Delaware |
13-1673581
|
||||||||||||||||
State or other jurisdiction of incorporation or organization | I.R.S. 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. | ||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Aircraft manufacturing | $ | 6,115 | $ | 7,541 | $ | 6,262 | |||||||||||
Aircraft services and completions | 1,960 | 2,260 | 2,193 | ||||||||||||||
Total Aerospace | $ | 8,075 | $ | 9,801 | $ | 8,455 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Nuclear-powered submarines | $ | 6,938 | $ | 6,254 | $ | 5,712 | |||||||||||
Surface ships | 2,055 | 1,912 | 1,872 | ||||||||||||||
Repair and other services | 986 | 1,017 | 918 | ||||||||||||||
Total Marine Systems | $ | 9,979 | $ | 9,183 | $ | 8,502 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Military vehicles | $ | 4,687 | $ | 4,620 | $ | 4,027 | |||||||||||
Weapons systems, armament and munitions | 1,991 | 1,906 | 1,798 | ||||||||||||||
Engineering and other services | 545 | 481 | 416 | ||||||||||||||
Total Combat Systems | $ | 7,223 | $ | 7,007 | $ | 6,241 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
IT services | $ | 7,892 | $ | 8,422 | $ | 8,269 | |||||||||||
C4ISR solutions | 4,756 | 4,937 | 4,726 | ||||||||||||||
Total Technologies | $ | 12,648 | $ | 13,359 | $ | 12,995 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
DoD | $ | 20,840 | $ | 19,864 | $ | 17,674 | |||||||||||
Non-DoD | 4,726 | 5,254 | 5,306 | ||||||||||||||
Foreign Military Sales (FMS)* | 737 | 689 | 626 | ||||||||||||||
Total U.S. government | $ | 26,303 | $ | 25,807 | $ | 23,606 | |||||||||||
% of total revenue | 69 | % | 66 | % | 65 | % |
(Square feet in millions) |
Company-owned
Facilities |
Leased
Facilities |
Government-owned
Facilities |
Total | |||||||||||||||||||
Aerospace | 6.6 | 8.9 | 0.5 | 16.0 | |||||||||||||||||||
Marine Systems | 8.3 | 4.3 | — | 12.6 | |||||||||||||||||||
Combat Systems | 6.5 | 4.6 | 5.2 | 16.3 | |||||||||||||||||||
Technologies | 3.1 | 7.8 | 0.9 | 11.8 | |||||||||||||||||||
Total square feet | 24.5 | 25.6 | 6.6 | 56.7 |
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 | 48 | ||||
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 | 58 | ||||
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
|
61 | ||||
Danny Deep - Vice President of the company and President of General Dynamics Land Systems since April 2020; Chief Operating Officer of General Dynamics Land Systems, September 2018 - April 2020; Vice President of General Dynamics Land Systems – Canada, January 2011 - September 2018
|
51 | ||||
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 | 61 | ||||
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 | 46 | ||||
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 | 56 | ||||
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 | 53 | ||||
Christopher Marzilli - Executive Vice President, Technologies since December 2020; Executive Vice President, Information Technology and Mission Systems, January 2019 - December 2020; 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 | 61 | ||||
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 | 57 | ||||
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 | 63 | ||||
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 | 62 | ||||
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 | 53 | ||||
Total Number of Shares Purchased as Part of Publicly Announced Program
|
Maximum Number of Shares That May Yet Be Purchased Under the Program
|
|||||||||||||||||||||||||
Period | Total Number of Shares | Average Price per Share | ||||||||||||||||||||||||
Shares Purchased Pursuant to Share Buyback Program | ||||||||||||||||||||||||||
9/28/20-10/25/20 | — | $ | — | — | 13,022,968 | |||||||||||||||||||||
10/26/20-11/22/20 | 450,000 | 141.31 | 450,000 | 12,572,968 | ||||||||||||||||||||||
11/23/20-12/31/20 | 250,000 | 148.27 | 250,000 | 12,322,968 | ||||||||||||||||||||||
Shares Delivered or Withheld Pursuant to Restricted Stock Vesting* | ||||||||||||||||||||||||||
9/28/20-10/25/20 | — | — | ||||||||||||||||||||||||
10/26/20-11/22/20 | 1,018 | 134.55 | ||||||||||||||||||||||||
11/23/20-12/31/20 | 90 | 151.38 | ||||||||||||||||||||||||
701,108 | $ | 143.79 |
(Dollars and shares in millions, except per-share and employee amounts) | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Summary of Operations | ||||||||||||||||||||||||||||||||
Revenue | $ | 37,925 | $ | 39,350 | $ | 36,193 | $ | 30,973 | $ | 30,561 | ||||||||||||||||||||||
Operating earnings | 4,133 | 4,570 | 4,394 | 4,168 | 3,725 | |||||||||||||||||||||||||||
Operating margin | 10.9 | % | 11.6 | % | 12.1 | % | 13.5 | % | 12.2 | % | ||||||||||||||||||||||
Interest, net | (477) | (460) | (356) | (103) | (91) | |||||||||||||||||||||||||||
Provision for income tax, net | (571) | (718) | (727) | (1,100) | (977) | |||||||||||||||||||||||||||
Earnings from continuing operations | 3,167 | 3,484 | 3,358 | 2,977 | 2,679 | |||||||||||||||||||||||||||
Return on sales (a) | 8.4 | % | 8.9 | % | 9.3 | % | 9.6 | % | 8.8 | % | ||||||||||||||||||||||
Discontinued operations, net of tax | — | — | (13) | — | (107) | |||||||||||||||||||||||||||
Net earnings | 3,167 | 3,484 | 3,345 | 2,977 | 2,572 | |||||||||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||||||||||||
Continuing operations | 11.00 | 11.98 | 11.22 | 9.77 | 8.64 | |||||||||||||||||||||||||||
Net earnings | 11.00 | 11.98 | 11.18 | 9.77 | 8.29 | |||||||||||||||||||||||||||
Cash Flows | ||||||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 3,858 | $ | 2,981 | $ | 3,148 | $ | 3,876 | $ | 2,163 | ||||||||||||||||||||||
Net cash used by investing activities | (974) | (994) | (10,234) | (788) | (391) | |||||||||||||||||||||||||||
Net cash (used) provided by financing activities | (903) | (1,997) | 5,086 | (2,399) | (2,169) | |||||||||||||||||||||||||||
Net cash used by discontinued operations | (59) | (51) | (20) | (40) | (54) | |||||||||||||||||||||||||||
Cash dividends declared per common share | 4.40 | 4.08 | 3.72 | 3.36 | 3.04 | |||||||||||||||||||||||||||
Financial Position | ||||||||||||||||||||||||||||||||
Cash and equivalents | $ | 2,824 | $ | 902 | $ | 963 | $ | 2,983 | $ | 2,334 | ||||||||||||||||||||||
Total assets | 51,308 | 49,349 | 45,887 | 35,469 | 33,380 | |||||||||||||||||||||||||||
Short- and long-term debt | 12,998 | 11,930 | 12,417 | 3,982 | 3,888 | |||||||||||||||||||||||||||
Shareholders’ equity | 15,661 | 13,978 | 12,110 | 11,801 | 10,509 | |||||||||||||||||||||||||||
Debt-to-equity (b) | 83.0 | % | 85.3 | % | 102.5 | % | 33.7 | % | 37.0 | % | ||||||||||||||||||||||
Debt-to-capital (c) | 45.4 | % | 46.0 | % | 50.6 | % | 25.2 | % | 27.0 | % | ||||||||||||||||||||||
Book value per share (d) | 54.67 | 48.26 | 41.95 | 39.75 | 34.75 | |||||||||||||||||||||||||||
Other Information | ||||||||||||||||||||||||||||||||
Free cash flow from operations (e) | $ | 2,891 | $ | 1,994 | $ | 2,458 | $ | 3,448 | $ | 1,771 | ||||||||||||||||||||||
Return on equity (f) | 21.8 | % | 26.4 | % | 27.3 | % | 26.5 | % | 25.1 | % | ||||||||||||||||||||||
Return on invested capital (e) | 11.8 | % | 14.0 | % | 15.4 | % | 16.8 | % | 16.3 | % | ||||||||||||||||||||||
Funded backlog | 58,783 | 57,530 | 55,826 | 52,031 | 51,783 | |||||||||||||||||||||||||||
Total backlog | 89,489 | 86,945 | 67,871 | 63,175 | 62,206 | |||||||||||||||||||||||||||
Shares outstanding | 286.5 | 289.6 | 288.7 | 296.9 | 302.4 | |||||||||||||||||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||||||||||||||
Basic | 286.9 | 288.3 | 295.3 | 299.2 | 304.7 | |||||||||||||||||||||||||||
Diluted | 287.9 | 290.8 | 299.2 | 304.6 | 310.4 | |||||||||||||||||||||||||||
Employees | 100,700 | 102,900 | 105,600 | 98,600 | 98,800 |
Year Ended December 31 | 2020 | 2019 | Variance | ||||||||||||||||||||
Revenue | $ | 37,925 | $ | 39,350 | $ | (1,425) | (3.6) | % | |||||||||||||||
