Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 29, 2013 | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 29-Sep-13 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | LMT |
Entity Registrant Name | LOCKHEED MARTIN CORP |
Entity Central Index Key | 936468 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 320,307,248 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 3 Months Ended | 9 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |||
Net sales | |||||||
Products | $8,859 | $9,495 | $26,570 | $28,186 | |||
Services | 2,488 | 2,374 | 7,255 | 6,897 | |||
Total net sales | 11,347 | 11,869 | 33,825 | 35,083 | |||
Cost of sales | |||||||
Products | -7,759 | -8,413 | -23,245 | -24,844 | |||
Services | -2,202 | -2,154 | -6,473 | -6,186 | |||
Severance charges | -23 | [1] | -30 | [1] | -23 | [1] | |
Other unallocated costs | -202 | -259 | -628 | -829 | |||
Total cost of sales | -10,163 | -10,849 | -30,376 | -31,882 | |||
Gross profit | 1,184 | 1,020 | 3,449 | 3,201 | |||
Other income, net | 70 | 117 | 222 | 172 | |||
Operating profit | 1,254 | 1,137 | 3,671 | 3,373 | |||
Interest expense | -84 | -97 | -264 | -289 | |||
Other non-operating income, net | 3 | 6 | 2 | 30 | |||
Earnings from continuing operations before income taxes | 1,173 | 1,046 | 3,409 | 3,114 | |||
Income tax expense | -331 | -319 | -947 | -938 | |||
Net earnings from continuing operations | 842 | 727 | 2,462 | 2,176 | |||
Net earnings from discontinued operations | 31 | 31 | |||||
Net earnings | $873 | $727 | $2,493 | $2,176 | |||
Basic | |||||||
Continuing operations, in USD per common share | $2.62 | $2.25 | $7.66 | $6.72 | |||
Discontinued operations, in USD per common share | $0.10 | $0.10 | |||||
Basic earnings per common share in USD | $2.72 | $2.25 | $7.76 | $6.72 | |||
Diluted | |||||||
Continuing operations, in USD per common share | $2.57 | $2.21 | $7.54 | $6.62 | |||
Discontinued operations, in USD per common share | $0.09 | $0.09 | |||||
Diluted earnings per common share in USD | $2.66 | $2.21 | $7.63 | $6.62 | |||
Cash dividends paid per common share | $1.15 | $1 | $3.45 | $3 | |||
[1] | Severance charges during the nine months ended September 29, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment during the quarter ended March 31, 2013. Severance charges during the quarter and nine months ended September 30, 2012 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our former Electronic Systems business segment (Note 8, under the caption "Severance Activities"). Severance charges for initiatives that are not significant are included in business segment operating profit. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net earnings | $873 | $727 | $2,493 | $2,176 |
Other comprehensive income, net of tax | ||||
Recognition of previously deferred postretirement benefit plan amounts | 254 | 249 | 761 | 655 |
Other, net | 52 | 33 | -3 | 20 |
Other comprehensive income, net of tax | 306 | 282 | 758 | 675 |
Comprehensive income | $1,179 | $1,009 | $3,251 | $2,851 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $2,661 | $1,898 |
Receivables, net | 6,919 | 6,563 |
Inventories, net | 2,920 | 2,937 |
Deferred income taxes | 1,167 | 1,269 |
Other current assets | 452 | 1,188 |
Total current assets | 14,119 | 13,855 |
Property, plant, and equipment, net | 4,598 | 4,675 |
Goodwill | 10,534 | 10,370 |
Deferred income taxes | 4,657 | 4,809 |
Other noncurrent assets | 4,999 | 4,948 |
Total assets | 38,907 | 38,657 |
Current liabilities | ||
Accounts payable | 1,928 | 2,038 |
Customer advances and amounts in excess of costs incurred | 6,350 | 6,503 |
Salaries, benefits, and payroll taxes | 1,737 | 1,649 |
Current portion of long-term debt | 150 | |
Other current liabilities | 2,278 | 1,815 |
Total current liabilities | 12,293 | 12,155 |
Accrued pension liabilities | 14,135 | 15,278 |
Other postretirement benefit liabilities | 1,219 | 1,220 |
Long-term debt, net | 6,156 | 6,158 |
Other noncurrent liabilities | 3,827 | 3,807 |
Total liabilities | 37,630 | 38,618 |
Stockholders' equity | ||
Common stock, $1 par value per share | 318 | 321 |
Additional paid-in capital | ||
Retained earnings | 13,694 | 13,211 |
Accumulated other comprehensive loss | -12,735 | -13,493 |
Total stockholders' equity | 1,277 | 39 |
Total liabilities and stockholders' equity | $38,907 | $38,657 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
Common stock, par value (in USD per share) | $1 | $1 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | ||
Operating activities | ||||
Net earnings | $2,493 | $2,176 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 704 | 711 | ||
Stock-based compensation | 150 | 129 | ||
Severance charges | 30 | [1] | 23 | [1] |
Changes in operating assets and liabilities: | ||||
Receivables, net | -310 | -365 | ||
Inventories, net | 18 | -387 | ||
Accounts payable | -119 | -86 | ||
Customer advances and amounts in excess of costs incurred | -157 | -3 | ||
Postretirement benefit plans | -20 | 329 | ||
Income taxes | 690 | 48 | ||
Other, net | 129 | 301 | ||
Net cash provided by operating activities | 3,608 | 2,876 | ||
Investing activities | ||||
Capital expenditures | -491 | -514 | ||
Acquisitions of businesses and investments in affiliates | -266 | -29 | ||
Other, net | -27 | 16 | ||
Net cash used for investing activities | -784 | -527 | ||
Financing activities | ||||
Repurchases of common stock | -1,533 | -708 | ||
Proceeds from stock option exercises | 749 | 337 | ||
Dividends paid | -1,112 | -979 | ||
Repayments of long-term debt | -150 | |||
Other, net | -15 | 71 | ||
Net cash used for financing activities | -2,061 | -1,279 | ||
Net change in cash and cash equivalents | 763 | 1,070 | ||
Cash and cash equivalents at beginning of period | 1,898 | 3,582 | ||
Cash and cash equivalents at end of period | $2,661 | $4,652 | ||
[1] | Severance charges during the nine months ended September 29, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment during the quarter ended March 31, 2013. Severance charges during the quarter and nine months ended September 30, 2012 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our former Electronic Systems business segment (Note 8, under the caption "Severance Activities"). Severance charges for initiatives that are not significant are included in business segment operating profit. |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
In Millions | |||||
Beginning Balance at Dec. 31, 2011 | $1,001 | $321 | $11,937 | ($11,257) | |
Net earnings | 2,176 | 2,176 | |||
Other comprehensive income, net of tax | 675 | 675 | |||
Repurchases of common stock | -722 | -8 | -669 | -45 | |
Dividends declared | -1,365 | -1,365 | |||
Stock-based awards and ESOP activity | 677 | 8 | 669 | ||
Ending Balance at Sep. 30, 2012 | 2,442 | 321 | 12,703 | -10,582 | |
Beginning Balance at Dec. 31, 2012 | 39 | 321 | 13,211 | -13,493 | |
Net earnings | 2,493 | 2,493 | |||
Other comprehensive income, net of tax | 758 | 758 | |||
Repurchases of common stock | -1,563 | -15 | -1,097 | -451 | |
Dividends declared | -1,559 | -1,559 | |||
Stock-based awards and ESOP activity | 1,109 | 12 | 1,097 | ||
Ending Balance at Sep. 29, 2013 | $1,277 | $318 | $13,694 | ($12,735) |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 29, 2013 | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION |
We prepared these consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. We followed the accounting policies disclosed in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Form 10-K) filed with the SEC. | |
In the opinion of management, these consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations, financial condition, and cash flows for the interim periods presented. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates. Significant estimates inherent in the preparation of our consolidated financial statements include, but are not limited to, sales and cost recognition, postretirement benefit plans, environmental receivables and liabilities, evaluation of goodwill and other assets for impairment, income taxes including deferred tax assets, fair value measurements, and contingencies. The consolidated financial statements include the accounts of subsidiaries we control and variable interest entities if we are the primary beneficiary. We eliminate intercompany balances and transactions in consolidation. We have reclassified certain amounts in prior periods to conform to the current year presentation. | |
We close our books and records on the last Sunday of the calendar quarter to align our financial closing with our business processes, which was on September 29 for the third quarter of 2013 and September 30 for the third quarter of 2012. The consolidated 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 December 31. | |
The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the full year or future periods. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2012 Form 10-K. |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
EARNINGS PER COMMON SHARE | NOTE 2 – EARNINGS PER COMMON SHARE | ||||||||||||||||
The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions): | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares outstanding for basic computations | 321.3 | 323.5 | 321.3 | 324.0 | |||||||||||||
Weighted average dilutive effect of equity awards | 6.2 | 4.8 | 5.3 | 4.6 | |||||||||||||
