- EPS from Continuing Operations Increase 4 Percent to $1.88
- Guidance for 2012 EPS from Continuing Operations Increased to $7.05 - $7.25
- Sales Total $6.3 Billion
- Cash Provided by Operations Increases to $876 Million; Free Cash Flow Increases to $825 Million
- Total Backlog Increases to $41.5 Billion; New Business Awards Total $8.8 Billion
- 4.9 Million Shares Repurchased
FALLS CHURCH, Va. - July 25, 2012 - Northrop Grumman Corporation (NYSE:NOC) reported second quarter 2012 earnings from continuing operations of $480 million, or $1.88 per diluted share, compared with $520 million, or $1.81 per diluted share, in the second quarter of 2011. On a pension-adjusted basis, earnings per diluted share from continuing operations increased 13 percent to $1.79 from $1.59. During the quarter the company repurchased 4.9 million shares of its common stock for approximately $295 million; $1.1 billion remains on its current share repurchase authorization.
"Our businesses continue to perform well, and we continue to create value through a combination of performance and effective cash deployment. We're especially pleased with this quarter's robust level of new business capture, the increase in total backlog, and our strong cash generation. Based on the strength of our year-to-date results, we are again increasing our earnings guidance to a range of $7.05 to $7.25 per share," said Wes Bush, chairman, chief executive officer and president.
Table 1 — Financial Highlights
Second Quarter | Six Months | |||||||||||||
$ in millions, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||
Sales | $6,274 | $6,560 | $12,472 | $13,294 | ||||||||||
Segment operating income 1 | 782 | 784 | 1,571 | 1,505 | ||||||||||
Segment operating margin rate 1 | 12.5% | 12.0% | 12.6% | 11.3% | ||||||||||
Operating income | 774 | 841 | 1,570 | 1,652 | ||||||||||
Operating margin rate | 12.3% | 12.8% | 12.6% | 12.4% | ||||||||||
Earnings from continuing operations | 480 | 520 | 986 | 1,016 | ||||||||||
Diluted EPS from continuing operations | 1.88 | 1.81 | 3.84 | 3.48 | ||||||||||
Net earnings | 480 | 520 | 986 | 1,050 | ||||||||||
Diluted EPS | 1.88 | 1.81 | 3.84 | 3.59 | ||||||||||
Cash provided by (used in) continuing operations | 876 | (34) | 771 | 78 | ||||||||||
Free cash flow provided by (used in) continuing operations 1 | 825 | (128) | 639 | (139) | ||||||||||
Pension-adjusted Operating Highlights | ||||||||||||||
Operating income | 774 | 841 | 1,570 | 1,652 | ||||||||||
Net pension adjustment 1 | (35) | (99) | (67) | (202) | ||||||||||
Pension-adjusted operating income 1 | $739 | $742 | $1,503 | $1,450 | ||||||||||
Pension-adjusted operating margin rate 1 | 11.8% | 11.3% | 12.1% | 10.9% | ||||||||||
Pension-adjusted Per Share Data | ||||||||||||||
Diluted EPS from continuing operations | $1.88 | $1.81 | $3.84 | $3.48 | ||||||||||
After-tax net pension adjustment per share 1 | (0.09) | (0.22) | (0.17) | (0.45) | ||||||||||
Pension-adjusted diluted EPS from continuing operations 1 | $1.79 | $1.59 | $3.67 | $3.03 | ||||||||||
Weighted average shares outstanding — Basic | 250.8 | 282.6 | 252.0 | 287.2 | ||||||||||
Dilutive effect of stock options and stock awards | 3.9 | 4.6 | 4.5 | 5.0 | ||||||||||
Weighted average shares outstanding — Diluted | 254.7 | 287.2 | 256.5 | 292.2 | ||||||||||
1 Non-GAAP metric — see definitions at the end of this press release. |
Second Quarter | Six Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Cash provided by continuing operations before discretionary pension contributions 1 | $876 | $378 | 498 | $771 | $490 | 281 | ||||||||
