8-K
GENERAL DYNAMICS CORP (GD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 29, 2020 (July 29, 2020)
GENERAL DYNAMICS CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 1-3671 | 13-1673581 | |||
|---|---|---|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) | |||
| 11011 Sunset Hills Road | , | Reston, | Virginia | 20190 | |
| --- | --- | --- | --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
(703) 876-3000
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||
|---|---|---|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d- 2(b)) | |||
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||
| Securities registered pursuant to Section 12(b) of the Act: | ||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common Stock | GD | New York Stock Exchange | ||
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||||
| 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. ☐ | ||||
| Item 2.02 | Results of Operations and Financial Condition | |||
| --- | --- |
On July 29, 2020, General Dynamics announced its financial results for the quarter ended June 28, 2020. A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K and is hereby incorporated by reference.
| Item 9.01 | Financial Statements and Exhibits |
|---|---|
| (d) | Exhibits (furnished only) |
| --- | --- |
| 99.1 | General Dynamics press release datedJuly29, 2020, with respect to the company’s financial results for the quarter endedJune28, 2020. |
| --- | --- |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| GENERAL DYNAMICS CORPORATION | ||
|---|---|---|
| by | /s/ William A. Moss | |
| William A. Moss <br>Vice President and Controller<br>(Authorized Officer and Chief Accounting Officer) | ||
| Dated: July 29, 2020 |
Document
Exhibit 99.1
| 11011 Sunset Hills Road | |
|---|---|
| Reston, Virginia 20190 | News |
| www.gd.com |
Contact: Jeff A. Davis
Tel: 703 876 3483
press@generaldynamics.com
General Dynamics Reports Second-Quarter 2020 Results
July 29, 2020
•Diluted EPS of $2.18
•Net earnings of $625 million on revenue of $9.3 billion
•Free cash flow conversion 100%
•32 aircraft delivered despite pandemic-caused delivery challenges
RESTON, Va. – General Dynamics (NYSE: GD) today reported second-quarter 2020 net earnings of $625 million on revenue of $9.3 billion. Diluted earnings per share (EPS) were $2.18.
“We have continued to operate throughout the COVID-19 pandemic, meeting our customers’ needs while keeping our people as safe as possible,” said Phebe N. Novakovic, chairman and chief executive officer. “We are focused on the basics of early and aggressive cost management, performance and cash conversion as we manage through this period.”
Aircraft deliveries
The company delivered 32 aircraft during the quarter, up from 23 last quarter, despite continued pandemic-related challenges to making international deliveries.
Cash
Net cash provided by operating activities in the quarter totaled $843 million, $552 million better than the year-ago quarter. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $622 million, 100% of net earnings. The company ended the quarter with $2.3 billion of cash on hand, $1.6 billion more than at the end of second-quarter 2019.
Backlog
Total backlog at the end of second-quarter 2020 was $82.7 billion, 22% higher than the year-ago quarter. Estimated potential contract value, representing management’s estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $49.6 billion. Total estimated contract value, the sum of all backlog components, was $132.2 billion at the end of the quarter, approximately 30% more than the year-ago quarter.
Significant awards in the quarter included a contract to construct the first two Columbia-class submarines which will be worth $11.5 billion when funding is received from Congress; $320 million to upgrade Stryker vehicles to the double-V-hull A1 configuration; $215 million from the U.S. Army to produce Hydra-70 rockets; $175 million from the Army for computing and
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communications equipment under the Common Hardware Systems-5 program; $160 million in separate contracts from the U.S. Navy to provide missile components for the Aegis Ballistic Missile Defense program and gun systems for the F-35 Joint Strike Fighter; $130 million from the Centers for Medicare and Medicaid Services for several contracts, including support of the agency’s Healthcare Integrated General Ledger Accounting System (HIGLAS) application; and $125 million for several key contracts to provide intelligence services to classified customers.
