Company Quick10K Filing
Quick10K
Lockheed Martin
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$339.36 283 $95,880
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-24 Quarter: 2018-06-24
10-Q 2018-03-25 Quarter: 2018-03-25
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-24 Quarter: 2017-09-24
10-Q 2017-06-25 Quarter: 2017-06-25
10-Q 2017-03-26 Quarter: 2017-03-26
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-25 Quarter: 2016-09-25
10-Q 2016-06-26 Quarter: 2016-06-26
10-Q 2016-03-27 Quarter: 2016-03-27
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-27 Quarter: 2015-09-27
10-Q 2015-06-28 Quarter: 2015-06-28
10-Q 2015-03-29 Quarter: 2015-03-29
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-28 Quarter: 2014-09-28
10-Q 2014-06-29 Quarter: 2014-06-29
10-Q 2014-03-30 Quarter: 2014-03-30
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-06-27 Officers, Exhibits
8-K 2019-05-24 Other Events, Exhibits
8-K 2019-04-25 Shareholder Vote
8-K 2019-04-23 Earnings, Exhibits
8-K 2019-01-29 Earnings, Exhibits
8-K 2018-12-07 Officers, Exhibits
8-K 2018-10-29 Suspend Trading, Exhibits
8-K 2018-10-23 Earnings, Exhibits
8-K 2018-08-24 Enter Agreement, Leave Agreement, Off-BS Arrangement, Exhibits
8-K 2018-08-21 Officers, Exhibits
8-K 2018-07-24 Earnings, Exhibits
8-K 2018-06-26 Officers, Exhibits
8-K 2018-04-26 Shareholder Vote, Exhibits
8-K 2018-04-24 Earnings, Exhibits
8-K 2018-01-29 Earnings, Exhibits
HMC Honda Motor 45,800
CNS Cohen & Steers 2,390
UMH UMH Properties 525
SQBG Sequential Brands Group 57
DSWL Deswell Industries 47
LWAY Lifeway Foods 36
PVA Penn Virginia 0
JSDA Jones Soda 0
AKOM Aerkomm 0
EVHC Envision Healthcare 0
LMT 2019-03-31
Part I. Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation
Note 2 - Earnings per Common Share
Note 3 - Information on Business Segments
Note 4 - Contract Assets and Liabilities
Note 5 - Inventories
Note 6 - Leases
Note 7 - Postretirement Benefit Plans
Note 8 - Legal Proceedings and Contingencies
Note 9 - Fair Value Measurements
Note 10 - Stockholders' Equity
Note 11 - Other
Note 12 - Recent Accounting Pronouncements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-10.1 ex101q12019.htm
EX-10.2 ex102q12019.htm
EX-10.3 ex103q12019.htm
EX-10.4 ex104q12019.htm
EX-15 ex15q12019.htm
EX-31.1 ex311q12019.htm
EX-31.2 ex312q12019.htm
EX-32 ex32q12019.htm

Lockheed Martin Earnings 2019-03-31

LMT 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
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Table of Contents


 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
FORM 10-Q 
 
 
 
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2019
Commission file number: 1-11437 
 
LOCKHEED MARTIN CORPORATION
(Exact name of registrant as specified in its charter) 
Maryland
 
52-1893632
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
6801 Rockledge Drive, Bethesda, Maryland
 
20817
(Address of principal executive offices)
 
(Zip Code)
(301) 897-6000
(Registrant’s telephone number, including area code) 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES   NO 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES   NO 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non–accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b–2 of the Exchange Act.
Large accelerated filer Accelerated filer Non–accelerated filer Smaller reporting company Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO
There were 282,538,809 shares of our common stock, $1 par value per share, outstanding as of March 31, 2019.

 
 


Table of Contents


Lockheed Martin Corporation
Form 10-Q
For the Quarterly Period Ended March 31, 2019
Table of Contents 
 
 
 
Page
 
 
 
 
 
 
 
 
ITEM 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ITEM 2.
 
 
 
 
 
ITEM 3.
 
 
 
 
 
ITEM 4.
 
 
 
 
 
 
 
 
ITEM 1.
 
 
 
 
 
ITEM 1A.
 
 
 
 
 
ITEM 2.
 
