| Statement Of Income (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Sep. 27, 2009 | 3 Months Ended
Sep. 28, 2008 | 9 Months Ended
Sep. 27, 2009 | 9 Months Ended
Sep. 28, 2008 |
| Net Sales | ||||
| Products | $8,837 | $8,475 | $26,335 | $26,047 |
| Services | 2,219 | 2,102 | 6,330 | 5,552 |
| Sales Revenue, Net, Total | 11,056 | 10,577 | 32,665 | 31,599 |
| Cost of Sales | ||||
| Products | (7,861) | (7,528) | (23,457) | (23,058) |
| Services | (2,023) | (1,872) | (5,693) | (5,055) |
| Unallocated Corporate Costs | (176) | (55) | (502) | (104) |
| Cost of Goods and Services Sold | (10,060) | (9,455) | (29,652) | (28,217) |
| Gross Profit, Total | 996 | 1,122 | 3,013 | 3,382 |
| Other Income (Expense), Net | 89 | 120 | 212 | 401 |
| Operating Profit | 1,085 | 1,242 | 3,225 | 3,783 |
| Interest Expense | (67) | (85) | (219) | (264) |
| Other Non-Operating Income (Expense), Net | 54 | (13) | 98 | 14 |
| Earnings Before Income Taxes | 1,072 | 1,144 | 3,104 | 3,533 |
| Income Tax Expense | (275) | (362) | (907) | (1,139) |
| Net Earnings | $797 | $782 | $2,197 | $2,394 |
| Earnings Per Common Share | ||||
| Basic | 2.09 | 1.97 | 5.67 | 5.97 |
| Diluted | 2.07 | 1.92 | 5.61 | 5.82 |
| Cash Dividends Paid Per Common Share | 0.57 | 0.42 | 1.71 | 1.26 |
| Statement Of Financial Position Classified (USD $) | ||
| In Millions | Sep. 27, 2009
| Dec. 31, 2008
|
| Current Assets | ||
| Cash and Cash Equivalents | $2,709 | $2,168 |
| Receivables | 6,067 | 5,296 |
| Inventories | 2,079 | 1,902 |
| Deferred Income Taxes | 747 | 755 |
| Other Current Assets | 841 | 562 |
| Total Current Assets | 12,443 | 10,683 |
| Property, Plant and Equipment, Net | 4,430 | 4,488 |
| Goodwill | 9,944 | 9,526 |
| Purchased Intangibles, Net | 338 | 355 |
| Prepaid Pension Asset | 135 | 122 |
| Deferred Income Taxes | 4,596 | 4,651 |
| Other Assets | 3,856 | 3,614 |
| Assets, Total | 35,742 | 33,439 |
| Current Liabilities | ||
| Accounts Payable | 2,245 | 2,030 |
| Customer Advances and Amounts in Excess of Costs Incurred | 4,934 | 4,535 |
| Salaries, Benefits and Payroll Taxes | 1,785 | 1,684 |
| Current Maturities of Long-term Debt | 242 | 242 |
| Other Current Liabilities | 2,377 | 2,051 |
| Total Current Liabilities | 11,583 | 10,542 |
| Long-term Debt, Net | 3,563 | 3,563 |
| Accrued Pension Liabilities | 12,793 | 12,004 |
| Other Postretirement Benefit Liabilities | 1,469 | 1,386 |
| Other Liabilities | 3,194 | 3,079 |
| Total Liabilities | 32,602 | 30,574 |
| Stockholders' Equity | ||
| Common Stock, $1 Par Value Per Share | 378 | 393 |
| Additional Paid-in Capital | 0 | 0 |
| Retained Earnings | 11,881 | 11,621 |
| Accumulated Other Comprehensive Loss | (9,119) | (9,149) |
| Total Stockholders' Equity | 3,140 | 2,865 |
| Liabilities and Stockholders' Equity, Total | $35,742 | $33,439 |
| Statement Of Financial Position Classified (Parenthetical) (USD $) | ||
| Sep. 27, 2009
| Dec. 31, 2008
| |
| Common Stock, Par Value | $1 | $1 |
| Statement Of Cash Flows Indirect (USD $) | ||
| In Millions | 9 Months Ended
Sep. 27, 2009 | 9 Months Ended
Sep. 28, 2008 |
| Operating Activities | ||
| Net earnings | $2,197 | $2,394 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation and amortization of plant and equipment | 544 | 522 |
| Amortization of purchased intangibles | 81 | 90 |
| Stock-based compensation | 112 | 115 |
| Excess tax benefits on stock compensation | (16) | (90) |
| Changes in operating assets and liabilities: | ||
| Receivables | (720) | (426) |
| Inventories | (107) | (18) |
| Accounts payable | 189 | (141) |
| Customer advances and amounts in excess of costs incurred | 350 | 91 |
| Other | 1,148 | 887 |
| Net cash provided by operating activities | 3,778 | 3,424 |
| Investing Activities | ||
| Expenditures for property, plant and equipment | (481) | (503) |
| Net proceeds from (payments for) short-term investment transactions | (389) | 262 |
| Acquisitions of businesses / investments in affiliates | (420) | (195) |
| Other | 11 | (27) |
| Net cash used for investing activities | (1,279) | (463) |
| Financing Activities | ||
| Repurchases of common stock | (1,362) | (2,338) |
| Issuances of common stock and related amounts | 32 | 242 |
| Excess tax benefits on stock compensation | 16 | 90 |
| Common stock dividends | (668) | (510) |
| Issuance of long-term debt and related costs | 0 | 491 |
| Repayments of long-term debt | 0 | (1,103) |
| Net cash used for financing activities | (1,982) | (3,128) |
| Effect of exchange rate changes on cash and cash equivalents | 24 | (18) |
| Net increase (decrease) in cash and cash equivalents | 541 | (185) |
| Cash and cash equivalents at beginning of period | 2,168 | 2,648 |
| Cash and cash equivalents at end of period | $2,709 | $2,463 |
