Corporate Activities

Corporate activities
Owned
Aeronautics 5.50
Missiles and Fire Control 7.80
Rotary and Mission Systems 11.20
Space 9.30
Corporate activities 2.40
Total 36.20
Leased
3.00
2.60
4.70
2.90
0.90
14.10
Government-
Owned
14.70
2.20
0.20
0.90
—
18.00
Total
23.20
12.60
16.10
13.10
3.30
68.30
Purchases of Equity Securities
Total
Number of
Shares
Period (a) Purchased
September 26, 2022 – October 30 7,225,959

October 31, 2022 – November 2 961
November 28, 2022 – December 31, 2022 4,249
Total (c)(d) 7,231,169
Total Number of
Shares Purchased
Average as Part of Publicly
Price Paid Announced Plans
Per Share or Programs
$ 408.50 7,224,954
$ 474.20 —
$ 482.93 —
$ 410.10 7,224,954
mber of
urchased
f Publicly
ed Plans
ams Approximate Dollar Value of Shares That May Yet be Purchased Under the Plans or Programs (b)
(in millions)
$ 10,023
$ 10,023
$ 10,023
ITEM 6.
(In millions, except per share da 2022

Operating results
Net sales $ 65,984
Operating profit (a)(b) 8,348
Net earnings from continuing ope 5,732
Net loss from discontinued ope —
Net earnings (a)(b)(c)(d)(e)(f)(g 5,732
Earnings from continuing oper
Basic (a)(b)(c)(d)(e)(f)(g)(h) 21.74
Diluted (a)(b)(c)(d)(e)(f)(g)(h) 21.66
Earnings (loss) from discontin
Basic —
Diluted —
Earnings per common share
Basic (a)(b)(c)(d)(e)(f)(g)(h) 21.74
Diluted (a)(b)(c)(d)(e)(f)(g)(h) 21.66
Cash dividends declared per c $ 11.40
Balance sheet
Cash, cash equivalents and sho $ 2,547
Total current assets 20,991
Goodwill 10,780
Total assets (i) 52,880
Total current liabilities 15,887
Total debt, net 15,547
Total liabilities (c)(i) 43,614
Total equity 9,266
Common shares in stockholders’ 254
Cash flow information
Net cash provided by operating a $ 7,802
Net cash used for investing activ (1,789)
Net cash used for financing activ (7,070)
Backlog $ 149,998
2021 2020
$ 67,044 $ 65,398
9,123 8,644
6,315 6,888
— (55)
6,315 6,833
22.85 24.60
22.76 24.50
— (0.20)
— (0.20)
22.85 24.40
22.76 24.30
$ 10.60 $ 9.80
$ 3,604 $ 3,160
19,815 19,378
10,813 10,806
50,873 50,710
13,997 13,933
11,676 12,169
39,914 44,672
10,959 6,038
271 279
$ 9,221 $ 8,183
(1,161) (2,010)
(7,616) (4,527)
$ 135,355 $ 147,131
2019
$ 59,812
8,545
6,230
—
6,230
22.09
21.95
—
—
22.09
21.95
$ 9.00
$ 1,514
17,095
10,604
47,528
13,972
12,654
44,357
3,171
280
$ 7,311
(1,241)
(5,328)
$ 143,981
2018
$ 53,762
7,334
5,046
—
5,046
17.74
17.59
—
—
17.74
17.59
$ 8.20
$ 772
16,103
10,769
44,876
14,398
14,104
43,427
1,449
281
$ 3,138
(1,075)
(4,152)
$ 130,468
Consolidated Results of Operations
2022
Net sales $ 65,984
Cost of sales (57,697)
Gross profit 8,287
Other income (expense), net 61
Operating profit 8,348
Interest expense (623)
Non-service FAS pension (expe (971)
Other non-operating (expense) (74)
Earnings from continuing opera 6,680
Income tax expense (948)
Net earnings from continuing o 5,732
Net earnings $ 5,732
Diluted earnings (loss) per co
Continuing operations $ 21.66
Discontinued operations —
Total diluted earnings per com $ 21.66
2021 2020
$ 67,044 $ 65,398
(57,983) (56,744)
9,061 8,654
62 (10)
9,123 8,644
(569) (591)
(1,292) 219
288 (37)
7,550 8,235
(1,235) (1,347)
6,315 6,888
— (55)
$ 6,315 $ 6,833
$ 22.76 $ 24.50
— (0.20)
$ 22.76 $ 24.30
Net Sales
2022
Products $ 55,466
% of total net sales 84.10 %
Services 10,518
% of total net sales 15.90 %
Total net sales $ 65,984
2021
$ 56,435
% 84.20 %
10,609
% 15.80 %
$ 67,044
2020
$ 54,928
84.00 %
10,470
16.00 %
$ 65,398
Cost of Sales
2022
Cost of sales – products ($49,577)
% of product sales 89.40 %
Cost of sales – services (9,280)
% of service sales 88.20 %
Severance and other charges (100)
Other unallocated, net 1,260
Total cost of sales ($57,697)
2021
($50,273)
% 89.10 %
(9,463)
% 89.20 %
(36)
1,789
($57,983)
2020
($48,996)
89.20 %
(9,371)
89.50 %
(27)
1,650
($56,744)
Business Segment Results of Operations
2022
Net sales
Aeronautics $ 26,987
Missiles and Fire Control 11,317
Rotary and Mission Systems 16,148
Space 11,532
Operating profit
Aeronautics $ 2,866
Space 1,045
Total business segment operatin 7,219
Unallocated items
FAS/CAS pension operating adj 1,709
Severance and other charges (a (100)