About General Dynamics
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; IT services; C4ISR solutions; and shipbuilding and ship repair. General Dynamics employs approximately 100,000 people worldwide and generated $39.4 billion in revenue in 2019. More information is available at www.gd.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 risks and uncertainties that are difficult to predict. Therefore, 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, its Quarterly Reports on Form 10-Q and its Current Reports on Form 8-K. All forward-looking statements speak only as of the date they were made. The company does not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the date of this press release.
WEBCAST INFORMATION: General Dynamics will webcast its second-quarter 2020 financial results conference call at 9 a.m. EDT on Wednesday, July 29, 2020. The webcast will be a listen-only audio event available at www.gd.com. An on-demand replay of the webcast will be available one hour after the end of the call and end on August 5, 2020. To hear a recording of the conference call by telephone, please call 1-877-344-7529 (international: 1-412-317-0088) passcode 10144907. Charts furnished to investors and securities analysts in connection with General Dynamics’ announcement of its financial results are available at www.gd.com.
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EXHIBIT A
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Three Months Ended | Variance | ||||||
|---|---|---|---|---|---|---|---|
| June 28, 2020 | June 30, 2019 | % | |||||
| Revenue | $ | 9,264 | $ | 9,555 | (3.0) | % | |
| Operating costs and expenses | (8,423) | (8,465) | 42 | ||||
| Operating earnings | 841 | 1,090 | (249) | (22.8) | % | ||
| Interest, net | (132) | (119) | (13) | ||||
| Other, net | 18 | 12 | 6 | ||||
| Earnings before income tax | 727 | 983 | (256) | (26.0) | % | ||
| Provision for income tax, net | (102) | (177) | 75 | ||||
| Net earnings | $ | 625 | $ | 806 | (22.5) | % | |
| Earnings per share—basic | $ | 2.18 | $ | 2.80 | (22.1) | % | |
| Basic weighted average shares outstanding | 286.4 | 288.1 | |||||
| Earnings per share—diluted | $ | 2.18 | $ | 2.77 | (21.3) | % | |
| Diluted weighted average shares outstanding | 286.9 | 290.8 |
All values are in US Dollars.
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EXHIBIT B
CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Six Months Ended | Variance | ||||||
|---|---|---|---|---|---|---|---|
| June 28, 2020 | June 30, 2019 | % | |||||
| Revenue | $ | 18,013 | $ | 18,816 | (4.3) | % | |
| Operating costs and expenses | (16,231) | (16,712) | 481 | ||||
| Operating earnings | 1,782 | 2,104 | (322) | (15.3) | % | ||
| Interest, net | (239) | (236) | (3) | ||||
| Other, net | 32 | 30 | 2 | ||||
| Earnings before income tax | 1,575 | 1,898 | (323) | (17.0) | % | ||
| Provision for income tax, net | (244) | (347) | 103 | ||||
| Net earnings | $ | 1,331 | $ | 1,551 | (14.2) | % | |
| Earnings per share—basic | $ | 4.63 | $ | 5.39 | (14.1) | % | |
| Basic weighted average shares outstanding | 287.5 | 288.0 | |||||
| Earnings per share—diluted | $ | 4.61 | $ | 5.33 | (13.5) | % | |
| Diluted weighted average shares outstanding | 288.5 | 290.8 |
All values are in US Dollars.
