- EPS from Continuing Operations of $1.82
- Guidance for 2012 EPS from Continuing Operations Increased to $7.35 to $7.40
- Cash Provided by Operations of $812 Million and Free Cash Flow of $748 Million
- Guidance Increased for 2012 Cash Provided by Operations and Free Cash Flow
- Sales Total $6.3 Billion
- 4.4 Million Shares Repurchased
FALLS CHURCH, Va. – Oct. 25, 2012 – Northrop Grumman Corporation (NYSE:NOC) reported third quarter 2012 earnings from continuing operations of $459 million, or $1.82 per diluted share, compared with $520 million, or $1.86 per diluted share, in the third quarter of 2011. The change in earnings and earnings per share is largely due to a $66 million decrease in net pension income in the 2012 third quarter. On a pension-adjusted basis, earnings per diluted share from continuing operations increased 6 percent to $1.73 from $1.63. During the third quarter the company repurchased 4.4 million shares of its common stock for approximately $290 million. Year to date through Sept. 30, 2012, the company has repurchased 13.6 million shares of its common stock, and $2.0 billion remains on its current share repurchase authorization.
"Our focus on performance, effective cash deployment, and portfolio alignment continues to create value for our shareholders, customers and employees. We are working closely with our customers to bring innovative, affordable solutions to support their needs in today's fiscally constrained environment," said Wes Bush, chairman, chief executive officer and president.
Table 1 — Financial Highlights | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ in millions, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||
Sales | $ 6,270 | $ 6,612 | $ 18,742 | $ 19,906 | ||||||||||
Segment operating income 1 | 730 | 777 | 2,301 | 2,282 | ||||||||||
Segment operating margin rate 1 | 11.6% | 11.8% | 12.3% | 11.5% | ||||||||||
Operating income | 736 | 825 | 2,306 | 2,477 | ||||||||||
Operating margin rate | 11.7% | 12.5% | 12.3% | 12.4% | ||||||||||
Earnings from continuing operations | 459 | 520 | 1,445 | 1,536 | ||||||||||
Diluted EPS from continuing operations | 1.82 | 1.86 | 5.67 | 5.34 | ||||||||||
Net earnings | 459 | 520 | 1,445 | 1,570 | ||||||||||
Diluted EPS | 1.82 | 1.86 | 5.67 | 5.45 | ||||||||||
Cash provided by continuing operations | 812 | 948 | 1,583 | 1,026 | ||||||||||
Free cash flow provided by continuing operations 1 | 748 | 839 | 1,387 | 700 | ||||||||||
Pension-adjusted Operating Highlights | ||||||||||||||
Operating income | 736 | 825 | 2,306 | 2,477 | ||||||||||
Net FAS/CAS pension adjustment 1 | (34) | (100) | (101) | (302) | ||||||||||
Pension-adjusted operating income 1 | $ 702 | $ 725 | $ 2,205 | $ 2,175 | ||||||||||
Pension-adjusted operating margin rate 1 | 11.2% | 11.0% | 11.8% | 10.9% | ||||||||||
Pension-adjusted Per Share Data | ||||||||||||||
Diluted EPS from continuing operations | $ 1.82 | $ 1.86 | $ 5.67 | $ 5.34 | ||||||||||
After-tax net pension adjustment per share 1 | (0.09) | (0.23) | (0.26) | (0.68) | ||||||||||
Pension-adjusted diluted EPS from continuing operations 1 | $ 1.73 | $ 1.63 | $ 5.41 | $ 4.66 | ||||||||||
Weighted average shares outstanding — Basic | 247.2 | 274.9 | 250.4 | 283.1 | ||||||||||
Dilutive effect of stock options and stock awards | 4.9 | 4.4 | 4.6 | 4.8 | ||||||||||
Weighted average shares outstanding — Diluted | 252.1 | 279.3 | 255.0 | 287.9 | ||||||||||
1 Non-GAAP metric — see definitions at the end of this press release. |
