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Quarterly report [Sections 13 or 15(d)]

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Delaware 13-1673581
State or other jurisdiction of incorporation or organization I.R.S. employer identification no.
2941 Fairview Park Drive, Suite 100 Falls Church, Virginia 22042-4513
Address of principal executive offices Zip code
PART I - FINANCIAL INFORMATION PAGE
Item 1 - Unaudited Consolidated Financial Statements
Consolidated Statements of Earnings 3
Consolidated Statements of Comprehensive Income 4
Consolidated Balance Sheets 5
Consolidated Statements of Cash Flows 6
Consolidated Statements of Shareholders' Equity 7
Notes to Unaudited Consolidated Financial Statements 8

Item 2 -
Management’s Discussion and Analysis of Financial Condition and Results of Operations 25
Item 3 - Quantitative and Qualitative Disclosures About Market Risk 36
Item 4 - Controls and Procedures 36
FORWARD-LOOKING STATEMENTS 37
PART II - OTHER INFORMATION 37
Item 1 - Legal Proceedings 37
Item 1A - Risk Factors 38
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds 38
Item 6 - Exhibits 39
SIGNATURES 40
Three Months Ended
(Dollars in millions, except per-share amounts) April 3, 2016 April 5, 2015
Revenue:
Products $ 4,864
$ 4,932
Services 2,860
2,852
7,724
7,784
Operating costs and expenses:
Products 3,784
3,819
Services 2,427
2,435
General and administrative (G&A) 460
503
6,671
6,757
Operating earnings 1,053
1,027
Interest, net (22 ) (21 )
Other, net 10
3
Earnings from continuing operations before income tax 1,041
1,009
Provision for income tax, net 311
293
Earnings from continuing operations 730
716
Discontinued operations (13 )
Net earnings $ 717
$ 716
Earnings per share
Basic:
Continuing operations $ 2.37
$ 2.18
Discontinued operations (0.04 )
Net earnings $ 2.33
$ 2.18
Diluted:
Continuing operations $ 2.34
$ 2.14
Discontinued operations (0.04 )
Net earnings $ 2.30
$ 2.14
Three Months Ended
(Dollars in millions) April 3, 2016 April 5, 2015
Net earnings $ 717
$ 716
Gains (losses) on cash flow hedges 182
(383 )
Unrealized (losses) gains on securities (9 ) 2
Foreign currency translation adjustments 181
(104 )
Change in retirement plans' funded status 60
97
Other comprehensive income (loss), pretax 414
(388 )
Provision (benefit) for income tax, net 69
(104 )
Other comprehensive income (loss), net of tax 345
(284 )
Comprehensive income $ 1,062
$ 432
(Unaudited)
(Dollars in millions) April 3, 2016 December 31, 2015
ASSETS
Current assets:
Cash and equivalents $ 1,907
$ 2,785
Accounts receivable 3,654
3,446
Contracts in process 4,705
4,357
Inventories 3,504
3,366
Other current assets 418
617
Total current assets 14,188
14,571
Noncurrent assets:
Property, plant and equipment, net 3,477
3,466
Intangible assets, net 759
763
Goodwill 11,595
11,443
Other assets 1,683
1,754
Total noncurrent assets 17,514
17,426
Total assets $ 31,702
$ 31,997
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term debt $ 501
$ 501
Accounts payable 2,150
1,964
Customer advances and deposits 5,560
5,674
Other current liabilities 4,212
4,306
Total current liabilities 12,423
12,445
Noncurrent liabilities:
Long-term debt 2,899
2,898
Other liabilities 5,798
5,916
Commitments and contingencies (See Note L)



Total noncurrent liabilities 8,697
8,814
Shareholders' equity:
Common stock 482
482
Surplus 2,740
2,730
Retained earnings 23,687
23,204
Treasury stock (13,386 ) (12,392 )
Accumulated other comprehensive loss (2,941 ) (3,286 )
Total shareholders' equity 10,582
10,738
Total liabilities and shareholders' equity $ 31,702
$ 31,997
Three Months Ended
(Dollars in millions) April 3, 2016 April 5, 2015
Cash flows from operating activities - continuing operations:
Net earnings $ 717
$ 716
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of property, plant and equipment 90
94
Amortization of intangible assets 27
30
Equity-based compensation expense 27
40
Excess tax benefit from equity-based compensation (15 ) (30 )
Deferred income tax provision 20
(8 )
Discontinued operations 13

