Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - GENERAL DYNAMICS CORP | d8k.htm |
Exhibit 99.1
| 2941 Fairview Park Drive Suite 100 Falls Church, VA 22042-4513 www.generaldynamics.com |
News | |
January 26, 2011
Contact: Rob Doolittle
Tel: 703 876 3199
rdoolitt@generaldynamics.com
General Dynamics Reports Strong Performance for Fourth Quarter 2010
| • | EPS from continuing operations grows 21 percent |
| • | Cash generation exceeds earnings from continuing operations |
| • | Management provides 2011 full-year EPS guidance |
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported 2010 fourth-quarter earnings from continuing operations of $729 million, or $1.91 per share on a fully diluted basis, compared to 2009 fourth-quarter earnings from continuing operations of $618 million, or $1.58 per share fully diluted. Full-year 2010 earnings from continuing operations were $2.63 billion, or $6.82 per share on a fully diluted basis, compared to $2.41 billion and $6.20 per share, respectively, for 2009. Revenue was $8.6 billion in the fourth quarter and $32.5 billion for the full year.
Margins
Company-wide operating margins increased to 12.5 percent for the fourth quarter, led by a 250-basis-point improvement in the company’s Aerospace sector. Margins also increased in the Marine Systems and Information Systems and Technology businesses and remained steady in Combat Systems.
Cash
Net cash provided by operating activities totaled $1.42 billion in the fourth quarter and $2.99 billion for the full year. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $1.27 billion in the quarter and $2.62 billion for the year. Free cash flow significantly exceeded earnings from continuing operations in the fourth quarter and was equal to earnings from continuing operations for the year.
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Backlog
The company’s total backlog was $59.6 billion at the end of the year. The Aerospace group booked its largest order intake of the year, resulting in a $244 million increase in backlog over the third quarter. Significant domestic and international orders for vehicle production and improvements, ongoing ship design and development efforts, and combat mission-system integration work underscored the ongoing demand for many of the company’s key product and service offerings.
Estimated potential contract value, representing management’s estimate of the value of unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised contract options, increased to $21.8 billion at year-end 2010. Total potential contract value, the sum of all backlog components, was $81.3 billion at the end of the year.
“2010 was a good year for General Dynamics, marked by outstanding earnings growth, efficient cash conversion and focused execution across the company,” said Jay L. Johnson, chairman and chief executive officer. “Our businesses are well-positioned as we continue to provide mission-essential capabilities to our defense customers and capitalize on accelerating global business-jet demand.”
“Looking ahead, we expect 2011 earnings to be in the range of $7.00 to $7.10 per share, fully diluted,” Johnson said.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management’s expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they are made. The company does not undertake any obligation to update or publicly release any revisions to any forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
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WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter securities-analyst conference call at 11:30 a.m. Eastern Time on Wednesday, January 26, 2011. The webcast will be a listen-only audio event, available at www.generaldynamics.com. An on-demand replay of the webcast will be available by 2:30 p.m. January 26 and will continue for 12 months. To hear a recording of the conference call by telephone, please call 888-286-8010 (international: 617-801-6888); passcode 82244490. The phone replay will be available from 2:30 p.m. January 26, until midnight February 2, 2011.
