GENERAL DYNAMICS CORP
For the period ended Sep 29, 2024. Filed Oct 23, 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.
Sep 29, 2024 · Filed Oct 23, 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 2024-06-30; filed 2024-07-24.
0000040533-24-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-29; filed 2024-10-23.
0000040533-24-000043
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 126 previous paragraphs and 126 current paragraphs.
66 unchanged; 41 reworded; 17 added; 19 removed; 0 previous and 2 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 (17)
Current report
With approximately 70% of our revenue from work for the U.S. government, government spending levels — particularly defense spending — influence our financial performance. The Congress has not yet passed a defense appropriations bill for the government’s fiscal year 2025 even though the new year began on October 1, 2024. However, on September 26, 2024, a continuing resolution (CR) was signed into law, providing funding for federal agencies through December 20, 2024. When the government operates under a CR, all programs of record are funded at the prior year’s appropriated levels until the current year appropriations bill is signed into law. Therefore, the DoD is prohibited from starting new programs or increasing funding on existing programs unless there is an exception for the program included in the CR. We do not anticipate the current CR having a material impact on our results of operations, financial condition or cash flows. However, the impact to our business from an extended CR or government shutdown that may result from any continuing delay by Congress to pass a new defense appropriations bill is currently uncertain and would depend on the duration and government implementation of the CR or shutdown. For additional information, see the Risk Factors in Part I, Item 1A, in our most recent Form 10-K filing.
Current report
The increase in the Aerospace segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Current report
Overall, the Combat Systems segment’s operating margin increased 120 basis points in the third quarter and 40 basis points in the first nine months of 2024 driven by favorable contract mix and strong operating performance.
Current report
•$780 from the U.S. Navy for the construction of an additional John Lewis-class (T-AO-205) fleet replenishment oiler. The contract including options for an additional seven T-AO-205 oilers has a maximum potential value of more than $6.7 billion.
Current report
•$1.5 billion from the Navy for long-lead materials for Block VI Virginia-class submarines.
Current report
•$100 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.
Current report
•$465 for two contracts from the U.S. Army for the production of 155mm artillery projectile metal parts. These contracts have a maximum potential value of $1.7 billion.
Current report
•$395 from the Army for the production of 155mm propelling bag charges.
Current report
•$190 from the Army to produce Iron Fist Active Protection System kits.
Current report
•$180 from the Army to produce Stryker Sgt. Stout vehicles.
Current report
•$100 from the Army for long-lead materials to support the future retrofit of Stryker Sgt. Stout vehicles to a dual Stinger Vehicle Universal Launcher (SVUL) configuration.
Current report
•$605 for multiple awards from the U.S. Space Development Agency to develop and integrate ground systems for the low-Earth orbit satellite network.
Current report
•$105 from the U.S. Defense Information Systems Agency (DISA) to continue operating and maintaining Pentagon and regional government-furnished network infrastructures. The contract including options has a maximum potential value of $300.
Current report
•$185 from the U.S. Department of State (DoS) to manage its global technical security supply chain.
Current report
•$135 to provide equipment and tools to the National Oceanic Atmospheric Administration (NOAA) to augment its High-Performance Computing Systems.
Current report
•$130 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services.
Current report
•$120 from the DoS to provide overseas consular services to support visa application and issuance at U.S. embassies and consulates throughout the world under the Global Support Strategy (GSS) program.
Removed paragraphs (19)
Previous report
The increase in the Aerospace segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Previous 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.
Previous 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.
Previous report
•$55 from the Navy to support non-nuclear maintenance on submarines based at the New England Naval Submarine Support Facility.
Previous report
•$35 for design and engineering services in support of U.S. and U.K. submarine technologies for the Navy.
Previous 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.
Previous report
•$25 from the U.S. Army for systems technical support on the Stryker fleet. The contract has a maximum potential value of $535.
Previous report
•$390 from the Army primarily to establish additional capacity for artillery propellant.
Previous report
•$375 from the Army to upgrade Stryker vehicles to the double-V-hull A1 configuration.
Previous report
•$325 from the Army for the third phase of the low-rate initial production (LRIP) of the M10 Booker Combat Vehicle.
Previous report
•$230 from the Army to upgrade Abrams main battle tanks to the system enhancement package version 3 (SEPv3) configuration.
Previous report
•$120 from the Army to provide system and sustainment technical support services for Abrams main battle tanks.
Previous 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.
Previous 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.
Previous report
•$55 to provide IT network operations and maintenance services to the Army. The contract including options has a maximum potential value of $200.
Previous report
•$185 from CMS to provide cloud services and software tools.
Previous report
•$30 to provide cybersecurity services to the U.S. Air Force. The contract including options has a maximum potential value of $185.