(Increase) decrease in assets, net of effects of business acquisitions:
Accounts receivable (195 ) 388
Contracts in process (337 ) 152
Inventories (133 ) (183 )
Increase (decrease) in liabilities, net of effects of business acquisitions:
Accounts payable 179
210
Customer advances and deposits (209 ) (871 )
Income taxes payable 268
251
Other current liabilities (70 ) (38 )
Other, net 57
(6 )
Net cash provided by operating activities 439
745
Cash flows from investing activities:
Capital expenditures (65 ) (98 )
Maturities of held-to-maturity securities
500
Other, net (53 ) 94
Net cash (used) provided by investing activities (118 ) 496
Cash flows from financing activities:
Purchases of common stock (1,026 ) (620 )
Dividends paid (215 ) (206 )
Proceeds from stock option exercises 33
87
Repayment of fixed-rate notes
(500 )
Other, net 15
30
Net cash used by financing activities (1,193 ) (1,209 )
Net cash used by discontinued operations (6 ) (8 )
Net (decrease) increase in cash and equivalents (878 ) 24
Cash and equivalents at beginning of period 2,785
4,388
Cash and equivalents at end of period $ 1,907
$ 4,412
Supplemental cash flow information:
Cash payments for:
Income taxes $ 21
$ 53
Interest $ 16
$ 19
Common Stock Retained Treasury Accumulated Other Comprehensive Total Shareholders’
(Dollars in millions) Par Surplus Earnings Stock Loss Equity
December 31, 2015 $ 482
$ 2,730
$ 23,204
$ (12,392 ) $ (3,286 ) $ 10,738
Net earnings

717


717
Cash dividends declared

(234 )

(234 )
Equity-based awards
10

45

55
Shares purchased


(1,039 )
(1,039 )
Other comprehensive income



345
345
April 3, 2016 $ 482
$ 2,740
$ 23,687
$ (13,386 ) $ (2,941 ) $ 10,582


December 31, 2014 $ 482
$ 2,548
$ 21,127
$ (9,396 ) $ (2,932 ) $ 11,829
Net earnings

716


716
Cash dividends declared

(228 )

(228 )
Equity-based awards
40

81

121
Shares purchased


(634 )
(634 )
Other comprehensive loss



(284 ) (284 )
April 5, 2015 $ 482
$ 2,588
$ 21,615
$ (9,949 ) $ (3,216 ) $ 11,520
ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires the recognition of lease rights and obligations as assets and liabilities on the balance sheet. Previously, lessees were not required to recognize on the balance sheet assets and liabilities arising from operating leases. The ASU also requires disclosure of key information about leasing arrangements. ASU 2016-02 is effective on January 1, 2019, using the modified retrospective method of adoption, with early adoption permitted. We have not yet determined the effect of the ASU on our Consolidated Financial Statements nor have we selected a transition date.
ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 impacts several aspects of the accounting for share-based payment transactions, including classification of certain items on the Consolidated Statement of Cash Flows and accounting for income taxes. Specifically, the ASU requires that excess tax benefits and tax deficiencies (the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes) be recognized as income tax expense or benefit in the Consolidated Statement of Earnings, introducing a new element of volatility to the provision for income taxes. ASU 2016-09 is effective on January 1, 2017, with early adoption permitted. The transition method varies for each of the areas in the ASU. We have not yet determined the effect of the ASU on our Consolidated Financial Statements nor have we selected a transition date.
Aerospace Combat Systems Information Systems and Technology Marine Systems Total Goodwill
December 31, 2015 (a) $ 2,542
$ 2,591
$ 6,021
$ 289
$ 11,443
Acquisitions (b) 17