Table 2 — Cash Flow Highlights | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Cash provided by continuing operations before discretionary pension contributions 1 | $ 1,033 | $ 903 | 130 | $ 1,804 | $ 1,393 | 411 | ||||||||
After-tax discretionary pension pre-funding impact | (221) | 45 | (266) | (221) | (367) | 146 | ||||||||
Cash provided by continuing operations | $ 812 | $ 948 | (136) | $ 1,583 | $ 1,026 | 557 | ||||||||
Less: | ||||||||||||||
Capital expenditures | (64) | (109) | 45 | (196) | (326) | 130 | ||||||||
Free cash flow provided by continuing operations 1 | $ 748 | $ 839 | (91) | $ 1,387 | $ 700 | 687 | ||||||||
After-tax discretionary pension pre-funding impact | 221 | (45) | 266 | 221 | 367 | (146) | ||||||||
Free cash flow provided by continuing operations before discretionary pension contributions 1 | $ 969 | $ 794 | 175 | $ 1,608 | $ 1,067 | 541 | ||||||||
1 Non-GAAP metric — see definitions at the end of this press release. |
2012 Guidance Updated | ||||||||||||||
$ in millions, except per share amounts | Prior | Current | ||||||||||||
Sales | 24,700 -25,400 | ~25,000 | ||||||||||||
Segment operating margin % 1 | High 11% | ~12% | ||||||||||||
Operating margin % | Mid 11% | High 11% | ||||||||||||
Diluted EPS from continuing operations | 7.05 - 7.25 | 7.35 - 7.40 | ||||||||||||
Cash provided by operations before discretionary pension contributions | 2,300 - 2,600 | 2,500 - 2,800 | ||||||||||||
Free cash flow before discretionary pension contributions 1 | 1,800 - 2,100 | 2,100 - 2,400 | ||||||||||||
1 Non-GAAP metric - see definitions at the end of this press release. |
Table 3 — Business Results | ||||||||||||||
Consolidated Sales & Segment Operating Income 1 | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | ||||||||||||||
Aerospace Systems | $ 2,586 | $ 2,455 | 5% | $ 7,373 | $ 7,521 | (2%) | ||||||||
Electronic Systems | 1,707 | 1,905 | (10%) | 5,175 | 5,504 | (6%) | ||||||||
Information Systems | 1,776 | 1,955 | (9%) | 5,476 | 6,011 | (9%) | ||||||||
Technical Services | 748 | 796 | (6%) | 2,281 | 2,403 | (5%) | ||||||||
Intersegment eliminations | (547) | (499) | (1,563) | (1,533) | ||||||||||
6,270 | 6,612 | (5%) | 18,742 | 19,906 | (6%) | |||||||||
Segment operating income 1 | ||||||||||||||
Aerospace Systems | 288 | 295 | (2%) | 859 | 902 | (5%) | ||||||||
Electronic Systems | 279 | 293 | (5%) | 859 | 814 | 6% | ||||||||
Information Systems | 170 | 187 | (9%) | 577 | 570 | 1% | ||||||||
Technical Services | 62 | 63 | (2%) | 206 | 193 | 7% | ||||||||
Intersegment eliminations | (69) | (61) | (200) | (197) | ||||||||||
Segment operating income 1 | 730 | 777 | (6%) | 2,301 | 2,282 | 1% | ||||||||
Segment operating margin rate 1 | 11.6% | 11.8% | (20) bps | 12.3% | 11.5% | 80 bps | ||||||||
Reconciliation to operating income | ||||||||||||||
Unallocated corporate expenses | (27) | (48) | 44% | (89) | (96) | 7% | ||||||||
Net FAS/CAS pension adjustment 1 | 34 | 100 | (66%) | 101 | 302 | (67%) | ||||||||
Reversal of royalty income included above | (1) | (4) | 75% | (7) | (11) | 36% | ||||||||
Operating income | 736 | 825 | (11%) | 2,306 | 2,477 | (7%) | ||||||||
Operating margin rate | 11.7% | 12.5% | (80) bps | 12.3% | 12.4% | (10) bps | ||||||||
Interest expense | (53) | (57) | 7% | (158) | (168) | 6% | ||||||||
Other, net | 12 | (13) | 192% | 30 | (8) | 475% | ||||||||
Earnings from continuing operations before income taxes | 695 | 755 | 2,178 | 2,301 | ||||||||||
Federal and foreign income tax expense | (236) | (235) | — | (733) | (765) | 4% | ||||||||