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EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Fourth Quarter |
Variance |
|||||||||||||||
| 2010 |
2009 |
$ |
% |
|||||||||||||
| Revenues |
$ | 8,601 | $ | 7,898 | $ | 703 | 8.9 | % | ||||||||
| Operating costs and expenses |
7,525 | 6,947 | (578 | ) | ||||||||||||
| Operating earnings |
1,076 | 951 | 125 | 13.1 | % | |||||||||||
| Interest, net |
(33 | ) | (43 | ) | 10 | |||||||||||
| Other, net |
— | 1 | (1 | ) | ||||||||||||
| Earnings from continuing operations before income taxes |
1,043 | 909 | 134 | 14.7 | % | |||||||||||
| Provision for income taxes |
314 | 291 | (23 | ) | ||||||||||||
| Earnings from continuing operations |
$ | 729 | $ | 618 | $ | 111 | 18.0 | % | ||||||||
| Discontinued operations, net of tax |
— | (4 | ) | 4 | ||||||||||||
| Net earnings |
$ | 729 | $ | 614 | $ | 115 | 18.7 | % | ||||||||
| Earnings per share - basic |
||||||||||||||||
| Continuing operations |
$ | 1.94 | $ | 1.60 | $ | 0.34 | 21.3 | % | ||||||||
| Discontinued operations |
$ | — | $ | (0.01 | ) | $ | 0.01 | |||||||||
| Net earnings |
$ | 1.94 | $ | 1.59 | $ | 0.35 | 22.0 | % | ||||||||
| Basic weighted average shares outstanding (in millions) |
376.7 | 385.8 | ||||||||||||||
| Earnings per share - diluted |
||||||||||||||||
| Continuing operations |
$ | 1.91 | $ | 1.58 | $ | 0.33 | 20.9 | % | ||||||||
| Discontinued operations |
$ | — | $ | (0.01 | ) | $ | 0.01 | |||||||||
| Net earnings |
$ | 1.91 | $ | 1.57 | $ | 0.34 | 21.7 | % | ||||||||
| Diluted weighted average shares outstanding (in millions) |
380.9 | 390.1 | ||||||||||||||
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EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Twelve Months |
Variance |
|||||||||||||||
| 2010 |
2009 |
$ |
% |
|||||||||||||
| Revenues |
$ | 32,466 | $ | 31,981 | $ | 485 | 1.5 | % | ||||||||
| Operating costs and expenses |
28,521 | 28,306 | (215 | ) | ||||||||||||
| Operating earnings |
3,945 | 3,675 | 270 | 7.3 | % | |||||||||||
| Interest, net |
(157 | ) | (160 | ) | 3 | |||||||||||
| Other, net |
2 | (2 | ) | 4 | ||||||||||||
| Earnings from continuing operations before income taxes |
3,790 | 3,513 | 277 | 7.9 | % | |||||||||||
| Provision for income taxes |
1,162 | 1,106 | (56 | ) | ||||||||||||
| Earnings from continuing operations |
$ | 2,628 | $ | 2,407 | $ | 221 | 9.2 | % | ||||||||
| Discontinued operations, net of tax |
(4 | ) | (13 | ) | 9 | |||||||||||
| Net earnings |
$ | 2,624 | $ | 2,394 | $ | 230 | 9.6 | % | ||||||||
| Earnings per share - basic |
||||||||||||||||
| Continuing operations |
$ | 6.89 | $ | 6.24 | $ | 0.65 | 10.4 | % | ||||||||
| Discontinued operations |
$ | (0.01 | ) | $ | (0.03 | ) | $ | 0.02 | ||||||||
| Net earnings |
$ | 6.88 | $ | 6.21 | $ | 0.67 | 10.8 | % | ||||||||
| Basic weighted average shares outstanding (in millions) |
381.2 | 385.5 | ||||||||||||||
| Earnings per share - diluted |
||||||||||||||||
| Continuing operations |
$ | 6.82 | $ | 6.20 | $ | 0.62 | 10.0 | % | ||||||||
| Discontinued operations |
$ | (0.01 | ) | $ | (0.03 | ) | $ | 0.02 | ||||||||
| Net earnings |
$ | 6.81 | $ | 6.17 | $ | 0.64 | 10.4 | % | ||||||||
| Diluted weighted average shares outstanding (in millions) |
385.2 | 387.9 | ||||||||||||||
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EXHIBIT C
REVENUES AND OPERATING EARNINGS BY SEGMENT (UNAUDITED)
DOLLARS IN MILLIONS
| Fourth Quarter |
Variance |
|||||||||||||||||||
| 2010 |
2009 |
$ |
% |
|||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Aerospace |
$ | 1,268 | $ | 1,181 | $ | 87 | 7.4 | % | ||||||||||||
| Combat Systems |
2,696 | 2,486 | 210 | 8.4 | % | |||||||||||||||
| Marine Systems |
1,701 | 1,551 | 150 | 9.7 | % | |||||||||||||||
| Information Systems and Technology |
2,936 | 2,680 | 256 | 9.6 | % | |||||||||||||||
| Total |
$ | 8,601 | $ | 7,898 | $ | 703 | 8.9 | % | ||||||||||||
