GENERAL DYNAMICS CORP
For the period ended Jun 30, 2024. Filed Jul 24, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 24, 2024
GD$354.06-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-24.
0000040533-24-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-24.
0000040533-24-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 121 previous paragraphs and 126 current paragraphs.
65 unchanged; 35 reworded; 26 added; 21 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 19 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
We expect the Aerospace segment’s 2024 revenue to be approximately $12.7 billion, with operating margin of approximately 14%.
Current report
We expect the Marine Systems segment’s 2024 revenue to be approximately $13.4-13.8 billion with operating margin of approximately 7.4%.
Current report
Overall, the Combat Systems segment’s operating margin increased 70 basis points in the second quarter and 10 basis points in the first six months of 2024.
Current report
We expect the Combat Systems segment’s 2024 revenue to be approximately $8.7 billion with operating margin of approximately 14.4%.
Current report
The Technologies segment’s revenue was up in the second quarter and first six months of 2024 due to higher volume across the portfolio, including the ramp-up of new programs. Overall, the Technologies segment’s operating margin increased 90 basis points in the second quarter and 40 basis points in the first six months of 2024 due to strong operating performance.
Current report
We expect the Technologies segment’s 2024 revenue to be approximately $13 billion with operating margin of approximately 9.5%.
Current report
Orders for new Gulfstream aircraft increased sequentially, yielding a segment book-to-bill ratio (orders divided by revenue) of 1-to-1 for the first six months of 2024, even as revenue grew by more than 30% year over year.
Current report
•$205 from the U.S. Navy for planning yard services for the Arleigh Burke-class (DDG-51) guided-missile destroyer program. The contract including options has a maximum potential value of $1.1 billion.
Current report
•$55 from the Navy to support non-nuclear maintenance on submarines based at the New England Naval Submarine Support Facility.
Current report
•$55 from the Navy for maintenance and modernization on the USS James E. Williams, a DDG-51 guided-missile destroyer.
Current report
•$35 for design and engineering services in support of U.S. and U.K. submarine technologies for the Navy.
Current report
•$35 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
Current report
•Two contracts from the Canadian government for the Logistics Vehicle Modernization (LVM) program to provide a new fleet of light and heavy armored vehicles and logistics support services for the Canadian army. These contracts including options have a maximum potential value of $1.9 billion. The scope of work is shared with an industry partner.
Current report
•$25 from the U.S. Army for systems technical support on the Stryker fleet. The contract has a maximum potential value of $535.
Current report
•$385 for various munitions and ordnance. These contracts including options have a maximum potential value of $460.
Current report
•$390 from the Army primarily to establish additional capacity for artillery propellant.
Current report
•$375 from the Army to upgrade Stryker vehicles to the double-V-hull A1 configuration.
Current report
•$325 from the Army for the third phase of the low-rate initial production (LRIP) of the M10 Booker Combat Vehicle.
Current report
•$120 from the Army to provide system and sustainment technical support services for Abrams main battle tanks.
Current report
•$205 from the North Carolina Department of Health and Human Services to operate its Medicaid Management Information System. The contract including options has a maximum potential value of $525.
Current report
•$50 from the Centers for Medicare and Medicaid Services (CMS) to support the Benefits Coordination & Recovery Center. The contract including options has a maximum potential value of $285.
Current report
•$55 to provide IT network operations and maintenance services to the Army. The contract including options has a maximum potential value of $200.
Current report
•$185 from CMS to provide cloud services and software tools.
Current report
•$30 to provide cybersecurity services to the U.S. Air Force. The contract including options has a maximum potential value of $185.
Current report
•$145 to provide ship modernization services for the Navy.
Current report
•$10 to integrate hardware and software solutions for Navy platforms. The contract including options has a maximum potential value of $110.