 
 
 
 
ITEM 6.
 
 
 



Table of Contents


PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Lockheed Martin Corporation
Consolidated Statements of Earnings
(unaudited; in millions, except per share data)
 
 
Quarters Ended
 
 
 
March 31,
2019
 
March 25,
2018
 
Net sales
 
 
 
 
 
 
 
Products
 
$
11,970

 
 
$
9,762

 
 
Services
 
2,366

 
 
1,873

 
 
Total net sales
 
14,336

 
 
11,635

 
 
Cost of sales
 
 
 
 

 
 
Products
 
(10,625
)
 
 
(8,697
)
 
 
Services
 
(2,047
)
 
 
(1,689
)
 
 
Other unallocated, net
 
524

 
 
409

 
 
Total cost of sales
 
(12,148
)
 
 
(9,977
)
 
 
Gross profit
 
2,188

 
 
1,658

 
 
Other income, net
 
95

 
 
67

 
 
Operating profit
 
2,283

 
 
1,725

 
 
Interest expense
 
(171
)
 
 
(155
)
 
 
Other non-operating expense, net
 
(167
)
 
 
(210
)
 
 
Earnings before income taxes
 
1,945

 
 
1,360

 
 
Income tax expense
 
(241
)
 
 
(203
)
 
 
Net earnings
 
$
1,704

 
 
$
1,157

 
 
 
 
 
 
 

 
 
Earnings per common share
 
 
 
 

 
 
Basic
 
$
6.03

 
 
$
4.05

 
 
Diluted
 
$
5.99

 
 
$
4.02

 
 
 
 
 
 
 
 
 
 
Cash dividends paid per common share
 
$
2.20

 
 
$
2.00

 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.


3


Table of Contents


Lockheed Martin Corporation
Consolidated Statements of Comprehensive Income
(unaudited; in millions)
 
 
Quarters Ended
 
 
 
March 31,
2019
 
March 25,
2018
 
Net earnings
 
$
1,704

 
 
$
1,157

 
 
Other comprehensive income, net of tax
 
 
 
 

 
 
Recognition of previously deferred postretirement benefit plan amounts
 
227

 
 
300

 
 
Other, net
 

 
 
58

 
 
Other comprehensive income, net of tax
 
227

 
 
358

 
 
Comprehensive income
 
$
1,931

 
 
$
1,515

 
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.


4


Table of Contents


Lockheed Martin Corporation
Consolidated Balance Sheets
(in millions, except par value)
 
 
March 31,
2019
 
December 31,
2018
 
 
(unaudited)
 
 
 
Assets
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
Cash and cash equivalents
 
$
991

 
 
$
772

 
Receivables, net
 
2,833

 
 
2,444

 
Contract assets
 
10,497

 
 
9,472

 
Inventories
 
3,285

 
 
2,997

 
Other current assets
 
425

 
 
418

 
Total current assets
 
18,031

 
 
16,103

 
Property, plant and equipment, net
 
6,140

 
 
6,124

 
Goodwill
 
10,769

 
 
10,769

 
Intangible assets, net
 
3,425

 
 
3,494

 
Deferred income taxes
 
3,169

 
 
3,208

 
Other noncurrent assets
 
6,150

 
 
5,178

 
Total assets
 
$
47,684

 
 
$
44,876

 
Liabilities and equity
 
 
 
 

 
Current liabilities
 
 
 
 

 
Accounts payable
 
$
3,097

 
 
$
2,402

 
Contract liabilities
 
6,796

 
 
6,491

 
Salaries, benefits and payroll taxes
 
1,861

 
 
2,122

 
Current maturities of long-term debt and commercial paper
 
1,300

 
 
1,500

 
Other current liabilities
 
2,349

 
 
1,883

 
Total current liabilities
 
15,403

 
 
14,398

 
Long-term debt, net
 
12,621

 
 
12,604

 
Accrued pension liabilities
 
11,418

 
 
11,410

 
Other postretirement benefit liabilities
 
698

 
 
704

 
Other noncurrent liabilities
 
5,022

 
 
4,311

 
Total liabilities
 
45,162

 
 
43,427

 
Stockholders’ equity
 
 
 
 

 
Common stock, $1 par value per share
 
281

 
 
281

 
Additional paid-in capital
 

 
 

 
Retained earnings
 
16,278

 
 
15,434

 
Accumulated other comprehensive loss
 
(14,094
)
 
 
(14,321
)
 
Total stockholders’ equity
 
2,465

 
 
1,394

 
Noncontrolling interests in subsidiary
 
57

 
 
55

 
Total equity
 
2,522

 
 
1,449

 
Total liabilities and equity
 
$
47,684

 
 
$
44,876

 
The accompanying notes are an integral part of these unaudited consolidated financial statements.