Operating costs and expenses | (33,792) | (34,780) | 988 | (2.8) | % | ||||||||||||||||||
Operating earnings | 4,133 | 4,570 | (437) | (9.6) | % | ||||||||||||||||||
Operating margin | 10.9 | % | 11.6 | % |
Year Ended December 31 | 2020 | 2019 | Variance | ||||||||||||||||||||
Revenue | $ | 8,075 | $ | 9,801 | $ | (1,726) | (17.6) | % | |||||||||||||||
Operating earnings | 1,083 | 1,532 | (449) | (29.3) | % | ||||||||||||||||||
Operating margin | 13.4 | % | 15.6 | % | |||||||||||||||||||
Gulfstream aircraft deliveries (in units) | 127 | 147 | (20) | (13.6) | % |
Aircraft manufacturing | $ | (1,426) | |||
Aircraft services and completions | (300) | ||||
Total decrease | $ | (1,726) |
Aircraft manufacturing | $ | (590) | |||
Aircraft services and completions | (39) | ||||
Restructuring charges | (59) | ||||
G&A/other expenses | 239 | ||||
Total decrease | $ | (449) |
Year Ended December 31 | 2020 | 2019 | Variance | ||||||||||||||||||||
Revenue | $ | 9,979 | $ | 9,183 | $ | 796 | 8.7 | % | |||||||||||||||
Operating earnings | 854 | 785 | 69 | 8.8 | % | ||||||||||||||||||
Operating margin | 8.6 | % | 8.5 | % |
U.S. Navy ship construction | $ | 668 | |||
U.S. Navy ship engineering, repair and other services | 176 | ||||
Commercial ship construction | (48) | ||||
Total increase | $ | 796 |
Year Ended December 31 | 2020 | 2019 | Variance | ||||||||||||||||||||
Revenue | $ | 7,223 | $ | 7,007 | $ | 216 | 3.1 | % | |||||||||||||||
Operating earnings | 1,041 | 996 | 45 | 4.5 | % | ||||||||||||||||||
Operating margin | 14.4 | % | 14.2 | % |
Weapons systems and munitions | $ | 125 | |||
International military vehicles | 54 | ||||
U.S. military vehicles | 37 | ||||
Total increase | $ | 216 |
Year Ended December 31 | 2020 | 2019 | Variance | ||||||||||||||||||||
Revenue | $ | 12,648 | $ | 13,359 | $ | (711) | (5.3) | % | |||||||||||||||
Operating earnings | 1,211 | 1,311 | (100) | (7.6) | % | ||||||||||||||||||
Operating margin | 9.6 | % | 9.8 | % |
IT services | $ | (530) | |||
C4ISR* solutions | (181) | ||||
Total decrease | $ | (711) |
Year Ended December 31 | 2020 | 2019 | Variance | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Products | $ | 22,188 | $ | 23,130 | $ | (942) | (4.1) | % | |||||||||||||||
Services | 15,737 | 16,220 | (483) | (3.0) | % | ||||||||||||||||||
Operating Costs: | |||||||||||||||||||||||
Products | $ | (18,192) | $ | (18,611) | $ | 419 | (2.3) | % | |||||||||||||||
Services | (13,408) | (13,752) | 344 | (2.5) | % |
Aircraft manufacturing | $ | (1,426) | |||||||||
Ship construction | 620 | ||||||||||
Other, net | (136) | ||||||||||
Total decrease | $ | (942) |
IT services | $ | (530) | |||
Other, net | 47 | ||||
Total decrease | $ | (483) |
Funded | Unfunded | Total Backlog | Estimated Potential Contract Value |
Total
Estimated Contract Value |
|||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Aerospace | $ | 11,308 | $ | 318 | $ | 11,626 | $ | 2,800 | $ | 14,426 | |||||||||||||||||||
Marine Systems | 23,646 | 26,336 | 49,982 | 4,876 | 54,858 | ||||||||||||||||||||||||
Combat Systems | 14,341 | 226 | 14,567 | 9,774 | 24,341 | ||||||||||||||||||||||||
Technologies | 9,488 | 3,826 | 13,314 | 27,727 | 41,041 | ||||||||||||||||||||||||
Total | $ | 58,783 | $ | 30,706 | $ | 89,489 | $ | 45,177 | $ | 134,666 | |||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Aerospace | $ | 13,168 | $ | 181 | $ | 13,349 | $ | 2,989 | $ | 16,338 | |||||||||||||||||||
Marine Systems | 20,012 | 24,175 | 44,187 | 5,453 | 49,640 | ||||||||||||||||||||||||
Combat Systems | 14,474 | 439 | 14,913 | 4,322 | 19,235 | ||||||||||||||||||||||||
Technologies | 9,876 | 4,620 | 14,496 | 26,485 | 40,981 | ||||||||||||||||||||||||
Total | $ | 57,530 | $ | 29,415 | $ | 86,945 | $ | 39,249 | $ | 126,194 |
Year Ended December 31 | 2020 | 2019 | |||||||||
Net cash provided by operating activities | $ | 3,858 | $ | 2,981 | |||||||
Net cash used by investing activities | (974) | (994) | |||||||||
Net cash used by financing activities | (903) | (1,997) | |||||||||
Net cash used by discontinued operations | (59) | (51) | |||||||||
Net increase (decrease) in cash and equivalents | 1,922 | (61) | |||||||||
Cash and equivalents at beginning of year | 902 | 963 | |||||||||
Cash and equivalents at end of year | 2,824 | 902 | |||||||||
Short- and long-term debt | (12,998) | (11,930) | |||||||||
Net debt | $ | (10,174) | $ | (11,028) | |||||||
Debt-to-equity (a) | 83.0 | % | 85.3 | % | |||||||
Debt-to-capital (b) | 45.4 | % | 46.0 | % |
Year Ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 3,858 | $ | 2,981 | $ | 3,148 | $ | 3,876 | $ | 2,163 | |||||||||||||||||||
Capital expenditures | (967) | (987) | (690) | (428) | (392) | ||||||||||||||||||||||||
Free cash flow from operations | $ | 2,891 | $ | 1,994 | $ | 2,458 | $ | 3,448 | $ | 1,771 | |||||||||||||||||||
Cash flows as a percentage of earnings
from continuing operations: |
|||||||||||||||||||||||||||||
Net cash provided by operating activities | 122 | % | 86 | % | 94 | % | 133 | % | 81 | % | |||||||||||||||||||
Free cash flow from operations | 91 | % | 57 | % | 73 | % | 118 | % | 66 | % |
Year Ended December 31 | 2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Earnings from continuing operations | $ | 3,167 | $ | 3,484 | $ | 3,358 | $ | 2,912 | $ | 2,679 | |||||||||||||||||||
After-tax interest expense | 386 | 373 | 295 | 76 | 64 | ||||||||||||||||||||||||
After-tax amortization expense | 280 | 287 | 258 | 51 | 57 | ||||||||||||||||||||||||
Net operating profit after taxes | $ | 3,833 | $ | 4,144 | $ | 3,911 | $ | 3,039 | $ | 2,800 | |||||||||||||||||||
Average invested capital | $ | 32,431 | $ | 29,620 | $ | 25,367 | $ | 18,099 | $ | 17,168 | |||||||||||||||||||
Return on invested capital | 11.8 | % | 14.0 | % | 15.4 | % | 16.8 | % | 16.3 | % |
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) | $ | 16,501 | $ | 3,389 | $ | 2,884 | $ | 2,508 | $ | 7,720 | |||||||||||||||||||
Operating leases | 1,710 | 298 | 444 | 263 | 705 | ||||||||||||||||||||||||
Finance leases | 396 | 87 | 124 | 40 | 145 | ||||||||||||||||||||||||
Purchase obligations (b) | 38,090 | 17,019 | 15,111 | 4,655 | 1,305 | ||||||||||||||||||||||||
Other long-term liabilities (c) | 26,892 | 4,188 | 3,479 | 2,596 | 16,629 | ||||||||||||||||||||||||
$ | 83,589 | $ | 24,981 | $ | 22,042 | $ | 10,062 | $ | 26,504 |
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* | $ | 1,402 | $ | 771 | $ | 336 | $ | 199 | $ | 96 | |||||||||||||||||||
Aircraft trade-in options* | 339 | 16 | 236 | 87 | — | ||||||||||||||||||||||||
$ | 1,741 | $ | 787 | $ | 572 | $ | 286 | $ | 96 |
Year Ended December 31 | 2020 | ||||
Revenue | $ | 13,065 | |||
Operating costs and expenses, excluding G&A | (11,190) | ||||
Net Earnings | 738 |
December 31, 2020 | December 31, 2019 | ||||||||||
Cash and equivalents | $ | 1,952 | $ | 606 | |||||||
Other current assets | 2,894 | 2,875 | |||||||||
Noncurrent assets | 3,082 | 2,549 | |||||||||
Total assets | $ | 7,928 | $ | 6,030 | |||||||
Short-term debt and current portion of long-term debt | $ | 2,998 | $ | 2,497 | |||||||
Other current liabilities | 2,944 | 2,642 | |||||||||
Long-term debt | 9,922 | 8,965 | |||||||||
Other noncurrent liabilities | 5,645 | 5,772 | |||||||||
Total liabilities | $ | 21,509 | $ | 19,876 |
(Dollars in millions) | 2020 | 2019 | |||||||||
Recognized | $ | 44 | $ | 60 | |||||||
Unrecognized | (344) | (161) |
Year Ended December 31 | |||||||||||||||||
(Dollars in millions, except per-share amounts) | 2020 | 2019* | 2018* | ||||||||||||||
Revenue: | |||||||||||||||||
Products | $ | 22,188 | $ | 23,130 | $ | 20,149 | |||||||||||
Services | 15,737 | 16,220 | 16,044 | ||||||||||||||
37,925 | 39,350 | 36,193 | |||||||||||||||
Operating costs and expenses: | |||||||||||||||||
Products | (18,192) | (18,611) | (15,926) | ||||||||||||||