Weighted average common shares outstanding for diluted computations | 327.5 | 328.3 | 326.6 | 328.6 | |||||||||||||
We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed exercise of outstanding stock options and vesting of outstanding restricted stock units based on the treasury stock method. | |||||||||||||||||
The computation of diluted earnings per common share excluded 3.2 million stock options for the nine months ended September 29, 2013 and 6.5 million and 8.6 million stock options for the quarter and nine months ended September 30, 2012 because their inclusion would have been anti-dilutive, primarily due to their exercise prices exceeding the average market prices of our common stock during the respective periods. There were no anti-dilutive stock options for the quarter ended September 29, 2013. |
BUSINESS_SEGMENT_INFORMATION
BUSINESS SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
BUSINESS SEGMENT INFORMATION | NOTE 3 – BUSINESS SEGMENT INFORMATION | ||||||||||||||||
We operate in five business segments: Aeronautics, Information Systems & Global Solutions (IS&GS), Missiles and Fire Control, Mission Systems and Training, and Space Systems. We organize our business segments based on the nature of the products and services offered. | |||||||||||||||||
Net sales of our business segments exclude intersegment sales, as these activities are eliminated in consolidation. Intercompany transactions are generally negotiated under terms and conditions that share many similar characteristics (e.g., contract structures, funding profiles, target cost values, contract progress reports) with our third-party contracts, primarily with the U.S. Government. | |||||||||||||||||
Operating profit of our business segments includes our share of earnings or losses from equity method investees because the operating activities of the equity method investees are closely aligned with the operations of those business segments. Operating profit of our business segments excludes the non-cash FAS/CAS pension adjustment described below; expense for stock-based compensation; the effects of items not considered part of management’s evaluation of segment operating performance, such as charges related to significant severance actions (Note 8, under the caption “Severance Activities”); gains or losses from divestitures; the effects of certain legal settlements; corporate costs not allocated to our business segments; and other miscellaneous corporate activities. These items are included in the reconciling item “Unallocated expenses, net” between operating profit from our business segments and our consolidated operating profit. | |||||||||||||||||
The results of operations of our business segments include pension expense only as determined and funded in accordance with U.S. Government Cost Accounting Standards (CAS). The non-cash FAS/CAS pension adjustment represents the difference between pension expense calculated in accordance with GAAP and pension costs calculated and funded in accordance with CAS. CAS governs the extent to which pension costs can be allocated to and recovered on U.S. Government contracts. The CAS expense is recovered through the pricing of our products and services on U.S. Government contracts and, therefore, is recognized in each of our business segments’ net sales and cost of sales. | |||||||||||||||||
Summary operating results for each of our business segments were as follows (in millions): | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales | |||||||||||||||||
Aeronautics | $ | 3,632 | $ | 3,698 | $ | 10,225 | $ | 10,812 | |||||||||
Information Systems & Global Solutions | 2,059 | 2,292 | 6,266 | 6,645 | |||||||||||||
Missiles and Fire Control | 2,003 | 1,951 | 6,034 | 5,560 | |||||||||||||
Mission Systems and Training | 1,698 | 1,862 | 5,298 | 5,719 | |||||||||||||
Space Systems | 1,955 | 2,066 | 6,002 | 6,347 | |||||||||||||
Total net sales | $ | 11,347 | $ | 11,869 | $ | 33,825 | $ | 35,083 | |||||||||
Operating profit | |||||||||||||||||
Aeronautics | $ | 412 | $ | 415 | $ | 1,198 | $ | 1,254 | |||||||||
Information Systems & Global Solutions | 187 | 209 | 570 | 605 | |||||||||||||
Missiles and Fire Control | 356 | 300 | 1,081 | 984 | |||||||||||||
Mission Systems and Training | 216 | 198 | 692 | 550 | |||||||||||||
Space Systems | 284 | 312 | 790 | 851 | |||||||||||||
Total business segment operating profit | 1,455 | 1,434 | 4,331 | 4,244 | |||||||||||||
Unallocated expenses, net | |||||||||||||||||
Severance charges (a) | — | (23) | (30) | (23) | |||||||||||||
Other unallocated expenses, net (b) | (201) | (274) | (630) | (848) | |||||||||||||
Total consolidated operating profit | $ | 1,254 | $ | 1,137 | $ | 3,671 | $ | 3,373 | |||||||||
Intersegment sales | |||||||||||||||||
Aeronautics | $ | 53 | $ | 55 | $ | 152 | $ | 145 | |||||||||
Information Systems & Global Solutions | 160 | 231 | 523 | 659 | |||||||||||||
Missiles and Fire Control | 72 | 70 | 196 | 225 | |||||||||||||
Mission Systems and Training | 249 | 230 | 728 | 667 | |||||||||||||
Space Systems | 25 | 32 | 74 | 84 | |||||||||||||
Total intersegment sales | $ | 559 | $ | 618 | $ | 1,673 | $ | 1,780 | |||||||||
(a) | Severance charges during the nine months ended September 29, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment during the quarter ended March 31, 2013. Severance charges during the quarter and nine months ended September 30, 2012 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our former Electronic Systems business segment (Note 8, under the caption “Severance Activities”). Severance charges for initiatives that are not significant are included in business segment operating profit. | ||||||||||||||||
(b) | Other unallocated expenses, net for the quarter and nine months ended September 30, 2012 includes amounts related to discontinued operations that are not significant. | ||||||||||||||||
Total assets for each of our business segments were as follows (in millions): | |||||||||||||||||
September 29, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets | |||||||||||||||||
Aeronautics | $ 6,556 | $ 6,525 | |||||||||||||||
Information Systems & Global Solutions | 5,811 | 5,664 | |||||||||||||||
Missiles and Fire Control | 4,259 | 4,186 | |||||||||||||||
Mission Systems and Training | 6,724 | 6,589 | |||||||||||||||
Space Systems | 3,465 | 3,478 | |||||||||||||||
Total business segment assets | 26,815 | 26,442 | |||||||||||||||
Corporate assets (a) | 12,092 | 12,215 | |||||||||||||||
Total assets | $ 38,907 | $ 38,657 | |||||||||||||||
(a) | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust. | ||||||||||||||||
Our Aeronautics business segment includes our largest program, the F-35 Lightning II Joint Strike Fighter, an international multi-role, stealth fighter aircraft. Net sales for the F-35 program represented approximately 16% and 15% of our total consolidated net sales for the quarter and nine months ended September 29, 2013 and 15% and 14% for the quarter and nine months ended September 30, 2012. |
INVENTORIES_NET
INVENTORIES, NET | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
INVENTORIES, NET | NOTE 4 – INVENTORIES, NET | ||||||||
Inventories, net consisted of the following (in millions): | |||||||||
September 29, | December 31, | ||||||||
2013 | 2012 | ||||||||
Work-in-process, primarily related to long-term contracts and programs in progress | $ 7,186 | $ 7,000 | |||||||
Less: customer advances and progress payments | (4,876) | (4,932) | |||||||
2,310 | 2,068 | ||||||||
Other inventories | 610 | 869 | |||||||
Total inventories, net | $ 2,920 | $ 2,937 | |||||||
POSTRETIREMENT_BENEFIT_PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
POSTRETIREMENT BENEFIT PLANS | NOTE 5 – POSTRETIREMENT BENEFIT PLANS | ||||||||||||||||
The components of our pretax net periodic benefit costs for our significant qualified defined benefit pension plans and retiree medical and life insurance plans were as follows (in millions): | |||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Qualified defined benefit pension plans | |||||||||||||||||
Service cost | $ 286 | $ 264 | $ 857 | $ 791 | |||||||||||||
Interest cost | 450 | 471 | 1,350 | 1,413 | |||||||||||||
Expected return on plan assets | (621) | (547) | (1,864) | (1,640) | |||||||||||||
Recognized net actuarial losses | 352 | 279 | 1,058 | 837 | |||||||||||||
Amortization of prior service cost | 20 | 18 | 60 | 55 | |||||||||||||
Total net periodic benefit cost | $ 487 | $ 485 | $ 1,461 | $ 1,456 | |||||||||||||
Retiree medical and life insurance plans | |||||||||||||||||
Service cost | $ 7 | $ 7 | $ 21 | $ 21 | |||||||||||||
Interest cost | 29 | 33 | 87 | 99 | |||||||||||||
Expected return on plan assets | (36) | (33) | (109) | (99) | |||||||||||||
Recognized net actuarial losses | 11 | 8 | 33 | 24 | |||||||||||||
Amortization of prior service credit | (4) | (3) | (13) | (9) | |||||||||||||
Total net periodic benefit cost | $ 7 | $ 12 | $ 19 | $ 36 | |||||||||||||
The recognized net actuarial losses and the amortization of prior service cost (credit) in the table above, as well as similar costs related to our other postretirement benefit plans, reflect costs that were recorded as a component of net periodic benefit cost for the period. These costs totaled $254 million (net of $138 million of tax expense) and $761 million (net of $417 million of tax expense) for the quarter and nine months ended September 29, 2013, and $249 million (net of $136 million of tax expense) and $655 million (net of $358 million of tax expense) for the quarter and nine months ended September 30, 2012, which are recorded on our Statements of Comprehensive Income as an increase to comprehensive income. | |||||||||||||||||