Earnings from continuing operations | 459 | 520 | (12%) | 1,445 | 1,536 | (6%) | ||||||||
Earnings from discontinued operations | — | — | — | 34 | ||||||||||
Net earnings | $ 459 | $ 520 | (12%) | $ 1,445 | $ 1,570 | (8%) | ||||||||
1 Non-GAAP metric — see definitions at the end of this press release. |
Aerospace Systems | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 2,586 | $ 2,455 | 5.3% | $ 7,373 | $ 7,521 | (2.0%) | ||||||||
Operating income | 288 | 295 | (2.4%) | 859 | 902 | (4.8%) | ||||||||
Operating margin rate | 11.1% | 12.0% | 11.7% | 12.0% |
Electronic Systems | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 1,707 | $ 1,905 | (10.4%) | $ 5,175 | $ 5,504 | (6.0%) | ||||||||
Operating income | 279 | 293 | (4.8%) | 859 | 814 | 5.5% | ||||||||
Operating margin rate | 16.3% | 15.4% | 16.6% | 14.8% |
Information Systems | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 1,776 | $ 1,955 | (9.2%) | $ 5,476 | $ 6,011 | (8.9%) | ||||||||
Operating income | 170 | 187 | (9.1%) | 577 | 570 | 1.2% | ||||||||
Operating margin rate | 9.6% | 9.6% | 10.5% | 9.5% |
Technical Services | ||||||||||||||
Third Quarter | Nine Months | |||||||||||||
$ millions | 2012 | 2011 | Change | 2012 | 2011 | Change | ||||||||
Sales | $ 748 | $ 796 | (6.0%) | $ 2,281 | $ 2,403 | (5.1%) | ||||||||
Operating income | 62 | 63 | (1.6%) | 206 | 193 | 6.7% | ||||||||
Operating margin rate | 8.3% | 7.9% | 9.0% | 8.0% |
SCHEDULE 1 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||||||||||||
$ in millions, except per share amounts | 2012 | 2011 | 2012 | 2011 | ||||||||||
Sales | ||||||||||||||
Product | $ 3,487 | $ 3,780 | $ 10,227 | $ 11,352 | ||||||||||
Service | 2,783 | 2,832 | 8,515 | 8,554 | ||||||||||
Total sales | 6,270 | 6,612 | 18,742 | 19,906 | ||||||||||
Operating costs and expenses | ||||||||||||||
Product | 2,629 | 2,846 | 7,760 | 8,709 | ||||||||||
Service | 2,333 | 2,352 | 6,963 | 7,007 | ||||||||||
General and administrative expenses | 572 | 589 | 1,713 | 1,713 | ||||||||||
Operating income | 736 | 825 | 2,306 | 2,477 | ||||||||||
Other (expense) income | ||||||||||||||
Interest expense | (53) | (57) | (158) | (168) | ||||||||||
Other, net | 12 | (13) | 30 | (8) | ||||||||||
Earnings from continuing operations before income taxes | 695 | 755 | 2,178 | 2,301 | ||||||||||
Federal and foreign income tax expense | 236 | 235 | 733 | 765 | ||||||||||
Earnings from continuing operations | 459 | 520 | 1,445 | 1,536 | ||||||||||
Earnings from discontinued operations, net of tax | — | — | — | 34 | ||||||||||
Net earnings | $459 | $520 | $1,445 | $1,570 | ||||||||||
Basic earnings per share | ||||||||||||||
Continuing operations | $1.86 | $1.89 | $5.77 | $5.43 | ||||||||||
Discontinued operations | — | — | — | 0.12 | ||||||||||
Basic earnings per share | $1.86 | $1.89 | $5.77 | $5.55 | ||||||||||
Weighted-average common shares outstanding, in millions | 247.2 | 274.9 | 250.4 | 283.1 | ||||||||||
Diluted earnings per share | ||||||||||||||
Continuing operations | $1.82 | $1.86 | $5.67 | $5.34 | ||||||||||
Discontinued operations | — | — | — | 0.11 | ||||||||||
Diluted earnings per share | $1.82 | $1.86 | $5.67 | $5.45 | ||||||||||
Weighted-average diluted shares outstanding, in millions | 252.1 | 279.3 | 255.0 | 287.9 | ||||||||||
Net earnings (from above) | $459 | $520 | $1,445 | $1,570 | ||||||||||
Other comprehensive income | ||||||||||||||
Change in cumulative translation adjustment | 12 | (25) | 3 | 2 | ||||||||||
Change in unrealized gain on marketable securities and cash flow hedges, net of tax | (1) | — | (1) | (2) | ||||||||||