Services | (13,408) | (13,752) | (13,610) | ||||||||||||||
General and administrative (G&A) | (2,192) | (2,417) | (2,263) | ||||||||||||||
(33,792) | (34,780) | (31,799) | |||||||||||||||
Operating earnings | 4,133 | 4,570 | 4,394 | ||||||||||||||
Other, net | 82 | 92 | 47 | ||||||||||||||
Interest, net | (477) | (460) | (356) | ||||||||||||||
Earnings from continuing operations before income tax | 3,738 | 4,202 | 4,085 | ||||||||||||||
Provision for income tax, net | (571) | (718) | (727) | ||||||||||||||
Earnings from continuing operations | 3,167 | 3,484 | 3,358 | ||||||||||||||
Discontinued operations, net of tax provision of $13 in 2018
|
— | — | (13) | ||||||||||||||
Net earnings | $ | 3,167 | $ | 3,484 | $ | 3,345 | |||||||||||
Earnings per share | |||||||||||||||||
Basic: | |||||||||||||||||
Continuing operations
|
$ | 11.04 | $ | 12.09 | $ | 11.37 | |||||||||||
Discontinued operations
|
— | — | (0.04) | ||||||||||||||
Net earnings
|
$ | 11.04 | $ | 12.09 | $ | 11.33 | |||||||||||
Diluted: | |||||||||||||||||
Continuing operations
|
$ | 11.00 | $ | 11.98 | $ | 11.22 | |||||||||||
Discontinued operations
|
— | — | (0.04) | ||||||||||||||
Net earnings
|
$ | 11.00 | $ | 11.98 | $ | 11.18 |
Year Ended December 31 | ||||||||||||||||||||
(Dollars in millions) | 2020 | 2019* | 2018* | |||||||||||||||||
Net earnings | $ | 3,167 | $ | 3,484 | $ | 3,345 | ||||||||||||||
Gains on cash flow hedges | 366 | 97 | 36 | |||||||||||||||||
Foreign currency translation adjustments | 353 | 186 | (300) | |||||||||||||||||
Change in retirement plans’ funded status | (453) | (857) | (45) | |||||||||||||||||
Other comprehensive income (loss), pretax | 266 | (574) | (309) | |||||||||||||||||
Benefit for income tax, net | 2 | 156 | 1 | |||||||||||||||||
Other comprehensive income (loss), net of tax | 268 | (418) | (308) | |||||||||||||||||
Comprehensive income | $ | 3,435 | $ | 3,066 | $ | 3,037 |
December 31 | |||||||||||
(Dollars in millions) | 2020 | 2019* | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and equivalents | $ | 2,824 | $ | 902 | |||||||
Accounts receivable | 3,161 | 3,544 | |||||||||
Unbilled receivables | 8,024 | 7,857 | |||||||||
Inventories | 5,745 | 6,306 | |||||||||
Other current assets | 1,789 | 1,679 | |||||||||
Total current assets | 21,543 | 20,288 | |||||||||
Noncurrent assets: | |||||||||||
Property, plant and equipment, net | 5,100 | 4,475 | |||||||||
Intangible assets, net | 2,117 | 2,315 | |||||||||
Goodwill | 20,053 | 19,677 | |||||||||
Other assets | 2,495 | 2,594 | |||||||||
Total noncurrent assets | 29,765 | 29,061 | |||||||||
Total assets | $ | 51,308 | $ | 49,349 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Short-term debt and current portion of long-term debt | $ | 3,003 | $ | 2,920 | |||||||
Accounts payable | 2,952 | 3,162 | |||||||||
Customer advances and deposits | 6,276 | 7,148 | |||||||||
Other current liabilities | 3,733 | 3,571 | |||||||||
Total current liabilities | 15,964 | 16,801 | |||||||||
Noncurrent liabilities: | |||||||||||
Long-term debt | 9,995 | 9,010 | |||||||||
Other liabilities | 9,688 | 9,560 | |||||||||
Commitments and contingencies (see Note O) | |||||||||||
Total noncurrent liabilities | 19,683 | 18,570 | |||||||||
Shareholders’ equity: | |||||||||||
Common stock | 482 | 482 | |||||||||
Surplus | 3,124 | 3,039 | |||||||||
Retained earnings | 33,498 | 31,633 | |||||||||
Treasury stock | (17,893) | (17,358) | |||||||||
Accumulated other comprehensive loss | (3,550) | (3,818) | |||||||||
Total shareholders’ equity | 15,661 | 13,978 | |||||||||
Total liabilities and shareholders’ equity | $ | 51,308 | $ | 49,349 |
Year Ended December 31 | |||||||||||||||||
(Dollars in millions) | 2020 | 2019 | 2018 | ||||||||||||||
Cash flows from operating activities - continuing operations: | |||||||||||||||||
Net earnings | $ | 3,167 | $ | 3,484 | $ | 3,345 | |||||||||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||||||||||||
Depreciation of property, plant and equipment
|
523 | 466 | 436 | ||||||||||||||
Amortization of intangible and finance lease right-of-use assets
|
355 | 363 | 327 | ||||||||||||||
Equity-based compensation expense
|
128 | 133 | 140 | ||||||||||||||
Deferred income tax (benefit) provision | (127) | 92 | (3) | ||||||||||||||
Discontinued operations, net of tax
|
— | — | 13 | ||||||||||||||
(Increase) decrease in assets, net of effects of business acquisitions: | |||||||||||||||||
Accounts receivable | 371 | 176 | 417 | ||||||||||||||
Unbilled receivables | (116) | (1,303) | (800) | ||||||||||||||
Inventories | 502 | (376) | (591) | ||||||||||||||
Other current assets | 208 | 8 | 310 | ||||||||||||||
Increase (decrease) in liabilities, net of effects of business acquisitions: | |||||||||||||||||
Accounts payable
|
(215) | 6 | (197) | ||||||||||||||
Customer advances and deposits
|
(707) | (105) | 36 | ||||||||||||||
Other, net | (231) | 37 | (285) | ||||||||||||||
Net cash provided by operating activities | 3,858 | 2,981 | 3,148 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Capital expenditures | (967) | (987) | (690) | ||||||||||||||
Business acquisitions, net of cash acquired
|
(203) | (19) | (10,099) | ||||||||||||||
Proceeds from sales of assets | 171 | 14 | 562 | ||||||||||||||
Other, net | 25 | (2) | (7) | ||||||||||||||
Net cash used by investing activities | (974) | (994) | (10,234) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from fixed-rate notes | 3,960 | — | 6,461 | ||||||||||||||
Repayment of fixed-rate notes | (2,000) | — | — | ||||||||||||||
Dividends paid | (1,240) | (1,152) | (1,075) | ||||||||||||||
Purchases of common stock | (587) | (231) | (1,769) | ||||||||||||||
Repayment of floating-rate notes | (500) | — | — | ||||||||||||||
(Repayment of) proceeds from credit facility, net | (441) | 291 | 122 | ||||||||||||||
Proceeds from commercial paper, gross (maturities greater than 3 months) | 420 | — | — | ||||||||||||||
Repayment of commercial paper, gross (maturities greater than 3 months) | (420) | — | — | ||||||||||||||
(Repayment of) proceeds from commercial paper, net | — | (850) | 850 | ||||||||||||||
Proceeds from floating-rate notes | — | — | 1,000 | ||||||||||||||
Repayment of CSRA accounts receivable purchase agreement | — | — | (450) | ||||||||||||||
Other, net | (95) | (55) | (53) | ||||||||||||||
Net cash (used) provided by financing activities | (903) | (1,997) | 5,086 | ||||||||||||||
Net cash used by discontinued operations | (59) | (51) | (20) | ||||||||||||||
Net increase (decrease) in cash and equivalents | 1,922 | (61) | (2,020) | ||||||||||||||
Cash and equivalents at beginning of year | 902 | 963 | 2,983 | ||||||||||||||
Cash and equivalents at end of year | $ | 2,824 | $ | 902 | $ | 963 |
Common Stock | Retained | Treasury |
Accumulated
Other Comprehensive |
Total Shareholders’ |
|||||||||||||||||||||||||||||||
(Dollars in millions) | Par | Surplus | Earnings | Stock | Loss | Equity | |||||||||||||||||||||||||||||
December 31, 2017 (a) | $ | 482 | $ | 2,872 | $ | 26,509 | $ | (15,543) | $ | (2,519) | $ | 11,801 | |||||||||||||||||||||||
Cumulative-effect adjustments (a) (b) | — | — | 573 | — | (573) | — | |||||||||||||||||||||||||||||
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 (a) | — | — | — | — | (308) | (308) | |||||||||||||||||||||||||||||
December 31, 2018 (a) | 482 | 2,946 | 29,326 | (17,244) | (3,400) | 12,110 | |||||||||||||||||||||||||||||
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 (a) | — | — | — | — | (418) | (418) | |||||||||||||||||||||||||||||
December 31, 2019 (a) | 482 | 3,039 | 31,633 | (17,358) | (3,818) | 13,978 | |||||||||||||||||||||||||||||
Cumulative-effect adjustment (c) | — | — | (37) | — | — | (37) | |||||||||||||||||||||||||||||
Net earnings | — | — | 3,167 | — | — | 3,167 | |||||||||||||||||||||||||||||