After-tax discretionary pension pre-funding impact | - | (412) | 412 | - | (412) | 412 | ||||||||
Cash provided by (used in) continuing operations | $876 | $(34) | 910 | $771 | $78 | 693 | ||||||||
Less: | ||||||||||||||
Capital expenditures | (51) | (94) | 43 | (132) | (217) | 85 | ||||||||
Free cash flow provided by (used in) continuing operations 1 | $825 | $(128) | 953 | $639 | $(139) | 778 | ||||||||
After-tax discretionary pension pre-funding impact | - | 412 | (412) | 412 | (412) | |||||||||
Free cash flow provided by continuing operations before discretionary pension contributions 1 | $825 | $284 | 541 | $639 | $273 | 366 |
1 | Non-GAAP metric — see definitions at the end of this press release. |
$ in millions, except per share amounts | Prior | Current | ||||||||||||
Sales | 24,700 | -- | 25,400 | 24,700 | -- | 25,400 | ||||||||
Segment operating margin % 1 | Mid 11% | High 11% | ||||||||||||
Operating margin % | Low 11% | Mid 11% | ||||||||||||
Diluted EPS from continuing operations | 6.70 | -- | 6.95 | 7.05 | -- | 7.25 | ||||||||
Cash provided by operations | 2,300 | -- | 2,600 | 2,300 | -- | 2,600 | ||||||||
Free cash flow 1 | 1,800 | -- | 2,100 | 1,800 | -- | 2,100 | ||||||||
1 Non-GAAP metric - see definitions at the end of this press release |
$ millions | June 30, 2012 | December 31, 2011 | ||||||||||||
Total debt | $3,937 | $3,948 | ||||||||||||
Cash and cash equivalents | 3,148 | 3,002 | ||||||||||||
Net debt 1 | $789 | $ 946 | ||||||||||||
Net debt to total capital ratio 2 | 5.4% | 6.6% | ||||||||||||
1 Total debt less cash and cash equivalents. | ||||||||||||||
2 Net debt divided by the sum of shareholders' equity and total debt. | ||||||||||||||
|
Second Quarter | Six Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | ||||||||||||||
Aerospace Systems | $2,404 | $2,473 | (3%) | $4,787 | $5,066 | (6%) | ||||||||
Electronic Systems | 1,744 | 1,791 | (3%) | 3,468 | 3,599 | (4%) | ||||||||
Information Systems | 1,856 | 2,031 | (9%) | 3,700 | 4,056 | (9%) | ||||||||
Technical Services | 783 | 776 | 1% | 1,533 | 1,607 | (5%) | ||||||||
Intersegment eliminations | (513) | (511) | (1,016) | (1,034) | ||||||||||
6,274 | 6,560 | (4%) | 12,472 | 13,294 | (6%) | |||||||||
Segment operating income 1 | ||||||||||||||
Aerospace Systems | 292 | 320 | (9%) | 571 | 607 | (6%) | ||||||||
Electronic Systems | 276 | 284 | (3%) | 580 | 521 | 11% | ||||||||
Information Systems | 202 | 189 | 7% | 407 | 383 | 6% | ||||||||
Technical Services | 74 | 62 | 19% | 144 | 130 | 11% | ||||||||
Intersegment eliminations | (62) | (71) | (131) | (136) | ||||||||||
Segment operating income 1 | 782 | 784 | — | 1,571 | 1,505 | 4% | ||||||||
Segment operating margin rate 1 | 12.5 % | 12.0 % | 50 bps | 12.6 % | 11.3 % | 130 bps | ||||||||
Reconciliation to operating income | ||||||||||||||
Unallocated corporate expenses | (39) | (38) | 3% | (62) | (48) | 29% | ||||||||
Net pension adjustment 1 | 35 | 99 | (65%) | 67 | 202 | (67%) | ||||||||
Reversal of royalty income included above | (4) | (4) | — | (6) | (7) | (14%) | ||||||||
Operating income | 774 | 841 | (8%) | 1,570 | 1,652 | (5%) | ||||||||
Operating margin rate | 12.3 % | 12.8 % | (50) bps | 12.6 % | 12.4 % | 20 bps | ||||||||
Interest expense | (52) | (53) | (2%) | (105) | (111) | (5%) | ||||||||
Other, net | 5 | — | 18 | 5 | 260% | |||||||||
Earnings from continuing operations before income taxes | 727 | 788 | 1,483 | 1,546 | ||||||||||
Federal and foreign income tax expense | (247) | (268) | (8%) | (497) | (530) | (6%) | ||||||||
