EXHIBIT A

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Three Months Ended

Variance

July 1, 2018 (a)

July 2, 2017 (b)

$

%

Revenue

$

9,186

$

7,675

$

1,511

19.7

%

Operating costs and expenses

(8,098)

(6,608)

(1,490)

Operating earnings

1,088

1,067

21

2.0

%

Interest, net

(103)

(24)

(79)

Other, net

(15)

(11)

(4)

Earnings before income tax

970

1,032

(62)

(6.0)

%

Provision for income tax, net

(184)

(283)

99

Net earnings

$

786

$

749

$

37

4.9

%

Earnings per share—basic

$

2.65

$

2.50

$

0.15

6.0

%

Basic weighted average shares outstanding

296.2

299.8

Earnings per share—diluted

$

2.62

$

2.45

$

0.17

6.9

%

Diluted weighted average shares outstanding

300.1

305.3

(a)

2018 results include the unfavorable impact of one-time charges of approximately $70 associated with costs to complete the acquisition of CSRA Inc. In the table above, approximately $45 of compensation-related costs was reported in operating costs and expenses, and approximately $25 of transaction costs was reported in other, net.

(b)

Prior-period information has been restated for the adoption of Accounting Standards Update (ASU) 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which we adopted on January 1, 2018.

EXHIBIT B

CONSOLIDATED STATEMENT OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Six Months Ended

Variance

July 1, 2018 (a)

July 2, 2017 (b)

$

%

Revenue

$

16,721

$

15,116

$

1,605

10.6

%

Operating costs and expenses

(14,625)

(13,003)

(1,622)

Operating earnings

2,096

2,113

(17)

(0.8)

%

Interest, net

(130)

(49)

(81)

Other, net

(36)

(22)

(14)

Earnings before income tax

1,930

2,042

(112)

(5.5)

%

Provision for income tax, net

(345)

(530)

185

Net earnings

$

1,585

$

1,512

$

73

4.8

%

Earnings per share—basic

$

5.35

$

5.03

$

0.32

6.4

%

Basic weighted average shares outstanding

296.3

300.8

Earnings per share—diluted

$

5.27

$

4.94

$

0.33

6.7

%

Diluted weighted average shares outstanding

300.6

306.3

(a)

2018 results include the unfavorable impact of one-time charges of approximately $75 associated with costs to complete the acquisition of CSRA Inc. In the table above, approximately $45 of compensation-related costs was reported in operating costs and expenses, and approximately $30 of transaction costs was reported in other, net.

(b)

Prior-period information has been restated for the adoption of ASU 2017-07, which we adopted on January 1, 2018.

EXHIBIT C

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Three Months Ended

Variance

July 1, 2018 (a)

July 2, 2017 (b)

$

%

Revenue:

Aerospace

$

1,895

$

2,078

$

(183)

(8.8)

%

Combat Systems

1,534

1,414

120

8.5

%

Information Technology

2,442

1,052

1,390

132.1

%

Mission Systems

1,147

1,052

95

9.0

%

Marine Systems

2,168

2,079

89

4.3

%

Total

$

9,186

$

7,675

$

1,511

19.7

%

Operating earnings:

Aerospace

$

386

$

421

$

(35)

(8.3)

%

Combat Systems

236

225

11

4.9

%

Information Technology

156

87

69

79.3

%

Mission Systems

153

153

—

—

%

Marine Systems

195

178

17

9.6

%

Corporate

(38)

3

(41)

(1,366.7)

%

Total

$

1,088

$

1,067

$

21

2.0

%

Operating margin:

Aerospace

20.4

%

20.3

%

Combat Systems

15.4

%

15.9

%

Information Technology

6.4

%

8.3

%

Mission Systems

13.3

%

14.5

%

Marine Systems

9.0

%

8.6

%

Total

11.8

%

13.9

%

(a)

2018 results include the unfavorable impact of approximately $45 of compensation-related one-time charges associated with costs to complete the acquisition of CSRA Inc. This amount was reported as a reduction of Corporate operating earnings in the table above.

