Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

General Dynamics Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Products	23,130)	20,149)	19,016)	19,885)	20,280)
Services	16,220)	16,044)	11,957)	11,468)	11,189)
Revenue	39,350)	36,193)	30,973)	31,353)	31,469)
Products	(18,569)	(15,894)	(14,799)	(15,443)	(15,871)
Services	(13,722)	(13,584)	(9,987)	(9,661)	(9,468)
Cost of revenue	(32,291)	(29,478)	(24,786)	(25,104)	(25,339)
Gross profit	7,059)	6,715)	6,187)	6,249)	6,130)
General and administrative (G&A)	(2,411)	(2,258)	(2,010)	(1,940)	(1,952)
Operating earnings	4,648)	4,457)	4,177)	4,309)	4,178)
Interest expense	(472)	(374)	(117)	(99)	(98)
Interest income	12)	18)	14)	8)	15)
Interest, net	(460)	(356)	(103)	(91)	(83)
Other, net	14)	(16)	3)	13)	7)
Earnings from continuing operations before income tax	4,202)	4,085)	4,077)	4,231)	4,102)
Provision for income tax, net	(718)	(727)	(1,165)	(1,169)	(1,137)
Earnings from continuing operations	3,484)	3,358)	2,912)	3,062)	2,965)
Discontinued operations, net of tax	—)	(13)	—)	(107)	—)
Net earnings	3,484)	3,345)	2,912)	2,955)	2,965)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Revenue Trends: Total revenue exhibited a gradual decline from 2015 to 2017, decreasing from approximately $31.5 billion to about $31.0 billion. This was followed by a notable increase in 2018 and 2019, reaching nearly $39.4 billion in the final year.; Product revenue decreased steadily between 2015 and 2017, moving from approximately $20.3 billion down to $19.0 billion, before rebounding to $23.1 billion in 2019.; Service revenue showed consistent growth, increasing from around $11.2 billion in 2015 to approximately $16.2 billion by 2019, with a significant jump occurring between 2017 and 2018.
Cost of Revenue and Gross Profit: The cost of revenue remained relatively stable during the initial three years, with a slight decrease from about $25.3 billion in 2015 to $24.8 billion in 2017. Subsequently, it rose significantly in 2018 and 2019 to nearly $32.3 billion, closely mirroring the revenue increase.; Gross profit showed stability between 2015 and 2017, fluctuating within a narrow range around $6.1 billion to $6.2 billion, before increasing moderately to approximately $7.1 billion by 2019.
Operating Earnings and Expenses: Operating earnings followed a stable trend from 2015 through 2017, ranging between $4.2 billion and $4.3 billion. This metric rose moderately in 2018 and 2019, reaching about $4.6 billion in the last year.; General and administrative expenses increased steadily throughout the period, from approximately $1.95 billion in 2015 to about $2.4 billion in 2019, indicating growth in operating overhead.
Interest Income and Expense: Interest expense remained relatively low from 2015 to 2017, around $100 million annually, but increased sharply thereafter, reaching nearly $472 million by 2019.; Interest income was modest and slightly fluctuated without a clear trend, generally remaining below $20 million annually.; The net interest expense mirrored the increase in interest expense, rising significantly in the latter years to $460 million in 2019.
Other Income and Earnings Before Tax: Other net income was minimal and volatile, oscillating between small positive and negative amounts, with a notable dip in 2018.; Earnings from continuing operations before income tax remained consistent across the years, fluctuating narrowly around $4.1 billion to $4.2 billion.
Income Tax and Net Earnings: The provision for income tax decreased notably in 2018 and 2019 compared to previous years, dropping from approximately $1.1 billion down to around $718 million.; Earnings from continuing operations increased gradually from $3.0 billion in 2015 to about $3.5 billion in 2019, reflecting improved profitability despite fluctuations in revenue and expenses.; Net earnings followed a similar pattern to earnings from continuing operations, with a small dip in 2016 likely influenced by discontinued operations, followed by growth reaching $3.5 billion in 2019.
Discontinued Operations: Discontinued operations had a minor negative impact in 2016 and 2018, with losses of $107 million and $13 million respectively, but were otherwise absent or negligible in other years.

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General Dynamics Corp. (NYSE:GD)

Income Statement