We determine funding requirements for our defined benefit pension plans in a manner consistent with CAS and the Employee Retirement Income Security Act of 1974 (ERISA), as amended by the Pension Protection Act of 2006. During the quarter and nine months ended September 29, 2013, we made $750 million and $1.5 billion in contributions to our qualified defined benefit pension plans, which completes our planned funding for 2013. During the quarter and nine months ended September 29, 2013, there were no contributions to our retiree medical and life insurance plans, and no contributions are required in 2013. Consistent with prior years, we may review options for further contributions to the plans in the remainder of 2013. |
LEGAL_PROCEEDINGS_AND_CONTINGE
LEGAL PROCEEDINGS AND CONTINGENCIES | 9 Months Ended |
Sep. 29, 2013 | |
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, and are subject to contingencies related to certain businesses we previously owned. We believe the probability is remote that the outcome of each of these matters, including the legal proceedings discussed below, will have a material adverse effect on the Corporation as a whole, notwithstanding that the unfavorable resolution of any matter may have a material effect on our net earnings in any particular interim reporting period. Among the factors that we consider in this assessment are the nature of existing legal proceedings and claims, the asserted or possible damages or loss contingency (if estimable), the progress of the case, existing law and precedent, the opinions or views of legal counsel and other advisers, our experience in similar cases and the experience of other companies, the facts available to us at the time of assessment, and how we intend to respond to the proceeding or claim. Our assessment of these factors may change over time as individual proceedings or claims progress. | |
Although we cannot predict the outcome of legal proceedings with certainty, GAAP requires us to disclose an estimate of the reasonably possible loss or range of loss or make a statement that such an estimate cannot be made for contingencies where there is at least a reasonable possibility that a loss may have been incurred. We have a thorough process to determine an estimate of the reasonably possible loss or range of loss before we conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below in our discussion of legal proceedings, a reasonably possible loss or range of loss associated with any individual legal proceeding cannot be estimated. | |
Legal Proceedings | |
On April 24, 2009, we filed a declaratory judgment action against the New York Metropolitan Transportation Authority and its Capital Construction Company (collectively, the MTA) asking the U.S. District Court for the Southern District of New York to find that the MTA is in material breach of our agreement based on the MTA’s failure to provide access to sites where work must be performed and customer-furnished equipment necessary to complete the contract. The MTA filed an answer and counterclaim alleging that we breached the contract, and subsequently terminated the contract for alleged default. The primary damages sought by the MTA are the cost to complete the contract and potential re-procurement costs. While we are unable to estimate the cost of another contractor to complete the contract and the costs of re-procurement, we note that our contract with the MTA had a total value of $323 million, of which $241 million was paid to us. We dispute the MTA’s allegations and are defending against them. Additionally, following an investigation, our sureties on a performance bond related to this matter, who were represented by independent counsel, concluded that the MTA’s termination of the contract was improper. Finally, our declaratory judgment action was later amended to include claims for monetary damages against the MTA. | |
On August 28, 2003, the U.S. Department of Justice (DOJ) filed complaints in partial intervention in two lawsuits filed under the qui tam provisions of the Civil False Claims Act in the U.S. District Court for the Western District of Kentucky, United States ex rel. Natural Resources Defense Council, et al., v. Lockheed Martin Corporation, et al., and United States ex rel. John D. Tillson v. Lockheed Martin Energy Systems, Inc., et al. The DOJ alleges that we committed violations of the Resource Conservation and Recovery Act at the Paducah Gaseous Diffusion Plant by not properly handling, storing, and transporting hazardous waste and that we violated the False Claims Act by misleading Department of Energy officials and state regulators about the nature and extent of environmental noncompliance at the plant. The complaint does not allege a specific calculation of damages. On April 16, 2013, the parties attended a settlement conference ordered by the magistrate judge. The conference focused on the parties’ sharply differing views of the merits of the case and did not significantly contribute to our understanding of the damages sought. Accordingly, we cannot estimate the reasonably possible loss, or range of loss, which could be incurred if the plaintiffs were to prevail in the allegations, but believe that we have substantial defenses. We dispute the allegations and are defending against them. | |
Environmental Matters | |
We are involved in environmental proceedings and potential proceedings relating to soil and groundwater contamination, disposal of hazardous waste, and other environmental matters at several of our current or former facilities, or at third-party sites where we have been designated as a potentially responsible party (PRP). A substantial portion of environmental costs will be included in our net sales and cost of sales in future periods pursuant to U.S. Government regulations. At the time a liability is recorded for future environmental costs, we record a receivable for estimated future recovery considered probable through the pricing of products and services to agencies of the U.S. Government, regardless of the contract form (e.g., cost-reimbursable, fixed-price). We continuously evaluate the recoverability of our environmental receivables by assessing, among other factors, U.S. Government regulations, our U.S. Government business base and contract mix, and our history of receiving reimbursement of such costs. We include the portion of those environmental costs expected to be allocated to our non-U.S. Government contracts, or that is determined to be unallowable for pricing under U.S. Government contracts, in our cost of sales at the time the liability is established. | |
At September 29, 2013 and December 31, 2012, the aggregate amount of liabilities recorded relative to environmental matters was $982 million and $950 million, of which $888 million and $844 million is recorded in other noncurrent liabilities on our Balance Sheets at September 29, 2013 and December 31, 2012, with the remainder recorded in other current liabilities. We have recorded receivables totaling $849 million and $821 million at September 29, 2013 and December 31, 2012, for the estimated future recovery of these costs, as we consider the recovery probable based on the factors previously mentioned. Of those amounts, $765 million and $730 million are recorded in other noncurrent assets on our Balance Sheets at September 29, 2013 and December 31, 2012, with the remainder recorded in other current assets. We project costs and recovery of costs over approximately 20 years. | |
Environmental cleanup activities usually span several years, which make estimating liabilities a matter of judgment because of uncertainties with respect to assessing the extent of the contamination as well as such factors as changing remediation technologies and continually evolving regulatory environmental standards. There are a number of former operating facilities that we are monitoring or investigating for potential future remediation. We perform quarterly reviews of the status of our environmental remediation sites and the related liabilities and receivables. Additionally, in our quarterly reviews, we consider these and other factors in estimating the timing and amount of any future costs that may be required for remediation activities and record a liability when it is probable that a loss has occurred and the loss can be reasonably estimated. The amount of liability recorded is based on our estimate of the costs to be incurred for remediation at a particular site. We do not discount the recorded liabilities, as the amount and timing of future cash payments are not fixed or cannot be reliably determined. | |
We reasonably cannot determine the extent of our financial exposure in all cases as, although a loss may be probable or reasonably possible, in some cases it is not possible at this time to estimate the loss or reasonably possible loss or range of loss. We also are pursuing claims for recovery of costs incurred or contribution to site cleanup costs against other PRPs, including the U.S. Government. | |
