EXHIBIT A

CONSOLIDATED STATEMENTS OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Three Months Ended

Variance

July 2, 2017

July 3, 2016*

$

%

Revenue

$

7,675

$

7,774

$

(99)

(1.3)

%

Operating costs and expenses

6,619

6,747

(128)

Operating earnings

1,056

1,027

29

2.8

%

Interest, net

(24)

(23)

(1)

Other, net

—

1

(1)

Earnings before income tax

1,032

1,005

27

2.7

%

Provision for income tax, net

283

291

(8)

Net earnings

$

749

$

714

$

35

4.9

%

Earnings per share—basic

$

2.50

$

2.35

$

0.15

6.4

%

Basic weighted average shares outstanding

299.8

304.5

Earnings per share—diluted

$

2.45

$

2.30

$

0.15

6.5

%

Diluted weighted average shares outstanding

305.3

310.2

* Prior-period information has been restated for the adoption of Accounting Standards Update (ASU) 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which we adopted in the second quarter of 2016, and Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers, which we adopted on January 1, 2017.

EXHIBIT B

CONSOLIDATED STATEMENTS OF EARNINGS - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Six Months Ended

Variance

July 2, 2017

July 3, 2016*

$

%

Revenue

$

15,116

$

15,250

$

(134)

(0.9)

%

Operating costs and expenses

13,025

13,299

(274)

Operating earnings

2,091

1,951

140

7.2

%

Interest, net

(49)

(45)

(4)

Other, net

—

11

(11)

Earnings from continuing operations before income tax

2,042

1,917

125

6.5

%

Provision for income tax, net

530

549

(19)

Earnings from continuing operations

1,512

1,368

144

10.5

%

Discontinued operations

—

(13)

13

Net earnings

$

1,512

$

1,355

$

157

11.6

%

Earnings per share—basic

Continuing operations

$

5.03

$

4.47

$

0.56

12.5

%

Discontinued operations

—

(0.04)

0.04

Net earnings

$

5.03

$

4.43

$

0.60

13.5

%

Basic weighted average shares outstanding

300.8

306.2

Earnings per share—diluted

Continuing operations

$

4.94

$

4.39

$

0.55

12.5

%

Discontinued operations

—

(0.04)

0.04

Net earnings

$

4.94

$

4.35

$

0.59

13.6

%

Diluted weighted average shares outstanding

306.3

311.8

* Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.

EXHIBIT C

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Three Months Ended

Variance

July 2, 2017

July 3, 2016*

$

%

Revenue:

Aerospace

$

2,078

$

2,284

$

(206)

(9.0)

%

Combat Systems

1,414

1,297

117

9.0

%

Information Systems and Technology

2,104

2,215

(111)

(5.0)

%

Marine Systems

2,079

1,978

101

5.1

%

Total

$

7,675

$

7,774

$

(99)

(1.3)

%

Operating earnings:

Aerospace

$

425

$

424

$

1

0.2

%

Combat Systems

225

205

20

9.8

%

Information Systems and Technology

240

234

6

2.6

%

Marine Systems

178

172

6

3.5

%

Corporate

(12)

(8)

(4)

(50.0)

%

Total

$

1,056

$

1,027

$

29

2.8

%

Operating margin:

Aerospace

20.5

%

18.6

%

Combat Systems

15.9

%

15.8

%

Information Systems and Technology

11.4

%

10.6

%

Marine Systems

8.6

%

8.7

%

Total

13.8

%

13.2

%

* Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.

EXHIBIT D

REVENUE AND OPERATING EARNINGS BY SEGMENT - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

Variance

July 2, 2017

July 3, 2016*

$

%

Revenue:

Aerospace

$

4,152

$

4,065

$

87

2.1

%

Combat Systems

2,701

2,542

159

6.3

%

Information Systems and Technology

4,250

4,543

(293)

(6.4)

%

Marine Systems

4,013

4,100

(87)

(2.1)

%

Total

$

15,116

$

15,250

$

(134)

(0.9)

%

Operating earnings:

Aerospace

$

868

$

756

$

112

14.8

%

Combat Systems

430

392

38

9.7

%

Information Systems and Technology

476

471

5

1.1

%

Marine Systems

339

356

(17)

(4.8)

%

Corporate

(22)

(24)

2

8.3

%

Total

$

2,091

$

1,951

$

140

7.2

%

Operating margin:

Aerospace

20.9

%

18.6

%

Combat Systems

15.9

%

15.4

%

Information Systems and Technology

11.2

%

10.4

%

Marine Systems

8.4

%

8.7

%

Total

13.8

%

12.8

%

* Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.