17
Other (c) 68
57
10

135
April 3, 2016 $ 2,627
$ 2,648
$ 6,031
$ 289
$ 11,595
Gross Carrying Amount (a) Accumulated Amortization Net Carrying Amount Gross Carrying Amount (a) Accumulated Amortization Net Carrying Amount
April 3, 2016 December 31, 2015
Contract and program intangible assets (b) $ 1,634
$ (1,236 ) $ 398
$ 1,626
$ (1,214 ) $ 412
Trade names and trademarks 472
(134 ) 338
455
(127 ) 328
Technology and software 120
(97 ) 23
119
(96 ) 23
Other intangible assets 154
(154 )
154
(154 )
Total intangible assets $ 2,380
$ (1,621 ) $ 759
$ 2,354
$ (1,591 ) $ 763
Three Months Ended April 3, 2016 April 5, 2015
Basic weighted average shares outstanding 307,928
329,154
Dilutive effect of stock options and restricted stock/RSUs* 4,418
5,528
Diluted weighted average shares outstanding 312,346
334,682
Carrying Value Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) (b)
Financial Assets (Liabilities) (a) April 3, 2016
Available-for-sale securities $ 186
$ 186
$ 93
$ 93
Derivatives (485 ) (485 )
(485 )
Long-term debt, including current portion (3,426 ) (3,475 )
(3,475 )
December 31, 2015
Available-for-sale securities 186
186
124
62
Derivatives (673 ) (673 )
(673 )
Long-term debt, including current portion (3,425 ) (3,381 )
(3,381 )
April 3, 2016 December 31, 2015
Current deferred tax asset $ 11
$ 3
Current deferred tax liability (819 ) (829 )
Noncurrent deferred tax asset 1,177
1,272
Noncurrent deferred tax liability (84 ) (75 )
Net deferred tax asset $ 285
$ 371
April 3, 2016 December 31, 2015
Contract costs and estimated profits $ 24,969
$ 20,742
Other contract costs 907
965
25,876
21,707
Advances and progress payments (21,171 ) (17,350 )
Total contracts in process $ 4,705
$ 4,357
April 3, 2016 December 31, 2015
Work in process $ 2,055
$ 1,889
Raw materials 1,346
1,376
Finished goods 32
28
Pre-owned aircraft 71
73
Total inventories $ 3,504
$ 3,366
April 3, 2016 December 31, 2015
Fixed-rate notes due: Interest rate
July 2016 2.250% 500
500
November 2017 1.000% 900
900
July 2021 3.875% 500
500
November 2022 2.250% 1,000
1,000
November 2042 3.600% 500
500
Other Various 26
25
Total debt - principal 3,426
3,425
Less unamortized debt issuance costs and discounts 26
26
Total debt 3,400
3,399
Less current portion 501
501
Long-term debt $ 2,899
$ 2,898
April 3, 2016 December 31, 2015
Deferred income taxes $ 819
$ 829
Salaries and wages 607
648
Fair value of cash flow hedges 561
780
Workers' compensation 353
369
Retirement benefits 301
304
Other (a) 1,571
1,376
Total other current liabilities $ 4,212
$ 4,306
Retirement benefits $ 4,199
$ 4,251
Customer deposits on commercial contracts 415
506
Deferred income taxes 84
75
Other (b) 1,100
1,084
Total other liabilities $ 5,798
$ 5,916
Losses on Cash Flow Hedges Unrealized Gains on Securities Foreign Currency Translation Adjustments Changes in Retirement Plans’ Funded Status AOCL
December 31, 2015 $ (487 ) $ 20
$ 178
$ (2,997 ) $ (3,286 )
Other comprehensive income, pretax 182
(9 ) 181
60
414
Provision for income tax, net 45
(3 ) 5
22
69
Other comprehensive income, net of tax 137
(6 ) 176
38
345
April 3, 2016 $ (350 ) $ 14
$ 354
$ (2,959 ) $ (2,941 )
December 31, 2014 $ (173 ) $ 22
$ 541
$ (3,322 ) $ (2,932 )
Other comprehensive loss, pretax (383 ) 2
(104 ) 97
(388 )
Benefit for income tax, net (135 ) 2
(5 ) 34
(104 )
Other comprehensive loss, net of tax (248 )
(99 ) 63
(284 )
April 5, 2015 $ (421 ) $ 22
$ 442
$ (3,259 ) $ (3,216 )
Three Months Ended April 3, 2016 April 5, 2015
Beginning balance $ 465
$ 428
Warranty expense 27
31
Payments (22 ) (29 )
Adjustments (1 )
Ending balance $ 469
$ 430
Pension Benefits Other Post-retirement Benefits
Three Months Ended April 3, 2016 April 5, 2015 April 3, 2016 April 5, 2015
Service cost $ 44
$ 57
$ 3
$ 3
Interest cost 114
133
8
11
Expected return on plan assets (178 ) (174 ) (8 ) (8 )
Recognized net actuarial loss 84
110
(1 ) 2
Amortization of prior service credit (17 ) (17 ) (2 ) (1 )
Net periodic benefit cost $ 47
$ 109
$
$ 7
Revenue Operating Earnings
Three Months Ended April 3, 2016 April 5, 2015 April 3, 2016 April 5, 2015
Aerospace $ 1,987
$ 2,108
$ 411
$ 431
Combat Systems 1,273
1,363
217
204
Information Systems and Technology 2,333
2,370
248
217
Marine Systems 2,131
1,943
192
188
Corporate*

