. Lyles
|
|
/s/ Laura J. Schumacher
|
Lester L. Lyles
|
|
Laura J. Schumacher
|
|
|
|
/s/ Mark M. Malcolm
|
|
/s/ John G. Stratton
|
Mark M. Malcolm
|
|
John G. Stratton
|
|
|
|
/s/ James N. Mattis
|
|
/s/ Peter A. Wall
|
James N. Mattis
|
|
Peter A. Wall
|
|
|
|
/s/ Phebe N. Novakovic
|
|
|
Phebe N. Novakovic
|
|
|
|
|
|
1.
|
I have reviewed this annual report on Form 10-K of General Dynamics Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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 annual report is being prepared;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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:
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(a)
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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
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(b)
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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.
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/s/ Phebe N. Novakovic
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Phebe N. Novakovic
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Chairman and Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of General Dynamics Corporation;
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2.
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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;
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3.
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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;
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4.
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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:
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(a)
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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 annual report is being prepared;
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(b)
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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;
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(c)
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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
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(d)
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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
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5.
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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:
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(a)
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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
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(b)
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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.
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/s/ Jason W. Aiken
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Jason W. Aiken
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Senior Vice President and Chief Financial Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Phebe N. Novakovic
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Phebe N. Novakovic
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Chairman and Chief Executive Officer
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1.
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the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2.
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the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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/s/ Jason W. Aiken
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Jason W. Aiken
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Senior Vice President and Chief Financial Officer
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