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EXHIBIT C
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Three Months Ended | Variance | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 28, 2020 | June 30, 2019 | % | |||||||
| Revenue: | |||||||||
| Aerospace | $ | 1,974 | $ | 2,136 | (7.6) | % | |||
| Combat Systems | 1,754 | 1,659 | 95 | 5.7 | % | ||||
| Information Technology | 1,884 | 2,158 | (274) | (12.7) | % | ||||
| Mission Systems | 1,181 | 1,277 | (96) | (7.5) | % | ||||
| Marine Systems | 2,471 | 2,325 | 146 | 6.3 | % | ||||
| Total | $ | 9,264 | $ | 9,555 | (3.0) | % | |||
| Operating earnings: | |||||||||
| Aerospace | $ | 159 | $ | 331 | (52.0) | % | |||
| Combat Systems | 239 | 242 | (3) | (1.2) | % | ||||
| Information Technology | 83 | 154 | (71) | (46.1) | % | ||||
| Mission Systems | 164 | 162 | 2 | 1.2 | % | ||||
| Marine Systems | 200 | 197 | 3 | 1.5 | % | ||||
| Corporate | (4) | 4 | (8) | (200.0) | % | ||||
| Total | $ | 841 | $ | 1,090 | (22.8) | % | |||
| Operating margin: | |||||||||
| Aerospace | 8.1 | % | 15.5 | % | |||||
| Combat Systems | 13.6 | % | 14.6 | % | |||||
| Information Technology | 4.4 | % | 7.1 | % | |||||
| Mission Systems | 13.9 | % | 12.7 | % | |||||
| Marine Systems | 8.1 | % | 8.5 | % | |||||
| Total | 9.1 | % | 11.4 | % |
All values are in US Dollars.
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EXHIBIT D
REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Six Months Ended | Variance | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| June 28, 2020 | June 30, 2019 | % | |||||||
| Revenue: | |||||||||
| Aerospace | $ | 3,665 | $ | 4,376 | (16.2) | % | |||
| Combat Systems | 3,462 | 3,295 | 167 | 5.1 | % | ||||
| Information Technology | 3,872 | 4,327 | (455) | (10.5) | % | ||||
| Mission Systems | 2,297 | 2,435 | (138) | (5.7) | % | ||||
| Marine Systems | 4,717 | 4,383 | 334 | 7.6 | % | ||||
| Total | $ | 18,013 | $ | 18,816 | (4.3) | % | |||
| Operating earnings: | |||||||||
| Aerospace | $ | 399 | $ | 659 | (39.5) | % | |||
| Combat Systems | 462 | 448 | 14 | 3.1 | % | ||||
| Information Technology | 233 | 310 | (77) | (24.8) | % | ||||
| Mission Systems | 312 | 310 | 2 | 0.6 | % | ||||
| Marine Systems | 384 | 377 | 7 | 1.9 | % | ||||
| Corporate | (8) | — | (8) | — | % | ||||
| Total | $ | 1,782 | $ | 2,104 | (15.3) | % | |||
| Operating margin: | |||||||||
| Aerospace | 10.9 | % | 15.1 | % | |||||
| Combat Systems | 13.3 | % | 13.6 | % | |||||
| Information Technology | 6.0 | % | 7.2 | % | |||||
| Mission Systems | 13.6 | % | 12.7 | % | |||||
| Marine Systems | 8.1 | % | 8.6 | % | |||||
| Total | 9.9 | % | 11.2 | % |
All values are in US Dollars.
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EXHIBIT E
CONSOLIDATED BALANCE SHEET
DOLLARS IN MILLIONS
| (Unaudited) | ||||
|---|---|---|---|---|
| June 28, 2020 | December 31, 2019 | |||
| ASSETS | ||||
| Current assets: | ||||
| Cash and equivalents | $ | 2,300 | $ | 902 |
| Accounts receivable | 3,515 | 3,544 | ||
| Unbilled receivables | 7,715 | 7,857 | ||
| Inventories | 6,666 | 6,306 | ||
| Other current assets | 939 | 1,171 | ||
| Total current assets | 21,135 | 19,780 | ||
| Noncurrent assets: | ||||
| Property, plant and equipment, net | 4,721 | 4,475 | ||
| Intangible assets, net | 2,197 | 2,315 | ||
| Goodwill | 19,718 | 19,677 | ||
| Other assets | 2,451 | 2,594 | ||
| Total noncurrent assets | 29,087 | 29,061 | ||
| Total assets | $ | 50,222 | $ | 48,841 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
| Current liabilities: | ||||
| Short-term debt and current portion of long-term debt | $ | 4,121 | $ | 2,920 |
| Accounts payable | 2,383 | 3,162 | ||
| Customer advances and deposits | 6,212 | 7,148 | ||
| Other current liabilities | 3,890 | 3,571 | ||
| Total current liabilities | 16,606 | 16,801 | ||
| Noncurrent liabilities: | ||||
| Long-term debt | 10,470 | 9,010 | ||
| Other liabilities | 9,256 | 9,453 | ||
| Total noncurrent liabilities | 19,726 | 18,463 | ||
| Shareholders’ equity: | ||||
| Common stock | 482 | 482 | ||
| Surplus | 3,050 | 3,039 | ||
| Retained earnings | 32,294 | 31,633 | ||
| Treasury stock | (17,809) | (17,358) | ||
