-
Q4 EPS from Continuing Operations Increase 2 Percent to $2.14; 2012 EPS from Continuing Operations Increase 5 Percent to $7.81
-
Free Cash Flow Totals $922 Million for Q4 and $2.3 Billion for 2012
-
7.3 Million Shares Repurchased in Q4 for $487 Million; 20.9 Million Shares Repurchased in 2012 for $1.3 Billion
-
2012 New Awards Total $26.5 Billion; Total Backlog of $40.8 Billion
- 2013 EPS Guidance of $6.85 to $7.15
FALLS CHURCH, Va. -- Jan. 30, 2013 -- Northrop Grumman Corporation (NYSE:NOC) reported fourth quarter 2012 earnings from continuing operations of $533 million, or $2.14 per diluted share, compared with $550 million, or $2.09 per diluted share, in the fourth quarter of 2011. The increase in earnings per share was principally due to a $102 million increase in segment operating income and a lower share count, partially offset by a $67 million decrease in net FAS/CAS pension adjustment and a higher effective tax rate. On a pension-adjusted basis, earnings per diluted share from continuing operations increased 11 percent to $2.06 from $1.85. Diluted earnings per share for the fourth quarter of 2012 are based on weighted average diluted shares outstanding of 248.9 million compared with 262.7 million in the prior year period, a 5 percent decrease. During the fourth quarter the company repurchased 7.3 million shares of its common stock for approximately $487 million.
For 2012, earnings from continuing operations totaled $2.0 billion, or $7.81 per diluted share, compared with $2.1 billion, or $7.41 per diluted share in 2011. The change in earnings was principally due to a $268 million decrease in 2012 net FAS/CAS pension adjustment and a higher effective tax rate, which more than offset a $121 million increase in segment operating income. The increase in diluted earnings per share reflects higher segment operating income and a lower share count in 2012. Diluted earnings per share for 2012 are based on 253.4 million weighted average shares outstanding compared with 281.6 million weighted average shares outstanding in 2011, a 10 percent decrease. In 2012, the company repurchased 20.9 million shares of its common stock for $1.3 billion, and $1.5 billion remained on its current share repurchase authorization as of Dec. 31, 2012.
"Our team delivered outstanding results for the quarter and the year. Our focus on performance, effective cash deployment, and portfolio alignment continues to create value for our shareholders, customers and employees. As we look ahead, we expect challenges, but we are confident in our team's ability to address those challenges and continue to create value for all our stakeholders," said Wes Bush, chairman, chief executive officer and president.
Table 1 - Financial Highlights
Fourth Quarter | Total Year | |||||||||||||
$ in millions, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||
Sales | $ 6,476 | $ 6,506 | $ 25,218 | $ 26,412 | ||||||||||
Segment operating income 1 | 875 | 773 | 3,176 | 3,055 | ||||||||||
Segment operating margin rate1 | 13.5% | 11.9% | 12.6% | 11.6% | ||||||||||
Operating income | 824 | 799 | 3,130 | 3,276 | ||||||||||
Operating margin rate | 12.7% | 12.3% | 12.4% | 12.4% | ||||||||||
Earnings from continuing operations | 533 | 550 | 1,978 | 2,086 | ||||||||||