Removed paragraphs (21)
Previous report
With approximately 70% of our revenue from work for the U.S. government, government spending levels — particularly defense spending — can impact our financial performance. Since the beginning of the government’s fiscal year (FY) 2024, we had been operating under a series of continuing resolutions (CRs), which generally provide funding for federal agencies for all programs of record at the prior year’s appropriated levels. On March 23, 2024, the U.S. government enacted a defense appropriations bill for the government’s FY 2024 totaling $825 billion, representing an increase of more than 3% over the enacted FY 2023 spending level. The FY 2024 defense appropriations bill was supportive of our key programs and consistent with our financial outlook for 2024.
Previous report
Overall, the Combat Systems segment’s operating margin decreased 60 basis points driven by lower-margin artillery facilities expansion work.
Previous report
The Technologies segment’s revenue was down slightly due to program timing and ramp-down of legacy programs, while operating margin remained consistent with the prior period.
Previous report
Orders in the first quarter of 2024 reflected strong demand across our portfolio of products and services. The segment’s book-to-bill ratio (orders divided by revenue) was 1.2-to-1 in the first quarter of 2024.
Previous report
•$310 from the U.S. Navy for maintenance, modernization and repair work on the USS Bataan, a Wasp-class amphibious assault ship.
Previous report
•$255 for future technology development on the next-generation attack submarine, SSN(X), program for the Navy.
Previous report
•$150 from the Navy for long-lead materials for Block VI Virginia-class submarines.
Previous report
•$150 for design and engineering efforts for Virginia-class submarines for the Navy.
Previous report
•$125 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.
Previous report
•An IDIQ contract to provide medium-caliber ammunition cartridges for the U.S. Army. The contract has a maximum potential value of $3 billion among two awardees.
Previous report
•$1.3 billion for the production of Pandur 6x6 wheeled combat vehicles from the Austrian Federal Ministry of Defense. The contract including options has a maximum potential value of $2 billion.
Previous report
•$325 from the Canadian government to produce armored combat support vehicles (ACSVs).
Previous report
•$205 from the Army for inventory management for the Stryker wheeled combat-vehicle fleet.
Previous report
•Four IDIQ contracts from the Canadian government to support the Land Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) system for the Canadian army. These contracts have a maximum potential value of $1.3 billion.
Previous report
•$125 to modernize the U.S. Central Command’s (CENTCOM) enterprise information technology (IT) infrastructure. The contract including options has a maximum potential value of $920.
Previous report
•$340 from the Navy to provide full life cycle and operational support for the Trident II Fire Control System (FCS) onboard Ohio-class submarines and continue the development, production and installation of FCS for all new Columbia-class submarines. The contract including options has a maximum potential value of $620.
Previous report
•$140 from the U.S. Air Force for the Battlefield Information Collection and Exploitation System - Extended (BICES-X) program to provide intelligence information sharing capabilities. The contract has a maximum potential value of $320.
Previous report
•A contract to provide technical expertise to develop and deliver high-performance computing systems and software for a classified customer. The contract including options has a maximum potential value of $290.
Previous report
•$35 from the Air Force to provide goods and engineering services to support the Federated Trust Network Environment Infrastructure (FTI) portion of the BICES program. The contract has a maximum potential value of $240.
Previous report
•$230 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services.
Previous report
•$35 from the Navy for maintenance, training and sustainment of the Integrated Nuclear Weapons Security and Integrated Electronic Security Systems. The contract including options has a maximum potential value of $190.
Reworded paragraphs (35)
Previous wording
On March 29, 2024, our ultra-long-range, ultra-large-cabin G700 aircraft received U.S. Federal Aviation Administration (FAA) type certification after completing the most rigorous certification program in company history. While no G700 aircraft deliveries were made in the first quarter of 2024, the certification paves the way for customer deliveries beginning in the second quarter of 2024. We expect to deliver about 50 G700 aircraft this year.