Cash dividends declared | — | — | (1,265) | — | — | (1,265) | |||||||||||||||||||||||||||||
Equity-based awards | — | 85 | — | 67 | — | 152 | |||||||||||||||||||||||||||||
Shares purchased | — | — | — | (602) | — | (602) | |||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 268 | 268 | |||||||||||||||||||||||||||||
December 31, 2020 | $ | 482 | $ | 3,124 | $ | 33,498 | $ | (17,893) | $ | (3,550) | $ | 15,661 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Interest expense | $ | 489 | $ | 472 | $ | 374 | |||||||||||
Interest income | (12) | (12) | (18) | ||||||||||||||
Interest expense, net | $ | 477 | $ | 460 | $ | 356 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Revenue | $ | 389 | $ | 342 | $ | 377 | |||||||||||
Operating earnings | 283 | 271 | 345 | ||||||||||||||
Diluted earnings per share | $ | 0.78 | $ | 0.74 | $ | 0.91 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Aircraft manufacturing | $ | 6,115 | $ | 7,541 | $ | 6,262 | |||||||||||
Aircraft services and completions | 1,960 | 2,260 | 2,193 | ||||||||||||||
Total Aerospace | 8,075 | 9,801 | 8,455 | ||||||||||||||
Nuclear-powered submarines | 6,938 | 6,254 | 5,712 | ||||||||||||||
Surface ships | 2,055 | 1,912 | 1,872 | ||||||||||||||
Repair and other services | 986 | 1,017 | 918 | ||||||||||||||
Total Marine Systems | 9,979 | 9,183 | 8,502 | ||||||||||||||
Military vehicles | 4,687 | 4,620 | 4,027 | ||||||||||||||
Weapons systems, armament and munitions | 1,991 | 1,906 | 1,798 | ||||||||||||||
Engineering and other services | 545 | 481 | 416 | ||||||||||||||
Total Combat Systems | 7,223 | 7,007 | 6,241 | ||||||||||||||
Information technology (IT) services | 7,892 | 8,422 | 8,269 | ||||||||||||||
C4ISR* solutions | 4,756 | 4,937 | 4,726 | ||||||||||||||
Total Technologies | 12,648 | 13,359 | 12,995 | ||||||||||||||
Total revenue | $ | 37,925 | $ | 39,350 | $ | 36,193 |
Year Ended December 31, 2020 | Aerospace | Marine Systems | Combat Systems | Technologies |
Total
Revenue |
||||||||||||||||||||||||
Fixed-price | $ | 7,402 | $ | 6,924 | $ | 6,159 | $ | 5,794 | $ | 26,279 | |||||||||||||||||||
Cost-reimbursement | — | 3,045 | 997 | 5,300 | 9,342 | ||||||||||||||||||||||||
Time-and-materials | 673 | 10 | 67 | 1,554 | 2,304 | ||||||||||||||||||||||||
Total revenue | $ | 8,075 | $ | 9,979 | $ | 7,223 | $ | 12,648 | $ | 37,925 | |||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
Fixed-price | $ | 8,949 | $ | 6,331 | $ | 6,049 | $ | 6,344 | $ | 27,673 | |||||||||||||||||||
Cost-reimbursement | — | 2,839 | 894 | 5,263 | 8,996 | ||||||||||||||||||||||||
Time-and-materials | 852 | 13 | 64 | 1,752 | 2,681 | ||||||||||||||||||||||||
Total revenue | $ | 9,801 | $ | 9,183 | $ | 7,007 | $ | 13,359 | $ | 39,350 | |||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
Fixed-price | $ | 7,600 | $ | 5,493 | $ | 5,406 | $ | 6,107 | $ | 24,606 | |||||||||||||||||||
Cost-reimbursement | — | 3,004 | 800 | 5,283 | 9,087 | ||||||||||||||||||||||||
Time-and-materials | 855 | 5 | 35 | 1,605 | 2,500 | ||||||||||||||||||||||||
Total revenue | $ | 8,455 | $ | 8,502 | $ | 6,241 | $ | 12,995 | $ | 36,193 |
Year Ended December 31, 2020 | Aerospace | Marine Systems | Combat Systems | Technologies |
Total
Revenue |
||||||||||||||||||||||||
U.S. government: | |||||||||||||||||||||||||||||
Department of Defense (DoD)
|
$ | 394 | $ | 9,656 | $ | 3,813 | $ | 6,977 | $ | 20,840 | |||||||||||||||||||
Non-DoD | — | 9 | 12 | 4,705 | 4,726 | ||||||||||||||||||||||||
Foreign Military Sales (FMS) | 119 | 206 | 366 | 46 | 737 | ||||||||||||||||||||||||
Total U.S. government | 513 | 9,871 | 4,191 | 11,728 | 26,303 | ||||||||||||||||||||||||
U.S. commercial | 4,268 | 97 | 254 | 272 | 4,891 | ||||||||||||||||||||||||
Non-U.S. government | 221 | 9 | 2,704 | 551 | 3,485 | ||||||||||||||||||||||||
Non-U.S. commercial | 3,073 | 2 | 74 | 97 | 3,246 | ||||||||||||||||||||||||
Total revenue | $ | 8,075 | $ | 9,979 | $ | 7,223 | $ | 12,648 | $ | 37,925 | |||||||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||
U.S. government: | |||||||||||||||||||||||||||||
DoD | $ | 305 | $ | 8,837 | $ | 3,695 | $ | 7,027 | $ | 19,864 | |||||||||||||||||||
Non-DoD | 88 | 2 | 13 | 5,151 | 5,254 | ||||||||||||||||||||||||
FMS | 105 | 188 | 340 | 56 | 689 | ||||||||||||||||||||||||
Total U.S. government | 498 | 9,027 | 4,048 | 12,234 | 25,807 | ||||||||||||||||||||||||
U.S. commercial | 5,270 | 142 | 229 | 327 | 5,968 | ||||||||||||||||||||||||
Non-U.S. government | 399 | 9 | 2,663 | 673 | 3,744 | ||||||||||||||||||||||||
Non-U.S. commercial | 3,634 | 5 | 67 | 125 | 3,831 | ||||||||||||||||||||||||
Total revenue | $ | 9,801 | $ | 9,183 | $ | 7,007 | $ | 13,359 | $ | 39,350 | |||||||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||
U.S. government: | |||||||||||||||||||||||||||||
DoD | $ | 236 | $ | 8,098 | $ | 2,903 | $ | 6,437 | $ | 17,674 | |||||||||||||||||||
Non-DoD | — | 2 | 8 | 5,296 | 5,306 | ||||||||||||||||||||||||
FMS | 98 | 145 | 317 | 66 | 626 | ||||||||||||||||||||||||
Total U.S. government | 334 | 8,245 | 3,228 | 11,799 | 23,606 | ||||||||||||||||||||||||
U.S. commercial | 3,983 | 245 | 251 | 301 | 4,780 | ||||||||||||||||||||||||
Non-U.S. government | 546 | 10 | 2,698 | 743 | 3,997 | ||||||||||||||||||||||||
Non-U.S. commercial | 3,592 | 2 | 64 | 152 | 3,810 | ||||||||||||||||||||||||
Total revenue | $ | 8,455 | $ | 8,502 | $ | 6,241 | $ | 12,995 | $ | 36,193 |
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 | ||||||||||
Revenue | $ | 37,534 | |||||||||
Earnings from continuing operations | 3,390 | ||||||||||
Diluted earnings per share from continuing operations | $ | 11.33 |
Aerospace | Marine Systems | Combat Systems | Information Technology | Mission Systems | Technologies | Total Goodwill | |||||||||||||||||||||||||||||||||||
December 31, 2018 (a) | $ | 2,813 | $ | 297 | $ | 2,633 | $ | 9,622 | $ | 4,229 | $ | — | $ | 19,594 | |||||||||||||||||||||||||||
Acquisitions/divestitures (b) | 3 | — | 15 | 77 | 6 | — | 101 | ||||||||||||||||||||||||||||||||||
Other (c) | 15 | — | 33 | 1 | (67) | — | (18) | ||||||||||||||||||||||||||||||||||
December 31, 2019 (a) | 2,831 | 297 | 2,681 | 9,700 | 4,168 | — | 19,677 | ||||||||||||||||||||||||||||||||||
Acquisitions (b) | 72 | — | 65 | — | — | — | 137 | ||||||||||||||||||||||||||||||||||
Other (c) | 162 | — | 40 | 46 | (9) | — | 239 | ||||||||||||||||||||||||||||||||||
Change in reporting unit composition (d) | — | — | — | (9,746) | (4,159) | 13,905 | — | ||||||||||||||||||||||||||||||||||
December 31, 2020 (e) | $ | 3,065 | $ | 297 | $ | 2,786 | $ | — | $ | — | $ | 13,905 | $ | 20,053 |
Gross Carrying Amount (a) | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount (a) | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
December 31 | 2020 | 2019 | |||||||||||||||||||||
Contract and program intangible assets (b) | $ | 3,399 | $ | (1,600) | $ | 1,799 | $ | 3,776 | $ | (1,779) | $ | 1,997 | |||||||||||
Trade names and trademarks | 516 | (229) | 287 | 474 | (195) | 279 | |||||||||||||||||
Technology and software | 134 | (106) | 28 | 164 | (126) | 38 | |||||||||||||||||
Other intangible assets | 161 | (158) | 3 | 159 | (158) | 1 | |||||||||||||||||
Total intangible assets | $ | 4,210 | $ | (2,093) | $ | 2,117 | $ | 4,573 | $ | (2,258) | $ | 2,315 |
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 | ||||
2021 | $ | 221 | |||
2022 | 197 | ||||
2023 | 180 | ||||
2024 | 170 | ||||
2025 | 162 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||
Basic weighted average shares outstanding | 286,922 | 288,286 | 295,262 | ||||||||
Dilutive effect of stock options and restricted stock/RSUs*
|
991 | 2,550 | 3,898 | ||||||||
Diluted weighted average shares outstanding | 287,913 | 290,836 | 299,160 |
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, 2020 | ||||||||||||||||||||||||||||
Measured at fair value: | |||||||||||||||||||||||||||||