Other, net (b) (480)
Total unallocated, net 1,129
Total consolidated operating pro $ 8,348
2021 2020
$ 26,748 $ 26,266
11,693 11,257
16,789 15,995
11,814 11,880
$ 67,044 $ 65,398
$ 2,799 $ 2,843
1,648 1,545
1,798 1,615
1,134 1,149
7,379 7,152
1,960 1,876
(36) (27)
(180) (357)
1,744 1,492
$ 9,123 $ 8,644
2022
Total FAS (expense) income and
FAS pension (expense) income ($1,058)
Less: CAS pension cost 1,796
Total FAS/CAS pension adjustm $ 738
Service and non-service cost rec

FAS pension service cost ($87)
Total FAS/CAS pension operati 1,709
2021 2020
($1,398) $ 118
2,066 1,977
$ 668 $ 2,095
($106) ($101)
2,066 1,977
1,960 1,876
(1,292) 219
$ 668 $ 2,095
Aeronautics
2022
Net sales $ 26,987
Operating margin 10.60 %
Backlog at year-end $ 56,630
2021
$ 26,748
2,799
% 10.50 %
$ 49,118
2020
$ 26,266
2,843
10.80 %
$ 56,551
Missiles and Fire Control
2022
Net sales $ 11,317
2021
$ 11,693
1,648
% 14.10 %
$ 27,021
2020
$ 11,257
1,545
13.70 %
$ 29,183
Rotary and Mission Systems
2022
Net sales $ 16,148
2021
$ 16,789
1,798
% 10.70 %
$ 33,700
2020
$ 15,995
1,615
10.10 %
$ 36,249
Space
2022
Net sales $ 11,532
2021
$ 11,814
1,134
% 9.60 %
$ 25,516
2020
$ 11,880
1,149
9.70 %
$ 25,148
Liquidity and Cash Flows
2022
Cash and cash equivalents at be $ 3,604
Operating activities
Net earnings 5,732
Noncash adjustments 2,455
Changes in working capital (733)
Other, net 348
Net cash provided by operating a 7,802
Net change in cash and cash eq (1,057)
Cash and cash equivalents at en $ 2,547
2021 2020
$ 3,160 $ 1,514
6,315 6,833
3,109 1,726
9 101
(212) (477)
9,221 8,183
(1,161) (2,010)
(7,616) (4,527)
444 1,646
$ 3,604 $ 3,160
Non-GAAP Financial Measure - Free Cash Flow
2022
Cash from operations $ 7,802
Capital expenditures (1,670)
Free cash flow $ 6,132
2021
$ 9,221
(1,522)
$ 7,699
2020
$ 8,183
(1,766)
$ 6,417
Contractual Commitments
Total
Total debt $ 16,842
Interest payments 15,028
Other liabilities 3,520
Operating lease obligations 1,342
Purchase obligations:
Operating activities 59,101
Capital expenditures 671
Total contractual cash obligatio $ 96,504
Due Within
1 Year
$ 118
768
222
327
27,925
472
$ 29,832
,
Total
Commitment
Standby letters of credit (a) $ 2,504
Surety bonds 342
Third-party Guarantees 904
Total commitments $ 3,750
Less Than
1 Year
$ 966
342
230
$ 1,538
Consolidated Statements of Earnings
Years Ended December 31,

2022
Net sales
Products $ 55,466
Services 10,518
Total net sales 65,984
Cost of sales
Products (49,577)
Services (9,280)
Severance and other charges (100)
Other unallocated, net 1,260
Total cost of sales (57,697)
Gross profit 8,287
Other income (expense), net 61
Interest expense (623)
Other non-operating (expense) (74)
Earnings from continuing opera 6,680
Income tax expense (948)
Net earnings from continuing o 5,732
Earnings (loss) per common sha

Basic
Basic earnings per common sha $ 21.74
Diluted
Diluted earnings per common s $ 21.66
2021 2020
$ 56,435 $ 54,928
10,609 10,470
67,044 65,398
(50,273) (48,996)
(9,463) (9,371)
(36) (27)
1,789 1,650
(57,983) (56,744)
9,061 8,654
62 (10)
9,123 8,644
(569) (591)
(1,292) 219
288 (37)
7,550 8,235
(1,235) (1,347)
6,315 6,888
— (55)
$ 6,315 $ 6,833
$ 22.85 $ 24.60
— (0.20)
$ 22.85 $ 24.40
$ 22.76 $ 24.50
— (0.20)
$ 22.76 $ 24.30
Consolidated Statements of Comprehensive Income