(b)

Prior-period information has been restated for the adoption of ASU 2017-07, which we adopted on January 1, 2018.

EXHIBIT D

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

Variance

July 1, 2018 (a)

July 2, 2017 (b)

$

%

Revenue:

Aerospace

$

3,720

$

4,152

$

(432)

(10.4)

%

Combat Systems

2,974

2,701

273

10.1

%

Information Technology

3,580

2,110

1,470

69.7

%

Mission Systems

2,245

2,140

105

4.9

%

Marine Systems

4,202

4,013

189

4.7

%

Total

$

16,721

$

15,116

$

1,605

10.6

%

Operating earnings:

Aerospace

$

732

$

860

$

(128)

(14.9)

%

Combat Systems

460

430

30

7.0

%

Information Technology

257

177

80

45.2

%

Mission Systems

299

299

—

—

%

Marine Systems

379

339

40

11.8

%

Corporate

(31)

8

(39)

(487.5)

%

Total

$

2,096

$

2,113

$

(17)

(0.8)

%

Operating margin:

Aerospace

19.7

%

20.7

%

Combat Systems

15.5

%

15.9

%

Information Technology

7.2

%

8.4

%

Mission Systems

13.3

%

14.0

%

Marine Systems

9.0

%

8.4

%

Total

12.5

%

14.0

%

(a)

2018 results include the unfavorable impact of approximately $45 of compensation-related one-time charges associated with costs to complete the acquisition of CSRA Inc. This amount was reported as a reduction of Corporate operating earnings in the table above.

(b)

Prior-period information has been restated for the adoption of ASU 2017-07, which we adopted on January 1, 2018.

EXHIBIT E

CONSOLIDATED BALANCE SHEET

DOLLARS IN MILLIONS

(Unaudited)

July 1, 2018

December 31, 2017

ASSETS

Current assets:

Cash and equivalents

$

1,862

$

2,983

Accounts receivable

3,874

3,617

Unbilled receivables

7,125

5,240

Inventories

5,890

5,303

Other current assets

1,076

1,185

Total current assets

19,827

18,328

Noncurrent assets:

Property, plant and equipment, net

4,179

3,517

Intangible assets, net

2,738

702

Goodwill

19,738

11,914

Other assets

670

585

Total noncurrent assets

27,325

16,718

Total assets

$

47,152

$

35,046

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term debt and current portion of long-term debt

$

2,881

$

2

Accounts payable

3,032

3,207

Customer advances and deposits

7,219

6,992

Other current liabilities

3,441

2,898

Total current liabilities

16,573

13,099

Noncurrent liabilities:

Long-term debt

11,397

3,980

Other liabilities

7,188

6,532

Total noncurrent liabilities

18,585

10,512

Shareholders' equity:

Common stock

482

482

Surplus

2,865

2,872

Retained earnings

28,115

26,444

Treasury stock

(15,910)

(15,543)

Accumulated other comprehensive loss

(3,558)

(2,820)

Total shareholders' equity

11,994

11,435

Total liabilities and shareholders' equity

$

47,152

$

35,046

EXHIBIT F

CONSOLIDATED STATEMENT OF CASH FLOWS - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

July 1, 2018

July 2, 2017

Cash flows from operating activities—continuing operations:

Net earnings

$

1,585

$

1,512

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation of property, plant and equipment

223

182

Amortization of intangible assets

104

38

Equity-based compensation expense

71

52

Deferred income tax provision

(6)

93

(Increase) decrease in assets, net of effects of business acquisitions:

Accounts receivable

344

(291)

Unbilled receivables

(1,030)

(815)

Inventories

(542)

(14)

Increase (decrease) in liabilities, net of effects of business acquisitions:

Accounts payable

(324)

82

Customer advances and deposits

(159)

(29)

Other, net

25

200

Net cash provided by operating activities

291

1,010

Cash flows from investing activities:

Business acquisitions, net of cash acquired

(10,039)

(89)

Capital expenditures

(279)

(153)

Other, net

74

47

Net cash used by investing activities

(10,244)

(195)

Cash flows from financing activities:

Proceeds from fixed-rate notes

6,461

—

Proceeds from commercial paper, net

2,786

(1)

Proceeds from floating-rate notes

1,000

—

Dividends paid

(526)

(483)

Repayment of CSRA accounts receivable purchase agreement

(450)

—

Purchases of common stock

(436)

(901)

Other, net

3

109

Net cash provided (used) by financing activities

8,838

(1,276)

Net cash used by discontinued operations

(6)

(17)

Net decrease in cash and equivalents

(1,121)

(478)

Cash and equivalents at beginning of period

2,983

2,334

Cash and equivalents at end of period

$

1,862

$

1,856

EXHIBIT G

PRELIMINARY FINANCIAL INFORMATION - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

2018

2017

Second Quarter

Second Quarter

Other Financial Information:

Debt-to-equity (a)

119.0

%

36.3

%

Debt-to-capital (b)

54.3

%

26.6

%

Book value per share (c)

$

40.48

$

36.57

Income tax payments, net

$

159

$

332

Company-sponsored research and development (d)

$

90

$

134

Shares outstanding

296,281,432

299,461,802

Non-GAAP Financial Measure:

2018

2017

Second Quarter

Six Months

Second Quarter

Six Months

Free cash flow from operations:

Net cash provided by operating activities

$

787

$

291

$

477

$

1,010

Capital expenditures

(175)

(279)

(91)

(153)

Free cash flow from operations (e)

$

612

$

12

$

386

$

857

(a)

Debt-to-equity ratio is calculated as total debt divided by total equity as of the end of the period.

(b)

Debt-to-capital ratio is calculated as total debt divided by the sum of total debt plus total equity as of the end of the period.

(c)

Book value per share is calculated as total equity divided by total outstanding shares as of the end of the period.

(d)

Includes independent research and development and Aerospace product-development costs.

(e)

We believe free cash flow from operations is a useful measure for investors because it portrays our ability to generate cash from our businesses for purposes such as repaying maturing debt, funding business acquisitions, repurchasing our common stock and paying dividends. We use free cash flow from operations to assess the quality of our earnings and as a key performance measure in evaluating management. The most directly comparable GAAP measure to free cash flow from operations is net cash provided by operating activities.

EXHIBIT H

BACKLOG - (UNAUDITED)

DOLLARS IN MILLIONS

Funded

Unfunded

Total
Backlog

Estimated
Potential
Contract Value*

Total Potential
Contract
Value

Second Quarter 2018:

Aerospace

$

12,187

$

157

$

12,344

$

2,282

$

14,626

Combat Systems

16,646

376

17,022

2,840

19,862

Information Technology

4,633

4,576

9,209

18,931

28,140

Mission Systems

4,636

645

5,281

4,287

9,568

Marine Systems

17,310

5,124

22,434

4,333

26,767

Total

$

55,412

$

10,878

$

66,290

$

32,673

$

98,963

First Quarter 2018:

Aerospace

$

11,898

$

158

$

12,056

$

1,868

$

13,924

Combat Systems

17,126

378

17,504

3,549

21,053

Information Technology

2,190

1,275

3,465

11,367

14,832

Mission Systems

4,549

800

5,349

4,420

9,769

Marine Systems

18,310

5,458

23,768

4,271

28,039

Total

$

54,073

$

8,069

$

62,142

$

25,475

$

87,617

Second Quarter 2017:

Aerospace

$

12,116

$

120

$

12,236

$

1,911

$

14,147

Combat Systems

16,749

281

17,030

4,845

21,875

Information Technology

2,200

1,442

3,642

9,541

13,183

Mission Systems

4,609

643

5,252

4,848

10,100

Marine Systems

16,033

4,374

20,407

3,282

23,689

Total

$

51,707

$

6,860

$

58,567

$

24,427

$

82,994

*

The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options associated with existing firm contracts, including options to purchase new aircraft and long-term aircraft services agreements. We recognize options in backlog when the customer exercises the option and establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value.