Earnings from continuing operations | 480 | 520 | (8%) | 986 | 1,016 | (3%) | ||||||||
Earnings from discontinued operations | — | — | — | 34 | ||||||||||
Net earnings | $480 | $520 | (8%) | $986 | $1,050 | (6%) |
1 | Non-GAAP metric — see definitions at the end of this press release. |
Second Quarter | Six Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $2,404 | $2,473 | (2.8)% | $ | 4,787 | $5,066 | (5.5)% | |||||||
Operating income | 292 | 320 | (8.8)% | 571 | 607 | (5.9)% | ||||||||
Operating margin rate | 12.1 % | 12.9 % | 11.9 % | 12.0 % |
Second Quarter | Six Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 1,744 | $ 1,791 | (2.6)% | $ 3,468 | $ 3,599 | (3.6)% | ||||||||
Operating income | 276 | 284 | (2.8)% | 580 | 521 | 11.3% | ||||||||
Operating margin rate | 15.8% | 15.9% | 16.7% | 14.5% |
Second Quarter | Six Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $1,856 | $2,031 | (8.6)% | $3,700 | $4,056 | (8.8)% | ||||||||
Operating income | 202 | 189 | 6.9% | 407 | 383 | 6.3% | ||||||||
Operating margin rate | 10.9 % | 9.3 % | 11.0 % | 9.4 % |
Second Quarter | Six Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $783 | $776 | 0.9% | $ | 1,533 | $1,607 | (4.6)% | |||||||
Operating income | 74 | 62 | 19.4% | 144 | 130 | 10.8% | ||||||||
Operating margin rate | 9.5 % | 8.0 % | 9.4 % | 8.1 % |
SCHEDULE 1 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended
June 30 |
Six Months Ended
June 30 |
|||||||||||||
$ in millions, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||
Sales | ||||||||||||||
Product | $ 3,399 | $ 3,709 | $ 6,740 | $ 7,572 | ||||||||||
Service | 2,875 | 2,851 | 5,732 | 5,722 | ||||||||||
Total sales | 6,274 | 6,560 | 12,472 | 13,294 | ||||||||||
Operating costs and expenses | ||||||||||||||
Product | 2,604 | 2,860 | 5,131 | 5,863 | ||||||||||
Service | 2,316 | 2,303 | 4,630 | 4,655 | ||||||||||
General and administrative expenses | 580 | 556 | 1,141 | 1,124 | ||||||||||
Operating income | 774 | 841 | 1,570 | 1,652 | ||||||||||
Other (expense) income | ||||||||||||||
Interest expense | (52) | (53) | (105) | (111) | ||||||||||
Other, net | 5 | — | 18 | 5 | ||||||||||
Earnings from continuing operations before income taxes | 727 | 788 | 1,483 | 1,546 | ||||||||||
Federal and foreign income tax expense | 247 | 268 | 497 | 530 | ||||||||||
Earnings from continuing operations | 480 | 520 | 986 | 1,016 | ||||||||||
Earnings from discontinued operations, net of tax | — | — | — | 34 | ||||||||||
Net earnings | $ 480 | $ 520 | $ 986 | $ 1,050 | ||||||||||
Basic earnings per share | ||||||||||||||
Continuing operations | $ 1.91 | $ 1.84 | $ 3.91 | $ 3.54 | ||||||||||
Discontinued operations | — | — | — | 0.12 | ||||||||||
Basic earnings per share | $ 1.91 | $ 1.84 | $ 3.91 | $ 3.66 | ||||||||||
Weighted-average common shares outstanding, in millions | 250.8 | 282.6 | 252.0 | 287.2 | ||||||||||
Diluted earnings per share | ||||||||||||||
Continuing operations | $ 1.88 | $ 1.81 | $ 3.84 | $ 3.48 | ||||||||||
Discontinued operations | — | — | — | 0.11 | ||||||||||
Diluted earnings per share | $ 1.88 | $ 1.81 | $ 3.84 | $ 3.59 | ||||||||||
Weighted-average diluted shares outstanding, in millions | 254.7 | 287.2 | 256.5 | 292.2 | ||||||||||
Net earnings (from above) | $ 480 | $ 520 | $ 986 | $ 1,050 | ||||||||||
Other comprehensive income | ||||||||||||||
Change in cumulative translation adjustment | (15) | — | (9) | 27 | ||||||||||
Change in unrealized gain on marketable securities and cash flow hedges, net of tax | — | — | — | (2) | ||||||||||