Current wording
On May 15, 2024, our ultra-long-range, ultra-large-cabin G700 aircraft received European Union Aviation Safety Agency (EASA) type certification. This follows U.S. Federal Aviation Administration (FAA) type certification in March 2024, after completing the most rigorous certification program in company history. These certifications paved the way for customer deliveries beginning in the second quarter of 2024. We expect to deliver about 50 G700 aircraft this year.
Previous wording
The coronavirus (COVID-19) pandemic caused significant disruptions to national and global economies and government activities, including supply chain and staffing challenges. Additionally, in response to the Russian invasion of Ukraine, the United States and several other countries imposed economic and trade sanctions, export controls and other restrictions targeting Russia and Belarus. Lastly, the impact of the war between Israel and Hamas continues to evolve. The disruptions caused by these events continue to impact global economies and businesses. The primary impact to our business is supply chain challenges, including inflationary pressures. In our Aerospace segment, supply chain challenges have paced our ability to ramp up production in response to strong customer demand for our aircraft and have caused out-of-sequence manufacturing, which increases costs and decreases operational efficiency. In addition, the Israel-Hamas war has impacted the delivery schedule for our Israel-based supplier of mid-cabin aircraft. Within our defense segments, the COVID-19 pandemic resulted in supply chain challenges and impacted the regional availability of skilled labor, which we continue to experience, particularly in our Marine Systems segment. The Russia-Ukraine conflict and increased threat environment has created additional demand for certain of our products and services, particularly in our Combat Systems segment.
Current wording
The coronavirus (COVID-19) pandemic caused significant disruptions to national and global economies and government activities, including supply chain and staffing challenges. Additionally, in response to the Russian invasion of Ukraine, the United States and several other countries imposed economic and trade sanctions, export controls and other restrictions targeting Russia and Belarus. Lastly, the impact of the war between Israel and Hamas continues to evolve. The disruptions caused by these events continue to impact global economies and businesses. The primary impact to our business is supply chain challenges, including inflationary pressures. In our Aerospace segment, supply chain challenges have paced our ability to ramp up production in response to strong customer demand for our aircraft and have caused out-of-sequence manufacturing, which increases costs and decreases operational efficiency. In addition, the Israel-Hamas war has impacted the delivery schedule for our Israel-based supplier of mid-cabin aircraft. Within our defense segments, the COVID-19 pandemic resulted in supply chain challenges that continue to impact our Marine Systems segment. The Russia-Ukraine conflict and increased threat environment have created additional demand for certain of our products and services, particularly in our Combat Systems segment.
Previous wording
Our consolidated revenue increased in the first quarter of 2024 driven by double digit growth in our Aerospace, Marine Systems and Combat Systems segments. Revenue increased at a greater rate than operating costs and expenses in the three-month period, resulting in a 20 basis-point increase in operating margin.
Current wording
Our consolidated revenue increased in the second quarter and first six months of 2024 driven by growth across all segments, including double digit percentage growth in our Aerospace, Marine Systems and Combat Systems segments. Operating margin increased 20 basis points in the second quarter and first six months of 2024.
Previous wording
The increase in the Aerospace segment’s revenue in the first quarter of 2024 consisted of the following:
Current wording
The increase in the Aerospace segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Aircraft manufacturing revenue increased in the first quarter of 2024 due primarily to additional deliveries of our G650 ultra-large-cabin aircraft. Aircraft services revenue was up in the first quarter of 2024 due to increased customer demand for aircraft maintenance based on established maintenance cycles, a larger installed base and customer flight activity.
Current wording
Aircraft manufacturing revenue increased in the second quarter and first six months of 2024 due primarily to the number and mix of aircraft deliveries including initial deliveries of our ultra-long-range, ultra-large-cabin G700 aircraft. Aircraft services revenue was up in the second quarter and first six months of 2024 due to increased customer demand for aircraft maintenance based on established maintenance cycles, a larger installed base and customer flight activity.