5


Table of Contents


Lockheed Martin Corporation
Consolidated Statements of Cash Flows
(unaudited; in millions)
 
 
Quarters Ended
 
 
March 31,
2019
 
March 25,
2018
Operating activities
 
 
 
 
 
 
Net earnings
 
$
1,704

 
 
$
1,157

 
Adjustments to reconcile net earnings to net cash provided by operating activities
 
 
 
 
 
 
Depreciation and amortization
 
277

 
 
279

 
Stock-based compensation
 
37

 
 
38

 
Gain on property sale
 
(51
)
 
 

 
Changes in assets and liabilities
 
 
 
 

 
Receivables, net
 
(389
)
 
 
(108
)
 
Contract assets
 
(1,025
)
 
 
(1,413
)
 
Inventories
 
(288
)
 
 
(318
)
 
Accounts payable
 
744

 
 
1,290

 
Contract liabilities
 
305

 
 
(478
)
 
Postretirement benefit plans
 
278

 
 
(1,145
)
 
Income taxes
 
243

 
 
1,064

 
Other, net
 
(172
)
 
 
266

 
Net cash provided by operating activities
 
1,663

 
 
632

 
Investing activities
 
 
 
 

 
Capital expenditures
 
(284
)
 
 
(216
)
 
Other, net
 
27

 
 
130

 
Net cash used for investing activities
 
(257
)
 
 
(86
)
 
Financing activities
 
 
 
 

 
Dividends paid
 
(638
)
 
 
(586
)
 
Repurchases of common stock
 
(281
)
 
 
(300
)
 
Repayments of commercial paper, net
 
(200
)
 
 

 
Other, net
 
(68
)
 
 
(128
)
 
Net cash used for financing activities
 
(1,187
)
 
 
(1,014
)
 
Net change in cash and cash equivalents
 
219

 
 
(468
)
 
Cash and cash equivalents at beginning of period
 
772

 
 
2,861

 
Cash and cash equivalents at end of period
 
$
991

 
 
$
2,393

 
The accompanying notes are an integral part of these unaudited consolidated financial statements.


6


Table of Contents


Lockheed Martin Corporation
Consolidated Statements of Equity
(unaudited; in millions)
 
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Total
Stockholders’
Equity
Noncontrolling
Interests in
Subsidiary
Total
Equity
Balance at December 31, 2018
$
281

$

 
$
15,434

$
(14,321
)
 
$
1,394

 
$
55

 
$
1,449

Net earnings


 
1,704


 
1,704

 

 
1,704

Other comprehensive income, net of tax


 

227

 
227

 

 
227

Repurchases of common stock
(1
)
(46
)
 
(237
)

 
(284
)
 

 
(284
)
Dividends declared


 
(623
)

 
(623
)
 

 
(623
)
Stock-based awards, ESOP activity and other
1

46

 


 
47

 

 
47

Net increase in noncontrolling interests in subsidiary


 


 

 
2

 
2

Balance at March 31, 2019
$
281

$

 
$
16,278

$
(14,094
)
 
$
2,465

 
$
57

 
$
2,522

 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
$
284

$

 
$
11,405

$
(12,539
)
 
$
(850
)
 
$
74

 
$
(776
)
Net earnings


 
1,157


 
1,157

 

 
1,157

Other comprehensive income, net of tax


 

358

 
358

 

 
358

Repurchases of common stock
(1
)
(25
)
 
(274
)

 
(300
)
 

 
(300
)
Dividends declared


 
(573
)

 
(573
)
 

 
(573
)
Stock-based awards, ESOP activity and other
1

25

 


 
26

 

 
26

Reclassification of income tax effects from tax reform


 
2,408

(2,408
)
 

 

 

Net decrease in noncontrolling interests in subsidiary


 
 

 

 
(3
)
 
(3
)
Balance at March 25, 2018
$
284

$

 
$
14,123

$
(14,589
)
 
$
(182
)
 
$
71

 
$
(111
)
The accompanying notes are an integral part of these unaudited consolidated financial statements.