| NOTE 1 - BASIS OF PRESENTATION | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 1 - BASIS OF PRESENTATION | NOTE 1 BASIS OF PRESENTATION We have prepared the unaudited condensed consolidated financial statements in this Form 10-Q in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. We have continued to follow the accounting policies disclosed in the consolidated financial statements included in our 2008 Form 10-K filed with the United States Securities and Exchange Commission (SEC). It is our practice to close our books and records on the Sunday prior to the end of the calendar quarter to align our financial closing with our business processes. The interim financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods, as our fiscal year ends on December31. The interim financial information in this Form 10-Q reflects all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of our results of operations for the interim periods. The results of operations for the nine months ended September27, 2009 are not necessarily indicative of results to be expected for the full year. We have reclassified certain amounts for the prior period to conform to the 2009 presentation. For the nine months ended September28, 2008, we reclassified an $18 million reduction in cash from operating activities to Effect of exchange rate changes on cash and cash equivalents on our Statement of Cash Flows. The reclassification related to the effect of exchange rate changes on cash held in foreign currencies. We have evaluated subsequent events through the time of filing this Form 10-Q with the SEC on October22, 2009. No material subsequent events have occurred since September27, 2009 that required recognition or disclosure in these financial statements. |
| NOTE 2 - EARNINGS PER SHARE | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 2 - EARNINGS PER SHARE | NOTE 2 EARNINGS PER SHARE We compute basic and diluted per share amounts based on net earnings for the periods presented. We use the weighted average number of common shares outstanding during the period to calculate basic earnings per share. The weighted average number of common shares used in our calculation of diluted per share amounts includes the dilutive effects of stock options and restricted stock units based on the treasury stock method, and shares related to our convertible debentures discussed below. Unless otherwise noted, we present all per share amounts cited in these financial statements on a per diluted share basis. The calculations of basic and diluted earnings per share are as follows: Quarter Ended Nine Months Ended (In millions, except per share data) September27, 2009 September28, 2008 September27, 2009 September28, 2008 Net earnings for basic and diluted computations $ 797 $ 782 $ 2,197 $ 2,394 Weighted average common shares outstanding: Average number of common shares outstanding for basic computations 381.4 397.4 387.2 401.1 Dilutive stock options, restricted stock units and convertible securities 4.1 9.7 4.1 10.0 Average number of common shares outstanding for diluted computations 385.5 407.1 391.3 411.1 Earnings per common share Basic $ 2.09 $ 1.97 $ 5.67 $ 5.97 Diluted $ 2.07 $ 1.92 $ 5.61 $ 5.82 On June26, 2008, our Board of Directors authorized and we announced the planned redemption of any and all of our $1.0 billion in original principal amount of floating rate convertible debentures that remained outstanding on August15, 2008. In August 2008, all of the debentures were delivered for conversion or were redeemed (see Note 8 under the caption Long-term Debt). The accounting standard for earnings per share required an assumption that shares would be used to pay the conversion obligations in excess of the accreted principal amount and that those shares would be included in our calculation of weighted average common shares outstanding for the diluted earnings per share computation up to the date the convertible securities were converted. The number of shares included in the computation for the quarter and nine months ended September28, 2008 did not have a material impact on earnings per share. |