| Operating earnings: |
||||||||||||||||||||
| Aerospace |
$ | 210 | $ | 167 | $ | 43 | 25.7 | % | ||||||||||||
| Combat Systems |
400 | 367 | 33 | 9.0 | % | |||||||||||||||
| Marine Systems |
177 | 156 | 21 | 13.5 | % | |||||||||||||||
| Information Systems and Technology |
311 | 282 | 29 | 10.3 | % | |||||||||||||||
| Corporate |
(22 | ) | (21 | ) | (1 | ) | (4.8 | )% | ||||||||||||
| Total |
$ | 1,076 | $ | 951 | $ | 125 | 13.1 | % | ||||||||||||
| Operating margins: |
||||||||||||||||||||
| Aerospace |
16.6 | % | 14.1 | % | ||||||||||||||||
| Combat Systems |
14.8 | % | 14.8 | % | ||||||||||||||||
| Marine Systems |
10.4 | % | 10.1 | % | ||||||||||||||||
| Information Systems and Technology |
10.6 | % | 10.5 | % | ||||||||||||||||
| Total |
12.5 | % | 12.0 | % | ||||||||||||||||
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EXHIBIT D
REVENUES AND OPERATING EARNINGS BY SEGMENT (UNAUDITED)
DOLLARS IN MILLIONS
| Twelve Months |
Variance |
|||||||||||||||||||
| 2010 |
2009 |
$ |
% |
|||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Aerospace |
$ | 5,299 | $ | 5,171 | $ | 128 | 2.5 | % | ||||||||||||
| Combat Systems |
8,878 | 9,645 | (767 | ) | (8.0 | )% | ||||||||||||||
| Marine Systems |
6,677 | 6,363 | 314 | 4.9 | % | |||||||||||||||
| Information Systems and Technology |
11,612 | 10,802 | 810 | 7.5 | % | |||||||||||||||
| Total |
$ | 32,466 | $ | 31,981 | $ | 485 | 1.5 | % | ||||||||||||
| Operating earnings: |
||||||||||||||||||||
| Aerospace |
$ | 860 | $ | 707 | $ | 153 | 21.6 | % | ||||||||||||
| Combat Systems |
1,275 | 1,262 | 13 | 1.0 | % | |||||||||||||||
| Marine Systems |
674 | 642 | 32 | 5.0 | % | |||||||||||||||
| Information Systems and Technology |
1,219 | 1,151 | 68 | 5.9 | % | |||||||||||||||
| Corporate |
(83 | ) | (87 | ) | 4 | 4.6 | % | |||||||||||||
| Total |
$ | 3,945 | $ | 3,675 | $ | 270 | 7.3 | % | ||||||||||||
| Operating margins: |
||||||||||||||||||||
| Aerospace |
16.2 | % | 13.7 | % | ||||||||||||||||
| Combat Systems |
14.4 | % | 13.1 | % | ||||||||||||||||
| Marine Systems |
10.1 | % | 10.1 | % | ||||||||||||||||
| Information Systems and Technology |
10.5 | % | 10.7 | % | ||||||||||||||||
| Total |
12.2 | % | 11.5 | % | ||||||||||||||||
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EXHIBIT E
PRELIMINARY CONSOLIDATED BALANCE SHEET (UNAUDITED)
DOLLARS IN MILLIONS
| December 31, 2010 |
December 31, 2009 |
|||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and equivalents |
$ | 2,613 | $ | 2,263 | ||||
| Accounts receivable |
3,848 | 3,678 | ||||||
| Contracts in process |
4,873 | 4,449 | ||||||
| Inventories |
2,158 | 2,126 | ||||||
| Other current assets |
694 | 733 | ||||||
| Total current assets |
14,186 | 13,249 | ||||||
| Noncurrent assets: |
||||||||
| Property, plant and equipment, net |
2,971 | 2,912 | ||||||
| Intangible assets, net |
1,992 | 2,098 | ||||||
| Goodwill |
12,649 | 12,269 | ||||||
| Other assets |
747 | 549 | ||||||
| Total noncurrent assets |
18,359 | 17,828 | ||||||
| Total assets |
$ | 32,545 | $ | 31,077 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Short-term debt and current portion of long-term debt |
$ | 773 | $ | 705 | ||||
| Accounts payable |
2,736 | 2,365 | ||||||
| Customer advances and deposits |
4,465 | 4,313 | ||||||
| Other current liabilities |
3,203 | 2,988 | ||||||
| Total current liabilities |
11,177 | 10,371 | ||||||
| Noncurrent liabilities: |
||||||||
| Long-term debt |
2,430 | 3,159 | ||||||
| Other liabilities |
5,622 | 5,124 | ||||||
| Commitments and contingencies |
||||||||
| Total noncurrent liabilities |
8,052 | 8,283 | ||||||
| Shareholders’ equity: |
||||||||
| Common stock |
482 | 482 | ||||||
| Surplus |
1,729 | 1,518 | ||||||
| Retained earnings |
17,076 | 15,093 | ||||||
| Treasury stock |
(4,535 | ) | (3,463 | ) | ||||
| Accumulated other comprehensive loss |
(1,436 | ) | (1,207 | ) | ||||