EXHIBIT I

SECOND QUARTER 2018 SIGNIFICANT ORDERS - (UNAUDITED)

DOLLARS IN MILLIONS

We received the following significant contract awards during the second quarter of 2018:

Combat Systems:

•

$440 from the U.S. Army to upgrade Abrams tanks to the M1A2 System Enhancement Package Version 3 configuration.

•

$260 from the Army to upgrade Stryker flat-bottom vehicles to the Stryker A1 configuration.

•

$150 from the Army for the production of Hydra-70 rockets.

•

$35 for the production of Army Ground Mobility Vehicles (AGMVs) and associated kits.

•

$25 from the Army for munitions demilitarization.

Information Technology:

•

$615 from the Centers for Medicare & Medicaid Services for contact-center services.

•

$375 from the New York State Department of Health to provide engineering and technical improvements to the state's health benefits exchange.

•

$125 from the U.S. Department of State to provide supply chain management services.

•

$85 to provide IT hardware, software, and network and communications support services to the U.S. European Command (USEUCOM) and U.S. Africa Command (USAFRICOM).

•

$45 to provide support for live and virtual operations under the Warfighter Field Operations Customer Support (FOCUS) program.

Mission Systems:

•

$85 from the U.S. Army for computing and communications equipment under the Common Hardware Systems-4 program.

•

$60 to provide program management and engineering, technical, and logistics support for the Army's mobile communications network.

•

$45 to support the engineering and manufacturing of the Navy's Air and Missile Defense Radar (AMDR) program.

•

$40 from the U.S. Coast Guard to provide system sustainment support for the Rescue 21 program.

•

$30 from the U.S. Air Force for the Battlefield Information Collection and Exploitation System (BICES) program to provide information sharing support to coalition operations.

Marine Systems:

•

$225 from the U.S. Navy for long-lead materials for Block V Virginia-class submarines.

•

$125 from the Navy to support the Common Missile Compartment work under joint development for the U.S. Navy and the U.K. Royal Navy.

•

$100 from the Navy for Advanced Nuclear Plant Studies in support of the Columbia-class submarine program.

•

$55 from the Navy to provide ongoing lead yard services for the DDG-51 destroyer program. The contract has a potential value of approximately $305.

•

$40 from the Navy for planning yard services for the DDG-51 destroyer and FFG-7 frigate programs.

•

$40 from the Navy to provide maintenance for submarines at Naval Submarine Base New London in Connecticut.

EXHIBIT J

AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)

Second Quarter

Six Months

2018

2017

2018

2017

Gulfstream Aircraft Deliveries (units):

Large-cabin aircraft

18

23

37

46

Mid-cabin aircraft

8

7

15

14

Total

26

30

52

60

Pre-owned Aircraft Deliveries (units):

1

2

2

3

EXHIBIT K

INFORMATION TECHNOLOGY AND MISSION SYSTEMS HISTORICAL DATA - (UNAUDITED)

DOLLARS IN MILLIONS

2016

2017

2018

Full Year

1Q

2Q

3Q

4Q

Full Year

1Q

Revenue:

Information Technology

$

4,428

$

1,058

$

1,052

$

1,068

$

1,232

$

4,410

$

1,138

Mission Systems

4,716

1,088

1,052

1,086

1,255

4,481

1,098

Operating earnings:

Information Technology

$

340

$

90

$

87

$

101

$

95

$

373

$

101

Mission Systems

601

146

153

152

187

638

146

Operating margin:

Information Technology

7.7

%

8.5

%

8.3

%

9.5

%

7.7

%

8.5

%

8.9

%

Mission Systems

12.7

%

13.4

%

14.5

%

14.0

%

14.9

%

14.2

%

13.3

%