Diluted EPS from continuing operations | 2.14 | 2.09 | 7.81 | 7.41 | ||||||||||
Net earnings | 533 | 548 | 1,978 | 2,118 | ||||||||||
Diluted EPS | 2.14 | 2.09 | 7.81 | 7.52 | ||||||||||
Cash provided by continuing operations | 1,057 | 1,321 | 2,640 | 2,347 | ||||||||||
Free cash flow provided by continuing operations 1 | 922 | 1,155 | 2,309 | 1,855 | ||||||||||
Pension-adjusted Operating Highlights | ||||||||||||||
Operating income | 824 | 799 | 3,130 | 3,276 | ||||||||||
Net FAS/CAS pension adjustment 1 | (31) | (98) | (132) | (400) | ||||||||||
Pension-adjusted operating income 1 | $ 793 | $ 701 | $ 2,998 | $ 2,876 | ||||||||||
Pension-adjusted operating margin rate 1 | 12.2% | 10.8% | 11.9% | 10.9% | ||||||||||
Pension-adjusted Per Share Data | ||||||||||||||
Diluted EPS from continuing operations | $ 2.14 | $ 2.09 | $ 7.81 | $ 7.41 | ||||||||||
After-tax net pension adjustment per share 1 | (0.08) | (0.24) | (0.34) | (0.92) | ||||||||||
Pension-adjusted diluted EPS from continuing operations 1 | $ 2.06 | $ 1.85 | $ 7.47 | $ 6.49 | ||||||||||
Weighted average shares outstanding - Basic | 243.4 | 258.2 | 248.6 | 276.8 | ||||||||||
Dilutive effect of stock options and stock awards | 5.5 | 4.5 | 4.8 | 4.8 | ||||||||||
Weighted average shares outstanding - Diluted | 248.9 | 262.7 | 253.4 | 281.6 | ||||||||||
1 Non-GAAP metric - see definitions at the end of this press release. |
Fourth Quarter | Total Year | |||||||||||||
$ millions | 2012 | 2011 | 2012 | 2011 | ||||||||||
Cash provided by continuing operations before discretionary pension contributions 1 | $ 1,029 | $ 1,602 | $ 2,833 | $ 2,995 | ||||||||||
After-tax discretionary pension pre-funding impact | 28 | (281) | (193) | (648) | ||||||||||
Cash provided by continuing operations | $ 1,057 | $ 1,321 | $ 2,640 | $ 2,347 | ||||||||||
Less: | ||||||||||||||
Capital expenditures | (135) | (166) | (331) | (492) | ||||||||||
Free cash flow provided by continuing operations 1 | $ 922 | $ 1,155 | $ 2,309 | $ 1,855 | ||||||||||
After-tax discretionary pension pre-funding impact | (28) | 281 | 193 | 648 | ||||||||||
Free cash flow provided by continuing operations before discretionary pension contributions 1 | $ 894 | $ 1,436 | $ 2,502 | $ 2,503 | ||||||||||
1 Non-GAAP metric -- see definitions at the end of this press release. |
$ in millions, except per share amounts | ||||||||||||||
Sales | ~24,000 | |||||||||||||
Segment operating margin % 1 | Low to mid 11% | |||||||||||||
Operating margin % | High 10% to Low 11% | |||||||||||||
Diluted EPS from continuing operations | 6.85 | -- | 7.15 | |||||||||||
Cash provided by operations before discretionary pension contributions 1 | 2,100 | -- | 2,400 | |||||||||||
Free cash flow before discretionary pension contributions 1 | 1,700 | -- | 2,000 | |||||||||||
1 Non-GAAP metric - see definitions at the end of this press release. |
Fourth Quarter | Total Year | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | ||||||||||||||
Aerospace Systems | $ 2,604 | $ 2,443 | 7% | $ 9,977 | $ 9,964 | — | ||||||||
Electronic Systems | 1,775 | 1,868 | (5%) | 6,950 | 7,372 | (6%) | ||||||||
Information Systems | 1,880 | 1,910 | (2%) | 7,356 | 7,921 | (7%) | ||||||||
Technical Services | 738 | 790 | (7%) | 3,019 | 3,193 | (5%) | ||||||||
Intersegment eliminations | (521) | (505) | (2,084) | (2,038) | ||||||||||