| Accumulated other comprehensive loss | (4,127) | (4,219) | ||
| Total shareholders’ equity | 13,890 | 13,577 | ||
| Total liabilities and shareholders’ equity | $ | 50,222 | $ | 48,841 |
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EXHIBIT F
CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)
DOLLARS IN MILLIONS
| Six Months Ended | ||||
|---|---|---|---|---|
| June 28, 2020 | June 30, 2019 | |||
| Cash flows from operating activities—continuing operations: | ||||
| Net earnings | $ | 1,331 | $ | 1,551 |
| Adjustments to reconcile net earnings to net cash from operating activities: | ||||
| Depreciation of property, plant and equipment | 254 | 232 | ||
| Amortization of intangible and finance lease right-of-use assets | 177 | 183 | ||
| Equity-based compensation expense | 61 | 72 | ||
| Deferred income tax benefit | (83) | (17) | ||
| (Increase) decrease in assets, net of effects of business acquisitions: | ||||
| Accounts receivable | (1) | 64 | ||
| Unbilled receivables | 160 | (1,074) | ||
| Inventories | (433) | (556) | ||
| Increase (decrease) in liabilities, net of effects of business acquisitions: | ||||
| Accounts payable | (782) | (301) | ||
| Customer advances and deposits | (863) | (607) | ||
| Other, net | 356 | (51) | ||
| Net cash provided (used) by operating activities | 177 | (504) | ||
| Cash flows from investing activities: | ||||
| Capital expenditures | (406) | (362) | ||
| Other, net | 184 | (1) | ||
| Net cash used by investing activities | (222) | (363) | ||
| Cash flows from financing activities: | ||||
| Proceeds from fixed-rate notes | 3,960 | — | ||
| Repayment of fixed-rate notes | (2,000) | — | ||
| Proceeds from commercial paper, net | 816 | 1,394 | ||
| Dividends paid | (610) | (563) | ||
| Purchases of common stock | (501) | (231) | ||
| Repayment of floating-rate notes | (500) | — | ||
| Proceeds from commercial paper, gross (maturities greater than 3 months) | 420 | — | ||
| Other, net | (118) | 30 | ||
| Net cash provided by financing activities | 1,467 | 630 | ||
| Net cash used by discontinued operations | (24) | (24) | ||
| Net increase (decrease) in cash and equivalents | 1,398 | (261) | ||
| Cash and equivalents at beginning of period | 902 | 963 | ||
| Cash and equivalents at end of period | $ | 2,300 | $ | 702 |
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EXHIBIT G
ADDITIONAL FINANCIAL INFORMATION - (UNAUDITED)
DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS
| Other Financial Information: | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 28, 2020 | December 31, 2019 | |||||||||||
| Debt-to-equity (a) | 105.0 | % | 87.9 | % | ||||||||
| Debt-to-capital (b) | 51.2 | % | 46.8 | % | ||||||||
| Book value per share (c) | 48.41 | $ | 46.88 | |||||||||
| Shares outstanding | 286,932,436 | 289,610,336 | ||||||||||
| Second Quarter | Six Months | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Income tax payments, net | $ | 13 | $ | 360 | $ | 56 | $ | 397 | ||||
| Company-sponsored research and development (d) | $ | 116 | $ | 120 | $ | 194 | $ | 242 | ||||
| Return on sales (e) | 6.7 | % | 8.4 | % | 7.4 | % | 8.2 | % | ||||
| Non-GAAP Financial Measures: | ||||||||||||
| Second Quarter | Six Months | |||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| Earnings before interest, taxes, depreciation and amortization: | ||||||||||||
| Net earnings | $ | 625 | $ | 806 | $ | 1,331 | $ | 1,551 | ||||
| Interest, net | 132 | 119 | 239 | 236 | ||||||||
| Provision for income tax, net | 102 | 177 | 244 | 347 | ||||||||
| Depreciation of property, plant and equipment | 132 | 118 | 254 | 232 | ||||||||
| Amortization of intangible and finance lease right-of-use assets | 87 | 92 | 177 | 183 | ||||||||
| Earnings before interest, taxes, depreciation and amortization (f) | $ | 1,078 | $ | 1,312 | $ | 2,245 | $ | 2,549 | ||||
| Free cash flow from operations: | ||||||||||||
| Net cash provided (used) by operating activities | $ | 843 | $ | 291 | $ | 177 | $ | (504) | ||||
| Capital expenditures | (221) | (181) | (406) | (362) | ||||||||
| Free cash flow from operations (g) | $ | 622 | $ | 110 | $ | (229) | $ | (866) |
(a)Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.
