GENERAL DYNAMICS CORP
For the period ended Mar 30, 2025. Filed Apr 23, 2025.
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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.
Mar 30, 2025 · Filed Apr 23, 2025
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 2024-09-29; filed 2024-10-23.
0000040533-24-000043
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-30; filed 2025-04-23.
0000040533-25-000014
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 102 current paragraphs.
59 unchanged; 30 reworded; 13 added; 37 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 (13)
Current report
Federal Government
Current report
We entered 2025 with the federal government operating under a continuing resolution (CR). Historically, Congress eventually enacts a budget that authorizes the level of spending for the fiscal year. This year, Congress signed into law a CR for the entire fiscal year. Although the CR provides funding for our key programs, including the Columbia-class and Virginia-class submarine programs, there is some uncertainty as to how the full-year CR will be implemented.
Current report
The administration has expressed its intention to reduce federal spending and formed the Department of Government Efficiency (DOGE) to assist in this process. Thus far, the directives of the administration and actions of the DOGE have resulted in federal government staff reductions, hiring freezes, contract modifications and terminations, and delays in contract awards. We have been working with many of our customers to identify areas that might be considered for further spending reductions.
Current report
In addition, the administration has implemented new tariffs as part of U.S. trade policy. The duration and extent of the tariffs and reciprocal tariffs, as well as the availability of exemptions or contractual remedies (or recoverability), continue to evolve.
Current report
To date, none of these actions have had a material impact on our results of operations, financial condition or cash flows. However, any future impact cannot be determined right now.
Current report
Business Aviation
Current report
On April 16, 2025, the world's longest-range business aircraft, our ultra-long-range, ultra-large-cabin G800 received type certification from the U.S. Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA). The certification paves the way for customer deliveries beginning late in the second quarter of 2025. The G800 is the replacement aircraft for the G650, which correspondingly ended production in the first quarter of 2025.
Current report
Our consolidated revenue increased in the first quarter of 2025 across all four operating segments, including nearly 50% growth in our Aerospace segment. Operating margin increased 70 basis points in the first quarter of 2025 due primarily to strong operating performance in our Aerospace and Technologies segments.
Current report
The increase in the Aerospace segment’s revenue in the first quarter of 2025 consisted of the following:
Current report
Weapons systems and munitions revenue increased in the first quarter of 2025 due primarily to heightened demand for artillery products. Overall, the Combat Systems segment’s operating margin was consistent with the prior period.
Current report
Our effective tax rate was 17.2% in the first three months of 2025 compared with 17.5% in the prior-year period.
Current report
Orders for new Gulfstream aircraft reflected solid demand across our portfolio of products and services. The segment’s book-to-bill ratio (orders divided by revenue) of 0.8-to-1, reflected revenue growth of nearly 50% in the first quarter of 2025.
Current report
Total backlog in our defense segments was $69.7 billion on March 30, 2025. In the first quarter of 2025, we continued to see strong demand for technology products and services as our Technologies segment achieved a book-to-bill ratio of 1.1-to-1. Estimated potential contract value in our defense segments was $51.6 billion on March 30, 2025.
Removed paragraphs (37)
Previous 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.
Previous report
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.
Previous report
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 report
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 report
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 report
The increase in the Aerospace segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Previous report
We expect the Aerospace segment’s 2024 revenue to be approximately $12.3 billion, with operating margin of approximately 13.2%.
Previous report
We expect the Marine Systems segment’s 2024 revenue to be approximately $13.9 billion with operating margin of approximately 6.9%.
Previous report
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 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.
Previous report
We expect the Combat Systems segment’s 2024 revenue to be approximately $8.7 billion with operating margin of approximately 14.4%.
Previous report
We expect the Technologies segment’s 2024 revenue to be approximately $13 billion with operating margin of approximately 9.5%.
Previous report
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 report
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 report
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 report
MARINE SYSTEMS
Previous 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.
Previous report
•$1.5 billion from the Navy for long-lead materials for Block VI Virginia-class submarines.
Previous report
•$100 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.
Previous report
•$85 from the Navy for maintenance and modernization on the USS Chung-Hoon, an Arleigh Burke-class (DDG-51) guided missile destroyer.
Previous report
•$80 for advanced nuclear plant studies (ANPS) in support of the Columbia-class submarine program for the Navy.