Change in unamortized benefit plan costs, net of tax | 50 | 22 | 154 | 57 | ||||||||||
Other comprehensive income, net of tax | 61 | (3) | 156 | 57 | ||||||||||
Comprehensive income | $520 | $517 | $ 1,601 | $1,627 |
SCHEDULE 2 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | ||||||||||||||
(Unaudited) | ||||||||||||||
, | ||||||||||||||
$ in millions |
September 30,
2012 |
December 31,
2011 |
||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $3,525 | $3,002 | ||||||||||||
Accounts receivable, net of progress payments | 2,973 | 2,964 | ||||||||||||
Inventoried costs, net of progress payments | 627 | 873 | ||||||||||||
Deferred tax assets | 560 | 496 | ||||||||||||
Prepaid expenses and other current assets | 217 | 411 | ||||||||||||
Total current assets | 7,902 | 7,746 | ||||||||||||
Property, plant and equipment, net of accumulated depreciation of $4,164 in 2012 and $3,933 in 2011 | 2,895 | 3,047 | ||||||||||||
Goodwill | 12,373 | 12,374 | ||||||||||||
Non-current deferred tax assets | 680 | 900 | ||||||||||||
Other non-current assets | 1,412 | 1,344 | ||||||||||||
Total assets | $25,262 | $25,411 | ||||||||||||
Liabilities | ||||||||||||||
Trade accounts payable | $1,194 | $1,481 | ||||||||||||
Accrued employee compensation | 1,036 | 1,196 | ||||||||||||
Advance payments and billings in excess of costs incurred | 1,838 | 1,777 | ||||||||||||
Other current liabilities | 1,622 | 1,681 | ||||||||||||
Total current liabilities | 5,690 | 6,135 | ||||||||||||
Long-term debt, net of current portion | 3,931 | 3,935 | ||||||||||||
Pension and post-retirement benefit plan liabilities | 3,754 | 4,079 | ||||||||||||
Other non-current liabilities | 940 | 926 | ||||||||||||
Total liabilities | 14,315 | 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—245,691,965; 2011—253,889,622 | 246 | 254 | ||||||||||||
Paid-in capital | 3,296 | 3,873 | ||||||||||||
Retained earnings | 10,739 | 9,699 | ||||||||||||
Accumulated other comprehensive loss | (3,334) | (3,490) | ||||||||||||
Total shareholders' equity | 10,947 | 10,336 | ||||||||||||
Total liabilities and shareholders' equity | $25,262 | $25,411 |
SCHEDULE 3 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
Nine Months Ended
September 30 |
||||||||||||||
$ in millions | 2012 | 2011 | ||||||||||||
Operating activities | ||||||||||||||
Sources of cash—continuing operations | ||||||||||||||
Cash received from customers | ||||||||||||||
Collections on billings | $15,632 | $16,527 | ||||||||||||
Progress payments | 3,233 | 3,119 | ||||||||||||
Other cash receipts | 67 | 103 | ||||||||||||
Total sources of cash—continuing operations | 18,932 | 19,749 | ||||||||||||
Uses of cash—continuing operations | ||||||||||||||
Cash paid to suppliers and employees | (16,015) | (17,131) | ||||||||||||
Pension contributions | (349) | (572) | ||||||||||||
Interest paid, net of interest received | (177) | (205) | ||||||||||||
Income taxes paid, net of refunds received | (760) | (791) | ||||||||||||
Excess tax benefits from stock-based compensation | (41) | (24) | ||||||||||||
Other cash payments | (7) | — | ||||||||||||
Total uses of cash—continuing operations | (17,349) | (18,723) | ||||||||||||
Cash provided by continuing operations | 1,583 | 1,026 | ||||||||||||
Cash used in discontinued operations | — | (232) | ||||||||||||
Net cash provided by operating activities | 1,583 | 794 | ||||||||||||
Investing activities | ||||||||||||||
Continuing operations | ||||||||||||||
Maturities of short-term investments | 250 | — | ||||||||||||