California and the U.S. Environmental Protection Agency (U.S. EPA) are each evaluating the need to regulate hexavalent chromium in drinking water, distinct from the current standards which regulate total chromium. In 2011, California’s health risk agency announced a non-enforceable public health goal for hexavalent chromium which California’s regulatory agency must consider when promulgating an enforceable drinking water standard, which it is expected to do by late 2014. The goal calls for levels significantly below levels encompassed within the current total chromium standard. In August 2013, California’s regulatory agency proposed a draft drinking water standard for hexavalent chromium closer to levels encompassed within the current standard. We expect that environmental groups will continue to seek a standard closer to the non-enforceable public health goal and we cannot predict the outcome of California’s regulatory proceedings. In addition, California is also reevaluating its existing drinking water standard with respect to a second contaminant, perchlorate, and the U.S. EPA is also considering whether to regulate that contaminant in drinking water. With respect to either contaminant, if substantially lower standards are adopted, in either California or at the federal level, we expect a material increase in our estimates for environmental liabilities and the related assets for the portion of the increased costs that are probable of future recovery in the pricing of our products and services for the U.S. Government. The amount that would be allocable to our non-U.S. Government contracts or that is determined to be unallowable for pricing under U.S. Government contracts would be expensed, which may have a material effect on our earnings in any particular interim reporting period. | |
We are conducting remediation activities under various consent decrees and orders relating to soil, groundwater, sediment, or surface water contamination at certain sites of former or current operations. Under an agreement related to our Burbank and Glendale, California, sites, the U.S. Government reimburses us an amount equal to approximately 50% of expenditures for certain remediation activities in its capacity as a PRP under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). | |
Letters of Credit, Surety Bonds, and Third-Party Guarantees | |
We have entered into standby letters of credit, surety bonds, and third-party guarantees with financial institutions and other third parties primarily relating to advances received from customers and the guarantee of future performance on certain contracts. Letters of credit and surety bonds generally are available for draw down in the event we do not perform. In some cases, we may guarantee the contractual performance of third parties such as joint venture partners. We had total outstanding letters of credit, surety bonds, and third-party guarantees aggregating $2.4 billion and $2.2 billion at September 29, 2013 and December 31, 2012. | |
At September 29, 2013 and December 31, 2012, third-party guarantees totaled $763 million and $816 million, of which approximately 80% and 85% related to guarantees of contractual performance of joint ventures to which we currently are or previously were a party. This amount represents our estimate of the maximum amount we would expect to incur upon the contractual non-performance of the joint venture partners. In addition, we generally have cross-indemnities in place that may enable us to recover amounts that may be paid on behalf of a joint venture partner. We believe our current and former joint venture partners will be able to perform their obligations, as they have done through September 29, 2013, and that it will not be necessary to make payments under the guarantees. In determining our exposures, we evaluate the reputation, technical capabilities, and credit quality of our current and former joint venture partners. | |
United Launch Alliance | |
In connection with our 50% ownership interest of United Launch Alliance, L.L.C. (ULA), we and The Boeing Company (Boeing) have each received distributions totaling $527 million (since ULA’s formation in December 2006) which are subject to agreements between us, Boeing, and ULA, whereby, if ULA does not have sufficient cash resources or credit capacity to make required payments under the inventory supply agreement it has with Boeing, both we and Boeing would provide to ULA, in the form of an additional capital contribution, the level of funding required for ULA to make those payments. Any such capital contributions would not exceed the amount of the distributions subject to the agreements. Based on current expectations of ULA’s cash flow needs, we currently believe that ULA should have sufficient operating cash flows and credit capacity, including access to its $560 million revolving credit agreement from third-party financial institutions, to meet its obligations such that we would not be required to make a contribution under these agreements during the remainder of 2013. | |
In addition, both we and Boeing have cross-indemnified each other for guarantees by us and Boeing of the performance and financial obligations of ULA under certain launch service contracts. We believe ULA will be able to fully perform its obligations, as it has done through September 29, 2013, and that it will not be necessary to make payments under the cross-indemnities or guarantees. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 7 – FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||||
Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions): | |||||||||||||||||||||||||
September 29, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Equity securities | $ | 77 | $ | 77 | $ | — | $ | 75 | $ | 75 | $ | — | |||||||||||||
Mutual funds | 477 | 477 | — | 418 | 418 | — | |||||||||||||||||||
U.S. Government securities | 214 | — | 214 | 213 | — | 213 | |||||||||||||||||||
Other securities | 133 | — | 133 | 141 | — | 141 | |||||||||||||||||||
Derivatives | 38 | — | 38 | 39 | — | 39 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | 21 | — | 21 | 25 | — | 25 | |||||||||||||||||||
Substantially all assets measured at fair value, other than derivatives, represent investments classified as trading securities held in a separate trust to fund certain of our non-qualified deferred compensation plans and are recorded in other noncurrent assets on our Balance Sheets. The fair values of equity securities and mutual funds are determined by reference to the quoted market price per unit in active markets multiplied by the number of units held without consideration of transaction costs. The fair values of U.S. Government and other securities are determined using model-derived valuations in which all significant inputs are observable in active markets. The fair values of derivative instruments, which consist of foreign currency exchange forward and interest rate swap contracts, primarily are determined based on the present value of future cash flows using model-derived valuations that use observable inputs such as interest rates, credit spreads, and foreign currency exchange rates. We did not have any transfers of assets or liabilities between levels of the fair value hierarchy during the nine months ended September 29, 2013. | |||||||||||||||||||||||||
We use derivative instruments principally to reduce our exposure to market risks from changes in foreign currency exchange rates and interest rates. We do not enter into or hold derivative instruments for speculative trading purposes. We transact business globally and are subject to risks associated with changing foreign currency exchange rates. We enter into foreign currency hedges such as forward and option contracts that change in value as foreign currency exchange rates change. These contracts hedge forecasted foreign currency transactions in order to mitigate fluctuations in our earnings and cash flows associated with changes in foreign currency exchange rates. We designate foreign currency hedges as cash flow hedges. We also are exposed to the impact of interest rate changes primarily through our borrowing activities. For fixed rate borrowings, we may use variable interest rate swaps, effectively converting fixed rate borrowings to variable rate borrowings in order to reduce the amount of interest paid. These swaps are designated as fair value hedges. For variable rate borrowings, we may use fixed interest rate swaps, effectively converting variable rate borrowings to fixed rate borrowings in order to mitigate the impact of interest rate changes on earnings. These swaps are designated as cash flow hedges. We may also enter into derivative instruments that are not designated as hedges and do not qualify for hedge accounting, which are intended to mitigate certain economic exposures. | |||||||||||||||||||||||||
The aggregate notional amount of our outstanding foreign currency hedges at September 29, 2013 and December 31, 2012 was $1.1 billion and $1.3 billion. The aggregate notional amount of our outstanding interest rate swaps at September 29, 2013 and December 31, 2012 was $1.2 billion and $503 million. Derivative instruments did not have a material impact on net earnings and comprehensive income during the quarters and nine months ended September 29, 2013 and September 30, 2012. Substantially all of our derivatives are designated for hedge accounting. | |||||||||||||||||||||||||