Marketable securities held in trust: | |||||||||||||||||||||||||||||
Cash and equivalents | $ | 19 | $ | 19 | $ | 17 | $ | 2 | $ | — | |||||||||||||||||||
Available-for-sale debt securities | 134 | 134 | — | 134 | — | ||||||||||||||||||||||||
Equity securities | 58 | 58 | 58 | — | — | ||||||||||||||||||||||||
Other investments | 9 | 9 | — | — | 9 | ||||||||||||||||||||||||
Cash flow hedges | 419 | 419 | — | 419 | — | ||||||||||||||||||||||||
Measured at amortized cost:
|
|||||||||||||||||||||||||||||
Short- and long-term debt principal | (13,117) | (14,606) | — | (14,606) | — | ||||||||||||||||||||||||
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) | — |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Current: | |||||||||||||||||
U.S. federal | $ | 558 | $ | 471 | $ | 587 | |||||||||||
State | 8 | 36 | 48 | ||||||||||||||
Foreign | 132 | 119 | 95 | ||||||||||||||
Total current | 698 | 626 | 730 | ||||||||||||||
Deferred: | |||||||||||||||||
U.S. federal | (130) | 49 | (37) | ||||||||||||||
State | (2) | 1 | 8 | ||||||||||||||
Foreign | 5 | 42 | 26 | ||||||||||||||
Total deferred | (127) | 92 | (3) | ||||||||||||||
Provision for income taxes, net | $ | 571 | $ | 718 | $ | 727 | |||||||||||
Net income tax payments | $ | 764 | $ | 572 | $ | 532 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | 21.0 | % | |||||||||||
Domestic tax credits | (4.6) | (2.0) | (1.1) | ||||||||||||||
Equity-based compensation | (0.2) | (1.1) | (1.1) | ||||||||||||||
Contract close-outs | — | — | (0.5) | ||||||||||||||
Foreign derived intangible income | (2.1) | (1.4) | (1.2) | ||||||||||||||
State tax on commercial operations, net of federal benefits | 0.1 | 0.7 | 1.1 | ||||||||||||||
Global impact of international operations | 1.9 | 0.2 | 0.6 | ||||||||||||||
Other, net | (0.8) | (0.3) | (1.0) | ||||||||||||||
Effective income tax rate | 15.3 | % | 17.1 | % | 17.8 | % |
December 31 | 2020 | 2019 | |||||||||
Retirement benefits | $ | 1,042 | $ | 990 | |||||||
Lease liabilities | 373 | 418 | |||||||||
Tax loss and credit carryforwards | 311 | 323 | |||||||||
Salaries and wages | 259 | 167 | |||||||||
Workers’ compensation | 167 | 148 | |||||||||
Other | 373 | 367 | |||||||||
Deferred assets | 2,525 | 2,413 | |||||||||
Valuation allowances | (273) | (291) | |||||||||
Net deferred assets | $ | 2,252 | $ | 2,122 | |||||||
Intangible assets | $ | (1,067) | $ | (1,070) | |||||||
Lease right-of-use assets | (379) | (418) | |||||||||
Contract accounting methods | (311) | (375) | |||||||||
Property, plant and equipment | (270) | (291) | |||||||||
Capital Construction Fund qualified ships | (59) | (164) | |||||||||
Other | (590) | (359) | |||||||||
Deferred liabilities | $ | (2,676) | $ | (2,677) | |||||||
Net deferred tax liability | $ | (424) | $ | (555) |
December 31 | 2020 | 2019 | |||||||||
Deferred tax asset | $ | 37 | $ | 33 | |||||||
Deferred tax liability | (461) | (588) | |||||||||
Net deferred tax liability | $ | (424) | $ | (555) |
December 31 | 2020 | 2019 | |||||||||
Non-U.S. government | $ | 1,701 | $ | 1,847 | |||||||
U.S. government | 1,040 | 1,076 | |||||||||
Commercial | 420 | 621 | |||||||||
Total accounts receivable | $ | 3,161 | $ | 3,544 |
December 31 | 2020 | 2019 | |||||||||
Unbilled revenue | $ | 36,657 | $ | 33,481 | |||||||
Advances and progress billings | (28,633) | (25,624) | |||||||||
Net unbilled receivables | $ | 8,024 | $ | 7,857 |
December 31 | 2020 | 2019 | |||||||||
Work in process | $ | 3,990 | $ | 4,419 | |||||||
Raw materials | 1,712 | 1,733 | |||||||||
Finished goods | 30 | 30 | |||||||||
Pre-owned aircraft | 13 | 124 | |||||||||
Total inventories | $ | 5,745 | $ | 6,306 |
December 31 | 2020 | 2019 | |||||||||
Machinery and equipment | $ | 5,941 | $ | 5,441 | |||||||
Buildings and improvements | 3,558 | 3,232 | |||||||||
Construction in process | 802 | 688 | |||||||||
Land and improvements | 413 | 400 | |||||||||
Total PP&E | 10,714 | 9,761 | |||||||||
Accumulated depreciation | (5,614) | (5,286) | |||||||||
PP&E, net | $ | 5,100 | $ | 4,475 |
December 31 | 2020 | 2019 | |||||||||||||||
Fixed-rate notes due: | Interest rate: | ||||||||||||||||
May 2020 | 2.875% | $ | — | $ | 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 | ||||||||||||||
April 2025 | 3.250% | 750 | — | ||||||||||||||
May 2025 | 3.500% | 750 | 750 | ||||||||||||||
August 2026 | 2.125% | 500 | 500 | ||||||||||||||
April 2027 | 3.500% | 750 | — | ||||||||||||||
November 2027 | 2.625% | 500 | 500 | ||||||||||||||
May 2028 | 3.750% | 1,000 | 1,000 | ||||||||||||||
April 2030 | 3.625% | 1,000 | — | ||||||||||||||
April 2040 | 4.250% | 750 | — | ||||||||||||||
November 2042 | 3.600% | 500 | 500 | ||||||||||||||
April 2050 | 4.250% | 750 | — | ||||||||||||||
Floating-rate notes due: | |||||||||||||||||
May 2020 | 3-month LIBOR + | 0.29% | — | 500 | |||||||||||||
May 2021 | 3-month LIBOR + | 0.38% | 500 | 500 | |||||||||||||
Other | Various | 117 | 505 | ||||||||||||||
Total debt principal | 13,117 | 12,005 | |||||||||||||||
Less unamortized debt issuance costs
and discounts |
119 | 75 | |||||||||||||||
Total debt | 12,998 | 11,930 | |||||||||||||||
Less current portion | 3,003 | 2,920 | |||||||||||||||
Long-term debt | $ | 9,995 | $ | 9,010 |
Year Ended December 31 |
Debt
Principal |
||||
2021 | $ | 3,006 | |||
2022 | 1,010 | ||||
2023 | 1,255 | ||||
2024 | 505 | ||||
2025 | 1,503 | ||||
Thereafter | 5,838 | ||||
Total debt principal | $ | 13,117 |
December 31 | 2020 | 2019 | |||||||||
Salaries and wages | $ | 1,007 | $ | 941 | |||||||
Workers’ compensation
|
338 | 306 | |||||||||
Retirement benefits | 306 | 296 | |||||||||
Operating lease liabilities | 262 | 252 | |||||||||
Fair value of cash flow hedges | 79 | 32 | |||||||||
Other (a)
|
1,741 | 1,744 | |||||||||
Total other current liabilities | $ | 3,733 | $ | 3,571 | |||||||
Retirement benefits | $ | 5,182 | $ | 5,172 | |||||||
Operating lease liabilities | 1,149 | 1,251 | |||||||||
Customer deposits on commercial contracts
|
872 | 709 | |||||||||
Deferred income taxes | 461 | 588 | |||||||||
Other (b)
|
2,024 | 1,840 | |||||||||
Total other liabilities | $ | 9,688 | $ | 9,560 |
(Losses)/Gains on Cash Flow Hedges | Unrealized Gains on Marketable Securities | Foreign Currency Translation Adjustments | Changes in Retirement Plans’ Funded Status | AOCL | |||||||||||||
December 31, 2017 | $ | (94) | $ | 19 | $ | 402 | $ | (2,846) | $ | (2,519) | |||||||
Cumulative-effect adjustments* | (4) | (19) | — | (550) | (573) | ||||||||||||
Other comprehensive loss, pretax | 36 | — | (300) | (45) | (309) | ||||||||||||
Benefit from income tax, net | (9) | — | — | 10 | 1 | ||||||||||||
Other comprehensive loss, net of tax | 27 | — | (300) | (35) | (308) | ||||||||||||
December 31, 2018 | (71) | — | 102 | (3,431) | (3,400) | ||||||||||||
Other comprehensive loss, pretax | 97 | — | 186 | (857) | (574) | ||||||||||||
Benefit from income tax, net | (24) | — | — | 180 | 156 | ||||||||||||
Other comprehensive loss, net of tax | 73 | — | 186 | (677) | (418) | ||||||||||||
December 31, 2019 | 2 | — | 288 | (4,108) | (3,818) | ||||||||||||
Other comprehensive income, pretax | 366 | — | 353 | (453) | 266 | ||||||||||||
Benefit from income tax, net | (96) | — | — | 98 | 2 | ||||||||||||
Other comprehensive income, net of tax | 270 | — | 353 | (355) | 268 | ||||||||||||
December 31, 2020 | $ | 272 | $ | — | $ | 641 | $ | (4,463) | $ | (3,550) |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Beginning balance | $ | 619 | $ | 480 | $ | 467 | |||||||||||
Warranty expense | 113 | 258 | 129 | ||||||||||||||
Payments | (108) | (105) | (102) | ||||||||||||||
Adjustments | 36 | (14) | (14) | ||||||||||||||
Ending balance | $ | 660 | $ | 619 | $ | 480 |
Year Ended December 31 | 2020 | 2019 | |||||||||
Finance lease cost: | |||||||||||
Amortization of right-of-use assets | $ | 94 | $ | 86 | |||||||