2022
Other comprehensive income (los
Postretirement benefit plans
Net actuarial gain (loss) recognized due to plan remeasurements, net of tax of $518 million
1,873 in 2022, $925 million in 2021 an
Amortization of actuarial losses and prior service credits, net of tax of $18 million 69
in 2022, $130 million in 2021 and $119 mi
Pension settlement charge, net of tax of $314 million in 2022 and $355 million 1,156
in 2021
Other, net, net of tax of $2 million in 2022, $11 million in 2021 and $5 million in(115)
2020
Other comprehensive income (los 2,983
Comprehensive income $ 8,715
2021 2020
$ 6,315 $ 6,833
3,404 (1,067)
477 440
1,310 —
(76) 60
5,115 (567)
$ 11,430 $ 6,266
Consolidated Balance Sheets
December 31,
2022
Assets
Current assets
Cash and cash equivalents $ 2,547
Receivables, net 2,505
Contract assets 12,318
Inventories 3,088
Other current assets 533
Total current assets 20,991
Property, plant and equipment, 7,975
Goodwill 10,780
Intangible assets, net 2,459
Deferred income taxes 3,744
Other noncurrent assets 6,931
Total assets $ 52,880
Liabilities and equity
Current liabilities
Accounts payable $ 2,117
Salaries, benefits and payroll ta 3,075
Contract liabilities 8,488
Other current liabilities 2,207
Total current liabilities 15,887
Long-term debt, net 15,429
Accrued pension liabilities 5,472
Other noncurrent liabilities 6,826
Total liabilities 43,614
Stockholders’ equity
Common stock, $1 par value per 254
Additional paid-in capital 92
Retained earnings 16,943
Accumulated other comprehensi (8,023)
Total stockholders’ equity 9,266
Total liabilities and equity $ 52,880
2021
$ 3,604
1,963
10,579
2,981
688
19,815
7,597
10,813
2,706
2,290
7,652
$ 50,873
$ 780
3,108
8,107
2,002
13,997
11,670
8,319
5,928
39,914
271
94
21,600
(11,006)
10,959
$ 50,873
Consolidated Statements of Cash Flows

2022
Operating activities
Adjustments to reconcile net ear
Depreciation and amortization 1,404
Stock-based compensation 238
Equity method investment imp —
Tax resolution related to forme —
Deferred income taxes (757)
Pension settlement charge 1,470
Severance and other charges 100
Changes in:
Receivables, net (542)
Contract assets (1,739)
Inventories (107)
Accounts payable 1,274
Contract liabilities 381
Income taxes 148
Qualified defined benefit pensi (412)
Other, net 612
Net cash provided by operating a 7,802
Investing activities
Capital expenditures (1,670)
Other, net (119)
Financing activities
Issuance of long-term debt, net 6,211
Repayments of long-term debt (2,250)
Repurchases of common stock (7,900)
Dividends paid (3,016)
Other, net (115)
Net change in cash and cash eq (1,057)
Cash and cash equivalents at be 3,604
Cash and cash equivalents at en $ 2,547
2021 2020
$ 6,315 $ 6,833
1,364 1,290
227 221
— 128
— 55
(183) 5
1,665 —
36 27
15 359
(1,034) (451)
564 74
(98) (372)
562 491
45 (19)
(267) (1,197)
10 739
9,221 8,183
(1,522) (1,766)
361 (244)
(1,161) (2,010)
— 1,131
(500) (1,650)
(4,087) (1,100)
(2,940) (2,764)
(89) (144)
(7,616) (4,527)
444 1,646
3,160 1,514
$ 3,604 $ 3,160
Consolidated Statements of Equity
Additional Paid-In
Common Stock Capital
Balance at December 31, 2019 $ 280 $—
Net earnings — —
Other comprehensive loss, net o— —
Repurchases of common stock (3) (256)
Dividends declared ($9.80 per s — —
Stock-based awards, ESOP activ 2 477
Net decrease in noncontrolling i— —

Balance at December 31, 2020 $ 279 $ 221
Other comprehensive income, ne — —
Dividends declared ($10.60 per — —
Net decrease in noncontrolling i— —

Other comprehensive income, ne — —
Dividends declared ($11.40 per — —

Accumulated
Other
Retained Comprehensive
Earnings Loss
$ 18,401 ($15,554)
6,833 —
— (567)
(841) —
(2,757) —
— —
— —
$ 21,636 ($16,121)
6,315 —
— 5,115
(3,407) —
(2,944) —
— —
— —
$ 21,600 ($11,006)
5,732 —
— 2,983
(7,379) —
(3,010) —
— —
$ 16,943 ($8,023)
Total Noncontrolling
Stockholders’ Interests in
Equity Subsidiary
$ 3,127 $ 44
6,833 —
(567) —
(1,100) —
(2,757) —
479 —
— (21)
$ 6,015 $ 23
6,315 —
5,115 —
(4,087) —
(2,944) —
545 —
— (23)
$ 10,959 $—
5,732 —
2,983 —
(7,900) —
(3,010) —
502 —
$ 9,266 $—
Total
Equity
$ 3,171
6,833
(567)
(1,100)
(2,757)
479
(21)
$ 6,038
6,315
5,115
(4,087)
(2,944)
545
(23)
$ 10,959
5,732
2,983
(7,900)
(3,010)
502
$ 9,266
Note 2 Earnings Per Share
2022
Weighted average common share 263.70
Weighted average dilutive effec 0.90
Weighted average common share 264.60
2021 2020
276.40 280.00
1.00 1.20
277.40 281.20
Summary Operating Results
2022
Net sales
Space 11,532
Operating profit
Aeronautics $ 2,866
Space 1,045
Total business segment operatin 7,219
Unallocated items
FAS/CAS pension operating adj 1,709
Severance and other charges (a (100)