7


Table of Contents
Lockheed Martin Corporation
Notes to Consolidated Financial Statements (unaudited)



NOTE 1 – BASIS OF PRESENTATION
We prepared these consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information, the instructions to Form 10-Q and Article 10 of U.S. Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.
In the opinion of management, these consolidated financial statements reflect all adjustments that are of a normal recurring nature necessary for a fair presentation of our results of operations, financial condition, and cash flows for the interim periods presented. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. We base these estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Our actual results may differ materially from these estimates. Significant estimates inherent in the preparation of our consolidated financial statements include, but are not limited to, accounting for sales and cost recognition, postretirement benefit plans, environmental receivables and liabilities, evaluation of goodwill and other assets for impairment, income taxes including deferred tax assets, fair value measurements and contingencies. The consolidated financial statements include the accounts of subsidiaries we control and variable interest entities if we are the primary beneficiary. We eliminate intercompany balances and transactions in consolidation.
We close our books and records on the last Sunday of the calendar quarter, which was on March 31 for the first quarter of 2019 and March 25 for the first quarter of 2018, to align our financial closing with our business processes. The consolidated financial statements and tables of financial information included herein are labeled based on that convention. This practice only affects interim periods as our fiscal year ends on December 31.
We adopted Accounting Standards Update (ASU) 2016-02, Leases (Topic 842), effective January 1, 2019, using a modified retrospective transition method. Consequently, periods prior to January 1, 2019 are not restated for the adoption of ASU 2016-02. See “Note 6 – Leases” and “Note 12 – Recent Accounting Pronouncements” for more information regarding our adoption of this standard. Other than the changes in our accounting policies related to adoption of ASU 2016-02, we followed the accounting policies disclosed in the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 (2018 Form 10-K) filed with the SEC.
The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the full year or future periods. Unless otherwise noted, we present all per share amounts cited in these consolidated financial statements on a “per diluted share” basis. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our 2018 Form 10-K.
NOTE 2 – EARNINGS PER COMMON SHARE
The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions):
 
 
Quarters Ended
 
 
 
March 31,
2019
 
March 25,
2018
 
Weighted average common shares outstanding for basic computations
 
282.5

 
 
285.5

 
 
Weighted average dilutive effect of equity awards
 
1.8

 
 
2.4

 
 
Weighted average common shares outstanding for diluted computations
 
284.3

 
 
287.9

 
 

We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented. Our calculation of diluted earnings per common share also includes the dilutive effects for the assumed vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs) and exercise of outstanding stock options based on the treasury stock method. There were no significant anti-dilutive equity awards during the quarters ended March 31, 2019 or March 25, 2018.

8



Table of Contents
Lockheed Martin Corporation
Notes to Consolidated Financial Statements (unaudited) (continued)

NOTE 3 – INFORMATION ON BUSINESS SEGMENTS
We operate in four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. We organize our business segments based on the nature of the products and services offered.
Net sales and operating profit of our business segments exclude intersegment sales and cost of sales as these activities are eliminated in consolidation. Business segment operating profit includes our share of earnings or losses from equity method investees as the operating activities of the equity method investees are closely aligned with the operations of our business segments.
Business segment operating profit also includes total pension and other postretirement benefit plan costs recoverable on U.S. Government contracts as determined in accordance with U.S. Government cost accounting standards (CAS). However, our financial statements must present total costs calculated in accordance with Financial Accounting Standards (FAS) under U.S. GAAP. Accordingly, the adjustment from CAS cost to FAS service cost for our postretirement benefit plans is excluded from business segment operating profit (see additional discussion below). Business segment operating profit also excludes expense for stock-based compensation, corporate costs not considered allocable under FAR, and the effects of items not considered part of management’s evaluation of segment operating performance.
Excluded items are included in the reconciling item “Unallocated items” between operating profit from our business segments and our consolidated operating profit. See “Note 11 – Other” for a discussion related to certain factors that may impact the comparability of net sales and operating profit of our business segments. Summary operating results for each of our business segments were as follows (in millions):
 