6,476 | 6,506 | — | 25,218 | 26,412 | (5%) | |||||||||
Segment operating income 1 | ||||||||||||||
Aerospace Systems | 359 | 315 | 14% | 1,218 | 1,217 | — | ||||||||
Electronic Systems | 328 | 256 | 28% | 1,187 | 1,070 | 11% | ||||||||
Information Systems | 184 | 196 | (6%) | 761 | 766 | (1%) | ||||||||
Technical Services | 62 | 67 | (7%) | 268 | 260 | 3% | ||||||||
Intersegment eliminations | (58) | (61) | (258) | (258) | ||||||||||
Segment operating income 1 | 875 | 773 | 13% | 3,176 | 3,055 | 4% | ||||||||
Segment operating margin rate 1 | 13.5% | 11.9% | 160 bps | 12.6% | 11.6% | 100 bps | ||||||||
Reconciliation to operating income | ||||||||||||||
Unallocated corporate expenses | (79) | (70) | (13%) | (168) | (166) | (1%) | ||||||||
Net FAS/CAS pension adjustment 1 | 31 | 98 | (68%) | 132 | 400 | (67%) | ||||||||
Other | (3) | (2) | (50%) | (10) | (13) | 23% | ||||||||
Operating income | 824 | 799 | 3% | 3,130 | 3,276 | (4%) | ||||||||
Operating margin rate | 12.7% | 12.3% | 40 bps | 12.4% | 12.4% | — | ||||||||
Interest expense | (54) | (53) | (2%) | (212) | (221) | 4% | ||||||||
Other, net | 17 | 36 | (53%) | 47 | 28 | 68% | ||||||||
Earnings from continuing operations before income taxes | 787 | 782 | 1% | 2,965 | 3,083 | (4%) | ||||||||
Federal and foreign income tax expense | (254) | (232) | (9%) | (987) | (997) | 1% | ||||||||
Earnings from continuing operations | 533 | 550 | (3%) | 1,978 | 2,086 | (5%) | ||||||||
Earnings (loss) from discontinued operations | — | (2) | — | 32 | ||||||||||
Net earnings | $ 533 | $ 548 | (3%) | $ 1,978 | $ 2,118 | (7%) | ||||||||
1 Non-GAAP metric — see definitions at the end of this press release. |
Fourth Quarter | Total Year | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 2,604 | $ 2,443 | 6.6% | $ 9,977 | $ 9,964 | 0.1% | ||||||||
Operating income | 359 | 315 | 14.0% | 1,218 | 1,217 | 0.1% | ||||||||
Operating margin rate | 13.8% | 12.9% | 12.2% | 12.2% |
Fourth Quarter | Total Year | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 1,775 | $ 1,868 | (5.0%) | $ 6,950 | $ 7,372 | (5.7%) | ||||||||
Operating income | 328 | 256 | 28.1% | 1,187 | 1,070 | 10.9% | ||||||||
Operating margin rate | 18.5% | 13.7% | 17.1% | 14.5% |
Fourth Quarter | Total Year | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 1,880 | $ 1,910 | (1.6%) | $ 7,356 | $ 7,921 | (7.1%) | ||||||||
Operating income | 184 | 196 | (6.1%) | 761 | 766 | (0.7%) | ||||||||
Operating margin rate | 9.8% | 10.3% | 10.3% | 9.7% |
Fourth Quarter | Total Year | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 738 | $ 790 | (6.6%) | $ 3,019 | $ 3,193 | (5.4%) | ||||||||
Operating income | 62 | 67 | (7.5%) | 268 | 260 | 3.1% | ||||||||
Operating margin rate | 8.4% | 8.5% | 8.9% | 8.1% |
SCHEDULE 1 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | ||||||||||||||
(Unaudited) | ||||||||||||||
Year Ended December 31 | ||||||||||||||
$ in millions, except per share amounts | 2012 | 2011 | 2010 | |||||||||||
Sales | ||||||||||||||
Product | $ 13,838 | $ 15,073 | $ 16,091 | |||||||||||
Service | 11,380 | 11,339 | 12,052 | |||||||||||
Total sales | 25,218 | 26,412 | 28,143 | |||||||||||
Operating costs and expenses | ||||||||||||||
Product | 10,415 | 11,491 | 12,558 | |||||||||||
Service | 9,223 | 9,295 | 10,291 | |||||||||||