Other, net (b) (480)
Total unallocated, net 1,129
Total consolidated operating pro $ 8,348
2021 2020
$ 26,748 $ 26,266
11,693 11,257
16,789 15,995
11,814 11,880
$ 67,044 $ 65,398
$ 2,799 $ 2,843
1,648 1,545
1,798 1,615
1,134 1,149
7,379 7,152
1,960 1,876
(36) (27)
(180) (357)
1,744 1,492
$ 9,123 $ 8,644
FAS/CAS Pension Operating Adjustment
2022
Total FAS (expense) income and
FAS pension (expense) income ($1,058)
Service and non-service cost rec

FAS pension service cost ($87)
Total FAS/CAS pension operati 1,709
2021 2020
($1,398) $ 118
2,066 1,977
$ 668 $ 2,095
($106) ($101)
2,066 1,977
1,960 1,876
(1,292) 219
$ 668 $ 2,095
Intersegment Sales
2022
Intersegment sales
Aeronautics $ 249
Missiles and Fire Control 627
Space 381
Total intersegment sales $ 3,187
2021 2020
$ 219 $ 243
618 562
1,895 1,903
360 377
$ 3,092 $ 3,085
Disaggregation of Net Sales
2022
Aeronautics
Net sales
Products $ 22,870
Services 4,117
Net sales by contract type
Fixed-price $ 19,431
Cost-reimbursable 7,556
Net sales by customer
U.S. Government $ 18,026
International (a) 8,811
U.S. commercial and other 150
Net sales by geographic region
United States $ 18,176
Europe 4,303
Asia Pacific 2,970
Middle East 1,103
Other 435
MFC RMS
$ 10,048 $ 12,811
1,269 3,337
$ 11,317 $ 16,148
$ 8,014 $ 10,460
3,303 5,688
$ 11,317 $ 16,148
$ 7,814 $ 11,331
3,496 4,470
7 347
$ 11,317 $ 16,148
$ 7,821 $ 11,678
1,020 857
461 1,994
1,858 823
157 796
$ 11,317 $ 16,148
Space
$ 9,737
1,795
$ 11,532
$ 3,064
8,468
$ 11,532
$ 11,344
154
34
$ 11,532
$ 11,378
87
54
12
1
$ 11,532
Total
$ 55,466
10,518
$ 65,984
$ 40,969
25,015
$ 65,984
$ 48,515
16,931
538
$ 65,984
$ 49,053
6,267
5,479
3,796
1,389
$ 65,984
2021
Aeronautics
Net sales
Products $ 22,631
Services 4,117
Europe 3,973
Asia Pacific 3,644
Middle East 1,351
Other 435
MFC RMS
$ 10,269 $ 13,483
1,424 3,306
$ 11,693 $ 16,789
$ 8,079 $ 11,125
3,614 5,664
$ 11,693 $ 16,789
$ 8,341 $ 11,736
3,346 4,719
6 334
$ 11,693 $ 16,789
$ 8,347 $ 12,070
910 909
292 2,178
2,066 827
78 805
$ 11,693 $ 16,789
Space
$ 10,052
1,762
$ 11,814
$ 2,671
9,143
$ 11,814
$ 10,811
971
32
$ 11,814
$ 10,843
968
(6)
9
—
$ 11,814
Total
$ 56,435
10,609
$ 67,044
$ 41,609
25,435
$ 67,044
$ 48,150
18,439
455
$ 67,044
$ 48,605
6,760
6,108
4,253
1,318
$ 67,044
2020
Aeronautics
Net sales
Products $ 22,327
Services 3,939
Europe 3,283
Asia Pacific 3,162
Middle East 1,344
Other 223
MFC RMS
$ 9,804 $ 12,748
1,453 3,247
$ 11,257 $ 15,995
$ 7,587 $ 10,795
3,670 5,200
$ 11,257 $ 15,995
$ 8,404 $ 11,596
2,842 3,986
11 413
$ 11,257 $ 15,995
$ 8,415 $ 12,009
767 806
280 1,666
1,749 847
46 667
$ 11,257 $ 15,995
Space
$ 10,049
1,831
$ 11,880
$ 2,247
9,633
$ 11,880
$ 10,293
1,546
41
$ 11,880
$ 10,334
1,478
68
—
—
$ 11,880
Total
$ 54,928
10,470
$ 65,398
$ 39,106
26,292
$ 65,398
$ 48,468
16,386
544
$ 65,398
$ 49,012
6,334
5,176
3,940
936
$ 65,398
Capital Expenditures, PP&E Depreciation and Software Amortiza
2022
Capital expenditures
Aeronautics $ 461
Rotary and Mission Systems 266
Space 391
Total business segment capital 1,371
Corporate activities 299
Total capital expenditures $ 1,670
PP&E depreciation and software
Aeronautics $ 383
Space 201
Total business segment depreci 989
Corporate activities 167
Total depreciation and amortiza $ 1,156
Amortization of purchased inta
Aeronautics $ 1
Space 12
Total amortization of purchased $ 248
2021 2020
$ 477 $ 534
304 391
279 311
305 403
1,365 1,639
157 127
$ 1,522 $ 1,766
$ 348 $ 348
153 136
250 244
205 182
956 910
123 109
$ 1,079 $ 1,019
$ 1 $—
2 2
232 232
50 37
$ 285 $ 271
Assets
2022
Assets
Space 6,351
Total business segment assets 42,182
Corporate assets (a) 10,698
Total assets $ 52,880
2021
$ 10,756
5,243
17,664
6,199
39,862
11,011
$ 50,873
Note 4 Receivables, net, Contract Assets and Contract Liabiliti
2022
Receivables, net $ 2,505
Contract assets 12,318
Contract liabilities 8,488
2021
$ 1,963
10,579
8,107
Note 5 Inventories
2022
Materials, spares and supplies $ 599
Work-in-process 2,297
Finished goods 192
Total inventories $ 3,088
2021
$ 624
2,163
194
$ 2,981
Note 6 Property, Plant and Equipment, net
2022
Land $ 147
Buildings 8,555
Machinery and equipment 9,400
Construction in progress 2,036
Total property, plant and equi 20,138
Less: accumulated depreciation (12,163)
Total property, plant and equip $ 7,975
2021
$ 144
8,003
9,053
1,900
19,100
(11,503)
$ 7,597
Note 7 Goodwill and Acquired Intangibles
Aeronautics
Balance at December 31, 2020 $ 187
Acquisitions —
Other —
Balance at December 31, 2021 187
Acquisitions —
Other 9
Balance at December 31, 2022 $ 196
MFC RMS
$ 2,091 $ 6,768
— —
(1) (9)
2,090 6,759
— 3
(7) (36)
$ 2,083 $ 6,726
Space
$ 1,760
17
—
1,777
—
(2)
$ 1,775
Total
$ 10,806
17
(10)
10,813
3
(36)
$ 10,780
2022
Gross
Carrying
Estimated Useful Lives Amount
Finite-Lived:
Customer programs 9 - 20 $ 3,186
Customer relationships 4 - 10 94