Capital expenditures | (196) | (326) | ||||||||||||
Contribution received from the spin-off of shipbuilding business | — | 1,429 | ||||||||||||
Other investing activities, net | 7 | 49 | ||||||||||||
Cash provided by investing activities from continuing operations | 61 | 1,152 | ||||||||||||
Cash used in investing activities from discontinued operations | — | (63) | ||||||||||||
Net cash provided by investing activities | 61 | 1,089 | ||||||||||||
Financing activities | ||||||||||||||
Common stock repurchases | (846) | (1,598) | ||||||||||||
Cash dividends paid | (401) | (414) | ||||||||||||
Proceeds from exercises of stock options | 153 | 97 | ||||||||||||
Excess tax benefits from stock-based compensation | 41 | 24 | ||||||||||||
Payments of long-term debt | — | (750) | ||||||||||||
Other financing activities, net | (68) | 3 | ||||||||||||
Net cash used in financing activities | (1,121) | (2,638) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 523 | (755) | ||||||||||||
Cash and cash equivalents, beginning of year | 3,002 | 3,701 | ||||||||||||
Cash and cash equivalents, end of period | $3,525 | $2,946 |
SCHEDULE 4 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
(Unaudited) | ||||||||||||||
Nine Months Ended
September 30 |
||||||||||||||
$ in millions | 2012 | 2011 | ||||||||||||
Reconciliation of net earnings to net cash provided by operating activities | ||||||||||||||
Net earnings | $1,445 | $1,570 | ||||||||||||
Net earnings from discontinued operations | — | (34) | ||||||||||||
Adjustments to reconcile to net cash provided by operating activities: | ||||||||||||||
Depreciation | 325 | 334 | ||||||||||||
Amortization | 46 | 53 | ||||||||||||
Stock-based compensation | 111 | 97 | ||||||||||||
Excess tax benefits from stock-based compensation | (41) | (24) | ||||||||||||
(Increase) decrease in assets: | ||||||||||||||
Accounts receivable, net | (27) | (20) | ||||||||||||
Inventoried costs, net | 224 | 22 | ||||||||||||
Prepaid expenses and other assets | (90) | 11 | ||||||||||||
Increase (decrease) in liabilities: | ||||||||||||||
Accounts payable and accruals | (370) | (848) | ||||||||||||
Deferred income taxes | 47 | 205 | ||||||||||||
Income taxes payable | 32 | 4 | ||||||||||||
Retiree benefits | (99) | (416) | ||||||||||||
Other, net | (20) | 72 | ||||||||||||
Cash provided by continuing operations | 1,583 | 1,026 | ||||||||||||
Cash used in discontinued operations | — | (232) | ||||||||||||
Net cash provided by operating activities | $1,583 | $794 |
SCHEDULE 5 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
TOTAL BACKLOG AND CONTRACT AWARDS | ||||||||||||||
(Unaudited) | ||||||||||||||
September 30, 2012 | December 31, 2011 | |||||||||||||
$ in millions | Funded 1 | Unfunded 2 | Total Backlog | Total Backlog 3 | ||||||||||
Aerospace Systems | $11,040 | $8,901 | $19,941 | $18,638 | ||||||||||
Electronic Systems | 7,675 | 1,455 | 9,130 | 9,123 | ||||||||||
Information Systems | 4,385 | 4,433 | 8,818 | 8,563 | ||||||||||
Technical Services | 2,536 | 584 | 3,120 | 3,191 | ||||||||||
Total backlog | $25,636 | $15,373 | $41,009 | $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 nine months ended September 30, 2012, was $5.6 billion and $20.2 billion. |
SCHEDULE 6 | ||||||||||||||
NORTHROP GRUMMAN CORPORATION | ||||||||||||||
SEGMENT REALIGNMENT | ||||||||||||||
($ 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 | Sept 30 | Dec 31 | Year | Year | Year | Mar 31 | Jun 30 | Sept 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. |