Previous report
•$145 to provide ship modernization services for the Navy.
Previous report
•$10 to integrate hardware and software solutions for Navy platforms. The contract including options has a maximum potential value of $110.
Reworded paragraphs (41)
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 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.
Current wording
In our Aerospace segment, supply chain challenges have paced our ability to ramp up production at the rate we would have liked, 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 conflict in the Middle East 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
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.
Current wording
Earlier this year, our ultra-long-range, ultra-large-cabin G700 aircraft received U.S. Federal Aviation Administration (FAA) and European Union Aviation Safety Agency (EASA) type certification, which paved the way for customer deliveries in the second quarter of 2024. Deliveries were impacted in the third quarter by late supply chain deliveries, additional type certification procedures due to complex interiors, a quality escape from a vendor that was identified and rectified and timing of regional weather events. These impacts are largely behind us and we expect to deliver about 42 G700 aircraft in all this year.
Previous 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.
Current wording
We had strong growth in consolidated revenue during 2024, including double digit percentage growth in our Aerospace, Marine Systems and Combat Systems segments over the first nine months. Operating margin increased 10 basis points in both the third quarter and the first nine months of 2024.
Previous 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.
Current wording
Aircraft manufacturing revenue increased in the third quarter and first nine 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 third quarter and first nine 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 second quarter and first six months of 2024 consisted of the following:
Current wording
The increase in the segment’s operating earnings in the third quarter and first nine months of 2024 consisted of the following:
Previous 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.
Current wording
Aircraft services operating earnings increased in the third quarter and first nine months of 2024 due to higher volume. Although aircraft manufacturing revenue increased in 2024, operating earnings have not increased at the same rate, reflecting additional costs associated with the first lot of G700 aircraft and out of station work caused by late supply chain deliveries. G&A/other expenses have increased in 2024 due in part to the R&D efforts supporting the extended FAA certification processes. In total, the Aerospace segment’s operating margin decreased 90 basis points in the third quarter and 80 basis points in the first nine months of 2024 compared with the prior-year periods.
Previous wording
We expect the Aerospace segment’s 2024 revenue to be approximately $12.7 billion, with operating margin of approximately 14%.
Current wording
We expect the Aerospace segment’s 2024 revenue to be approximately $12.3 billion, with operating margin of approximately 13.2%.
Previous wording
The increase in the Marine Systems segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Current wording
The increase in the Marine Systems segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Previous 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.
Current wording
Revenue from U.S. Navy ship construction and engineering was up in the third quarter and first nine months of 2024 due primarily to increased volume on the Columbia-class and Virginia-class submarine programs. The Marine Systems segment’s operating margin continues to reflect the impact of supply chain challenges.
Previous wording
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 wording
We expect the Marine Systems segment’s 2024 revenue to be approximately $13.9 billion with operating margin of approximately 6.9%.
Previous wording
The increase in the Combat Systems segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Current wording
The change in the Combat Systems segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Previous 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.
Current wording
Weapons systems and munitions revenue increased in the first nine months of 2024 due to heightened demand for artillery products, including facility expansion efforts to achieve higher production rates. In the third quarter, revenue was down due to program timing. Revenue from U.S. military vehicles was up in the third quarter and first nine months due primarily to higher volume on the U.S. Army’s M10 Booker combat vehicle program.
Previous wording
The increase in the Technologies segment’s revenue in the second quarter and first six months of 2024 consisted of the following:
Current wording
The increase in the Technologies segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Previous wording
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 wording
The Technologies segment’s revenue was up in the third quarter and first nine months of 2024 due to higher volume of IT services, including the ramp-up of new programs. Overall, the Technologies segment’s operating margin increased 20 basis points in the third quarter and 30 basis points in the first nine months of 2024 due to strong operating performance.
Previous 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.
Current wording
Corporate operating costs totaled $33 in the third quarter and $102 in the first nine months of 2024 compared with $37 in the third quarter and $126 in the first nine 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 second quarter and first six months of 2024 consisted of the following:
Current wording
The increase in product revenue in the third quarter and first nine months of 2024 consisted of the following:
Previous 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.
Current wording
Aircraft manufacturing revenue increased in the third quarter and first nine months of 2024 due to additional aircraft deliveries. Ship construction revenue increased due primarily to higher volume on the Columbia-class and Virginia-class submarine programs. Weapons systems and munitions revenue increased in the first nine months of 2024 due to heightened demand for artillery products. 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 second quarter and first six months of 2024 consisted of the following:
Current wording
The increase in service revenue in the third quarter and first nine months of 2024 consisted of the following:
Previous 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.