(b)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.
(c)Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.
(d)Includes independent research and development and Aerospace product-development costs.
(e)Return on sales is calculated as net earnings divided by revenue.
(f)We believe earnings before interest, taxes, depreciation and amortization (EBITDA) is a useful measure for investors because it provides another measure of our profitability and our ability to service our debt. We calculate EBITDA by adding back interest, taxes, depreciation and amortization to net earnings. The most directly comparable GAAP measure to EBITDA is net earnings.
(g)We believe free cash flow from operations is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying maturing debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow from operations to assess the quality of our earnings and as a key performance measure in evaluating management. The most directly comparable GAAP measure to free cash flow from operations is net cash provided (used) by operating activities.
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EXHIBIT H
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
| Funded | Unfunded | Total<br>Backlog | Estimated<br><br>Potential<br><br>Contract Value* | Total <br>Estimated<br>Contract Value | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Second Quarter 2020: | ||||||||||
| Aerospace | $ | 11,874 | $ | 239 | $ | 12,113 | $ | 2,834 | $ | 14,947 |
| Combat Systems | 13,863 | 242 | 14,105 | 6,399 | 20,504 | |||||
| Information Technology | 5,464 | 3,463 | 8,927 | 18,392 | 27,319 | |||||
| Mission Systems | 4,856 | 185 | 5,041 | 7,510 | 12,551 | |||||
| Marine Systems | 25,118 | 17,365 | 42,483 | 14,441 | 56,924 | |||||
| Total | $ | 61,175 | $ | 21,494 | $ | 82,669 | $ | 49,576 | $ | 132,245 |
| First Quarter 2020: | ||||||||||
| Aerospace | $ | 12,998 | $ | 274 | $ | 13,272 | $ | 2,837 | $ | 16,109 |
| Combat Systems | 14,373 | 244 | 14,617 | 4,253 | 18,870 | |||||
| Information Technology | 5,375 | 4,127 | 9,502 | 18,638 | 28,140 | |||||
| Mission Systems | 4,947 | 229 | 5,176 | 7,957 | 13,133 | |||||
| Marine Systems | 26,112 | 17,053 | 43,165 | 4,460 | 47,625 | |||||
| Total | $ | 63,805 | $ | 21,927 | $ | 85,732 | $ | 38,145 | $ | 123,877 |
| Second Quarter 2019: | ||||||||||
| Aerospace | $ | 11,932 | $ | 213 | $ | 12,145 | $ | 2,079 | $ | 14,224 |
| Combat Systems | 14,794 | 438 | 15,232 | 4,113 | 19,345 | |||||
| Information Technology | 4,446 | 4,405 | 8,851 | 17,983 | 26,834 | |||||
| Mission Systems | 4,925 | 258 | 5,183 | 6,847 | 12,030 | |||||
| Marine Systems | 18,344 | 7,899 | 26,243 | 3,223 | 29,466 | |||||
| Total | $ | 54,441 | $ | 13,213 | $ | 67,654 | $ | 34,245 | $ | 101,899 |
* The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options and other agreements with existing customers to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.