Previous wording
The increase in the segment’s operating earnings in the first quarter of 2024 consisted of the following:
Current wording
The increase in the segment’s operating earnings in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Aircraft manufacturing operating earnings increased in the first quarter of 2024 due primarily to the number and mix of aircraft deliveries. Aircraft services operating earnings increased due to higher volume and favorable cost performance. G&A/other expenses increased in the first quarter of 2024 due primarily to increased R&D expenses associated with ongoing product development efforts. In total, the Aerospace segment’s operating margin increased 10 basis points in the first quarter of 2024 compared with the prior-year period.
Current wording
Aircraft manufacturing operating earnings increased in the second quarter and first six months of 2024 due primarily to the number and mix of aircraft deliveries. Aircraft services operating earnings increased in the second quarter and first six months due to higher volume. G&A/other expenses increased in the first six months of 2024 due primarily to increased R&D expenses associated with ongoing certification and product development efforts. In total, the Aerospace segment’s operating margin decreased 120 basis points in the second quarter and 70 basis points in the first six months of 2024 compared with the prior-year periods, reflecting additional costs associated with the first lot of G700 aircraft, out of station work caused by late supply chain deliveries and extended certification processes.
Previous wording
The increase in the Marine Systems segment’s revenue in the first quarter of 2024 consisted of the following:
Current wording
The increase in the Marine Systems segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Revenue from U.S. Navy ship construction was up in the first quarter of 2024 due primarily to increased volume on the Columbia-class submarine program. Overall, the Marine Systems segment’s operating margin in both periods reflected the impact of supply chain challenges.
Current wording
Revenue from U.S. Navy ship construction and engineering was up in the second quarter and first six months of 2024 due primarily to increased volume on the Columbia-class and Virginia-class submarine programs. Overall, the Marine Systems segment’s operating margin continues to reflect the impact of supply chain challenges.
Previous wording
The increase in the Combat Systems segment’s revenue in the first quarter of 2024 consisted of the following:
Current wording
The increase in the Combat Systems segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Revenue from weapons systems and munitions increased in the first quarter of 2024 due to heightened demand for artillery products, which has resulted in facility expansion efforts to achieve higher production rates. Revenue from international military vehicles increased due primarily to higher volume on contracts for the sale of the Abrams main battle tank to U.S. allies and partners, and wheeled vehicle sales in Europe. Revenue from U.S. military vehicles increased due to higher volume on the U.S. Army’s M10 Booker combat vehicle program.
Current wording
Revenue from weapons systems and munitions increased in the second quarter and first six months of 2024 due to heightened demand for artillery products, which has resulted in facility expansion efforts to achieve higher production rates. Revenue from U.S. military vehicles increased due primarily to higher volume on the U.S. Army’s M10 Booker combat vehicle program. Revenue from international military vehicles increased in the first six months of 2024 due primarily to higher volume on contracts for the sale of the Abrams main battle tank to U.S. allies and partners and wheeled combat vehicle sales in Europe.
Previous wording
The change in the Technologies segment’s revenue in the first quarter of 2024 consisted of the following:
Current wording
The increase in the Technologies segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Corporate operating costs totaled $28 in the first quarter of 2024 compared with $46 in the first quarter of 2023 and consisted primarily of equity-based compensation expense.
Current wording
Corporate operating costs totaled $41 in the second quarter and $69 in the first six months of 2024 compared with $43 in the second quarter and $89 in the first six months of 2023 and consisted primarily of equity-based compensation expense. Corporate operating costs are expected to be approximately $140 in 2024.
Previous wording
The increase in product revenue in the first quarter of 2024 consisted of the following:
Current wording
The increase in product revenue in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Ship construction revenue increased in the first quarter of 2024 due primarily to higher volume on the Columbia-class submarine program. Weapons systems and munitions revenue was up due to heightened demand for artillery products, which has resulted in facility expansion efforts to achieve higher production rates. Aircraft manufacturing revenue was up due to additional aircraft deliveries. The primary drivers of the increase in product operating costs were the changes in volume on the programs described above.