Interest on lease liabilities | 25 | 24 | |||||||||
Operating lease cost | 326 | 332 | |||||||||
Short-term lease cost | 62 | 75 | |||||||||
Variable lease cost | 12 | 14 | |||||||||
Sublease income | (16) | (13) | |||||||||
Total lease costs, net | $ | 503 | $ | 518 |
Year Ended December 31 | 2020 | 2019 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases
|
$ | 323 | $ | 325 | |||||||
Operating cash flows from finance leases
|
25 | 24 | |||||||||
Financing cash flows from finance leases
|
64 | 57 | |||||||||
Right-of-use assets obtained in exchange for lease liabilities: | |||||||||||
Operating leases
|
205 | 365 | |||||||||
Finance leases
|
45 | 50 |
December 31 | 2020 | 2019 | ||||||
Weighted-average remaining lease term: | ||||||||
Operating leases
|
10.5 years | 10.7 years | ||||||
Finance leases
|
10.1 years | 6.1 years | ||||||
Weighted-average discount rate: | ||||||||
Operating leases
|
3 | % | 3 | % | ||||
Finance leases
|
7 | % | 8 | % |
Year Ended December 31 | Operating Leases | Finance Leases | |||||||||
2021 | $ | 298 | $ | 87 | |||||||
2022 | 252 | 86 | |||||||||
2023 | 192 | 38 | |||||||||
2024 | 156 | 21 | |||||||||
2025 | 107 | 19 | |||||||||
Thereafter | 705 | 145 | |||||||||
Total future lease payments | 1,710 | 396 | |||||||||
Less imputed interest | 299 | 73 | |||||||||
Present value of future lease payments | 1,411 | 323 | |||||||||
Less current portion of lease liabilities | 262 | 68 | |||||||||
Long-term lease liabilities | $ | 1,149 | $ | 255 | |||||||
ROU assets | $ | 1,328 | $ | 333 |
Operating Leases | Finance Leases | ||||||||||
Current portion of lease liabilities | $ | 252 | $ | 67 | |||||||
Long-term lease liabilities | 1,251 | 287 | |||||||||
ROU assets | 1,432 | 391 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Stock options | $ | 43 | $ | 43 | $ | 45 | |||||||||||
Restricted stock/RSUs | 58 | 62 | 65 | ||||||||||||||
Total equity-based compensation expense, net of tax | $ | 101 | $ | 105 | $ | 110 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Expected volatility |
21.1-26.9%
|
19.7-20.0%
|
17.6-18.2%
|
||||||||||||||
Weighted average expected volatility | 21.2 | % | 19.7 | % | 17.6 | % | |||||||||||
Expected term (in months) | 60 | 64 | 68 | ||||||||||||||
Risk-free interest rate |
0.4-1.5%
|
1.7-2.6%
|
2.6-2.9%
|
||||||||||||||
Expected dividend yield | 2.4 | % | 2.0 | % | 1.8 | % |
In Shares and Dollars | Shares Under Option |
Weighted Average
Exercise Price Per Share |
|||||||||
Outstanding on December 31, 2019 | 9,767,749 | $ | 161.54 | ||||||||
Granted | 2,538,120 | 165.20 | |||||||||
Exercised | (910,572) | 101.16 | |||||||||
Forfeited/canceled | (266,576) | 174.52 | |||||||||
Outstanding on December 31, 2020 | 11,128,721 | $ | 167.00 | ||||||||
Vested and expected to vest on December 31, 2020 | 10,746,380 | $ | 167.02 | ||||||||
Exercisable on December 31, 2020 | 6,133,048 | $ | 161.18 |
Weighted Average Remaining Contractual Term (in years) |
Aggregate Intrinsic
Value |
||||||||||
Outstanding | 6.7 | $ | 56 | ||||||||
Vested and expected to vest | 6.6 | 56 | |||||||||
Exercisable | 5.1 | 56 |
In Shares and Dollars |
Shares/
Share-Equivalent Units |
Weighted Average
Grant-Date Fair Value Per Share |
|||||||||
Nonvested at December 31, 2019 | 1,224,364 | $ | 181.11 | ||||||||
Granted | 559,168 | 170.57 | |||||||||
Vested | (609,870) | 172.23 | |||||||||
Forfeited | (23,511) | 173.91 | |||||||||
Nonvested at December 31, 2020 | 1,150,151 | $ | 180.98 |
Pension
Benefits |
Other Post-retirement
Benefits |
||||||||||
2021 | $ | 887 | $ | 64 | |||||||
2022 | 912 | 63 | |||||||||
2023 | 935 | 62 | |||||||||
2024 | 961 | 60 | |||||||||
2025 | 981 | 59 | |||||||||
2026-2030 | 5,094 | 273 |
Pension Benefits | |||||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Service cost | $ | 115 | $ | 111 | $ | 180 | |||||||||||
Interest cost | 491 | 600 | 532 | ||||||||||||||
Expected return on plan assets | (926) | (911) | (856) | ||||||||||||||
Net actuarial loss | 387 | 355 | 375 | ||||||||||||||
Prior service credit | (18) | (19) | (46) | ||||||||||||||
Net annual benefit cost | $ | 49 | $ | 136 | $ | 185 |
Other Post-retirement Benefits | |||||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Service cost | $ | 10 | $ | 8 | $ | 10 | |||||||||||
Interest cost | 27 | 35 | 33 | ||||||||||||||
Expected return on plan assets | (36) | (36) | (40) | ||||||||||||||
Net actuarial gain | (3) | (8) | (4) | ||||||||||||||
Prior service credit | (1) | (3) | (4) | ||||||||||||||
Net annual benefit credit | $ | (3) | $ | (4) | $ | (5) |
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Change in Benefit Obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | (18,107) | $ | (15,720) | $ | (1,027) | $ | (935) | |||||||||||||||
Service cost | (115) | (111) | (10) | (8) | |||||||||||||||||||
Interest cost | (491) | (600) | (27) | (35) | |||||||||||||||||||
Amendments | 37 | (3) | 2 | (8) | |||||||||||||||||||
Actuarial loss | (1,780) | (2,446) | (60) | (101) | |||||||||||||||||||
Settlement/curtailment/other | (65) | (33) | (4) | (4) | |||||||||||||||||||
Benefits paid | 829 | 806 | 64 | 64 | |||||||||||||||||||
Benefit obligation at end of year | $ | (19,692) | $ | (18,107) | $ | (1,062) | $ | (1,027) | |||||||||||||||
Change in Plan/Trust Assets | |||||||||||||||||||||||
Fair value of assets at beginning of year | $ | 13,177 | $ | 11,532 | $ | 644 | $ | 570 | |||||||||||||||
Actual return on plan assets | 1,843 | 2,206 | 102 | 117 | |||||||||||||||||||
Employer contributions | 480 | 185 | — | 2 | |||||||||||||||||||
Settlement/curtailment/other | 58 | 39 | — | — | |||||||||||||||||||
Benefits paid | (807) | (785) | (41) | (45) | |||||||||||||||||||
Fair value of assets at end of year | $ | 14,751 | $ | 13,177 | $ | 705 | $ | 644 | |||||||||||||||
Funded status at end of year | $ | (4,941) | $ | (4,930) | $ | (357) | $ | (383) |
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Noncurrent assets | $ | 69 | $ | 61 | $ | 121 | $ | 94 | |||||||||||||||
Current liabilities | (181) | (166) | (125) | (130) | |||||||||||||||||||
Noncurrent liabilities | (4,829) | (4,825) | (353) | (347) | |||||||||||||||||||
Net liability recognized | $ | (4,941) | $ | (4,930) | $ | (357) | $ | (383) |
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net actuarial loss (gain) | $ | 5,752 | $ | 5,276 | $ | (12) | $ | (9) | |||||||||||||||
Prior service (credit) cost | (93) | (73) | 12 | 12 | |||||||||||||||||||
Total amount recognized in AOCL, pretax | $ | 5,659 | $ | 5,203 | $ | — | $ | 3 |
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Net actuarial loss (gain) | $ | 863 | $ | 1,151 | $ | (6) | $ | 20 | |||||||||||||||
Prior service credit (cost) | (38) | 3 | (1) | 8 | |||||||||||||||||||
Amortization of: | |||||||||||||||||||||||
Net actuarial (loss) gain from prior
years |
(387) | (355) | 3 | 8 | |||||||||||||||||||
Prior service credit | 18 | 19 | 1 | 3 | |||||||||||||||||||
Change in AOCL, pretax | $ | 456 | $ | 818 | $ | (3) | $ | 39 |
December 31 | 2020 | 2019 | |||||||||
PBO | $ | (19,189) | $ | (17,651) | |||||||
Fair value of plan assets | 14,191 | 12,673 |
Pension Benefits | Other Post-retirement Benefits | ||||||||||||||||||||||
December 31 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
ABO | $ | (18,596) | $ | (17,080) | $ | (784) | $ | (783) | |||||||||||||||
Fair value of plan assets | 13,829 | 12,354 | 300 | 301 |
Assumptions for Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
Pension Benefits | |||||||||||||||||
Discount rates: | |||||||||||||||||
Benefit obligation | 3.19 | % | 4.28 | % | 3.69 | % | |||||||||||
Service cost | 2.74 | % | 3.81 | % | 3.51 | % | |||||||||||
Interest cost | 2.78 | % | 3.92 | % | 3.34 | % | |||||||||||
Expected long-term rate of return on assets | 7.41 | % | 7.46 | % | 7.45 | % | |||||||||||
