Lockheed Martin Corp. (LMT, Financial) filed Quarterly Report for the period ended 2009-09-27.
Lockheed Martin Corp. is a global enterprise principally engaged in the research design development manufacture and integration of advanced-technology systems products and services. The corporation's core businesses are systems integration space aeronautics and technology services. (Company Press Release) Lockheed Martin Corp. has a market cap of $27.35 billion; its shares were traded at around $71.58 with a P/E ratio of 9.5 and P/S ratio of 0.7. The dividend yield of Lockheed Martin Corp. stocks is 3.2%. Lockheed Martin Corp. had an annual average earning growth of 5.1% over the past 10 years.
Issuance and repayment of long-term debt In the first quarter of 2008, we issued $500 million of long-term notes due in 2013. The notes have a fixed coupon interest rate of 4.12%. Cash provided from operations has been our principal source of funds to reduce our long-term debt. In the third quarter of 2008, we paid a total of $1.0 billion representing the principal amount of our floating rate convertible debentures that were delivered for conversion or otherwise redeemed, and issued 5.0 million shares of our common stock to satisfy conversion obligations of $571 million in excess of the principal amount (see Note 8 under the caption Long-term Debt). Repayments of long-term debt in the first nine months of 2009 were de minimis, compared to $103 million during the comparable 2008 period.
At September 27, 2009, we held cash and cash equivalents of approximately $2.7 billion and short-term investments of $455 million. Our total debt, net of unamortized discounts, amounted to $3.8 billion at September 27, 2009, and is mainly in the form of publicly issued notes and debentures. Our debt-to-total capital ratio, net of unamortized discounts, was 55% at September 27, 2009 and 57% at December 31, 2008.
A reasonably possible change of plus or minus 25 basis points in the 6.125% discount rate, with all other assumptions held constant, would decrease or increase our estimated 2010 FAS/CAS pension adjustment by approximately $95 million due to the change in the 2010 FAS pension expense. Additionally, the amount of the qualified pension benefit obligation we record at the end of 2009 would decrease or increase by approximately $900 million to $1.0 billion, resulting in an estimated noncash after-tax increase or decrease to stockholders equity at the end of 2009 by approximately $560 million to $660 million.
As of September 27, 2009, we and Boeing each had provided the $25 million of funding to ULA under the additional capital contribution commitment. Of that amount, $22 million was contributed in the second quarter of 2009, prior to which we each received a dividend from ULA in a like amount. Other than the $22 million contribution, we did not provide further funding to ULA during the first nine months of 2009.
We maintain a Rabbi Trust which includes investments to fund certain of our non-qualified deferred compensation plans. As of September 27, 2009, investments in the Rabbi Trust totaled $548 million and are reflected at fair value on our Balance Sheet in other assets. The Rabbi Trust holds investments in marketable equity securities and fixed-income securities that are exposed to price changes and changes in interest rates. Changes in the value of the Rabbi Trust are recognized on our Statement of Earnings in other non-operating income (expense), net. During the quarter and nine months ended September 27, 2009, we recorded earnings totaling $52 million and $88 million related to the increase in the value of the Rabbi Trust assets. A portion of the liabilities associated with the deferred compensation plans supported by the Rabbi Trust is also impacted by changes in the market price of our common stock and certain market indices. Changes in the value of the deferred compensation liabilities are recognized on our Statement of Earnings in unallocated Corporate costs. The current portion of the deferred compensation plan liabilities is on our Balance Sheet in salaries, benefits, and payroll taxes, and the non-current portion of the liability is on our Balance Sheet in other liabilities. The resulting change in the value of the liabilities has the effect of partially offsetting the impact of changes in the value of the Rabbi Trust. During the quarter and nine months ended September 27, 2009, we recorded expense of $20 million and $34 million related to the increase in the value of the deferred compensation liabilities.
Read the The complete ReportLMT is in the portfolios of Glenn Greenberg of Chieftain Capital Management Inc, NWQ Managers of NWQ Investment Management Co, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, George Soros of Soros Fund Management LLC, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
Lockheed Martin Corp. is a global enterprise principally engaged in the research design development manufacture and integration of advanced-technology systems products and services. The corporation's core businesses are systems integration space aeronautics and technology services. (Company Press Release) Lockheed Martin Corp. has a market cap of $27.35 billion; its shares were traded at around $71.58 with a P/E ratio of 9.5 and P/S ratio of 0.7. The dividend yield of Lockheed Martin Corp. stocks is 3.2%. Lockheed Martin Corp. had an annual average earning growth of 5.1% over the past 10 years.