Current wording
Aircraft manufacturing revenue increased in the second quarter and first six months of 2024 due to additional aircraft deliveries. Weapons systems and munitions revenue was up due to heightened demand for artillery products, which has resulted in facility expansion efforts to achieve higher production rates. Ship construction revenue increased due primarily to higher volume on the Columbia-class and Virginia-class submarine programs. The primary drivers of the increase in product operating costs were the changes in volume on the programs described above.
Previous wording
The increase in service revenue in the first quarter of 2024 consisted of the following:
Current wording
The increase in service revenue in the second quarter and first six months of 2024 consisted of the following:
Previous wording
Aircraft services revenue increased in the first quarter of 2024 due to additional maintenance work. Ship services revenue increased due to higher volume of engineering and repair work. The primary drivers of the increase in service operating costs were the changes in volume on the programs described above.
Current wording
Ship services revenue increased in the second quarter and first six months of 2024 due to higher volume on the Columbia-class submarine program. Aircraft services revenue was up due to additional maintenance work. C5ISR solutions and IT services revenue was up due to higher volume, including the ramp-up of new programs. The primary drivers of the increase in service operating costs were the changes in volume on the programs described above.
Previous wording
As a percentage of revenue, G&A expenses decreased to 5.8% in the first three months of 2024 compared with 5.9% in the first three months of 2023.
Current wording
As a percentage of revenue, G&A expenses decreased to 5.6% in the first six months of 2024 compared with 5.9% in the first six months of 2023. We expect G&A expenses as a percentage of revenue in 2024 to be generally consistent with 2023.
Previous wording
Net other income was $14 in the first three months of 2024 compared with $33 in the first three months of 2023, and represents primarily the non-service components of pension and other post-retirement benefits.
Current wording
Net other income was $32 in the first six months of 2024 compared with $46 in the first six months of 2023, and represents primarily the non-service components of pension and other post-retirement benefits. In 2024, we expect net other income to be approximately $60.
Previous wording
Net interest expense was $82 in the first three months of 2024 compared with $91 in the prior-year period, reflecting the repayment of our scheduled debt maturities in 2023. See Note H to the unaudited Consolidated Financial Statements in Part I, Item 1, for additional information regarding our debt obligations, including interest rates.
Current wording
Net interest expense was $166 in the first six months of 2024 compared with $180 in the prior-year period, reflecting the repayment of our scheduled debt maturities in 2023. See Note H to the unaudited Consolidated Financial Statements in Part I, Item 1, for additional information regarding our debt obligations, including interest rates. We expect 2024 net interest expense to be approximately $320.
Previous wording
Our effective tax rate was 17.5% in the first three months of 2024 compared with 17% in the prior-year period.
Current wording
Our effective tax rate was 17.2% in the first six months of 2024 compared with 16.5% in the prior-year period. For 2024, we anticipate a full-year effective tax rate of approximately 17.5%.
Previous wording
Our total backlog, including funded and unfunded portions, was $93.7 billion at the end of the first quarter of 2024 compared with $93.6 billion on December 31, 2023. Our total backlog is equal to our remaining performance obligations under contracts with customers as discussed in Note B to the unaudited Consolidated Financial Statements in Part I, Item 1. Our total estimated contract value, which combines total backlog with estimated potential contract value, was $134 billion on March 31, 2024.
Current wording
Our total backlog, including funded and unfunded portions, was $91.3 billion at the end of the second quarter of 2024 compared with $93.7 billion at the end of the first quarter. Our total backlog is equal to our remaining performance obligations under contracts with customers as discussed in Note B to the unaudited Consolidated Financial Statements in Part I, Item 1. Our total estimated contract value, which combines total backlog with estimated potential contract value, was $129.8 billion on June 30, 2024.