In addition to the financial instruments listed in the table above, we hold other financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and debt. The carrying values for cash and cash equivalents, accounts receivable, and accounts payable approximated their fair values. The estimated fair value of our outstanding debt was $7.4 billion and $8.2 billion at September 29, 2013 and December 31, 2012, and the outstanding principal amount was $7.0 billion and $7.2 billion at September 29, 2013 and December 31, 2012, excluding unamortized discounts of $885 million and $892 million. The estimated fair values of our outstanding debt were determined based on quoted prices for similar instruments in active markets (Level 2). |
OTHER
OTHER | 9 Months Ended | ||||||||||||
Sep. 29, 2013 | |||||||||||||
OTHER | NOTE 8 – OTHER | ||||||||||||
Changes in Estimates | |||||||||||||
Accounting for contracts using the percentage-of-completion method requires judgment relative to assessing risks, estimating contract sales and costs (including estimating award and incentive fees and penalties related to performance), and making assumptions for schedule and technical issues. Due to the number of years it may take to complete many of our contracts and the scope and nature of the work required to be performed on those contracts, the estimation of total sales and costs at completion is complicated and subject to many variables. | |||||||||||||
Many of our contracts span several years and include highly complex technical requirements. At the outset of a contract, we identify and monitor risks to the achievement of the technical, schedule, and cost aspects of the contract, and assess the effects of those risks on our estimates of total costs to complete the contract. The estimates consider the technical requirements (e.g., a newly-developed product versus a mature product), the schedule and associated tasks (e.g., the number and type of milestone events), and costs (e.g., material, labor, subcontractor, and overhead). The initial profit booking rate of each contract considers risks surrounding the ability to achieve the technical requirements, schedule, and costs in the initial estimated costs at completion. Profit booking rates may increase during the performance of the contract if we successfully retire risks surrounding the technical, schedule, and cost aspects of the contract. Conversely, our profit booking rates may decrease if the estimated costs to complete the contract increase. All of the estimates are subject to change during the performance of the contract and may affect the profit booking rate. | |||||||||||||
In any particular period, due to the nature of inception-to-date adjustments and other changes in estimates that can occur, such as the resolution of contractual matters, reserves for disputes, asset impairments, and insurance recoveries, among others, the comparability of our sales, segment operating profit, and segment operating margins may be affected. Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, increased segment operating profit, net of state income taxes, by $510 million and $1.6 billion for the quarter and nine months ended September 29, 2013 and $430 million and $1.5 billion for the quarter and nine months ended September 30, 2012. These adjustments increased net earnings by $330 million ($1.01 per share) and $1.0 billion ($3.12 per share) for the quarter and nine months ended September 29, 2013 and $280 million ($.85 per share) and $980 million ($2.98 per share) for the quarter and nine months ended September 30, 2012. | |||||||||||||
Stockholders’ Equity | |||||||||||||
Repurchases of Common Stock | |||||||||||||
During the nine months ended September 29, 2013, we paid $1.5 billion to repurchase 14.5 million shares of our common stock. We reduced stockholders’ equity by $1.6 billion, which represents the 14.7 million shares of common stock repurchases we committed to during the nine months ended September 29, 2013, a portion of which settled in cash during the fourth quarter of 2013. | |||||||||||||
On September 26, 2013, our Board of Directors approved a $3.0 billion increase to our share repurchase program. We had total remaining authorization of $3.8 billion for future common share repurchases under our program as of September 29, 2013. As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital. If additional paid-in capital is reduced to zero, we record the remainder of the excess purchase price over par value as a reduction of retained earnings. | |||||||||||||
Restricted Stock Unit and Performance Stock Unit Grants | |||||||||||||
In January 2013, we granted certain employees 1.4 million restricted stock units (RSUs) with a grant-date fair value of $89.24 per RSU. The grant-date fair value of these RSUs is equal to the closing market price of our common stock on the date of grant less a discount to reflect the delay in payment of cash dividend-equivalents that are made only upon vesting. Substantially all of these RSUs vest at the end of three years from the date of grant. We recognize the grant-date fair value of these RSUs, less estimated forfeitures, as compensation expense ratably over the requisite service period, which is shorter than the vesting period if the employee is retirement eligible on the date of grant or will become retirement eligible before the end of the vesting period. | |||||||||||||
In January 2013, we also granted certain employees 0.3 million performance stock units (PSUs), which vest at the end of three years from the date of grant based on continuous service and whether we achieve certain financial and performance targets measured over the period from January 1, 2013 through December 31, 2015. About half of these awards were valued at $89.24 per PSU in a manner similar to the RSUs discussed above as the financial targets are based on our operations. We recognize the grant-date fair value of these PSUs, less estimated forfeitures, as compensation expense ratably over the vesting period based on the number of awards expected to vest at each reporting date and, therefore, the associated compensation expense recognized could vary from period to period. The remaining PSUs were valued at $61.13 per PSU using a Monte Carlo model as the performance target is related to total shareholder return relative to our peer group. We recognize the grant-date fair value of these awards, less estimated forfeitures, as compensation expense ratably over the vesting period regardless as to whether or not the performance target is achieved. | |||||||||||||
Dividends | |||||||||||||
We declared cash dividends totaling $434 million ($1.33 per share) and $1.6 billion ($4.78 per share) for the quarter and nine months ended September 29, 2013 and $706 million ($2.15 per share) and $1.4 billion ($4.15 per share) for the quarter and nine months ended September 30, 2012. Dividends declared for the quarter ended September 29, 2013 represent our 2013 fourth quarter dividend, a per share increase of 16% over our 2013 third quarter dividend of $1.15 per share which we declared in the second quarter of 2013. | |||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||
Changes in the balance of accumulated other comprehensive loss (AOCL), net of tax, consisted of the following (in millions): | |||||||||||||
Postretirement | Other, net | AOCL | |||||||||||
Benefit Plans | |||||||||||||
Balance at December 31, 2011 | $ | (11,186) | $ | (71) | $ | (11,257) | |||||||
Other comprehensive income before reclassifications | — | 15 | 15 | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 626 | — | 626 | ||||||||||
Prior service cost (a) | 29 | — | 29 | ||||||||||
Other | — | 5 | 5 | ||||||||||
Total reclassified from AOCL | 655 | 5 | 660 | ||||||||||
Total other comprehensive income | 655 | 20 | 675 | ||||||||||
Balance at September 30, 2012 | $ | (10,531) | $ | (51) | $ | (10,582) | |||||||
Balance at December 31, 2012 | $ | (13,532) | $ | 39 | $ | (13,493) | |||||||
Other comprehensive income before reclassifications | — | (1) | (1) | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 730 | — | 730 | ||||||||||
Prior service cost (a) | 31 | — | 31 | ||||||||||
Other | — | (2) | (2) | ||||||||||
Total reclassified from AOCL | 761 | (2) | 759 | ||||||||||
Total other comprehensive income | 761 | (3) | 758 | ||||||||||
Balance at September 29, 2013 | $ | (12,771) | $ | 36 | $ | (12,735) | |||||||
(a) | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). These amounts include the amortization of net actuarial losses of $243 million and $240 million for the quarters ended September 29, 2013 and September 30, 2012 and prior service cost of $11 million and $9 million for the quarters ended September 29, 2013 and September 30, 2012. | ||||||||||||
Income Taxes | |||||||||||||
Our effective income tax rates were 28.2% and 27.8% for the quarter and nine months ended September 29, 2013, and 30.5% and 30.1% for the quarter and nine months ended September 30, 2012. The rates for all periods benefited from tax deductions for U.S. manufacturing activities and tax deductions for dividends paid to our defined contribution plans with an employee stock ownership plan feature. | |||||||||||||