Current wording
Ship services revenue increased in the third quarter and first nine 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 5.6% 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.
Current wording
As a percentage of revenue, G&A expenses decreased to 5.5% in the first nine months of 2024 compared with 5.9% in the first nine 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 $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.
Current wording
Net other income was $47 in the first nine months of 2024 compared with $65 in the first nine 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 $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.
Current wording
Net interest expense was $248 in the first nine months of 2024 compared with $265 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 17.2% 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%.
Current wording
Our effective tax rate was 17.0% in the first nine months of 2024 compared with 16.2% in the prior-year period. For 2024, based on increased U.S. and foreign tax credits, tax benefits from equity-based compensation and other timing items, we anticipate a full-year effective tax rate of approximately 17.0%.
Previous 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.
Current wording
Our total backlog, including funded and unfunded portions, was $92.6 billion at the end of the third quarter of 2024 compared with $91.3 billion at the end of the second 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 $137.6 billion on September 29, 2024.
Previous 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:
Current wording
The following table details the backlog and estimated potential contract value of each segment at the end of the third and second 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 second quarter of 2024 with backlog of $20 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 third quarter of 2024 with backlog of $19.8 billion.
Previous wording
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 wording
Orders for new Gulfstream aircraft reflected strong demand, yielding a segment book-to-bill ratio (orders divided by revenue) of 1-to-1 for the first nine months of 2024, even as revenue grew by nearly 30% year over year.
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 June 30, 2024, estimated potential contract value in the Aerospace segment was $372.
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 September 29, 2024, estimated potential contract value in the Aerospace segment was $254.
Previous 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:
Current wording
Total backlog in our defense segments was $72.8 billion on September 29, 2024. In the third quarter of 2024, the Combat Systems and Technologies segments achieved book-to-bill ratios of 1.5-to-1 and 1.3-to-1, respectively. Overall, the total book-to-bill ratio in our defense segments was 1.1-to-1 in the third quarter of 2024. Estimated potential contract value in our defense segments was $44.7 billion on September 29, 2024. We received the following significant contract awards during the third quarter of 2024:
Previous wording
•$55 from the Navy for maintenance and modernization on the USS James E. Williams, a DDG-51 guided-missile destroyer.
Current wording
•$85 from the Navy for maintenance and modernization on the USS Chung-Hoon, an Arleigh Burke-class (DDG-51) guided missile destroyer.
Previous wording
•$35 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
Current wording
•$80 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
Previous wording
•$385 for various munitions and ordnance. These contracts including options have a maximum potential value of $460.
Current wording
•$885 for various munitions and ordnance. These contracts have a maximum potential value of $1.7 billion.
Previous wording
•$530 for several key contracts for classified customers. These contracts have a maximum potential value of $665.
Current wording
•$840 for several key contracts for classified customers. These contracts have a maximum potential value of $1 billion.
Previous 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:
Current wording
We ended the third quarter of 2024 with a cash and equivalents balance of $2.1 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 nine months of 2024 and 2023, as classified on the Consolidated Statement of Cash Flows in Part I, Item 1:
Previous 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.
Current wording
Cash provided by operating activities was $2 billion in the first nine months of 2024 compared with $3.5 billion in the same period in 2023. The primary driver of cash flows in both periods was net earnings. Cash flows in the first nine 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 nine months of
Previous 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.
Current wording
Cash used by investing activities was $588 in the first nine months of 2024 compared with $608 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 $561 in the first nine months of 2024 compared with $600 in the same period in 2023.
Previous 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.
Current wording
Cash used by financing activities was $1.2 billion in the first nine months of 2024 compared with $2.8 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 $750 in the first six months of 2024 compared with $705 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 $1.1 billion in the first nine months of 2024 and 2023.
Previous 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.
Current wording
We paid $183 and $434 in the first nine months of 2024 and 2023, respectively, to repurchase our outstanding shares. On September 29, 2024, 4 million shares remained authorized by our Board for repurchase, representing 1.5% of our total shares outstanding.
Previous wording
Fixed-rate notes of $500 mature in November 2024. We currently plan to repay these notes at maturity using cash on hand, potentially supplemented by commercial paper or other borrowings. For additional information regarding our debt obligations, including scheduled debt maturities and interest rates, see Note H to the unaudited Consolidated Financial Statements in Part I, Item 1.
Current wording
Fixed-rate notes of $500 mature in November 2024. We currently plan to repay these notes at maturity using cash on hand. For additional information regarding our debt obligations, including scheduled debt maturities and interest rates, see Note H to the unaudited Consolidated Financial Statements in Part I, Item 1.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
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 conflict in the Middle East 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.
Current report — wording carried from elsewhere
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.