General and administrative expenses | 2,450 | 2,350 | 2,467 | |||||||||||
Operating income | 3,130 | 3,276 | 2,827 | |||||||||||
Other (expense) income | ||||||||||||||
Interest expense | (212) | (221) | (269) | |||||||||||
Charge on debt redemption | — | — | (229) | |||||||||||
Other, net | 47 | 28 | 37 | |||||||||||
Earnings from continuing operations before income taxes | 2,965 | 3,083 | 2,366 | |||||||||||
Federal and foreign income tax expense | 987 | 997 | 462 | |||||||||||
Earnings from continuing operations | 1,978 | 2,086 | 1,904 | |||||||||||
Earnings from discontinued operations, net of tax | — | 32 | 149 | |||||||||||
Net earnings | $ 1,978 | $ 2,118 | $ 2,053 | |||||||||||
Basic earnings per share | ||||||||||||||
Continuing operations | $ 7.96 | $ 7.54 | $ 6.41 | |||||||||||
Discontinued operations | — | 0.11 | 0.50 | |||||||||||
Basic earnings per share | $ 7.96 | $ 7.65 | $ 6.91 | |||||||||||
Weighted-average common shares outstanding, in millions | 248.6 | 276.8 | 296.9 | |||||||||||
Diluted earnings per share | ||||||||||||||
Continuing operations | $ 7.81 | $ 7.41 | $ 6.32 | |||||||||||
Discontinued operations | — | 0.11 | 0.50 | |||||||||||
Diluted earnings per share | $ 7.81 | $ 7.52 | $ 6.82 | |||||||||||
Weighted-average diluted shares outstanding, in millions | 253.4 | 281.6 | 301.1 | |||||||||||
Net earnings (from above) | $ 1,978 | $ 2,118 | $ 2,053 | |||||||||||
Other comprehensive income | ||||||||||||||
Change in cumulative translation adjustment | 8 | (4) | (41) | |||||||||||
Change in unrealized (loss) gain on marketable securities and cash flow hedges, net of tax (expense) benefit of $0 in 2012, $2 in 2011, and $0 in 2010 | (2) | (4) | 1 | |||||||||||
Change in unamortized benefit plan costs, net of tax benefit (expense) of $860 in 2012, $823 in 2011, and $(183) in 2010 | (1,303) | (1,249) | 297 | |||||||||||
Other comprehensive (loss) income, net of tax | (1,297) | (1,257) | 257 | |||||||||||
Comprehensive income | $ 681 | $ 861 | $ 2,310 | |||||||||||
SCHEDULE 2 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||||||
(Unaudited) | ||||||||||||||
December 31 | ||||||||||||||
$ in millions | 2012 | 2011 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ 3,862 | $ 3,002 | ||||||||||||
Accounts receivable, net of progress payments | 2,858 | 2,964 | ||||||||||||
Inventoried costs, net of progress payments | 798 | 873 | ||||||||||||
Deferred tax assets | 574 | 496 | ||||||||||||
Prepaid expenses and other current assets | 300 | 411 | ||||||||||||
Total current assets | 8,392 | 7,746 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $4,146 in 2012 and $3,933 in 2011 | 2,887 | 3,047 | ||||||||||||
Goodwill | 12,431 | 12,374 | ||||||||||||
Non-current deferred tax assets | 1,542 | 900 | ||||||||||||
Other non-current assets | 1,291 | 1,344 | ||||||||||||
Total assets | $ 26,543 | $ 25,411 | ||||||||||||
Liabilities | ||||||||||||||
Trade accounts payable | $ 1,392 | $ 1,481 | ||||||||||||
Accrued employee compensation | 1,173 | 1,196 | ||||||||||||
Advance payments and billings in excess of costs incurred | 1,759 | 1,777 | ||||||||||||
Other current liabilities | 1,732 | 1,681 | ||||||||||||
Total current liabilities | 6,056 | 6,135 | ||||||||||||