Other 3 - 10 72
Total finite-lived intangibles 3,352
Indefinite-Lived:
Trademark 887
Total acquired intangibles $ 4,239
2022
Gross
Carrying Accumulated
Amount Amortization
$ 3,186 ($1,664)
94 (78)
72 (38)
3,352 (1,780)
887 —
$ 4,239 ($1,780)
Net
Carrying
Amount
$ 1,522
16
34
1,572
887
$ 2,459
2021
Gross
Carrying Accumulated
Amount Amortization
$ 3,184 ($1,431)
120 (96)
76 (34)
3,380 (1,561)
887 —
$ 4,267 ($1,561)
Net
Accumulated Carrying
Amortization Amount
($1,431) $ 1,753
(96) 24
(34) 42
(1,561) 1,819
— 887
($1,561) $ 2,706
Note 8 Leases
Total 2023
Operating leases $ 1,342 $ 327
Less: imputed interest 125
Total $ 1,217
2023 2024
$ 327 $ 226
2025 2026
$ 178 $ 131
2027 Thereafter
$ 101 $ 379
Thereafter
$ 379
Income Tax Provisions
2022
Federal income tax expense (ben
Current $ 1,618
Deferred (776)
Total federal income tax expen 842
Foreign income tax expense (ben
Current 87
Deferred 19
Total foreign income tax expen 106
Total federal and foreign incom $ 948
2021 2020
$ 1,325 $ 1,292
(194) 21
1,131 1,313
93 50
11 (16)
104 34
$ 1,235 $ 1,347
2022
Amount
Income tax expense at the U.S. f $ 1,403
Research and development tax (178)
Foreign derived intangible inc (176)
Tax deductible dividends (67)
Excess tax benefits for stock- (42)
Other, net 8
Income tax expense $ 948
2021
Rate Amount
21.0% $ 1,585
(2.70) (118)
(2.60) (170)
(1.00) (65)
(0.60) (28)
0.10 31
14.2% $ 1,235
Rate
21.0%
(1.60)
(2.30)
(0.90)
(0.40)
0.60
16.4%
2020
Amount Rate
$ 1,729 21.0%
(97) (1.20)
(170) (2.10)
(64) (0.80)
(52) (0.60)
1 0.10
$ 1,347 16.4%
Uncertain Tax Positions
2022
Balance at January 1 $ 69
Additions based on tax positions 1,572
Additions for tax positions of pr 5
Reductions for tax positions of (2)
Settlements with tax authoritie (23)
Other, net 1
Balance at December 31 $ 1,622
2021 2020
$ 50 $ 56
23 14
30 1
(19) (20)
(14) —
(1) (1)
$ 69 $ 50
Deferred Income Taxes
2022
Deferred tax assets related to:
Pensions $ 1,340
Accrued compensation and bene 718
Contract accounting methods 510
Research and development exp 2,268
Foreign company operating loss 20
Other (a) 471
Valuation allowance (31)
Deferred tax assets, net 5,296
Deferred tax liabilities related t
Goodwill and intangible assets 449
Property, plant and equipment 503
Exchanged debt securities and o 605
Deferred tax liabilities 1,557
Net deferred tax assets $ 3,739
2021
$ 1,985
957
470
—
40
473
(15)
3,910
401
518
709
1,628
$ 2,282
Note 10 Debt
2022
Notes
3.10% due 2023 $—
2.90% due 2025 —
4.95% due 2025 500
3.55% due 2026 1,000
5.10% due 2027 750
1.85% due 2030 400
3.90% due 2032 800
5.25% due 2033 1,000
3.60% due 2035 500
4.50% and 6.15% due 2036 1,054
4.07% due 2042 1,336
3.80% due 2045 1,000
4.70% due 2046 1,326
2.80% due 2050 750
4.09% due 2052 1,578
4.15% due 2053 850
5.70% due 2054 1,000
4.30% due 2062 650
5.90% due 2063 750
Other notes with rates from 4. 1,598
Total debt 16,842
Less: unamortized discounts and (1,295)
Total debt, net 15,547
Less: current portion (118)
Long-term debt, net $ 15,429
2021
$ 500
750
—
2,000
—
400
—
—
500
1,054
1,336
1,000
1,326
750
1,578
—
—
—
—
1,605
12,799
(1,123)
11,676
(6)
$ 11,670
FAS (Expense) Income
Qualified Defined
Benefit Pension Plans
2022
Operating:
Service cost ($87)
Non-operating:
Interest cost (1,289)
Expected return on plan assets 1,854
Recognized net actuarial (losses (425)
Amortization of prior service cre 359
Settlement charge (1,470)
Non-service FAS (expense) inc (971)
Total FAS (expense) income ($1,058)
2021 2020
($106) ($101)
(1,220) (1,538)
2,146 2,264
(902) (849)
349 342
(1,665) —
(1,292) 219
($1,398) $ 118
Retiree Medical and
Life Insurance Plans
2022
($9)
(49)
136
46
(27)
—
106
$ 97
2021 2020
($13) ($13)
(53) (70)
141 127
— 4
(37) (39)
— —
51 22
$ 38 $ 9
2020
($13)
(70)
127
4
(39)
—
22
$ 9
Funded Status
Qualified Defined
2022
Change in benefit obligation
Beginning balance (a) $ 43,447
Service cost 87
Interest cost 1,289
Actuarial (gains) losses (b) (10,270)
Settlements (c) (4,309)
Plan amendments 186
Benefits paid (1,732)
Medicare Part D subsidy —
Participants’ contributions —
Ending balance (a) $ 28,698
Change in plan assets
Beginning balance at fair value $ 35,192
Actual return on plan assets (d (5,923)
Settlements (c) (4,309)
Benefits paid (1,732)
Company contributions —
Medicare Part D subsidy —
Participants’ contributions —
Ending balance at fair value $ 23,228
(Unfunded) funded status of th ($5,470)
2021
$ 51,352
106
1,220
(2,045)
(4,885)
2
(2,303)
—
—
$ 43,447
$ 38,481
3,899
(4,885)
(2,303)
—
—
—
$ 35,192
($8,255)
Retiree Medical and
2022 2021
$ 1,839 $ 2,271
9 13
49 53
(396) (352)
— —
1 —
(207) (217)
3 4
61 67
$ 1,359 $ 1,839
$ 2,169 $ 2,085
(381) 224
— —
(207) (217)
11 6
3 4
61 67
$ 1,656 $ 2,169
$ 297 $ 330
Qualified Defined
2022
Other noncurrent assets $ 2
Accrued pension liabilities (5,472)
Net (unfunded) funded status of ($5,470)