 
Quarters Ended
 
 
 
March 31,
2019
 
March 25,
2018
 
Net sales
 
 
 
 
 
 
 
Aeronautics
 
$
5,584

 
 
$
4,398

 
 
Missiles and Fire Control
 
2,350

 
 
1,677

 
 
Rotary and Mission Systems
 
3,762

 
 
3,223

 
 
Space
 
2,640

 
 
2,337

 
 
Total net sales
 
$
14,336

 
 
$
11,635

 
 
Operating profit
 
 
 
 
 
 
 
Aeronautics
 
$
585

 
 
$
474

 
 
Missiles and Fire Control
 
417

 
 
261

 
 
Rotary and Mission Systems
 
379

 
 
311

 
 
Space
 
334

 
 
264

 
 
Total business segment operating profit
 
1,715

 
 
1,310

 
 
Unallocated items
 
 
 
 
 
 
 
FAS/CAS operating adjustment (a)
 
512

 
 
451

 
 
Stock-based compensation
 
(37
)
 
 
(38
)
 
 
Other, net
 
93

 
 
2

 
 
Total unallocated items
 
568

 
 
415

 
 
Total consolidated operating profit
 
$
2,283

 
 
$
1,725

 
 
Intersegment sales
 
 
 
 
 
 
 
Aeronautics
 
$
42

 
 
$
25

 
 
Missiles and Fire Control
 
121

 
 
95

 
 
Rotary and Mission Systems
 
580

 
 
461

 
 
Space
 
68

 
 
45

 
 
Total intersegment sales
 
$
811

 
 
$
626

 
 
(a) 
The FAS/CAS operating adjustment represents the difference between the service cost component of FAS pension expense and total pension costs recoverable on U.S. Government contracts as determined in accordance with CAS.  

9



Table of Contents
Lockheed Martin Corporation
Notes to Consolidated Financial Statements (unaudited) (continued)

Our total net FAS/CAS pension adjustment for the quarters ended March 31, 2019 and March 25, 2018, including the service and non-service cost components of FAS pension expense for our qualified defined benefit pension plans, were as follows (in millions):
 
 
Quarters Ended
 
 
 
March 31,
2019
 
March 25,
2018
 
Total FAS expense and CAS costs
 
 
 
 
 
 
 
FAS pension expense
 
$
(273
)
 
 
$
(356
)
 
 
Less: CAS pension cost
 
641

 
 
608

 
 
Net FAS/CAS pension adjustment
 
$
368

 
 
$
252

 
 
 
 
 
 
 
 
 
 
Service and non-service cost reconciliation
 
 
 
 
 
 
 
FAS pension service cost
 
$
(129
)
 
 
$
(157
)
 
 
Less: CAS pension cost
 
641

 
 
608

 
 
FAS/CAS operating adjustment
 
512

 
 
451

 
 
Non-operating FAS pension cost(a)
 
(144
)
 
 
(199
)
 
 
Net FAS/CAS pension adjustment
 
$
368

 
 
$
252

 
 
(a) 
The non-service cost components of net periodic benefit cost relate only to our qualified defined benefit pension plans. In addition to the non service cost components in the table above, we incurred similar costs for our other postretirement benefit plans of $30 million and $17 million for the quarters ended March 31, 2019 and March 25, 2018.
We recover CAS pension and other postretirement benefit plan cost through the pricing of our products and services on U.S. Government contracts and, therefore, recognize CAS cost in each of our business segment’s net sales and cost of sales. Our consolidated financial statements must present FAS pension and other postretirement benefit plan expense calculated in accordance with FAS requirements under U.S. GAAP. The operating portion of the net FAS/CAS pension adjustment represents the difference between the service cost component of FAS pension expense and total CAS pension cost. The non-service FAS pension cost component is included in other non-operating expense, net in our consolidated statements of earnings. The net FAS/CAS pension adjustment increases or decreases CAS pension cost to equal total FAS pension cost (both service and non-service).