The effective tax rate for the quarter and nine months ended September 29, 2013 also benefited from U.S. research and development (R&D) tax credits. On January 2, 2013, the President signed into law the American Taxpayer Relief Act of 2012, which retroactively reinstated the R&D tax credit for two years, from January 1, 2012 through December 31, 2013. As the effects of tax law changes are recognized in the period in which new legislation is enacted, $37 million ($.11 per share) of tax benefit attributable to 2012 was recorded during the quarter ended March 31, 2013. In addition, comparable amounts of ongoing tax benefits from the R&D credit attributable to 2013 are being recognized ratably over each quarter of 2013. | |||||||||||||
We made net federal and foreign income tax payments of $387 million (net of a $550 million refund from the Internal Revenue Service primarily attributable to our tax-deductible pension contribution and debt exchange transaction during the fourth quarter of 2012) and $892 million during the nine months ended September 29, 2013 and September 30, 2012. | |||||||||||||
Discontinued Operations | |||||||||||||
Discontinued operations for the quarter and nine months ended September 29, 2013 include a benefit of $31 million resulting from the resolution of certain tax matters related to a business previously sold. | |||||||||||||
Severance Activities | |||||||||||||
During the nine months ended September 29, 2013, we recorded severance charges totaling $30 million, net of state tax benefits, which reduced our net earnings by $19 million ($.06 per share). These severance actions were recorded during the quarter ended March 31, 2013, and resulted from a strategic review of our IS&GS business segment to better align our cost structure with changing economic conditions and also reflect changes in program lifecycles. The charges consisted of severance costs associated with the elimination of certain positions through either voluntary or involuntary actions. Upon separation, terminated employees received lump-sum severance payments primarily based on years of service. During the nine months ended September 29, 2013, we paid all of the severance payments associated with these actions. | |||||||||||||
During the quarter and nine months ended September 30, 2012, we recorded severance charges totaling $23 million, net of state tax benefits, in connection with the reorganization of our former Electronic Systems business segment in 2012. The severance charge reduced our net earnings by $15 million ($.05 per share) and consisted of severance costs associated with the elimination of certain positions through either voluntary or involuntary actions. Upon separation, terminated employees received lump-sum severance payments primarily based on years of service. During the nine months ended September 29, 2013, we paid substantially all of the severance payments associated with these 2012 actions. | |||||||||||||
During the nine months ended September 29, 2013, we paid all of the severance payments associated with the elimination of certain positions at our Aeronautics business segment, for which we recorded charges in the fourth quarter of 2012 totaling $25 million. | |||||||||||||
Long-term Debt | |||||||||||||
In April 2013, we repaid $150 million of long-term notes with a fixed interest rate of 7.38% due to their scheduled maturities. |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share | The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions): | ||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted average common shares outstanding for basic computations | 321.3 | 323.5 | 321.3 | 324.0 | |||||||||||||
Weighted average dilutive effect of equity awards | 6.2 | 4.8 | 5.3 | 4.6 | |||||||||||||
Weighted average common shares outstanding for diluted computations | 327.5 | 328.3 | 326.6 | 328.6 | |||||||||||||
BUSINESS_SEGMENT_INFORMATION_T
BUSINESS SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Summary of Financial Information for Each Business Segment | Summary operating results for each of our business segments were as follows (in millions): | ||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net sales | |||||||||||||||||
Aeronautics | $ | 3,632 | $ | 3,698 | $ | 10,225 | $ | 10,812 | |||||||||
Information Systems & Global Solutions | 2,059 | 2,292 | 6,266 | 6,645 | |||||||||||||
Missiles and Fire Control | 2,003 | 1,951 | 6,034 | 5,560 | |||||||||||||
Mission Systems and Training | 1,698 | 1,862 | 5,298 | 5,719 | |||||||||||||
Space Systems | 1,955 | 2,066 | 6,002 | 6,347 | |||||||||||||
Total net sales | $ | 11,347 | $ | 11,869 | $ | 33,825 | $ | 35,083 | |||||||||
Operating profit | |||||||||||||||||
Aeronautics | $ | 412 | $ | 415 | $ | 1,198 | $ | 1,254 | |||||||||
Information Systems & Global Solutions | 187 | 209 | 570 | 605 | |||||||||||||
Missiles and Fire Control | 356 | 300 | 1,081 | 984 | |||||||||||||
Mission Systems and Training | 216 | 198 | 692 | 550 | |||||||||||||
Space Systems | 284 | 312 | 790 | 851 | |||||||||||||
Total business segment operating profit | 1,455 | 1,434 | 4,331 | 4,244 | |||||||||||||
Unallocated expenses, net | |||||||||||||||||
Severance charges (a) | — | (23) | (30) | (23) | |||||||||||||
Other unallocated expenses, net (b) | (201) | (274) | (630) | (848) | |||||||||||||
Total consolidated operating profit | $ | 1,254 | $ | 1,137 | $ | 3,671 | $ | 3,373 | |||||||||
Intersegment sales | |||||||||||||||||
Aeronautics | $ | 53 | $ | 55 | $ | 152 | $ | 145 | |||||||||
Information Systems & Global Solutions | 160 | 231 | 523 | 659 | |||||||||||||
Missiles and Fire Control | 72 | 70 | 196 | 225 | |||||||||||||
Mission Systems and Training | 249 | 230 | 728 | 667 | |||||||||||||
Space Systems | 25 | 32 | 74 | 84 | |||||||||||||
Total intersegment sales | $ | 559 | $ | 618 | $ | 1,673 | $ | 1,780 | |||||||||
(a) | Severance charges during the nine months ended September 29, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment during the quarter ended March 31, 2013. Severance charges during the quarter and nine months ended September 30, 2012 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our former Electronic Systems business segment (Note 8, under the caption “Severance Activities”). Severance charges for initiatives that are not significant are included in business segment operating profit. | ||||||||||||||||
(b) | Other unallocated expenses, net for the quarter and nine months ended September 30, 2012 includes amounts related to discontinued operations that are not significant. | ||||||||||||||||
Total assets for each of our business segments were as follows (in millions): | |||||||||||||||||
September 29, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Assets | |||||||||||||||||
Aeronautics | $ 6,556 | $ 6,525 | |||||||||||||||
Information Systems & Global Solutions | 5,811 | 5,664 | |||||||||||||||
Missiles and Fire Control | 4,259 | 4,186 | |||||||||||||||
Mission Systems and Training | 6,724 | 6,589 | |||||||||||||||
Space Systems | 3,465 | 3,478 | |||||||||||||||
Total business segment assets | 26,815 | 26,442 | |||||||||||||||
Corporate assets (a) | 12,092 | 12,215 | |||||||||||||||
Total assets | $ 38,907 | $ 38,657 | |||||||||||||||
(a) | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust. |
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Inventories | Inventories, net consisted of the following (in millions): | ||||||||
September 29, | December 31, | ||||||||
2013 | 2012 | ||||||||
Work-in-process, primarily related to long-term contracts and programs in progress | $ 7,186 | $ 7,000 | |||||||
Less: customer advances and progress payments | (4,876) | (4,932) | |||||||
2,310 | 2,068 | ||||||||
Other inventories | 610 | 869 | |||||||
Total inventories, net | $ 2,920 | $ 2,937 | |||||||
POSTRETIREMENT_BENEFIT_PLANS_T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Components of Pretax Net Periodic Benefit Costs | The components of our pretax net periodic benefit costs for our significant qualified defined benefit pension plans and retiree medical and life insurance plans were as follows (in millions): | ||||||||||||||||
Quarters Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Qualified defined benefit pension plans | |||||||||||||||||
Service cost | $ 286 | $ 264 | $ 857 | $ 791 | |||||||||||||
Interest cost | 450 | 471 | 1,350 | 1,413 | |||||||||||||
Expected return on plan assets | (621) | (547) | (1,864) | (1,640) | |||||||||||||
Recognized net actuarial losses | 352 | 279 | 1,058 | 837 | |||||||||||||
Amortization of prior service cost | 20 | 18 | 60 | 55 | |||||||||||||
Total net periodic benefit cost | $ 487 | $ 485 | $ 1,461 | $ 1,456 | |||||||||||||
Retiree medical and life insurance plans | |||||||||||||||||
Service cost | $ 7 | $ 7 | $ 21 | $ 21 | |||||||||||||
Interest cost | 29 | 33 | 87 | 99 | |||||||||||||
Expected return on plan assets | (36) | (33) | (109) | (99) | |||||||||||||
Recognized net actuarial losses | 11 | 8 | 33 | 24 | |||||||||||||
Amortization of prior service credit | (4) | (3) | (13) | (9) | |||||||||||||
Total net periodic benefit cost | $ 7 | $ 12 | $ 19 | $ 36 | |||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following (in millions): | ||||||||||||||||||||||||
September 29, 2013 | December 31, 2012 | ||||||||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Equity securities | $ | 77 | $ | 77 | $ | — | $ | 75 | $ | 75 | $ | — | |||||||||||||