| NOTE 3 - INFORMATION ON BUSINESS SEGMENTS | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 3 - INFORMATION ON BUSINESS SEGMENTS | NOTE 3 INFORMATION ON BUSINESS SEGMENTS We operate in four principal business segments: Electronic Systems, Information Systems Global Services (ISGS), Aeronautics, and Space Systems. We organize our business segments based on the nature of the products and services offered. In the following table, total operating profit of the business segments is reconciled to the corresponding consolidated amount. The reconciling item Unallocated Corporate income (expense), net includes the FAS/CAS pension adjustment (see discussion below), costs for certain stock-based compensation programs (including stock-based compensation costs for stock options and restricted stock units), the effects of items not considered part of managements evaluation of segment operating performance, Corporate costs not allocated to the operating segments, and other miscellaneous Corporate activities. Since the activities of the investees in which certain business segments hold equity interests are closely aligned with the operations of those segments, the equity earnings (losses) from those investees are included in the operating profit of the respective segments. The FAS/CAS pension adjustment represents the difference between pension expense or income calculated for financial reporting purposes under GAAP, and pension costs calculated and funded in accordance with U.S. Government Cost Accounting Standards (CAS), which are reflected in our business segment results. CAS is a major factor in determining our pension funding requirements, and governs the extent to which pension costs can be allocated to and recovered on government contracts. The CAS expense is recovered through the pricing of our products and services on U.S. Government contracts and, therefore, recognized in segment net sales. The results of operations of our segments only include pension expense as determined and funded in accordance with CAS rules. Transactions between segments are negotiated and accounted for under terms and conditions similar to other government and commercial contracts; however, these intercompany transactions are eliminated in consolidation and for purposes of the presentation of net sales in the related table that follows. Selected Financial Data by Business Segment Quarter Ended Nine Months Ended (In millions) September27, 2009 September28, 2008 September 27, 2009 September28, 2008 Net sales Electronic Systems $ 2,922 $ 2,802 $ 8,911 $ 8,686 Information Systems Global Services 2,977 2,950 8,756 8,312 Aeronautics 3,084 2,917 8,951 8,608 Space Systems 2,073 1,908 6,047 5,993 Total $ 11,056 $ 10,577 $ 32,665 $ 31,599 Operating profit Electronic Systems $ 389 $ 364 $ 1,185 $ 1,139 Information Systems Global Services 244 267 734 769 Aeronautics 397 375 1,151 1,064 Space Systems 236 244 672 743 |
| NOTE 4 - INVENTORIES | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 4 - INVENTORIES | NOTE 4 INVENTORIES (In millions) September27, 2009 December31, 2008 Work-in-process, primarily related to long-term contracts and programs in progress $ 5,791 $ 4,631 Less: customer advances and progress payments (4,022 ) (3,396 ) 1,769 1,235 Other inventories 310 667 $ 2,079 $ 1,902 |
| NOTE 5 - POSTRETIREMENT BENEFIT PLANS | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 5 - POSTRETIREMENT BENEFIT PLANS | NOTE 5 POSTRETIREMENT BENEFIT PLANS The net pension cost and the net postretirement benefit cost related to our qualified defined benefit pension plans and our retiree medical and life insurance plans include the following components: Quarter Ended Nine Months Ended (In millions) September27, 2009 September28, 2008 September27, 2009 September28, 2008 Qualified defined benefit pension plans Service cost $ 217 $ 206 $ 652 $ 617 Interest cost 453 436 1,359 1,306 Expected return on plan assets (507 ) (546 ) (1,521 ) (1,637 ) Amortization of prior service cost 20 20 60 60 Recognized net actuarial losses 76 227 1 Total net pension expense $ 259 $ 116 $ 777 $ 347 Retiree medical and life insurance plans Service cost $ 8 $ 11 $ 26 $ 33 Interest cost 42 45 124 135 Expected return on plan assets (26 ) (38 ) (80 ) (115 ) Amortization of prior service cost (6 ) (7 ) (18 ) (19 ) Recognized net actuarial losses 10 32 1 Total net postretirement expense $ 28 $ 11 $ 84 $ 35 In 2008, we made discretionary prepayments totaling $109 million related to our qualified defined benefit pension plans and $120 million related to our retiree medical and life insurance plans. These prepayments reduced our funding requirements for 2009. We funded $2 million in discretionary contributions to our qualified defined benefit pension plans during the quarter and nine months ended September27, 2009. The remaining amount of required funding in 2009 is less than $5 million. We plan to review options for further discretionary contributions in 2009, and anticipate making a discretionary contribution of at least $1.0 billion to our defined benefit plans trust in the fourth quarter. |