Long-term debt, net of current portion of $5 in 2012 and 2011 | 3,930 | 3,935 | ||||||||||||
Pension and post-retirement plan liabilities | 6,085 | 4,079 | ||||||||||||
Other non-current liabilities | 958 | 926 | ||||||||||||
Total liabilities | 17,029 | 15,075 | ||||||||||||
Shareholders' equity | ||||||||||||||
Preferred Stock, $1 par value; 10,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||||||||
Common stock, $1 par value; 800,000,000 shares authorized; issued and outstanding: 2012 - 239,209,812; 2011 - 253,889,622 | 239 | 254 | ||||||||||||
Paid-in capital | 2,924 | 3,873 | ||||||||||||
Retained earnings | 11,138 | 9,699 | ||||||||||||
Accumulated other comprehensive loss | (4,787) | (3,490) | ||||||||||||
Total shareholders' equity | $ 9,514 | $ 10,336 | ||||||||||||
Total liabilities and shareholders' equity | $ 26,543 | $ 25,411 | ||||||||||||
SCHEDULE 3 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
Year Ended December 31 | ||||||||||||||
$ in millions | 2012 | 2011 | 2010 | |||||||||||
Operating activities | ||||||||||||||
Sources of cash—continuing operations | ||||||||||||||
Cash received from customers | ||||||||||||||
Collections on billings | $ 20,892 | $ 21,628 | $ 23,531 | |||||||||||
Progress payments | 4,472 | 4,803 | 4,437 | |||||||||||
Other cash receipts | 99 | 149 | 40 | |||||||||||
Total sources of cash—continuing operations | 25,463 | 26,580 | 28,008 | |||||||||||
Uses of cash—continuing operations | ||||||||||||||
Cash paid to suppliers and employees | (21,074) | (22,059) | (23,759) | |||||||||||
Pension contributions | (367) | (1,084) | (789) | |||||||||||
Interest paid, net of interest received | (200) | (227) | (269) | |||||||||||
Income taxes paid, net of refunds received | (1,119) | (810) | (1,071) | |||||||||||
Excess tax benefits from stock-based compensation | (45) | (17) | (22) | |||||||||||
Other cash payments | (18) | (36) | (42) | |||||||||||
Total uses of cash—continuing operations | (22,823) | (24,233) | (25,952) | |||||||||||
Cash provided by continuing operations | 2,640 | 2,347 | 2,056 | |||||||||||
Cash (used in) provided by discontinued operations | — | (232) | 397 | |||||||||||
Net cash provided by operating activities | 2,640 | 2,115 | 2,453 | |||||||||||
Investing activities | ||||||||||||||
Continuing operations | ||||||||||||||
Capital expenditures | (331) | (492) | (585) | |||||||||||
Maturities of short-term investments | 250 | 200 | — | |||||||||||
Contribution received from the spin-off of shipbuilding business | — | 1,429 | — | |||||||||||
Purchases of short-term investments | — | (450) | (2) | |||||||||||
Other investing activities, net | (3) | 56 | 16 | |||||||||||
Cash (used in) provided by investing activities from continuing operations | (84) | 743 | (571) | |||||||||||
Cash used in investing activities from discontinued operations | — | (63) | (189) | |||||||||||
Net cash (used in) provided by investing activities | (84) | 680 | (760) | |||||||||||
Financing activities | ||||||||||||||
Common stock repurchases | (1,316) | (2,295) | (1,177) | |||||||||||
Cash dividends paid | (535) | (543) | (545) | |||||||||||
Proceeds from exercises of stock options | 188 | 101 | 142 | |||||||||||
Excess tax benefits from stock-based compensation | 45 | 17 | 22 | |||||||||||
Payments of long-term debt | — | (768) | (1,011) | |||||||||||