| Total shareholders’ equity |
13,316 | 12,423 | ||||||
| Total liabilities and shareholders’ equity |
$ | 32,545 | $ | 31,077 | ||||
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EXHIBIT F
PRELIMINARY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
DOLLARS IN MILLIONS
| Twelve Months Ended |
||||||||
| December 31, 2010 |
December 31, 2009 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net earnings |
$ | 2,624 | $ | 2,394 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: |
||||||||
| Depreciation of property, plant and equipment |
345 | 344 | ||||||
| Amortization of intangible assets |
224 | 218 | ||||||
| Stock-based compensation expense |
118 | 117 | ||||||
| Excess tax benefit from stock-based compensation |
(18 | ) | (5 | ) | ||||
| Deferred income tax provision |
56 | 227 | ||||||
| Discontinued operations, net of tax |
4 | 13 | ||||||
| (Increase) decrease in assets, net of effects of business acquisitions: |
||||||||
| Accounts receivable |
(152 | ) | (151 | ) | ||||
| Contracts in process |
(334 | ) | (112 | ) | ||||
| Inventories |
(23 | ) | (72 | ) | ||||
| Increase (decrease) in liabilities, net of effects of business acquisitions: |
||||||||
| Accounts payable |
366 | (92 | ) | |||||
| Customer advances and deposits |
30 | 145 | ||||||
| Other current liabilities |
(285 | ) | (306 | ) | ||||
| Other, net |
31 | 135 | ||||||
| Net cash provided by operating activities |
2,986 | 2,855 | ||||||
| Cash flows from investing activities: |
||||||||
| Maturities of held-to-maturity securities |
605 | — | ||||||
| Purchases of held-to-maturity securities |
(468 | ) | (337 | ) | ||||
| Capital expenditures |
(370 | ) | (385 | ) | ||||
| Business acquisitions, net of cash acquired |
(233 | ) | (811 | ) | ||||
| Other, net |
58 | 141 | ||||||
| Net cash used by investing activities |
(408 | ) | (1,392 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Purchases of common stock |
(1,185 | ) | (209 | ) | ||||
| (Repayment of) proceeds from fixed-rate notes |
(700 | ) | 747 | |||||
| Dividends paid |
(631 | ) | (577 | ) | ||||
| Proceeds from option exercises |
277 | 142 | ||||||
| Repayment of commercial paper |
— | (904 | ) | |||||
| Other, net |
13 | (5 | ) | |||||
| Net cash used by financing activities |
(2,226 | ) | (806 | ) | ||||
| Net cash used by discontinued operations - operating activities |
(2 | ) | (15 | ) | ||||
| Net increase in cash and equivalents |
350 | 642 | ||||||
| Cash and equivalents at beginning of period |
2,263 | 1,621 | ||||||
| Cash and equivalents at end of period |
$ | 2,613 | $ | 2,263 | ||||
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EXHIBIT G
PRELIMINARY FINANCIAL INFORMATION (UNAUDITED)
DOLLARS IN MILLIONS EXCEPT PER SHARE AND EMPLOYEE AMOUNTS
| Fourth Quarter 2010 |
Fourth Quarter 2009 |
|||||||||||||||
| Non-GAAP Financial Measures: |
||||||||||||||||
| Free cash flow from operations: |
||||||||||||||||
| Quarter |
Year-to-date |
Quarter |
Year-to-date |
|||||||||||||
| Net cash provided by operating activities |
$ | 1,419 | $ | 2,986 | $ | 1,498 | $ | 2,855 | ||||||||
| Capital expenditures |
(151 | ) | (370 | ) | (134 | ) | (385 | ) | ||||||||
| Free cash flow from operations (A) |
$ | 1,268 | $ | 2,616 | $ | 1,364 | $ | 2,470 | ||||||||
| Return on invested capital: |
||||||||||||||||
| Earnings from continuing operations |
$ | 2,628 | $ | 2,407 | ||||||||||||
| After-tax interest expense |
116 | 117 | ||||||||||||||
| After-tax amortization expense |
155 | 149 | ||||||||||||||
| Net operating profit after taxes |
2,899 | 2,673 | ||||||||||||||
| Average debt and equity |
16,587 | 15,003 | ||||||||||||||
| Return on invested capital (B) |
17.5 | % | 17.8 | % | ||||||||||||
| Other Financial Information: |
||||||||||||||||
| Return on equity (C) |
20.2 | % | 21.7 | % | ||||||||||||
| Debt-to-equity (D) |
24.1 | % | 31.1 | % | ||||||||||||
