Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Lockheed Martin Corp., balance sheet: goodwill and intangible assets

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Goodwill	10,799)	10,780)	10,813)	10,806)	10,604)
Customer programs	3,186)	3,186)	3,184)	3,184)	3,184)
Customer relationships	94)	94)	120)	366)	344)
Other	72)	72)	76)	85)	53)
Finite-lived intangibles, gross carrying amount	3,352)	3,352)	3,380)	3,635)	3,581)
Accumulated amortization	(2,027)	(1,780)	(1,561)	(1,510)	(1,255)
Finite-lived intangibles, net carrying amount	1,325)	1,572)	1,819)	2,125)	2,326)
Trademark	887)	887)	887)	887)	887)
Indefinite-lived intangibles	887)	887)	887)	887)	887)
Acquired intangibles	2,212)	2,459)	2,706)	3,012)	3,213)
Goodwill and acquired intangibles	13,011)	13,239)	13,519)	13,818)	13,817)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Lockheed Martin Corp. goodwill decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Acquired intangibles	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Lockheed Martin Corp. acquired intangibles decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and acquired intangibles	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Lockheed Martin Corp. goodwill and acquired intangibles decreased from 2021 to 2022 and from 2022 to 2023.

Lockheed Martin Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	52,456)	52,880)	50,873)	50,710)	47,528)
Less: Goodwill	10,799)	10,780)	10,813)	10,806)	10,604)
Total assets (adjusted)	41,657)	42,100)	40,060)	39,904)	36,924)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,835)	9,266)	10,959)	6,015)	3,127)
Less: Goodwill	10,799)	10,780)	10,813)	10,806)	10,604)
Stockholders’ equity (adjusted)	(3,964)	(1,514)	146)	(4,791)	(7,477)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Lockheed Martin Corp., Financial Data: Reported vs. Adjusted

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Lockheed Martin Corp., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	1.29	1.25	1.32	1.29	1.26
Adjusted total asset turnover	1.62	1.57	1.67	1.64	1.62
Financial Leverage
Reported financial leverage	7.67	5.71	4.64	8.43	15.20
Adjusted financial leverage	—	—	274.38	—	—
Return on Equity (ROE)
Reported ROE	101.24%	61.86%	57.62%	113.60%	199.23%
Adjusted ROE	—	—	4,325.34%	—	—
Return on Assets (ROA)
Reported ROA	13.19%	10.84%	12.41%	13.47%	13.11%
Adjusted ROA	16.61%	13.62%	15.76%	17.12%	16.87%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lockheed Martin Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Lockheed Martin Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Lockheed Martin Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	67,571)	65,984)	67,044)	65,398)	59,812)
Total assets	52,456)	52,880)	50,873)	50,710)	47,528)
Activity Ratio
Total asset turnover¹	1.29	1.25	1.32	1.29	1.26
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	67,571)	65,984)	67,044)	65,398)	59,812)
Adjusted total assets	41,657)	42,100)	40,060)	39,904)	36,924)
Activity Ratio
Adjusted total asset turnover²	1.62	1.57	1.67	1.64	1.62

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 67,571 ÷ 52,456 = 1.29

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 67,571 ÷ 41,657 = 1.62

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Lockheed Martin Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	52,456)	52,880)	50,873)	50,710)	47,528)
Stockholders’ equity	6,835)	9,266)	10,959)	6,015)	3,127)
Solvency Ratio
Financial leverage¹	7.67	5.71	4.64	8.43	15.20
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	41,657)	42,100)	40,060)	39,904)	36,924)
Adjusted stockholders’ equity	(3,964)	(1,514)	146)	(4,791)	(7,477)
Solvency Ratio
Adjusted financial leverage²	—	—	274.38	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 52,456 ÷ 6,835 = 7.67

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 41,657 ÷ -3,964 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	6,920)	5,732)	6,315)	6,833)	6,230)
Stockholders’ equity	6,835)	9,266)	10,959)	6,015)	3,127)
Profitability Ratio
ROE¹	101.24%	61.86%	57.62%	113.60%	199.23%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	6,920)	5,732)	6,315)	6,833)	6,230)
Adjusted stockholders’ equity	(3,964)	(1,514)	146)	(4,791)	(7,477)
Profitability Ratio
Adjusted ROE²	—	—	4,325.34%	—	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Net earnings ÷ Stockholders’ equity
= 100 × 6,920 ÷ 6,835 = 101.24%

² Adjusted ROE = 100 × Net earnings ÷ Adjusted stockholders’ equity
= 100 × 6,920 ÷ -3,964 = —

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	6,920)	5,732)	6,315)	6,833)	6,230)
Total assets	52,456)	52,880)	50,873)	50,710)	47,528)
Profitability Ratio
ROA¹	13.19%	10.84%	12.41%	13.47%	13.11%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	6,920)	5,732)	6,315)	6,833)	6,230)
Adjusted total assets	41,657)	42,100)	40,060)	39,904)	36,924)
Profitability Ratio
Adjusted ROA²	16.61%	13.62%	15.76%	17.12%	16.87%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 6,920 ÷ 52,456 = 13.19%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 6,920 ÷ 41,657 = 16.61%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Lockheed Martin Corp. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Lockheed Martin Corp. (NYSE:LMT)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Lockheed Martin Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Lockheed Martin Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)