Proceeds from issuance of long-term debt | — | — | 1,484 | |||||||||||
Other financing activities, net | (78) | (6) | (2) | |||||||||||
Cash used in financing activities from continuing operations | (1,696) | (3,494) | (1,087) | |||||||||||
Cash used in financing activities from discontinued operations | (179) | |||||||||||||
Net cash used in financing activities | (1,696) | (3,494) | (1,266) | |||||||||||
Increase (decrease) in cash and cash equivalents | 860 | (699) | 427 | |||||||||||
Cash and cash equivalents, beginning of year | 3,002 | 3,701 | 3,274 | |||||||||||
Cash and cash equivalents, end of year | $ 3,862 | $ 3,002 | $ 3,701 | |||||||||||
SCHEDULE 4 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
Year Ended December 31 | ||||||||||||||
$ in millions | 2012 | 2011 | 2010 | |||||||||||
Reconciliation of net earnings to net cash provided by operating activities | ||||||||||||||
Net earnings | $ 1,978 | $ 2,118 | $ 2,053 | |||||||||||
Net earnings from discontinued operations | — | (32) | (134) | |||||||||||
Adjustments to reconcile to net cash provided by operating activities: | ||||||||||||||
Depreciation | 448 | 462 | 446 | |||||||||||
Amortization | 62 | 82 | 109 | |||||||||||
Stock-based compensation | 183 | 140 | 136 | |||||||||||
Excess tax benefits from stock-based compensation | (45) | (17) | (22) | |||||||||||
Pre-tax gain on sale of businesses | — | — | (10) | |||||||||||
Charge on debt redemption | — | — | 229 | |||||||||||
(Increase) decrease in assets: | ||||||||||||||
Accounts receivable, net | 90 | 350 | (471) | |||||||||||
Inventoried costs, net | 46 | (2) | (64) | |||||||||||
Prepaid expenses and other assets | (65) | 16 | 36 | |||||||||||
Increase (decrease) in liabilities: | ||||||||||||||
Accounts payable and accruals | 23 | (341) | 70 | |||||||||||
Deferred income taxes | 78 | 441 | 89 | |||||||||||
Income taxes payable | (75) | (32) | (26) | |||||||||||
Retiree benefits | (71) | (904) | (354) | |||||||||||
Other, net | (12) | 66 | (31) | |||||||||||
Cash provided by continuing operations | 2,640 | 2,347 | 2,056 | |||||||||||
Cash (used in) provided by discontinued operations | — | (232) | 397 | |||||||||||
Net cash provided by operating activities | $ 2,640 | $ 2,115 | $ 2,453 | |||||||||||
SCHEDULE 5 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
TOTAL BACKLOG AND CONTRACT AWARDS | ||||||||||||||
(Unaudited) | ||||||||||||||
December 31, 2012 | December 31, 2011 | |||||||||||||
Total | Total | |||||||||||||
$ in millions | Funded 1 | Unfunded 2 | Backlog | Backlog 3 | ||||||||||
Aerospace Systems | $11,103 | $8,491 | $19,594 | $18,638 | ||||||||||
Electronic Systems | 7,833 | 1,638 | 9,471 | 9,123 | ||||||||||
Information Systems | 4,045 | 4,496 | 8,541 | 8,563 | ||||||||||
Technical Services | 2,719 | 484 | 3,203 | 3,191 | ||||||||||
Total backlog | $25,700 | $15,109 | $40,809 | $39,515 | ||||||||||
1 Funded backlog represents firm orders for which funding is contractually obligated by the customer. | ||||||||||||||
2 Unfunded backlog represents firm orders for which, as of the reporting date, funding is not contractually obligated by the customer. Unfunded backlog excludes unexercised contract options and unfunded indefinite delivery, indefinite quantity (ID/IQ) orders. | ||||||||||||||