2021
$ 64
(8,319)
($8,255)
Retiree Medical and
2022 2021
$ 297 $ 330
— —
$ 297 $ 330
Qualified Defined
2022
Accumulated other comprehensiv
Net actuarial (losses) ($10,287)
Prior service credit (cost) 339
Total ($9,948)
Estimated tax 2,117
Net amount recognized in accum ($7,831)
2021
($14,675)
884
($13,791)
2,947
($10,844)
Retiree Medical and
2022 2021
$ 387 $ 554
(10) (36)
$ 377 $ 518
(79) (110)
$ 298 $ 408
Incurred but Not Yet
Recognized in
FAS Expense
2022
Actuarial gains and (losses)
Qualified defined benefit pensi $ 1,952
Retiree medical and life insuran (95)
Other plans 165
2,022
Net prior service credit and (cos
Qualified defined benefit pensi (146)
Retiree medical and life insuran (1)
Other plans (2)
(149)
Total $ 1,873
2021 2020
$ 2,987 ($1,005)
342 43
76 (104)
3,405 (1,066)
(1) (7)
— 6
— —
(1) (1)
$ 3,404 ($1,067)
Recognition of
Previously
Deferred Amounts
2022
($1,490)
36
(39)
(1,493)
283
(22)
7
268
($1,225)
2021 2020
($2,019) ($668)
— 3
(24) (24)
(2,043) (689)
274 269
(29) (30)
11 10
256 249
($1,787) ($440)
2020
($668)
3
(24)
(689)
269
(30)
10
249
($440)
Assumptions Used to Determine Benefit Obligations and FAS (
Qualified Defined Benefit
Pension Plans
2022
Weighted average discount rate 5.250%
Expected long-term rate of retur 6.50%
Health care trend rate assumed
Ultimate health care trend rate
Year ultimate health care trend
2021 2020
2.875% 2.500%
6.50% 7.00%
Retiree Medical and
2022
5.250%
6.50%
7.25%
4.50%
2,034
2021 2020
2.750% 2.375%
6.50% 7.00%
7.50% 7.75%
4.50% 4.50%
2,034 2,0
2020
2.375%
7.00%
7.75%
4.50%
2,034
Plan Assets
Asset Allocation
Asset Class Ranges
Cash and cash equivalents 0-20%
Global Equity 15-65%
Fixed income 10-60%
Alternative investments:
Private equity funds 5-25%
Real estate funds 5-15%
Hedge funds 0-20%
Commodities 0-10%
December 31, 2022
(in millions) Total Level 1
Investments measured at fair v
Cash and cash equivalents (a) $ 1,952 $ 1,952
Equity (a) :
U.S. equity securities 3,162 3,060
International equity securities 2,298 2,245
Commingled equity funds 459 183
Fixed income (a) :
Corporate debt securities 4,491 —
U.S. Government securities 2,219 —
U.S. Government-sponsored ente 572 —
Interest rate swaps, net (1,165) —
Other fixed income investments 1,980 81
Total $ 15,968 $ 7,521
Investments measured at NAV
Commingled equity funds —
Other fixed income investment 730
Private equity funds 4,703
Real estate funds 3,383
Hedge funds 689
Total investments measured at 9,505
Loan, net (c) (497)
(Payables) Receivables, net (92)
Total $ 24,884
Level 1 Level 2
$ 1,952 $—
3,060 6
2,245 17
183 276
— 4,272
— 2,219
— 572
— (1,165)
81 680
$ 7,521 $ 6,877
Level 3
$—
96
36
—
219
—
—
—
1,219
$ 1,570
December 31, 2021
Total Level 1
$ 991 $ 991
6,479 6,444
4,882 4,880
869 36
6,397 —
2,864 —
228 —
636 —
4,100 49
$ 27,446 $ 12,400
130
701
5,386
3,059
556
9,832
—
83
$ 37,361
Level 2 Level 3
$— $—
5 30
— 2
833 —
6,295 102
2,864 —
228 —
636 —
2,435 1,616
$ 13,296 $ 1,750
Contributions and Expected Benefit Payments
2023
Qualified defined benefit pensi $ 1,720
Retiree medical and life insuran 140
2024 2025
$ 1,810 $ 1,890
130 130
2026
$ 1,950
120
2027 2028 – 2032
$ 2,000 $ 10,150
120 530
Accumulated Other Comprehensive Loss
Postretirement Benefit Plans (a)