Previous report
COMBAT SYSTEMS
Previous report
•$885 for various munitions and ordnance. These contracts have a maximum potential value of $1.7 billion.
Previous 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.
Previous report
•$395 from the Army for the production of 155mm propelling bag charges.
Previous report
•$190 from the Army to produce Iron Fist Active Protection System kits.
Previous report
•$180 from the Army to produce Stryker Sgt. Stout vehicles.
Previous 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.
Previous report
TECHNOLOGIES
Previous report
•$840 for several key contracts for classified customers. These contracts have a maximum potential value of $1 billion.
Previous 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.
Previous 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.
Previous report
•$185 from the U.S. Department of State (DoS) to manage its global technical security supply chain.
Previous report
•$135 to provide equipment and tools to the National Oceanic Atmospheric Administration (NOAA) to augment its High-Performance Computing Systems.
Previous report
•$130 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services.
Previous 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.
Previous report
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.
Reworded paragraphs (30)
Previous 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.
Current wording
Aircraft manufacturing revenue increased in the first quarter of 2025 due primarily to 13 G700 deliveries, which entered into service in the second quarter of 2024. Aircraft services revenue was up in the first quarter of 2025 due primarily 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 third quarter and first nine months of 2024 consisted of the following:
Current wording
The increase in the segment’s operating earnings in the first quarter of 2025 consisted of the following:
Previous 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.
Current wording
Aircraft manufacturing operating earnings increased in the first quarter of 2025 due primarily to the number and mix of aircraft deliveries. G&A/other expenses decreased in the first quarter of 2025 due to reduced R&D efforts after the completion of the G700 certification process in 2024. In total, the Aerospace segment’s operating margin increased 210 basis points in the first quarter of 2025 compared with the prior-year period.
Previous wording
The increase in the Marine Systems segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Current wording
The increase in the Marine Systems segment’s revenue in the first quarter of 2025 consisted of the following:
Previous 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.
Current wording
Revenue from U.S. Navy ship construction was up in the first quarter of 2025 due primarily to increased volume on the Virginia-class and Columbia-class submarine programs. Operating margin for the segment remained consistent with the prior period.
Previous wording
The change in the Combat Systems segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Current wording
The increase in the Combat Systems segment’s revenue in the first quarter of 2025 consisted of the following:
Previous wording
The increase in the Technologies segment’s revenue in the third quarter and first nine months of 2024 consisted of the following:
Current wording
The increase in the Technologies segment’s revenue in the first quarter of 2025 consisted of the following:
Previous 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.
Current wording
The Technologies segment’s revenue was up in the first quarter of 2025 due to higher volume of IT services. Overall, the Technologies segment’s operating margin increased 40 basis points in the first quarter of 2025 due to strong operating performance.
Previous 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.
Current wording
Corporate operating costs totaled $33 in the first quarter of 2025 compared with $28 in the first quarter of 2024 and consisted primarily of equity-based compensation expense.
Previous wording
The increase in product revenue in the third quarter and first nine months of 2024 consisted of the following:
Current wording
The increase in product revenue in the first quarter of 2025 consisted of the following:
Previous 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.
Current wording
Aircraft manufacturing revenue increased in the first quarter of 2025 due to G700 deliveries. Ship construction revenue increased due primarily to higher volume on the Virginia-class and Columbia-class submarine programs. Weapons systems and munitions revenue increased in the first quarter of 2025 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 third quarter and first nine months of 2024 consisted of the following:
Current wording
The increase in service revenue in the first quarter of 2025 consisted of the following:
Previous 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.
Current wording
Increased IT services volume drove the higher service revenue in the first quarter of 2025. 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 5.5% 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.
Current wording
As a percentage of revenue, G&A expenses decreased to 5.1% in the first three months of 2025 compared with 5.8% in the first three months of 2024 due to growth in revenue.
Previous 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.
Current wording
Net other income was $21 in the first three months of 2025 compared with $14 in the first three months of 2024, and represents primarily the non-service components of pension and other post-retirement benefits.
Previous 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.
Current wording
Net interest expense was $89 in the first three months of 2025 compared with $82 in the prior-year period. See Note H to the unaudited Consolidated Financial Statements in Part I, Item 1, for additional information regarding our debt obligations, including interest rates.
Previous 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.
Current wording
Our total backlog, including funded and unfunded portions, was $88.7 billion at the end of the first quarter of 2025 compared with $90.6 billion on December 31, 2024. 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 $141.3 billion on March 30, 2025.
