Lockheed Martin (LMT) Q2 2017 Earnings Call

posted in: Earnings Call, Notes | 0

Bruce Tanner – CFO

Positive book bill for international orders. 

“we still think we’ve got a chance to end the year potentially at around $100 billion of backlog if some of these, especially the Kingdom of Saudi Arabia orders come in this year, as opposed to next year. But even without that, 95 to 100 is probably what we’re expecting…So a positive book to bill. “

Upcoming changes in the revenue recognition principle may not have a signficant impact 

“we’re kind of I’ll say running rev-rec in addition to the normal methodology for the first quarter and second quarter….But so far everything is indicating that you would think we should see a whole lot of difference. And part of the reason for that is a lot of the units of delivery are what we call POT, Passage on Title transfer where we essentially record sales upon delivery…We don’t see a large drop off or a large increase or decrease in our POT deliveries there. most importantly on our rev-rec, F-35 is not – does not change one bit and that’s obviously the biggest driver of Aeronautics and for that matter, sales for the corporation.”