Balance at December 31, 2019 ($15,528)
Other comprehensive (loss) inco (1,067)
Amounts reclassified from AOC
Recognition of net actuarial los 689
Amortization of net prior servic (249)
Other —
Total reclassified from AOCL 440
Total other comprehensive (los (627)
Balance at December 31, 2020 (16,155)

Pension settlement charge (b) 1,310
Other —
Total reclassified from AOCL 1,787
Total other comprehensive inco 5,191
Balance at December 31, 2021 (10,964)
Pension settlement charge (b) 1,156
Other —
Total reclassified from AOCL 1,225
Total other comprehensive inco 3,098
Balance at December 31, 2022 ($7,866)
Other, net AOCL
($26) ($15,554)
56 (1,011)
— 689
— (249)
4 4
4 444
60 (567)
34 (16,121)
(85) 3,319
1,310
— 733
— (256)
9 9
9 1,796
(76) 5,115
(42) (11,006)
(159) 1,714
— 1,156
— 337
— (268)
44 44
44 1,269
(115) 2,983
($157) ($8,023)
Restricted Stock Units
Number
of RSUs
(In thousands)
Nonvested at December 31, 20 810

Granted 562
Vested (461)
Forfeited (34)
Nonvested at December 31, 20 877
Weighted Average
Grant-Date Fair
Value Per Share
$ 345.37
388.82
347.37
371.01
$ 371.17
Note 15 Fair Value Measurements
December 31, 2022

Total
Assets
Mutual funds $ 897
U.S. Government securities 118
Other securities 660
Derivatives 18
Liabilities
Derivatives 196
Assets measured at NAV
Other commingled funds —
Level 1 Level 2
$ 897 $—
— 118
333 264
— 18
— 196
Level 3
$—
—
63
—
—
December 31, 2021
Total Level 1
$ 1,434 $ 1,434
121 —
684 492
15 —
60 —
20
Level 2 Level 2 Level 3
$— $—
121 —
192 —
15 —
60 —
Summary Compensation
Plan category Number of securities to be issued upon exercise of outstanding options, war
Equity compensation plans appro 2,297,380
Equity compensation plans not approved by security holders (2) 545,753
Total 2,843,133
e of outstanding options,Weighted-average
warrants and rights
exercise
(a) priceNumber
of outstanding
of securities
options,
remaining
warrants
available
and rights
for (b)
future issuance under equity com
$— 6,761,032
— 2,486,789
$— 9,247,821
re issuance under equity compensation plans (excluding securities reflected in column (a)) (c)
PART IV
Page
Consolidated Statements of Earnings – Years ended December 31,
63 2022, 2021 and 2020
Consolidated Statements of Comprehensive Income – Years ended
64 December 31, 2022, 2021 and 2020
Consolidated Balance Sheets – At December 31, 2022 and 2021
65
Consolidated Statements of Cash Flows – Years ended December 31,
66 2022, 2021 and 2020
Consolidated Statements of Equity – Years ended December 31,
67 2022, 2021 and 2020
Notes to Consolidated Financia 68
10.17 Form of Performance Stock Unit
10.18 Form of Long Term Incentive Pe
10.19 Lockheed Martin Corporation 202
10.20 Form of 2020 Annual Restricted
10.29 CFO New Hire Restricted Stock
10.30 CFO Transition Restricted Stoc
10.31 Amendment to Outstanding Long-
10.34 Amendment to Lockheed Martin C