| Debt-to-capital (E) |
19.4 | % | 23.7 | % | ||||||||||||
| Book value per share (F) |
$ | 35.79 | $ | 32.21 | ||||||||||||
| Total taxes paid |
$ | 310 | $ | 246 | ||||||||||||
| Company-sponsored research and development (G) |
$ | 124 | $ | 123 | ||||||||||||
| Employment |
90,000 | 91,700 | ||||||||||||||
| Sales per employee (H) |
$ | 358,100 | $ | 346,500 | ||||||||||||
| Shares outstanding |
372,052,313 | 385,704,691 | ||||||||||||||
| (A) | We believe free cash flow from operations is a measurement that is useful to investors, because it portrays our ability to generate cash from our core businesses for such purposes as repaying maturing debt, funding business acquisitions and paying dividends. We use free cash flow from operations to assess the quality of our earnings and as a performance measure in evaluating management. The most directly comparable GAAP measure to free cash flow from operations is net cash provided by operating activities. |
| (B) | We believe return on invested capital is a measurement that is useful to investors, because it reflects our ability to generate returns from the capital we have deployed in our operations. We use ROIC to evaluate investment decisions and as a performance measure in evaluating management. We define ROIC as net operating profit after taxes for the latest 12-month period divided by the sum of the average debt and shareholders’ equity for the same period. Net operating profit after taxes is defined as earnings from continuing operations plus after-tax interest and amortization expense. The most directly comparable GAAP measure to net operating profit after taxes is earnings from continuing operations. |
| (C) | Return on equity is calculated by dividing earnings from continuing operations for the latest 12-month period by our average equity during that period. |
| (D) | Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period. |
| (E) | Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of the end of the period. |
| (F) | Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period. |
| (G) | Includes independent research and development and bid and proposal costs and Gulfstream product-development costs. |
| (H) | Sales per employee is calculated by dividing revenues for the latest 12-month period by our average number of employees during that period. |
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EXHIBIT H
BACKLOG (UNAUDITED)
DOLLARS IN MILLIONS
| Fourth Quarter 2010 |
Funded |
Unfunded |
Total Backlog |
Estimated Potential Contract Value* |
Total Potential Contract Value |
|||||||||||||||||
| Aerospace |
$ | 17,443 | $ | 378 | $ | 17,821 | $ | 1,361 | $ | 19,182 | ||||||||||||
| Combat Systems |
10,908 | 892 | 11,800 | 4,645 | 16,445 | |||||||||||||||||
| Marine Systems |
7,050 | 13,069 | 20,119 | 584 | 20,703 | |||||||||||||||||
| Information Systems and Technology |
7,978 | 1,843 | 9,821 | 15,196 | 25,017 | |||||||||||||||||
| Total |
$ | 43,379 | $ | 16,182 | $ | 59,561 | $ | 21,786 | $ | 81,347 | ||||||||||||
| Third Quarter 2010 |
||||||||||||||||||||||
| Aerospace |
$ | 17,184 | $ | 393 | $ | 17,577 | $ | 1,361 | $ | 18,938 | ||||||||||||
| Combat Systems |
11,771 | 1,006 | 12,777 | 4,702 | 17,479 | |||||||||||||||||
| Marine Systems |
7,972 | 12,620 | 20,592 | 768 | 21,360 | |||||||||||||||||
| Information Systems and Technology |
8,666 | 2,219 | 10,885 | 13,978 | 24,863 | |||||||||||||||||
| Total |
$ | 45,593 | $ | 16,238 | $ | 61,831 | $ | 20,809 | $ | 82,640 | ||||||||||||
| Fourth Quarter 2009 |
||||||||||||||||||||||
| Aerospace |
$ | 18,891 | $ | 433 | $ | 19,324 | $ | 1,361 | $ | 20,685 | ||||||||||||
| Combat Systems |
11,431 | 1,985 | 13,416 | 2,327 | 15,743 | |||||||||||||||||
| Marine Systems |
7,111 | 15,362 | 22,473 | 1,072 | 23,545 | |||||||||||||||||
| Information Systems and Technology |
8,423 | 1,909 | 10,332 | 12,815 | 23,147 | |||||||||||||||||