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EXHIBIT H-1
BACKLOG - (UNAUDITED)
DOLLARS IN MILLIONS
| Funded Backlog | Unfunded Backlog |
|---|
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EXHIBIT H-2
BACKLOG BY SEGMENT - (UNAUDITED)
DOLLARS IN MILLIONS
| Funded Backlog | Unfunded Backlog |
|---|
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EXHIBIT I
SECOND QUARTER 2020 SIGNIFICANT ORDERS - (UNAUDITED)
DOLLARS IN MILLIONS
We received the following significant contract awards during the second quarter of 2020:
Combat Systems:
•$320 from the U.S. Army to upgrade Stryker vehicles to the double-V-hull A1 configuration. The contract has a maximum potential value of $2.5 billion.
•$215 from the Army for the production of Hydra-70 rockets. The contract has a maximum potential value of $3.4 billion.
•$110 from the U.S. Navy to provide missile components for the Aegis Ballistic Missile Defense program.
•$100 for various munitions and ordnance.
•$50 from the Navy to produce gun systems for the F-35 Joint Strike Fighter.
Information Technology:
•$120 from the U.S. Air Force for the Battlefield Information Collection and Exploitation System (BICES) program to provide intelligence information sharing capabilities for the Department of Defense (DoD). The contract has a maximum potential value of $620.
•$130 from the Centers for Medicare and Medicaid Services (CMS) for several contracts, including support of the agency’s Healthcare Integrated General Ledger Accounting System (HIGLAS) application.
•$125 for several key contracts to provide intelligence services to classified customers.
•$50 from the Navy to provide training and training-related program support.
•$40 to provide IT, cloud support and network management services for a commercial customer.
Mission Systems:
•$175 from the Army for computing and communications equipment under the Common Hardware Systems-5 program.
•$105 from the Navy to support the design and development of fire-control systems for ballistic-missile submarines for the Navy and the U.K. Royal Navy.
•$60 to provide sustainment services for the Navy’s next-generation Mobile User Objective System (MUOS) satellite communications system.
•$35 from the U.S. Coast Guard to provide system sustainment support for the Rescue 21 program.
•$35 from the Army to provide continued software support and engineering for the Warfighter Information Network-Tactical (WIN-T) Increment 2 program.
Marine Systems:
•A contract from the Navy to construct the first two Columbia-class submarines, which will be worth $11.5 billion when funding is received from Congress.
•$130 from the Navy for capital expenditures and industrial base development in support of the Arleigh Burke-class (DDG-51) guided-missile destroyer program.
•$80 from the Navy for Advanced Nuclear Plant Studies (ANPS) in support of the Columbia-class submarine program.
•$55 from the Navy to support the Common Missile Compartment work under joint development for the Navy and the U.K. Royal Navy.
•$45 from the Navy to provide ongoing lead yard services for the DDG-51 program.
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EXHIBIT J
AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)
| Second Quarter | Six Months | |||||||
|---|---|---|---|---|---|---|---|---|
| 2020 | 2019 | 2020 | 2019 | |||||
| Gulfstream Aircraft Deliveries (units): | ||||||||
| Large-cabin aircraft | 26 | 23 | 46 | 50 | ||||
| Mid-cabin aircraft | 6 | 8 | 9 | 15 | ||||
| Total | 32 | 31 | 55 | 65 | ||||
| Aerospace Book-to-Bill: | ||||||||
| Orders* | $ | 1,072 | $ | 2,198 | $ | 2,928 | $ | 5,329 |
| Revenue (excluding pre-owned aircraft sales) | 1,974 | 2,134 | 3,665 | 4,332 | ||||
| Book-to-Bill Ratio | 0.54x | 1.03x | 0.80x | 1.23x |
* Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog adjustments.