EXHIBIT E

CONSOLIDATED BALANCE SHEETS - (UNAUDITED)

DOLLARS IN MILLIONS

July 2, 2017

December 31, 2016*

ASSETS

Current assets:

Cash and equivalents

$

1,856

$

2,334

Accounts receivable

3,690

3,399

Unbilled receivables

5,045

4,212

Inventories

5,839

5,817

Other current assets

696

772

Total current assets

17,126

16,534

Noncurrent assets:

Property, plant and equipment, net

3,424

3,477

Intangible assets, net

685

678

Goodwill

11,679

11,445

Other assets

879

1,038

Total noncurrent assets

16,667

16,638

Total assets

$

33,793

$

33,172

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

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

$

989

$

900

Accounts payable

2,620

2,538

Customer advances and deposits

6,822

6,827

Other current liabilities

3,072

3,185

Total current liabilities

13,503

13,450

Noncurrent liabilities:

Long-term debt

2,989

2,988

Other liabilities

6,349

6,433

Total noncurrent liabilities

9,338

9,421

Shareholders' equity:

Common stock

482

482

Surplus

2,796

2,819

Retained earnings

25,546

24,543

Treasury stock

(14,950)

(14,156)

Accumulated other comprehensive loss

(2,922)

(3,387)

Total shareholders' equity

10,952

10,301

Total liabilities and shareholders' equity

$

33,793

$

33,172

* Prior-period information has been restated for the adoption of ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, and ASC Topic 606, both of which we adopted on January 1, 2017.

EXHIBIT F

CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)

DOLLARS IN MILLIONS

Six Months Ended

July 2, 2017

July 3, 2016*

Cash flows from operating activities—continuing operations:

Net earnings

$

1,512

$

1,355

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

Depreciation of property, plant and equipment

182

181

Amortization of intangible assets

38

50

Equity-based compensation expense

49

51

Deferred income tax provision

93

10

Discontinued operations

—

13

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

Accounts receivable

(291)

(38)

Unbilled receivables

(815)

(523)

Inventories

(14)

(84)

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

Accounts payable

82

157

Customer advances and deposits

(29)

(455)

Other, net

203

156

Net cash provided by operating activities

1,010

873

Cash flows from investing activities:

Capital expenditures

(153)

(134)

Other, net

(42)

(51)

Net cash used by investing activities

(195)

(185)

Cash flows from financing activities:

Purchases of common stock

(901)

(1,189)

Dividends paid

(483)

(447)

Other, net

108

96

Net cash used by financing activities

(1,276)

(1,540)

Net cash used by discontinued operations

(17)

(34)

Net decrease in cash and equivalents

(478)

(886)

Cash and equivalents at beginning of period

2,334

2,785

Cash and equivalents at end of period

$

1,856

$

1,899

* Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.

EXHIBIT G

PRELIMINARY FINANCIAL INFORMATION - (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

2017

2016 (a)

Second Quarter

Second Quarter

Other Financial Information:

Debt-to-equity (b)

36.3

%

32.5

%

Debt-to-capital (c)

26.6

%

24.5

%

Book value per share (d)

$

36.57

$

34.65

Total income tax payments

$

332

$

439

Company-sponsored research and development (e)

$

134

$

121

Shares outstanding

299,461,802

305,278,868

Non-GAAP Financial Measures:

2017

2016

Second Quarter

Six Months

Second Quarter

Six Months

Free cash flow from operations:

Net cash provided by operating activities

$

477

$

1,010

$

393

$

873

Capital expenditures

(91)

(153)

(69)

(134)

Free cash flow from operations (f)

$

386

$

857

$

324

$

739

(a)

Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.

(b)

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

(c)

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.

