Microsoft Excel LibreOffice Calc

Lockheed Martin Corp. (LMT)


Analysis of Inventory

High level of difficulty


Accounting Policy on Inventory

Lockheed Martin records inventories at the lower of cost or estimated net realizable value. If events or changes in circumstances indicate that the utility of Lockheed Martin’s inventories have diminished through damage, deterioration, obsolescence, changes in price or other causes, a loss is recognized in the period in which it occurs. Lockheed Martin capitalizes labor, material, subcontractor and overhead costs as work-in-process for contracts where control has not yet passed to the customer. In addition, Lockheed Martin capitalizes costs incurred to fulfill a contract in advance of contract award in inventories as work-in-process if Lockheed Martin determines that contract award is probable. Lockheed Martin determines the costs of other product and supply inventories by using the first-in first-out or average cost methods.

Source: 10-K (filing date: 2019-02-08).


Inventory Disclosure

Lockheed Martin Corp., balance sheet: inventory

US$ in millions

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Materials, spares and supplies 446  —  —  —  — 
Work-in-process 2,161  —  —  —  — 
Finished goods 390  —  —  —  — 
Other inventories —  8,455  9,416  9,997  7,583 
Inventories 2,997  8,455  9,416  9,997  7,583 
Less: Customer advances and progress payments —  (3,968) (4,746) (5,035) (4,701)
Inventories, net 2,997  4,487  4,670  4,962  2,882 

Based on: 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-09).

Item Description The company
Inventories, net Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer. Lockheed Martin Corp.’s inventories, net declined from 2016 to 2017 and from 2017 to 2018.