Previous 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:
Current wording
The following table details the backlog and estimated potential contract value of each segment at the end of the first quarter of 2025 and fourth quarter 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 third quarter of 2024 with backlog of $19.8 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 first quarter of 2025 with backlog of $19 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 September 29, 2024, estimated potential contract value in the Aerospace segment was $254.
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 March 30, 2025, estimated potential contract value in the Aerospace segment was $1.1 billion.
Previous wording
We place a strong emphasis on cash flow generation, which is underpinned by an operating discipline focused on cost control and working capital management. This emphasis gives us the flexibility for prudent capital deployment, while allowing us to step down debt over time, and preserves a strong balance sheet for future opportunities.
Current wording
We place a strong emphasis on cash flow generation, which is underpinned by an operating discipline focused on cost control and working capital management. This emphasis gives us the flexibility for prudent capital deployment, while allowing us to maintain an appropriate debt level, and preserves a strong balance sheet for future opportunities.
Previous 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:
Current wording
We ended the first quarter of 2025 with a cash and equivalents balance of $1.2 billion compared with $1.7 billion at the end of 2024. Following is a discussion of our major operating, investing and financing activities in the first three months of 2025 and 2024, as classified on the Consolidated Statement of Cash Flows in Part I, Item 1:
Previous 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
Current wording
Cash used by operating activities was $148 million in the first three months of 2025 compared with $278 in the same period in 2024. The primary driver of cash flows in both periods was net earnings. Cash flows in both periods were affected negatively by growth in operating working capital, particularly driven by timing in our Aerospace and Combat Systems segments. These timing items were anticipated and are expected to reverse, resulting in positive cash flows from operating activities for the full year.
Previous 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.
Current wording
Cash used by investing activities was $130 in the first three months of 2025 compared with $182 in the same period in 2024. 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 $142 in the first three months of 2025 compared with $159 in the same period in 2024.
Previous 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.
Current wording
Cash used by financing activities was $175 million in the first three months of 2025 compared with $416 in the same period in 2024. 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 $1.1 billion in the first nine months of 2024 and 2023.
Current wording
On March 5, 2025, our board of directors (Board) declared an increased quarterly dividend of $1.50 per share, the 28th consecutive annual increase. Previously, the Board had increased the quarterly dividend to $1.42 per share in March 2024. Cash dividends paid were $383 in the first three months of 2025 compared with $361 in the same period in 2024.
Previous 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.
Current wording
We paid $600 and $105 in the first three months of 2025 and 2024, respectively, to repurchase our outstanding shares. On March 30, 2025, 6.9 million shares remained authorized by our Board for repurchase, representing 2.6% 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. 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
In late March 2025, we repaid fixed-rate notes of $750 prior to their scheduled maturity on April 1, 2025. Fixed-rate notes of $750 mature in May 2025. We currently plan to repay these notes with proceeds from commercial paper or long-term debt issuances. 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.
Previous wording
On September 29, 2024, we had no commercial paper outstanding, but we maintain the ability to access the commercial paper market in the future. Separately, we have a $4 billion committed bank credit facility for general corporate purposes and working capital needs and to support our commercial paper issuances. We also have an effective shelf registration on file with the Securities and Exchange Commission (SEC) that allows us to access the debt markets.
Current wording
In the first three months of 2025, we received net proceeds of $1.6 billion from the issuance of commercial paper, which remained outstanding on March 30, 2025. Separately, we have $5 billion in committed bank credit facilities for general corporate purposes and working capital needs and to support our commercial paper issuances. We also have an effective shelf registration on file with the Securities and Exchange Commission (SEC) that allows us to access the debt markets.
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 decreased our operating earnings (and diluted earnings per share) by $12 ($0.03) for the three-month period ended September 29, 2024, and increased our operating earnings (and diluted earnings per share) by $101 ($0.29) for the nine-month period ended September 29, 2024, and $11 ($0.03) and $98 ($0.28) for the three- and nine-month periods ended October 1, 2023, respectively. No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three- and nine-month periods ended September 29, 2024, or October 1, 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 $31 ($0.09) and $36 ($0.10) for the three-month periods ended March 30, 2025, and March 31, 2024, respectively. No adjustment on any one contract was material to the unaudited Consolidated Financial Statements for the three-month periods ended March 30, 2025, or March 31, 2024.