(d)

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

(e)

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

(f)

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 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)

Funded

Unfunded

TotalBacklog

EstimatedPotentialContract Value (a)

Total PotentialContractValue

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 Systems and Technology

6,809

2,085

8,894

14,389

23,283

Marine Systems

16,033

4,374

20,407

3,282

23,689

Total

$

51,707

$

6,860

$

58,567

$

24,427

$

82,994

First Quarter 2017:

Aerospace

$

12,446

$

133

$

12,579

$

1,929

$

14,508

Combat Systems

17,058

523

17,581

4,970

22,551

Information Systems and Technology

6,682

2,038

8,720

13,994

22,714

Marine Systems

17,071

4,413

21,484

3,756

25,240

Total

$

53,257

$

7,107

$

60,364

$

24,649

$

85,013

Second Quarter 2016 (b):

Aerospace

$

13,418

$

126

$

13,544

$

2,221

$

15,765

Combat Systems

18,094

478

18,572

4,812

23,384

Information Systems and Technology

7,509

2,292

9,801

14,560

24,361

Marine Systems

15,868

7,260

23,128

4,237

27,365

Total

$

54,889

$

10,156

$

65,045

$

25,830

$

90,875

(a)

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 agreements with fleet customers. The actual amount of funding received in the future may be higher or lower than our estimate of potential contract value. We recognize options in backlog when the customer exercises the option and establishes a firm order.

(b)

Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.

EXHIBIT I

SECOND QUARTER 2017 SIGNIFICANT ORDERS - (UNAUDITED)

DOLLARS IN MILLIONS

We received the following significant orders during the second quarter of 2017:

Combat Systems:

•

$110 to provide munitions to a customer in the Middle East.

•

$75 to provide munitions to the U.S. Air Force and U.S. Army.

•

$45 from the Army in support of the Stryker wheeled combat vehicle program, including the production of vehicles with a 30-millimeter cannon.

•

$40 to produce gun systems for the F-35 Joint Strike Fighter.

•

$30 to continue the conversion of M1A2 tanks to the M1A2S configuration for the Kingdom of Saudi Arabia and for engineering and logistics support services for the U.S. Army's Abrams family of vehicles.

Information Systems and Technology:

•

$165 from the Centers for Medicare & Medicaid Services for contact center services.

•

$125 from the Army for ruggedized computing equipment under the Common Hardware Systems-4 (CHS-4) program.

•

$105 from the U.S. Navy for combat and seaframe control systems on an Independence-variant Littoral Combat Ship (LCS). Options for the systems on three additional ships added $270 to the group's estimated potential contract value.

•

$60 to provide support for live and virtual operations under the Warfighter Field Operations Customer Support (FOCUS) program.

•

$50 to provide engineering, manufacturing and development in support of the Navy's Air and Missile Defense Radar (AMDR) program.

•

$40 from the Navy to provide training and training-related program support services for the Center for Surface Combat Systems (CSCS). This contract has a potential value of approximately $245 over five years.

•

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

•

$35 from the Army to provide continued software support and engineering for the Warfighter Information Network-Tactical (WIN-T) Increment 2 program.

•

$35 from the U.S. Geological Survey to perform hardware and software upgrades for the Landsat 8 satellite program.

Marine Systems:

•

$565 from the Navy for design work on the Columbia-class submarine program and Advanced Nuclear Plant Studies (ANPS) in support of the program.

•

$110 from the Navy to procure long-lead materials for two Virginia-class submarines under Block V of the program.

•

$105 from the Navy for maintenance, modernization and repair work on the USS Makin Island, an LHD-class amphibious assault ship.

•

$55 for initial design and construction work for the second ship in the TAO-205 next-generation fleet oiler program.

•

$45 from the Navy to provide maintenance, modernization and repair services for submarines located at Naval Submarine Base New London in Connecticut.

•

$35 from the Navy for on-board repair parts for two Virginia-class submarines under Block IV of the program.

EXHIBIT J

AEROSPACE SUPPLEMENTAL DATA - (UNAUDITED)

Second Quarter

Six Months

2017

2016*

2017

2016*

Gulfstream Aircraft Deliveries (units):

Large-cabin aircraft

23

29

46

49

Mid-cabin aircraft

7

7

14

15

Total

30

36

60

64

Pre-owned Deliveries (units):

2

4

3

5

* Prior-period information has been restated for the adoption of ASC Topic 606, which we adopted on January 1, 2017.