(15 ) (13 )
Total $ 7,724
$ 7,784
$ 1,053
$ 1,027
Three Months Ended April 3, 2016 Parent Guarantors on a Combined Basis Other Subsidiaries on a Combined Basis Consolidating Adjustments Total Consolidated
Revenue $
$ 6,816
$ 908
$
$ 7,724
Cost of sales 4
5,510
697

6,211
G&A 11
378
71

460
Operating earnings (15 ) 928
140

1,053
Interest, net (23 )
1

(22 )
Other, net 10



10
Earnings before income tax (28 ) 928
141

1,041
Provision for income tax, net (12 ) 297
26

311
Discontinued operations (13 )


(13 )
Equity in net earnings of subsidiaries 746


(746 )
Net earnings $ 717
$ 631
$ 115
$ (746 ) $ 717
Comprehensive income $ 1,062
$ 632
$ 429
$ (1,061 ) $ 1,062
Three Months Ended April 5, 2015
Revenue $
$ 6,768
$ 1,016
$
$ 7,784
Cost of sales 1
5,462
791

6,254
G&A 12
416
75

503
Operating earnings (13 ) 890
150

1,027
Interest, net (23 ) 1
1

(21 )
Other, net 1
2


3
Earnings before income tax (35 ) 893
151

1,009
Provision for income tax, net (25 ) 290
28

293
Equity in net earnings of subsidiaries 726


(726 )
Net earnings $ 716
$ 603
$ 123
$ (726 ) $ 716
Comprehensive income $ 432
$ 606
$ (224 ) $ (382 ) $ 432
April 3, 2016 Parent Guarantors on a Combined Basis Other Subsidiaries on a Combined Basis Consolidating Adjustments Total Consolidated
ASSETS
Current assets:
Cash and equivalents $ 986
$
$ 921
$
$ 1,907
Accounts receivable
1,251
2,403

3,654
Contracts in process 467
2,957
1,281

4,705
Inventories
Work in process
2,040
15

2,055
Raw materials
1,310
36

1,346
Finished goods
25
7

32
Pre-owned aircraft
71


71
Other current assets 9
200
209

418
Total current assets 1,462
7,854
4,872

14,188
Noncurrent assets:
Property, plant and equipment 191
6,402
1,156

7,749
Accumulated depreciation of PP&E (61 ) (3,494 ) (717 )
(4,272 )
Intangible assets
1,446
934

2,380
Accumulated amortization of intangible assets
(1,142 ) (479 )
(1,621 )
Goodwill
8,041
3,554

11,595
Other assets 1,271
240
172

1,683
Investment in subsidiaries 41,439


(41,439 )
Total noncurrent assets 42,840
11,493
4,620
(41,439 ) 17,514
Total assets $ 44,302
$ 19,347
$ 9,492
$ (41,439 ) $ 31,702
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 500
$ 1
$
$
$ 501
Customer advances and deposits
2,825
2,735

5,560
Other current liabilities 1,504
3,453
1,405

6,362
Total current liabilities 2,004
6,279
4,140

12,423
Noncurrent liabilities:
Long-term debt 2,874
25


2,899
Other liabilities 3,343
1,947
508

5,798
Total noncurrent liabilities 6,217
1,972
508

8,697
Intercompany 25,499
(24,188 ) (1,311 )

Shareholders' equity:
Common stock 482
6
2,354
(2,360 ) 482
Other shareholders' equity 10,100
35,278
3,801
(39,079 ) 10,100
Total shareholders' equity 10,582
35,284
6,155
(41,439 ) 10,582
Total liabilities and shareholders' equity $ 44,302
$ 19,347
$ 9,492
$ (41,439 ) $ 31,702
December 31, 2015 Parent Guarantors on a Combined Basis Other Subsidiaries on a Combined Basis Consolidating Adjustments Total Consolidated
ASSETS
Current assets:
Cash and equivalents $ 1,732
$
$ 1,053
$
$ 2,785
Accounts receivable
1,181
2,265

