Summary
Lockheed Martin Corporation (LMT) filed its 2017 10-K on February 15, 2018, which primarily served as an amendment to its original filing, incorporating new consent and certification documents. The financial statements themselves presented a mixed performance for the year. Total net sales increased by approximately 8% year-over-year to $51.05 billion, driven by growth in the Products segment. However, net earnings saw a significant decrease of over 62% to $2.00 billion, primarily due to a substantial income tax charge related to the Tax Cuts and Jobs Act of 2017. The company also reported increased liabilities related to postretirement benefit plans. Despite the net earnings dip, operating profit showed a healthy increase, indicating underlying operational strength. The company continued its commitment to shareholder returns through share repurchases and dividends.
Financial Highlights
52 data points| Revenue | $49.96B |
| Cost of Revenue | $43.59B |
| Gross Profit | $6.37B |
| R&D Expenses | $1.20B |
| Operating Income | $6.74B |
| Interest Expense | $651.00M |
| Net Income | $1.96B |
| EPS (Basic) | $6.82 |
| EPS (Diluted) | $6.75 |
| Shares Outstanding (Basic) | 287.80M |
| Shares Outstanding (Diluted) | 290.60M |
Key Highlights
- 1Total net sales increased to $51.05 billion in 2017, up from $47.25 billion in 2016, primarily driven by product sales.
- 2Net earnings decreased significantly to $2.00 billion in 2017 from $5.30 billion in 2016, largely impacted by a $1.9 billion one-time tax charge related to the Tax Cuts and Jobs Act.
- 3Operating profit increased to $5.92 billion in 2017, up from $5.55 billion in 2016, signaling strong operational performance.
- 4The company repurchased $2.0 billion of its common stock in 2017 and paid $2.2 billion in dividends, demonstrating a commitment to shareholder returns.
- 5Total liabilities increased to $47.13 billion from $46.20 billion, with a notable increase in accrued pension liabilities.
- 6The company successfully remediated a material weakness in internal controls at its Sikorsky business by year-end 2017.
- 7Two major business divestitures/acquisitions were highlighted: the divestiture of IS&GS and the consolidation of AWE following an increased ownership stake.