Mutual funds | 477 | 477 | — | 418 | 418 | — | |||||||||||||||||||
U.S. Government securities | 214 | — | 214 | 213 | — | 213 | |||||||||||||||||||
Other securities | 133 | — | 133 | 141 | — | 141 | |||||||||||||||||||
Derivatives | 38 | — | 38 | 39 | — | 39 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Derivatives | 21 | — | 21 | 25 | — | 25 | |||||||||||||||||||
OTHER_Tables
OTHER (Tables) | 9 Months Ended | ||||||||||||
Sep. 29, 2013 | |||||||||||||
Accumulated Other Comprehensive Loss | Changes in the balance of accumulated other comprehensive loss (AOCL), net of tax, consisted of the following (in millions): | ||||||||||||
Postretirement | Other, net | AOCL | |||||||||||
Benefit Plans | |||||||||||||
Balance at December 31, 2011 | $ | (11,186) | $ | (71) | $ | (11,257) | |||||||
Other comprehensive income before reclassifications | — | 15 | 15 | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 626 | — | 626 | ||||||||||
Prior service cost (a) | 29 | — | 29 | ||||||||||
Other | — | 5 | 5 | ||||||||||
Total reclassified from AOCL | 655 | 5 | 660 | ||||||||||
Total other comprehensive income | 655 | 20 | 675 | ||||||||||
Balance at September 30, 2012 | $ | (10,531) | $ | (51) | $ | (10,582) | |||||||
Balance at December 31, 2012 | $ | (13,532) | $ | 39 | $ | (13,493) | |||||||
Other comprehensive income before reclassifications | — | (1) | (1) | ||||||||||
Amounts reclassified from AOCL | |||||||||||||
Net actuarial losses (a) | 730 | — | 730 | ||||||||||
Prior service cost (a) | 31 | — | 31 | ||||||||||
Other | — | (2) | (2) | ||||||||||
Total reclassified from AOCL | 761 | (2) | 759 | ||||||||||
Total other comprehensive income | 761 | (3) | 758 | ||||||||||
Balance at September 29, 2013 | $ | (12,771) | $ | 36 | $ | (12,735) | |||||||
(a) | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). These amounts include the amortization of net actuarial losses of $243 million and $240 million for the quarters ended September 29, 2013 and September 30, 2012 and prior service cost of $11 million and $9 million for the quarters ended September 29, 2013 and September 30, 2012. |
Schedule_of_Weighted_Average_S
Schedule of Weighted Average Shares Outstanding Used to Compute Earnings Per Common Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Weighted average common shares outstanding for basic computations | 321.3 | 323.5 | 321.3 | 324 |
Weighted average dilutive effect of equity awards | 6.2 | 4.8 | 5.3 | 4.6 |
Weighted average common shares outstanding for diluted computations | 327.5 | 328.3 | 326.6 | 328.6 |
Earnings_Per_Common_Share_Addi
Earnings Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options excluded from the computation of diluted earnings per common share, because their inclusion would have been anti-dilutive | 6.5 | 3.2 | 8.6 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ||||
Number of business segments | 5 | |||
F-35 program | Aeronautics | ||||
Segment Reporting Information [Line Items] | ||||
Program net sales as percent of total net sales | 16.00% | 15.00% | 15.00% | 14.00% |
Summary_of_Financial_Informati
Summary of Financial Information for Each Business Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Dec. 31, 2012 | ||||||
Aeronautics | Information Systems & Global Solutions | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Business segments | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Intersegment elimination | Corporate | Corporate | ||||||||||||
Aeronautics | Aeronautics | Aeronautics | Aeronautics | Aeronautics | Information Systems & Global Solutions | Information Systems & Global Solutions | Information Systems & Global Solutions | Information Systems & Global Solutions | Information Systems & Global Solutions | Missiles and Fire Control | Missiles and Fire Control | Missiles and Fire Control | Missiles and Fire Control | Missiles and Fire Control | Mission Systems and Training | Mission Systems and Training | Mission Systems and Training | Mission Systems and Training | Mission Systems and Training | Space Systems | Space Systems | Space Systems | Space Systems | Space Systems | Aeronautics | Aeronautics | Aeronautics | Aeronautics | Information Systems & Global Solutions | Information Systems & Global Solutions | Information Systems & Global Solutions | Information Systems & Global Solutions | Missiles and Fire Control | Missiles and Fire Control | Missiles and Fire Control | Missiles and Fire Control | Mission Systems and Training | Mission Systems and Training | Mission Systems and Training | Mission Systems and Training | Space Systems | Space Systems | Space Systems | Space Systems | |||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total net sales | $11,347 | $11,869 | $33,825 | $35,083 | $11,347 | $11,869 | $33,825 | $35,083 | $3,632 | $3,698 | $10,225 | $10,812 | $2,059 | $2,292 | $6,266 | $6,645 | $2,003 | $1,951 | $6,034 | $5,560 | $1,698 | $1,862 | $5,298 | $5,719 | $1,955 | $2,066 | $6,002 | $6,347 | |||||||||||||||||||||||||||||||||||||||||
Severance charges | -23 | [1] | -30 | [1] | -23 | [1] | -25 | -30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other unallocated expenses, net | -201 | [2] | -274 | [2] | -630 | [2] | -848 | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit | 1,254 | 1,137 | 3,671 | 3,373 | 1,455 | 1,434 | 4,331 | 4,244 | 412 | 415 | 1,198 | 1,254 | 187 | 209 | 570 | 605 | 356 | 300 | 1,081 | 984 | 216 | 198 | 692 | 550 | 284 | 312 | 790 | 851 | |||||||||||||||||||||||||||||||||||||||||
Total intersegment sales | 559 | 618 | 1,673 | 1,780 | 53 | 55 | 152 | 145 | 160 | 231 | 523 | 659 | 72 | 70 | 196 | 225 | 249 | 230 | 728 | 667 | 25 | 32 | 74 | 84 | |||||||||||||||||||||||||||||||||||||||||||||
Total assets | $38,907 | $38,907 | $38,657 | $26,815 | $26,815 | $26,442 | $6,556 | $6,556 | $6,525 | $5,811 | $5,811 | $5,664 | $4,259 | $4,259 | $4,186 | $6,724 | $6,724 | $6,589 | $3,465 | $3,465 | $3,478 | $12,092 | [3] | $12,215 | [3] | ||||||||||||||||||||||||||||||||||||||||||||
[1] | Severance charges during the nine months ended September 29, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment during the quarter ended March 31, 2013. Severance charges during the quarter and nine months ended September 30, 2012 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our former Electronic Systems business segment (Note 8, under the caption "Severance Activities"). Severance charges for initiatives that are not significant are included in business segment operating profit. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[2] | Other unallocated expenses, net for the quarter and nine months ended September 30, 2012 includes amounts related to discontinued operations that are not significant. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
[3] | Corporate assets primarily include cash and cash equivalents, deferred income taxes, environmental receivables, and investments held in a separate trust. |
Inventories_Detail
Inventories (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ||
Work-in-process, primarily related to long-term contracts and programs in progress | $7,186 | $7,000 |
Less: customer advances and progress payments | -4,876 | -4,932 |
Inventory for long term contracts or programs net of customer advances and progress payments | 2,310 | 2,068 |
Other inventories | 610 | 869 |
Total inventories, net | $2,920 | $2,937 |
Components_of_Pretax_Net_Perio
Components of Pretax Net Periodic Benefit Costs (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Qualified defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $286 | $264 | $857 | $791 |
Interest cost | 450 | 471 | 1,350 | 1,413 |
Expected return on plan assets | -621 | -547 | -1,864 | -1,640 |
Recognized net actuarial losses | 352 | 279 | 1,058 | 837 |
Amortization of prior service cost (credit) | 20 | 18 | 60 | 55 |
Total net periodic benefit cost | 487 | 485 | 1,461 | 1,456 |
Retiree medical and life insurance plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7 | 7 | 21 | 21 |
Interest cost | 29 | 33 | 87 | 99 |
Expected return on plan assets | -36 | -33 | -109 | -99 |
Recognized net actuarial losses | 11 | 8 | 33 | 24 |
Amortization of prior service cost (credit) | -4 | -3 | -13 | -9 |
Total net periodic benefit cost | $7 | $12 | $19 | $36 |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognition of previously deferred postretirement benefit plan amounts | $254 | $249 | $761 | $655 |
Recognition of previously deferred postretirement benefit plan amounts, tax | 138 | 136 | 417 | 358 |
Qualified defined benefit pension plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions made by the employer | $750 | $1,500 |
Recovered_Sheet1
Legal Proceedings And Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | 81 Months Ended | |||||||
Sep. 29, 2013 | Dec. 31, 2012 | Sep. 29, 2013 | Dec. 31, 2012 | Sep. 29, 2013 | Dec. 31, 2012 | Sep. 29, 2013 | Apr. 24, 2009 | Sep. 29, 2013 | |
Y | Other Noncurrent Liabilities | Other Noncurrent Liabilities | Other Noncurrent Assets | Other Noncurrent Assets | N.Y. Metropolitan Transportation Authority | N.Y. Metropolitan Transportation Authority | United Launch Alliance | ||
Site Contingency [Line Items] | |||||||||
Contract value | $323,000,000 | ||||||||
Contract payments received to date | 241,000,000 | ||||||||