Signatures
/s/ James D. Taiclet
James D. Taiclet
/s/ Jesus Malave
Jesus Malave
/s/ H. Edward Paul III
H. Edward Paul III
*
Daniel F. Akerson
*
David B. Burritt
*
Bruce A. Carlson
*
John M. Donovan
*
Joseph F. Dunford, Jr.
*
James O. Ellis, Jr.
*
Thomas J. Falk
*
Ilene S. Gordon
*
Vicki A. Hollub
*
Jeh C. Johnson
*
Debra L. Reed-Klages
*
Patricia E. Yarrington
Titles Date
Chairman, President and Chief Ex January 26, 2023
Chief Financial Officer (Principal January 26, 2023
Vice President, Controller, and Chief Accounting Officer (Principal

January
Accounting
26, 2023
Officer)
Director January 26, 2023

6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
6, 2023
Subsidiaries of Lockheed Martin Corporation
Name of Subsidiary Place of Formation

Astrolink International LLC Delaware
Helicopter Support, Inc. Connecticut
Lockheed Martin Australia Pty Australia
Lockheed Martin Canada Inc. Canada
Lockheed Martin Global, Inc. Delaware
Lockheed Martin Investments In Delaware
Lockheed Martin Overseas Corp Delaware
Lockheed Martin UK Ampthill L United Kingdom
Lockheed Martin UK Limited United Kingdom
Polskie Zaklady Lotnicze Sp. Zo. Poland
Sikorsky Aircraft Corporation Delaware
Sikorsky International Operation Delaware
Zeta Associates, Inc. Virginia
LOCKHEED MARTIN CORPORATION
/s/ Daniel F. Akerson

DANIEL F. AKERSON Director
/s/ David B. Burritt
DAVID B. BURRITT
Director
/s/ Bruce A. Carlson
BRUCE A. CARLSON
Director
/s/ John M. Donovan
JOHN M. DONOVAN
Director
/s/ Joseph F. Dunford, Jr.
JOSEPH F. DUNFORD, JR.

Director
/s/ James O. Ellis, Jr.
JAMES O. ELLIS, JR.

Director
/s/ Thomas J. Falk
THOMAS J. FALK
Director
/s/ Ilene S. Gordon
ILENE S. GORDON
Director
/s/ Vicki A. Hollub
VICKI A. HOLLUB
Director
/s/ Jeh C. Johnson
JEH C. JOHNSON
Director
/s/ Debra L. Reed-Klages
DEBRA L. REED-KLAGES
Director
/s/ Patricia E. Yarrington
PATRICIA E. YARRINGTON
Director
CERTIFICATION OF JAMES D. TAICLET PURSUANT TO

James D. Taiclet
Chief Executive Officer
Date: January 26, 2023
CERTIFICATION OF JESUS MALAVE PURSUANT TO
/s/ Jesus Malave

Jesus Malave
Chief Financial Officer
Date: January 26, 2023
CERTIFICATION OF JAMES D. TAICLET AND JESUS MALAVE PURS

James D. Taiclet
Chief Executive Officer
/s/ Jesus Malave

Jesus Malave
Chief Financial Officer

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September 26, 2022 – October 30 7,225,959

(In millions, except per share da 2022

Severance and other charges (a (100)

Service and non-service cost rec

Years Ended December 31,

Earnings (loss) per common sha

Years Ended December 31,

Years Ended December 31,

Net decrease in noncontrolling i— —

Net decrease in noncontrolling i— —

Balance at December 31, 2022 $ 254 $ 92

Severance and other charges (a (100)

Service and non-service cost rec

Net (unfunded) funded status of ($5,470)

Postretirement Benefit Plans (a)

Balance at December 31, 2020 (16,155)

Nonvested at December 31, 20 810

December 31, 2022

10.18 Form of Long Term Incentive Pe

10.19 Lockheed Martin Corporation 202

10.20 Form of 2020 Annual Restricted

10.21 Form of Performance Stock Unit

10.22 Form of Long Term Incentive Pe

10.23 Form of 2021 Annual Restricted

10.24 Form of Performance Stock Unit

10.25 Form of Long Term Incentive Pe

10.26 Form of 2022 Annual Restricted

10.27 Form of Performance Stock Unit

10.28 Form of Long Term Incentive Pe

10.29 CFO New Hire Restricted Stock

10.30 CFO Transition Restricted Stoc

10.31 Amendment to Outstanding Long-

10.32 Amendment to Outstanding Long-

10.33 Amendment to Outstanding Long-

10.34 Amendment to Lockheed Martin C

Chief Financial Officer (Principal January 26, 2023

Vice President, Controller, and Chief Accounting Officer (Principal

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Director January 26, 2023

Name of Subsidiary Place of Formation

/s/ Daniel F. Akerson

/s/ David B. Burritt

/s/ Bruce A. Carlson

/s/ John M. Donovan

/s/ Joseph F. Dunford, Jr.

JOSEPH F. DUNFORD, JR.

/s/ James O. Ellis, Jr.

JAMES O. ELLIS, JR.

/s/ Thomas J. Falk

/s/ Ilene S. Gordon

/s/ Vicki A. Hollub

/s/ Jeh C. Johnson