Rate of increase in compensation levels | 2.73 | % | 2.77 | % | 2.79 | % | |||||||||||
Other Post-retirement Benefits | |||||||||||||||||
Discount rates: | |||||||||||||||||
Benefit obligation | 3.18 | % | 4.24 | % | 3.64 | % | |||||||||||
Service cost | 3.35 | % | 4.23 | % | 3.79 | % | |||||||||||
Interest cost | 2.78 | % | 3.88 | % | 3.27 | % | |||||||||||
Expected long-term rate of return on assets | 6.86 | % | 6.84 | % | 7.75 | % |
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, 2020 | ||||||||||||||||||||||
Cash and equivalents | $ | 112 | $ | — | $ | 112 | $ | — | |||||||||||||||
Equity securities (a): | |||||||||||||||||||||||
U.S. companies
|
1,137 | 1,137 | — | — | |||||||||||||||||||
Non-U.S. companies
|
90 | 90 | — | — | |||||||||||||||||||
Private equity investments
|
33 | — | — | 33 | |||||||||||||||||||
Fixed-income securities: | |||||||||||||||||||||||
Corporate bonds (b)
|
3,532 | — | 3,532 | — | |||||||||||||||||||
Treasury securities
|
1,129 | — | 1,129 | — | |||||||||||||||||||
Commingled funds: | |||||||||||||||||||||||
Equity funds
|
7,306 | — | 7,306 | — | |||||||||||||||||||
Fixed-income funds
|
416 | — | 416 | — | |||||||||||||||||||
Real estate funds
|
90 | — | — | 90 | |||||||||||||||||||
Other investments: | |||||||||||||||||||||||
Insurance deposit contracts
|
157 | — | — | 157 | |||||||||||||||||||
Retirement annuity contracts
|
38 | — | — | 38 | |||||||||||||||||||
Total plan assets in fair value hierarchy | $ | 14,040 | $ | 1,227 | $ | 12,495 | $ | 318 | |||||||||||||||
Plan assets measured using NAV as a practical expedient (c):
|
|||||||||||||||||||||||
Real estate funds
|
446 | ||||||||||||||||||||||
Hedge funds
|
254 | ||||||||||||||||||||||
Equity funds
|
11 | ||||||||||||||||||||||
Total pension plan assets | $ | 14,751 |
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) |
|||||||||||||||
Asset Category (a) | December 31, 2020 | ||||||||||||||||
Cash and equivalents | $ | 16 | $ | — | $ | 16 | |||||||||||
Equity securities | 97 | 97 | — | ||||||||||||||
Fixed-income securities | 134 | — | 134 | ||||||||||||||
Commingled funds: | |||||||||||||||||
Equity funds
|
320 | — | 320 | ||||||||||||||
Fixed-income funds
|
128 | — | 128 | ||||||||||||||
Real estate funds
|
2 | 2 | — | ||||||||||||||
Total plan assets in fair value hierarchy | $ | 697 | $ | 99 | $ | 598 | |||||||||||
Plan assets measured using NAV as a practical expedient (b):
|
|||||||||||||||||
Real estate funds
|
5 | ||||||||||||||||
Hedge funds | 3 | ||||||||||||||||
Total other post-retirement benefit plan assets | $ | 705 |
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 |
Private Equity Investments | Real Estate Funds | Insurance Deposits Contracts | Retirement Annuity Contracts |
Total
Level 3 Assets |
|||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Actual return on plan assets: | |||||||||||||||||||||||||||||
Unrealized gains, net
|
5 | 7 | 18 | 3 | 33 | ||||||||||||||||||||||||
Realized losses, net | — | (1) | — | — | (1) | ||||||||||||||||||||||||
Purchases, sales and settlements, net | 2 | — | 2 | — | 4 | ||||||||||||||||||||||||
December 31, 2020 | $ | 33 | $ | 90 | $ | 157 | $ | 38 | $ | 318 |
Revenue* | Operating Earnings |
Revenue from
U.S. Government |
|||||||||||||||||||||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Aerospace | $ | 8,075 | $ | 9,801 | $ | 8,455 | $ | 1,083 | $ | 1,532 | $ | 1,490 | $ | 513 | $ | 498 | $ | 334 | |||||||||||||||||
Marine Systems | 9,979 | 9,183 | 8,502 | 854 | 785 | 761 | 9,871 | 9,027 | 8,245 | ||||||||||||||||||||||||||
Combat Systems | 7,223 | 7,007 | 6,241 | 1,041 | 996 | 962 | 4,191 | 4,048 | 3,228 | ||||||||||||||||||||||||||
Technologies | 12,648 | 13,359 | 12,995 | 1,211 | 1,311 | 1,267 | 11,728 | 12,234 | 11,799 | ||||||||||||||||||||||||||
Corporate | — | — | — | (56) | (54) | (86) | — | — | — | ||||||||||||||||||||||||||
Total | $ | 37,925 | $ | 39,350 | $ | 36,193 | $ | 4,133 | $ | 4,570 | $ | 4,394 | $ | 26,303 | $ | 25,807 | $ | 23,606 |
Identifiable Assets | Capital Expenditures | Depreciation and Amortization | |||||||||||||||||||||||||||||||||
Year Ended December 31 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | 2020 | 2019 | 2018 | ||||||||||||||||||||||||||
Aerospace | $ | 12,050 | $ | 12,324 | $ | 11,220 | $ | 95 | $ | 138 | $ | 194 | $ | 201 | $ | 178 | $ | 154 | |||||||||||||||||
Marine Systems | 4,488 | 3,918 | 3,304 | 604 | 449 | 243 | 145 | 122 | 116 | ||||||||||||||||||||||||||
Combat Systems | 12,034 | 11,220 | 9,872 | 92 | 109 | 91 | 95 | 85 | 87 | ||||||||||||||||||||||||||
Technologies | 19,663 | 20,453 | 20,143 | 172 | 222 | 111 | 428 | 437 | 398 | ||||||||||||||||||||||||||
Corporate* | 3,073 | 1,434 | 1,348 | 4 | 69 | 51 | 9 | 7 | 8 | ||||||||||||||||||||||||||
Total | $ | 51,308 | $ | 49,349 | $ | 45,887 | $ | 967 | $ | 987 | $ | 690 | $ | 878 | $ | 829 | $ | 763 |
Year Ended December 31 | 2020 | 2019 | 2018 | ||||||||||||||
North America: | |||||||||||||||||
United States | $ | 31,194 | $ | 31,775 | $ | 28,386 | |||||||||||
Other | 1,078 | 898 | 813 | ||||||||||||||
Total North America | 32,272 | 32,673 | 29,199 | ||||||||||||||
Europe | 2,846 | 2,836 | 2,807 | ||||||||||||||
Asia/Pacific | 1,292 | 1,739 | 2,287 | ||||||||||||||
Africa/Middle East | 1,249 | 1,785 | 1,611 | ||||||||||||||
South America | 266 | 317 | 289 | ||||||||||||||
Total revenue | $ | 37,925 | $ | 39,350 | $ | 36,193 |
Year Ended December 31, 2020 | As Calculated Under Previous Method | Effect of the Change in Accounting Principle | As Reported | ||||||||||||||
Operating costs and expenses | $ | (33,739) | $ | (53) | $ | (33,792) | |||||||||||
Other, net | 29 | 53 | 82 |
Year Ended December 31, 2019 | As Previously Reported | Effect of the Change in Accounting Principle | As Adjusted | ||||||||||||||
Operating costs and expenses | $ | (34,702) | $ | (78) | $ | (34,780) | |||||||||||
Other, net | 14 | 78 | 92 |
Year Ended December 31, 2018 | As Previously Reported | Effect of the Change in Accounting Principle | As Adjusted | ||||||||||||||
Operating costs and expenses | $ | (31,736) | $ | (63) | $ | (31,799) | |||||||||||
Other, net | (16) | 63 | 47 |
Year Ended December 31, 2020 | As Calculated Under Previous Method | Effect of the Change in Accounting Principle | As Reported | ||||||||||||||
Change in retirement plans’ funded status | $ | (491) | $ | 38 | $ | (453) | |||||||||||
Benefit from income tax, net | 10 | (8) | 2 | ||||||||||||||
Other comprehensive income, net of tax | 238 | 30 | 268 | ||||||||||||||
Comprehensive income | 3,405 | 30 | 3,435 |
Year Ended December 31, 2019 | As Previously Reported | Effect of the Change in Accounting Principle | As Adjusted | ||||||||||||||
Change in retirement plans’ funded status | $ | (886) | $ | 29 | $ | (857) | |||||||||||
Benefit from income tax, net | 162 | (6) | 156 | ||||||||||||||
Other comprehensive loss, net of tax | (441) | 23 | (418) | ||||||||||||||
Comprehensive income | 3,043 | 23 | 3,066 |
Year Ended December 31, 2018 | As Previously Reported | Effect of the Change in Accounting Principle | As Adjusted | ||||||||||||||
Change in retirement plans’ funded status | $ | (61) | $ | 16 | $ | (45) | |||||||||||
Benefit from income tax, net | 5 | (4) | 1 | ||||||||||||||
Other comprehensive loss, net of tax | (320) | 12 | (308) | ||||||||||||||
Comprehensive income | 3,025 | 12 | 3,037 |
December 31, 2020 | As Calculated Under Previous Method | Effect of the Change in Accounting Principle | As Reported | ||||||||||||||
Other current assets | $ | 1,243 | $ | 546 | $ | 1,789 | |||||||||||
Other liabilities | 9,573 | 115 | 9,688 | ||||||||||||||
Accumulated other comprehensive loss | (3,981) | 431 | (3,550) |
December 31, 2019 | As Previously Reported | Effect of the Change in Accounting Principle | As Adjusted | ||||||||||||||
Other current assets | $ | 1,171 | $ | 508 | $ | 1,679 | |||||||||||