Previous wording
The following table details the backlog and estimated potential contract value of each segment at the end of the first quarter of 2024 and fourth quarter of 2023:
Current wording
The following table details the backlog and estimated potential contract value of each segment at the end of the second and first quarters of 2024:
Previous wording
Aerospace funded backlog represents primarily new aircraft orders for which we have definitive purchase contracts and deposits from customers. Unfunded backlog consists of agreements to provide future aircraft maintenance and support services. The Aerospace segment ended the first quarter of 2024 with backlog of $20.5 billion.
Current wording
Aerospace funded backlog represents primarily new aircraft orders for which we have definitive purchase contracts and deposits from customers. Unfunded backlog consists of agreements to provide future aircraft maintenance and support services. The Aerospace segment ended the second quarter of 2024 with backlog of $20 billion.
Previous wording
Beyond total backlog, estimated potential contract value represents primarily options and other agreements with existing customers to purchase new aircraft and long-term aircraft services agreements. On March 31, 2024, estimated potential contract value in the Aerospace segment was $305.
Current wording
Beyond total backlog, estimated potential contract value represents primarily options and other agreements with existing customers to purchase new aircraft and long-term aircraft services agreements. On June 30, 2024, estimated potential contract value in the Aerospace segment was $372.
Previous wording
Total backlog in our defense segments was $73.2 billion on March 31, 2024. In the first quarter of 2024, the Combat Systems segment achieved a book-to-bill ratio of 1.6-to-1, and overall, the defense segments achieved a book-to-bill ratio of 1-to-1. Estimated potential contract value in our defense segments was $40 billion on March 31, 2024. We received the following significant contract awards during the first quarter of 2024:
Current wording
Total backlog in our defense segments was $71.3 billion on June 30, 2024. In the second quarter of 2024, the Combat Systems and Technologies segments achieved book-to-bill ratios of 1.5-to-1 and 1-to-1, respectively. Estimated potential contract value in our defense segments was $38.1 billion on June 30, 2024. We received the following significant contract awards during the second quarter of 2024:
Previous wording
•$285 to produce Abrams main battle tanks in the system enhancement package version 3 (SEPv3) configuration for Romania.
Current wording
•$230 from the Army to upgrade Abrams main battle tanks to the system enhancement package version 3 (SEPv3) configuration.
Previous wording
•$505 for several key contracts for classified customers. These contracts have a maximum potential value of $995.
Current wording
•$530 for several key contracts for classified customers. These contracts have a maximum potential value of $665.
Previous wording
We ended the first quarter of 2024 with a cash and equivalents balance of $1 billion compared with $1.9 billion at the end of 2023. The following is a discussion of our major operating, investing and financing activities in the first three months of 2024 and 2023, as classified on the Consolidated Statement of Cash Flows in Part I, Item 1:
Current wording
We ended the second quarter of 2024 with a cash and equivalents balance of $1.4 billion compared with $1.9 billion at the end of 2023. The following is a discussion of our major operating, investing and financing activities in the first six months of 2024 and 2023, as classified on the Consolidated Statement of Cash Flows in Part I, Item 1:
Previous wording
Cash used by operating activities was $278 million in the first three months of 2024 compared with cash provided by operating activities of $1.5 billion in the same period in 2023. The primary driver of cash flows in both periods was net earnings. Cash flows in the first three months of 2024 were affected negatively by growth in operating working capital, particularly driven by the ramp-up in production of new Gulfstream aircraft models in our Aerospace segment and timing in our Marine Systems and Combat Systems segments. Cash flows in the first three months of 2023 were affected positively by a decrease in unbilled receivables due to the receipt of progress payments on large international vehicle contracts in our Combat Systems segment and an increase in customer deposits driven by Gulfstream aircraft orders, offset partially by an increase in inventory due primarily to the ramp-up in production of new Gulfstream aircraft models.