Change in unamortized benefit plan costs, net of tax | 54 | 14 | 104 | 35 | ||||||||||
Other comprehensive income, net of tax | 39 | 14 | 95 | 60 | ||||||||||
Comprehensive income | $ 519 | $ 534 | $1,081 | $ 1,110 |
SCHEDULE 2 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||||||
(Unaudited) | ||||||||||||||
June 30, | December 31, | |||||||||||||
$ in millions | 2012 | 2011 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ 3,148 | $ 3,002 | ||||||||||||
Accounts receivable, net of progress payments | 3,119 | 2,964 | ||||||||||||
Inventoried costs, net of progress payments | 704 | 873 | ||||||||||||
Deferred tax assets | 504 | 496 | ||||||||||||
Prepaid expenses and other current assets | 225 | 411 | ||||||||||||
Total current assets | 7,700 | 7,746 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $4,094 in 2012 and $3,933 in 2011 | 2,935 | 3,047 | ||||||||||||
Goodwill | 12,344 | 12,374 | ||||||||||||
Non-current deferred tax assets | 838 | 900 | ||||||||||||
Other non-current assets | 1,409 | 1,344 | ||||||||||||
Total assets | $25,226 | $25,411 | ||||||||||||
Liabilities | ||||||||||||||
Trade accounts payable | $ 1,191 | $ 1,481 | ||||||||||||
Accrued employees compensation | 1,020 | 1,196 | ||||||||||||
Advance payments and billings in excess of costs incurred | 1,826 | 1,777 | ||||||||||||
Other current liabilities | 1,571 | 1,681 | ||||||||||||
Total current liabilities | 5,608 | 6,135 | ||||||||||||
Long-term debt, net of current portion | 3,932 | 3,935 | ||||||||||||
Pension and post-retirement plan liabilities | 4,067 | 4,079 | ||||||||||||
Other non-current liabilities | 904 | 926 | ||||||||||||
Total liabilities | 14,511 | 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—248,039,410; 2011—253,889,622 | 248 | 254 | ||||||||||||
Paid-in capital | 3,443 | 3,873 | ||||||||||||
Retained earnings | 10,419 | 9,699 | ||||||||||||
Accumulated other comprehensive loss | (3,395) | (3,490) | ||||||||||||
Total shareholders' equity | 10,715 | 10,336 | ||||||||||||
Total liabilities and shareholders' equity | $25,226 | $25,411 |
SCHEDULE 3 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
Six Months Ended
June 30 |
||||||||||||||
$ in millions | 2012 | 2011 | ||||||||||||
Operating activities | ||||||||||||||
Sources of cash—continuing operations | ||||||||||||||
Cash received from customers | ||||||||||||||
Collections on billings | $ 9,911 | $ 11,028 | ||||||||||||
Progress payments | 2,553 | 1,975 | ||||||||||||
Other cash receipts | 38 | 80 | ||||||||||||
Total sources of cash—continuing operations | 12,502 | 13,083 | ||||||||||||
Uses of cash—continuing operations | ||||||||||||||
Cash paid to suppliers and employees | (10,969) | (11,692) | ||||||||||||
Pension contributions | (33) | (550) | ||||||||||||
Interest paid, net of interest received | (102) | (119) | ||||||||||||
Income taxes paid, net of refunds received | (584) | (613) | ||||||||||||
Excess tax benefits from stock-based compensation | (29) | (21) | ||||||||||||
Other cash payments | (14) | (10) | ||||||||||||
Total uses of cash—continuing operations | (11,731) | (13,005) | ||||||||||||
Cash provided by continuing operations | 771 | 78 | ||||||||||||
Cash used in discontinued operations | — | (232) | ||||||||||||
Net cash provided by (used in) operating activities | 771 | (154) | ||||||||||||
Investing activities | ||||||||||||||
Continuing operations | ||||||||||||||
Maturities of short-term investments | 250 | — | ||||||||||||
Capital expenditures | (132) | (217) | ||||||||||||