Highlight of Business Operations:
During the first nine months of 2009, we paid dividends of $668 million compared to $510 million in the comparable 2008 period. We paid quarterly dividends of $0.57 per share in the first three quarters of 2009 compared to $0.42 per share during the same periods of 2008. We also declared our fourth quarter dividend of $240 million in September 2009, which was recorded as a current liability and a reduction of retained earnings. This dividend will be paid in December 2009. In September 2009, our board of directors authorized an increase in our quarterly dividend to $0.63 per share from $0.57 per share beginning with the fourth quarter of 2009.Issuance and repayment of long-term debt In the first quarter of 2008, we issued $500 million of long-term notes due in 2013. The notes have a fixed coupon interest rate of 4.12%. Cash provided from operations has been our principal source of funds to reduce our long-term debt. In the third quarter of 2008, we paid a total of $1.0 billion representing the principal amount of our floating rate convertible debentures that were delivered for conversion or otherwise redeemed, and issued 5.0 million shares of our common stock to satisfy conversion obligations of $571 million in excess of the principal amount (see Note 8 under the caption Long-term Debt). Repayments of long-term debt in the first nine months of 2009 were de minimis, compared to $103 million during the comparable 2008 period.
At September 27, 2009, we held cash and cash equivalents of approximately $2.7 billion and short-term investments of $455 million. Our total debt, net of unamortized discounts, amounted to $3.8 billion at September 27, 2009, and is mainly in the form of publicly issued notes and debentures. Our debt-to-total capital ratio, net of unamortized discounts, was 55% at September 27, 2009 and 57% at December 31, 2008.
A reasonably possible change of plus or minus 25 basis points in the 6.125% discount rate, with all other assumptions held constant, would decrease or increase our estimated 2010 FAS/CAS pension adjustment by approximately $95 million due to the change in the 2010 FAS pension expense. Additionally, the amount of the qualified pension benefit obligation we record at the end of 2009 would decrease or increase by approximately $900 million to $1.0 billion, resulting in an estimated noncash after-tax increase or decrease to stockholders equity at the end of 2009 by approximately $560 million to $660 million.
As of September 27, 2009, we and Boeing each had provided the $25 million of funding to ULA under the additional capital contribution commitment. Of that amount, $22 million was contributed in the second quarter of 2009, prior to which we each received a dividend from ULA in a like amount. Other than the $22 million contribution, we did not provide further funding to ULA during the first nine months of 2009.
We maintain a Rabbi Trust which includes investments to fund certain of our non-qualified deferred compensation plans. As of September 27, 2009, investments in the Rabbi Trust totaled $548 million and are reflected at fair value on our Balance Sheet in other assets. The Rabbi Trust holds investments in marketable equity securities and fixed-income securities that are exposed to price changes and changes in interest rates. Changes in the value of the Rabbi Trust are recognized on our Statement of Earnings in other non-operating income (expense), net. During the quarter and nine months ended September 27, 2009, we recorded earnings totaling $52 million and $88 million related to the increase in the value of the Rabbi Trust assets. A portion of the liabilities associated with the deferred compensation plans supported by the Rabbi Trust is also impacted by changes in the market price of our common stock and certain market indices. Changes in the value of the deferred compensation liabilities are recognized on our Statement of Earnings in unallocated Corporate costs. The current portion of the deferred compensation plan liabilities is on our Balance Sheet in salaries, benefits, and payroll taxes, and the non-current portion of the liability is on our Balance Sheet in other liabilities. The resulting change in the value of the liabilities has the effect of partially offsetting the impact of changes in the value of the Rabbi Trust. During the quarter and nine months ended September 27, 2009, we recorded expense of $20 million and $34 million related to the increase in the value of the deferred compensation liabilities.
Read the The complete ReportLMT is in the portfolios of Glenn Greenberg of Chieftain Capital Management Inc, NWQ Managers of NWQ Investment Management Co, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, George Soros of Soros Fund Management LLC, Kenneth Fisher of Fisher Asset Management, LLC, Kenneth Fisher of Fisher Asset Management, LLC.