3,446
Contracts in process 514
2,795
1,048

4,357
Inventories
Work in process
1,882
7

1,889
Raw materials
1,344
32

1,376
Finished goods
23
5

28
Pre-owned aircraft
73


73
Other current assets 140
213
264

617
Total current assets 2,386
7,511
4,674

14,571
Noncurrent assets:
Property, plant and equipment 189
6,386
1,101

7,676
Accumulated depreciation of PP&E (59 ) (3,462 ) (689 )
(4,210 )
Intangible assets
1,445
909

2,354
Accumulated amortization of intangible assets
(1,122 ) (469 )
(1,591 )
Goodwill
8,040
3,403

11,443
Other assets 1,379
207
168

1,754
Investment in subsidiaries 40,062


(40,062 )
Total noncurrent assets 41,571
11,494
4,423
(40,062 ) 17,426
Total assets $ 43,957
$ 19,005
$ 9,097
$ (40,062 ) $ 31,997
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 500
$ 1
$
$
$ 501
Customer advances and deposits
3,038
2,636

5,674
Other current liabilities 1,331
3,309
1,630

6,270
Total current liabilities 1,831
6,348
4,266

12,445
Noncurrent liabilities:
Long-term debt 2,874
24


2,898
Other liabilities 3,417
2,021
478

5,916
Total noncurrent liabilities 6,291
2,045
478

8,814
Intercompany 25,097
(23,816 ) (1,281 )

Shareholders' equity:
Common stock 482
6
2,354
(2,360 ) 482
Other shareholders' equity 10,256
34,422
3,280
(37,702 ) 10,256
Total shareholders' equity 10,738
34,428
5,634
(40,062 ) 10,738
Total liabilities and shareholders' equity $ 43,957
$ 19,005
$ 9,097
$ (40,062 ) $ 31,997
Three Months Ended April 3, 2016 Parent Guarantors on a Combined Basis Other Subsidiaries on a Combined Basis Consolidating Adjustments Total Consolidated
Net cash provided by operating activities* $ 61
$ 314
$ 64
$
$ 439
Cash flows from investing activities:
Capital expenditures (1 ) (58 ) (6 )
(65 )
Other, net 6
(21 ) (38 )
(53 )
Net cash used by investing activities 5
(79 ) (44 )
(118 )
Cash flows from financing activities:
Purchases of common stock (1,026 )


(1,026 )
Dividends paid (215 )


(215 )
Proceeds from stock option exercises 33



33
Other, net 15



15
Net cash used by financing activities (1,193 )


(1,193 )
Net cash used by discontinued operations (6 )


(6 )
Cash sweep/funding by parent 387
(235 ) (152 )

Net decrease in cash and equivalents (746 )
(132 )
(878 )
Cash and equivalents at beginning of period 1,732

1,053

2,785
Cash and equivalents at end of period $ 986
$
$ 921
$
$ 1,907
Three Months Ended April 5, 2015
Net cash provided by operating activities* $ (101 ) $ 760
$ 86
$
$ 745
Cash flows from investing activities:
Maturities of held-to-maturity securities 500



500
Capital expenditures (2 ) (89 ) (7 )
(98 )
Other, net 1
93


94
Net cash provided by investing activities 499
4
(7 )
496
Cash flows from financing activities:
Purchases of common stock (620 )


(620 )
Repayment of fixed-rate notes (500 )


(500 )
Dividends paid (206 )


(206 )
Proceeds from stock option exercises 87



87
Other, net 30



30
Net cash used by financing activities (1,209 )


(1,209 )
Net cash used by discontinued operations (8 )


(8 )
Cash sweep/funding by parent 882
(764 ) (118 )