| NOTE 6 - LEGAL PROCEEDINGS AND CONTINGENCIES | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 6 - LEGAL PROCEEDINGS AND CONTINGENCIES | NOTE 6 LEGAL PROCEEDINGS AND CONTINGENCIES We are a party to or have property subject to litigation and other proceedings, including matters arising under provisions relating to the protection of the environment. We believe the probability is remote that the outcome of these matters will have a material adverse effect on the Corporation as a whole. We cannot predict the outcome of legal proceedings with certainty. These matters include the following items which have been previously reported. Legal Proceedings On June24, 2009, the U.K. Ministry of Defence (MoD) sent us a letter declaring that we were in default on the Soothsayer contract under which we were providing electronic warfare equipment to the British military.The total value of the contract is UK 144million, of which UK 39million has been paid to date (representing approximately US $230 million and US $62 million, based on the exchange rate as of September27, 2009).The MoD has demanded repayment of amounts paid under the contract, liquidated damages of UK 2million (representing approximately US $3 million based on the exchange rate as of September27, 2009), interest on those amounts, and has reserved the right to collect any excess future re-procurement costs.We dispute the MoDs position and plan to proceed to alternative dispute resolution pursuant to the contract terms and to seek damages for wrongful termination of the contract (including costs incurred but not paid). On April24, 2009, we filed a declaratory judgment action against the N.Y. Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) asking the U.S. District Court for the Southern District of N.Y. to find that the MTA is in material breach of our agreement based on the MTAs failure to provide access to sites where work must be performed and the customer-furnished equipment necessary to complete the contract.The contract provides for the design and installation of an integrated electronic security system for the MTA and has a total value of $323 million, of which $241 million has been paid to date.The MTA filed an answer and counterclaim on May26, 2009, alleging that we breached the contract, and subsequently terminated the contract for alleged default.The MTA is seeking monetary damages and other relief under the contract, including the cost to complete the contract and potential re-procurement costs.We dispute the MTAs allegations and are defending against them.On July2, 2009, the sureties under the performance bond that we posted for the contract filed their own declaratory judgment action seeking to be excused from performing for the MTA (noting that they were unable to conclude that we were in material default under the contract) or, in the alternative, seeking indemnification from us.On July7, 2009, we filed an amended complaint against the MTA adding claims for wrongful termination and for breach of contract damages (including costs incurred but not paid). The MTA has filed an amended counterclaim. Discovery is proceeding in the action. On November30, 2007, the Department of Justice (DoJ) filed a complaint in partial intervention in a lawsuit filed unde |
| NOTE 7 - FAIR VALUE MEASUREMENTS | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 7 - FAIR VALUE MEASUREMENTS | NOTE 7 FAIR VALUE MEASUREMENTS The accounting standard for fair value measurements defines fair value, establishes a market-based framework or hierarchy for measuring fair value, and expands disclosures about fair value measurements. The standard is applicable whenever assets and liabilities are measured at fair value. The fair value hierarchy established in the standard prioritizes the inputs used in valuation techniques into three levels as follows: Level 1 Observable inputs quoted prices in active markets for identical assets and liabilities; Level 2 Observable inputs other than the quoted prices in active markets for identical assets and liabilities includes quoted prices for similar instruments, quoted prices for identical or similar instruments in inactive markets, and amounts derived from valuation models where all significant inputs are observable in active markets; and Level 3 Unobservable inputs includes amounts derived from valuation models where one or more significant inputs are unobservable and require us to develop relevant assumptions. At September27, 2009, we have no assets or liabilities that are categorized as Level 3. During 2009, we had no assets or liabilities that were transferred in or out of the Level 3 category. The following table presents assets and liabilities measured and recorded at fair value on our Balance Sheet on a recurring basis and their level within the fair value hierarchy as of September27, 2009: (In millions) Level1 Level2 Balance as of September27, 2009 Assets Equity securities(a) $ 260 $ $ 260 Mutual funds(a) 53 53 U.S. Government securities(b) 499 499 Corporate debt securities(b) 94 94 U.S. Government-sponsored enterprise securities(b) 61 61 Other securities(b) 36 36 Derivative assets(c) 36 36 Total assets $ 313 $ 726 $ 