Current wording
Cash provided by operating activities was $536 in the first six months of 2024 compared with $2.2 billion in the same period in 2023. The primary driver of cash flows in both periods was net earnings. Cash flows in the first six months of 2024 were affected negatively by growth in operating working capital, particularly driven by the ramp-up in production of new Gulfstream aircraft models in our Aerospace segment and timing in our Combat Systems segment. Cash flows in the first six months of 2023 were affected positively by a decrease in unbilled receivables due to the receipt of progress payments on large international vehicle contracts in our Combat Systems segment and an increase in customer deposits driven by Gulfstream aircraft orders, offset partially by an increase in inventory due primarily to the ramp-up in production of new Gulfstream aircraft models.
Previous wording
Cash used by investing activities was $182 in the first three months of 2024 compared with $190 in the same period in 2023. Our investing activities include cash paid for capital expenditures and business acquisitions; purchases, sales and maturities of marketable securities; and proceeds from asset sales. The primary use of cash for investing activities in both periods was capital expenditures. Capital expenditures were $159 in the first three months of 2024 compared with $161 in the same period in 2023.
Current wording
Cash used by investing activities was $307 in the first six months of 2024 compared with $404 in the same period in 2023. Our investing activities include cash paid for capital expenditures and business acquisitions; purchases, sales and maturities of marketable securities; and proceeds from asset sales. The primary use of cash for investing activities in both periods was capital expenditures. Capital expenditures were $360 in the first six months of 2024 compared with $373 in the same period in 2023.
Previous wording
Cash used by financing activities was $416 million in the first three months of 2024 compared with $475 million in the same period in 2023. Financing activities include the use of cash for repurchases of common stock, payment of dividends, and debt and commercial paper repayments. Our financing activities also include proceeds received from debt and commercial paper issuances and employee stock option exercises.
Current wording
Cash used by financing activities was $778 in the first six months of 2024 compared with $1.9 billion in the same period in 2023. Financing activities include the use of cash for repurchases of common stock, payment of dividends, and debt and commercial paper repayments. Our financing activities also include proceeds received from debt and commercial paper issuances and employee stock option exercises.
Previous wording
On March 6, 2024, our board of directors (Board) declared an increased quarterly dividend of $1.42 per share, the 27th consecutive annual increase. Previously, the Board had increased the quarterly dividend to $1.32 per share in March 2023. Cash dividends paid were $361 in the first three months of 2024 compared with $345 in the same period in 2023.
Current wording
On March 6, 2024, our board of directors (Board) declared an increased quarterly dividend of $1.42 per share, the 27th consecutive annual increase. Previously, the Board had increased the quarterly dividend to $1.32 per share in March 2023. Cash dividends paid were $750 in the first six months of 2024 compared with $705 in the same period in 2023.
Previous wording
We paid $105 and $90 in the first three months of 2024 and 2023, respectively, to repurchase our outstanding shares. On March 31, 2024, 4.3 million shares remained authorized by our Board for repurchase, representing 1.6% of our total shares outstanding.
Current wording
We paid $139 and $378 in the first six months of 2024 and 2023, respectively, to repurchase our outstanding shares. On June 30, 2024, 4.2 million shares remained authorized by our Board for repurchase, representing 1.5% of our total shares outstanding.
Previous wording
Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. We review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date on a contract is recognized in the period the adjustment is identified. The aggregate impact of adjustments in contract estimates increased our operating earnings (and diluted earnings per share) by $36 ($0.10) and $77 ($0.22) for the three-month periods ended March 31, 2024 and April 2, 2023, respectively. No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three-month periods ended March 31, 2024, or April 2, 2023.
Current wording
Accounting for long-term contracts and programs involves the use of various techniques to estimate total contract revenue and costs. Contract estimates are based on various assumptions to project the outcome of future events that often span several years. We review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date on a contract is recognized in the period the adjustment is identified. The aggregate impact of adjustments in contract estimates increased our operating earnings (and diluted earnings per share) by $77 ($0.22) and $113 ($0.32) for the three- and six-month periods ended June 30, 2024, and $10 ($0.03) and $87 ($0.25) for the three- and six-month periods ended July 2, 2023, respectively. No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three- and six-month periods ended June 30, 2024, or July 2, 2023.