Net increase in cash and equivalents 63

(39 )
24
Cash and equivalents at beginning of period 2,536

1,852

4,388
Cash and equivalents at end of period $ 2,599
$
$ 1,813
$
$ 4,412
Three Months Ended April 3, 2016 April 5, 2015 Variance
Revenue $ 7,724
$ 7,784
$ (60 ) (0.8 )%
Operating costs and expenses 6,671
6,757
(86 ) (1.3 )%
Operating earnings 1,053
1,027
26
2.5 %
Operating margin 13.6 % 13.2 %
Three Months Ended April 3, 2016 April 5, 2015 Variance
Revenue $ 1,987
$ 2,108
$ (121 ) (5.7 )%
Operating earnings 411
431
(20 ) (4.6 )%
Operating margin 20.7 % 20.4 %
Gulfstream aircraft deliveries (in units):
Green 31 34 (3 ) (8.8 )%
Outfitted 27 32 (5 ) (15.6 )%
Aircraft manufacturing, outfitting and completions $ (120 )
Pre-owned aircraft (5 )
Aircraft services 4
Total decrease $ (121 )
Aircraft manufacturing, outfitting and completions $ (55 )
Pre-owned aircraft (2 )
Aircraft services 19
G&A/other expenses 18
Total decrease $ (20 )
Three Months Ended April 3, 2016 April 5, 2015 Variance
Revenue $ 1,273
$ 1,363
$ (90 ) (6.6 )%
Operating earnings 217
204
13
6.4 %
Operating margin 17.0 % 15.0 %
Three Months Ended April 3, 2016 April 5, 2015 Variance
Revenue $ 2,333
$ 2,370
$ (37 ) (1.6 )%
Operating earnings 248
217
31
14.3 %
Operating margin 10.6 % 9.2 %
Three Months Ended April 3, 2016 April 5, 2015 Variance
Revenue $ 2,131
$ 1,943
$ 188
9.7 %
Operating earnings 192
188
4
2.1 %
Operating margin 9.0 % 9.7 %
U.S. Navy ship construction $ 151
U.S. Navy ship engineering, repair and other services 55
Commercial ship construction (18 )
Total increase $ 188
Military vehicle products $ (142 )
Aircraft manufacturing, outfitting and completions (124 )
Ship construction 123
Other, net 75
Total decrease $ (68 )
IT services $ (119 )
Ship engineering, repair and other services 65
Other, net 62
Total increase $ 8
Funded Unfunded Total Backlog Estimated Potential Contract Value Total Estimated Contract Value
April 3, 2016
Aerospace $ 12,465
$ 147
$ 12,612
$ 2,368
$ 14,980
Combat Systems 18,260
565
18,825
4,959
23,784
Information Systems and Technology 7,442
1,991
9,433
15,146
24,579
Marine Systems 16,547
7,317
23,864
1,999
25,863
Total $ 54,714
$ 10,020
$ 64,734
$ 24,472
$ 89,206
December 31, 2015
Aerospace $ 13,292
$ 106
$ 13,398
$ 2,437
$ 15,835
Combat Systems 18,398
597
18,995
5,059
24,054
Information Systems and Technology 6,827
1,755
8,582
14,702
23,284
Marine Systems 13,266
11,879
25,145
2,263
27,408
Total $ 51,783
$ 14,337
$ 66,120
$ 24,461
$ 90,581
Three Months Ended April 3, 2016 April 5, 2015
Net cash provided by operating activities $ 439
$ 745
Capital expenditures (65 ) (98 )
Free cash flow from operations $ 374
$ 647
Cash flows as a percentage of earnings from continuing operations:
Net cash provided by operating activities 60 % 104 %
Free cash flow from operations 51 % 90 %
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Program (a) Maximum Number of Shares That May Yet Be Purchased Under the Program (a)
Pursuant to Share Buyback Program
1/1/16-1/31/16 1,786,311
$ 129.15
1,786,311
7,818,157
2/1/16-2/28/16 4,850,000
$ 133.91
4,850,000
2,968,157
2/29/16-4/3/16 1,200,000
$ 132.26
1,200,000
11,768,157
Shares Delivered or Withheld Pursuant to Restricted Stock Vesting (b)
1/1/16-1/31/16 188,477
$ 135.46
2/1/16-2/28/16
$
2/29/16-4/3/16
$
Total 8,024,788
$ 132.64
10.1* Form of Non-Statutory Stock Option Agreement pursuant to the General Dynamics Corporation 2012 Equity Compensation Plan (for grants beginning March 2, 2016, and including, as indicated therein, provisions for certain executive officers who are subject to the company’s Compensation Recoupment Policy)**
10.3* Form of Performance Restricted Stock Unit Award Agreement pursuant to the General Dynamics Corporation 2012 Equity Compensation Plan (for grants beginning March 2, 2016, and including, as indicated therein, provisions for certain executive officers who are subject to the company’s Compensation Recoupment Policy)**

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

General Dynamics: 2941 Fairview Park Drive - April 27, 2016