Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Lockheed Martin Corp., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal income tax expense	1,574)	1,618)	1,325)	1,292)	698)
Foreign income tax expense	102)	87)	93)	50)	91)
Current	1,676)	1,705)	1,418)	1,342)	789)
Federal income tax expense (benefit)	(503)	(776)	(194)	21)	235)
Foreign income tax expense (benefit)	5)	19)	11)	(16)	(13)
Deferred	(498)	(757)	(183)	5)	222)
Income tax expense	1,178)	948)	1,235)	1,347)	1,011)

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
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Lockheed Martin Corp. current increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Lockheed Martin Corp. deferred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.
Income tax expense	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lockheed Martin Corp. income tax expense decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Lockheed Martin Corp., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Research and development tax credit	-2.80%	-2.70%	-1.60%	-1.20%	-2.00%
Foreign derived intangible income deduction	-2.30%	-2.60%	-2.30%	-2.10%	-1.70%
Tax deductible dividends	-0.90%	-1.00%	-0.90%	-0.80%	-0.90%
Excess tax benefits for share-based payment awards	-0.30%	-0.60%	-0.40%	-0.60%	-0.90%
Tax accounting method change	0.00%	0.00%	0.00%	0.00%	-0.20%
Other, net	-0.20%	0.10%	0.60%	0.10%	-1.30%
Effective tax rate	14.50%	14.20%	16.40%	16.40%	14.00%

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
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Lockheed Martin Corp. effective tax rate decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

Lockheed Martin Corp., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Pensions	1,485)	1,340)	1,985)	2,994)	3,057)
Accrued compensation and benefits	731)	718)	957)	926)	659)
Contract accounting methods	508)	510)	470)	392)	349)
Research and development expenditures	1,251)	2,268)	—)	—)	—)
Foreign company operating losses and credits	19)	20)	40)	51)	49)
Other	487)	471)	473)	509)	416)
Deferred tax assets, gross	4,481)	5,327)	3,925)	4,872)	4,530)
Valuation allowance	(32)	(31)	(15)	(13)	(28)
Deferred tax assets, net	4,449)	5,296)	3,910)	4,859)	4,502)
Goodwill and intangible assets	(494)	(449)	(401)	(363)	(330)
Property, plant and equipment	(415)	(503)	(518)	(481)	(340)
Other	(597)	(605)	(709)	(547)	(525)
Deferred tax liabilities	(1,506)	(1,557)	(1,628)	(1,391)	(1,195)
Net deferred tax assets (liabilities)	2,943)	3,739)	2,282)	3,468)	3,307)

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
Deferred tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lockheed Martin Corp. deferred tax assets, gross increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Lockheed Martin Corp. deferred tax assets, net increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Lockheed Martin Corp. net deferred tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Lockheed Martin Corp., deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets	2,953)	3,744)	2,290)	3,475)	3,319)
	Deferred tax liabilities (included in Other noncurrent liabilities)	10)	5)	8)	7)	12)

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
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Lockheed Martin Corp. deferred tax assets increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred tax liabilities (included in Other noncurrent liabilities)	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Lockheed Martin Corp. deferred tax liabilities (included in Other noncurrent liabilities) decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

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: Noncurrent deferred tax assets, net	2,953)	3,744)	2,290)	3,475)	3,319)
Total assets (adjusted)	49,503)	49,136)	48,583)	47,235)	44,209)
Adjustment to Total Liabilities
Total liabilities (as reported)	45,621)	43,614)	39,914)	44,672)	44,357)
Less: Noncurrent deferred tax liabilities, net	10)	5)	8)	7)	12)
Total liabilities (adjusted)	45,611)	43,609)	39,906)	44,665)	44,345)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	6,835)	9,266)	10,959)	6,015)	3,127)
Less: Net deferred tax assets (liabilities)	2,943)	3,739)	2,282)	3,468)	3,307)
Stockholders’ equity (adjusted)	3,892)	5,527)	8,677)	2,547)	(180)
Adjustment to Net Earnings
Net earnings (as reported)	6,920)	5,732)	6,315)	6,833)	6,230)
Add: Deferred income tax expense (benefit)	(498)	(757)	(183)	5)	222)
Net earnings (adjusted)	6,422)	4,975)	6,132)	6,838)	6,452)

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
Net Profit Margin
Reported net profit margin	10.24%	8.69%	9.42%	10.45%	10.42%
Adjusted net profit margin	9.50%	7.54%	9.15%	10.46%	10.79%
Total Asset Turnover
Reported total asset turnover	1.29	1.25	1.32	1.29	1.26
Adjusted total asset turnover	1.36	1.34	1.38	1.38	1.35
Financial Leverage
Reported financial leverage	7.67	5.71	4.64	8.43	15.20
Adjusted financial leverage	12.72	8.89	5.60	18.55	—
Return on Equity (ROE)
Reported ROE	101.24%	61.86%	57.62%	113.60%	199.23%
Adjusted ROE	165.01%	90.01%	70.67%	268.47%	—
Return on Assets (ROA)
Reported ROA	13.19%	10.84%	12.41%	13.47%	13.11%
Adjusted ROA	12.97%	10.12%	12.62%	14.48%	14.59%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lockheed Martin Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
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 financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Lockheed Martin Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Lockheed Martin Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted 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 earnings	6,920)	5,732)	6,315)	6,833)	6,230)
Net sales	67,571)	65,984)	67,044)	65,398)	59,812)
Profitability Ratio
Net profit margin¹	10.24%	8.69%	9.42%	10.45%	10.42%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	6,422)	4,975)	6,132)	6,838)	6,452)
Net sales	67,571)	65,984)	67,044)	65,398)	59,812)
Profitability Ratio
Adjusted net profit margin²	9.50%	7.54%	9.15%	10.46%	10.79%

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 Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 6,920 ÷ 67,571 = 10.24%

² Adjusted net profit margin = 100 × Adjusted net earnings ÷ Net sales
= 100 × 6,422 ÷ 67,571 = 9.50%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Lockheed Martin Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 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)
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 Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	67,571)	65,984)	67,044)	65,398)	59,812)
Adjusted total assets	49,503)	49,136)	48,583)	47,235)	44,209)
Activity Ratio
Adjusted total asset turnover²	1.36	1.34	1.38	1.38	1.35

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 ÷ 49,503 = 1.36

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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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	49,503)	49,136)	48,583)	47,235)	44,209)
Adjusted stockholders’ equity	3,892)	5,527)	8,677)	2,547)	(180)
Solvency Ratio
Adjusted financial leverage²	12.72	8.89	5.60	18.55	—

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
= 49,503 ÷ 3,892 = 12.72

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Lockheed Martin Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	6,422)	4,975)	6,132)	6,838)	6,452)
Adjusted stockholders’ equity	3,892)	5,527)	8,677)	2,547)	(180)
Profitability Ratio
Adjusted ROE²	165.01%	90.01%	70.67%	268.47%	—

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 × Adjusted net earnings ÷ Adjusted stockholders’ equity
= 100 × 6,422 ÷ 3,892 = 165.01%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Lockheed Martin Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net earnings	6,422)	4,975)	6,132)	6,838)	6,452)
Adjusted total assets	49,503)	49,136)	48,583)	47,235)	44,209)
Profitability Ratio
Adjusted ROA²	12.97%	10.12%	12.62%	14.48%	14.59%

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 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 6,422 ÷ 49,503 = 12.97%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)