3 Effective January 1, 2012, the company transferred its missile business (principally the ICBM program), previously reported in Aerospace Systems to Technical Services. As a result of this realignment, $599 million of backlog was transferred from Aerospace Systems to Technical Services. Total backlog as of December 31, 2011, reflects this transfer. | ||||||||||||||
New Awards — The estimated value of contract awards included in backlog during the three months and twelve months ended December 31, 2012, was $6.2 billion and $26.5 billion, respectively. | ||||||||||||||
SCHEDULE 6 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
SEGMENT REALIGNMENT | ||||||||||||||
($ in millions) | ||||||||||||||
(Unaudited) | ||||||||||||||
SEGMENT SALES 3 | SEGMENT OPERATING INCOME 3 | |||||||||||||
2009 | 2010 | 2011 | 2011 | 2009 | 2010 | 2011 | 2011 | |||||||
Total | Total | Total | Three Months Ended | Total | Total | Total | Three Months Ended | |||||||
Year | Year | Year | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Year | Year | Year | Mar 31 | Jun 30 | Sep 30 | Dec 31 | |
AS REPORTED 1 | ||||||||||||||
Aerospace Systems | $ 10,419 | $ 10,910 | $ 10,458 | $ 2,736 | $ 2,592 | $ 2,572 | $ 2,558 | $ 1,071 | $ 1,256 | $ 1,261 | $ 301 | $ 331 | $ 304 | $ 325 |
Electronic Systems | 7,671 | 7,613 | 7,372 | 1,808 | 1,791 | 1,905 | 1,868 | 969 | 1,023 | 1,070 | 237 | 284 | 293 | 256 |
Information Systems | 8,536 | 8,395 | 7,921 | 2,025 | 2,031 | 1,955 | 1,910 | 624 | 756 | 766 | 194 | 189 | 187 | 196 |
Technical Services | 2,776 | 3,230 | 2,699 | 688 | 656 | 680 | 675 | 161 | 206 | 216 | 54 | 51 | 55 | 56 |
Intersegment Eliminations | (1,752) | (2,005) | (2,038) | (523) | (510) | (500) | (505) | (190) | (231) | (258) | (65) | (71) | (62) | (60) |
Total | $ 27,650 | $ 28,143 | $ 26,412 | $ 6,734 | $ 6,560 | $ 6,612 | $ 6,506 | $ 2,635 | $ 3,010 | $ 3,055 | $ 721 | $ 784 | $ 777 | $ 773 |
RECASTED AND REALIGNED 2 | ||||||||||||||
Aerospace Systems | $ 9,877 | $ 10,436 | $ 9,964 | $ 2,593 | $ 2,473 | $ 2,455 | $ 2,443 | $ 988 | $ 1,213 | $ 1,217 | $ 287 | $ 320 | $ 295 | $ 315 |
Electronic Systems | 7,671 | 7,613 | 7,372 | 1,808 | 1,791 | 1,905 | 1,868 | 969 | 1,023 | 1,070 | 237 | 284 | 293 | 256 |
Information Systems | 8,536 | 8,395 | 7,921 | 2,025 | 2,031 | 1,955 | 1,910 | 624 | 756 | 766 | 194 | 189 | 187 | 196 |
Technical Services | 3,323 | 3,705 | 3,193 | 831 | 776 | 796 | 790 | 245 | 249 | 260 | 68 | 62 | 63 | 67 |
Intersegment Eliminations | (1,757) | (2,006) | (2,038) | (523) | (511) | (499) | (505) | (191) | (231) | (258) | (65) | (71) | (61) | (61) |
Total | $ 27,650 | $ 28,143 | $ 26,412 | $ 6,734 | $ 6,560 | $ 6,612 | $ 6,506 | $ 2,635 | $ 3,010 | $ 3,055 | $ 721 | $ 784 | $ 777 | $ 773 |
1 As reported are the amounts presented in the 2011 Form 10-K, filed February 8, 2012. | ||||||||||||||
2 Recasted and realigned amounts for years 2009 through 2011, as well as the three month periods in 2011, to reflect the January 2012 transfer of the company's missile business (principally the ICBM program), previously reported in Aerospace Systems and transferred to Technical Services. | ||||||||||||||
3 Management uses segment sales and segment operating income as internal measures of financial performance for the individual operating segments. |