Lockheed Martin 2nd Quarter 2014 Financial Results Conference Call
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Non-GAAP Financial Measures Disclosure
This presentation, and today's conference call remarks, contain non-Generally Accepted Accounting Principles (GAAP) financial measures (as
defined by SEC Regulation G). While we believe that these non-GAAP financial measures may be useful in evaluating Lockheed Martin, this
information should be considered supplemental and is not a substitute for financial information prepared in accordance with GAAP. In addition, our
definitions for non-GAAP measures may differ from similarly titled measures used by other companies or analysts.
Definitions of Non-GAAP Measures
Free Cash Flow
Lockheed Martin defines Free Cash Flow (FCF) as Cash from Operations, less Capital Expenditures.
Segment Operating Profit / Margin
Segment Operating Profit represents the total earnings from our business segments before unallocated income and expense, interest expense,
other non-operating income and expense, and income tax expense. This measure is used by our senior management in evaluating the
performance of our business segments. The caption "Total unallocated, net" reconciles Segment Operating Profit to Consolidated Operating
Profit. Segment Margin is calculated by dividing Segment Operating Profit by Sales. Mid-point Segment Margin represents the mid-point of the
outlook range for Segment Operating Profit divided by the mid-point of the outlook range for Sales.
2014 Outlook (April)
$44,000 45,500
$5,250 - 5,400
11.9%
$5,250 - 5,400
($ Millions)
Sales
Segment Operating Profit
Mid-Point Segment Margin
Consolidated Operating Profit
Segment Operating Profit
Total unallocated, net
Consolidated Operating Profit (GAAP)
Chart 14
Sales
$ 11,306
$ 11,306
2Q 2014
$
Profit
1,406
20
1,426
Margin
12.4%
12.6%
2014 Outlook (July)
No Change
$5,375 - 5,525
12.2%
$5,475-5,625
Sales
$ 11,408
$ 11,408
2Q 2013
$
$
Profit
1,533
(235)
1,298
Margin
13.4%
11.4%
July 22, 2014View entire presentation