| Total |
$ | 45,856 | $ | 19,689 | $ | 65,545 | $ | 17,575 | $ | 83,120 | ||||||||||||
| * | The estimated potential contract value represents management’s estimate of our future contract value under unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options to purchase new aircraft and long-term agreements with fleet customers. Because the value in the unfunded IDIQ arrangements is subject to the customer’s future exercise of an indeterminate quantity of delivery orders, we recognize these contracts in backlog only when they are funded. Unexercised options are recognized in backlog when the customer exercises the option and establishes a firm order. |
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EXHIBIT I
FOURTH QUARTER 2010 SIGNIFICANT ORDERS (UNAUDITED)
DOLLARS IN MILLIONS
We received the following significant contract orders during the fourth quarter of 2010:
Combat Systems
| • | Approximately $500 from the U.S. Army under the Stryker wheeled armored vehicle program for production of double-V-hulled vehicles, contractor logistics support and battle-damage assessment and repair. |
| • | Approximately $350 from the U.S. Marine Corps under the mine-resistant, ambush-protected (MRAP) vehicle program for upgrade kits for previously delivered vehicles. |
| • | Approximately $165 from Germany to produce Eagle armored vehicles. The contract has a maximum potential value of over $565 if all options are exercised. |
| • | Approximately $140 from the Army under the Foreign Military Sales program to produce Light Armored Vehicles (LAVs) for an international customer. |
Marine Systems
| • | Approximately $65 from the U.S. Navy for engineering and design services for the Ohio Replacement Program (ORP). |
| • | Approximately $60 from the Navy to operate and maintain large, medium-speed, roll-on/roll-off (LMSR) vessels. |
| • | Approximately $60 from the Navy for engineering, design and technical services for the DDG-1000 destroyer program. |
| • | Approximately $35 from the Navy for the development of advanced submarine technologies. The contract has a maximum potential value of over $710 over five years. |
Information Systems and Technology
| • | Approximately $150 from Austal USA for design, integration and testing of combat and seaframe control systems for one Littoral Combat Ship (LCS) along with options for nine additional ships, which are expected to be exercised over the next five years. |
| • | Approximately $80 from the Army for information technology (IT) infrastructure support for the Walter Reed National Military Medical Center. |
| • | Approximately $60 under the Warfighter Field Operations Customer Support (FOCUS) program to provide life-cycle contractor support services. |
| • | Approximately $55 in orders for networking communications products and support under the Network-Centric Solutions (NETCENTS) program, bringing the total value in backlog to approximately $235. |
| • | An IDIQ contract from the Army under the Warfighter Information Network-Tactical (WIN-T) program for low-rate initial production of Increment 2 equipment. The group expects to receive orders under the contract beginning in the first quarter of 2011. |
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EXHIBIT J
AEROSPACE SUPPLEMENTAL DATA (UNAUDITED)
| Fourth Quarter |
Twelve Months |
|||||||||||||||
| 2010 |
2009 |
2010 |
2009 |
|||||||||||||
| Gulfstream Green Deliveries (units): |
||||||||||||||||
| Large aircraft |
18 | 19 | 75 | 75 | ||||||||||||
| Mid-size aircraft |
2 | 1 | 24 | 19 | ||||||||||||
| Total |
20 | 20 | 99 | 94 | ||||||||||||
| Gulfstream Outfitted Deliveries (units): |
||||||||||||||||
| Large aircraft |
20 | 18 | 74 | 78 | ||||||||||||
| Mid-size aircraft |
4 | 3 | 15 | 32 | ||||||||||||
| Total |
24 | 21 | 89 | 110 | ||||||||||||
| Pre-owned Deliveries (units): |
1 | 1 | 7 | 6 | ||||||||||||
###