Other liabilities | 9,453 | 107 | 9,560 | ||||||||||||||
Accumulated other comprehensive loss | (4,219) | 401 | (3,818) |
Retained Earnings | Accumulated Other Comprehensive Loss | Total Shareholders’ Equity | |||||||||||||||
December 31, 2017 – as reported
|
$ | 26,444 | $ | (2,820) | $ | 11,435 | |||||||||||
Cumulative-effect of the Change in Accounting Principle as of
December 31, 2017 |
65 | 301 | 366 | ||||||||||||||
December 31, 2017 – as adjusted
|
26,509 | (2,519) | 11,801 | ||||||||||||||
Year ended December 31, 2018 – as reported
|
2,882 | (958) | 297 | ||||||||||||||
Effect of the Change in Accounting Principle* | (65) | 77 | 12 | ||||||||||||||
December 31, 2018 – as adjusted
|
29,326 | (3,400) | 12,110 | ||||||||||||||
Year ended December 31, 2019 – as reported
|
2,307 | (441) | 1,845 | ||||||||||||||
Effect of the Change in Accounting Principle | — | 23 | 23 | ||||||||||||||
December 31, 2019 – as adjusted
|
31,633 | (3,818) | 13,978 | ||||||||||||||
Year ended December 31, 2020 – under previous method
|
1,865 | 238 | 1,653 | ||||||||||||||
Effect of the Change in Accounting Principle | — | 30 | 30 | ||||||||||||||
December 31, 2020 – as reported
|
$ | 33,498 | $ | (3,550) | $ | 15,661 |
2019 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
As Calculated Under Previous Method | 1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | |||||||||||||||||||||||||||||||||||||||
Operating costs and expenses | $ | (8,247) | $ | (8,465) | $ | (8,545) | $ | (9,445) | $ | (7,808) | $ | (8,423) | $ | (8,347) | $ | (9,161) | |||||||||||||||||||||||||||||||
Other, net | 18 | 12 | (12) | (4) | 14 | 18 | 12 | (15) | |||||||||||||||||||||||||||||||||||||||
Effect of the Change in Accounting Principle | |||||||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses | $ | (13) | $ | (13) | $ | (32) | $ | (20) | $ | (7) | $ | (7) | $ | (12) | $ | (27) | |||||||||||||||||||||||||||||||
Other, net | 13 | 13 | 32 | 20 | 7 | 7 | 12 | 27 | |||||||||||||||||||||||||||||||||||||||
As Calculated Under New Method | |||||||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses | $ | (8,260) | $ | (8,478) | $ | (8,577) | $ | (9,465) | $ | (7,815) | $ | (8,430) | $ | (8,359) | $ | (9,188) | |||||||||||||||||||||||||||||||
Other, net | 31 | 25 | 20 | 16 | 21 | 25 | 24 | 12 |
|
(Dollars in millions, except per-share amounts) | 2019 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||
1Q | 2Q | 3Q | 4Q | 1Q | 2Q | 3Q | 4Q | ||||||||||||||||||||||||||||||||||||||||
Revenue | $ | 9,261 | $ | 9,555 | $ | 9,761 | $ | 10,773 | $ | 8,749 | $ | 9,264 | $ | 9,431 | $ | 10,481 | |||||||||||||||||||||||||||||||
Operating earnings | 1,001 | 1,077 | 1,184 | 1,308 | 934 | 834 | 1,072 | 1,293 | |||||||||||||||||||||||||||||||||||||||
Net earnings | 745 | 806 | 913 | 1,020 | 706 | 625 | 834 | 1,002 | |||||||||||||||||||||||||||||||||||||||
Earnings per share*: | |||||||||||||||||||||||||||||||||||||||||||||||
Basic
|
$ | 2.59 | $ | 2.80 | $ | 3.17 | $ | 3.53 | $ | 2.45 | $ | 2.18 | $ | 2.91 | $ | 3.50 | |||||||||||||||||||||||||||||||
Diluted | $ | 2.56 | $ | 2.77 | $ | 3.14 | $ | 3.51 | $ | 2.43 | $ | 2.18 | $ | 2.90 | $ | 3.49 |
|
|
|||||||||||||
Phebe N. Novakovic | Jason W. Aiken | |||||||||||||
Chairman and Chief Executive Officer | Senior Vice President and Chief Financial Officer |
|
||||||||
McLean, Virginia | ||||||||
February 9, 2021 |
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) |
10.1* | |||||
10.2* | |||||
10.3* | |||||
10.4* | |||||
10.5* | |||||
10.6* | |||||
10.7* | |||||
10.8* | |||||
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 9, 2021 |
|
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 | ||||
* | |||||
Mark M. Malcolm | Director | ||||
* | |||||
James N. Mattis | Director | ||||
* | |||||
C. Howard Nye | Director | ||||
* | |||||
William A. Osborn | Director | ||||
* | |||||
Catherine B. Reynolds | Director | ||||
* | |||||
Laura J. Schumacher
|
Director | ||||
* | |||||
Robert K. Steel
|
Director | ||||
* | |||||
John G. Stratton
|
Director | ||||
* | |||||
Peter A. Wall
|
Director |
|
|||||||||||
Gregory S. Gallopoulos | |||||||||||
Senior Vice President, General Counsel and Secretary |
Exhibit 21 | ||||||||
GENERAL DYNAMICS CORPORATION | ||||||||
SUBSIDIARIES | ||||||||
AS OF JANUARY 20, 2021 | ||||||||
Subsidiaries of General Dynamics Corporation
(Parent and Registrant) |
Place of
Incorporation |
Percent of
Voting Power |
||||||
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 | ||||||
Avion Logistics Limited | Hong Kong | 100 | ||||||
Avjet Corporation | California | 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 | ||||||
Computer Security Solutions, LLC | Virginia | 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 Bahrain Co. W.L.L. | Bahrain | 100 | ||||||
CSC Computer Sciences Egypt LLC | Egypt | 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 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 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 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 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 | ||||||
FBD Fahrzeug und Bremsendienst GmbH | Germany | 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 International Corporation | 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 Asia-Pacific SDN BHD | Brunei | 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 OTS (Wilkes Barre), LLC | Pennsylvania | 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 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 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 | ||||||
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 Bozeman, LLC | Montana | 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 Business Jets Singapore Pte Ltd | Singapore | 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 Staffing, LLC | Delaware | 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 | ||||||
Longreach Energy, LLC | Delaware | 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 | ||||||
Newberry Holdings, LLC | Virginia | 100 | ||||||
Pazo’s Fuel Services, Inc. | Puerto Rico | 100 | ||||||
Plane 79, LLC | Delaware | 100 | ||||||
Praxis Engineering Technologies, LLC | Delaware | 100 | ||||||
Proyectos Prohumane Mexico, S.A. de C.V. | Mexico | 100 | ||||||
Quincy Maritime Corporation III | Delaware | 100 | ||||||
Santa Barbara Sistemas S.A. | Spain | 100 | ||||||
Savannah Air Center, LLC | Georgia | 100 | ||||||
Scottsdale Jet Center, LLC | Arizona | 100 | ||||||
Signal Solutions, LLC | Virginia | 100 | ||||||
Southern Illinois Recovery, Inc. | Delaware | 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 | ||||||
The Depth of Ideas for General Trading, LLC | Iraq | 100 | ||||||
Vangent Servicios de Mexico, S.A. de C.V. | Mexico | 100 | ||||||
Vulnerability Research Labs, LLC | Delaware | 100 |
/s/ JAMES S. CROWN | /s/ WILLIAM A. OSBORN | |||||||
James S. Crown | William A. Osborn | |||||||
/s/ RUDY F. DELEON | /s/ CATHERINE B. REYNOLDS | |||||||
Rudy F. deLeon | Catherine B. Reynolds | |||||||
/s/ CECIL D. HANEY | /s/ LAURA J. SCHUMACHER | |||||||
Cecil D. Haney | Laura J. Schumacher | |||||||
/s/ MARK M. MALCOLM | /s/ ROBERT K. STEEL | |||||||
Mark M. Malcolm | Robert K. Steel | |||||||
/s/ JAMES N. MATTIS | /s/ JOHN G. STRATTON | |||||||
James N. Mattis | John G. Stratton | |||||||
/s/ C. HOWARD NYE | /s/ PETER A. WALL | |||||||
C. Howard Nye | Peter A. Wall | |||||||
/s/ Phebe N. Novakovic | |||||
Phebe N. Novakovic | |||||
Chairman and Chief Executive Officer |
/s/ Jason W. Aiken | |||||
Jason W. Aiken | |||||
Senior Vice President and Chief Financial Officer |
/s/ Phebe N. Novakovic | |||||
Phebe N. Novakovic | |||||
Chairman and Chief Executive Officer |
/s/ Jason W. Aiken | |||||
Jason W. Aiken | |||||
Senior Vice President and Chief Financial Officer |