Contribution received from the spin-off of shipbuilding business | — | 1,429 | ||||||||||||
Proceeds from sale of business, net of cash divested | 43 | — | ||||||||||||
Other investing activities, net | 1 | 41 | ||||||||||||
Cash provided by investing activities from continuing operations | 162 | 1,253 | ||||||||||||
Cash used in investing activities from discontinued operations | — | (63) | ||||||||||||
Net cash provided by investing activities | 162 | 1,190 | ||||||||||||
Financing activities | ||||||||||||||
Common stock repurchases | (555) | (1,013) | ||||||||||||
Cash dividends paid | (265) | (277) | ||||||||||||
Proceeds from exercises of stock options | 67 | 86 | ||||||||||||
Excess tax benefits from stock-based compensation | 29 | 21 | ||||||||||||
Payments of long-term debt | — | (750) | ||||||||||||
Other financing activities, net | (63) | 6 | ||||||||||||
Net cash used in financing activities | (787) | (1,927) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 146 | (891) | ||||||||||||
Cash and cash equivalents, beginning of year | 3,002 | 3,701 | ||||||||||||
Cash and cash equivalents, end of period | $ 3,148 | $ 2,810 |
SCHEDULE 4 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
Six Months Ended
June 30 |
||||||||||||||
$ in millions | 2012 | 2011 | ||||||||||||
Reconciliation of net earnings to net cash provided by (used in) operating activities | ||||||||||||||
Net earnings | $986 | $1,050 | ||||||||||||
Net earnings from discontinued operations | — | (34) | ||||||||||||
Adjustments to reconcile to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation | 212 | 218 | ||||||||||||
Amortization | 31 | 37 | ||||||||||||
Stock-based compensation | 76 | 66 | ||||||||||||
Excess tax benefits from stock-based compensation | (29) | (21) | ||||||||||||
(Increase) decrease in assets: | ||||||||||||||
Accounts receivable, net | (175) | (164) | ||||||||||||
Inventoried costs, net | 143 | 6 | ||||||||||||
Prepaid expenses and other assets | (95) | 5 | ||||||||||||
Increase (decrease) in liabilities: | ||||||||||||||
Accounts payable and accruals | (453) | (757) | ||||||||||||
Deferred income taxes | (21) | 79 | ||||||||||||
Income taxes payable | (22) | 9 | ||||||||||||
Retiree benefits | 137 | (440) | ||||||||||||
Other, net | (19) | 24 | ||||||||||||
Cash provided by continuing operations | 771 | 78 | ||||||||||||
Cash used in discontinued operations | — | (232) | ||||||||||||
Net cash provided by (used in) operating activities | $771 | $(154) |
SCHEDULE 5 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
TOTAL BACKLOG AND CONTRACT AWARDS | ||||||||||||||
(Unaudited) | ||||||||||||||
June 30, 2012 |
December 31,
2011 |
|||||||||||||
$ in millions | Funded 1 | Unfunded 2 |
Total
Backlog |
Total
Backlog 3 |
||||||||||
Aerospace Systems | $11,855 | $9,139 | $20,994 | $18,638 | ||||||||||
Electronic Systems | 7,770 | 1,509 | 9,279 | 9,123 | ||||||||||
Information Systems | 3,984 | 4,412 | 8,396 | 8,563 | ||||||||||
Technical Services | 2,336 | 542 | 2,878 | 3,191 | ||||||||||
Total backlog | $25,945 | $15,602 | $41,547 | $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 Intercontinental Ballistic Missile 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 ended June 30, 2012, was $8.8 billion. | ||||||||||||||
SCHEDULE 6 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
SEGMENT REALIGNMENT | ||||||||||||||
($ 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 Intercontinental Ballistic Missile (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. |