10



Table of Contents
Lockheed Martin Corporation
Notes to Consolidated Financial Statements (unaudited) (continued)

Net sales by products and services, contract type, customer, and geographic region were as follows (in millions):
 
 
Quarter Ended March 31, 2019
 
 
Aeronautics
 
MFC
 
RMS
 
Space
 
Total
Net sales
 
 
 
 
 
 
 
 
 
 
Products
 
$
4,796

 
$
1,916

 
$
3,059

 
$
2,199

 
$
11,970

Services
 
788

 
434

 
703

 
441

 
2,366

Total net sales
 
$
5,584

 
$
2,350

 
$
3,762

 
$
2,640

 
$
14,336

Net sales by contract type
 
 
 
 
 
 
 
 
 
 
Fixed-price
 
$
4,170

 
$
1,535

 
$
2,619

 
$
523

 
$
8,847

Cost-reimbursable
 
1,414

 
815

 
1,143

 
2,117

 
5,489

Total net sales
 
$
5,584

 
$
2,350

 
$
3,762

 
$
2,640

 
$
14,336

Net sales by customer
 
 
 
 
 
 
 
 
 
 
U.S. Government
 
$
3,435

 
$
1,633

 
$
2,675

 
$
2,236

 
$
9,979

International (a)
 
2,095

 
670

 
995

 
395

 
4,155

U.S. commercial and other
 
54

 
47

 
92

 
9

 
202

Total net sales
 
$
5,584

 
$
2,350

 
$
3,762

 
$
2,640

 
$
14,336

Net sales by geographic region
 
 
 
 
 
 
 
 
 
 
United States
 
$
3,489

 
$
1,680

 
$
2,767

 
$
2,245

 
$
10,181

Asia Pacific
 
906

 
122

 
330

 
8

 
1,366

Europe
 
798

 
122

 
198

 
381

 
1,499

Middle East
 
337

 
413

 
285

 
6

 
1,041

Other
 
54

 
13

 
182

 

 
249

Total net sales
 
$
5,584

 
$
2,350

 
$
3,762

 
$
2,640

 
$
14,336

 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 25, 2018
 
 
Aeronautics
 
MFC
 
RMS
 
Space
 
Total
Net sales
 
 
 
 
 
 
 
 
 
 
Products
 
$
3,770

 
$
1,353

 
$
2,717

 
$
1,922

 
$
9,762

Services
 
628

 
324

 
506

 
415

 
1,873

Total net sales
 
$
4,398

 
$
1,677

 
$
3,223

 
$
2,337

 
$
11,635

Net sales by contract type
 
 
 
 
 
 
 
 
 
 
Fixed-price
 
$
3,215

 
$
1,112

 
$
2,208

 
$
400

 
$
6,935

Cost-reimbursable
 
1,183

 
565

 
1,015

 
1,937

 
4,700

Total net sales
 
$
4,398

 
$
1,677

 
$
3,223

 
$
2,337

 
$
11,635

Net sales by customer
 
 
 
 
 
 
 
 
 
 
U.S. Government
 
$
2,765

 
$
1,088

 
$
2,356

 
$
1,870

 
$
8,079

International (a)
 
1,577

 
554

 
781

 
456

 
3,368

U.S. commercial and other
 
56

 
35

 
86

 
11

 
188

Total net sales
 
$
4,398

 
$
1,677

 
$
3,223

 
$
2,337

 
$
11,635

Net sales by geographic region
 
 
 
 
 
 
 
 
 
 
United States
 
$
2,821

 
$
1,123

 
$
2,442

 
$
1,881

 
$
8,267

Asia Pacific
 
754

 
98

 
324

 
23

 
1,199

Europe
 
508

 
69

 
155

 
426

 
1,158

Middle East
 
257

 
380

 
171

 
7

 
815

Other
 
58

 
7

 
131

 

 
196

Total net sales
 
$
4,398

 
$
1,677

 
$
3,223

 
$
2,337

 
$
11,635

 
 
 
 
 
 
 
 
 
 
 

(a) 
International sales include foreign military sales (FMS) contracted through the U.S. Government and direct commercial sales to international governments and other international customers.

11



Table of Contents
Lockheed Martin Corporation
Notes to Consolidated Financial Statements (unaudited) (continued)

Total assets for each of our business segments were as follows (in millions):
 
 
March 31,
2019
 
December 31,
2018
Assets