Liabilities recorded relative to environmental matters | 982,000,000 | 950,000,000 | 888,000,000 | 844,000,000 | |||||
Environmental costs eligible for future recovery | 849,000,000 | 821,000,000 | 765,000,000 | 730,000,000 | |||||
Time period environmental costs and recovery of environmental costs are projected over, years | 20 | ||||||||
Percentage of expenditures that are reimbursed for certain remediation activities | 50.00% | ||||||||
Outstanding letters of credit, surety bonds, and third-party guarantees | 2,400,000,000 | 2,200,000,000 | |||||||
Third-party guarantees outstanding | 763,000,000 | 816,000,000 | |||||||
Percentage of total guarantees that relate to guarantees of contractual performance of joint ventures | 80.00% | 85.00% | |||||||
Percentage of ownership interest in affiliated entity | 50.00% | ||||||||
Dividends that are subject to contingency | 527,000,000 | ||||||||
Revolving line of credit | $560,000,000 |
Fair_Value_Assets_and_Liabilit
Fair Value, Assets and Liabilities Measured on Recurring Basis (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | $38 | $39 |
Derivatives liabilities | 21 | 25 |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 77 | 75 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 477 | 418 |
U.S. Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 214 | 213 |
Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 133 | 141 |
Fair value, inputs, level 1 | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 77 | 75 |
Fair value, inputs, level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 477 | 418 |
Fair value, inputs, level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 38 | 39 |
Derivatives liabilities | 21 | 25 |
Fair value, inputs, level 2 | U.S. Government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | 214 | 213 |
Fair value, inputs, level 2 | Other securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of investments measured on recurring basis | $133 | $141 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | Sep. 29, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated fair values of debt instruments | $7,400,000,000 | $8,200,000,000 |
Outstanding principal amount of debt instrument | 7,000,000,000 | 7,200,000,000 |
Unamortized discount on long-term debt | 885,000,000 | 892,000,000 |
Foreign currency contracts | Designated as hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate notional amount of derivatives | 1,100,000,000 | 1,300,000,000 |
Interest rate swaps | Designated as hedges | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate notional amount of derivatives | $1,200,000,000 | $503,000,000 |
Other_Additional_Information_D
Other - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Apr. 30, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 26, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 29, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | Jan. 31, 2013 | |||
Tax Benefit Attributable to 2012 | Fourth Quarter 2013 | Former Electronic Systems | Former Electronic Systems | Information Systems & Global Solutions | Aeronautics | Restricted Stock Units (RSUs) | Performance Shares | Performance Shares | Performance Shares | ||||||||||||
Half Of PSUs Granted In Period | Remaining Half Of PSUs Granted In Period | ||||||||||||||||||||
Increase in segment operating profit, net of state taxes, from the impact of changes in net profit booking rate adjustments and other matters | $510,000,000 | $430,000,000 | $1,600,000,000 | $1,500,000,000 | |||||||||||||||||
Increase in net earnings from the impact of changes in net profit booking rate adjustments and other matters | 330,000,000 | 280,000,000 | 1,000,000,000 | 980,000,000 | |||||||||||||||||
Increase in diluted earnings per share from the impact of changes in net profit booking rate adjustments and other matters | $1.01 | $0.85 | $3.12 | $2.98 | |||||||||||||||||
Cash paid for repurchases of common stock | 1,533,000,000 | 708,000,000 | |||||||||||||||||||
Number of shares of common stock repurchased with cash | 14.5 | ||||||||||||||||||||
Value of stock repurchased under share repurchase program | 1,563,000,000 | 722,000,000 | |||||||||||||||||||
Number of shares repurchased under share repurchase program | 14.7 | ||||||||||||||||||||
Additional share repurchase program authorized amount | 3,000,000,000 | ||||||||||||||||||||
Remaining authorized repurchase amount under share repurchase program | 3,800,000,000 | ||||||||||||||||||||
Common stock par value, per share | $1 | $1 | $1 | ||||||||||||||||||
Number of stock units, granted, in shares | 1.4 | 0.3 | |||||||||||||||||||
Average grant date fair value per unit | $89.24 | $89.24 | $61.13 | ||||||||||||||||||
Number of years over which equity awards vest | 3 years | 3 years | |||||||||||||||||||
Dividends declared | 706,000,000 | 1,559,000,000 | 1,365,000,000 | 434,000,000 | |||||||||||||||||
Dividends declared, per share (in USD) | $1.15 | $2.15 | $4.78 | $4.15 | $1.33 | ||||||||||||||||
Percentage increase in per share quarterly dividend declared | 16.00% | ||||||||||||||||||||
Effective income tax rates from continuing operations | 28.20% | 30.50% | 27.80% | 30.10% | |||||||||||||||||
Recognized tax benefit for the impact of the tax credit | 37,000,000 | ||||||||||||||||||||
Increase in diluted earnings per share due to R&D tax credit | $0.11 | ||||||||||||||||||||
Federal and foreign income tax payments made, net of refunds received | 387,000,000 | 892,000,000 | |||||||||||||||||||
Refund received from the IRS | 550,000,000 | ||||||||||||||||||||
Net earnings from discontinued operations | 31,000,000 | 31,000,000 | |||||||||||||||||||
Severance charges | 23,000,000 | [1] | 30,000,000 | [1] | 23,000,000 | [1] | 23,000,000 | 23,000,000 | 30,000,000 | 25,000,000 | |||||||||||
Reduction in net earnings due to severance charges | 15,000,000 | 15,000,000 | 19,000,000 | ||||||||||||||||||
Decrease in diluted earnings per share due to severance charges | $0.05 | $0.05 | $0.06 | ||||||||||||||||||
Long term debt repayment | $150,000,000 | $150,000,000 | |||||||||||||||||||
Long term debt fixed interest rate | 7.38% | ||||||||||||||||||||
[1] | Severance charges during the nine months ended September 29, 2013 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our IS&GS business segment during the quarter ended March 31, 2013. Severance charges during the quarter and nine months ended September 30, 2012 consisted of amounts, net of state tax benefits, associated with the elimination of certain positions at our former Electronic Systems business segment (Note 8, under the caption "Severance Activities"). Severance charges for initiatives that are not significant are included in business segment operating profit. |
Changes_in_Balance_of_Accumula
Changes in Balance of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||
Schedule of Postretirement Benefit Plans and Other Adjustments Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | ($13,493) | ($11,257) | ||||
Other comprehensive income before reclassifications | -1 | 15 | ||||
Net actuarial losses | 243 | 240 | 730 | [1] | 626 | [1] |
Prior service cost | 11 | 9 | 31 | [1] | 29 | [1] |
Other | -2 | 5 | ||||
Total reclassified from AOCL | 759 | 660 | ||||
Other comprehensive income, net of tax | 306 | 282 | 758 | 675 | ||
Ending balance | -12,735 | -10,582 | -12,735 | -10,582 | ||
Postretirement Benefit Plan Adjustments | ||||||
Schedule of Postretirement Benefit Plans and Other Adjustments Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | -13,532 | -11,186 | ||||
Net actuarial losses | 730 | [1] | 626 | [1] | ||
Prior service cost | 31 | [1] | 29 | [1] | ||
Total reclassified from AOCL | 761 | 655 | ||||
Other comprehensive income, net of tax | 761 | 655 | ||||
Ending balance | -12,771 | -10,531 | -12,771 | -10,531 | ||
Other, net | ||||||
Schedule of Postretirement Benefit Plans and Other Adjustments Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 39 | -71 | ||||
Other comprehensive income before reclassifications | -1 | 15 | ||||
Other | -2 | 5 | ||||
Total reclassified from AOCL | -2 | 5 | ||||
Other comprehensive income, net of tax | -3 | 20 | ||||
Ending balance | $36 | ($51) | $36 | ($51) | ||
[1] | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). These amounts include the amortization of net actuarial losses of $243 million and $240 million for the quarters ended September 29, 2013 and September 30, 2012 and prior service cost of $11 million and $9 million for the quarters ended September 29, 2013 and September 30, 2012. |
Changes_in_Balance_of_Accumula1
Changes in Balance of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | ||
Schedule of Postretirement Benefit Plans and Other Adjustments Recognized in Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Net actuarial gains (losses) | ($243) | ($240) | ($730) | [1] | ($626) | [1] |
Prior service cost | $11 | $9 | $31 | [1] | $29 | [1] |
[1] | Amounts related to our postretirement benefit plans that were reclassified from AOCL were recorded as a component of net periodic benefit cost for each period presented (Note 5). These amounts include the amortization of net actuarial losses of $243 million and $240 million for the quarters ended September 29, 2013 and September 30, 2012 and prior service cost of $11 million and $9 million for the quarters ended September 29, 2013 and September 30, 2012. |