1,039 Derivative liabilities(c) 21 21 Net assets $ 313 $ 705 $ 1,018 (a) Equity securities and interests in mutual funds are valued using quoted market prices. (b) U.S. Government securities, corporate debt securities, U.S. Government-sponsored enterprise securities, and other securities are valued based on inputs other than quoted prices that are observable for the asset (e.g., interest rates and yield curves observable at commonly quoted intervals). (c) Derivative assets and liabilities relate to foreign currency exchange contracts and are valued based on observable market prices, but are not exchanged in an active market. See Note 8 under the caption Derivative Financial Instruments for further information related to our derivative instruments. We maintain a Rabbi Trust which includes investments to fund certain of our non-qualified deferred compensation plans. Investments in the trust are classified as trading securities and, accordingly, changes in their fair values are recorded in other non-operating income (expense), net. As of |
| NOTE 8 - OTHER | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| NOTE 8 - OTHER | NOTE 8 OTHER Matters Included in Earnings In the third quarter of 2009, the IRS examination of our U.S. Federal Income Tax Returns for the years 2005-2007 was resolved and settled. As a result, we recognized additional tax benefits and reduced our income tax expense for the third quarter by $58 million ($0.15 per share), including related interest. This reduction in income tax expense reduced our effective income tax rate by 5.4% and 1.9% for the quarter and nine months ended September27, 2009. In the third quarter of 2008, we recognized, net of state income taxes, a gain of $44 million in other income (expense), net representing a portion of the deferred net gain recorded in connection with the transaction to sell our ownership interests in Lockheed Khrunichev Energia International, Inc. (LKEI) and International Launch Services, Inc. (ILS) in 2006. The gain increased net earnings by $28 million ($0.07 per share). In the first quarter of 2008, we recognized, net of state income taxes, $16 million of the deferred net gain from the LKEI and ILS transaction, which increased net earnings by $10 million ($0.02 per share). In the second quarter of 2008, we recognized, net of state income taxes, $85 million in other income (expense), net due to the elimination of reserves related to various land sales in California. Reserves were originally recorded at the time of each land sale in 2007 and prior years based on the U.S. Governments assertion that a significant portion of the sale proceeds should be allocated to the buildings and improvements on the properties, thereby giving the U.S. Government the right to share in the gains associated with the land sales. At the time the land sales occurred, we believed the value of the properties sold was attributable to the land versus the buildings and improvements. The dispute ultimately went to trial with the Armed Services Board of Contract Appeals (ASBCA), subsequent to which the ASBCA determined that our accounting for the land sales was in accordance with the Federal Acquisition Regulation and CAS. We reached a settlement with the U.S. Government in the second quarter of 2008, and the previously recorded reserves were no longer required. Resolution of this matter increased our net earnings in the second quarter by $56 million ($0.14 per share). Long-term Debt On June26, 2008, our Board of Directors authorized and we announced the planned redemption of any and all of our $1.0 billion in original principal amount of floating rate convertible debentures that remained outstanding on August15, 2008. As of August15, 2008, all of the debentures had been delivered for conversion or were redeemed. The aggregate amount paid in cash subsequent to conversion of the debentures was $1.0 billion, representing the principal amount of the debentures relative to our conversion obligations, which was equal to the original principal amount of the debentures. In addition, the conversion rate for the debentures from the time of our announcement in June 2008 through August15, 2008 was 13.7998 shares of common stock for each $1,000 in original principal amount of debentures, equating to a conversion price of $ |
| Document Information | |
| 9 Months Ended
Sep. 27, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-09-27 |
| Entity Information (USD $) | |
| 9 Months Ended
Sep. 27, 2009 | |
| Entity [Text Block] | |
| Trading Symbol | LMT |
| Entity Registrant Name | LOCKHEED MARTIN CORP |
| Entity Central Index Key | 0000936468 |
| Current Fiscal Year End Date | --12-31 |
| Entity Filer Category | Large Accelerated Filer |
| Entity Common Stock, Shares Outstanding | 380,782,678 |
